UP PCS Mains-2024

Approach Define logistics and warehouses and give relevant data. Mention the objectives and features of the policy. Conclude by giving a way forward.

Introduction

Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption, and a warehouse is a commercial space where goods and materials are systematically stored to enhance the supply chain.

Logistics is a critical determinant of trade within the State and is significant for Uttar Pradesh’s competitiveness in the country’s trade. According to the Economic Survey 2022-23, logistics costs in India have been in the range of 14-18% of GDP against the global benchmark of 8%. A reduction of even 1% in the logistics cost would mean a saving of approximately ₹ 1.4 Lakhs crore per annum.

Uttar Pradesh has been graded under “Achievers” category within the landlocked cluster in Logistics Ease Across Different States (LEADS) Survey 2022. U.P. has been recognized as one of the leading States, in terms of “quality of rail infrastructure” (LEADS 2022).

Body

Objectives of the Policy

Considering the potential of the logistics sector in transforming Uttar Pradesh’s economy, the government has launched Uttar Pradesh Warehousing and Logistics Policy 2022 with the following objectives:

• Create a robust transportation infrastructure network for reducing logistics costs and improving efficiency.
• Upgrade and improve the existing warehousing and logistics infrastructure to boost economic activities and generate large-scale employment opportunities.
• Create an effective institutional governance mechanism for effective administration and integrated planning for the development of the logistics sector.
• Attract private investments in setting up logistics facilities in the state with forward and backward linkages.
• Promote excellence and upskilling, re-skilling & capacity enhancement of the workforce to cater to the needs of the logistics industry.
• Establish smart logistics practices by promoting the adoption of technology and modern practices to enable automation, green logistics and safety.

Features

• 100 percent stamp duty exemption for manufacturing of storage facilities in Bundelkhand and Purvanchal.
• 100 percent stamp duty exemptions for Dry ports and Logistics parks.
• Capital Subsidy on storage facilities at the rate of 15 percent up to ₹5 crore anywhere in Uttar Pradesh and up to ₹10 crore in designated Logistics Zones.
• Land will be provided on PPP basis for 35 years to developers of Cargo/ Berthing Terminals.
• Electricity Duty Exemption at the rate of 100 percent for 10 years.
• Quality certification cost reimbursement for storage facilities up to ₹ 5 lakhs per project.
• There is provision of skill development subsidy.
• Industry status is granted to units defined in terms of land use.
• There is provision of fast-track land allotment by reducing bureaucratic hurdles.
• Strategic areas in proximity to key infrastructure projects such as Dedicated Freight Corridor, Expressways, Jewar Airport, etc. will be notified. Additional incentives are proposed for investing in such zones.

Conclusion

There is an inherent need to develop a robust, well-integrated, and efficient logistics ecosystem in the state. The Uttar Pradesh Warehousing & Logistics Policy 2022 thus aims to reduce logistics costs by improving the infrastructure, this has the potential to give a boost to the vision of a trillion-dollar economy of Uttar Pradesh by 2027.