The Commerce Ministry is contemplating changing the Multi-Modal Transportation of Goods Act (MMTG) with a full-fledged national logistics legislation with a view to promote development of the sector, a senior authorities official mentioned on Saturday.
Special Secretary within the logistics division of the Ministry, Pawan Agarwal mentioned a National Logistics Efficiency and Advancement Predictability and Safety Act (NLEAPS) is into account and this legislation tends to outline numerous individuals of the logistics house and create a light-weight regulatory ecosystem.
“What the logistics sector is all about is not very clear to us as of now and in that direction, we need to clearly define what the logistics sector is and what the various elements in it are… We are considering replacing it with a full-fledged national logistics law.” NLEAPS is into account, he mentioned at a webinar organised by trade chamber PHDCCI.
Multimodal transportation refers to a mix of a couple of mode of motion, equivalent to rail, highway or sea, for end-to-end supply of goods.
“We are working towards finalising a national logistics policy. We will be having consultations once the draft is finalised,” he added.
The transfer assumes significance as excessive logistics value impacts the competitiveness of home goods within the worldwide market. Effective implementation of the coverage would assist present an impetus to commerce, improve export competitiveness, and enhance India’s rating within the Logistics Performance Index.
India’s logistics sector is extremely fragmented and the federal government goals to cut back the logistics value from the current 14% of the Gross Domestic Product to lower than 10%.
According to an earlier assertion from the Ministry, the sector is complicated, with greater than 20 authorities businesses, 40 partnering businesses, 37 export promotion councils, 500 certifications and 10,000 commodities.