Impact assessment of National Logistics Policy undertaken at Inter-Ministerial Meeting

Ministry of Commerce & Industry

Impact assessment of National Logistics Policy undertaken at Inter-Ministerial Meeting

Progress on National Logistics Policy implementation reviewed by Secretary DPIIT

On completion of ten months of the launch of the National Logistics Policy (NLP), an inter-Ministerial meeting to review the progress of its implementation was held by the Department for Promotion of Industry and Internal Trade (DPIIT). During the meeting measures taken by different Ministries to improve logistics efficiency in the country were also showcased.

While addressing the meeting Shri Rajesh Kumar Singh, Secretary, DPIIT applauded participating Ministries for all the good work done and asserted that endeavours to achieve targets of NLP shall continue in full stride. Powered by these reforms and focus on improving logistics efficiency, India’s ranking in the World Bank’s Logistics Performance Index (LPI) has gone up by six places from 44 in 2018 to 38 out of 139 countries in 2023.

He reiterated the critical role played by ports in making India a globally competitive export destination and suggested greater adoption of initiatives like the Logistics Data Bank to draw learnings for improving logistics performance across various metrics (port processes, trunk infrastructure, first & last mile multimodal connectivity, seamless movement of bulk and break-bulk commodities, etc.). While planning new infrastructure, additional capacity requirements at EXIM gateways need to be addressed by concerned line Ministries.

To complement PM GatiShakti, the National Logistics Policy, was launched last on 17th September 2023, and significant progress has been made across key action areas (digital integration, services improvement, state engagement, skill development, logistics performance index, logistics cost reduction, EXIM logistics, etc.).

The meeting saw participation from eleven infrastructure and user Ministries including M/o Road Transport & Highways (MoRTH), M/o Port Shipping and Waterways (MoPSW), M/o Coal, D/o Food & Public Distribution, M/o Civil Aviation (MOCA), M/o Steel, D/o Commerce, D/o Fertilizer, D/o Revenue, M/o Skill Development and Entrepreneurship (MSDE) and M/o Power and, National Industrial Corridor Development Corporation Limited (NICDC).

Smt Sumita Dawra, Special Secretary (Logistics) DPIIT, during her opening remarks highlighted that for making India’s domestically manufactured goods globally competitive and achieving the USD 2.5 trillion EXIM target by 2030, it is imperative to have an efficient logistics ecosystem.

She set the context and stated the objective of the meeting was to take stock of the various measures implemented under Comprehensive Logistics Action Plan (CLAP) – defined under National Logistics Policy; apart from sharing learnings on action taken and best practices adopted by Ministries to improve logistics performance of the country; discuss the impact of the initiatives on various stakeholders and beneficiaries in India; suggest strategies and way forward to improve logistics ecosystem.

The meeting was divided into two sessions. Session I focussed on review of measures undertaken by DPIIT and Session II covered progress in implementation of the NLP by participating Ministries.

Presentations were made during Session I by Officials of Logistics Division, DPIIT, on the eight  action areas under CLAP and the status is summarised as follows:

The Service Improvement Group (SIG) is well established with involvement of more than 30 business associations in the field of logistics; critical issues with respect to logistics services are raised by business associations on the E-LoGS platform. SIG and E-LoGS have together established a robust mechanism to address and resolve logistics issues/ promote logistics efficiency.

Human resource development and capacity building: Efforts are being made to integrate training courses on Logistics and PM GatiShakti NMP with Central Training Institutes (CTIs) and State Administrative Training Institutes (ATIs). All sector specific training institutions (MoPNG, M/o Coal, MORTH and MOR) to adopt the syllabus and modules being developed.

To promote trade facilitation and streamline EXIM logistics, infrastructure gaps are being addressed and digital initiatives undertaken (under National Committee on Trade Facilitation); an EXIM Logistics Group has been constituted and 60 projects of MORTH and 47 of Railways have been sanctioned to improve last mile connectivity to ports. However, more efforts are needed to improve average speed between ports and last toll plaza, port dwell time, etc.

To bring holistic focus on ‘logistics’ in public policy at State level, States/UTs are developing State Logistics Plans (SLPs) aligned with NLP. So far, 21 States have notified their respective State Logistics policies.

Rating of states on parameters of ease of logistics – infrastructure and services, under the annual “Logistics Ease across Different States (LEADS)” survey across all States/ UTs is on track. The LEADS report 2022-2023 will be launched in October 2023.

Logistics Division, DPIIT, has initiated an endeavour to estimate Logistics cost, since no official estimates are available and they vary from 8-14% of GDP. Hence a need was felt for developing accurate estimates based on holistic data and relevant statistical models. For this, survey-based logistics cost calculation framework is being developed and a short-term baseline estimate for logistics cost is soon to be unveiled.

To address sector-specific needs in the logistics sector and streamline movement of bulk and break-bulk cargo in the country, Sectoral Plans for Efficient Logistics (SPEL) are being developed by user Ministries. So far, selective achievements have been noted and a more systematic approach was emphasised to be adopted by all stakeholders.

To streamline doing business in the logistics sector, Unified Logistics Integrated Platform (ULIP) launched last year so far integrates 33 logistics-related digital systems /portals across Ministries / Departments Over 55 applications have been made live by private sector and over 590 industry players have registered on ULIP. It is worth noting that GST data is also being integrated with ULIP.

For tracking and tracing 100% of India’s containerized EXIM cargo, the Logistics Data Bank (LDB), has been developed. This supply chain visibility platform has contributed to reducing India’s average dwell time to just 2.6 days and improved logistics efficiency.

For improving India’s ranking in LPI and achieving the NLP target of top 25 nations in the world, all stakeholder Ministries were requested to set up a dedicated cell for undertaking a strategic approach to improving performance across all six parameters of the Logistics Performance Index (LPI) and the overall ranking, thereof.

Brief overview of the presentations made during Session II by Officials from the eleven participating ministries, is summarised below:

Logistics planning for coal and energy generation: A draft coal logistic policy and National coal evacuation plan has been developed by M/ o Coal. In addition, standardization of physical assets (heavy earth moving machines for coal handling) and setting up benchmarks for quality management, is under progress.

Ministry of Civil Aviation presented the progress made in integration of its Cargo Management System (ICMS) with ULIP, development of Air Freight Station (AFS) guidelines, standard operating procedures (SOP) for standardising airport processes, among others.

Department of Food and Public Distribution has integrated its vehicle tracking system (VLTS) with ULIP. In addition, route optimization study for efficient inter and intra state movement of foodgrain and optimum utilisation of storage facilities, is being undertaken.

Ministry of Steel highlighted that sectoral plan for efficient logistics (SPEL) is being developed in consultation with individual secondary steel clusters, and measures are being taken to promote transportation of iron ore through slurry pipelines. It was suggested that Sectoral plan for M/o steel for logistics is important to keep pace with growth of the sector.

Official from MORTH highlighted the development of training programs on construction and maintenance of roads, and Model Concession Agreement for Multi Modal Logistics Parks.

MoPSW has launched NLP Marine for reducing inefficiencies and promoting ease of doing business; improving port productivity and multimodal connectivity; a multi-product SEZ at Jawahar Lal Nehru Port and at Kandla in Deendayal Port has been set up to boost export-oriented industries.

A task force for development of national logistics workforce strategy has been formed by MSDE.

Official from CBIC highlighted measures taken for promoting trade facilitation at ports. Efforts are being made towards establishing integrated laboratory network, promoting risk management systems for consignment screening, standardisation of processes across ports for examination of cargo, among others, are in place.

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