To bolster Uttar Pradesh’s industrial and logistics infrastructure, the state government has entered into a strategic partnership with Indian Railways.
This collaboration aims to establish multi-modal logistics hubs across the state, enhancing connectivity and facilitating efficient movement of goods. The Memorandum of Understanding (MoU) was signed between Invest UP, the state’s investment promotion agency, and the Northern Railway’s Lucknow division. The agreement outlines the development of logistics hubs, dry ports, and multi-modal parks, positioning Uttar Pradesh as a leading industrial state. A key provision of the MoU mandates that at least one leg of transportationeither raw materials or finished goodsmust utilize railways. This initiative promotes cost-effective and sustainable logistics, reducing dependency on road transport and minimizing carbon emissions.
To incentivize private investment, Indian Railways will offer its land to logistics and warehousing investors on a 35-year lease at a concessional rate of 1.5% of the prevailing industrial or circle rate. This move aims to attract significant private sector participation in the development of logistics infrastructure. The partnership also focuses on integrating available railway land data into the Pradhan Mantri Gati Shakti National Master Plan Portal. This integration will simplify investor access to land-related information, streamlining the approval process and encouraging investment in logistics projects.
With over 16,000 km of railway network, Uttar Pradesh is leveraging its extensive infrastructure to develop logistics hubs, dry ports, and industrial parks. These developments are expected to enhance the state’s industrial connectivity, reduce logistics costs, and promote economic growth. The initiative aligns with the Uttar Pradesh Warehousing and Logistics Policy 2022, which mandates a minimum investment of Rs 20 crore for warehouse projects. The policy aims to attract significant private sector participation in the development of logistics infrastructure, fostering a robust logistics ecosystem in the state.
By strengthening its logistics infrastructure, Uttar Pradesh is positioning itself as a key player in India’s industrial landscape. The collaboration with Indian Railways is a testament to the state’s commitment to enhancing industrial connectivity and promoting sustainable economic development.
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