New Delhi: In a bid to turn the state into a logistics hub and boost exports, the Uttar Pradesh government led by Chief Minister Yogi Adityanath, will develop a network of dry ports. Ahead of the Global Investors Summit to be held in February 2023, the state has also received investment from international as well as domestic companies in this sector.
It is noteworthy that in the new Warehousing and Logistics Policy 2022 of the state government, investors have been encouraged for investment in warehousing and logistics as well as in dry ports.
Uttar Pradesh is a landlocked state with various export clusters and has a lot of potential for the development of dry ports in the state for convenient transportation of export cargo to sea ports. Team Yogi, which went abroad for the Global Investors Summit, has received investment proposals from many countries in this sector. In addition to this, a lot of domestic investors are eager to invest in dry ports.
Scheme to attract investment in modern facilities
Eligible Dry Port Project means an Inland Container Depot (ICD) and Container Freight Station (CFS) developed in a minimum of 10 acres of land with a minimum capital investment of Rs.50 crore and has such permanently established ( fixed) or other installations, equipment, machinery, etc., which provide services consisting of handling or clearance of loaded import or export containers and storage of custom bonded, or non-bonded cargo under customs control.
The state government aims to strengthen existing dry ports, inland container depots, freight stations and logistics terminals at suitable locations with access to road corridors, quality network of 4-lane and 6-lane highways, interlinking roads etc. Through this policy, the state government plans to attract investment for the development of dry ports with modern facilities.
Concessions will be given by state govt for development of dry ports
The state government will provide various concessions for the development of dry ports. About 100 percent exemption in stamp duty will be provided on purchase of land or land taken on lease (for a minimum period of 10 years) for setting up ICD, CFS, AFS projects in the state. Similarly, 75 percent concession will be given in land use conversion charge and 75 percent exemption will be available in development fee.
Additionally, these projects will also be allowed up to 60 percent ground coverage. However, all these proposed relaxations will be admissible only on submission of bank guarantee of equivalent amount. Apart from this, capital subsidy at the rate of 25 percent will be provided on eligible capital investment. Meanwhile, new projects or industrial units will get 100 percent exemption in electricity duty for a period of 10 years.
In addition, each project will be paid a skill development subsidy in the form of reimbursement of honorarium of Rs 1000 per trainee per month for 6 months subject to a maximum of 50 trainees per year for 5 years. If there is a need to build a police station, outpost in a dry port, air freight station, then land will be made available free of cost to the developer by the concerned authority for its establishment.
Logistics infrastructure being developed in state
Logistics infrastructure in Uttar Pradesh includes Rail Linked Joint Domestic and Exim Terminal, Rail Linked Private Freight Terminal at Moradabad and Inland Container Depot (ICD) at Kanpur, ICD at Dadri Terminal. The state is benefiting from terminals being developed near or along inland waterways and multi-modal terminals being developed near or along freight corridors.
A Multi Modal Logistics Hub (MMLH) at Dadri and Multi Modal Transport Hub (MMTH) at Boraki (Greater Noida) are also being developed, which will give further boost to this sector. India’s first ‘Freight Village’ in Varanasi is being developed in an area of 100 acres. The village will act as a trans-shipment hub for inbound and outbound cargo, connecting the export centers of eastern Uttar Pradesh with the ports of eastern India.
Several companies are ready to invest in logistics
Numerous foreign companies have expressed their desire to invest in the logistics sector in Uttar Pradesh. MoUs have also been signed with many investors regarding this. MoUs worth Rs 1300 crores has been signed with Saraf Group of UAE, while Hindustan Port Pvt. Ltd. has signed an MoU worth Rs.200 crores.
Apart from this, Mobility Infrastructure Group of US has signed MoUs worth Rs 8200 crores, while Best Bay Trucking has signed MoUs worth Rs 1000 crores. Moreover, Singapore’s Star Consortium Pvt. Ltd. has inked MoU worth Rs 1000 with the UP government.
In addition to this, DP World of UAE has also agreed to invest in setting up a joint venture in the field of logistics and cargo. Along with this, he has also demanded land with highway and rail connectivity near Kanpur, so that a big logistics plant could be set up. Under the joint venture, the company will require 2000 acres of land. Investment in this sector will provide employment opportunities to thousands of people in Uttar Pradesh.
