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Logistics and supply chain management infrastructure development in India

Written By: Gajanand Prasad Sharma, IRSS(retd.) Executive Director/IRILMM

1.0 Introduction

In a complex business environment coupled with international competition, implementation of a strong Supply Chain Management (SCM) systems as a  tool has become necessity, for management of  flow of raw materials & finished goods, information and finances. A strong and resilient SCM economises   logistics cost & thus competitiveness  and profitability of an organization. While SCM design is industry centric, development of common logistics support ecosystem is the responsibility of government for balanced economic growth in all business segments by reducing overall cost of logistics in India.

2.0 Initiatives of GoI:

Railways, Airports, Ports, Mass Rapid System, Pipeline, Waterways and Logistic Infrastructures like Logistic Parks/Hubs are seven engines to give impetus to efficient supply chain management in country. Development of these seven engines in coordinated and transparent manner by Government may provide cheaper and efficient logistic support to Indian industry & improve their chances of winnability by staying competitive in international market.

Two schemes namely, PM Gatishakti National Master Plan and National Logistic Policy have been launched by Government to improve supply chain ecosystem in country. While PM Gatishakti NMP deals with development of infrastructure in a synchronised manner by all stakeholder ministries/states whereas national logistics policy deals with development of technologically enabled logistic ecosystem for accelerated and inclusive growth.

2.1 PM Gatishakti National Master Plan:

PM Gatishakti NMP is meant for improving logistic efficiency by integrating existing and proposed infrastructure development plans of different ministries/states & ensuring first and last mile connectivity for seamless movement of people and goods.

NMP will facilitate all public transport platforms such as Indian Railways, Metro trains, Regional Rapid Transit System, Inter-States Buses, Bus Rapid Transit as well as Aviation sector to operate together for providing integrated and seamless connectivity for movement of goods & passengers. Sarai Kale Khan and Anand Vihar stations have been planned for development in this manner for multi modal connectivity of Rail, Bus, Metro and RRTS.

PM Gatishakti NMP will go a long way in providing faster logistics support to local manufacturers to be globally competitive.

2.2 National Logistics Policy 2022

Efficient logistics is a function of infrastructure, service (digital systems/processes/regulatory framework) and human resource. This policy will deal only with services & human resource.

2.2.1 Objectives of Policy

The objectives of this policy is to seamlessly integrate processes and digital systems, optimal use of logistic infrastructure, standardization of  the physical assets, benchmarking of service quality standards in logistics sector, modernization of infrastructure, capacity building and upskilling of existing workforce, inclusivity by addressing need of logistics & supply chain users like agriculture and manufacturing sector.

2.2.2 Targets of GoI.:

  1. To reduce logistic cost in India to a global benchmark by 2030.
  2. To improve logistics performance index ranking- among top 25 countries by 2030.
  3. Create data driven decision support mechanism for an efficient logistic ecosystem.

2.2.2 National strategies for achieving the targets:

  1. Improvement in warehousing inventory management and transportation through more efficient means.
  2. Improvement in efficiency by development of multimodal interconnected infrastructure, addressing the issue of first and last mile connectivity.
  3. Innovations in design of rolling and floating stock and material handling equipment.
  4. Use of drones, automation & new technologies.

3.0 Proposed Projects

PM Gatishakti will incorporate the infrastructure schemes like bharatmala, sagarmala, Inland waterways, Dry/land ports, UDAN etc. covering textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, Agri zones to improve connectivity and make them competitive.

Some of the Projects taken up are:

  • 400 Bande Bharat trains for faster Logistics support.
  • 2000 kilometre of railway track under kavach for safety and capacity enhancement.
  • 100 cargo terminals to be developed for logistic support in export business.
  • ₹20,000 crore for seamless connectivity through Expressways
  • 25,000 kilometre of National Highway in next 3 years
  • One station one product to help local business and supply chain
  • 60 kilometre Ropeway development under Parvatamala

4.0 Monitoring and Coordination

Empowered group of secretaries (EGoS)  has been set up to monitor & review  PM Gatishakti and national logistic policy implementation. The network planning group of heads of network planning divisions of infrastructure ministries has been constituted for integration of proposals which will be supported by Technical Support unit. Improvement Group on the pattern of network planning group has been constituted for monitoring of improvements pertaining to processes, regulatory and digital improvement in logistics sector.

5.0 Conclusion :

PM Gatishakti NMP and national logistics policy will go a long way in creating a robust & resilient  infrastructure  for cheaper logistics and supply chain in country with last mile connectivity. This will attract foreign Investors for setting up manufacturing units in India to harness advantages of economic  and improved logistic support, cheaper skilled labour with ease of doing business

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