Summary
Navkar Corporation, a listed subsidiary of JSW Infrastructure, has received a Letter of Acceptance from Southern Railway’s Salem Division for a ₹48 crore Gati Shakti Multi-Modal Cargo Terminal at Kulipalaiyam station on the Uthukuli-Tiruppur section in Tamil Nadu. The terminal will be built on railway land within 18 months and licensed for 35 years.
Article
Mumbai: JSW Infrastructure’s listed subsidiary Navkar Corporation Limited has won a contract worth about ₹48 crore from Southern Railway to build and operate a Gati Shakti Multi-Modal Cargo Terminal (GCT) at Kulipalaiyam station in Tamil Nadu.
JSW Infrastructure disclosed the award in a regulatory filing on October 14, 2026. Navkar received the Letter of Acceptance from the Office of the Senior Divisional Commercial Manager, Commercial Department, Salem Division, on October 13.
What does the contract involve?
The terminal will be located at Kulipalaiyam station on the Uthukuli-Tiruppur section. It will be developed entirely on railway land.
Navkar must complete construction within 18 months of receiving construction approval or the handover of railway land, whichever is later. Once complete, the terminal will be licensed to Navkar for 35 years.
The company said the contract is with a domestic entity and does not involve related-party transactions. Final terms will follow the agreement to be signed with Southern Railway’s Salem Division, and the financial figures may change accordingly.
What is a Gati Shakti Cargo Terminal?
Under Indian Railways’ Gati Shakti Multi-Modal Cargo Terminal policy, private operators build and run freight terminals on railway land or adjoining land to bring more cargo onto rail. JSW Infrastructure describes GCTs as an asset-light model because the land is provided by the railways.
How does this fit JSW Infrastructure’s strategy?
JSW Infrastructure, India’s second-largest private commercial port operator, entered inland logistics in June 2024 by agreeing to acquire a 70.37% stake in Navkar from its promoters. The deal was valued at an enterprise value of ₹1,644.03 crore.
Navkar operates a container freight station and a Gati Shakti cargo terminal at Somathane, Panvel, two more CFSs at Ajivali, Panvel, and an inland container depot at Morbi in Gujarat, which is part of a multimodal logistics park. It also holds Category 1 and Category 2 container train operator licences.
JSW Infrastructure has since been adding GCTs, including one in Chennai with a capital expenditure of ₹150 crore, and lists terminals at Arakkonam and an ICD at Kudathini among its logistics assets. The strategy supports its goal of building a pan-India logistics network and raising the share of third-party cargo at its ports.
Why does it matter?
Tiruppur is one of India’s largest knitwear and garment export clusters, and the surrounding western Tamil Nadu belt is a significant industrial region. A rail-linked cargo terminal at Kulipalaiyam could offer exporters and manufacturers a lower-cost alternative to road transport to gateway ports.
For JSW Infrastructure, each new terminal deepens its inland network, helping it capture cargo closer to its source and route more volumes through its port terminals.
FAQs
What contract has Navkar Corporation won?
A contract worth about ₹48 crore from Southern Railway to build and operate a Gati Shakti Multi-Modal Cargo Terminal at Kulipalaiyam station.
Where is the terminal located?
At Kulipalaiyam station on the Uthukuli-Tiruppur section in Tamil Nadu.
How long will construction take?
Eighteen months from construction approval or land handover, whichever is later.
How long is the licence period?
The terminal will be licensed to Navkar for 35 years.
How is Navkar linked to JSW Infrastructure?
JSW Infrastructure acquired a 70.37% stake in Navkar through JSW Port Logistics in a deal announced in June 2024.
