DP World, NIIF JV to invest Rs 1,000 crore in JNPT free trade zone
Hindustan Infralog Pvt Ltd (HIPL), a joint venture between DP World Ltd and India’s National Investment and Infrastructure Fund Ltd (NIIF), will invest Rs 1,000 crore in developing its Nhava Sheva Business Park (NSBP) Free Trade Zone (FTZ) in Mumbai.
NSBP, a Special Purpose Vehicle, is a co-developer for the Jawaharlal Nehru Port Trust (JNPT) SEZ. The company signed a lease agreement with JNPT for the project on Tuesday. The FTZ is on a long-term lease of 60 years and is located 5 km away from JNPT.
In September 2019, Hindustan Infralog quoted about Rs 13 crore per acre (total Rs 567 crore) to emerge the highest bidder for the FTWZ land spread over 44 acres.
The facility will be equipped with infrastructure such as specialised multi-product and temperature-controlled warehouses, and a container yard with ultra-modern digital and security systems. It will offer round-the-clock customs clearance and value-added services to provide customers a one-stop solution for all their consumption and trading needs.
“The Free Trade Zone will be ready towards the end of 2021. This investment reinforces DP World’s strategy and commitment to India and strengthens our integrated logistics portfolio in the country,” Rizwan Soomar, CEO & MD, DP World Subcontinent, said.
“We believe that the FTZ will contribute to establishing India as a major trade and manufacturing hub and support the Government’s ‘Atmanirbhar Bharat’ programme. With its strategic location, the FTZ will help position India as a prime hub for exports to neighbouring countries and provide a huge fillip to the manufacturing sector in the country,” he added.
“This unique public-private partnership project with Jawaharlal Nehru Port Trust (JNPT) significantly enhances the value proposition of the logistics sector in India. This project will enable domestic companies to dovetail world-class logistics facilities with an established ports ecosystem offered by JNPT to support the continued growth of trade and manufacturing sectors, which are crucial for the Indian economy,” Vinod Giri, Managing Partner, National Investment & Infrastructure Fund, said.
DP World holds 65 per cent stake in Hindustan Infralog and the balance equity is held by the National Investment & Infrastructure Fund (NIIF).
This venture has been created to invest up to $3 billion in ports, logistics and related sectors across the country.
The project will help boost trade, especially in sectors such as electronics, IT, telecom, pharmaceuticals, chemicals & petrochemicals, machinery, agri & foods, and metals.
Its strategic proximity – to the port, the upcoming Navi Mumbai International Airport, Western Dedicated Freight Corridor and National Highways – will provide quick and direct access to domestic and global markets. It will offer long-term advantages to domestic as well as global traders and manufacturers, by enabling reliable and fast movement of cargo.
Source: The Hindu Business Line