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GIDC and G-RIDE to join Gujarat Port and Logistics Co as equity partners

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GANDHINAGAR : Gujarat Port and Logistics Co Ltd, a joint venture between Gujarat Maritime Board (GMB) and Gujarat State Fertilisers & Chemicals Ltd (GSFC), will induct Gujarat Industrial Development Corporation (GIDC) and Gujarat Rail Infrastructure Development Corporation (G-RIDE) as equity partners as the firm looks to sharpen its focus on implementing logistics related projects in the state, a top official has said.

GMB, the Gujarat government agency tasked with developing ports owned by the state government, currently holds a 40% stake in Gujarat Port and Logistics Co Ltd, formed in February 2020, to oversee logistics connectivity projects. GSFC holds the balance 60% stake in the joint venture company.

“The equity structure of Gujarat Port and Logistics Company is in the process of being changed with GIDC and G-RIDE becoming equity partners in the joint venture,” Kalpesh Vithlani, General Manager (Projects), GMB said.

G-RIDE was formed in January 2017 as a joint venture between Gujarat government (51% stake) and Ministry of Railways (49% stake) to construct rail connectivity infrastructure projects by itself or through special purpose vehicles (SPV).

In the revised equity structure of Gujarat Port and Logistics Co Ltd, the GMB will hold 52% stake, GIDC will have 26%, while GSFC and G-RIDE will each hold 11% equity.

“The boards of GIDC and G-RIDE have approved the plans to join Gujarat Port and Logistics Co as equity partners,” Vithlani said. “It is pending approval from the Gujarat government,” he added.

Gujarat is the first state to establish a joint venture company solely focussed on developing logistics projects such as Grade A warehousing, multi modal logistics parks (MMLP) and all issues related to connectivity.

Vithlani said that the JV company has also started work on developing a public-private-partnership (PPP) policy for logistics projects in the state.

The JV company has identified 12 connectivity projects in Gujarat on which feasibility studies are being carried out with the help of consultants.

“We are working towards identifying chemical hubs/zones for building multi modal logistics parks for chemicals,” Vithlani said.

The logic behind inducting GIDC as an equity partner in Gujarat Port and Logistics Co is to tap the expertise of trade and industry who are either cargo consumers or cargo generators.

“They have a better idea on logistics and connectivity, so that planned development can happen,” Vithlani added.

The equity restructuring of Gujarat Port and Logistics Co adopts the approach outlined in the PM Gati Shakti National Master Plan, a digital platform, that seeks to bring 16 Central Ministries, including Railways and Roadways, together for integrated planning and coordinated infrastructure connectivity projects to overcome the time consuming and silo-based approach followed for long.

Gati Shakti aims to cut logistic costs, increase cargo handling capacity, and reduce the turnaround time. The plan will lend more power and speed to infrastructure projects by connecting all departments concerned on one platform.

Source : ET-Infra

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