MUMBAI: The Uttar Pradesh Government is for the first time, drafting its own logistics policy, as higher industrial activity, economic growth and the Government's recent policy decisions are triggering unprecedented growth in the sector.
"With both the Eastern and the Western freight corridors and several industrial corridors passing through Uttar Pradesh, we are at a good position to take advantage of this logistics revolution which we expect to see in the next two years," Rajiv Kumar, Chief Secretary of the UP State Government said recently.
The policy will entail the establishment of at least five industrial parks across the State, the smallest with an investment of Rs 200 crore, said another top official in the UP Government. The policy will also include various incentives for logistics players if they invest in this sector in the State.
This and three other policies -- on pharma, electric vehicles and defense -- were discussed at a meeting of the State Government officials on January 3.
"This was an Inter-Departmental meeting wherein several modalities of the policy were discussed. Soon, we have meetings with players from the logistics and warehousing industry on how best they can contribute to the policy," said a senior official. He said the State Government aims to have a concrete framework of the logistics policy in two weeks.
Andhra Pradesh and Telangana are the two other States said to be drafting their own logistics policies.
The UP Government was also among the first to implement the e-way bill (a digital permit and tracker of cargo transportation in the Country) in what's seen as its most complicated form.
The logistics sector holds a lot of promise, thanks to the goods and services tax introduced earlier this year and the recently conferred infrastructure status to the sector. GST will change the structure of warehousing in the Country leading companies to bigger, better facilities. Infrastructure status will make borrowing easier in the sector.
The UP Government has been in talks wih Container Corporation of India to set up a logistics park in Bhaupur, near Kanpur. The Uttar Pradesh State Industrial Development Corporation is in the process of acquiring 100 acres of land for the same. The smallest of such hubs will be built at an estimated cost of Rs 200 crore, said one of the persons cited above. Similar such hubs are envisaged to be built along the Delhi-Mumbai Industrial Corridor (DMIC) and the Amritsar-Kolkata Industrial Corridor (AKIC).