Uttar Pradesh Warehousing and Logistics Policy 2022

New UP Warehousing & Logistics Policy 2022

 

Page 1 of 45 New UP Warehousing & Logistics Policy 2022

Page 2 of 45 Table of Contents List of Abbreviations 3

1. Background 4-5
2. Scenario in Uttar Pradesh 5
3. About Policy
4. Robust Infrastructure Development 7-11
5. Comprehensive Logistics Planning 11-13
6. Sustainable Logistics 13-14
7. Ecosystem Support for Logistics 15
8. Attract Investments for Logistics 16-19
9. Incentive Scheme 19-40
10. Policy Implementation 40-42 New UP Warehousing & Logistics Policy 2022 Page 3 of 45 Abbreviations
11. GDP Gross Domestic  Product
12. GST Goods and S ervices Tax
13. CAGR Compound  Annual  Growth  Rate
14. DFC Dedicated Freight Corridor
15. EDFC Eastern Dedicated Freight  Corridor
16. WDFC Western Dedicated Freight Corridor
17. CLAP Comprehensive Logistics Action Plan
18. GSDP Gross State Domestic Product
19. PPP Public-Private- Partnership
20. LEADS Logistics Ease Across Different States
21. BRAP Business Reform Action Plan
22. UPSIDA Uttar Pradesh State Industrial Development  Authority
23. LoC Letter of Comfort
24. NLP National Logistics Policy
25. ICD Inland Container Depot
26. CFS Container Freight Stations
27. AFS Air Freight Stations
28. CA Controlled Atmosphere
29. MA Modified Atmosphere
30. IQF Individual Quick Freezing
31. PFT Private Freight Terminals
32. PMGS PM Gati Shakti
33. NPG Network Planning Group
34. IIDC Infrastructure & Industrial Development Commissioner
35. TSU Technical Support Unit
36. CEO Chief Executive Officer

27 UPPCB UP Pollution Control Board  .

28. IoT Internet of Things
29. ATMS Advanced Traffic Management Systems
30. UPSDM UP Skill Development Mission
31. IDTR Institute of Driver Training and   Research
32. NSDC National Skill Development Corporation
33. NGO Non – Government Organization
34. EIP Eligible Investment period
35. PIU Policy Implementation Unit
36. EC Empowered Committee
37. HLEC High level Empowered Committee
38. IWAI Inland Waterway Authority of India

 

New UP Warehousing & Logistics  Policy

2022 Page 4 of 45

1. Background Logistics plays a huge role in the global economy. The essence of a business is to exchange goods or services for money via trade. Logistics is the path these goods and services take to complete the transactions. The logistics industry is not only a key contort economic development but also plays a significant role in resolving environmental and social issues. As the markets evolve the companies are adopting different supply chain strategies to provide better services to their customers.

The Global Logistics market was valued at USD 7,641.20 billion in 2017 and is projected to reach USD 12,975.64 billion by 2027, registering a CAGR of 6.5% from 2020 to 2027 (Global Logistics Market Statistics, 2021-2027).

The Asian market is projected to be at the centre of global logistics activity—both in terms of growth and global investment in the world. It is expected to account for 57% of the growth of the global e-commerce logistics market between 2020 and 2025 (Statista, 2022) led by China, Japan and India.

Logistics is a critical determinant of trade within the country and is significant for India’s competitiveness in global trade as a whole. The cost of logistics as a percentage of the GDP in India is as high as 13%-14% compared to 7%-8% in developed countries and 9%-10% in other BRIC countries. A reduction of even 1% in the logistics cost would mean a saving of approximately INR 1.4 Lakhs crore per annum. Therefore, there is an inherent need to develop a robust, well integrated, and efficient logistics ecosystem in the country.

India’s rank on Logistics Performance Index 2018 has jumped 10 positions from 54 in 2014 to 44 in 2018 (World Bank 2018). The Logistics Industry in India was valued at US$150 billion presently (FY2021) and accounts for 14.4% of the nation’s GDP and is expected to reach US$380 billion by 2025 (Logistics Skill Council, 2022). Post recovery from the global pandemic, the logistics industry in India is poised for high growth at a CAGR of 10-12% owing to digitization (Statista, 2022).

Currently, freight transport in India is majorly road-dominated—accounting for 59% of freight movement. Approximately 35% of freight demand is met by rail, 6% by waterways and less than 1% by air (Niti Ayog, 2021). In order to ensure comprehensive development of logistics infrastructure in the country, the Union Government of India has been taking multiple initiatives. These are primarily based on 4-pillars viz. infrastructure development, logistics planning, pro-active governance and adoption of technology. This includes easing of FDI norms, implementation of GST, stimulating growth of ecommerce, positive changes in regulatory policies, and all round infrastructure & industrial development through programmes like “Gatishakti”, “Sagarmala”, “Make in India” etc. The Government of India is coming up with

2-Dedicated Freight Corridors (DFC)i.e. Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) as high speed and high-capacity railway corridor for the transportation of freight. As these corridors reduce the logistics costs and timing of transportation, 2-prominent Industrial Corridors i.e. Delhi-Mumbai Industrial (DMIC) and Amritsar-Kolkata Corridor (AKIC) are coming up around both these DFCs. Other projects include Multi Modal Logistic Parks, Rapid Rail Transit System,

New UP Warehousing & Logistics Policy 2022 Page 5 of 45 Expressways, UDAN – Regional Air Connectivity Scheme etc. are also being implemented to reduce the cost of logistics spending from 14% of GDP to less than 10%. The Central Government is also emphasizing pro active and effective governance for focused development of Logistics sector in India and has set up a dedicated Logistics Division to ensure coordinated growth of the logistics industry started in India in 2017. The Union Government has launched PM Gati Shakti National Master Plan in 2021 for integrated and comprehensive project planning for infrastructure and industrial development in India which will further improve the logistics in the country. Recently, the National Logistics Policy 2022 has been launched by the Central Government that envisions to  improve efficiency in services (processes, digital systems, regulatory framework) and human resource by providing a Comprehensive Logistics Action Plan (CLAP).

2. Scenario in Uttar Pradesh Uttar Pradesh is 4th largest state in India in terms of area and accounts for 17% of the population of India. Being strategically located adjacent to National Capital Region it offers a lucrative gateway to eastern exporting ports and central India. The State offers a vast consumer and labour market to investors. Presently, the gross state domestic product (GSDP) of Uttar Pradesh at current prices has been estimated to be US$ 294.90 billion (INR 21.74 trillion) in 2021-22 (MoSPI, 2022). Contributing nearly 8% of national GDP, Uttar Pradesh, with its investor friendly policies, reforms and proactive governance, has set a target to become USD 1 trillion-dollar economy. For this, the State intends to attract investments to the tune of INR 10 lakh crores. Therefore, the State Government is aggressively promoting rapid industrialisation and infrastructure development as manufacturing and logistics are intrinsically linked. Uttar Pradesh has emerged as one of India’s most preferred investment destinations. In recent few years, the State has established itself as a leading investment destination in India. Merchandise exports from

Uttar Pradesh reached US$ 16.39 billion in FY21 and US$ 18.83 billion in FY22 (until February 2022).

The State ranked 11th in India in terms of FDI inflows in 2021. In 2019, 147 investment intentions worth Rs. 16,799 crore (US$ 2.40 billion) were filed in the State (DPIIT). Given the emphasis laid on logistics development and for providing ease of logistics, Uttar Pradesh has been graded under “Achievers” category within the Landlocked cluster in Logistics Ease Across Different States (LEADS) Survey 2022. It has been recognised as one of the leader States, in terms of “quality of rail infrastructure” and leading State to process of integration of essential data layers on PM Gati Shakti portal (LEADS 2022.

Previously, Uttar Pradesh has jumped 7 positions to rank 6th in the country in the last Logistics Ease Across Different States (LEADS) ranking 2021 and was categorised as “Top Improvers”. New UP  Warehousing & Logistics Policy 2022 Page 6 of 45

3. About Policy 3.1. Vision To develop an integrated logistics ecosystem in the State and connect different modes of transport to reduce logistics cost and time, thereby enhancing competitiveness, operational efficiency of businesses and providing business friendly trade and investment landscape in the State. 3.2. Objectives The State aims to achieve vision of the policy through the following –
4. Create robust transportation infrastructure network promoting intermodalism for enhanced traffic linkages towards providing last mile/ first mile connectivity to economic hubs of the state
5. Upgrade and improve the existing warehousing and logistics infrastructure to boost economic activities and generate large scale employment opportunities
6. Promote integrated development of logistics services in the State for reducing logistics costs and improving efficiency
7. Create an effective institutional governance mechanism for effective administration and integrated planning for development of logistics sector
8. Attract private investments in setting up logistics facilities in the state with forward and backward linkages
9. Promote excellence and up skilling, re-skilling & capacity enhancement of the workforce to cater to the needs of Logistics industry
10. Establish smart logistics practices by promoting adoption of technology and modern practices to enable automation, green logistics and safety. 3.3. Strategy Outline Through this new Policy the State puts forward a strategy to attract private participation in the State for the comprehensive development of Logistics sector, which can be represented as below – KEY PILLARS New UP Warehousing & Logistics Policy 2022 Page 7 of 45 3.4. Scope of Policy As defined by Government of India in the National Logistics Policy 2022, ‘Logistics’ means Transportation & handling of goods between points of production and consumption, storage, value addition and allied services.

 

 

 

“Logistics infrastructure” comprises of nodes and connections, more recognizable as ports, stations, Multimodal Logistics Parks (MMLPs), warehouses, and other business premises, connected by roads, railways, shipping, inland waterways, air routes, pipelines, etc., that are used by a wide range of carriers (Section 2 of the National Logistics Policy (NLP) 2022 notified vide DPIIT G.O dated 28.09.2022). In the light of above, the policy shall include the following – 1) “Storage facilities” include –

1. Warehouses including go-downs both open/ closed developed for handling and storage of cargo in bulk/ break bulk form;
2. Silos built as vertical storage structures for storing bulk cargo in both solid and liquid form;
3. Cold Chain facilities developed for storage and minimal processing of perishable/ temperature sensitive cargo having controlled / modified atmosphere chambers, variable humidity chambers,

quick/ blast freezing, mobile pre-cooling vans, reefer vehicles and facility for weighing, sorting, grading, packing, pre cooling, fog treatment and other processes.

2) “Logistics Parks and Dry ports” include Multi-modal logistics parks and transport terminals including Inland Container Depots, Container Freight Stations and Air Freight Stations with or without support storage facilities.

3) Other facilities include –

1. Truckers parks or lay-bays for truck parking cum resting spaces
2. Cargo terminals including private railway sidings and freight terminals
3. Inland vessels including barge, tug-boats, jet-ferries, etc.

As defined in Inland Vessels Act 2021 and Berthing terminals

Strategy 1 4.

Robust infrastructure development The State has a well-developed social, physical, and industrial infrastructure. Uttar Pradesh has the longest network of National Highways and Railway tracks in India. It also has good connectivity through 48 National Highways, 13 existing & upcoming Expressways, 5 existing & upcoming International airports, more than 20 routes for domestic air connectivity and rail links to all major cities.

4.1. Multi Modal Connectivity The long-term strategy of the Government of Uttar Pradesh is to create a connectivity web of air,water, road and rail network that will ease logistics for the New UP Warehousing & Logistics Policy 2022 Page 8 of 45 industry to access the global and domestic market. The policy aims at strengthening this network to ensure smooth and low cost logistics in the State to leverage its industrial investment potential. a) In addition to hosting the largest railway network (more than 16,000KM) in the country, the State is home to a considerable portion of the Western Dedicated Freight Corridor (WDFC) and Eastern Dedicated Freight Corridor (EDFC). The WDFC will provide an easy access to the JNPT port at Mumbai (Western India) and with 57% of EDFC passing through UP & connecting the Haldia Port at Kolkata (Eastern India), the State has created a strategic framework to leverage both these freight corridors. With both the corridors – EDFC and WDFC intersecting at Dadri (located in Gautambudha Nagar district), the State has a unique advantage in the logistics sector. b) Nearly 1,100KM of the country’s first inland waterway is already operational in the State connecting Prayagraj to Haldia port.

 

 

 

Terminal at Varanasi and various floating terminals are operational along the NW-1 at Ghazipur / Rajghat, Ramnagar (Varanasi) and Prayagraj terminals. c)

In addition to being home to one of the highest National Highway networks in the country, Uttar Pradesh has established itself as the State of Expressways with thirteen existing & upcoming expressways – six expressways have been completed (1225 kms) while seven are under various stages of development. These expressways are bringing about the much needed overall socio-economic development in the State. Also, there is an opportunity to develop new industrial corridors along these expressways. New UP Warehousing & Logistics Policy 2022 Page 9 of 45 d) With existing international airports at Lucknow, Varanasi, Kushinagar & new airports are coming up at Jewar and Ayodhya, Uttar Pradesh is set to become the only state in the country with 5 international airports. In addition, 7 airports have been made operational under Regional Connectivity Scheme (RCS) for domestic connectivity, and another 8 airports are in pipeline. The Jewar Airport is set to be one of India’s largest international airport spread over 5000 hectares. Besides, more than 20 routes have been identified for domestic air connectivity.

4.2. Promotion of Dry Ports Uttar Pradesh is a land locked State with exporting clusters spread across the length and breadth of the State. Therefore, the State has developed dryports over the period of time to facilitate export cargo movement to the sea ports.

1. a) The existing logistics infrastructure at Uttar Pradesh includes Moradabad rail linked combined domestic and EXIM terminal, Rail linked Pvt Freight Terminal and Inland Container Depot (ICD) in Kanpur, ICD at Dadri Terminal and Kanpur ICD.
2. b) The State has an advantage of upcoming terminals along/ at the Inland waterway and multi modal terminals along/ at freight corridors.

A Multi-Modal Logistics Hub (MMLH) at Dadri and Multi Modal Transport Hub (MMTH) at Boraki are also being developed, which will further give a fillip to the sector.

1. c) India’s first “Freight Village”, spread over 100 acres is coming up at Varanasi. Connecting the exporting hubs of Eastern UP to the ports New UP Warehousing & Logistics Policy 2022 Page 10 of 45 of East India, the village will serve as a trans-shipment hub for inbound and outbound cargo The State Government aims to strengthen the existing dry ports, inland container depots, freight stations and logistics terminals at suitable locations with access to road corridors, quality network of 4-lane and 6-lane highways, interlinking roads, etc. The State Government plans to attract private investments for developing dry ports with modern facilities in the State through this policy.

4.3. Industrial Infrastructure As a result of rapid infrastructure development, there has been a considerable rise in the development of industrial clusters/hubs and PublicPrivate-Partnership (PPP) projects in the State in recent few years.

1. a) Government of India is developing various Industrial Corridor Projects along side the freight corridors of WDFC and EDFC as part of National Industrial Corridor Programmed viz. Delhi Mumbai Industrial Corridor (DMIC) and Amritsar Kolkata Industrial Corridor (AKIC). These corridors aim at developing green field industrial cities in India, including prominent exporting and manufacturing hubs of the State.
2. b) Important projects along side DMIC-AKIC include development of Integrated Township along the DMIC catchment area in Greater Noida; Proposed Integrated Manufacturing Cluster (IMC) under AKIC Project at Prayagraj and Agra.

 

1. c)  Some of the other key industrial infrastructure projects planned in the State include-

• Out of the 2-Defence Industrial Corridors announced in India, one is coming up in Uttar Pradesh on 6-nodes within UP, viz. Agra, Aligarh, Kanpur, Lucknow, Jhansi & Chitrakut over 5000 ha of land.
• State’s first Medical Device Park has been launched along Yamuna Expressway. First of its kind Film City and projects like Toy Park, Apparel Park, Handicraft Park are coming up alongside of Yamuna Expressway

. • A Logistic Hub along Yamuna Expressway, MRO/ Cargo complex near upcoming Jewar International Airport and Logistics centres/ hubs along Expressways are being planned in the State.

• Other projects including, Mega Food Park in Bareilly, Transganga City in Unnao, Plastic Park in Gorakhpur, Garment Park in Gorakhpur and several Flatted Factory complexes in Lucknow, Kanpur, Agra, Ghaziabad, Gorakhpur & Aligarh are being planned. With ease of logistics, more such industrial infrastructure projects are likely to come up in the State which will in turn boost investment momentum and fuel economic growth. This policy will therefore play a key role by providing New UP Warehousing & Logistics Policy 2022 Page 11 of 45 a supporting ecosystem for the development of such industrial infrastructure in the State.

4.4. Quality Storage facilities UP has one of largest storage capacity in India, w.r.t. total number of railway good sheds (689) and cold storages (2406) where the cold storage capacity of the State is highest in India having a share of 39.84% of the national capacity (LEADS 2021). As Uttar Pradesh is already a major player in agriculture and is envisaging to  promote manufacturing of electronics, pharma, defence etc., it is important to develop quality storage facilities equipped with modern technologies alongside industrial corridors, expressways, freight corridors etc. Therefore, the State Government aims at enabling the development of such quality storage facilities across the State through this policy by attracting private investments in the sector.

The policy encourages setting up of retail linked warehouses with modern facilities including grading, sorting, and packing facilities with  in house testing labs. It also enables expansion of Cold Storage infrastructure to increase the shelf life of perishable goods and maintaining the quality thereby providing impetus to export of agri commodities. The State Government will also identify the existing storage facilities owned by various Government agencies and promote their upgradation by private entities through relevant State Departments/ Agencies involved such as Cooperative Department, Horticulture Department, Agriculture Department, etc.

Strategy 2 5. Comprehensive Logistics Planning Since the Logistics Industry in India is highly defragmented, integrated and comprehensive planning for removing imbalanced distribution of logistics services becomes a very crucial aspect of governance. As Government of India is laying high emphasis on holistic logistics planning to improve the country’s trade competitiveness, the State Governments are also focusing on logistics planning.

 

The Government of Uttar Pradesh has also taken multiple steps in this context. 5.

1. Integrated State Logistics Plan: For holistic development of the logistics sector, the State Government has developed a comprehensive Integrated State Logistics Plan, to ensure seamless connectivity and swift cargo movement across the State benefitting the export hubs at large. Areas of improvement and development are being regularly monitored and reviewed through the plan. Further in this context, the State is in process of preparing City Logistics Plans for identified seven smart freight cities i.e. Agra, Kanpur, Varanasi, Prayagraj, Lucknow, Ghaziabad & Meerut to develop logistics in peri urban New UP Warehousing & Logistics Policy 2022 Page 12 of 45 areas and towns. It will help cities map their current freight performance, define their present and future needs, and identify reform areas in their respective areas. 5.
2. Integration with PM Gati Shakti National Masterplan Uttar Pradesh has been one of the leading states in integrating the State Masterplan with the PM Gati Shakti National Masterplan (PMGS-NMP) to facilitate project planning and accelerate the development of logistics infrastructure in the State. Post the launch of NMP, relevant State Departments were mobilised for geo-referencing and mapping their assets online in coordination with Bhaskaracharya National Institute for Space Applications and Geo-informatics (BISAG-N) & Remote Sensing Applications Centre UP (RSAC-UP). So far, the State has successfully integrated all 20 mandatory layers identified by Government of India. Further, 27 additional layers that have been identified as critical for project planning, have been created within the State Portal. The policy will adopt an integrated approach with National Master Plan (NMP) for the development of robust infrastructure in the State. GatiShakti NMP will benefit the logistics sector most with investment across roads, highways, ports, airports, multi-modal terminals etc. 5.
3. Institutional set up for Logistics Planning The State also has comprehensive institutional set up comprising dedicated Nodal Officer, State Logistics Cell and Logistics Coordination Committee for the development of logistics sector. A dedicated “Logistics Cell” has been set up under the chairmanship of Additional Chief Secretary, Infrastructure & Industrial Development Department vide Govt Order No. 107/77-6-2021 dated 8th January 2021.

This dedicated cell will ensure synergy and swift decision making between departments including Civil Aviation, Transport, Power, Horticulture, Warehousing Corporation and other related departments in planning logistics development in the State. Also, Logistics Coordination Committee has been constituted under the chairmanship of Chief Secretary vide Government Order No. 108/77-6-2021 dated 8th January 2021. Further, City Logistics Coordination Committee has been set up under the chairmanship of Additional Chief Secretary Housing & Urban Planning and City Logistics Committees in the identified seven smart freight cities in UP under the chairmanship of respective Municipal Commissioners has been set up vide Govt Order No.8-3099/262/2021 dated 9th September 2021.The City Logistics Coordination Committee is responsible for formulation, reform, implementation, and monitoring City Level Committee to build logistics infrastructure in the state apart from consultations and coordination with Government of India. The committee at the city level is responsible for Formulation  of City Logistics Plan and for on ground development of logistics infrastructure in their respective regions. New UP Warehousing & Logistics Policy 2022 Page 13 of 45 Similarly, for Gati Shakti implementation in the State, a Secretary rank officer has been appointed as State Level Nodal officer for PMGS. An Empowered Group of Secretaries (EGoS) has been established under the chairmanship of Chief Secretary vide IID6 G.O No 177/ 77-6-2022 dated 02.02.2022. Also, a Network Planning Group (NPG) has been established under the chairmanship of Infrastructure & Industrial Development Commissioner (IIDC) vide IID 6 G.O No 1122/77-6-2022 dated 28.05.2022 and a Technical Support Unit (TSU) has been established under the chairmanship of Chief Executive Officer (CEO) Invest UP vide IID 6 G.O No. 1122/77-6-2022 dated 28.05.2022. With this, the State has created a comprehensive institutional set up for Logistics planning in accordance with Central Government directives which is and shall continue working for integrated planning and comprehensive development of the Logistics sector in the State.

Strategy 3 6.

Sustainable Logistics 6.1.

Green Logistics The policy aims at promoting smart warehousing, use of solar energy, decongestion of roads to lower emissions, usage of Industry 4.0 like Internet of Things (IoT), AI, Block chain etc. for improving the efficiency of the processes cutting across the different logistics facilities to enable sustainable and green logistics in the State.Towards this, the policy promotes private investments for adopting green measures in the logistics industry. This also includes the State’s Endeavour to promote captive solar power generation by allowing open access to Logistics industry. The State shall also promote efficiency improvement in transportation modes by ensuring last mile connectivity and promoting right modal mix (increasing share of energy in efficient modes/green modes) through the upcoming City Logistics Plans. These plans shall also promote smooth logistics movement, electric mobility, and reverse logistics to minimize idle time and promote technology innovations to minimize polluting impact of logistics & optimize capacity utilization.

6.2. Innovations and Intelligent Logistics The policy encourages the usage of modern technology and digital transformations to provide leaner and smart logistics for seamless connectivity. The policy enables industry to use digital technologies to transform the logistic sector in the state. In order to enable access to efficiency enhancing mechanisms and adopt modern techniques, the state will encourage acquisition of better equipment such as larger and wellequipped trucks, higher load capacity railway wagons, etc. and will promote adoption of innovative logistics operation technologies. New UP Warehousing & Logistics Policy 2022 Page 14 of 45 This includes encouraging research & development, promoting of digitization techniques, robotics and automation in material handling, cargo transportation & de-congesting cargo traffic at logistics facilities, automation in supply chain, and block chain technology-based systems for transaction validations, exchange of documentation &information in a secured manner, and other innovations.

6.3. Smart Enforcement for safe and smooth movement of Cargo The State Government is already implementing the Advanced Traffic Management Systems (ATMS), Way in Motion sensor systems with cameras in all lanes of Toll Plazas, and Static Weigh Bridge at each Toll Plaza of main carriageway.

 

The provision of E-challans on major routes has already been implemented. Integrated mining surveillance system through Mine Mitra (minemitra.up.gov.in) has been developed. It provides On line citizen/Farmer e-Services, Online Mineral Management, Integrated mining surveillance system, Online e-commerce platform and DSR to Lease deed mapping. These measures shall be reviewed and upgraded from time to time by relevant State Departments/ Agencies. The State Government through regular review of the State Logistics Plan and review of State’s performance on LEADS ranking, promotes the use of such technology interventions made by various State departments/ agencies to enable safe and smooth logistics in the State. It also promotes use of technology by private logistics operators/ developers to ensure hassle free movement and safe handling of cargo in the State through this policy (Para 6.2.)

Strategy 4 7.

Ecosystem Support for Logistics 7.

1. Skill Development for Logistics The State has the highest nos. of training centres with maximum nos. of individuals trained in logistics (LEADS 2021). Skill development courses for loaders/ unloaders and packers and commercial drivers are available through UP Skill Development Mission (UPSDM).

Training in logistic sectors through its empanelled venders/training providers is being provided by developing private facilities for training in the state. There are around 688 Motor Driving Training Schools under private ownership which are providing training to heavy vehicle’s (Bus/Truck) drivers. State owned Drivers Training and Multi Skill Institutes are being constructed in 12 divisions to provide training to the truck drivers as well as other logistics personnel such as loaders/unloaders, packers etc. The Institute of Driver Training and Research (IDTR) is also under construction at Raebareli. New job roles are being identified to cater to the 21st century skills in logistics sector in close coordination with experts in the markets and Logistics Sector Skill Council.

The new curriculum and trainings will be New UP Warehousing & Logistics Policy 2022 Page 15 of 45 developed in consultations with stakeholders in the logistics industry and NSDC. In order to strengthen the skilling ecosystem for logistics further, the State Government shall create a dedicated Task force at the State Skill Development Department in coordination to conduct a gap assessment study with a mandate to identify actions areas viz. requirement of new courses, programs for skilling and re-skilling, spread of training institutions, etc. Nonetheless, the policy promotes the industry to provide relevant industry related skilling and incentivises such costs as well. 7.

2. Centre of Excellence The State shall endeavour to promote development of new technology, operation models and opportunities in the logistics sector through the establishment of Centres of Excellence (CoEs) in the State.

Government organizations / PSUs/ Pvt companies shall be encouraged to set up Centres of Excellence (CoE) in the field of Logistics to facilitate R&D, innovations, technology acquisition and other facilities to support the logistics ecosystem in the State. The Government of Uttar Pradesh shall provide financial support in the form of Grant-in-aid (covering capital and operational expenditure) upto INR 10 crores to each CoE during span of 5 years from the date of establishment, subject to maximum five CoEs.

It is expected that the CoE would become self-sustainable by the end of 5 years. The Industrial Development Department will sanction and disbursal of incentives to the project on the recommendations of the High level Empowered Committee (HLEC) as defined in this policy. Moreover, the release of funds/ incentives by the Government shall depend upon their performance.

Strategy 5 8.

Attracting investments for Logistics 8.

1. Industry Status to Logistics sector – Uttar Pradesh has been the pioneering State in India to have granted industry status to the logistics sector, due to which it has established itself as a favourable investment destination for logistics industry in northern India. Such industry status was extended as per the UP Warehousing and Logistics Policy 2018to only those projects which were granted ‘infrastructure status’ by Government of India. Under this new policy, the ‘Industry Status’ is now being extended to all the eligible projects as defined in this policy.

 

As a result, Industrial Land Use and Industrial FAR will be applicable to all such Logistics projects in the State. This will reduce the cost of setting up business for Logistic industry in the state. New UP Warehousing & Logistics Policy 2022 Page 16 of 45 8.2. Ease of Doing Business

1)   Admissible Height: This Policy allows structures with height beyond 15mtrs (as per Para 3.4.2 under Part 4 of National Building Code 2016) subject to the condition that there is no regular/continuous human habitation beyond fifteen meters (15 meters) and adequate fire-fighting systems are installed as prescribed by the State Fire Department. The Fire Department shall issue special instructions in this regard with respect to the logistics sector to field level units.

2)   White Category: Given that certain warehousing & logistics activities have lower pollution footprint and waste generation, the categorization of such activities based on their level of air, water pollution and hazardous waste generation will be rationalised from time to time. The State Government has already categorised warehousing and logistics activities as prescribed by UP Pollution Control Board (UPPCB) vide G.O no. H 80284/ 213/ 2017-22 dated 26.08.2022 as ‘White’ category. The specifications of activities qualifying under ‘White category’ shall be reviewed from time to time by UPPCB in consultation with the Industry Department, GoUP.

3)   Single Window Clearance: The State Government through Nivesh Mitra provides online NOCs/ Clearances/ Approvals for setting up and operating the industries in the State. To further enable ease of doing business for warehouses & logistics industry in the State, specific clearances/ NoCs/ Approvals required for the sector will be separately listed and provided on the Nivesh Mitra portal.

4)   24X7 Operations:

Warehouses will be permitted to operate 24×7 in the State. To encourage female employment, such projects will also be allowed to employ women in all shifts (including night shift) on their consent, provided all safety, transportation and other measures for such female employees as prescribed by the State Labour Department are ensured. 8.3. Fast track land allotment for Logistics park 8.3.1. Preferential land allotment within Industrial Development Authority/ Development Authority areas, as stipulated in UP Industrial investment and Employment promotion Policy 2022, will be done on fast-track basis for development of Logistics Park as defined in this policy with minimum Capital Investment (as per Para 9.3.1 (7) of this policy) of INR 500 Crores

1. Invest UP, upon receipt of the online application along with an application fee for such fast-track land allotment, will scrutinise the application based on the DPR and other parameters set forth for the same.
2.   A Fast-Track Land Allotment Committee under the Chairmanship of Infrastructure and Industrial Development Commissioner, as New UP Warehousing & Logistics Policy 2022 Page 17 of 45 stipulated in UP Industrial investment and Employment promotion Policy 2022, will provide its final approval for such allotment based on the scrutiny done by Invest UP. 8.3.2. In case the investors require the State Government to acquire/ purchase land for such Logistic Parks outside Industrial Development Authority/ Development Authority/ Urban Local Bodies/ other notified areas, following provisions will be applied –
3.  The Nodal Agency as designated by the Government, will arrange to acquire at least 1.25 times of the land required by such eligible Logistics Park so that a minimum of 4 more Logistic units or industrial units can be set up in the additional land so acquired. Such eligible Logistics Park can be allocated up to a maximum of 80% of the saleable area.
4.  While submitting a proposal for allotment of land under this provision, the eligible Logistics Park can also submit a proposal upfront for allotment of land for setting up of additional Logistic units or Industrial units in the additional land so acquired, and in such case, all such additional projects/ units will also be treated as eligible for fast-track allotment irrespective of the level of investment in them.
5.  For the purpose of calculating eligibility under this scheme, only the capital investment of the Logistics Park shall be considered and the capital investment of the other 4-units shall not be considered.
6. In case where such eligible Logistics Park submits a proposal for allotment of land for additional units less than 4, then the Nodal Agency will allot the balance land for setting up logistics or industrial units as per its own rules/ procedure.
7. . The allotment cost shall be determined after including the purchase/ land acquisition cost, internal and external development cost as per actuals, and administrative charges as may be specified from time to time. Detailed guidelines in this regard shall be issued separately.
8. The Nodal Agency may decide to take the entire acquisition cost/ allotment price upfront, or part upfront and part in the form of Bank Guarantee or any other mechanism to ensure that the entire cost is secured in favour of the agency. Any escalation in the cost of acquisition as a result of intervention of the courts will have to be borne by such eligible project/ projects.
9.  For the purpose of map approval on such acquired land

he byelaws of the designated Nodal Agency shall apply. However, no charges/ approval from the designated Nodal Agency will be required for subsequent leasing/ renting out plots/ units by the developer within such eligible Logistics Park during the lease period.

New UP Warehousing & Logistics Policy 2022 Page 18 of 45 8.3.3. Safety: If it is essential to establish a new police station/check post in the logistics park/ dry port/ air freight station or industrial area where the eligible projects are being set up, then for this purpose land free of charge will be provided by developer/concerned authority.

8.4. Development of Designated Logistics Zones: The State has several high potential zones which can emerge as logistics hubs in India. For instance, the WDFC and EDFC – the two key freight corridors of the country, passing through the State and intersecting at Dadri (Greater Noida) offer huge potential for the State to develop multiple Logistics Hubs along their catchment areas. Similarly, the extensive network of Expressways connecting the prominent exporting hubs spread across the length and breadth of UP offer several pockets in their proximity that can also be developed as Logistics Hubs. Other areas near key infrastructure projects such as the upcoming Jewar International Airport, Regional Domestic Airports and Inland Waterway can also emerge as prominent

 Logistics Hubs in the State.

1. A) Region in proximity of such infrastructure projects will be identified for promotion as designated Logistics Zones from time to time by the State Government through a separate Government order.
2. B) For the development of such zones, the State Government will facilitate acquisition of land in the areas not notified under any

Industrial   Development Authority or Development Authority or Special Area Authority or Regulated Area or Urban Local Body as per Para 8.3 of this policy.

1. C) The private investors will be provided additional incentives for the development of logistics facilities in such zones as per the provisions of this policy (Chapter 9).
2. D) The State Government will also promote development of external infrastructure in these areas including road connectivity, power supply and other basic amenities in the areas falling under the notified designated Logistics Zones. 8.5. Incentive Scheme The Policy provides attractive subsidies and incentives to the logistics infrastructure which are categorised in 3-heads, viz.

• Storage facilities such as Warehouses, Silos, Cold Chain Facility;
•  Logistics Parks and Dry ports including Multi modal parks, Inland Container Depots, Container Freight Stations and Air Freight Stations; and
• Other facilities like Truck lay bays, Private Freight Terminals, Berthing terminals and Inland Vessels. New UP Warehousing & Logistics Policy 2022 Page 19 of 45 The eligible projects as defined in this policy will be primarily provided front end and back end subsidies, wherein –
• The Front end subsidies include exemptions/ concession which shall be allowed to the eligible projects as defined in this policy before commencement of commercial operations. Such projects will have to register with the Nodal Agency who will subsequently issue a Unique ID after verifying the relevancy and completeness of the application. Letter of Comfort (LoC) will not be compulsory for availing these incentives at this stage. However, the applicants will have to obtain the Letter of Comfort (LoC) at a later stage.
• In case, eventually the application for sanction of LoC is rejected or the project is not completed within the eligible investment period as defined in the policy or violates any provisions of the policy, the front end incentives provided to the applicant as exemptions/ concession shall be recovered through the Bank Guarantee submitted by the applicant.
• The Back end subsidies as listed in this policy for respective eligible projects shall be provided only after project completion and commencement of commercial operations. Such benefits will only be provided to the eligible projects to whom the Letter of Comfort (LoC) has been sanctioned by the Nodal Agency. 9. Incentive Scheme 9.

1. Storage facilities 9.1.1. Key definitions
2. Effective Date means the date from which this Policy becomes effective.
3. Effective Period means the period starting from the Effective Date till the period for which this Policy remains in force (5 years) or until any amendment or repeal thereof by the State Government.
4. Cut off date means the Date of Commencement of Investment of the project in case investment starts on or after Effective Date of the Policy. In case, the investment commences prior to the Effective Date, the cut-off date will be the Effective Date of the policy. However, in case only land is acquired prior to the Effective Date,the date on which the first investment towards any of the other heads (except Land) defined under Capital investment is made on or after the Effective Date will be considered as Cut-off Date. However, the cut off cannot be beyond the effective period of the policy.
5. Eligible Storage facility project means following facilities set up in the State of Uttar Pradesh – i. Warehouse including go-downs developed over minimum area of 1lakh sq.ft and minimum Capital Investment of INR 20 Crores as defined in this policy New UP Warehousing & Logistics Policy