Punjab Govt's Navi Mumbai warehousing facility leased out for Rs 44 crore
The Punjab Government has finally been able to capitalise its over 26 acre warehousing facility in Navi Mumbai by leasing it out to a private firm for Rs 44.44 crore. For the past many years, the facility was leased out for just Rs 4.50 crore.
The Punjab Infrastructure Development Board (PIDB) has now awarded a tender to a consortium of three companies for operation and maintenance of the Container Freight Station (CFS) for 15 years (extendable by five years) with a upfront fee of Rs 44 .44 crore and annual fixed fee of Rs 19.75 crore, which will be increased every year throughout the lease period.
The consortium has formed a special purpose vehicle, Rajgad Global India Private Limited, and has deposited the first tranche of the upfront fee of Rs 22.22 crore and a performance bank guarantee of Rs 10 crore. “The Customs Commissioner granted them permission last month to operate, manage and maintain the CFS. Since the CSF (including a warehouse spread over 47,465 sq m) is now run down, it is being restored,” said a senior official.
The CFS, a customs notified facility at Navi Mumbai, was originally developed by CONWARE (Punjab State Container and Warehousing Corporation) and it began operations in 1999.
It was operated by CONWARE till 2005-06, before it was offered to a private entity for 15 years. This lease expired in 2022. Since then, the state government was in the process to identify and select a bidder. After several legal wranglings, the bidder has finally been selected.
