Lok Sabha Question No. 1688 (UNSTARRED), answered on 2021-12-08
Subject: Logistics Cost in NER
Ministry: COMMERCE AND INDUSTRY
Asked by: Vincent H Pala

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1688 TO BE ANSWERED ON 08 th  DECEMBER, 2021

## LOGISTICS COST IN NER

## 1688. SHRI VINCENT H. PALA:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) the details of the steps taken by the Government to improve the logistics cost in NER;
- (b) the details of the funds allocated and released under any such schemes to bring down the logistics cost in NER;
- (c) whether any study has been undertaken by the Ministry to assess the economic benefits in NER by reducing logistics cost; and
- (d) if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a) &  (b): The  logistics  ecosystem  comprises  of  multiple  activities  &  participants concerned with transportation, warehousing, inter modal transfers, services, policy and regulatory regime, skilling etc. Due to network effects, the impact on logistics efficiency  and costs accrue not only from local but also from efficiency improvements works in other parts of the network.

The Government has approved PM Gati Shakti National Master Plan for multimodal connectivity  infrastructure  for  various  Economic  Zones.  Multiple  infrastructure projects and process reforms have also been taken up across the country which have contributed towards logistics efficiency as have  the following NER  specific major  initiatives:

Ministry for Development of North Eastern region under its various development schemes has sanctioned road and bridges projects of Rs 8487.39 crores (cost of projects completed : Rs 4083 Crores).

To improve the logistic cost in NER, NHIDCL (National Highways and Infrastructure Development Corporation) is developing Two Lanes/Four lane NHs. NHIDCL is

further constructing Multi Modal Logistic Park (MMLP) at Jogighopa and another at Silchar. The cumulative funds released to NHIDCL is  Rs 35,166.01 Crores.

So far as railways is concerned, the total Budget allocation for Infrastructure projects & safety  works, falling  fully/  partly  in  North  East  Region  in  2021-22  is  Rs  6,913 Crores which is 226% more than the average of 2009-14 (Rs 2122 Cr/Yr.).

Railways also provided  a 6% concession on transportation of traffic from and to the stations falling in the State of Assam and other North Eastern Region, with certain exceptions.

Inland Waterway  Authority  has  developed  Multi-Modal  Terminal(MMT)  with  Rail connectivity at Pandu (Guwahati) on NW-2 (River Brahmaputra) at a total cost of Rs. 100.37 Crores, a permanent terminal at Dhubri on NW-2 at a cost of Rs 47.00 Crores.  For  strengthening  connectivity  of  North-  Eastern  Region  with  Haldia  & Kolkata Ports, under the Protocol on Inland Water Trade & Transit (PIWT&T) with Bangladesh, the number of Ports of Call in each country has been increased from 6 to 13, the number of protocol routes have been increased from 08 to 10 and a new route between Sonamura and Daudkandi on river Gumti, opened for providing Inland Water Transport (IWT) connectivity to Tripura.

Likewise, LPAI is also  undertaking an array of initiatives for reducing logistics costs at its ICPs  including full body truck scanners, Land Port Management System etc.. Further, financial assistance is provided to exporters @ Rs.2.00 per kilogram of tea exported through Inland Container Depot (ICD), Amingaon, Assam to offset the additional cost the exporters have to incur for haulage of empty containers from Kolkata/Haldia  port  to  Amingaon.  Moreover,  The  Central  Sector  Scheme  'Transport  and  Marketing  Assistance  for  Specified  Agriculture  Products'  -  for providing assistance for the international component of freight to mitigate the freight disadvantage for the export of agriculture products is also available for products from North east.

(c) & (d): While evaluation of logistics efficiency and addressing specific issues is carried  out  by  ministry  through  interactions  with  stakeholders,  surveys  (like Logistics Ease Across Different States - LEADS survey) etc, no specific study to assess economic benefits in NER by reducing Logistics Costs has been undertaken by Ministry of Commerce & Industry.

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