UP govt accords industry status to warehousing, logistics sector to woo investors- The New Indian Express
Express News Service
LUCKNOW: After relaxing the labour laws, Uttar Pradesh government has now decided to elevate warehousing and logistics sector to industry status. The step is being seen as another move to further consolidate industrial investment in the state in the current times of gloomy economic scenario.
According to officials, the step would help woo the potential investors to set up warehouses on industrial land as the move would bring about a drastic reduction (approximately one third) in the cost of setting up warehousing and logistic parks.
CM Yogi Adityanath has already given a green signal to the proposal which would be put up before the state cabinet soon, said official sources.
Last week, UP had suspended most of the labour laws to give more functional flexibility to the existing industrial units and lure more to invest in the state.
According to state Industry Minister Satish Mahana, this sector had immense potential to create jobs which was imperative in the wake of migrant labourers in lakhs thronging the state from different parts of the country during the COVID-19 pandemic.
The minister claimed that the move would make UP one of the most-favoured destinations for investment.
Explaining how the cost of setting up logistics parks would come down after the new move, Infrastructure and Industrial Development Commissioner Alok Tandon said: “At present, change of land use from agriculture to commercial is charged at 150% of the circle rate. This will now be only 35% of circle rate. Now industrial land-use charges will be applicable to warehousing and logistics sector units and parks in Uttar Pradesh,” he said.
The Principal Secretary claimed that henceforth, warehousing and logistics park activities would be considered for ‘industrial’ land use in all industrial development authorities of the state in consonance with the provision of the UP Warehousing and Logistics Policy-2018.
“Warehousing and logistics units will pay 1.5 times of the industrial rate to industrial development authorities for allotment and land use of areas reserved for industrial activity but this is substantially lower than what they were paying under commercial charges. At present, land available to warehousing and
logistics sector costs an average of Rs 40,000-60,000 per square metre but now it will be reduced to around Rs 15000-20,000 per square metre,” he added.
Orders have been issued to all industrial development authorities to adopt this provision by amending their master plans and building by-laws immediately, said the principal secretary.