Gujarat: High rates keep bidders away despite shipping minister's efforts

Rajkot: Once again , the Smart Industrial Port City (SIPC) being developed by the Deendayal Port Trust (DPT), has failed to attract bidders for its furniture park. This is despite the efforts of minister of state for shipping Mansukh Mandavia, who held meeting with the stakeholders on October 5 at Gandhidham.

Members of the Kandla Timber Association claimed that setting up a unit at the furniture park spread over 100 acre land was not feasible owing to high land lease rates fixed by the DPT.

The timber industry is developed in the periphery of DPT on the Gandhidham-Anjar road. Nearly 70% of the timber imported in the country is from Kandla port. There are over 2,000 sawmills and 100 plywood factories near Kandla.

SIPC is being developed on 1,430 acre land owned by DPT, out of which 560 acre is available for lease. The furniture park is being developed on 100 acre land that is available for lease. The DPT is offering investors 60 years lease at the annual rate of Rs 3,500-4,000 per square meter depending upon the plot size.

According to president of Kandla Timber Association Navneet Gajjar, Mandavia attended a seminar on October 5 to convince the timber manufacturers to set up units in furniture park, but he failed to convince them.

“We already have an established business. If we want to expand we are getting land with ownership at Rs 1,500 per square meter, then why should we lease land and that to at more than double the rate?” asked Gajjar.

Moreover, the furniture park is just 3 km from the sea and the land there is saline in nature which causes corrosion in the copper that we use in our factory, he added.

Members of timber association said that during 1998 cyclone that land where the furniture park is being developed was flooded and during ‘Yayu’ cyclone in June this year the slum people on that land too had to be evacuated.

Only four parties have shown interest in leasing the land but they too are concerned about the high rates and other issues.

Mukesh Bharatia, who owns a plywood unit near Gandhidham said, “Over 90% units here import timber and make furniture for sale in domestic market. For this we don’t need to go to the furniture park. The park is useful only for EOUs (Export Oriented Units).”

S K Mehta chairman of DPT said, “We have spent Rs 180 crore on levelling of the land. Also, there is not no issue with land salinity.”