Amaravati: In a great effort to attract more investment in the logistics sector, the state government has decided to grant industry status to units established in the logistics sector. The state government has decided to quadruple the storage capacity of warehouses and cold stores by 2027.
After conducting a thorough study, the state government has prepared plans to double the infrastructure available in the logistics sector over the next three years. Additional infrastructure, including securing national highways, completing ports and new railway lines, is expected to attract huge investment in the logistics sector.
“It is a strategic decision to recognize the sector as an industry, as it will help entrepreneurs to set foot in new investments with the support of bankers. They will benefit from all the incentives under the new industrial policy”, said the Minister of Industry Gudivada Amarnath.
The current capacity of godowns in the state is around 13.5 lakh metric tons. The state government wanted to increase storage space to around 56,000 metric tons with an increase of almost 400% in just five years.
The state government has identified that there is a huge demand for storage space in VijayawadaNellore, Tirupati and Kakinada. Plans are underway to identify land in these locations for allocation to industries in the warehouse sector. “Availability of land at cheaper prices will play a big role in attracting investment, especially in landlocked towns like Vijayawada,” said a senior official from the Department of Industries.
Similarly, the state government has decided to spare land for the establishment of cold chain systems near future ports and fishing ports. The government expects cold storage capacity to be doubled from the existing 15.6 lakh tonnes in the next three years.
AP Maritime the council is spending nearly Rs 20,000 crore on the development of fishing ports and ports in the state which will change the fortunes of the maritime sector. About four new ports and nine fishing ports have sprung up in the state to make PA the best destination for the shipping industry.