Govt to invest Rs 500 cr in logistics sector

The state government has come up with a draft logistics policy that includes fiscal investment up to Rs 500 crore, Rs 10 crore reimbursements and tax cuts to investors besides easing of land acquisition rules by tweaking existing rules.

Industrial Development Commissioner Darpan Jain said Karnataka stands fourth in states that are leading logistic hubs in the country and the policy aims to bring it to the first position. “The draft policy focuses on six broad subjects of the sector: fiscal incentive, connectivity infrastructure, skill development, innovation, quality and ease of doing business,” he said.

He was speaking at an event organised to consult industry stakeholders and get their feedback before finalising the policy, which has come a decade after the idea was first mooted in the state.

Two leaders in the sector expressed concern about the “impediments in the land acquisition process” and the problems associated with leasing land from Karnataka Industrial Area Development Board (KIADB).

“Though a piece of land is part of the industrial zone, acquiring it after getting clearances is a major challenge...The three potential hubs around Bengaluru are Hoskote, Nelamangala and Jigani but they come under panchayats and any land transaction requires multiple clearances,” said Rajendra Hinduja of Gokaldas Warehousing Corporation.

Jain said the government has already identified clusters of land where some of the land acquisition rules will not apply. “We have set a conservative target of reaching Rs 5,500 crore investments in the logistics sector by 2020. The government will take the steps necessary to reach the target,” he said.

The logistics policy envisions a multi-modal chain of infrastructure allowing seamless connectivity between industries and market enabled by the latest digital technology like blockchain. Jain said the government will finalise the policy after incorporating the inputs from industry leaders.