Flipkart is set to invest Rs 991 crore to set up an integrated logistics hub in Bengal. The planned hub, at Haringhata Industrial Park near Kalyani, 80km from Kolkata, is the e-commerce giant’s second such announced centre of this magnitude after the one in Bengaluru, where the company is based, and the biggest investment in logistics so far by any e-commerce company in the east.
State finance minister Amit Mitra said that the West Bengal Industrial Development Corporation (WBIDC), during a board meeting on Wednesday, decided to provide 100 acres to Flipkart for setting up the hub. TOI had reported in March that the e-commerce behemoth would make Bengal a hub for their operations in eastern and northeastern India, along with Bhutan and Nepal.
Mitra said Instacard, a Flipkart subsidiary, will run the operations in Haringhata and employ over 18,000 people, according to the draft project report submitted to the Bengal government. The cabinet’s standing committee will give formal approval, he added.
Flipkart to pay Rs 63.49 lakh per acre
Flipkart will have to pay Rs 63.49 lakh per acre, finance minister Amit Mitra said. “The price has been fixed taking into consideration standard acquisition cost and land development cost, along with index of investment and stamp duty for registration,” he added/ The minister pointed out that Flipkart had found the location — on NH 34 — viable for their operations as it was close to the airport, which would give them easy access to Bhutan and the North-East. “They will start operations within six months. By 2020, they will fully run the hub,” Mitra said. “It has the potential to generate a lot of employment.”
A company official had earlier said that the proposed nerve centre of the company’s eastern India operations would house several Flipkart fulfilment and sorting centres (warehouses and distribution hubs). “It will improve supply-chain efficiency and reduce costs by deploying mechanised warehousing and intelligent transport systems. It will also generate employment for over 15,000 people,” the company officially had said.
Apart from over 5,000 direct job creation, the Haringhata hub could provide indirect jobs for 15,000 people in supporting logistics activities, trucking, C&F (clearing and forwarding) services and food catering, among others. Flipkart had earlier said that Kolkata, the biggest city in the eastern India, was ideally suited to serve the entire region owing to its well-developed infrastructure and transportation channels.
“The City of Joy is the third largest urban conglomeration in India, which makes it an apt choice for us to set up a logistics hub,” a Flipkart official said.
Source: Times of India