UP and Northern Railway sign MoU to develop logistics hubs with concessional land lease and multimodal connectivity.
In a significant step towards transforming Uttar Pradesh into an industrial and logistics powerhouse, Invest UP and the Lucknow Division of Northern Railway signed a landmark Memorandum of Understanding (MoU) at Lok Bhawan on Wednesday.
The agreement, signed by Invest UP CEO Vijay Kiran Anand and Northern Railway’s Senior Divisional Operations Manager Rajneesh Kumar Srivastava, aims to make railway land available to investors at a concessional lease rate of just 1.5% of the prevailing industrial or circle rate for a period of 35 years.
The collaboration will catalyse the development of warehousing, logistics infrastructure, and multimodal connectivity across the state, strengthening UP’s appeal as an investment destination.
Post-signing, officials deliberated implementation strategies including Public-Private Partnerships (PPPs) and integrating land data into the PM Gati Shakti portal to streamline planning and attract investors.
Chief Secretary Manoj Kumar Singh underlined the synergy between the government and the Railways in realising UP’s vision of becoming India’s leading industrial state. “UP already has seven expressways, with more in progress. Better logistics will drive industrial growth,” he stated.
A key clause in the MoU mandates that at least one leg of cargo movement—either raw material or finished goods—must utilize the Railways. This move promotes cost-effective and environmentally sustainable logistics solutions.
Highlighting the benefits, Srivastava said, “Railways will support end-to-end transportation for industrial complexes with in-house logistics terminals or those adjoining railway land. Priority service and reduced costs will be offered to investors.”
The initiative aligns with the UP Warehousing and Logistics Policy 2022, which provides additional incentives such as stamp duty exemptions, land-use conversion benefits, capital subsidies, and electricity duty waivers for projects exceeding ₹20 crore in investment.
With a rail network of over 16,000 km, UP is fast developing logistics hubs, dry ports, and industrial parks. Ongoing flagship projects include the multi-modal logistics hub in Dadri and India’s first freight village in Varanasi.
Looking ahead, the state’s logistics blueprint includes hubs in the YEIDA region, cargo complexes near Jewar Airport, and sector-specific clusters like Film City, Toy Park, Apparel Park, and the Medical Device Park. UP also leads the nation in cold storage capacity, housing nearly 40% of India’s total.
Further bolstering the state’s industrial drive are the upcoming defence industrial corridors with six nodes and the National Investment and Manufacturing Zones (NIMZs) in Jhansi and Auraiya.
This transformative partnership between UP and Indian Railways marks a decisive step toward building a future-ready logistics and industrial ecosystem in the heart of India.
Source: PTI
