Amendment status not verified — confirm the current text below against the official source.
Policy features Guided by the vision of this policy, the policy features are categorised under the following four broad pillars: These pillars form the structure to support a better and an effective outlay with well-defined policy features that address the objectives of this policy. 19 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.1. Infrastructure 7.1.1. Support for the development of warehousing & logistics sector Logistics and warehousing constitute a critical link in the chain that connects the manufacturer to the eventual consumer. The warehousing sector was earlier dominated largely by unorganized players but with the advent of Goods and Service Tax, the industry is becoming more organized. The e-commerce and third part logistics (3PL) players are increasingly becoming the biggest adopters of organized warehousing. With growth in e-commerce, decentralisation of global manufacturing, increase in inventory levels, the demand for warehousing has increased. Also, the central government’s grant of infrastructure status to the logistics sector including warehousing has been a major catalyst in increasing the demand. However, the warehousing industry in Punjab is still in its nascent stage and needs to undergo complete reform so that the global standards can be met. This policy encourages the development of logistics and warehousing infrastructure; special focus areas shall be as under: The Government shall earmark requisite land for development of warehousing facilities. The Government shall promote the setting up of warehousing facility in agricultural zones, where they would be operating warehousing operations from the premises. This shall be applicable to warehouses dealing with specialised cargo and cargo with value added attributes. A Logistics zone will be earmarked along and around the Amritsar Kolkata Industrial Corridor and all new enterprises setting up in the zone will be exempted from the requirement of CLU/ EDC. The Government shall provide necessary infrastructure support of Industrial Logistic and Warehousing Hub in Zirakpur-Tepla-Rajpura region. Zirakpur, along with Tepla and Rajpura can emerge as primary logistics hub, which can cater to freight from Shimla, Baddi, Delhi and Punjab. Punjab currently has a strong network of customs ports with facilities present in Ludhiana, Dappar, Jalandhar. The State government shall continue to explore establishment of new ICDs and CFSs on need basis and support development of logistic park, warehousing zones etc. The Government shall facilitate the development of dedicated Transport Zones in all major industrialized cities/towns, including truck terminals near major national and state highways, expressways, investment zones, economic corridors, and industrial corridors. The State may lease out the existing transport centre/ nagars/ zones in PPP mode for the augmentation of existing infrastructure while encouraging a self-sustaining revenue model. The Government shall adopt a rating and feedback mechanism of existing warehouses so that required quality improvement measures can be undertaken. The Government shall also develop an online portal showcasing database of warehouses for users to discover most suitable needs. The Government shall also provide requisite assistance to the Central Government in order to enable faster and accurate data collection. The Government shall support development of logistic and warehousing zones at strategic locations. The Department of Industries will identify the locations with inherent advantage for the development of logistic and warehousing sector and shall developed logistics and warehousing zones by providing the land and other common facilities at competitive cost. The Government shall also set up a dedicated grievance redressal mechanism for the industry to report issues pertaining to logistics. The Government shall evaluate department-wise regulations/compliances for warehouses and shall work to reduce/rationalize the total number or regulations and compliance. 20 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.1.2. Integration with PM GatiShakti With the Central Government announcing Gati Shakti NMP, the focus is being given to planned and coordinated infrastructure development which will be transparent, and data driven. The aim is to facilitate infrastructure development in an objective manner such that efficiency of work is increased and duplicity and overlapping of work between different departments can be minimised. The State shall act as a facilitator to the Centre in this activity. The State Government will take the following steps to have readiness for seamless integration with Gati Shakti NMP, as and when it is notified: The State shall align with the central government for easy on-boarding with GatiShakti. This will include linking of existing projects with GatiShakti thus bridging the gaps between different Central and State agencies/ departments/ ministries and improving last mile connectivity to production and consumption centres. The State Government shall review and monitor implementation of GatiShakti at State level to ascertain the logistics efficiency accruing thereof. The State shall adopt frameworks and norms for undertaking any amendments to the policy with respect to GatiShakti. The State shall establish a procedure with definitive timeframe for synchronisation of various activities for construction of roads etc. along with all utility services in an area-based approach for development of infrastructure on pilot basis. The State shall align different initiatives on development of a common integrated portal which serves the needs of all stakeholders. The State will issue appropriate directions for achieving the objectives and for compliance to guiding principles GatiShakti (as and when it is notified), and in addressing demand side requirements from concerned State Departments. 7.1.3. Logistics for export Planning for export growth in India has historically been a centralized process. This new approach of encouraging districts to become the export hubs not only decentralizes the planning process, but also puts at its centre the most valuable stakeholders, i.e., the local producers and manufacturers. Exports are emphasized not just to reduce trade deficit but as a mechanism for boosting rural economic growth too, making local products more attractive for consumers across the world and supporting employment generation through empowering of the MSME sector. For this purpose, the district is the ideal administrative level to integrate the rural economy with the industrial economy and to create a green channel for the MSME sector to access international markets. Therefore, to realize the vision of creating export centric economic development, it is important to develop adequate logistics ecosystem which will transform the State of Punjab into an export powerhouse. To increase efficiency in the supply chains and augment export infrastructure, following measures shall be undertaken: The State shall undertake establishment of ICDs/CFSs which may act as hub in the logistics chain. 21 | P a g e Integrated Logistics & Logistics Park Policy 2023 The State shall encourage projects for development of exports under the ambit of Trade Infrastructure & Exports Scheme (TIES) or any other central or State funded schemes. The State shall identify Green Channels (with less inspection during transit) in order to prevent delays for vehicles carrying export-import cargo. For the promotion of exports in MSME sector, the State shall explore the possibility of running freight trains (including state-owned and private operated) which could be used for the transportation of multiple commodities between ICDs and seaports. In addition, the raw material available in different parts of the country may also be procured and made available to MSMEs at a subsidised rate. This will eventually decrease logistics costs and increase efficiency, making State exports more competitive internationally. The State shall endeavour to create Free Trade and Warehousing Zone at strategic locations near ICDs and dry ports and along the existing and upcoming freight corridors, expressways, highways. The FTWZ will be equipped with facilities such as customized warehousing, office spaces, transportation, and handling facilities. The State shall undertake upgradation of facilities at ICD Chheharta in terms of human resource and cargo handling capacity. The State shall expedite the development of ICD in Manawala, Amritsar. The State shall endeavour to establish ICD in district of Bathinda as this shall help in enhancing exports from the Southern region especially for products like textiles and electric transformers. The State shall ensure supply and availability of quality power, high speed internet facility at LCS/ICS and other infrastructure create specifically for export and logistics support. 22 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.1.4. Logistics for agriculture The development of logistics ecosystem plays a significant role in agricultural production and supply chain management which ultimately leads to increased productivity and ultimately enhancing food safety and quality. This ecosystem involves pre-harvest and post-harvest handling facilities, storage & distribution, processing facilities, infrastructure (such as roads & railways) etc. Given the perishable nature and stringent import standards it is extremely vital to develop efficient and time sensitive handling of agricultural commodities. Hence, it is important to develop and invest in mega food parks, state of the art testing laboratories and integrated cold chains so that the State can increase its agricultural productivity. The State shall promote development of quality food storage facilities in grain procurement zones/clusters/Mandis to meet the requirements of rapidly growing agro and food markets. The storage facilities shall include warehouses, silos, temperature controlled perishable cargo storage facilities and related handling & transport infrastructure. The State shall undertake comprehensive need-gap analysis of existing domestic and export- oriented infrastructure across the entire agricultural and processed food value chain. The State shall undertake measures to equip APMC and non-APMC mandis with last mile connectivity including all weather, 24x7 access roads and rail connectivity wherever possible at major procurement centres. This will help in reducing significant costs of logistics for bulk agriculture commodities. The State shall undertake measures to sensitize warehouse staff and cold storage owners and encourage and facilitate accreditation/registration of their warehouses. The State shall undertake suitable interventions to popularize small scale local storage of produce by farmers. This will help in avoiding distress sale and giving better price realisation. The State shall undertake measures to establish multipurpose cold storages with temperature- controlled transport vehicles rather than conventional single commodity storage with the focus shifting from just storage to end to end cold chain. The state shall undertake measures to encourage containerisation of domestic agriculture goods which shall enable direct transport of grains from Mandis to food processing factories thus minimizing additional cargo handling and associated wastage & pilferage. Such measures can include fixing quota for using Domestic containers for transport of state procured food grains and facilitate FCI in adopting containerized transport of food grains from mandis in state. 23 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.1.5. City logistics / Freight Smart Cities City Logistics is one of the most complex components and, it is also one of the most overlooked part of logistics development. Rising levels of pollution and traffic congestion have become areas of concern. With city being overburdened by ever rising number of vehicles, an immediate need is identified to start a programme to counter the unorganised flow of traffic, which causes great inconvenience to all – road and non-road users alike. Multiple stakeholders need to be considered while forming a city logistics plan. This city logistics plan will encompass all the factors relating to logistics in the city in order to have a holistic approach to cater to the present and future needs of the cities. Implementing any changes in a live and bustling city has always been and will be a difficult proposition. To overcome the complexities, the State shall follow a systematic plan to tackle these aforementioned challenges. The State shall adopt a data driven mechanism which identifies areas of concern based on the growth of the city and other factors such as transport restriction of goods, modes of transportation, tracking of commodity flow etc. Cities bring complexity of stakeholders in such domain which include manufacturers, retailers, consumers, city residents, daily commuters, logistics service providers, freight carriers and enforcement agencies. For this the State will work on uniting them to bring better efficiency in the system whilst giving due consideration to interests of all the stakeholders. The State shall support Freight Smart Cities and adopt best practices for adoption of efficient and hassle-free transportation solutions. The State shall facilitate the convenience of the residents and commuters that travel through cities. Freight Smart Cities To combat the key challenges of environmental impact, high costs and congestion in the cities due to freight movement, “Freight Smart Cities” have been envisaged. Freight Smart Cities will act as a standard for planning of inter and intra-city logistics. The State shall endeavour to adopt best practices to develop such Freight Smart Cities. This will include widespread use of technology initiatives along with a well- coordinated approach for infrastructure development based on empirical studies. To further improve vehicle (both freight and non-freight) movement, vehicle movement and usage shall be planned more methodically to achieve a solution that maximises the available road usage and paves the way for a properly planned areas for future development. Government of India has proposed 75 Freight Smart Cities across the country from which the cities of Amritsar and Ludhiana have been recognised as Freight Smart Cities in Punjab. The State shall support the development of these cities and any other cities as and when declared by the Government of India. The State shall oversee that these Freight Smart Cities are planned in tandem to the City Logistics policy for a smooth and congestion-free experience of freight transportation. The objective is to implement a robust end-to-end urban city freight system that takes care of all the stakeholders in the most efficient way possible. The State shall set up and monitor independent “City Logistics Committee(s) (CLC)” for Freight Smart Cities, which shall be responsible for the implementing logistic plans and initiatives along with coordination with various state and central government agencies. 24 | P a g e Integrated Logistics & Logistics Park Policy 2023 This will also facilitate a broader plan of state-level integration which will a part of a greater national freight integration. 7.1.6. Development of logistic parks Logistics Parks are the dedicated infrastructure created in form of Multimodal or Unimodal logistics terminals catering to various requirements of transportation through one/multiple modes (Rail/Rakes, Road, Inland waterway, Air), providing associated facility of transit, non-transit, bonded, non-bonded warehousing along with other value-added services like packaging, consolidation, specialized handling, sorting of cargo for one or many type of cargos which can be bulk, break-bulk, container(FCL/LCL/Tank), liquid, Chassis, automobiles etc. These can cater to exclusive EXIM or Domestic or both EXIM & Domestic cargo. These infrastructure creation projects are long gestation projects with minimum establishment time frame of 2-3 years. There are policies governed by Central government nodal ministries governing the approval process and establishment of various kinds of customs ports and other logistics facilities, these are: ICD/CFS/AFS: CBIC and proposals are approved by Inter Ministerial Committee ACC: MoCA, EXIM area is notified by CBIC ICP/LCS: LPAI/MHA, EXIM area is notified by CBIC Gati Shakti Multi Modal Cargo Terminal: Indian Railways Railways Good Sheds: Indian Railways Free trade warehousing zones: MoCI Bonded Manufacturing in Warehouses: Manufacturing & Other operation in Warehouse Regulation’ (MOOWR) scheme, notified by CBIC 25 | P a g e Integrated Logistics & Logistics Park Policy 2023 Logistics parks may or may not incorporate the above defined facilities and can be limited to basic truck/road-based terminals. The minimum area requirements are described in the policies governing these individual projects and investors have to consider larger dependencies before making an investment and completing the projects. To promote creation of logistics park and related infrastructure, the state would facilitate investors by: The State shall facilitate any associated approvals from various state departments through State Logistics Cell and through a single window. Dormitories for workers shall be allowed on 1% of total permitted FAR for Logistics Parks/ Multi Modal Logistics Parks/ Integrated Multi Modal Logistics Park. The State through its departments/PSUs shall be open to create JV’s/SPVs with private sector stakeholder in creating logistics parks and shall provide land as equity wherever feasible. The State shall ensure a non-hindered/non-restricted road connectivity in form of 2-way paved road (7 meters wide with 1.5 meters of shoulder each side) for movement of all types of cargo. Connectivity requests from these will be facilitated by SLC through member departments. SLC shall facilitate removal of hindrances in project infra development like shifting of power lines, drainage through member departments. These proposals will be taken up in-line with GatiShakti SMP framework and its principles. 26 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.2. Technology and innovation 7.2.1. Technological interventions for smart enforcement and safety It is important for the State to deepen its penetration of technology to strengthen enforcement of laws without and to identify offenders without causing loss of time and disturbance in the market. This would also help the State to reduce dependence on physical - by sight enforcement, thereby reducing the need to devote human resources to on-road enforcement teams. To enable this ecosystem, the State Government will work towards adopting IT based, data driven, risk assessment-based enforcement of regulatory compliances so that idle time on highways & logistics costs can be reduced. Smart Enforcement refers to a range of technological interventions aimed at simplification of processes, reduction in physical check posts, using technology for remote enforcement and transparency along with capacity building and training of enforcement officials. This would be done through development of a State-level database for offences and use of new-age enforcement tools such as cameras, sensors, weigh-in-motion (WIM), portable scales etc. for automated on-road enforcement. It would also require integration of various databases like Aadhar, Vahan, and other applications like e-Waybill and GST and data associated with them. This will move the sector towards an eco-system of minimal inspection and stoppages of trucks on roads. Once implemented, it would result in increase in utilisation level of the trucks, reduction in overall transit time and logistics cost. The State shall augment existing technological interventions on a broader scale. For example, the Punjab Excise and Taxation Department has mandated GPS enabled tracking devices carrying ethanol, spirits, and other such items to check their pilferage for making spurious liquor. There also exists app-based issuance of e-challan. Hence to have a robust digital infrastructure in place, the State shall coordinate with other line departments such as Transport, Revenue, IT etc. to synchronize their efforts and take initiatives for effective implementation of the Smart Enforcement across the State, some of which will include: The State shall develop a customized Risk Management System (RMS) for meeting the needs of enforcement agencies and designated zones. The State should create a dedicated Data Centre for capturing violations and to aid in informed functioning of enforcement agencies. The State shall also promote setting up of PM Gati Shakti data centres. The State shall develop a common and connected infrastructure of traffic cameras, RFID readers, sensors, WIM weighbridges, use of body cameras by vehicle inspectors. The State shall onboard with initiative of Logistics division to develop an app that will get data feed from collected common IT infrastructure as well as GST e-waybill and Vahan databases and app-based challans will be issued. 27 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.2.2. Green Logistics The growth of logistics sector has been accompanied by adverse impact on environment in terms of increased pollution levels, consumption of scarce resources such as water and energy and high wastage related to packaging etc. Given this imperative, it is important to implement Green Logistics and minimize the environmental impact of logistics activities to ensure sustainable growth. To give impetus to green logistics, the State shall undertake environmentally friendly initiatives. This includes: The State shall promote adoption of sustainable design standards to development of logistics infrastructure such as warehouses, road and rail terminals, airports and seaports, multi-modal terminal and other superstructures inside logistics facilities. These will also include wastewater recycling, adoption of alternate energy options, use of energy and waste management systems etc. The State shall encourage use of electric vehicles and non-motorized vehicles as well as vehicles using alternative fuels such as CNG, Hydrogen CNG, LNG, ethanol etc. The State shall build mechanism for rating, rewards and recognition to encourage adoption of eco-friendly practices. 28 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.2.3. Digital transformation Digitalisation is the cause of large-scale sweeping changes and technological innovations in all the prominent sectors and, logistics & warehousing are no exception to this trend. The role of technology has gradually shifted from being a driver of marginal efficiency to fundamental innovation and disruption. There are multiple challenges that the industry is currently facing such as changing customer expectations, outdated regulations and compliances, cultural transformation, access to right skills etc. and the use of right technology can help in overcoming these challenges. This policy encourages use of new technologies to improve the efficiency of the sectors. The State shall encourage use of robotics and automation in cargo transportation, de-congesting cargo traffic and material handling. The State shall encourage use of blockchain technology for exchange of information and documentation as well as transaction in a secured manner. The State shall encourage use of augmented intelligence tools for demand planning, route and operations planning etc. The State shall also undertake measures to incubate and promote start-up ecosystem in collaboration with industry/academia to accelerate digital innovation. It shall also undertake measures to incentivize technical patent registration by technology providers, start-ups etc. 29 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.2.4. Building resilience for crisis management and fostering innovation The recent pandemic has underscored the importance of building effective and robust supply chains across sectors and the importance of crisis management for logistics sectors. The policy aims to build resilience in logistics supply chain to withstand such disasters. Also, the demand for today and future is integrated end to end logistics solution, which encompasses integrated infrastructure/assets platform, integrated services and digital platform. The State shall also identify strategic logistics assets and facilitate in upgrading them to meet quality standards in terms of their design, construction, and quality. The State shall encourage to develop a Network of Centre of Excellence for innovative solutions/emerging areas in partnership with industry/academia. The State shall promote a Start-up ecosystem in collaboration with industry/ academia to accelerate digital innovation. The State shall form a coordination group to facilitate the movement of commodities and address logistics bottlenecks in emergency situations. The State shall establish a framework for resiliency plans for the logistics network wherein logistics support shall support shall be extended to other ministries/ departments for better management of relief and rehabilitation during a crisis or a disaster. The State shall identify and designate specific logistics hubs as disaster support cells. The State shall also review the need to develop a dedicated scheme for financial support to small fleet owners in times of extended disruptions, which would not only foresee their financial stability, but also their health and well-being. 30 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.3. Skill development 7.3.1. Driver empowerment and employability The concern for upliftment of truck drivers have been gaining momentum considering that the trucking industry is witnessing a shortage of drivers to the tune of 28-30%10. This is primarily because of reasons such as lack of basic amenities, lack of financial & digital literacy, absence of social welfare framework hence resulting the profession to be less lucrative. The lack of standardisation in remuneration in the trucking industry has also led to different freight companies offering different pay for the same routes. The ecosystem also lacks options for truck drivers and transporters for resting during transit. The most common establishment would be roadside dhabas with abysmal sanitation facilities. The industry lacks proper standards and regulations and does not ensure satisfying working conditions for truck drivers. Considering the importance of well-being of the truck and freight drivers, the State shall develop a Driver Empowerment and Employability Programme which will cater to 4 major components such as: Training & Skill Upgradation, Wayside Amenities, Social Security & Empowerment and Digital Ease & Efficiency. The initiatives under these components will include: The State shall promote the creation of Trucker Parks to ensure safe driving environment for all drivers. These bays will be created along all major highways which will provide facilities such as resting places, amenities for food, hygiene, parking, and repairs. The State shall develop a detailed plan to train truck drivers on issues such as road safety, financial literacy and facilitation, and digital literacy. The State shall endeavour to provide affordable and accessible healthcare to all drivers and explore tie-ups with medical and insurance industries. The State shall devise a concerted institutional mechanism for enrolment of truck drivers into welfare schemes. All regulatory clearances pertaining to Trucker Parks shall be provided through Single Window (Business First Portal). 10 First National Conference on Logistics with the States and UTs 31 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.3.2. Training and skilling of logistics service providers The logistics sector promises a great employment potential across various operations. It is pertinent to have a skilled workforce for efficient and standardised operations throughout the sector. A skilled workforce will support the industry to reach its potential. This will further strengthen the employability and will act as a facilitator for an improved a plug-and-play like setup. A skilled workforce will also ensure optimum delivery for the investor/ manufacturer. The State shall review multiple skilling options across different skill levels and functions and develop courses to offer curriculum for skilled and semi-skilled functions of logistics such as drivers, loaders, warehouse personnel, logistics specialists etc. The State shall encourage partnership with academic and training institutions like colleges, polytechnics, ITIs etc. Steps will be taken to introduce subjects on logistics and supply chain across different stages of education and it be encouraged that the subjects are inculcated into mainstream curriculum at school, graduate and post graduate level. Collaboration at state level through Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Deen Dayal Upadhyay Grameen Kaushal Vikas Yojana (DDU-GKY), State Skill Missions and with specific sector skill councils will done with an aim to develop a mainstream logistics training system. Continuing professional education shall be promoted which shall also include Certified Logistics Professional (CLP) Scheme. Proper skilling mechanisms shall be developed to improve the quality of education and skilling, which in turn shall be focused on better workforce safety. The State shall take steps to improve occupational health and safety and shall promote best practices to achieve this. Punjab has been foremost to ensure gender inclusiveness; this shall be continued by reviewing existing policies and guidelines with an objective of increasing the participation of women in the logistics sector. The State shall further take special initiatives to train women in the logistics domain (for example – material handling equipment operators which includes forklifts, cranes etc.) The State shall set up programmes to skill workers for specialised cargo services. The State will work on developing a comprehensive framework to address and implement skilling programmes throughout the logistics value chain. 32 | P a g e Integrated Logistics & Logistics Park Policy 2023 7.4. Policy and Regulatory Framework The Government of Punjab has been working diligently in the direction to make Punjab an investor- friendly state. To encourage greater investments the State has already started with great initiatives such as a single window – Business First portal along with proactive steps such as auto-renewal and deemed approvals. The State will continue its work in this direction to continue its path for making systems more investor friendly and easy to access. This will be done by adopting digital tools along with process improvements to cater to the needs of the investors. The State shall work towards providing an integrated approval for setting up units in the logistics sector. The State shall review the structure of clearance and procedure in the logistics sector and will rationalise them for the ease of investors. Special measures shall be taken to ease the process of Change in Land Use (CLU) procedure The approval and clearances for logistics related activities such as transportation and warehousing shall be assessed and adequately mapped, and efforts will be made to make the approval process easier and faster for the applicants. Necessary efforts shall be taken for timeline rationalisation. Building on the existing 24 - hour shift format, a flexible operating schedule based on a 24x7 format shall be planned for logistic parks and freight smart cities. Companies employing women staff in night shifts shall come out with specific policy regarding safety measures put in place to ensure the safety of their women employees in 24x7 shift First mile and last mile connectivity issues shall be studied, and the State shall undertake demand analysis to examine the flow of logistics throughout the supply chain. Based on empirical analysis, infrastructure development, skilling and technology shall be integrated as a part of this policy. 33 | P a g e Integrated Logistics & Logistics Park Policy 2023