Updated on January 06, 2025 02:49:22 PM
The State Logistics Policy in India is one of the developmental policies to enhance transport and supply chain networks in the state. Targeted at the management of the logistic activities, the State Logistics Policy in India provides direction on facilitation of the transport of goods, promotion of exports and imports, and reduction of the cost of transport. State logistics policies are further in sync with the National Logistics Policy that aims at raising efficiency and coordination in logistics flows and contributing to the growth of commerce and industry and job creation through the enhancement in connectivity—on road, rail, and waterways. The State Logistics Policies in India are prominent for attracting investment, for improvement of the logistics management and competitiveness on the state level.
The State Logistics Policy in India is initiated by different state governments to motivate infrastructure development and efficient logistics in the country. In accordance with the National Logistics Policy, the set goals of the State Logistics Policies are to build and improve logistics platforms, logistics networks, and diminish the total logistics cost. Every State Logistics Policy in India aims at the development of transport in road, railway, air and ports, modern warehousing facilities, and implementation of IT based technologies for tracking of the consignment. The State Logistics Policies in India mainly target realizing logistics or transportation costs, trade efficiency, and capacities of logistics management. State Logistics Policies stimulate investments, generate employment; assist the state economy by developing an efficient logistic backbone and make India a strategic player in the global supply chain network.
The State Logistics Policies in India are financial assistance schemes that offer multiple benefits to states with the aim to enhance economic activity in the logistics segment, such as:
The State Logistics Policy in India provides maximum subsidy rates and amount to businesses to ensure prevention of exploitation or unfairness of the intermediary. The State Logistics Policy in India is categorized under various programs, some of which are listed below:
Capital Investment Subsidy for Warehousing Infrastructure
| Incentives | Details |
|---|---|
| Purpose | Support development of modern warehousing and storage facilities |
| Subsidy Percentage | 25-30% of project cost |
| Maximum Cap | ₹5 crore per warehouse |
| Eligible Projects | Cold storage, warehouses, logistics parks |
| Eligibility Criteria | Projects located in designated logistics zones or industrial clusters |
Interest Subsidy for Logistics Infrastructure Loans
| Incentives | Details |
|---|---|
| Purpose | Reduce interest burden on loans for logistics infrastructure projects |
| Subsidy Rate | 3-5% interest rate subsidy |
| Duration | Up to 7 years |
| Eligible Projects | Freight terminals, logistics parks, warehousing units |
| Eligibility Criteria | Project must be approved by a designated logistics authority in the state |
Land Lease Subsidy for Logistics and Warehousing Facilities
| Incentives | Details |
|---|---|
| Purpose | Lower land acquisition and leasing costs for logistics infrastructure |
| Lease Subsidy | 30-50% reduction on lease rate |
| Duration | Up to 10 years |
| Eligible Projects | Truck terminals, cold chain facilities, multimodal logistics parks |
| Eligibility Criteria | Located in priority logistics zones as per state government guidelines |
Power Tariff Subsidy for Logistics Facilities
| Incentives | Details |
|---|---|
| Purpose | Reduce power costs for logistics infrastructure projects |
| Power Subsidy Rate | ₹1.00 - ₹1.50 per kWh reduction in tariff |
| Duration | Up to 5 years |
| Eligible Beneficiaries | Logistics parks, warehousing units, cold storage facilities |
| Eligibility Criteria | Facilities must be engaged in state-recognized logistics activities |
Transport Vehicle Subsidy for Logistics Providers
| Incentives | Details |
|---|---|
| Purpose | Encourage adoption of eco-friendly and efficient transport vehicles in logistics |
| Subsidy Amount | 25% subsidy on purchase of new transport vehicles (electric or hybrid) |
| Maximum Cap | ₹10 lakh per vehicle |
| Eligible Beneficiaries | Logistics service providers and fleet operators |
| Eligibility Criteria | Vehicles must be used primarily for logistics purposes and registered in the state |
The State Logistics Policy in India is designed to promote the growth of the logistics industry in the country mainly through providing appropriate financial support and infrastructure facilities. The State Logistics Policy in India reduces transport costs, advances warehouses, provides greater connectivity, and implements environmentally friendly measures, efficient supply chains are created through the policy framework that can be constructed by states. The State Logistics Policies in India works in alignment with the objectives of the National Logistics Policy as the outcome accelerates state economies, draws in investments, fosters employment opportunity, and cuts across warehousing, transporting, and logistic management segments. Collectively, the State Logistics Policy in India makes up a strong framework of the logistics industry that is an active participant in the global supply framework and simultaneously boosting localized development and adoption.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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The State Logistics Policy in India is a policy to improve logistics infrastructure and services such as IT Parks, Dedicated Freight Corridor, Multi modal terminals, and Transport Logistics Policy under synchronization with National Logistics Policy.
The State Logistics Policy in India offers benefits such as cost saving, efficient physical infrastructure, investment pull in warehousing and logistics and transportation sectors, supports sustainable environmental practices and employment generation.
The State Logistics Policy in India caters to environmental concerns by encouraging green development in logistics citing incentives to the use of electric or hybrid trucks besides constructing environmentally friendly warehousing facilities.
Companies can get the State Logistics Policy on their own through the state level logging authorities or agencies as the incentives vary depending on state instructions and applications, and the methods to obtain them may also differ.
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