MAHARASHTRA LOGISTICS POLICY 2024: AN OVERVIEW

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The Industry, Energy and Labour Department of the Government of Maharashtra vide its Resolution dated August 26, 2024 bearing number MahaInd-2023/C.R.223/Ind-2 has introduced the Maharashtra Logistics Policy 2024 (“MLP 2024”). The Government of Maharashtra believes that MLP 2024 will play a key role in obtaining its goal of achieving a US$ 1 trillion Gross State Domestic Product (GSDP) by 2028 and the MLP 2024 has been prepared for promoting the logistics sector in alignment with the National Logistics Policy.

MLP 2024 TARGETS

The Government of Maharashtra aims to achieve the following through the MLP 2024:

Development of more than 10,000 acres of dedicated logistics infrastructure across the State of Maharashtra by 2029.
Development of 1 International Logistics Mega-Hub, 1 National Logistics Mega-Hub, 5 State Logistics Hubs, 5 Regional Logistics Hubs and 25 District Logistics Nodes.
Reduction of the cost of logistics.
Reduction of the time taken for logistics through Integrated Logistics Master Plan and use of technology.
Promotion of green initiatives in the logistics sector.

HIGHLIGHTS OF THE MLP 2024:

ADVISORY COUNCIL

The State of Maharashtra has constituted a Maharashtra Economic Advisory Council for the purpose of preparing a detailed roadmap to achieve the goal of a US$ 1 trillion GSDP.

INFRASTRUCTURE

The Government of Maharashtra aims to connect all the districts within the State by setting up 4 lane roads, expanding the capacity of the existing railway lines by converting single lines to double lines, development of airports in a phased manner in various districts and setting up various seaports. Further the State aims to set-up 5 new Inland Container Depots in order to reduce the cost of logistics.

SETTING-UP OF LOGISTICS PARKS

The Government of Maharashtra has proposed the Maharashtra Integrated Logistics Master Plan and aims to set up the logistics hubs in various district as follows:

25 District Logistics Nodes having a minimum of 100 acres in the district of Raigad, Sindhudurg, Ratnagiri, Satara, Sangli, Kolhapur, Solapur, Nandurbar, Jalgaon, Ahmednagar, Buldhana, Akola, Washim, Yavatmal, Wardha, Bhandara, Gondia, Chandrapur, Gadchiroli, Hingoli, Parbhani, Beed, Latur, Dharashiv and Jalna.
5 Regional Logistics Hubs of 300 acres each in the Sinnar, Ichallkaranji, Shirpur, Badnera and Deglur.
5 State Logistics Hubs of 500 acres each in Bhiwandi, Purandar, Vadhvan Sindhudurg and Jalna.
1 National Logistics Mega-Hub of 1500 acres in Nagpur - Wardah National Logistics Mega-Hub.
1 International Logistics Mega-Hub of 2000 acres in Navi Mumbai - Pune International Logistics Mega-Hub

TECHNOLOGY AND SUSTAINABILITY INITIATIVES

The MLP 2024 promotes the use of technology to increase the efficiency and reduction of the costs of the logistics. In order to achieve this the MLP 2024 recommends the use of (i) Blockchain for ensuring the authenticity of data and protection from unauthorized access and tampering and (ii) Artificial Intelligence to ensure route optimization and efficient use of resources by predicting future demand.

Further, in order to create a sustainable environment, the MLP 2024 provides for setting up of Green Logistics Parks along with the linked incentives as mentioned under the Maharashtra E-Vehicle Policy, 2021.

INCENTIVES FOR LOGISTICS PARK DEVELOPERS

The MLP 2024 provides for various fiscal and non-fiscal incentives to park developers. Some of the important incentives are as mentioned hereinbelow:

Special Capital Incentives: The logistics parks will be incentivized by special capital incentives in the form of subsidies on capital invested. The capital incentives will depend upon minimum area, minimum fixed capital investment and the development period. While calculating the fixed capital investment, the cost of the land will not be taken into account. The aforementioned special capital incentives will be applicable to the logistics parks within Zone 1 and Zone 2 only in the State of Maharashtra.
Power: Electricity will be made available to the logistics parks at industrial rates for the activities other than business and commercial facilities. Further, an additional 10% incentive will be provided in case of parks under the green initiatives of the State of Maharashtra.
Green Logistics Incentives: 100% exemption on road tax can be availed by the park developers for purchase of at least 50 hybrid or plug-in-electric or electric cargo vehicles of a minimum load capacity of at least 50 metric ton per vehicle.
Floor Space Index (FSI): The MLP 2024 provides one or permissible basic FSI, whichever is higher to the logistics parks and depending upon the zone in which the park is situated, concession on payment of premium for obtaining additional FSI will be granted.
The MLP 2024 provides the status of ‘Industry and Infrastructure Sector’ to the logistics sector.

Further, special incentives in the form of subsidised interest rates, exemption from stamp duty and reimbursement of investment in technology, have been provided for standalone / independent logistics units under the MLP 2024.

The operational guidelines / procedure for availing all the aforementioned incentives will be separately provided by the Government of Maharashtra.

EASE OF DOING BUSINESS:
Parks / units having an investment of INR 50 crores will enjoy relaxations under ease of doing business to start activities without prior permission / approvals.
MSME entities falling under green/white category of logistics activities can start development from the date of possession of the land, without prior permission, subject to obtaining all the statutory permissions within 1 year.
Single window clearance and facilities available under the MAITRI will be available to the logistics units.

CONCLUSION

The MLP 2024 aims to establish Maharashtra as a world class logistics hub, boost investment in the logistics sector and will place Maharashtra as one of the most promising destinations for the logistics sector. However, the success of the MLP 2024 will depend largely upon its effective implementation.

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Tags : Sushant Shetty Partner & Rikky Dedhia Senior Associate Fox Mandal Associates share insights Maharashtra Logistics Policy