BY STATES (STATES POLICIES)

By States

Gujarat

Gujarat has almost 5% of the state population and contributes 8.5% to the GDP of the country. In last decade, state witnessed a growth of 10% in GDP to reach a level of USD243 billion by 2019-20. State handles almost 18% of the India’s industrial output and ranked 1st in terms of investment committee. Ports in the state handle almost 40% of the port cargo and contribute 23% to the total exports from the country. Gujarat has been ranked 1st in both 2018 and 2019 LEADS reports.

State has been further improving on the logistics performance through following initiatives:

  1. Ports such as Mundra, Kandla and Pipavav are being connected with the Western DFC and aimed to be connected by December 2021.
  2. G-RIDE (Gujarat Rail Infrastructure Development Ltd), a joint venture between Ministry of Railways and Govt of Gujarat, is in process to linking major industrial hubs with Indian Railway Network on PPP mode.
  3. Gujarat is developing new Dholera city and has started with the process to construct a 6-lane highway between Ahmedabad and Dholera. The road project is expected to be completed in 2 years.
  4. Gujarat has inaugurated India’s first Ro-Ro ferry service that has reduced travel distance from 360kms to 31 kms and travel time from 8 hours to 1 hour. With the success of this model, Gujarat is aiming to start more such Ro-Ro services to make movement of trucks and cars more efficient.
  5. Under industrial policy of the State, Gujarat provides incentives for development of the industrial infrastructure and logistics parks.
  6. Under Port Policy, State is aiming privatization of existing ports, captive jetties by industries and privatization of services. Recently, GMB has announced policy on ‘Unlocking value in existing port infrastructure by allowing existing captive jetty holders to handle third – party cargo and opportunity for new players.
  7. Under Agro Policy, Gujarat provides incentives for development of Cold Chain processing units, Primary Processing and Collection centres and freight subsidy (Air and Sea).
  8. In order to boost exports and trade, Gujarat is in process of formulating first of its kind Integrated Logistics and Logistics Parks Policy. Aligned with the vision and objectives of National Logistics Policy (draft) which will also to promote integrated development within logistic sector by
    1. Driving development of Multi Modal Logistics Parks (MMLPs)
    2. Last mile connectivity of logistic park
    3. Reduce logistics cost and promote logistics efficiency
    4. Promoting green logistics
    5. Promoting standardization in the logistics sector etc.

State Presentation:

pdf 2018Presentation on Logistics Scenario

Karnataka

Karnataka is known to be a leading destination for investment in India. The state has a GSDP of $230 billion, which is almost the same as the size of Vietnam and has the 3rd highest FDI among all states. It holds the 1st position in total exports among all Indian states and the 4th largest technology cluster in the world. In terms of value of trade handled, Karnataka has the 2nd largest Inland Container Depot (ICD) in India. It also hosts 3 ICDs and has 6 upcoming ICDs. Bengaluru is also the 3rd largest logistics hub in India. There are 2 Container Freight Stations (CFS) in Bengaluru, 2 Air Freight Stations (AFS) in Bengaluru and Mangalore and one AFS upcoming in Hubbali Airport.

Government of Karnataka continues to make major developments in the logistics sector. It has created a dedicated Logistics Division, to be handled by Visveswaraya Trade Promotion Centre which is the state nodal agency for export promotion of Karnataka. The state has also formulated Industrial Policy 2020-2025 that identifies Logistics as a key focus sector and offers several incentives for development of the sector. Some of the infrastructure interventions taken by the Government of Karnataka across the state includes:

Physical Interventions

Dharwad

  1. Air cargo terminal at Hubballi airport
  2. MMLP at Anchatgeri

Mangalore

  1. Air Freight Station at Mangalore Airport
  2. Coastal berths at New Mangalore Port Trust

Mysuru

  1. ICD at Kadakola by CONCOR
  2. AFS at Mysuru Airport
  3. Truck Terminal

Mysuru

  1. ICD at Kadakola by CONCOR
  2. AFS at Mysuru Airport
  3. Truck Terminal

Uttara Kannada

  1. Coastal berths at Karwar Port

Ballari

  1. Truck Terminal at Hospet

Tumakuru

  1. Industrial Node under Chennai
  2. Bengaluru Industrial Corridor

Bengaluru

  1. Peripheral Ring Road
  2. Suburban Railway Network
  3. Expansion of Metro Rail
  4. Private ICD at Hoskote
  5. MMLP at Dabaspet

Non-physical interventions

Policy & Regulatory Interventions:

  1. Fast track facilitation of clearances for logistics sector projects
  2. Parking Policy for Bengaluru to streamline development of truck terminals, time based parking options etc.

Institutional Interventions:

  1. Establishment of PMU for identifying, monitoring, reviewing logistics sector projects
  2. GoK has nominated Additional Chief Secretary Commerce Industries Dept as nodal officer for development of logistics sector

Skill Development Initiatives:

  1. Establishment of Logistics Academies in 3 districts on PPP with Government support
  2. Truck Driver Training Program for addressing shortage of truck drivers

Stakeholder Engagements:

  1. Constitution of Vision Group comprising industry leaders to guide Govt
  2. Enhanced engagement with industry associations, BIS, Govt of India institutions, etc.

State Presentation:

pdf 2018Karnataka

Madhya Pradesh

Madhya Pradesh has been taking various initiatives in developing the industrial scenario of the state. 20,000 acres of land has been allottable as Industrial Land Banks along with availability of contiguous land parcels. The topography of the land is smooth and undulating with a low seismic risk zone. Land has been made available at affordable rates from ₹ 500 - 3,000 per sqm. The state also has abundant skilled manpower churning out over 2 lakh technical professionals each year. 24,000 MW power capacity has been installed with an exclusive DisCom for Mohasa Babai Industrial Area.

Measures have also been taken to ease the clearances processes related to logistics and has been reduced to 15 days as per provisions of the Public Service Guarantee Act. Madhya Pradesh is one of the few states in India that has a dedicated ‘Warehousing & Logistics Policy’. Some of the noteworthy policy related initiatives taken by the state include:

  1. Investment assistance to the tune of 15% (maximum of ₹15 Cr.) on Gross Fixed Capital Investment
  2. Infrastructure development assistance
  3. 100% reimbursement of stamp duty and registration fee on Instrument of Mortgage
  4. Electricity duty exemption for 5 to 10 years for new High Tension (HT) connection by a DISCOM
  5. Relaxed Floor Area Ratio (FAR) of 1:0.60 and maximum ground coverage of 60%
  6. Single Window Clearance system

The state has also identified two potential regions viz. Gwalior –Shivpuri region and Indore-Ujjain-Ratlam region, for the integrated logistics development in future. The regions have good prospective in terms of connectivity and future potential for development of markets.

State Presentation:

pdf 2018Madhya Pradesh

Tripura

Tripura is one of the North Eastern States of India with a total land of 10,500 sq.kms. Out of total area, almost 60% is hilly and leads to higher costs and time for creating quality infrastructure. State has a strategic location and is 150 kms from Dhaka and 500 kms away from Kolkata. State was top performer among the North East hilly states in LEADS index, 2019.

Tripura is following HIRA model of development which includes: Highway, Internet way, Railway and Airway led development. State is taking following initiatives to reduce logistics cost:

  1. Due to efforts of the State, National Highway 8 (NH8) is being extended upto Sabroom and upgraded into double lane road.
  2. Union Minister of Road Transport and Highways has laid foundation stone for development of nine national highways across the State. These NHs will cover a cumulative distance of around 262kms.
  3. State is also ensuring OFC network up to block levels and providing landline, mobile and broadband connectivity to the people of the State.
  4. State is housing 3rd international internet gateway after Mumbai and Chennai.
  5. State is also developing OFC route from Agartala to Cox’s Bazar to Chennai via submarine network in the sea.
  6. State is house of accelerated internet connectivity in the mountainous north eastern region and has also taken 10GB bandwidth from Bangladesh Submarine Cable Company.
  7. On the side of railways, broad gauge rail network is being built upto Sabroom.
  8. State is also aiming to facilitate access to Bangladesh’s Chittagong international seaport (at a distance of 75kms).
  9. Work is in progress to connect Agartala with Akhaura (~10kms) through bilateral protocol signed for running passenger and goods train between Northeast and Bangladesh.
  10. State is also coming up with its first multisector SEZ in Jalefa, Sabroom. The project will be spread across 16.35 acres and will have a total project cost of INR 60 crores. Tripura Industrial Development Corporation (TIDC) will be the implementing agency for the work and will aim to attract private sector investment in Rubber based Industries – Tires, Threads, Textile and Apparel Industries, Bamboo Industries, Agri-Food Processing Industries.
  11. State is also developing a logistics hub in Sabroom with a proposed area of around 85 acres and project cost of INR 120 crores. This area will house 12 warehouses, 10 acres for terminal yards, solid waste management plants etc.

State Presentation:

pdf 2018Logistic sector in Tripura

Uttar Pradesh

Uttar Pradesh is India’s third largest economy contributing 8% to GDP, ranking 2nd in ease of doing business reforms and is among the top 5 manufacturing and exporting states. UP has the largest consumer base in India with a total population of about 240 million, with almost 56% belonging to the working-class population.

In order to develop strong supply chain infrastructure, state has taken following initiatives:

  1. Western and Eastern Dedicated Freight Corridors (DFC) will pass through the state, with confluence points being at Greater Noida (Dadri).
  2. India’s first National Waterways, connecting Prayagraj to Haldia sea port (~1,620kms), with multimodal terminals being present/constructed at Varanasi and Sahibganj.
  3. Upcoming Jewar international Airport (GB Nagar) is one of the North India’s largest airport with a total spread area of 5,000 hectares with maintenance, repair and operations (MRO), cargo complex and Aerotropolis.
  4. Many upcoming road expressway projects such as elevated National Expressway (NE6) over Lucknow-Kanpur National Highway (NH 27), Purvanchal expressway connecting Lucknow with Ghazipur, Ganga Expressway connecting Meerut to Prayagraj via Bulandshehr and Hardoi etc
  5. State is also setting up terminal facilities for smooth transit such as Multi Modal Logistics Hub in Noida, Multi Modal Transport Hub in Boraki, India’s first upcoming freight village in Varanasi etc
  6. State is also backing its endeavour of improving infrastructure through Policy Initiatives and coming up with UP Warehousing and Logistics Policy (2018).
  7. State has also set up State Logistics Cell strengthened under chairmanship of ACS, Industries and State Logistics Coordination Committee set up under chairmanship of Chief Secretary.

State Presentation:

pdf 2018UP_Plan Enforcement