UP drafting logistics policy, incentives included
, ET Bureau|
Updated: Jan 06, 2018, 12.00 AM IST
Mumbai : The Uttar Pradesh government is for the first time, drafting its own logistics policy, as increased industrial activity, economic growth and recent policy decisions by the government give an unprecedented growth to the sector.
"With both the eastern and the western freight corridors and several industrial corridors passing through Uttar Pradesh, we are at a good position to take advantage of this logistics revolution which we expect to be seen in the next two years," Rajive Kumar, the chief secretary of Uttar Pradesh, told ET recently.
The policy will envisage the setting up of at least five industrial parks across the state, the smallest one with an investment of Rs 200 crore, said a top official in the UP government.
The policy will also include various incentives for logistics players if they invest in this sector in the state. This is among 10-12 other new policies--on pharma, electric vehicles, data centres, dairy, agriculture and defense etc--that will be discussed in a meeting of the state government officials on January 3.
Andhra Pradesh and Telangana are two other states said to be drafting their own logistics policies. A top official said the UP government aims to have a concrete framework of the logistics policy in two weeks.
UP is India's most populous state, accounting for 16.5% of the country's population. It is India's third largest economic contributor, contributing 8.5% to its GDP. A logistics policy is welcome here as the state administration has never been too friendly to players in the space, said industry executives.
Transporters have been traditionally harrassed at highway checkposts and investment proposals have been caught in the web of red tape. The UP government was also among the first to implement the E-way bill (a digital permit and tracker of cargo transportation the country) in what is seen as its most complicated form.
The logistics sector is seen to be on the cusp of growth, thanks to the goods and services tax introduced earlier this year and the recently conferred infrastructure status to the sector. The two will change the structure of warehousing in the country leading companies to bigger, better warehouses. It will also make borrowing easier in the sector.
The UP government has been in talks with Container Corp of India to set up a logistics park in Bhaupur, near Kanpur. The Uttar Pradesh State Industrial Development Corporation is in the process of acquiring 100 acres of land for the same. The smallest of such hubs, it will be built at an estimated cost of Rs 200 crore said one of the people cited above. Similar such hubs are envisaged to be built along the Delhi-Mumbai Industrial Corridor (DMIC) and the Amritsar-Kolkata Industrial Corridor (AKIC). DMIC is one of the world's largest infrastructure projects with an estimated investment of US$90 billion and is planned as a high-tech industrial zone spread across six states across the 1,500 km long western dedicated freight corridor.The plan entails 24 industrial regions, eight smart cities, two airports, five power projects, two mass rapid transit systems, and two logistical hubs.
The AKIC is a project aimed at developing an industrial zome covering seven Indian states.
"With both the eastern and the western freight corridors and several industrial corridors passing through Uttar Pradesh, we are at a good position to take advantage of this logistics revolution which we expect to be seen in the next two years," Rajive Kumar, the chief secretary of Uttar Pradesh, told ET recently.
The policy will envisage the setting up of at least five industrial parks across the state, the smallest one with an investment of Rs 200 crore, said a top official in the UP government.
The policy will also include various incentives for logistics players if they invest in this sector in the state. This is among 10-12 other new policies--on pharma, electric vehicles, data centres, dairy, agriculture and defense etc--that will be discussed in a meeting of the state government officials on January 3.
Andhra Pradesh and Telangana are two other states said to be drafting their own logistics policies. A top official said the UP government aims to have a concrete framework of the logistics policy in two weeks.
UP is India's most populous state, accounting for 16.5% of the country's population. It is India's third largest economic contributor, contributing 8.5% to its GDP. A logistics policy is welcome here as the state administration has never been too friendly to players in the space, said industry executives.
Transporters have been traditionally harrassed at highway checkposts and investment proposals have been caught in the web of red tape. The UP government was also among the first to implement the E-way bill (a digital permit and tracker of cargo transportation the country) in what is seen as its most complicated form.
The logistics sector is seen to be on the cusp of growth, thanks to the goods and services tax introduced earlier this year and the recently conferred infrastructure status to the sector. The two will change the structure of warehousing in the country leading companies to bigger, better warehouses. It will also make borrowing easier in the sector.
The UP government has been in talks with Container Corp of India to set up a logistics park in Bhaupur, near Kanpur. The Uttar Pradesh State Industrial Development Corporation is in the process of acquiring 100 acres of land for the same. The smallest of such hubs, it will be built at an estimated cost of Rs 200 crore said one of the people cited above. Similar such hubs are envisaged to be built along the Delhi-Mumbai Industrial Corridor (DMIC) and the Amritsar-Kolkata Industrial Corridor (AKIC). DMIC is one of the world's largest infrastructure projects with an estimated investment of US$90 billion and is planned as a high-tech industrial zone spread across six states across the 1,500 km long western dedicated freight corridor.The plan entails 24 industrial regions, eight smart cities, two airports, five power projects, two mass rapid transit systems, and two logistical hubs.
The AKIC is a project aimed at developing an industrial zome covering seven Indian states.
