As per a report by Business Line, Adani Logistics Ltd is shuttering operations at its rail-linked Inland Container Depot (ICD) at Kilaraipur, in Ludhiana. The news comes after a 7-month long blockade by protesting farmers agitating over the controversial farm bills passed by the Centre that rendered the facility idle causing huge losses to the group.
The protestors have blocked the main gate of the ICD since January 2021. They’ve placed a tractor trolley, barring the movement of goods and personnel which led to a halt in operations at the facility.
This multi-modal logistics park at Kilaraipur, which is spread over 80 acres, was opened in 2017. It was opened to cater to the industries in and around Ludhiana, offering services for the import and export of cargo by rail and road.
The report says that the Adani Group had been waiting in the hope that the blockade would 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.
The person also said that the Adani Group had removed its signage from the main gate of the ICD and had issued termination notices to its employees.
“It will also result in loss to the exchequer by way of railway haulage, GST, Customs duties and other taxes of about Rs 700 crores and the overall economic impact is estimated worth more than Rs 7,000 crore,” the report says.
The report also states that the Adani Group had filed reports with the police to end the blockade, but all failed. In March, the Adani Group had also filed a writ petition in the Panjab and Haryana High Court to protect its fundamental right to carry on business.
The State Authorities till date have only filed status reports before the Court and completely failed to remove the blockade, the report says.
“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.