Date:18/09/2005 URL: http://www.thehindubusinessline.com/2005/09/18/stories/2005091801830200.htm

Back Concor plans Rs 2,500-cr capex over five years

Mamuni Das

New Delhi , Sept. 17

Container Corporation of India (Concor) plans to spend about Rs 2,500 crore as capital expenditure over a five-year period.

The expenditure would be towards container acquisition, developing inland container depots, meeting joint venture commitments and other domestic sector projects.

"We plan to spend about Rs 500 crore per annum as the total capital expenditure over the five-year period starting from 2005-06 to 2009-10," a senior Concor official told Business Line.

A significant portion would be spent on wagon acquisition every year. "We plan to spend Rs 250-300 crore annually on acquiring wagons every year during the period," said the official, adding that it plans to acquire at least 1,000 wagons each year.

It has acquired 1,800 high-speed wagons during the last 15 months and plans to add another 1,300 wagons during 2005-06. Having firmed up its plans for 2006-07, the company is working out acquisition plans for about 1,000 wagons during 2007-08.

"We had invited the bids and are in the process of firming up the orders," said the official.

Other projects: Concor also has plans for several projects, some of which include joint ventures such as the auto carrier and cold chain projects. It plans to enter into a joint venture for its auto carrier project. In order to offer door-to-door transportation solutions to automobile companies, the public sector unit is in talks to tie-up with a player (with expertise in transporting vehicles) in the road sector to tie up the last-mile connectivity issues at both ends of the rail link.

The company plans to develop an integrated cold chain facility that would help in transporting fruits and vegetables for domestic and export purposes. The total cost of the project is expected to be Rs 110 crore that would include building and operating a storage facility at Delhi, and link the entire route — from production to collection centres to post harvest treatment centres and to controlled atmosphere stores with refrigerated trucks or vans.

The company is in talks with APEDA (Agricultural and Processed Food Products Export Development Authority), various State Governments and cooperatives for strategic tie-ups. It also plans to set up an air cargo complex with Hindustan Aeronautics Ltd at Nashik, the total cost of which is expected to be Rs 8-10 crore.