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Uttar Pradesh govt accords industry status to warehousing and logistics sector

Thursday, 14 May 2020
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The Uttar Pradesh government has decided to grant industry status to warehousing and logistics sector in the state. The move will help reduce the cost of setting up of parks and units by a fair margin.
Chief Minister of Uttar Pradesh has given consent to the proposal as the sector has immense potential to create job opportunities required as migrant labourers are returning from other states due to COVID-19 lockdown.
The move will lower the cost of setting up units in Uttar Pradesh. For instance, presently change of land use is charged at 150 percent of circle rate from agriculture to commercial land use, which will now be 35 percent of circle rate as agriculture to industrial land-use change will be applicable.
The industrial land-use charges will be applicable to warehousing and logistics sector units and parks in the state. 
The activities of warehousing and logistics parks and units will be allowed for land-use of industrial land of all industrial development authorities in accordance with the provision of the Uttar Pradesh Warehousing & Logistics Policy 2018. 
Now, warehousing and logistics units will pay 1.5 times of the industrial rate to industrial development authorities for allotment and land use of areas reserved for industrial activity, which will enable substantial cost saving compared to existing costs of establishing units in the sector. 
Also, the land costs will now be reduced to almost one third. The decision is likely to attract investments supporting the various projects of the state such as Jewar airport, inland waterway, multi-modal transport and logistics hub, among others.


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