Logistics and Warehousing
Sector Overview :
The Uttar Pradesh Warehousing and Logistics Policy 2022 emerges as a pivotal framework designed to position Uttar Pradesh, and specifically the Bundelkhand region, as a leading hub for logistics and warehousing, nationally and globally. This policy brief highlights the critical objectives, compelling incentives, and strategic initiatives set forth in the policy, aimed at captivating private investment, enhancing infrastructure capabilities, promoting employment, and endorsing green, sustainable practices.
Sector Overview
With the Uttar Pradesh Warehousing and Logistics Policy 2022, the state sets the stage for a significant transformation into a logistics powerhouse, with Bundelkhand at its core. For investors and industry stakeholders, this policy presents an unprecedented opportunity to partake in the regional, national, and global growth of the logistics and warehousing sector. Through strategic investment and development, Bundelkhand is poised to become a central cog in India’s logistics infrastructure, driven by innovative, green, and sustainable practices endorsed by this policy.
  • Create more employment opportunities in the sector.
  • Upgrading and improving the existing warehousing and logistics infrastructure to boost economic activities.
  • Enhance the warehousing capacity to promote the interests of both primary and secondary sectors.
  • Promote green and innovative practices to develop a competitive logistics infrastructure in the State.
  • Proximity to key economic corridors (EDFC and AKIC).
  • Robust railway networks and expressways.
  • Proximity to upcoming logistical terminals and international airports.
  • Advantages from the National Waterway-1 project.
Investment and financial incentives
Policy also provides various kinds of subsidies and incentives for developing Truckers’ Park and Cargo Terminals. For details, please refer to policy document.
Incentives offered to eligible projects before commencement of commercial operations.
100% Exemption of Stamp duty on land purchased or taken on lease (for a period of atleast 10years) in Bundelkhand region
Concession of land use conversion for all eligible projects @75%
Exemption of Development Charges for all eligible projects @75%
► Ground Coverage Storage facilities & Dry ports: upto 60%
► Logistics Park: overall ground coverage of 60%
► Storage facilities: @15% upto INR 5 Cr anywhere in UP and upto INR 10 Cr in designated Logistics Zones
► Dry ports & Logistics Parks: @25% upto INR 25 Cr anywhere in UP & upto INR 50 Cr in designated Logistics Zones
► Berthing Terminal: @25% upto INR 15 Cr subject to max 6 terminals
► Cargo Terminals (GCT approved, nonapproved each): @20% upto INR 15 Cr
► Land provided on PPP basis for 35years BOOT model to developers of Cargo/ Berthing Terminals
► Electricity Duty Exemption @100% for 10years
► Quality certification cost reimbursement for storage facilities upto INR 5 lakh per project
► Purchase subsidy for Inland Vessels @25% upto INR 5 Cr subject to max. 50 vessels
Skill development subsidy:
► 50% concession on land use conversion charges to the developer.
► 75% of the development Charges shall be exempted
► Standalone storage facilities will be allowed Ground Coverage upto 60%
► Capital Subsidy at the rate of 25% of Eligible Capital Investment shall be provided to the developers of Logistics Park subject to maximum INR 50 Crores for setting up the projects in the designated Logistics Zones and maximum INR 25 Crores in anywhere in the State
► Exemption of Electricity Duty shall be provided at the rate of 100% for a period of 10years
► Quality Certification cost reimbursement shall be provided at the rate of 50% of cost paid upto maximum INR 5 lakh per project
► Skill Development subsidy shall be provided as reimbursement of stipend @INR1000 per trainee per month for 6months up to maximum 50trainees per annum for 5years per project