Punjab finalising logistics policy; eyes infra upgrade, cost reduction

Updated on Dec 06, 2022 12:53 AM IST

The Punjab government is all set to approve its first logistics policy soon, offering fiscal and non-fiscal incentives for investments in multi-modal logistics parks, transport centres, wayside amenities, specialised warehouses in border districts and specialised commercial vehicles fleets.

The Integrated Logistics and Logistics Park Policy is being given final touches by the industries and commerce department for approval from the state cabinet. (Bloomberg file photo)
The Integrated Logistics and Logistics Park Policy is being given final touches by the industries and commerce department for approval from the state cabinet. (Bloomberg file photo)
By, Chandigarh

The Punjab government is all set to approve its first logistics policy soon, offering fiscal and non-fiscal incentives for investments in multi-modal logistics parks, transport centres, wayside amenities, specialised warehouses in border districts and specialised commercial vehicles fleets.

The Integrated Logistics and Logistics Park Policy, which is being given final touches by the industries and commerce department for approval from the state cabinet, envisages to increase the competitiveness of goods produced in the state by cutting the logistics costs from 13% to 8% through improvement in the efficiency of the sector. The final draft of the policy pitches logistics as a thrust area, identifying it as an eligible service enterprise for fiscal incentives, including reimbursement of state goods and services tax (SGST), employment general subsidy and exemption from change of land use charges (CLU) and external development charges.

“The concurrence of the finance department has been received. Comments are awaited from three to four other departments. After their observations are received, the proposed policy will be taken to the cabinet for approval,” said a senior officer privy to the developments, who did not want to be named. Principal Secretary, industries and commerce, Dilip Kumar has written to these departments to send their comments on the proposed logistics policy within two days. The draft logistics policy was put in public domain on January 27, 2022, for feedback from the industry and other stakeholders.

Chief Secretary VK Janjua, while chairing a meeting on preparations for the Progressive Punjab Investor Summit 23 in February 2023, asked the departments to finish their work and have the industrial, logistics and information technology policies in place before the meet. Under PM GatiShakti programme, the central government had also asked the states to formulate their own policies to shore up logistics. The policy proposed by the industries department focuses on logistics for export and agriculture, freight smart cities, logistics parks and development of warehousing facilities.

Multi-modal logistics parks (MMLPs) and logistics units with minimum fixed capital investment (FCI) of 100 crore or direct employment generation for 250 persons will be treated as anchor units. They will be entitled to investment subsidy by way of 100% reimbursement of net SGST for a period of 15 years subject to 200% of FCI, local employment generation subsidy at 36,000 per employee per year and 48,000 per employee per year for women and SC/BC/OBC staff and 100% exemption from for 15 years. Similarly, logistics parks with minimum area of 25 acres will be allowed with a total investment of at least 25 crore. A minimum 85% of the total area to be used for providing logistics services and within this 20% will be permitted for industrial activities. No CLU or EDC will be levied on any component of the logistics park except for commercial activities. Trucker parks and wayside amenities with a minimum of 10 acres, located along or at a distance of two kilometers on either side of national or state highways are also proposed with 100% exemption from CLU and EDC and reimbursement of stamp duty. Incentives have also been proposed for specialised commercial vehicle fleets and warehouses in border districts.

CM to meet biz leaders on industrial policy today

Chief minister Bhagwant Mann will meet representatives of industry associations and entrepreneurs on Tuesday to discuss the draft ‘Punjab Industrial and Business Development Policy-2022. A meeting was scheduled on November 10 earlier, but got postponed at the last minute. The state government had put the draft industrial policy in public domain on September 9 and then circulated it to 15 departments for suggestions and comments. The previous policy ended on October 17.

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  • ABOUT THE AUTHOR

    A senior assistant editor, Navneet Sharma leads the Punjab bureau for Hindustan Times. He writes on politics, public affairs, civil services and the energy sector.

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