While the central government on Saturday unveiled the National Logistics Policy, so far only 13 states have framed their own state-specific logistics policy. Several of the non-Bharatiya Janata Party governed states such as Odisha, Rajasthan, Tamil Nadu, Kerala among others are yet to firm up their own policy.
On Saturday, Prime Minister Narendra Modi unveiled the much-awaited National Logistics Policy which aims to bring down India’s cost of logistics operations from 13-14% of gross domestic product to single digit by 2030 and elevate the country into top 25 nations in terms of ranking in the Logistics Performance Index prepared by World Bank. In 2018, India’s ranking in the index stood at 44.
According to senior central government officials involved in the formulation of the National Logistics Policy, the central government has been urging state governments to bring out their respective policies as formulation of state-specific logistics policies are essential if India is to achieve one of the core targets of improving its ranking in the Logistics Performance Index.
“If every state improves its logistic efficiency and also the concerned central agencies does the same, then the country’s performance in the Logistics Performance Index, which is based on six parameters, if action is taken on those parameters, then our ranking and perception will improve among the global investors,” Amrit Lal Meena, Special Secretary (Logistics), Department for Promotion of Industry and Internal Trade had told ET Infra in an interaction in July.
As per the Andhra Pradesh Logistics Policy 2022-2027, the state government has unveiled fiscal incentives which includes 100% stamp duty reimbursement on land registration for setting up warehouses, cold storages, inland container depots, multimodal logistics parks in the state.
Under ‘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 earmarked for the development of logistics parks, warehouses, truck terminals and cold storage facilities.
One of the pillars of the Comprehensive Logistics Action Plan under the National Logistics Policy is the central government’s engagement with states for setting up an institutional framework to take action at city/state level, measure and monitor action by states and rank them. The harmonisation of the states’ policies with the central government’s policy vision will be key to India improving its ranking in the Logistics Performance Index
“Effective implementation of the policy would depend on support from individual states, with critical areas like first & last mile connectivity, transport, industrial development etc, together with associated regulatory approvals falling under their jurisdiction,” said Arindam Guha, Leader & partner Government & Public Sector, Deloitte India.
The attainment of objectives of the National Logistics Policy, will very much depend on the synergies and development of states’ logistics network.
The logistics division of the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce undertakes an annual ‘Logistics Ease Across 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 the PM Gati Shakti National Master Plan, an important component of National Logistics Policy, infrastructure planning and data layers from various central ministries, departments and agencies as well as data layers from the relevant state agencies and bodies are being digitised and uploaded on a single portal.
The LEADS survey for 2022, which is scheduled to be completed by the end of September, will for the first time also take into account the PM Gati Shakti initiative. The initiative depends on states’ cooperation in sharing their respective infrastructure and logistics data with the centre.
But for the National Logistics Policy to be able to meet its objectives, the participation of the private sector remains key. According to Meena, the government is working on a facilitation mechanism to open the PM Gati Shakti initiative for the private sector.
