Kerala Cabinet Approves Logistics Park Policy to Upgrade Infrastructure

The Kerala government has taken a significant step to enhance its logistics sector by approving the Logistics Park Policy. This policy aims to establish large-scale and mini-logistics parks across the state through private investment and public-private partnerships. The Cabinet, led by Chief Minister Pinarayi Vijayan, approved the policy on Wednesday.

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Infrastructure and Investment

Large-scale logistics parks will require a minimum of 10 acres of land. They will include essential infrastructure such as cargo handling, inter-modal transfer facilities, and internal road networks. Mini-logistics parks can be set up on five acres of land with similar infrastructure components. The policy also introduces a single-window clearance system to simplify the setup and operation of these parks.

Financial Incentives

The new policy provides financial incentives for logistics parks. Large-scale logistics parks are eligible for a capital subsidy of up to Rs 7 crore, while mini-logistics parks can receive up to Rs 3 crore. Additionally, stamp duty and registration fees will be waived when acquiring or leasing land for these parks.

Officials emphasised the importance of the logistics sector in both the national and state economy. They noted that it is a crucial system that ensures products are delivered efficiently from production sites to consumers, maintaining competitiveness. The rapid growth of online marketing further underscores the need for a robust logistics sector.

Public-Private Partnerships

The policy allows for the establishment of logistics parks through public-private partnerships or entirely within the private sector. This flexibility aims to attract more investments and foster development in the logistics sector.

Kerala's extensive road network, along with its rail, port, and water transport advantages, makes it an ideal location for logistics development. The presence of international ports like Vizhinjam and Kochi further strengthens this potential.

Officials highlighted that the new policy could attract foreign investment and create numerous job opportunities. They stressed the need for a special policy to tap into these opportunities effectively.

The Chief Minister's Office (CMO) stated that this initiative would facilitate easy setup and operation of logistics parks, contributing significantly to the state's economic growth.

The approval of this policy marks a crucial development for Kerala's logistics sector, promising enhanced infrastructure, increased investment opportunities, and substantial job creation.