Development of a Composite Logistics Hub A Public Private Participation initiative by Govt. Of Madhya Pradesh

MULTIMODAL LOGISITCS HUB A FIRST OF ITS KIND MULTIMODAL LOGISITCS HUB IN INDIA TAKEN UP BY MP MANDI BOARD RAIL TERMINAL,ICD,CFS,WAREHOUSING ZONE,COLD STORAGE, AGRI PROCESSING ZONE

Overview and Pre-Award

Overview (1) Short Description Setting up Composite Logistics Hub at Powarkheda, Distt. Hoshangabad Implementing Agency MP State Agricultural Marketing Board (Mandi Board) Line Department Agriculture Department Location Powarkheda, Distt. Hoshangabad (between NH 69 & Delhi-Mumbai rly line next to Powarkheda rly stn, 6.5 km from Itarsi rly stn) Well-connected: NH 69 for North-South NH 12 for East Area 115 acres land Concession Period 33 years, extendable by 15 years Beneficiary of the project: Project Influence Area (PIA) : Hoshangabad, Betul, Harda, Sehore, Bhopal, Raisen Cargoes: Wheat, Rice, Soya Bean, DOC, Horticulture produce, Industrial Products

Benefits from the Project All services under one roof to entire logistics chain Mandi for sale of produce Warehouses for storage - WDRA approved Modern logistics support services Export / Import facility Storage for perishable / high value produces Value addition for the produces Reduction in losses Farmers Point of view Facility will catalyze the development of the area Employment Generation Attract investments by way of ancillary facilities Value enhancement to the farmers Encourage farmers to grow horticulture crops due to cold storage De-congestion of city of Itarsi from truck movement Social point of view

Benefits

Overview (2) PPP Mode DBFOT Estimated Cost Rs. 138.50 crs. Construction period 3 years for minimum facilities (COD) 7 years for completion IRR 20.70% (post-adjustment of cash flow to rly for revenue sharing) Bid Process 2-Stage 1st RfQ Issued 01.12.2009 No response Stringent criteria, no qualifiers 2nd RfQ Issued 04.03.2011 Opened 30.03.2011 13 RfQs recd / 12 short-listed RfP Issued 16.05.2011 Opened 14.07.2011 Concession signed 24.10.2011 Substitution Agreement signed 11.10.2012 with lead bank Bidding Parameter Highest Premium

Annual Concession Premium Procurement (2) Bid Highlights Annual Concession Premium Winning Bidder Kesar MultiModal Logistics Ltd., Mumbai (Consortium of Kesar Terminal & Infrastructure Ltd with Kesar Enterprises Ltd) Winning Bid Rs. 12.78 crs. To be paid in 10 equal yearly instalments w.e.f. Fin Close so that PV of instalment @12% discounting is same as 1/10th of quoted premium based on formula Cfn = Cq x (1+r)n-1 Cfn : Premium to be paid in nth year Cq : Original quoted premium instalment n : Year of cash flow r : Discount Rate (12%) S. No. Amount (Rs. Crs) Status 1 1,27,80,000 Paid 2 1,43,13,600 3 1,60,31,232 4 1,79,54,980 5 2,01,09,577 Future Payments 6 2,25,22,727 7 2,52,25,454 8 2,82,52,508 9 3,16,42,809 10 3,54,39,947 22,42,72,834 Grand Total

Conceptual Scope of Work (1) Development by Concessionaire (88.3 acres) Development by Govt Agencies (26.7 acres) Railway siding/private freight terminal CFS/ICD Warehouse for agro and industrial cargo (Bulk, Bonded, transit etc.) Cold Storage Processing Facility Value add services area Wholesale market for agriculture and horticulture (developed by Mandi Board) Warehousing Facilities (developed by MP Warehousing & Logistics Corp as National Storage Reserve)

Post-Award

Project Progress Debt : Equity ratio 2 : 1 Approvals Accorded S. No. Purpose Agency Date 1 Master Plan Mandi Board 24-12-12 2 Railway Siding GM-Western Railway 18-12-12 3 Pollution MP Pollution Control Board 18-09-12 4 ICD Inter-Ministerial Committee, GoI 19-12-12 Financing Scheme Particulars Agency Amount Financial Closure Consortium of Banks 148.67 Debt : Equity ratio 2 : 1

Construction Progress Details Total (7 years) Minimum as per CA (3 yrs) Actual COD 21-04-15 20-04-15 Warehouse & Bulk Terminal 47,500 sq. mt. 15,000 sq. mt. 15,127 sq. mt. complete + 8,125 sq. mt. up to plinth Transit & Bonded Warehouse 1,946 sq. mt. 1,076 sq. mt. 1,375 sq. mt. Railway Lines 3 nos. 2 nos. Cold Storage 3,000 sq. mt. 600 sq. mt. 3,600 sq. mt. Paved Area 72,817 sq. mt. 28,200 sq. mt. 28,449 sq. mt. Weigh Bridges 2 Nil Common Facilities 87,703 sq. mt. 51,142 sq. mt. 55,638 sq. mt.

Highlights 30th Sept 2015 COD expected Due to time taking Railway /CRS approvals and Delays from Railway side due to accidents at Itarsi and Harda. Planned COD could not be achieved as railway siding could not be commissioned. However all other facilities were ready and commissioned on 20th April 2015. 30th Sept 2015

Inauguration on 30/05/2015

Inauguration on 30/05/2015

Inauguration on 30/05/2015

Project Photographs as on 30/08/2015

Site Office

Admin Building

ICD Warehouse

Container Yard at ICD

Warehouse-3 (3000 Sq.Mtr Agri Warehouse) Front View

Warehouse-3 (3000 Sqm) view of Tremix Flooring

Warehouse-4 (3600 Sq.Mtr Agri Warehouse) Front View

Warehouse-4 (3600 Sqm Agri Warehouse) Inside View

Rail Warehouse no. 1 – 8125 Sqm

Rail Yard for Line 1 and Line 2

Rail Connectivity on Bhopal end

Track Linking for 3rd Railway Line

Track Linking works in Railway Premises

Cold Storage (3600 Sqm)

Trunk Road from NH to Rail Yard

Park (ing) PPPs firmly in MP Logistics Park : Park (ing) PPPs firmly in MP Thank You