9 Jan 2019

One Nation, One Tax, One Permit Suggested for Logistics Sector (The Economic Times 09 Jan 2019 )

New Delhi: A high-level panel set up to suggest reforms in logistics development has recommended that the government reduce rail freight tariff structures on select pilot routes, introduce ‘one nation, one permit, one tax’ system and incentivise trucking industry, besides introducing a new institutional framework to improve India’s logistics sector which in turn will help improve the ease of doing business in the country.

The Bibek Debroy-led Logistics Development Committee On Tuesday suggested creation of an independent logistics department within the commerce ministry entrusted with the responsibility to develop a national logistics plan with a long-term perspective (five to 10 years) and yearly operational plans with constant review and monitoring.

These recommendations are part of the committee’s report submitted to Prime Minister Narendra Modi on a roadmap to make India one of the most efficient and effective places for doing trade in a time-bound manner. The committee has laid out an action plan for all related ministries with time frames for better monitoring the pro- gress.

Outlining a twin-pronged strategy to give a boost to India’s logistics sector, the committee suggested policy changes at the border as well as behind the border of trade to speed up movement of cargo in the country.

“Rail freight tariff structure (both slabs and absolute tariff rates) be reduced and rationalised at least on select pilot routes like Delhi-JNPT, Delhi-Mundra, etc and facilitate running of time-tabled freight trains for some select pilot rain routes to provide trade superior rail transport services and arrest the fall in its freight modal mix,” the report said.