Significant progress made under National Logistics Policy to reduce logistics costs

The Network Planning Group, which includes heads of the planning divisions of various infrastructure Ministries, has convened 83 meetings, during which 228 projects (MNRE – 1, MoHUA – 12, MoPNG – 4, MoPSW – 3, MoR – 85, MoRTH – 108, NICDC – 12, MoCA-3), with an estimated cumulative cost of ₹15.89 Lakh Crore, have been evaluated.

To complement the PM GatiShakti NMP, the National Logistics Policy (NLP) was launched on 17th September 2022 by Prime Minister Shri Narendra Modi. The vision is to drive economic growth and enhance business competitiveness through an integrated, seamless, efficient, reliable, green, sustainable, and cost-effective logistics network by leveraging best-in-class technology, processes, and skilled manpower. This initiative seeks to reduce logistics costs and improve overall performance.

Significant progress has been made under the National Logistics Policy. The Service Improvement Group (SIG) is well established with the involvement of 36 business associations in the field of logistics So far, 15 SIGs have been held and of 126 issues received, 71 issues have been resolved. Sectoral Plans for Efficient Logistics (SPEL) is being developed to address sector-specific needs and streamline the movement of bulk and break-bulk cargo. Till now, SPEL for Coal has been notified and finalized for Cement sector.

Logistics-related courses have been introduced in 100+ universities/institutions to enhance logistics education and skill development. 26 States/UTs have notified their respective State Logistics Policies, aligning with the NLP. 19 States/UTs have allotted industry status to logistics sector.

Unified Logistics Integrated Platform (ULIP) has integrated 34 logistics-related digital systems /portals across 11 Ministries / Departments to streamline doing business in the logistics sector. For tracking and tracing 100% of India’s containerized EXIM cargo, the Logistics Data Bank (LDB), has been developed.

The ‘Guidelines for Preparing City Logistics Plans for Indian Cities’ was launched on 15^th October 2024 to help cities customize their logistics planning according to unique visions, objectives, and local characteristics. MoU with NCAER was signed on 5th July 2024 to develop a framework for assessing logistics costs nationwide and conduct a comprehensive study for 2023-24.

The PM GatiShakti National Master Plan (NMP) for multi-modal connectivity, inaugurated by Prime Minister on 13th October 2021, has recently marked its third anniversary, achieving significant milestones in transforming the nation’s infrastructure landscape. On occasion of the third anniversary of PM GatiShakti, Union Minister of Commerce & Industry, Shri Piyush Goyal, inaugurated the beta version of District Master Plan for 27 aspirational districts across the country.

Over the past three years, PMGS NMP has achieved commendable milestones. The NMP platform has integrated 1685 data layers from States/UTs (959) and 44 Central Ministries/Departments (726). Through its robust inter-ministerial institutional framework, PM GatiShakti is revolutionizing India’s infrastructure planning.

In the financial year 2022-23, a total of 71 projects were evaluated, amounting to ₹4.95 Lakh Crore. Following that, in the financial year 2023-24, 74 projects were assessed, with a combined worth of ₹8.45 Lakh Crore. So far in 2024, 83 projects have been evaluated, totaling ₹2.49 Lakh Crore.

In the last meeting held on 14/11/2024, the Network Planning Group (NPG) evaluated eight projects based on the principles of PM GatiShakti: integrated development of multimodal infrastructure, last-mile connectivity to economic and social nodes, intermodal connectivity, and synchronized project implementation. Among the projects evaluated were seven by the Ministry of Railways: The Wardha - Balharshah 4th Line, Itarsi - Nagpur Quadrupling, Gondia - Balharshah Doubling, Aluabari - New Jalpaiguri Quadrupling, Ballari - Chikjajur Doubling, Hosur - Omalur Doubling, and Secunderabad - Wadi Quadrupling. Further, the Ministry of Road Transport and Highways presented the Imphal - Kakching - Lamkhai Road on NH-137A.

The NMP platform has played a crucial role in identifying last mile connectivity gaps and intersections with existing as well as upcoming physical infrastructure, such as pipelines, OFC cables, roads, and rail crossings, as well as social, economic, and logistic nodes.

As India progresses towards Viksit Bharat 2047 vision, PM GatiShakti is poised to play a crucial role in expanding multi-modal infrastructure, developing Smart Cities, and enhancing the nation’s industrial capabilities through Industrial Corridors and Mega Investment Regions.

National Logistics Policy advances integrated multimodal infrastructure and digital interoperability, accelerating project evaluation and last mile connectivity under PM GatiShakti. The National Logistics Policy establishes an integrated framework to lower logistics costs by coordinating multimodal infrastructure planning and digital interoperability. The Network Planning Group evaluates and prioritizes rail, road and other infrastructure projects according to PM GatiShakti principles to close last mile and intermodal connectivity gaps. Operational tools include the Service Improvement Group, Sectoral Plans for Efficient Logistics, State Logistics Policies, the Unified Logistics Integrated Platform for system integration, and the Logistics Data Bank for container tracking, supported by capacity building and city planning guidance.