Logistics is the backbone of an economy and it is a significant part of supply chain management which refers to a robust network of roadways, railways, airways, and waterways engaged in storing, managing, transporting, and delivering products from the point of origin to the point of termination. India’s logistics ecosystem is pegged at $215 billion and is expected to grow at a CAGR of 10.5 percent by 2025. Further, the sector is an essential aspect of all industries regarding operational efficiency.
As per the Logistics Ease Across Different States (LEADS) Index 2021, the state of Odisha has improved its rank from 10th place in 2019 to 7th place in 2021. The State has also been ranked in the ‘Achievers’ category in the LEADS Index 2022.
The policy envisions creating an integrated logistics ecosystem in Odisha, to enhance competitiveness, operational efficiency, and sustainability through innovation, governance, transparency, quality, and disruptive technologies; thereby strengthening the State's position as a preferred destination for trade and commerce.
The Policy shall be implemented through the following approach:
Establishment of a State Logistics Cell- The cell will act as a think-tank to identify areas and provide overall direction to the growth of the logistics sector in the state.
Establishment of a Logistics Policy Cell- The cell provides hand-holding support to the stakeholders to get all the requisite approvals and clearances relating to logistics operations.
City Logistics Co-ordination Committee- The State proposes to develop City Logistics Coordination Committee in 2 municipalities initially to improve urban freight efficiency and ease cargo movement.
The incentives are classified into the following segments:
Building Logistics Infrastructure
| Incentive Name | Incentive Particulars |
|---|---|
| Development of logistics infrastructure not falling under the New Age Mega Category |
The Government of Odisha invites private developers to construct rail or road-connected ICDs/ Free Trade Warehousing Zones / Dry Ports/ Logistics Parks/ Integrated Logistics Parks/ Industrial Clusters/ MSME Parks, and any other logistics infrastructure across the State at strategic locations through PPP or Private Development mode. For these projects, the Govt. of Odisha shall provide the following incentives: Projects developed on land through IDCO or any other Government Land
Last-mile connectivity support from State Government The Government shall provide access to utilities such as water and power and provide external infrastructure to the projects on both the categories mentioned above, such as rail connectivity (from the nearest railway station), Road Connectivity (from the nearest state highway / national highway) etc. The total cost of infrastructure development shall not exceed 10% of the fixed capital in building, plant, and machinery (excluding land) or INR 10 Crores (For rail-based infrastructure, the upper cap will be 20% or INR 25 crores), whichever is lower. This support is provided for PPP projects and projects developed by private developers. |
Skill Development in the logistics sector
| Incentive Name | Incentive Particulars |
|---|---|
| Establishment of Centre of Excellence (CoE) |
The State Government shall establish a Centre of Excellence (CoE) along with Skill Development and Technical Education Department. The CoE shall be developed in association with leaders in the industry segment. The objective of the CoE is to analyse skill requirements and formulate various skill development modules, which are end-to-end training needs of the logistics sector. CoE shall house facilities required for the up-grading skill set of people. The facilities shall be built to conduct technical and non-technical training at CoE. Logistics Sector Skill Development Centre Government shall dedicate a few ITI Training facilities specific to the logistics industry |
Assistance for technology and innovation with quality standard
| Incentive Name | Incentive Particulars |
|---|---|
| Development of a dashboard and other data-driven Planning and Monitoring / Co-ordination tools in a collaborative environment of PM GatiShakti National Master Plan |
It would aid in proper planning and visibility for the ongoing and the proposed connectivity projects |
| Providing assistance for the installation of logistics management software | Reimbursement of 50% of the cost of installation of logistics management software or INR 20,000 per installation per company, whichever is the lower cost. It is a one-time cost reimbursement provided by the Government to the companies which have their offices registered in Odisha. |
| Providing assistance for the Implementation of a Quality Management System |
Reimbursement of 50% of the cost incurred for the implementation of Quality Management System (IMS /ISO 9001/ IS0 14001/ OHSAS 18001/SA 8000) in their infrastructure. The incentive will be capped at a maximum of INR 5 Lakh to improve the quality of delivery of goods and services. This is a one-time cost reimbursement provided by Government for cold storage/ warehouse/ integrated logistics parks/ MMLP/ any other logistics infrastructure. |
| Implementation of Incident Detection System in important corridors | Artificial and augmented intelligence tools to reduce time and cost overrun. |
Encouraging innovation in the logistics sector
The State shall propose a special Innovation Fund of INR 1 crore for supporting start-ups in Logistics (for the first two years). The State Logistics Cell shall be the custodian of the Fund, and allotment shall be done through competitive eligibility criteria.
