An Indian central government authority is seeking bids for a project to develop and operate a multimodal logistics park in Telangana state, according to a tender notice published yesterday.

National Highways Logistics Management Limited estimates the project will cost INR 9.9bn (USD 116m).

The contract will be handed out in the design, build, finance, operate and transfer (DBFOT) model.

The concessionaire will be required to build and operate the facility at Parkibanda village in Medak district.

Bids are due on 1 July and will be opened the following day.

National Highways Logistics Management Limited has three open tenders for logistics parks for which bids are due on 29 May. Two of these are for projects in Maharashtra and one in Andhra Pradesh.

The contracts for the facilities are usually for 45 years.

The concept of multimodal parks, which was introduced in 2017, requires every project to occupy a land area of at least 40 hectares. It is meant to accommodate several modes of transport and will include facilities such as warehouses, storage and cargo terminals.

The integrated facilities are aimed at reducing the cost of logistics from about 13%-14% of India’s gross domestic product to less than 10%.