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Commerce Ministry moots separate department for logistics

Wednesday, 29 May 2019

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The Ministry of Commerce has proposed to create a separate department for trade facilitation and logistics for better coordination among different government units.

At present there is no single department to look at all the aspects related to logistics covering various modes of shipment such as roads, sea and railways. The logistics division is functioning under the Department of Commerce and headed by a special secretary-level officer.

A detailed Integrated National Logistics Action Plan will be rolled out covering over 60 interventions, focused on driving logistics development and logistics efficiency.

The proposal is part of a 100-day action plan prepared by the ministry for the new government which will take office on 30 May 2019.

The interventions identified will focus across the complete value chain of logistics including transportation, warehousing, processes, technology, skills, etc.

The interventions have the potential to reduce the logistics cost in the nation by Rs 20,000 crore.

The 10-point action plan also includes rolling out national logistics policy, multi-modal logistics policy, integrated national logistics action plan, and logistics planning and performance management tool.

As per the plan, a Multi-Modal Transportation of Goods (MMTG) bill will be introduced in Parliament, which will replace the existing MMTG Act, 1993.

Moreover, the new bill will introduce concepts such as regulation of self-regulatory agencies and facilitate smooth movement of products for domestic consumption as also foreign trade.