Govt notifies logistics policy, infra ministries to devise plans in 6 mths

PM GatiShakti and will address logistics issues pertaining to infrastructure, processes, digital improvements, policies and regulatory reforms, and capacity building for better workforce

Key infrastructure ministries such as rail, highways, ports, steel, among others, will have to prepare sector-specific plans to increase logistics efficiency in consultation with various stakeholders within six months, according to the national logistics policy (NLP) notified by the Department for Promotion of Industry and Internal Trade on Thursday.

For instance, the Ministry of Road Transport and Highways can lay down an action plan to develop digital systems to trace and complete visibility of cargo, reduce compliance burden on roads, and measure reliability of truck movement, strategise to address truck driver shortage and their social security, digital system to monitor work and rest hours.

The Sectoral Plans for Efficient Logistics will be aligned with PM GatiShakti and address logistics issues pertaining to infrastructure, processes, digital improvements, policies and regulatory reforms, and capacity building for better workforce, and focus on optimisation of modal mix, the policy that was launched by Prime Minister Narendra Modi earlier this month said.

Currently, individual ministries have their respective overall long-term infrastructure plans — National Rail Plan, Bharatmala, Sagarmala, among others. However, the government felt that digital improvements, policies, regulatory framework, and capacity building were needed to improve efficiency.

The policy has also called for integration of all logistics-related digital portals and information technology solutions of key infrastructure ministries, Department of Revenue, among others. The soft launch of the initiative, known as Unified Logistics Interface Platform (ULIP) will have to be facilitated within six months.

Right now, the digital systems of line ministries exist in silos, with no common interface for data sharing and no digital tool to provide a means for performance monitoring and network planning.

ULIP aims to address this issue through data integration.

According to the policy, financial and fiscal incentives, through review of goods and services tax rates, and regulatory interventions to promote multimodal transportation, optimal modal mix, energy efficiency through adoption of technologies, etc will be developed through relevant line ministries and will be invoked when feasible and necessary.

Arindam Guha, partner, Deloitte, said that the first and last-mile connectivity is one of the key factors that will determine the success of this policy.

“Since this is likely to be under the jurisdiction of states and even cities, the Centre will have to pay special attention to how to incentivise them financially or otherwise to do their bit,” observed Guha.

Some states like Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Rajasthan, Telangana, and Uttar Pradesh have already framed their logistics policy. 

Logistics policies of 13 states are still in draft stage.

“The focus of NLP is clearly on implementation as is evident from the various time-bound action plans which are a part of the policy. With different ministries being at different levels of maturity, the Empowered Group of Secretaries will have to put in place a watertight mechanism for monitoring progress and coordinated implementation,” added Guha. 

What’s new

• Ministry of Road Transport & Highways can develop digital systems to trace and complete visibility of cargo, reduce compliance burden on roads, and make strategy to address truck drivers’ shortage, social security, among others 
• The Sectoral Plans for Efficient Logistics (SPEL) will be aligned with PM GatiShakti 
• SPEL will address issues related to infrastructure, policies, regulatory reforms, etc