Kerala Logistics Park Policy Approved, Boosting Infrastructure

Thiruvananthapuram, Sep 4 (PTI) In a significant boost to Kerala's logistics sector, the state government on Wednesday approved the Logistics Park Policy, paving the way for the establishment of large-scale and mini-logistics parks across the state through private investment and public-private partnerships.

According to the policy approved by the Cabinet chaired by Chief Minister Pinarayi Vijayan, large-scale logistics parks can be established on a minimum of 10 acres of land, with basic infrastructure components like cargo handling, inter-modal transfer facilities, and internal road networks.

Mini-logistics parks, on the other hand, can be established on five acres of land with similar infrastructure components.

In a statement, the Chief Minister's Office (CMO) said that to facilitate easy set up and operation, a single-window clearance system will be formed for logistics parks and mini-logistics parks.

It said the logistics parks will be eligible for a capital subsidy of up to Rs 7 crore, while mini-logistics parks will be eligible for up to Rs 3 crore.

As per the new policy, stamp duty and registration fees will be exempted when acquiring land for logistics/mini logistics parks and when leasing them.

The policy also allows for logistics parks to be established through public-private partnership or fully in the private sector, the statement said.

Officials said the logistics sector is a crucial sector that plays a vital role in the national and state economy.

It is a large-scale chain system that delivers products from the production site to the market and consumers quickly and efficiently while maintaining competitiveness.

At a time when online marketing is growing rapidly, it is necessary to give importance to the logistics sector and formulate a special policy, considering the potential for foreign investment and various investment opportunities, as well as the creation of large-scale job opportunities, they said.

Officials said the state's extensive road network, the advantages of rail, port, and water transport, and the presence of international ports such as Vizhinjam and Kochi are favourable factors for the logistics sector.