The Uttar Pradesh Government on Tuesday decided to accord Industry status to the Warehousing and Logistics sector in the state, which will help reduce cost of setting up of parks and units by a good margin.
According to sources, Uttar Pradesh Chief Minister Yogi Adityanath has already given a green signal to the proposal, which would be put up before the State Cabinet soon.
“The Chief Minister had given consent to this proposal at a recent meeting as this sector had immense potential to create enormous job opportunities required as migrant labourers are returning from other states due to COVID-19 lockdown. By granting industry status to the sector, the state is on its way to establishing itself as a favourable destination for investments.”~Satish Mahana, Industrial Development Minister of UP, said in a release,
Infrastructure and Industrial Development Commissioner Alok Tandon while explaining the cost reduction said: “At present, change of land use from agriculture to commercial is charged at 150% of the circle rate. This will now be only 35% of circle rate. Now industrial land-use charges will be applicable to warehousing and logistics sector units and parks in Uttar Pradesh.”
Principal Secretary, Infrastructure & Industrial Development, Alok Kumar informed that activities of warehousing and logistics parks and units will be allowed for land-use of ‘industrial land’ of all industrial development authorities in accordance with the provision of ‘UP Warehousing & Logistics Policy 2018’.
He further said, “Now warehousing and logistics units will pay 1.5 times of the industrial rate to industrial development authorities for allotment and land use of areas reserved for industrial activity, which will enable substantial cost saving compared to existing costs of establishing units in the sector. Land costs will now be reduced to almost one-third.”
Speaking on similar lines, Sandeep Chadha, Founder and CEO, Warehouster Capital Advisors said, “This new move by the government will make financial borrowing and setting up of new warehouses easier in the state and will attract a large number of participants in the sector.”
“Whenever there is a disruption in the supply chain warehousing sector comes to its rescue. During the fallout of the COVID-19 crisis, the warehousing sector is the only one that has grown. The government has seen the potential of the sector and thus have taken this move and interest,” he adds.
The decision will attract investments supporting the various projects of the state such as Jewar airport, inland waterway, multi-modal transport and logistics hub, etc; and at the same time, complement the state’s unique location advantage with proximity to National Capital Region (NCR).