UP govt accords industry status to warehousing and logistics sector

The Uttar Pradesh government has decided to accord industry status to warehousing and logistics sector in the state, a move that will help reduce the cost of setting up?of?parks and units?by a fair margin, officials said on Tuesday.

On the new incentive for warehousing and logistics sector, state's Industrial Development Minister Satish Mahana was quoted as saying in a release, "Chief Minister had given consent to this proposal at a recent meeting as this sector had immense potential to create enormous job opportunities required as migrant labourers are returning from other states due to COVID-19 lockdown."

He further said that by granting industry status to the sector, the state is on its way to establish itself as a favourable destination for investments.

Infrastructure and Industrial Development Commissioner Alok Tandon said this will drastically lower the cost of setting up units in Uttar Pradesh.

For instance, presently change of land use is charged at 150 per cent of circle rate from agriculture to commercial land use, which will now be only 35 per cent of circle rate as agriculture to industrial land-use change will be applicable, he said.

Now industrial land-use charges will be applicable to Warehousing and logistics sector units and parks in Uttar Pradesh, he added.

Elaborating on the new initiative,?Principal Secretary, Infrastructure & Industrial Development, Alok Kumar?informed that?activities of warehousing and logistics parks and units will be allowed for land-use of 'industrial land' of all industrial development authorities in accordance with the provision of 'UP Warehousing & Logistics Policy 2018'.

?Now warehousing and logistics units will pay 1.5 times of the industrial rate to industrial development authorities for allotment and land use of areas reserved for industrial activity,?which will enable substantial cost saving compared to existing costs of establishing units in the sector. Land costs will now be reduced to almost one-third," he said.

The decision is likely to attract investments supporting the various projects of the state such as Jewar airport, inland waterway, multi-modal transport and logistics hub, etc.

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Strengthening of warehousing and logistics sector in the state will also complement state's unique location advantage with proximity to National Capital Region (NCR)