newsdesk@business-northeast.com

+91 6026176848

More forecasts: New York weather 30 days

Multi-modal logistics park will position Assam as a key trade gateway: Official

Pankhi Sarma , September 16, 2024
Spread the love
Share on Twitter

The MMLP at Jogighopa will serve as a critical hub for cross-border trade, improving connectivity with the Rest of India, as well as to the neighbouring countries like Bangladesh and Bhutan

Jogighopa MMLP to generate thousands of job opportunities in Assam, not only in logistics and warehousing but also in industries that will now have better access to the market

Guwahati: Projects under the Bharatmala and Sagarmala gamut of projects, mapped and planned through the aegis of PM Gati Shakti, is going to significantly reduce time and cost overruns, driving Assam’s development forward by leaps and bounds. With PM Gati Shakti, decisions on infrastructure development are now based on scientifically deduced data and real-time GIS information, ensuring that projects are built where they are needed most and in a most effective manner; said Sazzad Alam, ACS, Joint Secretary to the Government of Assam, Industries, Commerce & PE Department, Assam, during an interview with Pankhi Sarma of Business North East.

“It has revolutionized rural development by ensuring that decisions are made based on real needs, reducing inefficiencies and delay. The PM Gati Shakti initiative allows for seamless integration between different sectors, leading to better project planning and preventing infrastructure conflicts,” the Joint Secretary further added.


Business North East: Let's begin with the PM Gati Shakti initiative. Sir, could you please share an update on its progress and how it’s shaping up so far?
Sazzad Alam, Joint Secretary: PM Gati Shakti is a transformative initiative introduced by the Central Government of India. It was mentioned by the Honorable Prime Minister in his Independence Day Speech of 2021, and formally launched in October 2021. Assam, like the rest of the nation, has embraced this noble initiative, which addresses the longstanding issue of Government Departments and Ministries working in the silo mode, often resulting in lack of coordination. This lack of synergy between Departments previously contributed to a loss of nearly 13-14% of India's GDP.
The PM Gati Shakti initiative integrates the Departmental data of various Central and State Government Ministries, Departments and agencies onto a unified geospatial platform – the PM Gati Shakti portal. Here, each department’s data is layered and made accessible to all others, enabling better project planning, problem-solving, and interdepartmental coordination. The platform also supports the recording of Memoranda of Cooperation (MoC), ensuring smooth communication across departments.

For example, several key highway projects, such as the Delhi-Mumbai expressway, are a direct result of this integrated approach. Under the dynamic leadership of Hon’ble Union Minister for Road Transport and Highways, Shri Nitin Gadkari, such initiatives have progressed significantly in the roadways sector.

In Assam, although we may have been slightly slower to start, our Departments have now caught up. We’ve trained the personnel of the various State Government Departments; and now, many Departments have not only uploaded their mandatory data but also added additional datasets. We are now leveraging PM Gati Shakti for enhanced inter-departmental coordination, pushing for strategic development across the State.


BNE: In your opinion, what kind of impact has the PM Gati Shakti National Master Plan created so far?
Joint Secretary: The most significant impact of PM Gati Shakti has been the improvement in efficiency and coordination across Departments. Earlier, tasks like moving an electricity pole to widen a drain were cumbersome and often delayed due to tardy inter-departmental communication. Now, with the "Call Before You Dig" system, conflicts between departments are avoided, especially with underground utilities, ensuring smoother project execution.

The methodology has also revolutionized project planning, especially in rural development, by moving away from public pressure-driven decisions and instead using data and scientific analysis. For instance, decisions to construct Anganwadi Kendras or banks in rural areas are now based on area-specific needs like child population, land availability, and access to facilities such as schools and electricity. This data-driven approach ensures better placement and planning of social infrastructure.

In Assam, the integration of PM Gati Shakti is reducing high logistical costs, one of the major challenges in the region. Improved coordination through platforms like WhatsApp was a step forward, but PM Gati Shakti has fully streamlined planning, enabling quicker decision-making and minimizing delays in sectors like roads and railways. This approach is driving more effective and cost-efficient infrastructure development across the state.


BNE: "With this infrastructure development, has there been any noticeable impact on logistics costs? Have they been reduced?
Joint Secretary: As I have mentioned earlier, the PM Gati Shakti initiative is certainly going to reduce logistics costs. It aims to make processes more seamless and allows for better planning of projects, identifying logistics needs more effectively. When all stakeholders collaborate from the start, the outcomes are more efficient, avoiding the need for repeated adjustments. This ensures that tasks are completed properly in one go.

 BNE: "Could you elaborate on the Bharatmala, Sagarmala, and their connection to the PM Gati Shakti initiative?
Joint Secretary: "Bharatmala is a multi-faceted project focused on large-scale infrastructure development in the road transportation sector, including logistics parks, like the one coming up in Jogighopa. Sagarmala, on the other hand, deals with seaports and marine infrastructure.
However, all of these projects, under the umbrella of these flagship programmes, can be mapped and planned through the PM Gati Shakti initiative. This integration helps significantly reduce the time and cost overruns by streamlining the planning and completion processes."

BNE: "What is the current status of the Jogighopa Logistics Park?"
Joint Secretary: "The Jogighopa Logistics Park is being developed by NHIDCL, the commercial arm of National Highways Authority of India (NHAI), under the MoRTH; with the State Government of Assam contributing the land at the old Ashok Paper Mill complex. As far as I know, it's nearing completion. An SPV (Special Purpose Vehicle) is being established to manage its operations, involving all relevant stakeholders.

Additionally, the Inland Waterways Authority of India is preparing a river port on the Brahmaputra’s North Bank, as part of the Multi-Modal Logistics Park (MMLP). The project will integrate three modes of transportation—railways, roadways, and waterways. A railway connection has been provided, utilizing the old railway siding; while the roadways have been significantly improved with a four-lane expressway connecting the MMLP to the main National Highway stretching from the Naranarayan Bridge on the Brahmaputra River to the East West Corridor. These developments will seamlessly connect the logistics park through all three transportation modes."

BNE: "Regarding the Multimodal Logistics Park and its connection to the Jogighopa Logistics Park, how do you see these developments impacting the economic landscape of Assam?"
Joint Secretary: "In addition to the Jogighopa Logistics Park, we now have the protocol route through Bangladesh, enabling the movement of goods via waterways up to the ports in Bangladesh and also to the Ganga River in the rest of India. Moreover, the East-West Corridor is being reinforced with the completion of the Dhubri-Phulbari bridge.

Together, these developments will transform the region into a major hub for trade, supported by a robust multimodal transportation network. This network—integrating waterways, railways, and roadways—will significantly enhance Assam's economic growth by improving connectivity and facilitating smoother trade routes."

BNE: "With the recent disruptions in Bangladesh, do you foresee any impact on trade between Bangladesh and India, given Assam's central role in this?"
Joint Secretary: "There were concerns raised about potential disruptions, but fortunately, despite internal political changes, countries like Bangladesh do have a responsibility to honour the agreements they’ve signed. This is a mutually beneficial arrangement, and it’s unlikely that any foreign nation would jeopardize it without causing harm to its own interests.

While we remain cautious, we believe the commitments and agreements shall remain intact as of now. Moreover, we have railway and roadway networks as backup routes, so I don’t think the Multimodal Logistics Park project will be affected by the situation in Bangladesh."

BNE: "Are there any other Multimodal Logistics Park projects currently underway?"
Joint Secretary: "We had initially conceived a project in Silchar, which was also recommended by ADB’s 'India's Expressway to ASEAN' report. Although it faced some initial challenges, there is a possibility we may pursue it in the future. The Ministry of Road Transport and Highways had committed to it in principle, but initial research revealed several issues, including the need for adequate cargo traffic through Sutarkandi, a proper 4-lane highway from Jiribam to Imphal, and beyond to Moreh. The situation in Myanmar has also become fluid, and the Kaladan project, which was intended to connect the region, has faced difficulties in the Rakhine region. For now, developing the infrastructure for the Silchar project seems premature. It's better to allow the situation in Myanmar and Manipur to stabilize.

However, we’ve otherwise seen a massive transformation in the infrastructure scenario across the Northeast since 2016, particularly in roadways, railways, airways, and inland waterways. For instance, Barak Valley, which once had pothole-riddled roads, now has expressways. Railway electrification is also progressing, and airports like Silchar, Dibrugarh, and Jorhat are becoming significant hubs under the UDAN scheme. Guwahati airport, even before its projected expansion, has become one of the busiest airports in the country.

Inland waterways are also seeing major development, with ports like Pandu and Dhubri becoming busy trade centres. We’ve even had luxury cruises coming from Varanasi through Bangladesh and traveling all the way up to Sadiya. Barak River is being dredged to serve as a major waterway for southern Assam, and the river Feni in Tripura is being developed for transportation. Bangladesh ports like Chittagong and Mongla are being used by states like Tripura, and the Agartala-Akhaura railway line is nearing completion.

Additionally, the historical rail link from Assam to Chittagong via Mahisasan is being restored. On the Indian side, the broad gauge is in place up to the border; and once Bangladesh upgrades its gauge, we’ll have a direct link from Assam to Kolkata through Bangladesh.

We’re also enhancing our connectivity to border towns, making commercial routes more efficient. The integrated check posts (ICPs) at Sutarkandi and Moreh are improving regulatory processes, and the Land Port Authority of India has taken over more land ports like Mankachar, Golakganj, and Darrangamela for enhancing trade with Bangladesh and Bhutan. With Myanmar, despite recent setbacks, we remain optimistic that trade via Moreh and other routes will resume.

BNE: "So, with these logistical developments, our connections with neighbouring countries like Myanmar, Bangladesh, and Bhutan are expected to strengthen. How do you see India's relationship with Southeast Asia evolving?"
Joint Secretary: "Absolutely. Our tagline has been 'India’s expressway to ASEAN,' positioning us as a hub. While there may be roadblocks along the way, they’re not permanent stops—just temporary pauses, or 'commas,' as I would like to say. We move past these, addressing challenges and making our achievements more permanent as we progress. Strengthening these relationships is a continuous process, and we are on the right track."

BNE: "As you're also part of the Act East Policy Affairs Department, what is the current status of the venture, and are there any new developments?"
Joint Secretary: "The Act East Policy involves a multi-faceted approach running across several sectors. While cultural connect, educational exchange and cross-border trade and connectivity may undoubtedly be strong parameters of the policy, the primary focus still remains on industrial development and investment on the basis of that policy. While subsidies and incentives had been present almost since industrial promotion policies first took shape, today it is the proximity to Bangladesh and South East Asia which is attracting several foreign and domestic companies to invest in Assam. Although Assam has its own Industrial and Investment Policy 2019, it has since been amended to offer tailored incentives for mega projects. This has attracted significant investments across various sectors in the State.

Thus, while the Act East Policy is a driving force, our goal is to integrate more deeply into mainstream development. Over the past decade, Assam and Guwahati have experienced substantial progress. Challenges remain, but they are being addressed effectively.

Recent developments include an ADB report that maps out the economic corridor and identifies opportunities for various industries in this region. Ports in Bangladesh are accessible, and there's potential for sending goods via Moreh to Myanmar and Southeast Asia. The Kaladan Multimodal Transit Transport Project is a key initiative, offering a route from the Sittwe port to inland areas in Myanmar, facilitating trade further. We are also strengthening relationships with the Southeast Asian countries. Laos, for instance; and Singapore, which is aiding in developing our skill centres and the first skill university in the Northeast. Japan is driving several projects in the region.

BNE: "Given the natural calamities like floods in Assam, do these issues hinder development, especially in terms of logistics infrastructure?"
Joint Secretary: "Natural disasters such as floods and earthquakes are indeed challenges, but they are inherent to the local environment. Disasters are today defined scientifically as the product of natural hazards and vulnerability. While hazards are unavoidable, the real issue is vulnerability, which we can address. By implementing disaster risk reduction measures, we can mitigate vulnerability significantly. For example, we can build disaster-resilient housing and improve the planning of embankments to better protect areas from flooding.

Historically, impractical practices like people building houses beyond the protective embankments exacerbated the issue. Modern approaches focus on earthquake-resistant housing and flood-resilient infrastructure. Though floods continue to affect communities, major infrastructure has been designed to withstand these conditions better. Roads and other critical infrastructure are now rebuilt with improved resilience, and repair processes are expedited after disasters to minimize disruptions. 

BNE: "As the State Nodal Officer for the Gas Grid projects in Assam, could you update us on the current developments?"
Joint Secretary: "Assam has a long history with natural gas, dating back to the early twentieth century when natural gas was just making its entry felt in the then coal and petroleum driven energy sector. The early use of gas was for heating purposes in the industries and tea gardens. Historically, gas resources were localized, serving specific needs like fertilizer factories and thermal plants. However, to integrate into a national gas grid and develop a gas-based economy, significant infrastructure improvements are currently underway.

Key projects include the connection of the North-East to the National Gas Grid through the GAIL laid pipeline extending from Barauni to Panikhaiti near Guwahati, and the creation of a North East Gas Grid though the aegis of IGGL – a JV company of 5 major oil companies (that is, OIL, IOCL, GAIL, NRL and ONGC). The North East Gas Grid shall link all the extreme reaches of the 8 North-Eastern States.

These developments shall evidently facilitate city gas distribution, support industrial growth, and promote CNG-based transportation. Despite challenges such as international gas pricing and recent disasters like the Baghjan gas disaster, the discovery of new gas reserves in Assam and the involvement of private companies like Vedanta have made the overall picture quite promising. This positions Assam not only to meet its own gas needs but potentially to export gas in the not-so-distant future; thereby marking a significant step toward a robust gas-based economy."