In a bid to turn the state into a logistics hub and boost exports, the Uttar Pradesh government will develop a network of dry ports ahead of the Global Investors Summit (GIS) to be held in February this year.
In the new Warehousing and Logistics Policy-2022 of the state government, investors have been encouraged to invest in warehousing and logistics as well as in dry ports.
Uttar Pradesh is a landlocked state with various export clusters and has a lot of potential for the development of dry ports in the state for convenient transportation of export cargo to seaports. Team Yogi that went abroad has received investment proposals from many countries in this sector. In addition to this, a lot of domestic investors are eager to invest in dry ports.
“The state government aims to strengthen the existing dry ports, inland container depots, freight stations and logistics terminals at suitable locations with access to road corridors, quality network of 4-lane and 6-lane highways, and interlinking roads,” a government spokesman said here on Tuesday.
He said the state government would provide various concessions for the development of dry ports. About 100% exemption in stamp duty will be provided on the purchase of land or land taken on lease for setting up various projects in the state. Similarly, a 75% concession will be given in the land use conversion charge as also in the development fee.
Additionally, these projects will also be allowed up to 60% ground coverage. However, all these proposed relaxations will be admissible only on submission of a bank guarantee of an equivalent amount. Apart from this, capital subsidy at the rate of 25% will be provided on eligible capital investment.
Meanwhile, new projects or industrial units will get a 100% exemption in electricity duty for a period of 10 years.
In addition, each project will be given a skill development subsidy in the form of reimbursement of an honorarium of Rs 1,000 per trainee per month for six months, subject to a maximum of 50 trainees per year for five years. If there is a need to build a police station, outpost in a dry port or air freight station, the land will be made available free of cost to the developer by the authority concerned for its setting up.
Logistics infrastructure in Uttar Pradesh includes Rail-Linked Joint Domestic and Exim Terminal, Rail-Linked Private Freight Terminal in Moradabad, and Inland Container Depot (ICD) in Kanpur, and ICD in Dadri Terminal. The state is benefitting from terminals being developed near or along inland waterways and multi-modal terminals being developed near or along freight corridors.
Numerous foreign companies have expressed their desire to invest in the logistics sector in Uttar Pradesh. MoUs have also been signed with many investors regarding this. MoUs worth Rs 1,300 crore have been signed with Saraf Group of UAE while Hindustan Port Pvt Ltd has signed an MoU worth Rs 200 crore.
Apart from this, the Mobility Infrastructure Group of the US has signed MoUs worth Rs 8200 crore while Best Bay Trucking has signed MoUs worth Rs 1000 crore.
Moreover, Singapore’s Star Consortium Pvt Ltd has inked an MoU worth Rs 1,000 with the UP government.
In addition to this, DP World of the UAE has also agreed to invest in setting up a joint venture in the field of logistics and cargo. Along with this, it has also demanded land with highway and rail connectivity near Kanpur so that a big logistics plant can be set up.
Under the joint venture, the company will require 2000 acres of land. Investment in this sector will provide employment opportunities to thousands of people in UP.