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NEW DELHI : The Indian government will set up as many as 500 multi modal cargo terminals by 2025 under the Gati Shakti-National Master Plan that would require an investment of over 50,000 crore, Ashwini Vaishnaw, Minister of Railways, Communications and Electronics & Information Technology, said on Thursday.

Under multi modal cargo terminal plan, different modes of transportation like air, water, and roadways will be integrated to give boost to the logistics sector.

India's supply chain and logistics costs currently account for about 13% of GDP (Gross Domestic Product), Vaishnaw said at a press conference. 

He added that the endeavor of the current government is to bring down logistic and supply chain costs, which can be achieved by building multi modal cargo terminals.

Prime Minister Narendra Modi had earlier on Wednesday launched the Gati Shakti-National Master Plan to connect the country’s economic zones, which he said would lay the foundation for economic growth over the next 25 years.

The master plan, which aims to institutionalize holistic planning for major infrastructure projects, will be designed and executed with a common vision and will incorporate the infrastructure schemes of various ministries and state governments such as the Bharatmala road project, Sagarmala waterways plan, ports and the Regional Connectivity Scheme (RCS). 

Over the next two to three years, the government will build atleast 200 multi modal cargo terminals across the country, which would each require an investment of atleast 100 crore, Vaishnaw said. 

"Gati Shakti intergrated terminals with high traffic like New Delhi, among others, will be developed earlier than the others (before 2024-25)" he added. 

Through the Gati Shakti master plan, which includes setting up multi modal cargo terminals, the government hopes to bring about connectivity between various economic zones located across the country, like textile clusters, industrial corridors, agriculture zones, electronic parks, defence corridors, etc. 

This will not only bring down costs but also help make Indian business competetive to the likes of China and other manufacturing economies. 

Meanwhile, the power, coal and railway ministries are working together as a single team to sort out the coal shortage issue, Vaishnaw said.  

"We are monitoring the situation every hour and trying to resolve the situation," he added.

There is currently a power crisis looming in the country due to shortage of coal, which experts have attributed to a decline in supply. 

On Tuesday, Coal minister Pralhad Joshi said that while public sector enterpsie Coal India Limited had around 22 days' stock remainning to meet coal demand of power producers, supply is expected to increase with the receding monsoon season.

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