New Delhi, Oct 6 (KNN) The Rail Land licensing policy which was introduced on September 7, will play a significant role in providing a boost to the logistics industry, said India Ratings and Research (Ind-Ra) in a report.

The report states that the policy would create a level playing field for both private and public enterprises.

“Through the policy, the government aims to eventually move to the competitive bidding process of allotment of railway land, which, so far, has been dominated by central/state agencies due to shorter leasing tenure and higher rental yields,” the report said.

“The policy would lead to increased participation from private players as well as help in reducing the overall logistics costs,” it added. 

According to the rating agency, he existing licensees would not opt for the new policy for their strong and profitable terminals, which would eventually go for competitive bidding on the completion of the concession period.

However, the existing licenses for the unprofitable terminals are expected to be rescinded to avail the lower LLF of 1.5 per cent under the new policy, it added.  (KNN Bureau)