Union ministries yet to sort out funds, land issues for logistics plans under NLP

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Most central government ministries have not yet created plans to improve their delivery infrastructure as part of the National Logistics Policy, as they struggle to manage fund and land allocation issues between ministries.

"While most ministries have identified infrastructure gaps that limit efficient logistics movement, fund and land issues remain," a senior government official said.

He added that coordination between ministries is key in coming out with the Sectoral Plans for Efficient Logistics (SPEL) under the National Logistics Policy, and that most ministries already have long-term plans in place.

Citing an example, the official said that if the Ministry of Ports wants to create a multi-modal logistics park they will have to coordinate with both the Ministry of Railways and the Ministry of Roads for funds and land needed for the project.

A Department for Promotion of Industry and Internal Trade (DPIIT) official told Moneycontrol that only four ministries have submitted their SPEL, adding that other ministries are working on their proposals and should be submitting them soon.

The ministries that have created and submitted their plans include the coal, steel, and power ministries, as also the ports, shipping, & waterways ministry, the official explained.

“Other ministries have been sent reminders about the same. They say they are working on it,” he added.

Asked about a timeline for ministries to submit these plans, the official said, “This is a long-term policy we are looking at. This requires time. No deadlines were given for this.”

A senior official from the Ministry of Railways said that they are looking to create their SPEL as part of the National Rail Plan Vision 2030, and are coordinating with other ministries for the same.

"SPEL of most infrastructure ministries cannot be created independently, and cross coordination between ministries is a time-consuming process," the official said.

He added that the Railway Ministry aims to submit its SPEL in the next three months.

Another official from the Ministry of Food Processing said that the ministry has identified multiple road and railway projects as critical for implementation under the SPEL, and are awaiting confirmation from the concerned ministries before submitting their plan.

As part of the National Logistics Policy, the central government had asked 13 ministries to come up with their SPEL to focus on cross-sectoral integration and logistics efficiency.

The railways, road transport & highways, civil aviation, food processing, power, chemicals & fertilisers, coal, steel, petroleum & natural gas, housing & urban affairs, and ports, shipping & waterways ministries, along with the Department of Telecommunications, were asked to create their SPEL.

The government had said that while infrastructure development plans such as the national rail plan, Bharatmala, and Sagarmala, exist, the creation of SPELs was necessary to address logistics issues pertaining to physical and digital infrastructure, processes, policies, and to develop human capital. Bharatmala and Sagarmala are programmes to enhance and connect roads and waterways for improved logistics.