The government of India has granted infrastructure status to the logistics sector which will enable the industry to access cheaper finances.
- Director general of Directorate General of Supplies and Disposals (DGS&D) Binoy Kumar was appointed as special secretary in charge of logistics in the commerce and industry ministry to adopt a suitable approach for the development of logistic sector.
- The decision will enable the logistics sector to access infrastructure lending at easier terms with enhanced limits.
- Larger amounts of funds as external commercial borrowings (ECB), longer tenor funds from insurance companies and pension funds will be accessible to the logistic sectot
- It will make the sector eligible to borrow from the India Infrastructure Financing Co. Ltd
- The government has defined “logistics infrastructure” to include a multimodal logistics Park comprising an Inland Container Depot (ICD) with a minimum investment of Rs50 crore and minimum area of 10 acre, a cold chain facility with a minimum investment of Rs15 crore and minimum area of 20,000 sq. ft and a warehousing facility with a minimum investment of Rs25 crore and a minimum area of 100,000 sq ft.
