Question : Logistics Cost Reduction

(a) whether the Ministry of Commerce and Industry has set aim to reduce the logistics cost from the present 14% of GDP to less than 10% by 2022 and if so, the details thereof;
(b) whether there is an urgent need to leverage existing infrastructure to support each other in the logistics chain for maximizing capacity utilization and reduction of cost and if so, the facts thereof;
(c) whether India’s logistics sector is highly defragmented and if so, the facts thereof;
(d) whether the Ministry of Commerce and Industry has analysed the inputs provided by the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation and if so, the details thereof;
(e) whether the Union Government proposes to make it mandatory for all Ministries/Departments concerned to consult logistics department whenever any new road, railway, airport and shipping port project is being considered; and
(f) if so, the steps taken by the Union Government in this regard?

THE MINISTER OF COMMERCE AND INDUSTRY
(SHRI PIYUSH GOYAL)
(a): Yes sir. This will be achieved by a number of policy initiatives involving Rail transport, Road transport, Inland Waterways, Coastal Shipping and streamlining Regulatory procedures.

(b) Yes Sir. In order to have an integrated approach to logistics, a separate division has been created in the Department of Commerce to coordinate various Logistics initiatives of the Government. The Multimodal Transportation of Goods Act, 1993 is proposed to be amended to facilitate such coordination at operational level.

(c) Yes sir. It is the endeavour to facilitate seamless Multi-modal transport.

(d) Yes Sir. The inputs of the Ministries have been considered and incorporated in the draft National Logistics Policy that was put up in public domain for stakeholders’ consultations.

(e) The process of consultation is desirable especially if it involves multi-modal integration. It has not been mandated so far.

(f) An Inter-Ministerial Group exists under the Special Secretary (Logistics) comprising of representatives from other Ministries to facilitate the process of consultation across Ministries.


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