Budget 2012: Accord industry status to the logistics industry | SupportBiz

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Budget 2012: Accord industry status to the logistics industry

India needs a uniform toll policy. A centralised toll mechanism reduces stoppage time and improves truckers' efficiency.

Representing another key industry vertical of logistics, Vineet Agarwal, joint MD, Transport Corporation of India, said, “The government should look at according industry status to the logistics sector which will help transporters to avail the benefits of being part of an industry. Currently India’s logistics cost is among the highest in the world - estimated to be almost 13 per cent of its GDP.

TCI suggests setting up a separate regulatory authority for the logistics sector similar to the Insurance Regulatory & Development Authority (IRDA) or Telecom Regulatory Authority of India (TRAI) as it would help to coordinate between the various ministries for an integrated policy for the sector.”

Urging a need for a uniform toll policy, Agarwal of TCI said: “The lack of uniformity in toll charges owing to different stretches on BOT basis creates irregularities in the cost structure. A centralized toll mechanism is needed to ensure uniformity in the toll charges paid by trucker drivers at various check points. This would lead to reduction in stoppage time and will create greater efficiency.”

Bringing the focus on uplifting the standard of warehousing operations in country, Agarwal recommended that warehousing for non-agricultural commodities should be treated at par with infrastructure projects. “There is a need for long-term investment commitments from public and private players alike for developing warehousing facilities. It would also involve land reforms which will help in setting aside land for logistics facilities,” Agarwal mentioned.

Demanding the modernization of rail freight sector he added: “Railways have become an important mode of transportation. The Government must expedite the development of the rail-freight corridor to give a much-needed fillip to the rail freight sector. Modernization of rail terminals and handling facilities should be commissioned for a quicker turn-around of non-container rakes. There must be time-scheduled freight trains on all major routes. Service tax should also be there on all other railway freight transportation to make it a level playing field with other modes of transport.”