Centre, CII ink MoU for development of logistics sector

To enhance import and export performance, the Centre has entrusted the task of integrated development of the logistics sector to the Department of Commerce.

It is believed that improved logistics will up ways of doing business and be a game changer in the creation of billions of job.

Prime Minister Narendra Modi has issued directions for a division for logistics in the government.

To fulfill this objective, a Memorandum of Understanding (MoU) was signed on Tuesday with Confederation of Indian Industry (CII) in the presence of Commerce and Industry Minister Suresh Prabhu here.

Prabhu congratulated the Logistics Division of the DoC and CII for this initiative and asked them to work together for taking the country's logistics sector to global levels, both in terms of efficiency and cost.

"The logistic division will work through digital platforms. The UAE will work with us on it," Prabhu said.

The Centre has decided to reduce the logistics cost from current 14 percent of GDP to less than 10 percent by 2022.

Prabhu has given a roadmap for modernizing the logistics sector in India and to bring it at par with the best across the globe.

The road map is as follows:

• To establish a logistics working group with representatives from the DoC and industry to examine issues related to logistics and recommend solutions

• To foster focused engagement with the industry

• To collaborate with the concerned agencies, including state governments and other related agencies

• To undertake mutually agreed focused studies on logistics

• To promote government's policies on logistics

For this purpose, a concerted effort in collaboration with central ministries and state governments has been initiated for simplifying the regulatory processes in both domestic and EXIM logistics.

The logistics division will be headed by a Special Secretary of the DoC. It is working on a comprehensive action plan to reduce the cost of EXIM and domestic logistics in the country by making it more efficient through easing of processes, induction of information technology and co-ordinated enhancement of logistics infrastructure in the country.

The government has recently granted infrastructure status to a number of logistics activities which shall enable them to avail cheaper and long term commercial loans.

Work has also been initiated on an integrated logistics portal that will act as a transactional e-marketplace connecting buyers with logistics service providers with all the Government agencies such as Customs, PGAs, Port Community Systems, Sea and Air Port terminals, Shipping lines, Railways etc.

In order to establish linkages with government agencies, industry and academia for developing a detailed action plan, the logistics division has planned to enter into formal partnership with all the stakeholders.