All about National Logistics Policy

National Logistics Policy: Launch date

Prime Minister Narendra Modi on September 17, 2022 launched the National Logistics Policy in New Delhi that will bring an end to the silo system and bring all departments and states together under one umbrella. “To ensure quick last mile delivery, end transport-related challenges, save time and money of the manufacturers, prevent wastage of the agro-products, concerted efforts were made and one of the manifestations of those efforts is today’s National Logistics Policy”, said Prime Minister Narendra Modi.

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With India emerging as a world manufacturing hub and logistics considered as the lifeline of the economy, the National Logistics Policy together with performance will be a driving force for the Indian economy. The National Logistics Policy will work to address challenges facing the transport sector and bring down the logistics cost of businesses from 13-14 percent to a single digit. Drone technology would emerge as an important aspect of the transport and Logistics sector, especially for remote areas.

The National Logistics Policy is in line with India’s several crucial initiatives in the transport infrastructure segment including UDAAN, Bharatmala, Sagarmala, National Infrastructure Pipeline and the PM GatiShakti National Master Plan.

National Logistics Policy: Vision

The aim of the National Logistics Policy is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in India for accelerated and inclusive growth. With the National Logistics Policy, efforts to reduce the cost of logistics in India to be comparable to global benchmarks by 2030 will be made. Additionally, this will help in creating data driven decision support mechanisms for an efficient logistics ecosystem.

Shishir Baijal, chairman and managing director, Knight Frank India said, “One of the most important policies, the new Logistics Policy is a fine example of inter-ministerial collaboration. This policy will further help integrate the supply chain making it more efficient driving down logistics and inventory costs and reduce bottlenecks at the same time make it more agile and responsive. The Multi – modal logistics park, which identifies 35 locations covering the length and breadth of the country, will be instrumental in creating new centers of growth.”

With this effective implementation of the National Logistics Policy, India aspires to be among top 25 countries in the Logistics Performance Index ranking by 2030.

National Logistics Policy: Implementation through Comprehensive Logistics Action Plan (CLAP)

The National Logistics Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP). The interventions proposed under the CLAP are divided into eight key action areas. These include:

Integrated Digital Logistics Systems
Standardisation of physical assets and benchmarking service quality standards
Logistics Human Resources Development and Capacity Building
State Engagement
EXIM (Export-Import) Logistics
Service Improvement framework
Sectoral Plan for Efficient Logistics
Facilitation of Development of Logistics Parks.

“The National Logistics Policy’s focus on promoting green logistics, by increasing the freight share for sustainable modes of transport like rail, inland waterways and coastal shipping is also a welcome move. The Comprehensive Logistics Action Plan and its carefully crafted eight pillars will help operationalise the NLP in its quest to build sound logistics infrastructure in the country helping make Indian exports competitive and provide a gateway for businesses to seamlessly mesh with global value chains,” said Rizwan Soomar, Chief Executive Officer, and Managing Director –DP World Subcontinent.

National Logistics Policy: Creation of Unified Logistics Interface Platform (ULIP)

A very critical part of the National Logistics Policy is use of technology and innovation. Unified Logistics Interface Platform (ULIP)-You Leap will be developed as part of the National Logistics Policy to help different government and private agencies; shippers, service providers enable information exchange on a real time basis in a confidential manner. ULIP will bring all the digital services related to the transportation sector into a single portal, freeing the exporters from a host of very long and cumbersome processes. Development of ULIP is one of the eight interventions proposed under the comprehensive logistics action plan, through which the policy will be implemented.

According to Moneycontrol.com, under ULIP 17 digital systems from seven ministries namely Ministry of Civil Aviation, Ministry of Commerce and Industry, Ministry of Electronics and Information Technology, Ministry of Finance, Ministry of Ports, Shipping and Waterways, Ministry of Road Transport and Highways and Ministry of Railways will be integrated, that will give information to logistics companies about cargo movement in the country. ULIP also has data integrated from the National Industrial Corridor Development Corporation.

Chandranath Dey, Head – Operations, Business Development, L&I Consulting & PAGI, Logistics & Industrial, JLL, India said, “NLP stands on the dynamic pillars of ‘cooperative federalism’ where all Logistics stakeholders come together to ride technology platforms like ULIP and e-Log to reduce redundancy, increase speed and efficiency to be globally competitive.”

National Logistics Policy: Launch of Ease of Logistics services platform

Under the National Logistics Policy a new digital platform Ease of logistics Services -E-Logs has been started. “Through this portal, industry associations can directly take up any such matters which are causing problems in their operations and performance with the government agencies. A complete system has also been put in place for the speedy resolution of such cases,” said Modi.

National Logistics Policy and PM GatiShakti National Master Plan

Logistics efficiency is a function of infrastructure, services (digital systems / processes / regulatory framework) and human resource. To address logistics efficiency in India, a step by step approach has been taken. PM GatiShakti National Master Plan (NMP), focuses on integrating existing and proposed infrastructure development initiatives of different agencies, to ensure first and last mile connectivity, for seamless movement of people and goods. While development of integrated infrastructure and network planning will be addressed through the PM GatiShakti National Master Plan, the National Logistics Policy is necessary for efficiency in services (processes, digital systems, regulatory framework) and human resource and is the next logical step in this direction. The National Logistics Policy will provide a comprehensive agenda for development of the entire logistics ecosystem.

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal said, “The National Logistics Policy would give India’s logistics sector a new direction. COVID-19 had displayed the strength of India’s logistics sector in front of the world and food grains and other essential items reached all people on time, helping us achieve new milestones in international trade. National Logistics Policy and GatiShakti will work as double engines for logistics.”

FAQs

How will Unified Logistics Interface Platform (ULIP) under the National Logistics Policy help?

With Unified Logistics Interface Platform ULIP, all the digital services related to the transportation sector will be brought into a single portal, helping exporters from a host of very long and cumbersome processes.

How will Ease of Logistics services platform under National Logistics Policy help?

With Ease of logistics Services -E-Logs industry associations can directly take up matters which are causing problems in their operations and performance with the government agencies and speedy resolution will be provided for such cases.

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Anuradha Ramamirtham

With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
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