Logistics Strategy 2024

To lead Maharashtra towards progress and to boost development over the next 10 years, as well as to create a large number of jobs in the state, Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis, Deputy Chief Minister Ajit Pawar, and Industries Minister Uday Samant approved the Logistics Policy during the cabinet meeting held on August 7, 2024.

Due to the special incentives and facilities offered to projects under this state logistics policy, approximately 5 lakh direct and indirect jobs are expected to be created in the state. Additionally, an overall estimated revenue generation of Rs. 30,573 crore is anticipated over the next 10 years.

The Logistics Policy 2024 will play a crucial role in achieving the state’s goal of a $1 trillion economy by 2028, as recommended by the State Economic Advisory Council. Based on the Central Government’s National Logistics Policy 2022, logistics costs in India currently range between 14% to 15%. A primary reason for the high cost of logistics is the reliance on road transport for freight. Hence, this policy has been prepared with a focus on the development to be undertaken over the next 10 years.

While formulating this policy, various stakeholders in the logistics sector were consulted from time to time. The Logistics Policy 2024 has been prepared based on discussions with various state government departments such as MMB, JNPA, BPT, MSRDC, MMRDA, MADC, and CIDCO, as well as taking into account the feedback received from these departments and the experience gained during the implementation of the previous Logistics Park Policy 2018.

Key Features:

a) By 2029, dedicated logistics infrastructure will be developed across more than 10,000 acres throughout the state, as follows:

i) International Mega Logistics Hub: It is planned to develop an International Mega Logistics Hub spread over 2,000 acres of land in the Navi Mumbai-Pune area, adjacent to the proposed new International Airport at Panvel. Due to its manufacturing and service industries, the Navi Mumbai region has quickly become a major center of industrial development near the country’s financial capital, Mumbai. The comprehensive import-export component of JNPA at well-established Navi Mumbai has made it a key hub for the logistics sector. The region from Navi Mumbai to Pune, with industrial estates like Taloja, Patalganga, Rasayani, Khopoli, Mahad, Roha, Chakan, and Talegaon, has become a significant center of international trade and industry.

ii) National Mega Logistics Hub: A National Mega Logistics Hub will be set up on 1,500 acres of land in the Nagpur-Wardha region, connected to the Hindu Hrudayasmrat Balasaheb Thackeray Maharashtra Samriddhi Highway. Nagpur district, with its unique geographic central location in the country, is well-suited for the development of a logistics hub. The district has four national expressways and a dedicated freight corridor under development, making it a major freight hub. To develop this National Mega Logistics Hub, Rs. 1,500 crore will be allocated.

iii) State Logistics Hub: Five state logistics hubs will be developed on at least 500 acres each in regions like Chhatrapati Sambhaji Nagar – Jalna, Thane-Bhiwandi, Ratnagiri-Sindhudurg, Pune-Purandar, and Palghar-Vadwan. To develop these state logistics hubs, Rs. 2,500 crore will be allocated.

iv) Regional Logistics Hub: Logistics facilities will be developed on at least 300 acres in five regional logistics hubs, including Nanded-Degalur, Amravati-Badnera, Kolhapur-Ichalkaranji, Nashik-Sinnar, and Dhule-Shirpur. To develop these regional logistics hubs, Rs. 1,500 crore will be allocated.

v) District Logistics Nodes: Based on an analysis of each district’s basic capacity, inherent business opportunities, and economic development centers, 25 District Logistics Nodes will be developed on a total area of 100 acres each, with at least two to three locations per district. These nodes will be connected under a hub-and-spoke model, with 15% of the MIDC area in the district reserved for private sector logistics nodes.

b) Incentives for Logistics Park Developers:

i. Financial Incentives: Capital grants are sanctioned under this policy to eligible Logistics Parks to be set up in Zones I and II as prescribed under this policy. For instance: – Small Logistics Park: Minimum 20% capital subsidy is admissible to entities with an investment of Rs. 10 crores. – Large Logistics Park: Minimum 15% capital subsidy is admissible to entities with an investment of Rs. 100 crores, established on a minimum of 50 acres of land. – Extra Large Logistics Park: Minimum 10% capital subsidy is admissible to entities with an investment of Rs. 400 crores, spread over at least 200 acres of land. ii. Non-Financial Incentives: Logistics parks established in Zones I, II, and III are eligible for non-financial incentives like industry and infrastructure sector status, relaxation in ground coverage, zone restrictions, height restrictions, 24×7 operations, support for skill and entrepreneurship development, single-window system, and ease of doing business.

iii. Multi-Purpose Logistics Parks: In urban or semi-urban areas with a built-up area of at least 20,000 sq. ft., logistics facilities will be referred to as “Multi-Purpose Logistics Parks,” with a minimum investment of Rs. 5 crore. Due to challenges in land availability in metropolitan areas like Thane, Mumbai, and Pune, multi-purpose logistics parks are proposed for optimal land use.

c) Ease of Doing Business for Independent Logistics Entities: MSMEs engaged in core logistics processes/facilities within logistics parks, and independent entities outside them, will receive state financial and non-financial support, including exemptions from prior permissions, interest subsidies, stamp duty waivers, industrial-rate electricity, technology upgrades, and other business facilitation measures.