2. National
Logistics
Policy: Key
Insights
• The National Logistics Policy (NLP) will be a game changer that would
help India reach its apex target of becoming a $20 trillion economy
by the year 2040.
• India’s Logistics costs are 13-14% higher than other countries thus
NLP aims to cut-down to single digits.
• NLP has been in making for about eight years and will bring paradigm
shift in the logistics industry by streamlining processes with
technology and digitalization.
• Imbibing technology under ULIP, will ease cumbersome paperwork
documentation therefore discrepancies can be avoided.
• NLP talks about the multimodal connectivity, will alter the turn-
around time, lead to sustainable infrastructure development,
generate employment, and would help in contributing to the GDP of
the country.
3.
4. “ To develop a technologically enabled, integrated, cost-efficient, resilient,
sustainable and trusted logistics ecosystem in the country for accelerated and
inclusive growth.”
Reduce cost of logistics in India to be comparable to global benchmarks by 2030
Logistics Performance Index ranking –
endeavour to be among top 25 countries by
2030, and
Create data driven decision support mechanism
for an efficient logistics ecosystem.
01
02
03
Targets
Vision
5. Implementation: Comprehensive Logistics Action Plan (CLAP)
The Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP). The interventions proposed under the CLAP
are divided into eight key action areas:
• Integrated Digital Logistics Systems: Develop a system of unified logistics interface
• Standardization of physical assets & benchmarking service quality standards: To enhance interoperability, minimize
handling risks, undertake process optimization, and improve ease of doing business,
• Logistics Human Resources Development and Capacity Building: To develop action plans to address skill development
related and internal capacity building challenges in the respective sector.
• State Engagement: Provide support for development of state/city level logistics plans, set up institutional framework to
take action at city/state level, measure and monitor action by states and rank them.
6. • v. EXIM (Export-Import) Logistics: To create efficient and reliable logistics network, with transparent and streamlined
cross-border trade facilitation, for improved trade competitiveness and greater integration of India with regional and global
value chains.
• vi. Service Improvement framework: Improving regulatory interface to enable seamlessness between sectors, promote
standardization, formalization, inter- operability; eliminate fragmentation in documentation, formats, processes and
liability regimes; reduce gaps in regulatory architecture.
• vii. Sectoral Plan for Efficient Logistics: Sectoral Plans for Efficient Logistics (SPEL ) would address logistics issues pertaining
to infrastructure, processes, digital improvements, policies and regulatory reforms, and capacity building for better
workforce
• viii. Facilitation of Development of Logistics Parks: Logistics parks (e.g., Multi Modal Logistics Parks, Air Freight Stations,
Inland Container Depots, Container Freight Stations, cargo terminals, etc.) are hubs for intermediary activities (storage,
handling, value addition, inter-modal transfers, etc.) in the supply chain connected by a transportation network.
Implementation: Comprehensive Logistics Action Plan (CLAP)
7. Unified Logistics
Interface
Platform
ULIP Architecture
• ULIP is an open-source platform that integrates multiple systems of different stakeholders &
works on a request-response-based system.
• The platform is a three-tier structure comprising of Integration Layer, Governance Layer and
Presentation Layer.
• Integration Layer acts as a bridge between the data source and the user of the data. While the
Governance Layer helps the Policy Makers to ensure compliances and take policy decision.
Current Status
• Under the Integration layer and the Governance layer, 30 logistics systems of 07
Ministries/Departments covering over 1600 fields have been integrated through 102 APIs with ULIP.
The aim is to create a UPI kind of a structure in which every single transaction of the logistic
department can be authenticated.
8. Benefits of
ULIP
• ULIP would have direct and indirect benefits to all stakeholders of the
logistics ecosystem-
• Benefit to the Govt. authorities /agencies:
• Support inter-ministry / inter-agency collaborations, promoting
ease-of-doing- business.
• Help in better handshaking between the stakeholders which in turn
will encourage optimized utilization of various modes of transportation
available.
• Benefit to shipper/consignees:
• Real-time process and cargo movement monitoring on a single
platform.
• Identification of cheaper logistics modes.
• Benefit to Truckers: With transparency and visibility, truckers shall be
able to reduce empty movement and waiting time, thus reducing the
operations and maintenance cost.
• Benefit to logistics service providers:.
• Enable various value-added services to end-customers
• Facilitating stakeholders for information-driven pricing strategy,
cost & labor optimization.
9. NIDRA Bank : Life Saving Initiative
• ‘Nidra Bank’ would be a great initiative for the betterment of the truck driver’s society by taking care and providing them adequate
sleep in a secure environment.
• Despite getting the sleeping remuneration from the truck owner, the drivers keep driving without taking the sufficient sleep, which
is not possible through this Cashless Nidra model.
• Cashless Nidra Model- It is mandatory for the truck drivers to avail the facility. If the driver does not take Nidra facility, the expenses
will be automatically lapsed.
• This Nidra Bank will target 600 such centers in India wherein approx. 6 Crore sleeps shall be provided.
• It is estimated that for every 540 sleeps 1 accident is saved. Thus, by providing 6 Cr. Sleeps, 1,11,111 accidents can be avoided.
• At CJ Darcl, We have prohibited our owned fleet for Night Driving. Any vehicle movement at night triggers a notification at the
Control Center which reaches out to the concerned to understand the reason of rule violation
• The Company is also installing gadgets for Driver Monitoring System to ensure proper driving & no Rule Violation.
11. Liquefied Natural Gas (LNG) Vehicles
Highlights:
• A Company recently launched its first LNG-fueled green truck
• Environment Friendly: Natural gas is the Cleanest Burning Fuel today. With
near zero tailpipe emissions, it will help in reducing CO2 up to 30 percent,
compared to conventional solutions available in the market
• Cost-Efficient: Cheaper than diesel which may reduce the operational cost
• Storage: Since the gas is in liquid form more fuel can be stored for longer
distances
• Load Capacity: Can carry approx. 55-ton payload
New Trends in Road Freight
Challenges in Adoption
• Launched the vehicle by assembling and is not an OEM
• Availability of parts may be a challenge in long run
• Dealer network support on after sales service is unclear
• Lack of infrastructure & LNG pumps in the country
12. 12
Challenges in Adoption:
• Short range approx. 160 to 200 kms/ charge
• Can only run approx. 3000-3500kms. Locally in a month
• Can carry payload approx. 2 ton lesser due to the battery load
• Approx. 3.5 times more expensive
• Lack of Infrastructure- Few charging stations
• Currently can be used only for Local Movement
New Trends in Road Freight
Highlights:
• Fleet electrification is going to be a key solution to cater towards the growing logistics demand of businesses in
India.
• Environment Friendly- No tailpipe emissions and promote the use of cleaner mobility solutions
• Cost Efficient: Reduced total cost of operations and increase in efficiencies
Electric Vehicles – EV’s Adoption
13. Changes in the MoRTH Policies
• Horse which is expensive elements can be better utilized
• Different Trailer can be used as per the load availability
• Dedicated fleet and drivers for in plant movement (better safety & regular frequency) etc.
• Trailers can also be used as parking which will be helpful in material handling
• Better relay double driver on long haul can be managed
Road Rail Concept
Separate Tractor and Trailer Registration
• The Govt. recently increased
the size of containers from 40 ft.
to 51 ft trailer for road freight
movement which allows more
optimized utilization of load.
• Road Rail Concept is under discussion therefore Gazette needs to be rolled-out
• Primarily for Volumetric materials
• Helpful in maximizing the payload
Challenges
• RTOs are still unaware about the interchangeability of tractor-trailers so issues may
occur on the interstate-borders
• Hub & Spoke infra structure for the trailers needs to be established
Challenges in Adoption
• Short haul will require separate or special infrastructure for different deliveries
• Applicable on National Highways and straight routes; mountain slopes and ghats are
still a challenge.
51 Feet Trailer
19. Current Scenario Vs NLP
India ranks 44th in Logistics
Performance Index (LPI)
Improve Rank in Logistics
Performance Index
High Costs due to lack of
Infrastructure
Low Rate of Technological
Adoption and Digitization
Multimodal Connectivity under
Sagarmala, Bharatmala and
PM-Gati Shakti Programme
Centralized System Under
Unified Logistics Interface
Platform (ULIP)
20. ➢ Truck platooning is the linking of two or more trucks in convoy, using connectivity technology and
automated driving support systems.
➢ These vehicles automatically maintain a set, close distance between each other when they are connected
for certain parts of a journey, for instance on motorways.
➢ The truck at the head of the platoon acts as the leader, with the vehicles behind reacting and adapting to
changes in its movement – requiring little to no action from drivers.
➢ In the first instance, drivers will remain in control at all times, so they can also decide to leave the platoon
and drive independently.
Truck Platooning
21. Context
• In 2016, India was ranked 35th
in the Logistics Performance Index (LPI), a measure through which the World Bank ranks countries based on
their logistics performance. India had moved up from 54th
position in 2014 to 35th
in 2016, riding on massive capacity investments made since
2014, in almost all sectors of transport (by way of mega projects like DFCs/UDAN/ Bharatmala / Sagarmala etc.), major policy reforms like GST
and measures in support of EODB.
• Despite these improvements the government was aware of the limited scope for growth without concrete reforms in the sector. The key issues
affecting the overall performance included gaps in infrastructure which had so far been developed on a sectoral basis, a varied and silo-based
legal and regulatory environment, disjointed IT systems, overdependence on road transport, suboptimal use of existing infrastructure due
suboptimal sharing of capacities, lack of skilled manpower, low predictability and visibility in supply chains resulting in heavier than necessary
inventory costs and so on.
• With logistics costs in the country still high (~13% of GDP in comparison compared to single digit levels in developed countries), integrated
development of the logistics sector was identified as a key area of reform. To achieve this, it was necessary to build a single government
institution that would oversee, coordinate with multiple and fragmented stake holders across union government and states and would help
develop the logistics sector into a strength for the economy by bringing down logistics costs. This offered a huge scope for improvement in the
competitiveness of supply chains in India.
22. Approach
A Comprehensive and synergetic, whole of Government effort is planned to ensure that the problems facing the logistics ecosystem are viewed in their
entirety and solved with an end to end perspective to capitalize on the massive infrastructure investments already made and further planned.
• Grant of Infrastructure status to Logistics sector- In a major push to the sector the government granted ‘infrastructure statuses to the logistics sector
which allows providing credit to the exporters at competitive rates and on a long-term basis, reducing logistics costs.
• Creation of Logistics Division - The Logistics division in the Department of Commerce was created consequent to the amendment to the second
schedule of the Government of India (Allocation of Business) Rules, 1961, on 7th July 2017, that allocated the task of “Integrated development of
Logistics sector” to the Department of Commerce. The division is headed by a Special Secretary to Govt. of India and has been given the mandate to
develop an Action Plan for the integrated development of the logistics sector in the country, by way of policy changes, improvement in existing
procedures, identification of bottlenecks and gaps and introduction of technology in this sector.
23. The Logistics Division adopted a consultative approach for identification and resolution of gaps based on interaction with more than 100
with stakeholders in the public and private sector. The following initiatives have been planned and are underway as part of the consultation:
• The National Logistics Policy is in its final stages of being issued. The policy has been developed after wide consultations with all central
ministries on the supply and demand side and takes a comprehensive view of the sector defining specific action points.
• A National Logistics Law that would provide an agile regulatory environment through a unified legal framework for “One Nation-One
Contract” paradigm (single bill of lading across modes) supporting “One Nation-One Market” agenda has been framed and is under
consultation with stake holders. The provisions of the law will enable the assignment of a unique Logistics Account Number replacing
unwieldy registration systems and encourage excellence certification in the currently fragmented market of logistics service providers. It
will also promote common terminology, transparency in charges and better mechanisms for industry lead conciliation and dispute
settlement.
24. National Logistics Master Plan that is under development adopts a geo-spatial approach rather than a sectoral approach to identify gaps
and blind spots. The plan aims to augment inter-modal and/or multimodal transport mix through convergence of various ongoing
projects/ programs. Conjoined development of related infrastructure (optical fibre cable networks, gas and utility pipelines) is planned so
as to ensure no disruptions at a later stage. It is planned to monitor the Master plan implementation through an Inter-Ministerial
Committee (IMC). State and City Logistics plans are proposed to be developed in alignment and synergy with the National plans.
• Grid of Logistic Parks and Terminals
• For development of modern warehousing
• For development of a modern and agile fleet of Rolling and Floating stock
• National Packaging Initiative
• Digitization Initiative
• National Logistics Workforce
• Focus on international trade
