Goa Government Paves Way For Logistics And Warehouse Led Investments With New Policy

On 24 May, the state cabinet of Goa gave the green light to the Goa Logistics and Warehouse Policy 2023 — which aims to boost logistics-led investments in the state.

The policy has several objectives — including promoting environment-friendly commercial carriers through decarbonisation of transportation and the development of the logistics sector as a shared goal among different government departments.

Further, it seeks to create an ecosystem for logistics players by creating opportunities in warehousing and container logistics.

The government aims to achieve this by formulating institutional and regulatory frameworks that offer time-bound clearances to logistics-led investments in the state.

In addition, it will also strengthen the existing logistics blocks of the state by granting ‘industry’ status to the logistics and warehousing sectors.

Incentives Offered Through The Policy

The state government's policy aims to offer financial benefits to companies undertaking construction projects by providing interest and capital subsidies of up to 15 per cent on its annual loan interest payments.

Additionally, incentives will be extended to companies investing fixed capital in buildings, plants, and machinery for integrated logistics parks, large warehouses, cold storage facilities, and testing centres located in under-developed talukas.

In addition to stimulating investments in the logistics industry, the policy seeks to enhance the accessibility to agricultural produce.

It aims to achieve this by improving transportation from fields to markets, modernising current jetties to facilitate waterborne cargo movement, and developing crucial inland river routes.

The government of Goa will make efforts to subsidise expenses like stamp duty and registration charges on a case-by-case basis for the establishment of dry ports and initiatives that are not classified as 'Mega Projects'.

For the same, the government intends to reimburse 50 per cent of the expenses associated with skill enhancement and training of local workers for each business unit.

This reimbursement will be limited to Rs 5,000 per person, with a maximum of 1,000 individuals per business unit, for the initial two years.

State’s Support For Setting Up Infrastructure

The developers of logistics units and warehouses will be eligible for a 50 per cent reduction in land conversion charges.

The state’s Town and Country Planning (TCP) Department will establish specific guidelines to increase the Floor Space Index (FSI) by up to 200 per cent for logistics and warehousing units, as well as expand the ground coverage for such facilities.

The TCP Department will also formulate guidelines to enable logistics parks and warehouses to operate 24x7.

Furthermore, depending on the fire department's capacity and road width availability, the maximum height limit for buildings within logistics and warehousing units will be increased to 24 metres.

To support startups in the logistics sector, the state may introduce a dedicated innovation fund of Rs 1 crore for the initial two years.

Additionally, incentives will be provided to encourage the adoption of environmentally friendly practices, such as the utilisation of solar-powered vessels.

The incentives will be offered in accordance with the guidelines outlined in the Goa Industrial Growth and Investment Promotion Policy of 2022.