NEW DELHI: While the central government unveiled the national logistics policy on Saturday, so far only 13 states have set their own state-specific logistics policy. Several of the states not ruled by the Bharatiya Janata Party such as Odisha, Rajasthan, Tamil Nadu, Kerala among others have yet to firm up their own policies.
On Saturday, Prime Minister Narendra Modi unveiled the long-awaited National Logistics Policy which aims to reduce the cost of India’s logistics operations to 13-14% of gross domestic product in single digits by 2030 and lift the country in the top 25 nations in terms of ranking in the logistics performance index prepared by the World Bank. In 2018, India’s ranking in the index was 44.
According to senior central government officials involved in the formulation of the national logistics policy, the central government has urged the state governments to come up with their respective policies as the formulation of state specific logistics policies is essential if India is to achieve one of the main objectives. improve its ranking in the logistics performance index.
“If each state improves its logistics efficiency and the relevant central agencies do the same, then the country’s performance in the Logistics Performance Index, which is based on six metrics, if action is taken on those metrics, then our ranking and our perception will improve among global investors,” Amrit Lal Meena, Special Secretary (Logistics) of the Industry Promotion and Domestic Trade Department told ET Infra during a July interaction.
In line with Andhra Pradesh Logistics Policy 2022-2027, the state government has unveiled fiscal incentives which include 100% refund of land registration stamp duty for setting up warehouses, of cold storage warehouses, inland container depots and multi-modal logistics parks in the state.
Under the ‘Assam Logistics and Warehousing Policy 2022’, any industrial park developed by state government bodies such as Assam Industrial Infrastructure Development Corporation, 15% of the land will be allocated for the development of logistics parks, warehouses , truck terminals and cold storage facilities.
One of the pillars of the Global Logistics Action Plan within the framework of the National Logistics Policy is the engagement of the central government with the States for the establishment of an institutional framework enabling action to be taken at the city/city level. of the state, to measure and monitor state action and to rank them. Aligning state policies with central government policy vision will be key for India to improve its ranking in the Logistics Performance Index
“Effective implementation of the policy would depend on the support of each state, with critical areas such as first and last mile connectivity, transport, industrial development, etc., and associated regulatory approvals falling within their jurisdiction. competence,” said Arindam Guha, Leader and Government & Public Sector Partner, Deloitte India.
Achieving the objectives of the National Logistics Policy will greatly depend on the synergies and the development of the States’ logistics network.
The Logistics Division of the Industry and Internal Trade Promotion Department of the Ministry of Commerce undertakes an annual “Logistics Facility in Different States” or LEADS survey to assess and suggest various improvements in the logistics sector and rank States and Union Territories on the efficiency of their logistics ecosystem.
Under PM Gati Shakti’s national master plan, an important component of the national logistics policy, infrastructure planning and data layers of various central ministries, departments and agencies as well as data layers of relevant public agencies and bodies are scanned and uploaded to a single portal.
The LEADS survey for 2022, which is expected to be completed by the end of September, will also take into account the PM Gati Shakti initiative for the first time. The initiative depends on the cooperation of states in sharing their respective infrastructure and logistics data with the center.
But for the National Logistics Policy to achieve its objectives, the participation of the private sector remains essential. According to Meena, the government is working on a facilitation mechanism to open the PM Gati Shakti initiative to the private sector.