Centre to form high-level panel to monitor plan for multi-modal connectivity

The government will soon set up a high-level panel to fast-track implemention of a National Master Plan that seeks to provide multi-modal connectivity across the country to reduce logistics cost in a time-bound manner and improve competitiveness of local manufacturing.

The Empowered Group of Secretaries, to be chaired by Cabinet Secretary, will also look at the interventions required for efficient transportation of bulk goods based on the requirements of various ministries like steel, coal and fertiliser besides monitoring the progress of the master plan.

Through the plan, the commerce and industry ministry would map all existing and proposed economic zones along with the multi-modal connectivity infrastructure projects on a single platform.

“The master plan is being worked out for a bird’s eye view of economic zones and the infrastructure linkages,” said an official, adding that it will provide visibility about the availability of multimodal connectivity infrastructure and its integration with the economic zones.

Besides giving a status check of infrastructure connectivity, utilities and economic zones as on 2014-15, the plan will also detail the achievements by 2020-21 and planned interventions up to 2024-25.

An Integrated Multi Modal Network Planning Group (NPG) is also proposed to be constituted with representation of heads of Network Planning Divisions from various infrastructure departments and ministries.

As per the official, the Logistics Division in the commerce department will act as secretariat to the Empowered Group.

The initiatives are part of the government’s plan to reduce India’s logistics costs by 5% over the next five years and help it break into top 25 countries in major global logistics-related performance indices.

As per Federation of Indian Export Organisations, a 10% reduction of logistics cost will help boost the country's exports by about 5-8%.

“A world class infrastructure will go a long way to make our manufacturing and exports competitive besides reducing the logistics cost,” said Sharad Kumar Saraf, President, FIEO, adding that a regulatory agency for the shipping sector is crucial for the country’s infrastructure sector. The apex exporters’ body expects India to clock $290 billion of exports in FY21.

As part of the exercise, the country aims to draw up a comprehensive digital inventory of logistics assets and manpower that could be used in emergency situations like the ongoing pandemic. These assets could be upgraded to military standards in terms of design, construction and equipment capacity.

India ranked 44 on the World Bank’s Logistics Performance Index in 2018.