Kerala announces investment subsidies up to Rs 7 crore for logistics parks as part of its draft logistics policy aimed at boosting the state’s logistics sector.
Investment Subsidy for Logistics Parks
Kerala’s Industry Minister, P Rajeev, introduced the draft logistics policy, which includes significant investment incentives for the establishment of logistics parks within the state. Under this initiative, a substantial investment subsidy of up to Rs 7 crore is offered for logistics parks covering 10 acres of land, while smaller-scale mini-parks spanning five acres receive a subsidy of Rs 3 crore. These subsidies are strategically designed to encourage private investment and foster the development of robust logistics infrastructure across Kerala, ultimately enhancing the state’s competitiveness in the sector.
Policy Recommendations and Support Measures
In addition to investment subsidies, the draft policy proposes several supportive measures to facilitate the growth of the logistics industry. It suggests designating logistics parks as industrial zones, thereby streamlining regulatory processes and fostering a conducive environment for logistical activities. Furthermore, the policy advocates for the establishment of a single window system for the swift approval of logistics park projects, aiming to expedite their implementation. Stamp duty exemptions for both logistics and mini logistics parks are also proposed, aiming to reduce financial burdens on investors and developers. To ensure effective coordination and governance, the policy envisages the formation of various committees, including a Logistics Coordination Committee chaired by the Chief Secretary and a Logistics Cell headed by the Principal Secretary of the Industries Department. These measures collectively seek to create an enabling ecosystem for the growth of the logistics sector in Kerala.
Focus on Skill Development and Employment
Recognizing the pivotal role of skilled manpower in driving the logistics industry forward, the draft policy underscores the importance of skill development initiatives. It emphasizes the formulation of skill development projects tailored to the specific requirements of the logistics sector, encompassing areas such as warehousing, transportation, and other logistical services. By enhancing the skill sets of the workforce, the policy aims to align them with the evolving demands of the industry, thereby bolstering employment opportunities and fostering sustainable growth.
Stakeholder Engagement and Future Plans
The unveiling of the draft logistics policy was accompanied by a Logistics Consultative Forum meeting, bringing together key industry stakeholders to solicit their feedback and insights. Officials such as Suman Billa and Paul Antony highlighted Kerala’s untapped potential in the logistics domain and reiterated the government’s commitment to providing the necessary support for its development. Looking ahead, the draft policy is slated for further refinement based on the inputs received from stakeholders, with plans for formal approval by June. This collaborative approach underscores the government’s proactive stance towards inclusive policymaking and sets the stage for the accelerated growth of Kerala’s logistics sector.
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