Modi 2.0: Separate Logistics dept likely in Centre

As the Modi 2.0 government takes oath on Thursday, the logistics industry is hoping for some breakthrough reforms in the sector.

In one such proposal, the commerce ministry has proposed to create a separate department for trade facilitation and logistics among the different government agencies concerned. The much publicised 100-day plan of the new Modi government may include the proposal.

The ministry said that the Economic Advisory Council to the Prime Minister (PMEAC) has also recommended for it earlier, and it will lead to better coordination.

Logistics wing in the commerce department of the government is busy developing an integrated action plan for the logistics sector in the country, by revamping old policies, removing bottlenecks and making it efficient with technology.

However, there is no dedicated department to look at all the issues related to logistics covering various modes of shipment such as sea, roads, and railways.

India’s logistics and transportation costs are estimated at 14.4% of the gross domestic product, much higher than China’s 8%. The PMEAC, in January, had suggested setting up of a separate logistics department to boost the transport sector and to improve the ease of doing business.

The 10-point charter has also proposed rolling out policies on national and multi-modal logistics, aka the integrated national logistics action plan. As per the plan, a Multi-Modal Transportation of Goods (MMTG) Bill will be laid in Parliament to replace the existing MMTG Act, 1993.

The new bill is aimed to introduce concepts such as regulation of self-regulatory agencies and facilitation of smooth movement of products for both domestic consumption and foreign trade.

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