Logistics Policy 2022


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.


  • Create an efficient and competitive logistics ecosystem to support Odisha's industrial growth through regulatory reforms and streamlined processes.
  • Encourage private participation in developing integrated logistics facilities in the State.
  • Reduce logistics costs and enhance efficiency by enabling multi-modal transportation.
  • Availability of skilled resources through continuous learning/ upskilling to meet the long-term needs of the sector.
  • The intervention of technology and innovation for driving operational and cost efficiencies.
  • Promote start-ups and MSMEs in this sector for holistic growth.


  • The following are the objectives of the State Logistics Policy:
  • Mapping of facilities for overall development
  • Efficient utilisation of existing infrastructure facilities
  • Development and augmentation of logistics facilities across the State
  • Strengthening first & last-mile connectivity
  • Port led logistics connectivity
  • Improve quality of logistics facilities and services in the state
  • Increase technology penetration
  • Skill Development
  • Sustainable Development of Logistics Infrastructure

Framework for implementation

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
  • Skill development
  • Assistance for technology and innovation with quality standard

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

  • The land shall be facilitated from earmarked Land Bank Scheme of IDCO and other government lands wherever available as per the applicable concessional rate.
  • No stamp duty shall be applicable to be paid with respect to the land allotted by the Government or IDCO to the units.
  • Exemption from payment of premium for conversion of land for industrial purpose

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

  • Government shall keep provision for reserved office space / Plug and-Play facilities in O-Hub, and upcoming IDCO Towers.
  • 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.

  • A Comprehensive Logistics Action Plan shall be prepared, including standardisation and benchmarking of respective sectors for Warehousing, Human Resource Development, EXIM logistics, etc., corresponding to the National Logistics Policy 2022.
  • A Logistics Master Plan should be prepared within 6-12 months from the date of commencement of the policy with long-term and short-term goals.
  • At least 5 acres of land shall be demarcated in upcoming Industrial Estates/Industrial parks / Industrial Clusters and SEZs to develop common logistics infrastructure- such as warehouse/ cold storage/loading - unloading facilities /Truck Terminus, etc.
  • Railway sidings are infrastructure that facilitates the intermodal movement of Bulk goods and provides the opportunity for Rail side warehousing activities. The Government may receive proposals from a private developer for the development of standalone Railway sidings and the need for the infrastructure will be evaluated. Based on the evaluation and the level of capital infused by the Private developer, Road Connectivity up to the siding will be provided. IDCO may facilitate the acquisition of land on behalf of the State Government.
  • Idle land parcels available in various departments shall be monetized by developing common logistics infrastructure through PPP mode.
  • Single Window Facilitation system: Logistics project proposals can be directly applied through the GO-SWIFT portal