National Logistics Policy

National logistics Policy (NLP)

India aims to increase its exports manifold, it is important that the logistics aspects, that will facilitate this goal, be addressed. Logistics costs in India have been in the range of 14-18 percent of GDP against the global benchmark of 8 percent.

The key dimensions to be addressed to improve logistics for trade include

• Ensuring efficiency of the clearance process (i.e., speed, simplicity, and predictability of formalities) by border control agencies, including customs.

• Improving the quality of trade and transport- related infrastructure (e.g., ports, railroads, roads, information technology).

• Easing of arranging competitively priced shipments

• Enhancing the competence and quality of logistics services (e.g., transport operators, customs brokers)

• Providing for tracking and tracing of consignments and ensuring timeliness of shipments in reaching destinations within the scheduled or expected delivery time.

These aspects have been captured by the World Bank in the form of a Logistics Performance Index (LPI).

Significant steps to be undertaken for NLP

Integration of Digital System (IDS): There will be digital integration of different systems of seven various departments (like road transport, railways, aviation, commerce ministries and foreign trade)

Unified Logistics Interface Platform (ULIP): This ensures shorter and smoother cargo movement and enables the exchange of information confidentially on a real-time basis. This National Industrial Corridor Development Corporation (NICDC) Logistics Data Bank Project has been leveraged.

Ease of Logistics (ELOG): Through accessibility and transparency, it will guarantee and facilitate the ease of doing business in logistics.

System Improvement Group: It will monitor all logistics- related projects regularly.

Implementation of the NLP

The Policy will be implemented through a Comprehen- sive Logistics Action Plan (CLAP).

The interventions under the CLAP are divided into specific key action areas, including Integrated Digital Logistics Systems, standardization of physical assets & benchmarking service quality standards, Logistics Human Resources Development and Capacity Building, State Engagement, EXIM (Export-Import) Logistics, Service Improvement framework, Sectoral Plan for Efficient Logistics and Facilitation of Development of Logistics Parks.

Government Initiatives to improve the logistics ecosystem

Government of India to improve the logistics ecosystem through ‘infrastructure initiatives’ such as Ude Desh ka Aam Nagarik (UDAN), Bharatmala, Sagarmala, Parvatamala, National Rail Plan, and through ‘process reforms’ GST, e-Sanchit, Single Window Interface for Trade (SWIFT), Indian Customs Electronic Data Interchange Gateway (ICEGATE), Turant Customs, and others.

PM Gatishakti

PM GatiShakti National Master Plan (PMGS-NMP) was launched for providing multimodal connectivity infrastructure to various economic zones. PM GatiShakti is a transformative approach for economic growth and sustainable development. The approach is driven by 7 engines, namely.

• Railways

• Roads

• Ports

• Waterways

• Airports

• Mass Transport

• Logistics Infrastructure

Focus

The focus is on integrated planning and synchronized implementation across ministries/ departments, with innovative use of technology.

Pillars of GatiShakti

Comprehensiveness: It will have a single, central portal that will house all of the Ministries’ and Departments planned and ongoing projects. Each and every Department will now have visibility of each other’s activities providing critical data while planning & execution of projects in a comprehensive manner.

Prioritization: Through this, different Departments will be able to prioritize their projects through cross-sectoral interactions.

Optimization: The National Master Plan will assist different ministries in planning for projects after identification of critical gaps. For the transportation of the goods from one place to another, the plan will help in selecting the most optimum route in terms of time and cost.

Synchronization: Individual Ministries and Departm- ents often work in silos. There is lack of coordination in planning and implementation of the project resulting in delays. PM Gati Shakti will help in synchronizing the activities of each department, as well as of different layers of governance, in a holistic manner by ensuring coordination of work between them.

Analytical: The plan will provide the entire data at one place with GIS based spatial planning and analytical tools having 200+ layers, enabling better visibility to the executing agency.

Dynamic: All Ministries and Departments will now be able to visualize, review and monitor the progress of cross-sectoral projects, through the GIS platform, as the satellite imagery will give on-ground progress periodically and progress of the projects will be updated on a regular basis on the portal. It will help in identifying the vital interventions for enhancing and updating the master plan