AP’s new industrial policy to boost the state’s logistics sector

The Andhra Pradesh government plans to give a boost to the logistics sector in the state with its new industrial policy which is on the anvil.

The forthcoming policy is expected to provide much-needed traction for the sector. “The government already created a political framework for the new logistics policy a few months ago, with plans to create multi-level logistics cells at the state and city levels. The forthcoming policy is expected to give a boost to the logistics sector as well,” a senior official said.

The state government is working on the new industrial policy to attract new investment to the state and synergies are expected with the logistics policy in terms of financial incentives.

Tailored Incentives

According to the recently issued notice, the Government of Andhra Pradesh has proposed to set aside 5 percent of the land for the development of logistics facilities in the upcoming industrial parks/hubs with industrial status for logistics and warehousing.

Mega projects with investments in excess of ₹500 crore will be considered for “tailor made” incentives.

While the AP government’s logistics policy was approved by the State Investment Promotion Council in May last year and subsequently notified by the Ministry of Industry, the incentive structure was consistent with the government’s old industrial policy.

The incentive structure and industry status for logistics and warehousing will now be aligned with the government’s new industrial policy starting next fiscal year (April 1, 2023), according to officials.

The promotion of “ease of logistics” is one of the priorities of the state government. While the AP tops the Ease of Doing Business Index, it also plans to streamline various laws and regulations and bring all permits and clearances related to the logistics sector under a single desk clearance.

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