Invest UP and the Lucknow Division of Northern Railway have signed a memorandum of understanding (MoU) aimed at enhancing the state’s logistics infrastructure.
The agreement, signed on May 14, 2025, at the Lok Bhawan in Lucknow, facilitates the leasing of railway land to investors at a concessional rate, thereby promoting the development of warehousing and logistics facilities across the state. Under the terms of the MoU, railway land will be offered to investors at a concessional lease rate of 1.5% of the prevailing industrial or circle rate for a period of 35 years. This initiative is designed to attract investment in the logistics sector, enabling the establishment of warehousing and logistics infrastructure that will strengthen multimodal connectivity throughout Uttar Pradesh.
A key provision of the agreement mandates that at least one leg of transportation—either raw materials or finished goods—must utilize the railway network. This stipulation aims to promote cost-effective and sustainable logistics solutions, reducing reliance on road transport and contributing to environmental conservation efforts. Officials from both Invest UP and Northern Railway discussed implementation strategies, including the integration of land data into the PM Gati Shakti portal and the exploration of public-private partnerships to attract further investment. With a rail network spanning over 16,000 kilometers, Uttar Pradesh is well-positioned to leverage railway assets to support industrial development.
The collaboration aligns with the Uttar Pradesh Warehousing and Logistics Policy 2022, which offers incentives such as stamp duty exemptions, land-use conversion benefits, capital subsidies, and electricity duty waivers for eligible projects with a minimum investment of ₹20 crore. These incentives are designed to create a conducive environment for investors and accelerate the state’s industrial growth. Uttar Pradesh is currently developing several logistics hubs, dry ports, and industrial parks, including a multi-modal logistics hub in Dadri and the country’s first freight village in Varanasi. The state also leads in cold storage capacity, holding nearly 40% of India’s total. Future logistics infrastructure projects include hubs along the Yamuna Expressway Industrial Development Authority (YEIDA) region, cargo complexes near the upcoming Jewar Airport, and specialized clusters such as Film City, Toy Park, Apparel Park, and the Medical Device Park.
The MoU between Invest UP and Indian Railways represents a strategic effort to enhance Uttar Pradesh’s logistics capabilities, attract investment, and promote sustainable industrial development. By leveraging railway assets and offering favorable terms to investors, the state aims to position itself as a leading industrial hub in India.
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