Industry status

UP Government grants industry status to warehousing and logistics sector to woo investors – The New Indian Express

Express press service

LUCKNOW: After relaxing labor laws, the government of Uttar Pradesh has now decided to elevate the warehousing and logistics sector as an industry. This step is seen as another move to further shore up industrial investment in the state at present of a bleak economic scenario.

Officials said the move would help woo potential investors to set up warehouses on industrial land, as the move would result in a drastic reduction (about a third) in the cost of setting up warehouses and logistics parks.

CM Yogi Adityanath has already given a green signal to the proposal which will soon be presented to the state cabinet, official sources have said.

Last week, the UP had suspended most labor laws to give more functional flexibility to existing industrial units and attract more investment to the state.

According to the state’s Industry Minister, Satish Mahana, this sector had immense potential for job creation, which was imperative in the wake of migrant workers in the hundreds of thousands who were pouring into the state from different parts. country during the COVID-19 pandemic.

The Minister asserted that this move would make UP one of the most preferred destinations for investment.

Explaining how the cost of setting up logistics parks would decrease after the new move, Commissioner for Infrastructure and Industrial Development, Alok Tandon, said: “Currently, the land use change of agriculture to trade is charged at 150% of the circle rate. It will only be 35% of the price of the circle. Henceforth, industrial land use charges will be applicable to units and parks in the warehousing and logistics sector in Uttar Pradesh,” he said.

The Principal Secretary asserted that henceforth, warehousing and logistics park activities would be considered an “industrial” land use in all industrial development authorities in the state, in accordance with the provisions of the Warehousing and Logistics Policy. logistics of the UP-2018.

“Warehousing and logistics units will pay 1.5 times the industrial rate to industrial development authorities for the allocation and use of land in areas set aside for industrial activity, but this is significantly less than what they were paying commercial charges.Currently, the land available for storage and
the logistics industry costs an average of Rs 40,000-60,000 per square meter but now it will be reduced to around Rs 15,000-20,000 per square meter,” he added.

Orders have been issued to all industrial development authorities to enact the provision by immediately amending their master plans and building regulations, the Principal Secretary said.