New Delhi, Nov 21 (KNN) Logistics sector has been granted the infrastructure status. This was a demand from the industry from a very long time because the logistics cost in India is very high as compared to developed countries which reduces the competitiveness of the products in domestic and exports markets.

In the 14th Institutional Mechanism (IM) Meeting ,the inclusion of “Logistics Sector” in the Harmonized Master List of Infrastructure Sub-sectors was considered and now it has been approved by the Finance Minister Arun Jaitley.

Logistics Infrastructure has been added to the infrastructure list. "Logistics Infrastructure” means and includes Multi-modal Logistics Park comprising Inland Container Depot (ICD) with minimum investment of Rs. 50 crore and minimum area of 10 acre, Cold Chain Facility with minimum investment of Rs.15 crore and minimum area of 20,000 sq. ft and/or Warehousing Facility with investment of minimum Rs. 25 crore and minimum area of 1 lakh sq. ft.

This inclusion will enable the Logistics Sector to avail infrastructure lending at easier terms with enhanced limits, access to larger amounts of funds as External Commercial Borrowings (ECB), access to longer tenor funds from insurance companies and pension funds and be eligible to borrow from India Infrastructure Financing Company Limited (IIFCL).

The strengthening of the logistics would provide stimulus to demand and will led to job creation and improvement in India’s GDP. (With PIB inputs) (KNN/AG)