The Tamil Nadu government will provide projects with customised incentives worth more than Rs 500 cr in an effort to boost the logistics industry significantly. The government will collaborate with a financial institution like NIIF (National Investment & Infrastructure Fund), TNIF (Tamil Nadu Infrastructure Fund), or any other appropriate sources for leveraging funds in order to attract and allow financing for the development of large-scale logistics infrastructure.
The most recent logistic policy states that in order to promote city logistics, the government will encourage the phased development of a logistics master plan for the state’s main cities and metropolitan areas. It will select and reserve land parcels, each at least 50 acres in size, in key state locations for the construction of PFTs (Private Freight Terminals), which will be developed with private funding and multi-modal logistics parks.
The govt will encourage the phased development of a logistics master plan for the state’s main cities and metropolitan areas
To make doing business in the state easier, the government, through the housing and urban development department, will reclassify the warehouse sector to the industries group. It will also require current warehouse developers to upgrade their projects in a certain amount of time in order to streamline the registration process under the new subcategory under the industries category. According to government sources, one of the important levers for boosting the competitiveness of businesses is the availability of high-quality logistics services at reasonable costs. It promotes the health of the manufacturing and other export industries by providing access to numerous markets at affordable rates.
It promotes the health of the manufacturing and other export industries by providing access to numerous markets at affordable rates
Road transport in Tamil Nadu significantly dominates the industry of freight transportation services. For instance, only 10% of import-export cargo is transported by train to and from state ports along a significant number of corridors. Additionally, the majority of the state’s rail traffic movements take place within or close to other states, with long-haul interstate movements being dominated by vehicle transport. Additionally, only a few paths are covered by coastal shipping services and domestic container train services.
In order to resolve these issues, the government will, in collaboration with the ministry of railways or its agencies and with private assistance, support the launch of container rail services and Kisan rail services along key corridors on a pilot basis. It will evaluate and determine the most advantageous coastal shipping routes in order to support and promote intermodal transportation and provide affordable services.
The government will promote the availability of a fleet of reefer vehicles by offering financial assistance to logistics or trucking companies on registration fees for the purchase or retrofit of reefer trucks in order to strengthen the cold chain infrastructure and increase the market for perishable commodities produced in the state. It will encourage the mechanisation and automation of the state’s warehousing industry in order to increase productivity, and manage capacity, and service quality.