up a separate Logistics Department and introducing one permit-one tax system
for trucks, among other measures, will boost the transport sector and improve
ease of doing business, the Economic Advisory Council to the Prime Minister
(EAC-PM) has suggested.
suggestions form part of the Bibek Debroy-led Logistics Development Committee's
report titled 'Key Challenges in Logistics Development and the Associated
Commerce - Policy Reforms for Ease of Doing Business/Trade in India' which was
submitted to Prime Minister Narendra Modi recently.
the need for supporting the truck industry, the Committee has suggested that
the government should create an independent department focusing on Logistics
and trade facilitation space by upgrading the existing Logistics Division under
the Ministry of Commerce and Industry.
the One Nation, One Permit, One Tax system by amending Motor Vehicles Act as
recommended by the Parliamentary Committee.
"Also suitably amend the provisions of Motor Transport Workers Act to
incentive trucking industry to increase its scale and size," the committee
suggested. As per the one permit-one tax system, all truck permits will be
valid across the country.
It also pitched for reduction and rationalization of rail freight tariff
structure, at least on select pilot routes (Delhi-JNPT, Delhi-Mundra etc).
to the report, the government should target increasing rail modal share by
improving predictability in railway services, rationalizing railway tariffs and
expediting the commissioning of Dedicated Freight Corridor (DFC).
The committee also pitched for developing Common Development Plans for revival
of railway sidings near major airports for promoting multi-modal air-rail
connectivity and easing last mile connectivity to airports.
improve trade facilitation at borders, it said the government should shift
towards fully facilitated trust-based clearance processed through state
of-the-art risk management system (RMS) and make physical examination an
It pointed out that while the physical infrastructure augmentation projects
(like Bharatmala, Sagarmala, DFC) are transformational in nature, some major
governance and procedural reforms are incremental in nature.
of the World Bank's Doing Business (DB) report 2018 suggest that it took more
than six days to export and more than 13 days to import in India, considerably
higher than the time taken in the developed world.
Meanwhile, India saw a jump of 19 positions in International Logistics
Performance Index (LPI) -- from 54th rank in 2014 to 35th position in 2016 out
of 160 countries.
Prime Minister has set an ambitious target to realize a quantum jump in Doing
Business and LPI ranks within the next 2-3 years. This will be difficult to
achieve if we fundamentally do not reorient the way we have looked at logistics
and trade facilitation space," the committee said.
It also noted that the requirement of physical paperwork and multiple documentation
continues despite push towards digital governance.
According to the report, the road freight cost per ton per km in India is
almost double (after adjusting for PPP) than that of US while the average speed
is substantially lower than in developed countries.