Budget push for logistics to boost hinterland manufacturing

The government’s budgetary efforts to promote concerted logistics movement are expected to drive manufacturing in the country's hinterland. The rush for private manufacturers to find locations for plants at coastal towns will be reduced once proper logistics is in place to evacuate goods, say industry experts.

Finance minister Nirmala Sitharaman said in her Budget speech that government targets to develop 100 cargo terminals for multimodal logistics facilities over the next three years. Under the PM Gati Shakti project, for accelerating economic growth and sustainable development, the government plans to drive seven engines — roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure. All seven engines will pull forward the economy in unison, she added.

The projects pertaining to the seven engines in the National Infrastructure Pipeline (NIP) will be aligned with PM Gati Shakti framework. “The touchstone of the master plan will be world-class modern infrastructure and logistics synergy among different modes of movement – both of people and goods – and location of projects. This will help raise productivity, and accelerate economic growth and development,” she said.

The government plans to establish a Unified Logistics Interface Platform (ULIP) for the data exchange among all mode operators. “This will provide for efficient movement of goods through different modes, reducing logistics cost and time, assisting just-in-time inventory management, and in eliminating tedious documentation. Most importantly, this will provide real time information to all stakeholders, and improve international competitiveness. Open-source mobility stack, for organising seamless travel of passengers will also be facilitated,” she added.

Contracts for implementation of multimodal logistics parks at four locations through public private partnership mode will be awarded in 2022-23. Railways will develop new products and efficient logistics services for small farmers, and small and medium enterprises.