New transport body needs execution powers to make integrated logistics work

The Integrated Transport and Logistics Authority will coordinate between ministries, but experts warn that limited execution powers and overlapping responsibilities could weaken effectiveness

The setting up of an Integrated Transport and Logistics Authority (Itla) by the Indian government this month is an idea whose time had come several years ago. To be effective, however, it will need to have a stake in the execution of the projects, say experts and earlier reports.

 

That, however, does not seem to be on the cards as of now.  

 

All of these start from the premise that logistics cost in India consumes 14 percent of the GDP, one of the highest compared to many developed countries. “Based on studies, the country’s savings would be USD 50 billion if this cost comes down to 9 percent and would lower many products’ prices,” a Niti Aayog report from 2024 notes.

 

The government notification said Itla will serve as a specialised institutional mechanism for research, planning, project appraisal, monitoring, and impact assessment across transportation and logistics.

 

For instance, it will supplement the role of the Gati Shakti National Master Plan that was launched five years ago in October 2021. A government dataset shows the Plan has evaluated 396 infrastructure projects with a total estimated cost of about ₹18.66 trillion by August this year.

 

However, a senior government official, who declined to be named for this article, clarified that Itla will not sign off on projects, which will continue to be cleared by the respective ministries. But once set up, it will coordinate between diverse ministries such as roads and transport, railways, as well as ports, shipping and waterways under one roof.

 

“Itla will be a clearing house to sort through conflicting project proposals from various ministries,” the same official said. It will act as a sounding board for various ministries, considering the scale of infrastructure build-out is expected to be close to ₹100 trillion over the next decade.

 

The clipping of Itla's wings, however, has left experts less than enthusiastic about its role and functioning.

 

“The focus must be on translating integrated planning into coordinated execution across transport modes”, said Kushal Kumar Singh, partner, Deloitte India.

 

He argued that only if the Authority is able to align projects, monitor implementation, and improve investment efficiency will the competitiveness of India’s transport and logistics ecosystem improve.

 

The government seems to know this, too. Last year, the ministry of commerce and industry began its first-ever study to assess the country's logistics costs. The study was meant to offer a “comprehensive and scientifically derived estimate of logistics costs, using a hybrid methodology that combines secondary data with nationwide surveys”. This initiative, in turn, follows the mandate of the National Logistics Policy of 2022 to establish a uniform framework for measuring logistics costs and benchmarking them against global practices.

 

But like Singh, others, too, wonder if Itla will offer any meaningful change in the execution of transport and logistics projects. “The biggest challenge will be getting different ministries, government agencies and state authorities to work towards a common objective. Each institution has its own priorities, procedures and decision-making processes”, said Sonam Chadwani, managing partner at KS Legal & Associates.

 

Unless the Authority has a clearly defined role and the ability to ensure accountability, there is a risk that it may become another layer of administration rather than an institution that actually improves efficiency, said Chadwani.

 

As of now, the ministry of commerce and industry does not plan to staff the Itla with any officer above the rank of a joint or additional secretary. This post in the central government is the second most senior after that of the secretary. In this framework, the boss of Itla will report to the incumbent commerce and industry minister. This also means that officers from other ministries will be of equivalent ranks, but without the authority to clear projects. As the Cabinet note says, Itla will undertake technical appraisal of central government infrastructure projects costing ₹500 crore or more. Financial appraisals will continue to be carried out through the existing financial appraisal mechanisms.

 

Despite not having an executive role, Itla has a list of other responsibilities. It is envisaged as the apex institution for integrated transport and logistics planning, write research reports, and carry out project appraisals and monitoring. “It will provide policy support and data analytics to strengthen coordinated decision-making across the transport sector,” reads the Cabinet note. It will also write the Long-Term National Transport Master Plan with a planning horizon of 10 years or more. This will cover roads, railways, ports and shipping, civil aviation, inland waterways, coastal shipping, urban mobility and logistics.

 

The Itla has a long history. The National Transport Development Policy Committee, constituted under the chairmanship of the erstwhile Planning Commission's member Rakesh Mohan in 2010, had suggested the formation of a high-level and independent Office of Transport Strategy. The committee also recommended moving towards investment and strategy for transport as an integrated system. It also suggested a National Transport Infrastructure Finance organisation as a neutral fund raising organisation to be set up alongside.

 

The subsequent Sagarmala programme from 2015 to promote port-led development also aimed to improve logistics efficiency, reduce transportation costs, and support trade by increasing the use of coastal shipping and inland waterways, alongside existing road and rail networks. It focuses on modernising and building ports, improving port connectivity, while encouraging investment from both the public and private sectors.

 

There have been other iterations. The Dedicated Freight Corridor Corporation of India (DFCC) under the ministry of railways has tried a multi-modal model of transport and logistics infrastructure. In 2026 so far, following the National Logistics Plan, the road transport and highways ministry has rolled out the National Highways Logistics Management Limited programme, with Multi Modal Logistics Parks (MMLPs), ropeways, intermodal stations, and wayside amenities being developed across the country.

 

But Chadwani points out, “Itla’s powers and its relationship with existing ministries and regulators must be clearly defined to avoid overlapping responsibilities and jurisdictional conflicts. When a project is delayed because of regulatory approvals, land acquisition or disputes between government agencies, there must be clarity about who is responsible for resolving the issue. Without this, even well-planned projects can get caught in procedural delays."

 

Another challenge is coordination between the Centre and the states. Transport and logistics projects often depend on state level permissions, land availability, and local infrastructure. Even a plan to provide a common number plate across the country has faced resistance from the states, which believe their revenue from the road transport department will collapse as a result.

 

A national authority can therefore provide direction, but implementation will depend heavily on cooperation at the state level. This could be the new Authority’s most difficult operational challenge.