Kerala State Government Eyes Private Investment with Draft State Logistics Policy

As the Kerala state government releases its Draft Logistics Policy, the state takes a significant step towards bolstering its logistics sector. Unveiled by Industries Minister P Rajeeve, the Draft Policy aims to attract private-sector investment into creating and improving supply chain and logistics infrastructure in the state. To that end, the Draft Policy offers lucrative subsidies and streamlining approval processes for logistics parks.

The Draft Policy includes a provision for a notable subsidy of INR 7 crore toward the establishment of 10-acre logistics parks – a key highlight for the investors. Additionally, mini parks, spread over 5 acres, are eligible for an INR 3-crore subsidy, as outlined in the policy. Further, such logistics parks are proposed to be declared as industrial zones.

The Minister emphasized that the state of Kerala holds immense potential for the logistics sector considering the influx of products worth INR 1.5 trillion from other states. He stressed the need to fully capitalize on this opportunity to drive economic growth and job creation within the state.

The Draft Policy recommends the establishment of a single-window system for the approval of parks, making the process more streamlined and smoother for investors and developers. It also places significant emphasis on skill development, recognizing the need for specialized training in storage, transportation, and other logistics services.

The Draft Policy has been prepared after considering and collecting feedback and suggestions from industry stakeholders from the region through the Logistics Consultative Forum. The Dorum served as a platform to gather insights and feedback from experts in the field, ensuring that the policy aligns with the needs and aspirations of the logistics industry.

The state of Kerala has proved itself to be a significant contributor to the FMCG Sector in India. And the Government – both at state and centre levels – is committed to leveraging this potential to drive employment and economic development through a comprehensive policy framework.

Looking ahead, the state-level logistics coordination committee, headed by the Chief Secretary, and the logistics cell, headed by the Principal Secretary of the Industries Department, are expected to play crucial roles in implementing the policy initiatives outlined in the draft.

With the unveiling of the draft logistics policy, Kerala aims to tap into the country’s rapidly growing logistics industry, which is expanding at a rate of 8.8% annually. The policy signals the state’s commitment to fostering a conducive environment for private investment and driving innovation and growth in the logistics sector.

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