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J-K, Dubai Ports form JV for developing inland hubs

Press Trust of India  |  Jammu 

In a significant move, the and government and today inked a pact for a joint venture involving maiden Rs 1,500 crore foreign direct investment for setting up inland logistic hubs in and 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 and Srinagar, as a Joint Venture between Dubai Ports and the Jammu and government, was finalised at the delegation level talks between DP team and Haseeb Drabu-led team," an official said.

A high-level delegation of the (DP World) led by its arrived by a chartered flight here this morning to discuss the modalities for setting up inland logistics hubs in Jammu and

and his team held separate meetings with and Industries Minister Chander Parkash Ganga, followed by delegation level parleys with the concerned ministers and officials.

"The visit of delegation follows the announcement made by the in his budget speech in the 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 said.

Chander Parkash Ganga, Principal Secretary Finance, Navin Kumar Choudhary, Principal Secretary Industries, and other officials of the concerned departments were present at the delegation-level meeting.

The meeting deliberated in detail on the parameters of the MoU.

The MoU is to be subsequently signed by the Government of with the to facilitate setting up the first inland logistics hub in Jammu and

To begin with, 100 acres of land would be offered by the 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 said.

The logistics hubs to be established in 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 to transport commodities and products including horticulture and agriculture produce, handicrafts and 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 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 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.

Dubai Ports is operating 78 marine and inland terminals supported by over 50 related businesses in 40 countries across six continents with a significant presence in both high-growth and mature markets.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 07 2018. 19:40 IST