E-commerce push takes warehouse leasing capacity beyond 25 million sq. ft.

The warehousing leasing business has seen unprecedented buoyancy in the recent years. According to a recently released report by CBRE titled ‘Online Retail Driving Realty – Elevating the E-commerce Game’,  warehouse leasing capacity in seven major cities in India grew by a staggering 45 % in 2018 crossing 25 million square feet mark. According to the report, the rapid expansion has been primarily driven by the demand from the fast growing e-commerce business and the momentum is likely to ensure the warehouse leasing capacity touching 60 million square feet mark…

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Lodha Group-ESR to develop $100 million industrial park near Mumbai

Realty major Lodha Group and Warburg Picus backed logistics development entity e-Shang Redwood (ESR) have forged a 50: 50 JV partnership to develop a large-scale industrial park near Mumbai. The project will be developed on an expansive 89 acres site at Palava city amounting nearly $100 million investment. Palava City (4500 acres) is billed to be India’s first greenfiled smart city project which also has a provision for a 170 acre industrial park zone mainly for non-polluting manufacturing and warehousing. The site is strategically located for easy access to JNPT…

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DP World-NIIF JV entity to buy majority stake in KRIL

Hindustan Infralog, a joint venture between global logistics major DP World and the National Investment and Infrastructure Fund (NIIF), have announced acquisition of 76% stake in KRIBHCO Infrastructure Limited (KRIL). KRIBHCO infrastructure arm operates as a multi-modal logistics operator in India and has three major Inland Container Depot under its command – Pali, Haryana; Modinagar, Uttar Pradesh and Hazira, Gujarat. Founded in 2009, KRIL also has an expansive container train operations within the country. Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, commented: “We are delighted to announce…

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Re-election of NDA credit positive for the port sector

The emphatic victory of the NDA government in 2019 parliamentary elections bode well for the domestic port sector. According to credit rating agency ICRA, this has ensured the continuation of the port led development strategy which has long term benefits for the national economy. Ravichandran, Senior Vice President & Group Head-Corporate Ratings, ICRA commented, “The reelection of NDA will be credit positive for the domestic port sector, as they are expected to continue with their port led developmental model, which will throw open several business opportunities for the incumbents. During the earlier…

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Maharashtra, UP to lead capex drive in road sector

According to a recently released report by credit rating firm ICRA, the capital expenditure scene in the road sector  will be dominated by Maharastra and UP in the next three years. The report cites a host of large scale road projects in these states which are expected to unfold in the near run. For instance, the estimated spend in case of Nagpur-Mumbai expressway alone is Rs. 35,000 crore over next three years. Similarly, in UP, for Purvanchal and Ganga expressways together the estimated spend over next three years is around…

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Puravankara-Morgan Stanley fund to build industrial parks

According to a recent report published in a leading national daily, real estate firm Puravankara and Morgan Stanley have signed an agreement to utilize a specific investment fund to create a warehousing platform. It will be eventually utilized to set up industrial parks in South India where Purvankara is strongly positioned.   The report underlines that the warehousing platform would mainly seek to undertake greenfield projects. “ It is at the initial stage where the process of identifying land parcels has started. Puravankara being Bengaluru-based, the south is its core…

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Chennai Port to operate Kamarajar Port as subsidiary

In a significant development, the Cabinet Committee on Economic Affairs recently gave ‘in principle’ approval for strategic disinvestment of 100% equity shares of Government of India in Kamarajar Port Limited (KPL) to Chennai Port Trust (ChPT) in a single stage process, by following ‘Arm’s length’ principles. After the transfer of the complete equity shares right, Kamarajar Port will be operated as subsidiary by Chennai Port Trust. Presently, the Government of India and Chennai Port Trust hold 67% and 33% of shares respectively in Kamarajar Port Limited.   The methods of valuation,…

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Rajkot to get greenfield airport

The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi has last week cleared the proposal for development of New Greenfield Airport at Hirasar, Rajkot, Gujarat. The project is estimated to cost over Rs 1400 crore. The decision to create a new airport has been taken as the existing hub is not scalable. The present airport at Rajkot is severely land constrained having only 236 acres (approx.) of land and situated in the heart of city. Considering the constraints and compulsions with respect to existing airport, state…

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Two spice parks unveiled

Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu, last week announced Rs 1000 crore worth of projects. This also included inauguration of two spices parks in the country – in Kota, Rajasthan and Raebareli in Uttar Pradesh. The establishment of spices parks is meant to help farmers to get better returns for their produce and to ensure the quality of spices for exports. The elimination of intermediaries in the supply chain due to direct linkages facilitated by the parks will ensure better prices for the farmers informed…

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Tripura gets its first mega food park

Union Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti recently inaugurated Sikaria Mega Food Park at Village Tulakona in Agartala. This is the first Mega Food Park in the state of Tripura. The Mega Food Park has been set up in 50 acre of land at the cost of Rs. 87.45 crore. Government of India has accorded approval of a financial assistance of Rs. 50.00 Crore to the project. The food park is having facilities of fully operational Dry warehouse and material handling of 5000 MT, Pineapple canning…

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