Fundamental bottlenecks remain unchanged in mining & metal logistics, says former NITI member

New Delhi: India's logistics cost for the mining and metals sector may be far closer to 8 per cent of GDP but the sector's underlying bottlenecks remain unchanged, Former NITI Aayog member V K Saraswat said on Friday.

Addressing a conference on Enhancing Competitiveness of Mining and Metals, organised by FICCI here, he said that logistics must be recognised as a strategic determinant for mining & metals competitiveness.

"India's logistics cost for the mining and metals sector may be far closer to 8 per cent of GDP than the widely cited 14 per cent figure, though the sector's underlying bottlenecks remain unchanged," Saraswat said.


Saraswat stated that bulk freight bottlenecks, mining-specific evacuation gaps are still real and costly.

He identified two structural weaknesses that continue to hold back the sector: inadequate first- and last-mile connectivity from mines situated in remote, forested or mountainous terrain, and continued over-dependence on road haulage, which he said could cost two to three times more per tonne-kilometre than rail for bulk commodities.