Summary of Logistics Policy – 2022
Vision of the Policy
The vision of the Logistics Policy – 2022 is to create an integrated logistics ecosystem in Odisha that will enhance the state’s competitiveness, operational efficiency, and sustainability. The policy aims to achieve this vision through a number of initiatives, including:
- Regulatory reforms: The policy will simplify and streamline the regulatory environment for logistics businesses in Odisha. This will make it easier for businesses to set up and operate in the state, and will reduce the cost of logistics.
- Investment in infrastructure: The policy will invest in the development of logistics infrastructure in Odisha, such as roads, railways, ports, and warehouses. This will improve the connectivity of the state and make it easier to move goods and materials around.
- Promoting innovation: The policy will promote the adoption of innovative technologies in the logistics sector. This will help to improve the efficiency and sustainability of logistics operations.
- Empowering people: The policy will focus on developing the skills and capabilities of people working in the logistics sector. This will help to ensure that the sector has the talent it needs to grow and succeed.
Incentives
The incentives are classified into the following segments:
- Building logistics infrastructure
- Skill development
- Assistance for technology and innovation with quality standard
- Building Logistics Infrastructure
| Incentive Name | Incentive Particular |
| Development of logistics infrastructure not falling under the New Age Mega Category | The Government of Odisha invites private developers to construct rail or road-connected ICDs/ Free Trade Warehousing Zones / Dry Ports/ Logistics Parks/ Integrated Logistics Parks/ Industrial Clusters/ MSME Parks, and any other logistics infrastructure across the State at strategic locations through PPP or Private Development mode. For these projects, the Govt. of Odisha shall provide the following incentives: Projects developed on land through IDCO or any other Government Land The land shall be facilitated from earmarked Land Bank Scheme of IDCO and other government lands wherever available as per the applicable concessional rate. No stamp duty shall be applicable to be paid with respect to the land allotted by the Government or IDCO to the units. Exemption from payment of premium for conversion of land for industrial purpose Last-mile connectivity support from State Government The Government shall provide access to utilities such as water and power and provide external infrastructure to the projects on both the categories mentioned above, such as rail connectivity (from the nearest railway station), Road Connectivity (from the nearest state highway / national highway) etc. The total cost of infrastructure development shall not exceed 10% of the fixed capital in building, plant, and machinery (excluding land) or INR 10 Crores (For rail-based infrastructure, the upper cap will be 20% or INR 25 crores), whichever is lower. This support is provided for PPP projects and projects developed by private developers. |
- Skill Development in the logistics sector
| Incentive Name | Incentive Particular |
| Establishment of Centre of Excellence (CoE) | The State Government shall establish a Centre of Excellence (CoE) along with Skill Development and Technical Education Department. The CoE shall be developed in association with leaders in the industry segment. The objective of the CoE is to analyse skill requirements and formulate various skill development modules, which are end-to-end training needs of the logistics sector. CoE shall house facilities required for the up-grading skill set of people. The facilities shall be built to conduct technical and non-technical training at CoE. Logistics Sector Skill Development Centre Government shall dedicate a few ITI Training facilities specific to the logistics industry |
- Assistance for technology and innovation with quality standard
| Incentive Name | Incentive Particular |
| Development of a dashboard and other data-driven Planning and Monitoring / Co-ordination tools in a collaborative environment of PM GatiShakti National Master Plan | It would aid in proper planning and visibility for the ongoing and the proposed connectivity projects |
| Providing assistance for the installation of logistics management software | Reimbursement of 50% of the cost of installation of logistics management software or INR 20,000 per installation per company, whichever is the lower cost. It is a one-time cost reimbursement provided by the Government to the companies which have their offices registered in Odisha. |
| Providing assistance for the Implementation of a Quality Management System | Reimbursement of 50% of the cost incurred for the implementation of Quality Management System (IMS /ISO 9001/ IS0 14001/ OHSAS 18001/SA 8000) in their infrastructure. The incentive will be capped at a maximum of INR 5 Lakh to improve the quality of delivery of goods and services. This is a one-time cost reimbursement provided by Government for cold storage/ warehouse/ integrated logistics parks/ MMLP/ any other logistics infrastructure. |
| Implementation of Incident Detection System in important corridors | Artificial and augmented intelligence tools to reduce time and cost overrun. |
Encouraging innovation in the logistics sector
- Government shall keep provision for reserved office space / Plug and-Play facilities in O-Hub, and upcoming IDCO Towers.
- The State shall propose a special Innovation Fund of INR 1 crore for supporting start-ups in Logistics (for the first two years). The State Logistics Cell shall be the custodian of the Fund, and allotment shall be done through competitive eligibility criteria.
Other Incentives
- A Comprehensive Logistics Action Plan shall be prepared, including standardisation and benchmarking of respective sectors for Warehousing, Human Resource Development, EXIM logistics, etc., corresponding to the National Logistics Policy 2022.
- A Logistics Master Plan should be prepared within 6-12 months from the date of commencement of the policy with long-term and short-term goals.
- At least 5 acres of land shall be demarcated in upcoming Industrial Estates/Industrial parks / Industrial Clusters and SEZs to develop common logistics infrastructure- such as warehouse/ cold storage/loading – unloading facilities /Truck Terminus, etc.
- Railway sidings are infrastructure that facilitates the intermodal movement of Bulk goods and provides the opportunity for Rail side warehousing activities. The Government may receive proposals from a private developer for the development of standalone Railway sidings and the need for the infrastructure will be evaluated. Based on the evaluation and the level of capital infused by the Private developer, Road Connectivity up to the siding will be provided. IDCO may facilitate the acquisition of land on behalf of the State Government.
- Idle land parcels available in various departments shall be monetized by developing common logistics infrastructure through PPP mode.
- Single Window Facilitation system: Logistics project proposals can be directly applied through the GO-SWIFT portal
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