Will the national logistics policy include the use of electric vehicles?
To make business easier and improve the quality of life index, PM launched the National Logistics Policy (NLP) in Vigyan Bhavan, New Delhi on September 17, 2022. The policy is aimed at reducing logistics costs from the current 13-14% and increasing the efficiency to an economic level comparable to that in other developed countries. The cost reduction step will definitely help to improve the value of Indian products globally.
NLP focus areas
This will act as an addition to several other plans like Prime Minister Gati Shakti's national master plan and Sagarmala, enabling the smooth movement of goods and people which eventually lowers the cost of doing business, making it more competitive for exports. National Logistic Policy's major areas to be focused on are world-class infrastructure, tech-savvy and advanced warehouses, digitization, management, traceability, ease of transportation, and flexibility in terms of time management. It will help develop logistics plans for industries such as coal, steel, fertilizer, grain, cement, and port connections to facilitate the integration of regional and global value chains.
Four essential steps of NLP
- Digital Systems Integration (IDS): This step includes the digital integration of different systems in 7 different sectors (Road, Rail, Aviation, Ministry of Commerce, Commerce, etc.)
- Unified Logistics Interface Platform (ULIP): makes freight traffic shorter and seamless, allowing confidential information to be exchanged in real-time securely. This project uses the logistics database of the National Business Corridor Development Corporation (NICDC).
- Logistics Support or Ease of Logistics (ELOG): Enabling and guaranteeing transparent and accessible trade support in logistics.
- System development team: regular tracking of all logistics-related projects to ensure efficiency and accuracy.
Impact
We have seen a few interesting developments in Indian ports with a significant increase in traffic in Indian ports and a reduction of 18 hours in the average TAT for cargo ships. Build 40 air cargo ports and install refrigeration facilities at 30 airports to expand exports. In the near future, we can expect 35 intermodal hubs across the country, ensuring a smooth flow of goods. The advancement of shipping lanes indicates the urgent need for sustainable and efficient alternative modes of transport like electric vehicles.
In addition, more advanced technologies have been applied to improve the logistics industry. The sanchit's e-portal made paperless import and export transactions operational in India with seamless customs evaluation. E-way and FASTag are also used on highways to improve the efficiency of the logistics industry. In addition, a uniform tax system such as the Goods and Services Tax facilitates the issues surrounding the logistics sector of India.
Indian states need to integrate NLP systems and processes to have a real impact on a local level. Compete logistics facilities are needed to enable intermodal transport and reduce the overall reliance on roads for the transportation of goods. States must be in line with policy by developing an Integrated Master Plan for Logistics state-wise. This will continue to stimulate infrastructure development over the next five years. The non-government businesses should be encouraged to participate in the infrastructure development process and at the same time, governments must also monetize assets at the national and state levels. Privately owned businesses and industries should be encouraged to join the digital push and develop a showcase that will interact with the end user. In addition, a standard interoperability system must be made to ensure a standard exchange and use of information.
