• An MoU finalised for Joint Venture involving maiden Rs 1,500 crore foreign direct investment
• This will bring down the cost of transportation by 20 per cent to 25 per cent giving a major fillip to the State economy
JAMMU: In a significant move, the Jammu and Kashmir Government and Dubai Ports Group has inked a pact for a joint venture involving maiden Rs 1,500 crore foreign direct investment for setting up inland logistic hubs in Jammu and Srinagar capital cities.
"An MoU finalised for Joint Venture involving maiden Rs 1,500 crore foreign direct investment. The Memorandum of Understanding (MoU) for setting up inland logistic hubs in Jammu and Srinagar, as a Joint Venture between Dubai Ports and the Jammu and Kashmir Government, was finalised at the delegation level talks between Sultan Ahmed Bin Sulayem-led DP team and Haseeb Drabu-led State Government team," an official spokesman said.
A high-level delegation of the Dubai Ports Group (DP World) led by its Chairman and CEO Sultan Ahmed Bin Sulayem arrived by a chartered flight here to discuss the modalities for setting up inland logistics hubs in Jammu and Srinagar.
"The visit of Dubai Ports Group delegation follows the announcement made by the Finance Minister in his budget speech in the State Legislature last month about the Government's plan to attract foreign investment by setting up dry ports in the State to boost local economy," the official spokesman said.
The MoU is to be subsequently signed by the Government of India with the Government of UAE to facilitate setting up the first Inland Logistics Hub in Jammu and Kashmir.
To begin with, 100 acres of land would be offered by the State Government near Railway Station Samba as equity in the joint venture for setting up the logistics hub in Jammu region and around 100 acres of land would be earmarked near Ompora, Budgam for a similar facility in Kashmir, the spokesman said.
The logistics hubs to be established in Jammu and Kashmir with maiden foreign direct investment of around Rs 1,500 crore by Dubai Ports would include two dry ports, warehouses, cold storage chain, controlled atmospheric stores and supply chain to transport commodities and products including horticulture and agriculture produce, handicrafts and industrial products from the State directly to the markets throughout the world, he added.
"One of the major problems of J-K economy is high cost of transportation of goods and products. We have to get our fruit, agriculture produce, handicrafts and industrial products in trucks to outside world.
"If we get a dry port and cold chain, the commodities can move through an integrated transport chain. This will bring down the cost of transportation by 20 per cent to 25 per cent giving a major fillip to the state economy," said Drabu.
He said a dry port, also called an Inland port or Multimodal logistics centre, is an inland terminal connected to a seaport by rail or road.
It serves as trans-shipment point in transport of export/import goods and is named so because it is very similar to a seaport in services it offers except that it is not near a sea.