Delhi plans mega logistics hubs on outskirts to decongest capital

The Delhi government has proposed a new warehousing policy aimed at easing chronic traffic congestion by relocating freight activity to three massive logistics hubs on the city’s periphery.

According to a draft accessed by HT, these centres will streamline cargo movement while offering modern storage and distribution facilities.

Environment Minister Manjinder Singh Sirsa cited by HT said that the policy seeks to establish "Urban Consolidation and Logistics Distribution Centres" (UCLDCs) near key transit routes towards Jaipur, Meerut and Mathura, each spanning 70 to 80 hectares. "The goal is to create mega hubs outside the city, reducing the need for freight vehicles to enter Delhi," he said.

Delhi sees nearly 193,000 vehicles transporting around 1 million tonnes of freight daily, with 21% merely passing through, as per state data. The policy aims to reroute such traffic while introducing dedicated freight corridors, commercial parking spaces via public-private partnerships and relocating wholesale markets.

An Industries department official noted that freight volume has surged over decades, from 184,000 tonnes daily in 1993 to 500,000 tonnes by 2008. "With increasing cargo, easing movement is critical," the official said.

The draft proposes incentives like a 50% subsidy on logistics infrastructure investments, electricity duty reimbursements for five years and interest subsidies on loans. Sirsa emphasised that the policy aligns with the Delhi Master Plan 2041, which advocates shifting wholesale storage to peripheral hubs.

As per HT, Delhi currently acts as a critical hub for cargo transport. Its 46 railway stations collectively handle 18,000 tonnes of cargo daily in arrivals and 11,000 tonnes in exports.

Meanwhile, the Indira Gandhi International (IGI) Airport remains India’s largest cargo gateway, having handled over 1 million metric tonnes of cargo in both the 2024 and 2025 fiscal years, according to the airport’s official website.

The city’s major wholesale markets include Azadpur, Ghazipur, Chandni Chowk, Karol Bagh, Naraina and Keshopur. Dedicated warehouse estates are located in Nangloi, Narela, Kirti Nagar, Bamnoli and Okhla, while the city also hosts two IFCs in Ghazipur and Narela, Inland Container Depots at Tughlakabad and Patparganj and several Transport Nagars in Sanjay Gandhi Nagar, Azadpur and Punjabi Bagh.

Sirsa criticised previous governments for inaction in this area. “In the last 10 years, no such policy or even plans to facilitate warehousing and freight movement have taken place. The previous government has completely failed in that regard,” he said, as reported by HT.