The Madhya Pradesh State Agricultural Marketing Board (Mandi Board) is set to propose amendments to a concession agreement, enabling Dubai-based DP World Ltd’s subsidiary to acquire a ‘Composite Logistics Hub’ facilitated by Kesar Multimodal Logistics Ltd in Pawarkheda, Hoshangabad district.
The move comes after the DP World-Kesar Multimodal deal, announced in September last year, encountered hurdles due to regulatory requirements. Proposed amendments include revising the condition mandating Kesar Terminals & Infrastructure Ltd’s 26 percent stake in Kesar Multimodal Logistics throughout the license period. The Mandi Board also seeks to extend the timeline for the public-private partnership (PPP) operator to develop the facility, aligning with the original concession agreement inked in 2011. Kesar Multimodal Logistics Ltd, established as a special purpose vehicle, aimed to construct a ‘Composite Logistics Hub’ in Pawarkheda. However, challenges arose amidst increasing competition and operational constraints. The proposed hub encompasses various facilities like a private freight terminal, warehousing complexes, and inland container depots, strategically located to optimize freight movement across Indian Railways.
Despite initial successes, Kesar Multimodal Logistics faced setbacks including competition from established players like Container Corporation of India Ltd (CONCOR) and logistical challenges such as dependency on third-party trucking services. The deal between Kesar Terminals & Infrastructure Ltd and DP World Multimodal Logistics Pvt Ltd remains pending, awaiting regulatory approvals and a no objection certificate (NOC) from the Mandi Board. The proposed amendments seek to facilitate this transaction while ensuring compliance with regulatory requirements and addressing concerns of post-tender modifications.
The MP government’s initiative underscores efforts to bolster the state’s logistics infrastructure and attract foreign investments. However, it also prompts discussions regarding regulatory frameworks and transparency in public-private partnerships, particularly in strategic sectors like logistics and transportation. As stakeholders navigate through regulatory complexities, the outcome of these proposed amendments will significantly influence the trajectory of the DP World-Kesar Multimodal Logistics deal and broader initiatives aimed at enhancing logistics efficiency in Madhya Pradesh.
