National Logistics Policy Gets Cabinet Nod; To Reduce Transportation Cost, Promote Seamless Movement Of Goods

National Logistics Policy Gets Cabinet Nod; To Reduce Transportation Cost, Promote Seamless Movement Of Goods Across India

by Swarajya Staff - Wednesday, September 21, 2022 05:09 PM IST
National Logistics Policy Gets Cabinet Nod; To Reduce Transportation Cost, Promote Seamless Movement Of Goods Across IndiaWarehouse for an e-commerce firm. (representative image) (Matt Cardy/Getty Images)

The Cabinet on Wednesday (21 September) approved the National Logistics Policy (NLP), which aims at reducing transportation cost and promoting seamless movement of goods in the country.

Prime Minister Narendra Modi had last week unveiled the NLP which seeks to cut transportation costs by promoting seamless movement of goods across the country.

While launching the policy, PM Modi had said that 'from 13-14 per cent (of the GDP), we should all aim to bring the logistics cost to single-digit as soon as possible'.

The policy lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector.

The policy, which complements the PM GatiShakti National Master Plan, also envisaged to bring efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies.

The policy will introduce ULIP, standardisation, monitoring framework and skill development for greater efficiency in logistics services, said Union minister Anurag Thakur in a press briefing, adding target is to improve Logistics Performance Index ranking, and be among top 25 countries by 2030.

The targets set under the policy are:

  1. To reduce cost of logistics in India to be comparable to global benchmarks by 2030,

  2. Improve the Logistics Performance Index ranking, to be among top 25 countries by 2030, and

  3. Create data driven decision support mechanism for an efficient logistics ecosystem.

To monitor the implementation of the policy and integrate efforts across stakeholders, the Policy will utilise the existing institutional framework i.e., Empowered Group of Secretaries (EGoS) created under the PM GatiShakti NMP.

The EGoS will also set up a “Services Improvement Group” (SIG) on the pattern of Network Planning Group (NPG) for monitoring of parameters pertaining to processes, regulatory and digital improvements in logistics sector that are not covered under the ToR of the NPG.

The policy will focus on enabling adequate development of warehouses with optimal spatial planning, promotion of standards, digitisation and automation across the logistics value chain and better track and trace mechanisms.

Further, measures to facilitate seamless coordination between different stakeholders and speedy issue resolution, streamlined EXIM (Export-Import) processes, human resource development to create an employable pool of skilled manpower, are also laid out in the policy.

The policy also clearly lays down an action agenda for immediate on ground implementation of various initiatives.

To ensure that the benefits of the policy have maximum possible outreach, important initiatives under the policy including the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Services platform, e-handbook on Warehousing, training courses on PM GatiShakti and logistics on i-Got platform, were launched along with the launch of the National Logistics Policy, a government release said on Wednesday.

Further, all states and union territories have been fully onboarded.

As many as fourteen states have already developed their respective State Logistics Policies on the lines of the National Logistics Policy and for 13 states, it is in draft stage, the release said.

The institutional frameworks under PM GatiShakti at Centre and State level, which will also monitor implementation of the policy, is fully operational to ensure a fast and effective adoption of the policy across all stakeholders, it added.

This policy supports enhancing competitiveness of Micro, Small and Medium Enterprises, and other sectors such as agriculture and allied sectors, fast moving consumer goods and electronics. With greater predictability, transparency and reliability, wastages in supply chain and need for huge inventory will reduce, the release said.

(With inputs from PTI)

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