‘Special incentives must to promote logistics, warehousing

Source: The Hitavada      Date: 03 Jul 2017 11:32:31


Business Bureau

IN AN attempt to promote logistics and warehousing activities in and around Nagpur, entrepreneurs associated with it have been demanding the policy makers to come out with a special incentive package for the region. Highlighting long distance between the city and various ports in the country, the entrepreneurs are demanding special concession in rail tariff for movement of bulk cargo. “Almost all the ports are located at a distance of 850-km to 1000-km from the city which escalates logistics cost and subsequently impacts Exim trade in the region.

We want the Government to provide at least 20% discount in existing tariff to create level playing field,” said Sudhir Agrawal, President of Nagpur Custom House Agents Association and member of the Vidarbha Industries Association (VIA).

Shivkumar Rao, another member of VIA, also emphasised on special incentives to boost the sector. “Heavy cost of transportation between the city and various ports has been making the trade nonviable here in the region. The prevailing rates are so high that one has to shell out about Rs 30,000 to send a container (one TEU) from Nagpur to Mumbai.

While it takes only Rs 10,000 to send the same container from Mumbai to Dubai,’ he pointed out asking the policy makers to the prepare a clear cut policy for the sector keeping in view the interests of local players. Rao further said that there should be a ‘logistic city’ somewhere near Wardha Road. “Under the metro region plan, the Government has earmarked place of logistics and warehousing at the western and eastern corners of the city. But such provisions are missing in the southern end which is emerging as one of the busiest areas.

The Government should allow private players to set up warehouses in the area,” he said. “Considering the strategic location of the city, the Government should project Nagpur as a hub for storage of vehicles and spareparts. With the Goods and Services Tax (GST) in place, the city has potential of becoming a logistics hub. But to make it a reality, the Maharashtra Government will have to create a policy on the lines of Madhya Pradesh. We also the want the policy makers to attract investments in logistics for which there should be attractive capital incentive,” he said.

VIA members also raised demands for creation of multimodal logistics parks with bulk storage yards for industry, allotment of space for warehouses in all the MIDC areas and setting up of educational institutions to provide courses dedicated to warehousing and logistics sector.