Kerala Government Unveils Logistics Park Policy to Revolutionize State’s Infrastructure

Thiruvananthapuram: The Kerala government has taken a monumental step toward strengthening its logistics sector by approving the Logistics Park Policy, which was ratified during a Cabinet meeting led by Chief Minister Pinarayi Vijayan on Wednesday. This strategic initiative aims to foster the establishment of both large-scale and mini-logistics parks throughout the state, inviting private investments and forging public-private partnerships.

As per the newly approved policy, large-scale logistics parks will require a minimum land area of 10 acres, equipped with essential infrastructure such as cargo handling facilities, inter-modal transfer systems, and comprehensive internal road networks. In contrast, mini-logistics parks will be developed on five acres, featuring similar essential infrastructure. This differentiated approach highlights the government’s commitment to facilitating logistics operations of varying scales.

To streamline the establishment and operation of these logistics parks, the Chief Minister’s Office (CMO) announced the creation of a single-window clearance system. This system is designed to simplify the regulatory process for investors and developers, ensuring efficient project initiation and execution.

In a bid to incentivize investment, the policy stipulates that large-scale logistics parks will be eligible for a capital subsidy of up to Rs 7 crore, while mini-logistics parks can receive subsidies of up to Rs 3 crore. Additionally, the policy offers tax relief by exempting stamp duty and registration fees for land acquisition and leasing for logistics and mini-logistics parks.

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The Logistics Park Policy allows for flexibility in development, permitting logistics parks to be established either through public-private partnerships or solely within the private sector. This adaptability is expected to attract a diverse array of investments, bolstering the logistics infrastructure in the state.

Government officials emphasized the pivotal role of the logistics sector in both the national and state economy, highlighting its function as a vital chain system that efficiently delivers products from production sites to consumers. As e-commerce continues to gain momentum, the formulation of this specialized policy becomes increasingly critical, especially considering the substantial potential for foreign investments and the creation of significant employment opportunities.

Kerala’s advantageous geographical features, including an extensive road network, and robust rail, port, and water transport systems, coupled with international ports like Vizhinjam and Kochi, provide a solid foundation for the growth of the logistics sector. With these developments, the state is poised to enhance its logistics capabilities, ultimately aiming to improve competitiveness and support economic growth.

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