GOVERNMENT LAUNCHES NEW NATIONAL LOGISTIC POLICY 2022
Prime Minister Modi, on his 72nd birthday, launched the New National Logistics Policy(NLP) on 21st September 2022. According to Piyush Goyal, minister of commerce and industry, the National logistics policy 2022’s primary goal is to encourage the free flow of commodities and raise the competitiveness of the sector throughout the country. Process re-engineering, digitization, and multi-modal transportation will be some of the primary areas of emphasis. The new policy has not come out of the blue but there are eight years of hard work behind it. To ensure quick last-mile delivery, end transport-related challenges, save time and money for the manufacturers, and prevent wastage of the agro-products, concerted efforts were made and one of the manifestations of those efforts is the new National Logistics Policy.
AIMS OF THE POLICY1. The primary areas of the National Logistics policy would be process re-engineering, digitization, and multi-modal transportation,
As India is setting large export targets and becoming a manufacturing hub in the world due to the much-appreciated production-linked incentive scheme (PLI) it needs toward reducing logistics costs as a percentage of gross domestic product(GDP). India needs to compete more with developed countries and therefore we must welcome the NLP rather than hesitate to implement it.
The key elements of the logistic policy include Unified Logistics Interface Platform(ULIP), Ease of Logistics(ELOG), and System Improvement Group(SIG), ULIP launch will help exporters as it would bring together all the transportation-linked services. The Unified Logistics Interface Platform will bring all the digital services related to the transportation sector into a single portal, freeing the exporters from a host of very long and cumbersome processes. A new digital platform–Ease of logistics Services or E-Logs–has also been launched., through which industry associations can take up any issues pertaining to operations and performance with the government. A complete system has also been put in place for the speedy resolution of such cases.
An e-handbook has been introduced for standardization in the warehousing sector. New courses in the management of logistics and supply chains and the integration of digital systems are also suggested. Policy formulation is just a beginning, policy plus performance equals progress. This policy will increase the responsibilities of the government and the stakeholders in the field. The policy acts as a driving force and gives guidance.
The adoption of technology has been strengthening the logistics sector. For instance, e-sanchit has been enabling paperless export-import trade processes, and faceless assessment in customs has been rolled out. Similarly, e-way bills and FASTag are also common on highways to improve the efficiency of the Logistics sector.
KEY POINTS OF THE POLICY
1. The rail, road, customs, aviation, international trade, and commerce ministries are among the seven departments whose 30 distinct systems will be digitally integrated as part of the IDS.
2. The shorter cargo movement will be developed.
3. ULIP will facilatate easy cargo transfer.
4. The Ease of Logistics(ELOG) will help streamline the regulations and make the logistics industry easier.
5. The System Improvement Group(SIG) will periodically assess all logistics related projects and remove barriers if any.
6. The policy will give young people opportunity to work and develop their talent in the logistics field.
Some states such as Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Rajasthan, Telangana, and Uttar Pradesh have already formed their logistics policy. Logistics policies of 13 states are still in the draft stage.
Besides improving ease of doing business, and ease of living, the policy, along with other pillars of PM Gati-Shakti has the potential to usher in an unprecedented era of ‘ease of moving in the country, ensuring the speedier and seamless movement of cargo and people across modes of transport—water, air, roads, railways.
Reduced logistics costs and increased logistic efficiencies will energize the economy across sectors in multiple ways and take us many steps closer to emerging as a global manufacturing powerhouse.
CORPORATE INDIA WELCOMES THE POLICY
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