State approves logistics policy aimed at generating ₹30,573 crore and 500,000 jobs
Maharashtra approved Logistics Policy 2024 to create jobs, generate revenue, and develop logistics infrastructure across the state, attracting investments
MUMBAI: The state government, in its cabinet meeting held on Wednesday, approved the Maharashtra Logistics Policy 2024, which was formulated based on recommendations from the State Economic Advisory Council. Designed to guide development over the next ten years, the policy is expected to create approximately 500,000 direct and indirect jobs and generate a revenue of around ₹30,573 crore, according to government estimates.
The term ‘logistics’ refers to the process of acquisition, storage and delivery of resources to their intended location. It is an integral part of the supply chain process that ensures the efficient flow of goods and services from the point of origin to the point of consumption.
The Maharashtra policy incorporates the ‘Integrated Logistics Master Plan’, which focuses on optimum utilisation of existing and upcoming logistics networks, strengthening logistics infrastructure and multi-modal connectivity. Under it, dedicated logistics infrastructure will be developed on more than 10,000 acres in the state by 2029.
The projects include an international mega logistics hub to be developed in the Navi Mumbai-Pune region on 2,000 acres of land, which will also be connected to the new international airport at Panvel. This will help in making the area a major international trade and industry centre due to its proximity to various industrial estates. A budget of ₹1,500 crore will be allocated for this development.
A national mega logistics hub will be established on a 1,500-acre plot in Nagpur-Wardha under the policy, which will be connected to the Samruddhi Mahamarg or Mumbai-Nagpur Expressway. Nagpur’s central geographical location and existing transport infrastructure make it favourable for logistics development. A sum of ₹1,500 crore will be allocated for its development.
Another set of five state logistics hubs, each covering 500 acres, will be set up in Chhatrapati Sambhajinagar-Jalna, Thane-Bhiwandi, Ratnagiri-Sindhudurg, Pune-Purandar and Palghar-Wadhawan. A total of ₹2,500 crore will be allocated for them.
Five regional logistics hubs covering 300 acres each will be established in Nanded-Degloor, Amravati-Badnera, Kolhapur-Ichalkaranji, Nashik-Sinnar and Dhule-Shirpur under the policy, for which an allocation of ₹1,500 crore will be earmarked.
The key objectives of the policy include reducing logistics costs by at least 4% to 5% compared to the current 14-15%, cutting down the time required for logistics operations as well as decreasing carbon emissions through green initiatives. The policy will incorporate technologies such as blockchain, artificial intelligence, intelligent logistics management systems, green logistics parks, sustainable design and model shifts. It aims to attract both domestic and foreign investments and to elevate Maharashtra to a global logistics hub.
The state has also envisaged providing financial incentives to the first 100 logistics parks within each district, which include interest subsidies, stamp duty exemptions, power at industrial rates, technology improvement support and ease of business facilitation. “By creating a vast network of logistic nodes and services across the state, Maharashtra will become a hub of logistics,” said a senior industries official.
Twenty-five district logistics nodes will also be created based on the economic development centres identified through an analysis of each district’s capacity, business opportunities and traditional skills. Each node will have two to three major industry and trade hubs, totalling approximately 100 acres. MIDC areas will reserve 15% of their space for private logistics nodes, and financial incentives and grants will also be provided for logistics park developers. To deal with the space constraints in cities such as Mumbai, Thane and Pune, urban or suburban areas with a minimum built-up area of 20,000 square feet and an investment of at least ₹5 crore will be designated as ‘Multi-Storey Logistics Parks’.
For formulating the policy, the industries department incorporated inputs from the Maharashtra Maritime Board, Jawaharlal Nehru Port Authority, Mumbai Port Trust, Maharashtra State Road Development Corporation, MMRDA, CIDCO and the Maharashtra Airport Development Company.