Smart Industrial Port City project at Kandla all set to take off

Posted by Daily Shipping Times on 12-10-2017        Tweet

GANDHIDHAM: Deendayal Port Trust (DPT), formerly Kandla Port Trust, is all set to break ground for the ambitious Smart Industrial Port City (SIPC) near Gandhidham.

Recently Ahmedabad-based Sadbhav Engineering won the Rs 167.46 crore to develop the land for SIPC. The company will have to develop the land, including grading and filling, in the next nine months. Moreover, DPT has already received the crucial environment clearance from the Union Ministry of Environment and Forest as well as the public investment board (PIB).

"We are ready to break ground for SIPC now. In all likelihood, we should be doing it this month itself as all the approvals have also been received," DPT Chairman Ravi Parmar, IAS, said recently.

Sources said Sadbhav Engineering pipped nine other bidders for the phase I project. DPT will now go in for auction of 250 acres land out of the total 600 acres. The reserve price of the plots has been fixed at Rs 3,500 per sqm per year and the port has also got a go ahead from the Shipping Ministry to lease the plots for 60 years.

The 600 acre industrial park has land reserved for mainly four types of industries — furniture, edible oil, salt-based units and engineering-fabrication. Sources close to the development also said that the SIPC has generated lot of interest, especially among the edible oil industry, mainly due to proximity to the port.

"Edible oil units will save a huge cost on transportation as they will have immediate access to Deendayal Port," an official said. DPT has held discussions with nearly 2,000 industries in various sectors and officials claim that many who are into import-export trade are keen to set up units in the SIPC. However, looking at the gloomy picture of the economy after Goods and Services Tax (GST) regime, DPT is treading cautiously on SIPC.

"In case not many industries turn up in the land auction, we will develop just one-third of the 900 acres," the official said. Also, a stringent condition that the company getting the land will have to construct its unit in 36 months from the date of allotment. "This clause could be slight dampener. But, we want serious players to come in," Parmar said.