logistics: Government to develop plan to improve city logistics, reduce enforcement burden on truck drivers

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The commerce and industry ministry on Wednesday said it will work with the housing and urban affairs ministry to focus on 50 cities for their logistics planning besides developing a plan to reduce the enforcement burden on truck drivers.

The ministry said that it presented a comprehensive 18 Point Agenda to the states to improve the logistics including city logistics, simplification of approvals for warehouses, facilitation for warehousing development, reducing burden on truck movement and addressing shortage of truck drivers at the first National Conference with States on Logistics.

“State Level Coordination Committees on Logistics will be formed… Support will be provided to the states to improve the capacity for logistics coordination,” the department of commerce said in a release.

India wants to reduce its logistics costs from 13-14% of the gross domestic product (GDP) at present to under 10% of the GDP. The logistics division of the department is working on a logistics policy that aims for the country to break into top 25 countries in major global logistics-related performance indices, create a single point of reference for all logistics and trade facilitation, facilitate faster clearances, double employment in the logistics sector and reduce losses due to agri-wastage.

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

Separately, to improve the competitiveness of states on logistics, the department is also widening the ambit of the perception-based index of mobility of goods and efficiency of logistics chains. It plans to add new indicators such as rail and road connectivity, railway track and highway length, average speeds, performance of toll roads, and number and capacity of warehouse facilities to its Logistics Ease Across Different States (LEADS) index, which is currently based on parameters such as infrastructure, services, safety of cargo, timeliness, track and trace.

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