Logistics

Adani to shut multi-modal logistics park in Ludhiana as seven-month blockade over farm Bills bites

P Manoj Mumbai | Updated on July 30, 2021

Closure of the ICD will impact jobs of about 400 persons

Adani Logistics Ltd is shuttering operations at its rail-linked inland container depot (ICD) at Kilaraipur in Ludhiana after a seven-month blockade by protestors agitating over the controversial farm Bills passed by the Centre rendered the facility idle, incurring huge losses to the group.

Since January, the protestors have blocked the main gate of the ICD by placing a tractor trolley to obstruct the movement of goods and personnel, thereby halting entire operations at the facility.

The multi-modal logistics park at Kilaraipur, spread over 80 acres, was opened in 2017 to cater to the industries in and around Ludhiana, offering services for the import and export of cargo by rail and road.

The Adani Group has been waiting in the hope that the blockade will be removed.

“As the state administration was not able to remove the blockade and allow the ICD to continue operations, the Adani Group has decided to close the business operation at ICD Kilaraipur as it cannot sustain losses and continue to pay wages to employees any longer,” a person briefed on the development said.

As part of the closing down of ICD Kilaraipur, the Adani Group has removed its signage from the main gate of the ICD and issued termination notice to its employees and others, the person said.

The closure of the ICD will impact jobs — direct and indirect — of about 400 persons and their families. It will also result in loss to the exchequer by way of railway haulage, GST, Customs duties and other taxes of about ₹700 crore and the overall economic impact is estimated worth more than ₹7,000 crore.

After complaints to the police failed to end the blockade, the Adani Group filed a writ petition in the Punjab and Haryana High Court in March to protect its fundamental right to carry on business.

The State Authorities to date have only filed status reports before the Court and completely failed to remove the blockade.

“Owing to the blockade, the ICD business has come to a complete standstill. Despite this, the Group has continuously paid full wages to its staff and payments to vendors in the hope that the High Court and the State of Punjab will take action for removal of the blockade,” the person said.

The Adani Group declined to comment.

Published on July 30, 2021

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