Logistics Sector in India plays an important role in improving the ‘Ease of Doing Business’ Index, hence gaining importance in the government’s policies. The government thus drafted a dedicated ‘National Logistics Policy’ to improve the bottleneck problems in the logistics sector in India. In alignment with the policy, the government has launched several schemes to fulfill its ambitions to upgrade the logistics sector. Furthermore, several pre-existing schemes have been upgraded and relaunched in line with the National Logistics Policy. These schemes are equally important for the food processing industry in particular and the food system in general. It is due to the perishable nature of agricultural commodities, as well as processed food. In this article, we discuss different schemes launched by the government of India to improve the logistics sector.
Logistics Sector in India: Schemes to Upgrade India’s Supply Chain
To gain the evident results in consonance with its National Logistics Policy, the government has launched the following schemes.
PM Gati Shakti National Master Plan
PM Gati Shakti – National Master Plan was launched for Multi-modal Connectivity. It is a digital platform to bring 16 Ministries, including Railways and Roadways, together. It aims for an integrated planning and coordinated implementation of infrastructure connectivity projects. The scheme aims to facilitate multi-modal connectivity for an integrated and seamless connectivity for the movement of people, goods, and services from one mode of transport to another. PM Gati-Shakti also aims to facilitate the last-mile connectivity of infrastructure and reduce travel time for people.
Objectives of PM Gati Shakti
The master plan aims to incorporate the infrastructure schemes of various Ministries and State Governments like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN, etc. It will also cover economic zones like textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, and agri zones. The plan will also leverage technology extensively, including spatial planning tools with ISRO (Indian Space Research Organisation) imagery developed by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics).
Logistics Efficiency Enhancement Programme (LEEP)
It aims to enhance the freight transportation in India through improving cost, time, tracking, and transferability of consignments. These actions are performed through infrastructure, procedural, and Information Technology (IT) interventions. Further, it offers services of consultants to carry out a critical examination of the existing logistic infrastructure and the destination of freight movement in the country. LEEP aims to connect 44 freight corridors (Economic Corridors), Inter corridors, and feeder routes. These actions will help to reduce the cost and time of freight movement. It takes into consideration an end-to-end corridor view, rather than a stretch-by-stretch road construction view, to ensure consistent infrastructure along the corridor, as per the discussion between NHAI and the Government.
National Rail Plan Vision, 2030
The plan has been prepared by the Indian Railways for the India 2030 Vision. It aims to create a ‘future-ready’ Railway system by 2030. The Policy aims to formulate strategies based on both operational capacities and commercial policy initiatives. It will also increase the modal share of the Railways in freight to 45%. The main objective of the Plan is to create capacity ahead of demand. It would also cater to future growth in demand right up to 2050. It will also increase the modal share of Railways to 45% in freight traffic and to continue to sustain it.
Objectives of the National Rail Plan, 2030
Strategy Formulation
The plan will formulate strategies based on both operational capacities and commercial policy initiatives to increase the modal share of the Railways in freight to 45%.
Boosting Efficiency
The plan aims to reduce the transit time of freight substantially by increasing the average speed of freight trains to 50 km/h.
Developing Railway Infrastructure
National Rail Plan envisages an accelerated implementation of critical projects such as 100% electrification, multi-tracking of congested routes, upgradation of speed to 160 kmph on Delhi-Howrah and Delhi-Mumbai routes, upgradation of speed to 130 kmph on all other Golden Quadrilateral-Golden Diagonal (GQ/GD) routes, and elimination of all Level Crossings on all GQ/GD routes.
Other Initiatives
- Identification of new Dedicated Freight Corridors.
- Identification of new High Speed Rail Corridors.
- Assessment of rolling stock requirements for passenger traffic, as well as wagon requirements for freight.
- Assessment of Locomotive requirements to meet twin objectives of 100% electrification (Green Energy) and increasing freight modal share.
- Assessment of the total capital investment that would be required, along with a periodic breakup.
- The scheme also aimed for a Sustained involvement of the Private Sector in certain areas. These areas include operations and ownership of rolling stock, development of freight and passenger terminals, development/operations of track infrastructure, etc.
National Infrastructure Pipeline
The National Infrastructure Pipeline (NIP) was launched for FY 2019-25. It is a first-of-its-kind, whole-of-government exercise that aims to provide world-class infrastructure to citizens and improve their quality of life. The scheme aims to capture the infrastructure projects worth Rs. 100 cr and above. The scheme aims to improve project preparation and attract investments into infrastructure. NIP aims to boost the economy to create more employment opportunities in different sectors. It also strives to provide better infrastructure for all sectors. It will also enhance ease of living for its citizens and make growth more inclusive. The pipeline also reduces aggressive bids/failure in project delivery, and ensures enhanced access to sources of finance as a result of a boost in investor confidence. The National Infrastructure Pipeline is also aiming to build investor confidence by actively monitoring projects.
Jal Marg Vikas Project (JMVP)
The scheme was launched for the capacity augmentation of National Waterway 1 (NW-1). Inland Waterways Authority of India is the nodal agency for implementing the Jal Marg Vikas Project (JMVP). The project is technically and financially supported by the World Bank for the 1,393 km long stretch of NW-1 from Varanasi (Uttar Pradesh) to Haldia (West Bengal).
Way Forward
The schemes launched by the government of India have yielded positive results in the ‘Ease of Doing Business Ranking’ and the Logistics Performance Index. From dedicated freight corridors to Bharatmala and Udan to Sagarmala project (Covered in the Previous story), every project has been aided by these schemes. India has also improved in the Inland waterways front. A total of 111 Inland waterways have been declared so far. The interconnections in the mode of transportation for people and businesses have integrated the whole country in new ways.