Delhi govt working on logistics, warehousing policy to reduce freight congestion, cut logistics costs

The Delhi government is formulating a Logistics and Warehousing Policy to reduce freight congestion, cut logistics costs, and transform the national capital into a modern logistics hub, aligned with the National Logistics Policy (NLP), according to officials.

The policy, being formulated by the Delhi government's Department of Industries, focuses on addressing critical infrastructure gaps, regulatory overlaps, and outdated freight systems that have long plagued the city's supply chain efficiency.

Delhi Industries Minister Manjinder Singh Sirsa said in the absence of a comprehensive policy, the national capital was facing multiple problems.


"The AAP government did not work on a Logistics Policy to decongest the national capital. As a result, the national capital was grappling with problems of congestion, air pollution, and traders also suffered.

"The policy, we are working on, will make dedicated warehousing hubs and thus lead to decongestion, reduction in air pollution and also come as a huge relief for traders. The policy envisages the establishment of dedicated hubs for warehousing and also promises incentives on land and green initiatives," he told PTI.

The policy, which is in the works, will propose a comprehensive set of interventions, including the development of integrated logistics parks and Urban Consolidation and Logistics Distribution Centres (UCLDCs) along peripheral routes, where freight can be consolidated and final-mile deliveries made via electric or CNG vehicles.

To operationalise these ideas, the policy will outline several key action points, which include round-the-clock logistics operations. It will also seek an amendment of laws on the Model Shops and Establishments Act to allow round-the-clock functioning of logistics facilities, particularly for e-commerce.

According to officials, the department aims to merge trade and establishment licenses to reduce red tape for warehousing and freight businesses through the policy.

The policy will also propose the creation of designated parking areas with loading bays through public-private partnerships (PPP), supported by real-time digital booking systems.

The policy is likely to outline the establishment of at least three modern logistics centres on the outskirts of Delhi, each spanning 70-80 hectares, equipped with warehousing, cold chain, and sorting facilities. Feasibility studies, financial modelling, and DPRs (Detailed Project Reports) will guide this development, officials said.

It is likely to extend incentives for the adoption of electric vehicles and clean technologies to reduce emissions, in line with Delhi's climate goals.

Delhi sees daily freight movement of around 10 lakh tonnes and nearly 1.93 lakh vehicles, of which 21 per cent are pass-through traffic. The policy aims to curb traffic snarls and air pollution caused by inefficient freight handling, while improving Delhi's performance in the Logistics Ease Across Different States (LEADS) index.

Stakeholder consultations for the policy included input from leading industry players, such as Flipkart, Delhivery, Safe Express, Apeejay Global Logistics, and associations representing textiles, construction materials, and agricultural commodities.

Officials said the draft will soon be opened for public and inter-departmental feedback before being finalised and notified.