MINISTRY OF COMMERCE AND INDUSTRY
(Department for Promotion of Industry and Internal Trade)
NOTIFICATION
New Delhi, the 28th September, 2022

S.O. 4575(E).—The Union Cabinet in its meeting held on 21.09.2022, approved the following proposals:

(a) The National Logistics Policy, 2022, (enclosed at Annexure A), and;

(b) To authorize the Department to take decision in respect of any modification or consequential changes deemed necessary for implementation of the National Logistics Policy within the broad contours approved by the Cabinet, and based on the recommendations of the Empowered Group of Secretaries (EGoS).

2. Accordingly, the National Logistics Policy 2022 is hereby notified for implementation with immediate effect.

[F. No. 63/Logistics/2018 (E-64290)]

SURENDRA KUMAR AHIRWAR, Jt. Secy.

Annexure A

NATIONAL LOGISTICS POLICY 2022

1.1 Logistics efficiency is a function of infrastructure, services (digital systems/processes/ regulatory framework) and human resource. The PM GatiShakti National Master Plan (NMP) for multimodal connectivity infrastructure to various economic zones, has been launched. PM GatiShakti National Master Plan is a transformative approach for improving logistics efficiency and reducing logistics cost, with focus on integration of existing and proposed infrastructure development initiatives of different agencies, to ensure first and last mile connectivity, for seamless movement of people and goods.

1.2 While development of integrated infrastructure and network planning is envisaged to be addressed through the PM GatiShakti National Master Plan, for efficiency in services (processes, digital systems, regulatory framework) and human resource, the National Logistics Policy is the logical next step. This will provide a comprehensive agenda for development of entire logistics ecosystem.

2. Definition

‘Logistics’ means Transportation & handling of goods between points of production and consumption, storage, value addition and allied services. The logistics infrastructure comprises of nodes and connections, more recognizable as ports, stations, Multimodal Logistics Parks (MMLPs), warehouses, and other business premises, connected by roads, railways, shipping, inland waterways, air routes, pipelines, etc., that are used by a wide range of carriers. This system is operated under a framework through a workforce with a wide range of knowledge of skills and technologies.

3. Vision and Objectives

3.1 The vision of the National Logistics Policy is “To develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth.”

3.2 Accordingly, the key objectives of the policy are:

a) Integration: to promote inter-modality, multi-modality through seamless integration of processes, digital systems, policies/plans and legislative requirements.

b) Optimization: to promote and ensure optimal utilization of logistics infrastructure/assets/facilities through synergetic usage.

c) Standardization: of physical assets, processes, taxonomy, benchmarking of service quality standards, in the logistics sector.

d) Modernization: to promote greater adoption of information communication technology, upgraded infrastructure, use of drones, automation, innovation, green logistics, international best practices and facilitate integration with global value chain.

e) Formalisation: to reduce fragmentation in the sector, promote excellence, mainstream logistics in higher education, upskilling and re-skilling of existing workforce.

f) Democratization: to promote inclusivity by addressing needs of logistics supply and user side (agriculture and manufacturing sector and internal and external trade) and encourage public-private participation.

4. Targets

Targets for achieving the vision of the National Logistics Policy are to (i) Reduce cost of logistics in India to be comparable to global benchmarks by 2030; (ii) improve the Logistics Performance Index ranking – endeavor is to be among top 25 countries by 2030; and (iii) create data driven decision support mechanism for an efficient logistics ecosystem.

5. Strategies for achieving the targets:

5.1 Reduction in logistics costs is planned to be attained through measures that improve efficiency in transport, warehousing, inventory management, and regulatory matters and order processing.

5.1.1 Improvement in transportation through migration towards relatively more efficient, economical and environmentally sustainable modal mix; improvement in efficiency of transport systems through promoting development of multimodal interconnected infrastructure; and Sectoral Plans for Efficient Logistics thereby addressing the issues of first and last mile, innovations in the design of rolling and floating stock and associated material handling, collaborative usage of logistics infrastructure and smart enforcement for minimizing detentions. The policy would provide road map for assessment of requirements of capacities and potentials of ports/multimodal logistics hubs, parks/cargo terminals, etc., logistics for efficient harnessing of natural resources, promote use of drones, automation, new technologies for logistics, among others.

5.1.2 Improvement in warehousing through (a) enabling adequate development of warehouses with optimal spatial planning using the PM GatiShakti NMP and facilitating private investments in warehouses; (b) facilitating improvement in efficiency, productivity and quality services in warehousing through promotion of standards, rewarding excellence and promoting digitization (use of Artificial Intelligence (AI)/Machine Learning (ML)/warehouse automation); (c) development of a framework guideline for Logistics Parks to streamline approval processes, facilitate investments and allow optimal utilization.

5.1.3 Improvement in Inventory management through improvements in reliability of supply chains by promotion of digitalisation to facilitate tracking, improved predictability and visibility of replenishment orders, improvements in speed of transit by adoption of smarter enforcement, and de-risking of supply chains through resilient infrastructure planning and implementation.

5.1.4 Improved efficiency in regulatory matters and order processing is envisaged to facilitate development of a regulatory and policy environment wherein government policies would not act as an impediment to infrastructure development in the country, and also to promote and support investments by all stakeholders including the private sector. This is intended to be achieved by (a) facilitating simplification of regulatory processes, promoting standardization and digitalization for greater integration and inter-operability, (b) easing interface between industry and government, (c) facilitating addressing of gaps in the existing policies, liability regimes, etc., and (d) promoting a robust ecosystem of innovative digital solutions, development of digital solutions, integrating logistics related digital systems through a unified digital platform.

5.2 Logistics Performance Index (LPI): To improve India’s ranking in LPI, facilitate identification and resolution of issues related to logistics capacity, last-mile connectivity gaps, ground level operation and infrastructure. In addition, develop a compendium of reforms, in consultation with stakeholders and based on periodic reviews, to act upon, for improvement of India’s ranking,

5.3 Development of data driven systems for monitoring various components of the logistics ecosystem to enable higher logistics efficiency, is envisaged through (a) the PM GatiShakti National Master Plan; (b) the Unified Logistics Interface Platform (ULIP); (c) the ‘Logistics Ease Across Different States’ (LEADS) study for monitoring logistics performance across states, and; (d) development of a robust standardized methodology for calculating logistics costs and institutionalizing regular national assessment of logistic costs in the economy.

6. Monitoring and Coordination

6.1 PM GatiShakti establishes an institutional framework to bring into action the whole of government approach for implementing its vision. Accordingly, the apex body – an Empowered Group of Secretaries (EGoS) has been setup and mandated inter alia, to review and monitor implementation of the National Master Plan, adopt framework and norms for undertaking any amendments in the NMP, align various initiatives on development of a common integrated portal which serves the needs of all stakeholders, issue appropriate directions for achieving the objectives for compliance to guiding principles of the NMP. The Network Planning Group (NPG) with heads of network planning divisions of infrastructure ministries for unified planning and integration of the proposals has been constituted, which will be supported by a Technical Support Unit (TSU).

6.2 Utilize the existing institutional framework i.e., Empowered Group of Secretaries (EGoS) created under the PM GatiShakti National Master Plan for monitoring implementation of the policy and action plan. EGoS will set up a “Services Improvement Group” (SIG) on the pattern of Network Planning Group (NPG) for monitoring of improvements pertaining to processes, regulatory and digital improvements in logistics sector. The SIG will comprise of officers nominated from concerned Ministries/Departments in addition to the relevant members of the Network Planning Group (NPG) such as Ministry of Housing and Urban Affairs (MOHUA), Department of Revenue, Department of Commerce.

7. Implementation of the National Logistics Policy

7.1 The Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP). The interventions under the CLAP are divided into specific key action areas, including (i) Integrated Digital Logistics Systems, (ii) Standardization of physical assets & benchmarking service quality standards, (iii) Logistics Human Resources Development and Capacity Building, (iv) State Engagement, (v) EXIM (Export-Import) Logistics, (vi) Service Improvement framework, (vii) Sectoral Plan for Efficient Logistics and (viii) Facilitation of Development of Logistics Parks. A detailed overview is at Appendix-A.

7.2 Effective implementation of interventions would be achieved by framing and vetting of the planned interventions by concerned line ministries and stakeholders.

7.3 Financial and fiscal incentives, by way of review of GST rates, and regulatory interventions to promote multimodal transportation, optimal modal mix, higher throughputs, energy efficiency through adoption of technologies, etc. would be developed through the relevant line ministries and will be invoked when feasible and necessary. In areas where immediate mandatory interventions are not advisable, methods such as development of comprehensive recommendatory guidelines, awards to promote best practices, certification of excellence based on pre-decided benchmarks, and digital systems, will be adopted.

7.4 Given the dynamic nature of this sector, the revised set of priorities and rules/processes/procedures adopted during the course of implementation of the Policy would be reviewed and suitably taken into account.

Appendix-A

Comprehensive Logistics Action Plan (CLAP)

The Comprehensive Logistics Action Plan (CLAP) under the National Logistics Policy 2022 is divided into specific key action areas. Details are given below.

1: Integrated Digital Logistics Systems:

1.1 The Problem

Digital systems and interfaces of line ministries/ departments exist in silos, no common interface for data sharing and use, and no digital tool to provide a means for performance monitoring and network planning, which utilizes multiple data streams.

1.2 Proposed Solution

Develop a system of unified logistics interface to link multiple data sources and develop cross sectoral use cases for logistics stakeholders.

1.3 Implementation, Monitoring and Feedback based Review

1.3.1 Action for Digital Integration across Ministries / Departments: Logistics Division, DPIIT to:

i. Engage different MSPs for development, operation, and maintenance of Unified Logistics Interface Platform (ULIP) – to integrate all logistics-related digital portals and IT solutions.

ii. Coordinate with concerned line ministries for data sharing.

iii. Soft Launch of the initiative in 6 (six) months

1.3.2 Action for Digital Gap Areas:

Logistics Division, DPIIT will arrange development of Proof of Concept (PoC) for cross sectoral use cases for logistics stakeholders to address gap areas including Secured Logistics Document Exchange (SLDE) platform (launch in 6 months), digital dashboard to improve container information and availability, Truck Visibility and Positioning Platform (TVPP), Electronic Logging Device (ELD), Import Clearance System for PGAs, Smart Road Enforcement app, etc.

1.4 Action by

Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Civil Aviation, Central Board of Indirect Taxes, Department of Revenue, Ministry of Finance, BISAG-N, Department of Telecommunications, Department of Food & Public Distribution, Department of Commerce, Logistics Division, DPIIT, Ministry of Commerce and Industry.

General list of digital/IT systems/ individual platforms is placed at Appendix – A1.

2: Standardization of physical assets and benchmarking of service quality standards:

2.1 The Problem

Lack of Standardization of physical assets and benchmarking of service quality standards used in logistics operations impedes inter-operability, predictability in service levels and efficient multi-modal logistics.

2.2 Proposed Solution

Enhance interoperability, minimize handling risks, undertake process optimization, and improve ease of doing business, through standardization of physical assets and benchmarking of service quality standards in logistics including transportation infrastructure (fixed and rolling), terminal handling, warehousing, temperature-controlled logistics, packaging, etc.

2.3 Implementation Roadmap and Monitoring

i. Logistics Division, DPIIT will in coordination with the relevant standard setting agencies (Bureau of Indian Standards, Institute of Packaging, Food Safety Standards Authority of India, Telecom Regulatory Authority of India, Telecommunications Standards Development Society, India (TSDSI), Telecommunications Engineering Centre (TEC), etc.) develop standards for physical assets (containers, trucks, warehousing including temperature-controlled storages; transportation, terminals, etc.), and service benchmarking (service levels and design standards for sustainable packaging) with due regard to existing international recommendations to ensure inter-operability across modes/asset classes, increase in containerization, reduction in logistics costs, improved logistics efficiency, etc. The necessary standards to be collated and compiled in 6 (six) months.

ii. To facilitate adoption, nodal ministries will devise light touch methods within 9 (nine) months including financial incentives, a system of grading, rating, and certification of excellence through awards for logistics service providers, etc., along with regulatory action, wherever necessary.

2.4 Impact Assessment and Feedback based review

Half yearly reports to be submitted to EGoS for review and suitable changes in standards to be made by relevant standard setting agencies in consultation with nodal Ministries/Departments.

2.5 Action by

Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Civil Aviation, Bureau of Indian Standards, Department of Food and Public Distribution, Logistics Division, DPIIT, Ministry of Commerce and Industry, Indian Institute of Packaging, Ministry of Commerce and Industry.

3: Logistics Human Resource Development and Capacity Building

3.1 The Problem

i. Insufficient courses and programmes in logistics and supply chain management in higher education, at graduate and post-graduate levels.

ii. Lack of skilled manpower.

iii. Inadequate system for job role identification, competency mapping, curriculum approval, quality audit, and use of technology.

iv. Inadequate capacity in relevant ministries and departments handling logistics related infrastructure or policy issues, at the central and state level, for better coordination, execution and implementation of projects, policies, and regulations.

3.2 Proposed Solution

Develop an overarching logistics human resource strategy and under its guiding principles, line ministries to develop action plans to address skill development related and internal capacity building challenges in the respective sector.

3.3 Implementation Roadmap and Monitoring

i. A study on gap assessment in job roles and existing skilling ecosystem may be undertaken by MSDE by constituting a Task force with a mandate to identify actions areas (requirement of new courses, programs for skilling and re-skilling, etc.). Spread of logistics sector training institutes across states may also be assessed.

ii. Based on stakeholder consultation, Logistics Sector-Skill Council (LSSC) ((under guidance of MSDE and Department of Higher Education) will pursue development of an overarching National Logistics Human Resource Strategy including mapping of each logistics sector job role to a nodal line Ministry/Department. The strategy will also provide a roadmap for promoting uniform presence of training institutes across the country. It may be developed within 6 months.

iii. Nodal line Ministries/Departments, in coordination with MSDE may pursue development of action plans within 9 (nine) months to address skill development related and internal capacity building challenges in the respective sector. KPIs, timelines and milestones to be specified in the action plan.

iv. (Department of Higher Education may identify 2-3 universities in each state to analyse the global scenario in terms of institutions and courses for capacity development. Mainstreaming logistics in higher education will be pursued by the Department of Higher Education/ Ministry of Skill Development and Entrepreneurship (MSDE), through inclusion of additional courses of logistics and supply chain at graduate and post graduate level. The courses may be developed within 6 (six) months.

v. Development of training programs for integrated capacity building and technical support unit under PM GatiShakti may be facilitated by the Capacity Building Commission in collaboration with concerned line Ministries for integrated capacity building and leveraging shared learnings across sectors. Online content/training programmes/courses may be hosted on the iGOT platform.

vi. Mandatory certificate courses with exams may be designed using IGoT platform for relevant levels in the state and central governments. In addition, online training courses pertaining to this PM GatiShakti and National logistics policy, also covering sensitization of country’s legal and financial systems, developed by Ministry/Department concerned may be uploaded on iGOT Karmayogi platform as per procedure. GatiShakti and NLP related course content is suggested to be added to training curriculum of government training institutes, under infrastructure ministries and other related ministries.

vii. Development of a Digital dashboard for tracking action taken under the logistics human resource strategy by concerned stakeholders to be pursued.

3.4 Impact Assessment and Feedback based review

i. LSSC (under guidance of MSDE) to conduct Annual State of Logistics Human Resource Survey for assessment of continuing skill gaps in the logistics sector (perception/data-based surveys involving user industry, logistics sector associations; ministries engaged in the PM GatiShakti NMP); employment in the sector, State Logistics Cells, internal capacities in ministries, impact of steps taken, etc.

ii. Modification in plan(s) to be done based on overall feedback.

3.5 Action by

Ministry of Skill Development and Entrepreneurship, Logistics Sector Skill Council, Department of Higher Education, Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Civil Aviation, Department of Food & Public Distribution, Capacity Building Commission, Logistics Division, DPIIT, Ministry of Commerce and Industry.

4: State Engagement:

4.1 The Problem

Lack of a system for continuous measurement of state-level logistics performance and provide support for improvement.

4.2 Proposed Solution

Provide support for development of state/city level logistics plans, set up institutional framework to take action at city/state level, measure and monitor action by states and rank them.

4.3 Implementation, Monitoring and Feedback based Review

i. State governments to pursue development of State / UT and City logistics plans/policy. Plans/policy may provide a roadmap for development of intermodal infrastructure, improvement in logistics services, processes and regulatory regime, digital systems and capacity, along with institutionalizing a system of monitoring user perspective (through a set of cross-sectoral KPIs and clearly defined timelines and milestones) to improve logistics planning, provide necessary inputs for PM GatiShakti NMP. These plans are expected to improve efficiency of city logistics while reducing congestion/pollution and creating opportunities for accelerated economic growth.

ii. The Logistics Division, DPIIT will conduct annual process of performance assessment of states through an indigenous Logistics Ease Across Different States (LEADS) index, along with handholding states/UTs in the development of their logistics ecosystems and provide a roadmap for improving logistics efficiency. This index is an indigenous data driven system, which practicality captures our country’s requirements.

iii. For monitoring changes in the logistics cost, Logistics Division in consultation with the stakeholders develop suitable framework for assessment of logistics cost at the national level. Also, based on the agreed framework conduct studies to assess the sectoral and overall logistics cost at National and sub-national levels on periodic basis.

iv. To promote healthy competition, spread information about the inter-state rankings and create awareness on importance of efficient logistics, an Information, Education and Communication strategy under LEADS may be developed, which may inter alia cover appointment of public relation agency for information dissemination, developing a system of grading, rating, certification and excellence (GRACE) of logistics assets and their comparing performance across states.

v. Future iterations of the scope of LEADS will recognize State / UT Governments for enabling holistic development of connectivity infrastructure through the PM GatiShakti.

4.4 Action by

State/UT Governments and City Administration, Logistics Division, DPIIT, Ministry of Commerce and Industry.

5. EXIM Logistics:

5.1 The Problem

i. Infrastructure challenges, including last mile connectivity gaps between key gateway ports and relatively high transport costs between ports and hinterland.

ii. Incomplete digitalization and procedural inefficiencies leading to suboptimal utilization and high cargo dwell time, inadequate legal and administrative mechanisms to drive transparency of freight charges and eliminate anti-competitive practices.

iii. Lack of effective coordination to expedite development of strategic trade corridors.

5.2 Proposed Solution

Addressing infrastructure and procedural gaps in India’s EXIM connectivity and create efficient and reliable logistics network, with transparent and streamlined cross-border trade facilitation, for improved trade competitiveness and greater integration of India with regional and global value chains.

5.3 Implementation, Monitoring and Feedback based Review

i. Logistics Division, DPIIT through the mandate of Working Group on Infrastructure under National Committee of Trade Facilitation (NCTF) will identify critical EXIM infrastructure related issues. This will be done through stakeholder’s consultations and a digital tool for monitoring operational performance of gateway infrastructure, assessments of procedural efficiency, etc.

ii. Based on the above, develop a National Trade Facilitation Action Plan (NTFAP), including mapping of issues to concerned line ministries / departments will be developed.

iii. Working Group through an independent agency will develop a digital dashboard for constant monitoring of resolution and identification of necessary reforms.

iv. Relevant issues emanating from the action plan will be taken up by the NPG/SIG to achieve the mandate of PM GatiShakti.

5.4 Action by

Central Board of Indirect Taxes, Department of Revenue, Ministry of Finance, Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Civil Aviation, Logistics Division, DPIIT, Ministry of Commerce and Industry.

6. Services Improvement Framework

6.1 The Problem

i. Improvements needed in customer facing regulatory regime including laws, policies, rules and procedures, associated documentation and approval processes.

ii. Complex processes, excessive documentation, fragmented regulatory environment and liability regimes across modes; lack of legislative framework for standard practices for digitalization, standardization.

6.2 Proposed Solution

Improving regulatory interface to enable seamlessness between sectors, promote standardization, formalization, inter-operability; eliminate fragmentation in documentation, formats, processes and liability regimes; reduce gaps in regulatory architecture.

6.3 Implementation, Monitoring and Feedback based Review

i. The Proposed mechanism for user interactions inter alia, will cover:

a. Existing institutional mechanism of SCOPE (Standing committee for promotion of export) and Inter-Ministerial committee (IMC) for Logistics.

b. Logistics Ease Across Different States (LEADS) survey.

c. Interactions with industry associations.

d. Interactions with ministries, states/UTs.

ii. It is proposed to form a Service Improvement Group (SIG), comprising of officers nominated from nodal ministries (MOHUA, CBIC, etc. and infrastructure ministries /departments notified as members of NPG) on lines of NPG. Unresolved user issues pertaining to services, documentation, processes, policy, etc. may be resolved through the SIG, along with identification of interventions for improving user interface (to promote inter-operability; eliminate fragmentation in documentation, formats, processes and liability regimes; reduce gaps in regulatory architecture).

iii. Concerned line Ministries/Departments may develop digital system for registering and monitoring resolution of user industry issues / grievances. These systems may have pre-defined service-level agreements/SOPs indicating inter-ministerial and inter-departmental hierarchy for escalation and resolving issues, action parameters for evaluating efficiency and time taken in issue resolution/management.

iv. For harmonization of legal requirements and streamline liability regime and dispute resolution in the logistics sector, the Logistics Division, DPIIT will constitute an Inter-Ministerial Drafting Committee to assess the need for legislative changes in the sector. The mandate of the Inter-Ministerial Drafting Committee will inter alia, include analysis of existing laws to explore specific gaps or lack of coverage, identify appropriate administrative or legislative measures needed to close the gap to achieve the following:

a. Simplified documentation with common terminology wherever possible in existing carriage acts.

b. Regulatory provisions for transparency in freight charges, other fees and levies to ensure fair and reasonable competition, in consultation with relevant agencies, and using existing regulatory architecture, wherever possible.

c. Guidelines for development of digital systems and maintaining digital data across ministries / departments in a standardized manner, so that the technical architecture of different digital systems are compatible and enable integrations and data sharing.

6.4 Action by

Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Civil Aviation, Ministry of Power, Department of Telecommunications, MNRE, Ministry of Power, Department of Telecommunications, Ministry of New and Renewable Energy (MNRE), Central Board of Indirect Taxes, Department of Revenue, Ministry of Finance, Centre for Trade and Investment Law, Indian Institute of Foreign Trade.

7: Sectoral Plans for Efficient Logistics (SPEL)

7.1 The Problem:

While individual ministries have their respective overall long-term infrastructure plans (like National Rail plan, Bharatmala, Sagarmala, etc.), a sharp focus on addressing demand and supply side logistics issues and priorities (processes, digital improvements, policies regulatory framework and capacity building) is needed to improve efficiency.

7.2 Proposed Solution:

Sectoral Plans for Efficient Logistics (SPEL) aligned with PM GatiShakti, will be developed for each sector with underlying philosophies of inter-operability, resiliency, sustainability, and innovation. Specifically, SPEL would (i) address logistics issues pertaining to infrastructure, processes, digital improvements, policies and regulatory reforms, and capacity building for better workforce, and ii) prioritize cross-sectoral cooperation to complement and not duplicate efforts and focus on optimization of modal mix.

7.3 Implementation Roadmap and Monitoring

i. Each line ministry may pursue development of Sectoral Plans for Efficient Logistics (SPEL) in consultation with user industry, private stakeholders, academia and other ministries, within 6 months.

ii. Promoting innovation in the sector and enabling a resilient and sustainable logistics ecosystem, shall be the underlying philosophies for each SPEL.

iii. SPEL may inter alia include action items for moving towards optimum modal mix (estimates for which shall be obtained through independent studies); address specific requirements of user sectors.

iv. Various sectors will be assessed from the point of view of logistics cost-competitiveness with global benchmarks/international bets practices to identify sector-specific interventions that would help reduce logistics costs. Specific interventions will be identified first for sectors with high logistics cost as a part of overall production cost, with the objective of enhancing their cost competitiveness. While adopting global best practices and fixing targets and timelines, practicality and our country’s requirements may be kept in view.

v. Logistics issues on supply and demand side may be identified and their resolution monitored through a digital system. This mechanism may also be useful for necessary feedback / inputs for identification of critical multimodal connectivity projects for the PM GatiShakti NMP.

vi. Milestones, timelines, KPIs for different action items may be defined by line ministries and monitored through a digital dashboard.

vii. SPEL of Ministries/Departments may be put up for approval of EGoS.

7.4 Parameters for Assessment and Review

i. Line ministries may institutionalize a system of annual independent sectoral Ease of Logistics Surveys (perception / objective data based). Survey to assess on-ground impact of reforms /interventions.

ii. Logistics Division, DPIIT through an independent agency(s) may conduct Total Transport Studies every two years for estimation of modal share for each transport mode and right modal mix and develop a digital system for constant monitoring of modal mix.

iii. Relevant objective feedback on cost, congestion, modal mix, redressal of user issues, etc. from integrated digital systems for logistics also to be collated by line ministries.

iv. Impact assessment and modifications / recalibration of the plans (SPEL) may be done by line Ministry /Department – based on all obtained feedback.

v. Each line Ministry /Department may submit an annual report of sectoral plans, their impact and planned next steps to be presented to EGoS.

7.5 Action by:

Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Civil Aviation, M/o Food Processing Industries, M/o Power, M/o Chemicals and Fertilizers, Department of Telecommunications, Ministry of Coal, Ministry of Steel, Ministry of Petroleum and Natural Gas, Ministry of Housing and Urban Affairs, Ministry of Power.

General explanation/information and scope of Sectoral Plans for Efficient Logistics (SPEL) is placed a Appendix – A2.

8: Facilitation of development of Logistics Parks:

8.1 The Problem

i. Inadequate availability of logistics parks due to suboptimal use and lack of capacity sharing, high business risk due to low agility in operations, lack of integrated master planning, etc.

ii. Challenges in developments of new Logistics Parks due to complex regulatory regime, fragmented clearance, absence of comprehensive and harmonized system standards and approval processes.

iii. Lack of integration in the existing logistics network / connectivity nodes, impeding operational efficiency in handling systems, multimodal connectivity to economic zones.

8.2 Proposed Solution

Logistics parks (eg. Multi Modal Logistics Parks, Air Freight Stations, Inland Container Depots, Container Freight Stations, cargo terminals, etc.) are hubs for intermediary activities (storage, handling, value addition, inter-modal transfers, etc.) in the supply chain connected by a transportation network. It is envisaged to take following steps to facilitate development of logistics parks:

i. Draft framework guidelines to facilitate development of Logistics Parks in the country with focus on encouraging private investment.

ii. Create a network of logistics parks by mapping them on the PM GatiShakti NMP, for enhanced visibility, improved logistics efficiency, optimum utilisation and connectivity.

8.3 Implementation, Monitoring and Feedback based Review

i. Logistics Division, DPIIT in consultation with concerned line Ministries /Departments, domain experts and other stakeholders, will develop framework guidelines for development of Logistics Parks within 2 (two) months.

ii. Framework guidelines for development of Logistics Parks will be put up to EGOS for approval.

iii. Logistics Parks will be mapped on the PM GatiShakti NMP, to increase visibility, optimize network use, greater connectivity and enable holistic planning for removing imbalanced distribution of logistics services and traffic across geographies.

8.4 Action by

Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Civil Aviation, Central Board of Indirect Taxes, Department of Revenue, Ministry of Finance, Logistics Division, DPIIT, Ministry of Commerce and Industry.

General information, scope and mandate of Framework guidelines for Logistics Parks and Terminals is placed at Appendix – A3.

Appendix – A1

General list of digital/IT systems/ individual platforms include:

I. Unified Interface Logistics Platform (ULIP) and use cases in gap areas is a common data stack platform (ULIP) for integrating (through APIs) all relevant digital/IT systems/individual platforms, along with use cases in critical gap areas such as:

i. Secured Logistics Document Exchange (SLDE) platform to replace physical exchange of documents in domestic and EXIM trade and facilitate secure, seamless, digital transfer of various trade-related negotiable and other documents.

ii. A digital dashboard to improve container availability in the country by reducing turnaround time through effective monitoring of container dwell times at CFSs, ICDs, ports, etc.

iii. Import Clearance System for PGAs based on risk management principles to allow officers to perform all the background/internal activities online, leading up to issuance of NOC.

iv. GHG Calculator to calculate carbon emission data per shipment basis on the mode of transport.

v. Comparative Freight Index and framework for comparing freights between road and rail.

vi. Promote development and adoption of Smart Road Enforcement app for states and central enforcement agencies using risk management principles to help minimize the physical inspection of offences and reduce compliance burden and delays on road.

Other digital initiatives including visibility and track-and-trace for trucks, electronic proof of delivery, a digital address system for each destination across the country to reduce delays in last mile delivery, etc.

Appendix – A2

General explanation/information and scope of Sectoral Plans for Efficient Logistics (SPEL) includes:

i. Strategy for development of rolling and floating stock infra inter alia covering steps to promote local manufacturing of containers and use of technology and innovations in rolling and floating stock design, material handling systems (like warehouse automation, robotic process automation, etc.), pricing strategy, production plans (including increasing scope for capacity sharing), suite of digital solutions to track and trace, reduce empty trips, etc.

ii. Digital system for monitoring transportation throughput in each sector, capturing data streams for evaluation and comparison of congestion and costs across modes, etc. (GPS / RFID with command-and-control centres, etc.).

iii. Strategy for integration with other modes to avoid duplication, provide end-to-end connectivity. Promote intermodal shift from road to rail by identifying ODs on which (Ro-Ro) movement is technically and commercially viable. Digital tools for identification of most competitive freight rates across OD pairs, promote sustainable modes of transportation by developing GHG emissions calculator.

iv. Action items to improve regulatory interface between sectors, reduce gaps in regulatory architecture, promote standardization, formalization, inter-operability; eliminate fragmentation in documentation, formats, processes and liability regime.

v. For supply chain of individual demand side logistics sectors, action items for connectivity requirements with relevant production and consumption clusters and aggregation centres with focus on sectoral priorities. Focus needs to be on promoting sustainability in the supply chain through use of renewable power, provision of recycling units, sustainable packaging, waste flow management and material flow optimization, based on global best practices.

vi. Include in sectoral plans for MoR, MoRTH and MoPSW a compendium on safe, efficient and sustainable logistics related to dangerous goods covering the aspects of legal and statutory compliance requirements, standards available, standard operating procedures, guidelines, best practices and case examples, management systems, personnel and skills required etc. This will help as a reference document for the relevant agencies and stakeholders in public and private agencies including the industry, managers and supervisors responsible to ensure provisioning of appropriate infrastructure and its safe operations & maintenance. This will also help standard setting organisations such as BIS to develop new or additional standards wherever required.

vii. Strategy for improving resilience of logistics supply chain, measures to promote sustainability and innovation and capacity building and empowerment of nodal officers.

viii. Resiliency planning to be based on pre-identified conflicts (such as accidents, emergencies, hostilities, trade disruptions, etc.), essential supply chains (for food, fuel, oxygen, coal, etc.), critical cargo, resiliency gaps, etc., along with roadmap for maintenance of buffer stock, identification of alternate sources, development of strategic reserves of key commodities, etc.

ix. To improve sustainability across logistics sector, plans to include measures to promote adoption, address issues of energy efficiency and environmental footprint and circular economy through a system of financial incentives, regulatory interventions, where necessary, etc.

x. Provisions for development of efficient storage and handling facilities for commodities such as silo-based compact vertical storage of bulk grains, pulses, etc. strategically located near farms, at key cross-docking points such as ports, airports and rail terminals.

xi. To promote the innovation/start-up ecosystem in the logistics sector, Invest India, DPIIT to develop and institutionalize a system of identification of start-up ideas, organizing contests, provide incubation / acceleration support, start-up awards, etc. to promote start-ups in the logistics sector.

II. In addition to general items, specific items inter alia to be covered in the Sectoral Plans for Efficient Logistics (SPEL):

i. Ministry of Railways may lay down action items for improving service reliability through time-tabled / scheduled freight services and competitiveness of rail freight services; reducing cost of rail-based supply chains through steps such as Rail Side Logistics Parks developed in a collaborative manner in line with PM GatiShakti principles and delays in granting approvals for and setting up private terminals on railway network; dedicated freight corridors, enhancing coordinated logistics planning along with city / state governments, end-to-end solutions including first and last mile connectivity, complete transparency, streamlining processes.

ii. Ministry of Road Transport and Highways may lay down action items for development of digital systems for track and trace and complete visibility of cargo, reducing compliance burden on roads, and measure reliability of truck movement, strategy to address truck drivers’ shortage including pit-stops, social security, digital system to monitor work/rest hours.

iii. Ministry of Ports, Shipping and Waterways (MoPSW) may lay down strategies that promote evacuation by other modes, smart and risk-based system for enforcement (import clearance system for PGAs / online system for laboratory testing process flow), holding capacity at ICDs / CFS clusters and systems for trade buffering, improve ship turnaround time and reduce dwell time, promotion of modal shift to waterways (through dedicated coastal shipping and inland waterway freight corridors in line with PM GatiShakti objectives). Facilitative financing schemes/programs for vessels, concessions on vessel and cargo related charges, and dedicated coastal freight corridors including last mile rail and road connectivity to be developed.

iv. Ministry of Civil Aviation (MoCA) may lay down strategies that support development of Air Freight Stations (AFS) co-located with facilities like Multimodal Logistics Parks (MMLPs); strategy to utilize unused airstrips for air freight with a specific focus on storage, promote drone delivery, etc.; institutionalise robust mechanism (oversight committee) to monitor service level performance of air cargo terminals.

v. Ministry of Petroleum and Natural Gas (MoPNG) may lay down principles and norms for identifying streams of traffic to be shifted from other modes to pipelines, strategy and action plan for the targeted modal shift; technical guidelines for Right of Way (RoW) approvals, development of pipeline / infrastructure in a coordinated manner with other linear transportation networks (running parallel to / or under railway tracks/ highways, etc.).

vi. Ministry of Communications & IT may lay down strategy for utilising the India post infrastructure and human resources for aggregation and disaggregation centres, first mile and last-mile connectivity.

vii. Central Board of Indirect Taxes and Customs may lay down plan for implementing smart enforcement, import clearance system, policy for promoting investment in logistics parks (ICDs/CFS/AFS, etc.), supporting development of digital data-based systems for efficient logistics and integration of NCTF/NTFAP agenda and addressing the issue of taxation in multimodal transport.

Appendix – A3

General information, scope and mandate of Framework Guidelines for Logistics Parks includes:

(i) Logistics Parks (eg. Multi Modal Logistics Parks, Air Freight Stations, Inland Container Depots, Container Freight Stations, cargo terminals, etc.) are nodes on the transportation network where cargo can ‘dwell’ to fulfil one or several functions such as aggregation, storage, transshipment, distribution, and value-added services. Hence, Logistics Parks are an integral part of the logistics network.

(ii) Framework Guidelines for development of Logistics Parks are integral for enhancing multimodal connectivity envisioned under the PM GatiShakti. It is envisaged that the guidelines will promote investments in greenfield Logistics Parks including MMLPs, ICDs, CFS, AFS, etc. through Model Concession Agreements specifically to facilitate PPP; robust institutional mechanism for coordinated development (with multiple state and government departments) and monitoring; creation of a common taxonomy / nomenclature, definitions, size requirement for all nodes and other technical details; develop SOPs and digitally enabled process for approvals of Logistics Parks, etc. In addition, focus will be to facilitate optimal utilization of brownfield Logistics Parks by encouraging alternative use at the same facilities, developing standards to drive interoperability, etc.

(iii) These guidelines will aim to enable private and public investments in logistics parks, promote and empower efficiency, agility, resilience and cost effectiveness in operations through optimal use of infrastructure and to create information transparency.

To increase visibility, optimize network use, and enable holistic planning for removing imbalanced distribution of logistics services and traffic across geographies, a network of logistics parks will be created by mapping these facilities on the PM GatiShakti NMP.

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