Logistics sector likely to get development council
The government plans to create a council for the development of logistics sector to enhance efficiency and reduce cost for movement of goods across the country.
By Gunjan Pradhan Sinha, ET Bureau |
New Delhi: The government plans to create a council for the development of logistics sector to enhance efficiency and reduce cost for movement of goods across the country. The move aims to help the industry, particularly the growing retail sector.
���The council would devise and implement projects that would help in bringing down India���s expenditure on logistics from 15% of its gross domestic product (GDP) to about 9-10%. The proposal is in the final stage,��� an official said.
���While work on physical infrastructure projects like roads, ports and highways is progressing smoothly, there is need to streamline policy and procedures for integrated growth of the logistics sector. The proposed development council would aim at providing valuable inputs for the growth of the industry as well lend its direct support to the sector,��� he added.
Another objective of the council is to develop an organised truck industry as about 75% of the total expenditure on logistics goes to this sector, he said. A unified system to tackle issues like multiple toll booths, state road barriers and check-points would be developed that would prevent cost and time over-runs. About two lakh trucks are added to the domestic fleet of trucks every year. However, the country manages to utilise only 60% of the resources due to idling at multiple check points and toll posts in the country.
The proposed council would comprise of members from both industry and the government. It would facilitate financing of projects and provide technical assistance to build a world-class logistics industry. It would also give valuable policy inputs to the government for the growth of the industry, he said.
���The council will work on improving the software and procedures for the logistics industry as a whole and provide fast means of movement of goods via road, rail, sea and inland water. The private sector will be roped in to make the majority investment as so as to speed up the movement of goods as well as use the existing resources in a better manner,��� the official said.
���The council would devise and implement projects that would help in bringing down India���s expenditure on logistics from 15% of its gross domestic product (GDP) to about 9-10%. The proposal is in the final stage,��� an official said.
���While work on physical infrastructure projects like roads, ports and highways is progressing smoothly, there is need to streamline policy and procedures for integrated growth of the logistics sector. The proposed development council would aim at providing valuable inputs for the growth of the industry as well lend its direct support to the sector,��� he added.
Another objective of the council is to develop an organised truck industry as about 75% of the total expenditure on logistics goes to this sector, he said. A unified system to tackle issues like multiple toll booths, state road barriers and check-points would be developed that would prevent cost and time over-runs. About two lakh trucks are added to the domestic fleet of trucks every year. However, the country manages to utilise only 60% of the resources due to idling at multiple check points and toll posts in the country.
The proposed council would comprise of members from both industry and the government. It would facilitate financing of projects and provide technical assistance to build a world-class logistics industry. It would also give valuable policy inputs to the government for the growth of the industry, he said.
���The council will work on improving the software and procedures for the logistics industry as a whole and provide fast means of movement of goods via road, rail, sea and inland water. The private sector will be roped in to make the majority investment as so as to speed up the movement of goods as well as use the existing resources in a better manner,��� the official said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
