Madras Fertilizers Ltd (MFL) is scouting for a joint venture partner to develop a portion of its vacant land into a ‘modern logistics park’.
MFL has already appointed a consultant to study the feasibility of developing a modern logistics park at a cost of over Rs.280 crore.
The company has about 130 acre of vacant land within its premises and four acres at Manali New Town.
The company is located between Chennai Port and Kamarajar Port/L&T Kattupalli Port with road and rail connectivity. The Park will come up within the main premises. About 51 acre have been earmarked for the propose park that is expected to house a container freight station, inland container depot, scientific warehouses with cold storage, and auto carriage with all infrastructural facilities.
The consultant, it is learnt, has submitted three reports. The first two pertain to the advantageous, and the last one is about land use plan, project and operation costs and revenue and profitability factors.
The consultant is reported to have suggested an upfront payment of Rs.66.62 crore by the promoter for the land and also an assured minimum revenue share of 7 per cent to MFL.
The revenue share will increase at the rate of five per cent every year up to 30 years, according to company sources.
MFL board will meet soon to float a tender to select the partner after getting formal approval from Department of Fertilizers. The consultant has been asked to study the worthiness of the new partner, the financial status and infrastructure facility.
“We have several options lined up for this project. It may come up on BOT (build, own and transfer) public-private-partnership or joint venture model. The idea is to make better use of the vacant land to earn more revenue,” aver a top official of MFL.
