The Punjab government is about to establish its first logistics policy, which will provide fiscal and non-financial benefits for investing in multi-modal logistics parks, transportation centers, wayside amenities, border district specialized warehouses, and specialized commercial vehicle fleets.
The Integrated Logistics and Logistics Park Policy, which is currently being finalized by the industries for state approval, aims to strengthen the viability of goods produced in the state by reducing logistics costs from 13% to 8% through efficiency improvements. The final text of the policy promotes logistics as a thrust area, defining it as a service enterprise eligible for fiscal incentives such as repayment of state goods and services tax (SGST), employment general subsidy, and exemption from land use modification. Anchor units will be multi-modal logistics parks (MMLPs) and logistic facilities with a minimum fixed capital investment (FCI) of 100 crore or direct employment creation for 250 people. They will be entitled to an investment subsidy of 100% repayment of net SGST for a period of 15 years, subject to a 200% FCI, a local employment generation subsidy of 36,000 per employee per year for women and SC/BC/OBC employees, and a 100% exemption from for 15 years. Similarly, logistics parks having a minimum area of 25 acres and an investment ratio of at least 25 crore will be permitted. A minimum of 85% of the whole land must be used, with a maximum of 20% allowed for industrial activity. Except for commercial activities, no CLU or EDC will be imposed on any element of the logistics park. Trucker parks and wayside facilities with a minimum of 10 acres located along or two kilometers along both ends of state or national highways are also envisaged, with 100% exemptions from CLU and EDC and stamp duty reimbursement. Incentives have also been offered for specialized commercial vehicle fleets and border depots.
The main aim of the policy is reducing logistics costs from 13% to 8% through efficiency improvements
During a discussion on arrangements for the Progressive Punjab Investor Summit 23 in February 2023, Chief Secretary VK Janjua instructed ministries to conclude their work and have the industrial, logistical, and information technology policies in place before the conference. The federal government has also requested the states to develop their own strategies to strengthen logistics as part of the PM GatiShakti programme. The industries department’s planned policy has focused on logistics for exports and agricultural, cargo smart cities, logistics parks, and the expansion of warehousing facilities. On Tuesday, Chief Minister Bhagwant Mann will meet with business groups and entrepreneurs to review the proposed “Punjab Industrial and Business Development Policy-2022.” Originally set on November 10, the meeting was delayed at the last moment. On September 9, the state administration made the draft of the industrial policy public and then distributed it to 15 sectors for recommendations and comments. The prior policy came to an end on October 17.