Boost Plan For Logistics

Odisha Government is mulling to streamline Logistic Sector with a view to cut transaction cost for exporters and improvement in domestic trade.

While the Union Government has carved out a Logistic Division in the Ministry of Commerce & Industry, similar exercise will be carried out in the State Government as the Corporate Sector and Exporters are urging for an Umbrella Body to handle logistics.
As the State Government is taking steps for Ease of Doing Business to improve the Investment environment, creating a separate entity for Logistic Sector will go a long way in helping out the Investors.

There was no single department to look at all the aspects related to logistics covering various modes of shipment such as sea, roads and railways and air routes.

For setting up Logistic Hubs in Odisha, Ministry of Road Transport and Highways  is taking steps, for Dedicated Freight Corridor Ministry of Railways is responsible, for Port Connecitivity and National Waterways No.V, Ministry of Shipping is taking steps.

And the container transport is heavily inclined in favor of roads due to high freight rates of railway, unpredictable and unreliable scheduling of freight trains and poor last-mile connectivity.

However there is hardly any coordination between these Ministries and in the State Government several departments are taking steps to coordinate with the Ministries.
An umbrella body would help coordinate all aspects of logistics, which is currently managed by different departments, officials agree.

Department of Commerce & Transport is now handling the issues related to transport, however as Odisha eyeing for Rs.One Lakh Crore Export in next two years, this sector needs coordination among different departments.

"The sector needs lot of coordination among different ministries and departments including railways, road and shipping. Good logistics help cut transaction costs for traders," an official said.

For the Logistic Sector, coordination between the Department of Works, Urban Development, Rural Development, Home, Finance, MSME, FARD, Food Supply, Industry, Commerce & Transport is needed.
A State Level Coordination committee on Logistics headed by the Chief Secretary is needed for this purpose, said an official.

Recently, Binoy Kumar, Special Secretary Logistics in the Ministry of Commerce has also written a letter to the State Government in this regard.

There is a move to create an Integrated Information Technology (IT) Infrastructure with a single window system to take of Logistic Sector, said sources.

In the meantime, Union Government has declared Logistic as Infrastructure Status, so the investors engaged in this sector will be able to receive bank loans with ease and lower rate of interest.

Mr.Kumar has also informed the State Government that a State-wise Logistic Ranking Report will be prepared.
As the Government of India will be taking out a Ranking Report on Logistics of the States, Odisha Government will be working out on this count, said sources.

Each State has been asked to chart out the facilities available on road, sea, air and rail transport sector, which will find place in the Ranking Report on Logistics.

As Logistic Sector has huge potential for generating jobs, the State Government is inclined to facilitate this sector, said an official.

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