India Logistics Cost Down to 9%: Gadkari

New Delhi, Dec 10 (PTI) The government has met the target to reduce logistics cost to 9 per cent of GDP from as high as 16 per cent due to good roads, Union transport minister Nitin Gadkari said on Tuesday.

Speaking at Amazon Smbhav Summit, Gadkari said there is a need to switch to alternative fuel, biofuel, and particularly hydrogen as part of logistics and expressed confidence that India will become an exporter of energy within 10 years.

Gadkari said the cost of logistics in China is 8 per cent of GDP, 12 per cent in Europe and the US but in India it was as high as 16 per cent.

"Just now we received a report from IIM Bangalore, IIT Chennai, and IIT Kanpur. They clearly indicate that because of good roads, now the logistics cost is reduced by 6 per cent...

"But the report we received was one year before. Actually, before December 8, my promise was to reduce logistics cost in single digits. That is 9 per cent. I am confident that today the logistics cost is coming to 9 per cent," the minister said.

He said besides good roads, the government is also taking preventive measures in the fuel space as well.

"We have the import of fossil fuel of Rs 22 lakh crore and because of that, we are facing a lot of pollution problems. People in Delhi are already facing a crucial problem because of fossil fuel pollution. 40 per cent of the air pollution is because of the transport sector, where I am the minister for that. We have taken the decision to change the fuel," Gadkari said.

He said now there are electric vehicles but still biofuel is top priority for the government even in alternative fuels.

The minister said CNG motorcycle of Bajaj scooter has brought the cost of the fuel to Re 1 per kilometer.

"I remember at a time when I launched the first electric vehicle, the cost of the lithium ion battery was USD 150 per kilowatt per hour. Today it comes to USD 55-60 per kilowatt per hour," Gadkari said.

He said IIT students have successfully implemented one of their projects called aluminum air technology, which uses aluminum as fuel and it's going to be cheaper compared to the lithium ion battery.

"Presently, we are the importer of energy. But as a transport minister, I'm confident that in due course of time, within 10 years, we will be the exporter of energy," Gadkari said.

He asked Amazon to prioritise the rural agriculture and tribal sector which has immense potential to come up with good quality products with good design.