Commerce dept. plans to shift LPAI from Home Ministry

The government is considering to shift LPAI, engaged in development of land ports at borders, from the home ministry to Department of Commerce to coordinate logistics related works and promote trade, an official said.

The proposal to shift Land Ports Authority of India (LPAI) is mooted by the commerce ministry.

The department also wants to designate LPAI as the main agency for development of infrastructure at border trading points to promote the country's exports and imports.

LPAI is a statutory body established under Land Ports Authority of India Act, 2010.

Its mission includes building land ports on India's borders, to provide secure, seamless and efficient systems for cargo and passenger movement, to reduce time and trade transaction costs, and promote regional trade.

"As the government has created a logistics department in the commerce ministry to cut transactions cost of traders and promote exports, LPAI should be shifted to the department of commerce," the official said.

The commerce ministry is working on several steps, including development of a national logistics portal and formulation of a national logistics plan, which is aimed at allowing seamless movement of inputs and finished goods across the country.

It will also identify gaps that could be bridged to bring down the cost of logistics for traders.

High logistics cost impacts competitiveness of domestic goods in the international markets.

Since 2011-12, India's exports have been hovering at around USD 300 billion. During 2017-18, the shipments grew by about 10 per cent to USD 303 billion.

Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.