Mumbai Port plans auto repair joint venture

Trust will pick up equity against land to be provided by it

The Mumbai Port Trust (MbPT) is going off the beaten track and is joining hands with automobile majors to set up a repair and refurbishing plant for second-hand cars and heavy earth moving equipment.

The Trust will pick up equity in the proposed venture against land to be provided by it. A senior port official said the Trust had invited expressions of interest for the use of land for a 30-year lease period for setting up state-of-the-art automobile service, repairs and refurbishing facilities for pre-owned cars and heavy earth moving equipment.

Though the final details were yet to be worked out, the official said "We will, in all probability, not chip in with funds for the joint venture. Our land and infrastructure could be considered as our contribution towards the proposed venture."

This proposed plant will facilitate auto majors to import second-hand cars, which can be re-exported or sold in the domestic market after refurbishing and repairing in Mumbai. The joint venture would repair and refurbish 600 cars in the initial year and take it up to 10,000 vehicles per year later.

The venture, once its up and running, would boost vehicle traffic through MbPT as import and export are involved in the plant. This would also create opportunities for other port-related activities in addition to employment generation. Mumbai Port has taken the cue from Dubai free trade zones (FTZs).

"Various FTZs in Dubai are involved in refurbishing and repairs of pre-owned cars. Automotive majors can enjoy the advantage of cheap labour if they set a facility in India," an industry official said.

Asked about the estimated cost of the project, the official said that it had not yet been finalised but the port will reserve 12,000 sq mt of land for this facility near the Cotton Depot in the port premises.

Industry sources said that the cost of the proposed facility would be in the range of Rs 25 crore to Rs 50 crore and auto majors would be keen to participate in the venture.