PM Modi unveils National Logistics Policy, aims to cut transport cost

New Delhi: Prime Minister Narendra Modi on Saturday unveiled the National Logistics Policy, saying that the policy aims to address gaps faced by the transport sector and bring down the logistics cost of businesses from 13-14 percent to a single digit. At a grand launch event, he said the policy aims to expedite the last-mile delivery, helping businesses save time and money.

While the new policy addresses challenges of the logistics sector, it together with the infrastructure augmentation plan PM GatiShakti will address gaps, Modi said.

"From 13-14 per cent (of the GDP), we should all aim to bring the logistics cost to single-digit as soon as possible," Modi said adding this, in a way, is a low-hanging fruit, "if we have to become globally competitive".

According to a government official, the policy would help bring down the cost to 7.5 per cent in the coming years.

Elements of the policy like Unified Logistics Interface Platform (ULIP) and Ease of logistics Services (E Logs) would help exporters and industry in enhancing logistic efficiency.

The ULIP will bring all the digital services related to the transportation sector into a single portal, freeing the exporters from a host of very long and cumbersome processes.

Similarly, E-Logs portal has also been started, through which industry can directly take up any such matters which are causing problems in their operations and performance with the government agencies.

A complete system has also been put in place for the speedy resolution of such cases, the prime minister said.

The government, he said, is using technology to strengthen the logistics sector. Faceless assessment has started in customs and e-way bills and FASTag are bringing efficiency to the logistics sector.

National Logistics Policy: Drones

Talking about the drone policy, he said drones will improve the logistics sector.

The government, he said, is using technology to strengthen the logistics sector. Faceless assessment has started in customs and e-way bills and FASTag are bringing efficiency to the logistics sector.

He said the capacity of ports has been increased and the container vessel turnaround time has been cut to 26 hours from 44 hours previously.

The Sagarmala project to connect ports and dedicated freight corridors has started to improve logistics connectivity and systematic infrastructure development work, he said.

The prime minister said India is now the world's fifth largest economy and is emerging as a manufacturing hub.

Seeking to support faster growth after two pandemic-ridden years, the policy will streamline rules and address supply-side constraints as well as provide a roadmap to reduce fuel costs and lower logistics costs.

Further, he said that today, the world is looking at India as a "democratic superpower" and "today the world's attitude towards India is changing. Today the world is evaluating India very positively, it is keeping a lot of expectations from India".

The reforms that the government has undertaken in the recent years, the policies which it has implemented are reasons for the increasing faith of the world on India, he added.

'India has to now compete with developed countries'

The PM said that India, which is determined to become developed, now has to compete more with developed countries.

He added that be it the services sector, manufacturing, automobiles, or electronics, "we have to set big goals in every sector and achieve them".

He underlined that for the products manufactured in India to dominate the world market, it is crucial to have a strong support system and this policy will greatly help in modernising that support system.

"The policy has immense potential for the development of infrastructure, for expansion of business and increasing employment opportunities. We have to realize these possibilities together," he said.

The vision of the policy is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated growth.

Its main parameters include harmonisation and standardisation, trade and transport facilitation, digitisation and skill development.

A comprehensive action plan of the policy include integrated digital logistics systems; standardisation of physical assets and benchmarking service quality standards, state engagement, human resource development and capacity building, export-import logistics, sectoral plans for efficient logistics, and facilitation of the development of logistics parks, the official added.

Under human resource development, the focus would be given to mainstream logistics in higher education; and the development of online training programmes.

Under export-import logistics, the focus would be on addressing infrastructure and procedural gaps; and developing institutional mechanisms for trade facilitation.

Similarly, as part of service improvement framework, the policy would talk about improvement in regulatory interface to enable seamlessness between sectors.

An empowered group of secretaries (EGoS), constituted under the PM Gati Shakti, would monitor and review the implementation of the policy.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)