Kerala offers investment subsidy for logistics parks, unveils draft policy

KOCHI : Kerala Industry Minister Shri P Rajeeve has released the Draft Logistics Policy, announcing an investment subsidy of up to ₹7 crore for logistics parks in the State. According to the proposal, a 10-acre logistics park will get a subsidy of ₹7 crore, and for a five-acre mini-park, ₹3 crore will be provided.

The draft policy also recommends declaring logistics parks as industrial zones and establishing a single window system for approval of the parks.

The report of the Directorate of Industries and Commerce says that industrial land can be released for logistics purposes. “Products worth ₹1.5 lakh to ₹1.5 lakh crore are arriving in Kerala from other Indian States and this opportunity should be fully utilised,” the minister said, while presenting the draft policy.

Stakeholder meeting

A meeting of the Logistics Consultative Forum involving industry stakeholders in the region was also held in connection with the unveiling of the draft policy to tap into India’s logistics industry, which is growing by 8.8 per cent annually.

As per the draft policy, the skill development projects required for the logistics sector will be formulated in the areas of storage, transportation and other services.

The draft policy recommends stamp duty exemption for logistics and mini logistics parks. It also envisages a State-level Logistics Coordination Committee headed by the Chief Secretary, a Logistics Cell headed by the Principal Secretary of the industries Department and a Special Committee for cities.

Suman Billa, Principal Secretary of Industries Department said logistics was of special importance in Kerala as a consumer State. He said Kerala consumes more than 6 per cent of the country’s fast-moving consumer goods (FMCG). The government intends to use this potential to bring employment opportunities in the logistics sector through a comprehensive policy, he added.

KSIDC Chairman Paul Antony says Kerala had limitless possibilities in the logistics sector and the government would provide all necessary facilities for its growth. But the industry players have a big role to play in this.

S Harikishore, Director, Industries Department and Managing Director, KSIDC, made a detailed presentation on the policy at the meeting. The government is planning to submit the policy for approval by June after considering the suggestions received from the stakeholders in the field.