CII to help commerce ministry develop institutional mechanism for logistics sector

The Department of Commerce under the union ministry of commerce has signed a memorandum of understanding (MoU) with industry body Confederation of Indian Industry (CII) for evolving an institutional mechanism for the development of logistics sector in the country.

The government, which is making a big push for reducing logistics costs in the country, has recently entrusted the task of integrated development of logistics sector to the Department of Commerce.

The government aims to reduce the logistics cost in the country from the present 14 per cent of GDP to less than 10 per cent by 2022. For this purpose, the commerce ministry has initiated concerted effort in collaboration with other central ministries and state governments for simplifying the regulatory processes.

The logistics division of the Department of Commerce headed by a special secretary is working on a comprehensive action plan to reduce the cost of Exim and domestic logistics in the country by making it more efficient through easing of processes, induction of information technology and co-ordinated enhancement of logistics infrastructure in the country. The Government has recently granted infrastructure status to a number of logistics activities, which will enable them to avail cheaper and long term commercial loans.

Work has also been initiated on an integrated logistics portal that will be a transactional e-marketplace connecting buyers with logistics service providers with all government agencies such as customs, PGAs, port community systems, sea and air port terminals, shipping lines, railways etc.

In order to establish linkages with the government agencies, industry and academia, for developing a detailed action plan, the logistics division has planned to enter into formal partnership with all the stakeholders. It has now been proposed to:

  • Establish Logistics Working Group with representatives from DoC and Industry;
  • Foster focused engagement with the industry;
  • Collaborate with the concerned agencies, including state governments and other related agencies;
  • Undertake mutually agreed focused studies on logistics; and
  • Promote government policies on logistics.