Commerce ministry may create dept for logistics

first_imgNew Delhi: The commerce ministry has proposed the creation of a separate department for trade facilitation and logistics for better coordination among different government units, an official said.Currently, there is no single department to look at all the aspects related to logistics covering various modes of shipment such as sea, roads and railways. The proposal is part of a 100-day action plan prepared by the ministry for the new government, which will take office on May 30. Also Read – Dussehra with a ‘green’ twist”Creation of a separate department for trade facilitation and logistics will lead to better coordination,” the official said. At present, a logistics division is functioning under the department of commerce and headed by a special secretary-level officer. Logistics is a key component for increasing the competitiveness of exporters and domestic traders by reducing transport cost and time and expediting the smooth movement of goods. The official said that the sector needs a lot of coordination among different ministries and departments including railways, road and shipping. Also Read – India receives its first Rafale fighter jet from FranceIn January this year, the Economic Advisory Council to the Prime Minister (EAC-PM) has suggested setting up a separate logistics department to boost the transport sector and improve ease of doing business. The ten-point action plan has also proposed rolling out of national logistics policy, multi-modal logistic policy, integrated national logistics action plan, and logistics planning and performance management tool. As per the plan, a Multi-Modal Transportation of Goods (MMTG) bill will be introduced in Parliament, which will replace the existing MMTG Act, 1993. The new bill would introduce new concepts like regulation of self-regulatory agencies and facilitate smooth movement of products for domestic consumption as also foreign trade. Commerce and Industry Minister Suresh Prabhu has taken a series of steps to cut logistics time and cost to push both domestic and foreign trade. “A detailed Integrated National Logistics Action Plan will be rolled out covering over 60 interventions, focused on driving logistics development and logistics efficiency in the country,” the official said, adding that the identified interventions have the potential to reduce the logistics cost in the country by Rs 20,000 crore.last_img read more