Tamil Nadu on Saturday announced a Logistics Policy and Integrated Logistics Plan (TNILP) 2023, that provides an overarching policy framework for integrated development of the logistics sector in the State to support economic growth.

The Integrated Logistics Plan for the next 10 years outlines various interventions identified as per the initial baseline study, their envisaged outcomes, timeliness as well as key stakeholders responsible for their implementation.

Jobs

The plan’s focus is on creation of infrastructure and growth of the logistics sector in the State and creation of 1.40-1.60 lakh direct and indirect jobs opportunities.

Proposed Incentive

Fiscal incentives will be applicable for a period of five years from the date of promulgation of the policy and further extension will be considered based on the effectiveness and emerging requirements.

The incentives will be extended to players like logistics service providers, logistics technology providers and developers of integrated logistics park.

A one-time reimbursement of 100 per cent will be provided of the patent registration fees in India to technology providers, start-ups and other business units developing technology-enabled solutions for logistics efficiency improvement — subject to a cap of ₹25,000 per patent. The incentive will be available to enterprises having registered offices in Tamil Nadu and to individual entrepreneurs who are residents of the State.

A one-time cash award of 50 per cent of the technology adoption cost, capped at ₹1 crore, will be allotted to three applicants annually for adopting modern technologies such as RFID, Global Positioning System (GPS), IoT, robotics & automation, blockchain, artificial intelligence and data analytics, among others. The incentive will be made available to logistics service providers having registered offices in Tamil Nadu, the policy said.

A one-time reimbursement of 100 per cent of (1) vehicle registration charges in the State and (2) road tax for one year for reefer trucks including retrofitting of capacity of over 15 MT by logistics trucking companies & enterprises registered in Tamil Nadu. The fiscal incentive will be provided for first 500 reefer trucks in the State registered during the policy period.

Green Logistics Park incentive

Integrated Logistics Park developers undertaking green and sustainable initiatives as listed in the Tamil Nadu Industrial Policy, 2021, will be eligible for a 25 per cent subsidy on cost of capital for setting up such initiatives, subject to a cap of ₹5 crore.

Outlay

An initial phase investment outlay of ₹62,541 crore has been estimated based on the assessment carried out for the identified three (2 EXIM, 1 Domestic) freight corridors in the State. The investment outlay will change on addition of interventions as the plan is envisaged to be updated on a rolling basis considering the emergence of new trends and requirements. Further, it is also proposed to conduct detailed study of other freight corridors in the State to identify additional interventions and associated investments.

The Integrated Logistics Plan focuses on 50 interventions across the six policy strategic themes over the next 10 years — covering envisaged interventions for creation, augmentation and improvement of trunk and terminal infrastructure, incentivisation/ fiscal support to various segments of the logistics industry as well as capacity building.

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