(draft) jammu & kashmir state logistics policy- 2018-28 1...

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(Draft) JAMMU & KASHMIR STATE LOGISTICS

POLICY- 2018-28

1. Introduction:

In India, logistics and warehousing industry is

valued at USD 160 billion. Continuing on the high

growth trajectory, the industry is expected to attain

an industry size valued at USD 215 billion by 20201.

As per the World Bank’s, Logistics Performance

Index 2018, India’s ranking has been improving,

shooting up to 44th position with an overall LPI

score of 3.18. The Indian logistics industry which

provides employment to more than 22 million

people has grown at a compound annual growth

rate (CAGR) of 7.8 per cent during the last five

years.2 The logistics sector primarily freight

transportation comprises of road (about 60% of

total freight traffic), rail , coastal shipping (about

1 Economic Survey 2017-18

2 https://lpi.worlkd bank.org/international/global

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32% and 7% share, respectively) and inland

waterways transportation and air (constituting

about 1% share each). The logistics and

warehousing space in the country is largely

concentrated in Bengaluru (39%) and Chennai

(13%). At a sectoral level, the consumer durables

and Fast Moving Consumer Goods (FMCG) has the

largest logistics and warehousing demand at 49%

followed by sectors such as automobiles,

electronics, food and beverage players.

2. Logistics and Warehousing in Jammu and Kashmir: Outlook

2.1 J&K in the earlier days has been the connecting

link of the Central Asian Trade Route (Silk Route)

connecting the subcontinent with Yarkand, Kho-tan,

Tashkent, Samarkand, Balkh, Bukhara, Ashikabad,

Baku(Azerbaijan), Armenia and Georgia denounced

on to it through the Sindh Valley and the Indus

River. The Jhelum River was an important transport

artery. Post medieval age, roads became the

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dominant means of freight transportation. Presently

the National Highway NH-44 i,e., Pathankot-Jammu-

Srinagar-Uri, and Srinagar-Kargil-Leh, accounts for

80% of the freight traffic. The state came on the

railway map in 1970 when the city of Jammu-Tavi

was connected with Pathankot. Presently 140 Kms

of the railway lines are connecting the State with

the economic corridors of the country.

2.2 Over 60% of the State is mountainous. The

goods in transit are subjected to rugged topography

which is compounded by the vagaries of the

weather. In the absence of adequate protection and

roadside facilities the cost efficiency of goods is

affected.

2.3 Nevertheless, Jammu & Kashmir is on the cups

of entering into its most robust growth phase of 21st

century driven by the visionary J&K Trade Policy,

2018-28 that is being promoted by the State

Government. The State Government envisages to

have multi-model Logistics Parks and Dry Ports in

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collaboration with Local, National and International

Companies in the field.

2.4 The Kashmir Railway Project, officially called the Jammu-Udhampur-Katra-Quazigund-Baramulla link (JUSBRL), is being developed (target date 2022) to provide an alternative and reliable transportation system to the state of Jammu and Kashmir. Though the alignment for the Kashmir Railway presents one of the greatest railway engineering challenges ever faced, with the only contest coming from the China-Tibet rail route, yet a ruling gradient of 1% has been set to provide a safe, smooth and reliable journey. The estimated cost of the project is USD 13bn. The entire project is divided into four sections. The first section, referred to as Leg 0, stretches 53km in the sub-mountainous region. The line that connects Jammu to Udhampur includes 158 bridges (36 major and 122 minor bridges) and 10km tunnels. The cost of the first section is about $114.2m and was opened in April 2005. The 25 km second section (Leg 1) connects Udhampur to Katra and is under construction. Leg 1 will include 10.9km of tunnels,

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38 major and minor bridges and ten ROB/RUBs3. The 148 km third section (Leg 2) will connect Katra to Qazigund and is scheduled to be opened in 2022. A 1.3km bridge being constructed across the river Chenab is the world’s tallest railway bridge. It will be 359m above the bed level of the river. Leg 2 also involves construction of 300km access road. An access road of 110km has already been constructed. A tunnel 10.95km long has been constructed at Qazigund. The fourth section (Leg 3), which is operational connects Qazigund to Baramulla, stretches 119 km in the Kashmir Valley.

2.5 The ongoing four lanning & upgradation of NH44 (formerly known as NH1A) is expected to change the entire transport scenario for the State. Presently twelve National Highways are under execution/upgradiation with a total length of 2322.33 kms.( Table I) Ministry of Road Transport and Highways, under the Bharat Mala Project (2017-22), is building a highway web at an estimated cost of Rs 3,77,045 Cr. The programme has identified around 26,200 km of economic

3 Railway Road Over bridges and Road Under Bridges

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corridors that have heavy freight traffic and aims to improve the speed of traffic flow on key corridors by providing uniform four-lane road connecting Gujarat, Rajasthan, Punjab, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Uttar Pradesh, Bihar, Sikkim, Assam, Arunachal Pradesh, and right up to the Indo-Myanmar border in Manipur and Mizoram.

2.6 The 84 km long Mughal Road constructed at a cost of Rs 255 cr. connecting Poonch in Jammu division with Shopian district in the Kashmir valley has reduced the distance between Shopian and Poonch from 588 km to 126 km. This road provides an alternative road connectivity to Kashmir valley.

2.7 Another alternate route to Jammu-Srinagar

national highway, the Anantnag-Sinthan-Kishtwar

210 kilometer road link, has brought the Doda-

Kishtwar region closer to Jammu and Srinagar. The

5 km long Vailo tunnel is being constructed at an

estimated cost of Rs 400 Cr. which will further

shorten the travelling distance from eight to two

hours.

https://en.wikipedia.org/wiki/Kashmir_valley

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2.8 The Government is working with the Civil

Aviation Ministry for allowing International flights

to operate round the clock from Srinagar Airport so

as to enhance export volume from the State

especially in handicraft and handloom sectors.

Efforts are being made to set up an Air Cargo

Complex with warehouse facility at Srinagar airport.

Likewise the expansion of Jammu Airport is

underway. The current airstrip of 6700 ft is being

expanded to 8000 ft at an estimated cost of Rs 75

crores. Once this runway is completed will

facilitate operations of aircrafts to majority of the

cities in India and that too without load penalty.

2.9 Jammu and Srinagar cities are being developed

as modern smart cities under the flagship scheme of

the Smart City Mission. Projects at an initial

estimated cost of Rs 3470 Cr and Rs 3816 Cr are

being taken up in the city of Jammu and Srinagar.4

4 Ministry of Housing and Urban Affairs, Government of India

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Table I: National Highways in J&K under Execution

S.No.

NH No.

Description Tentative Length in

Km

Agency/ Entrustment

Remarks

1 44 Srinagar-Banihal-Udhampur-Jammu-Kathua-Pathankot.

406.00 NHAI

PMDP cost =7291.00Cr (Jammu to Srinagar) Tentative

Date of Completion : December 2020

2 244 Khanabal-Simthanpas-Kishtwar-Doda Batote

274.00 NHIDCL New aligment Chennai-

Sundhmahadev-Goha Khellani

3. Chennai-Sundermahadev-

Goha-Khellani 59.00 PMDP Cost Rs. 2100.00cr

4. 144 Domei-Katra-Reasi-Pauni 68.00 PWD (earlier

with BRO)

5. 144A Jammu-Akhnoor-Naushera-

Rajouri-Poonch 246.00 NHIDCL/BRO

PMDP cost Rs. 5100.00 Cr Likely date of completion-

December of 2012 for Jammu-Akhnoor

6. 444 Srinagar-Shopian-Quazigund 105.00 With PWD PMDP cost Rs. 1800.00 cr

Likely date of completion-yet to be approved by MoRTH

7. 301 Kargil-Zanskar 234.00 With PWD PMDP cost Rs. 4200.00 Cr

Tentative Date of completion-yet to be approved by MoRTH

8. 701 Baramula-Rafiaabad-

Kupwara-Tangdar 114.00 With BRO

9. 1 Uri-Baramulla-Srinagar-Kargil-

Leh 546.00

BRO except Z-

MORH(6.05) and Zojila

(14.083)Tunnels which are with NHIDCl

10. Leh-Debring-Muldan-Manali 170.00 BRO

11. Ring Road Jammu 58.225 NHAI PMDP Cost Rs. 1400.00 Cr

likely date of completion-January 2021

12. Ring Road Srinagar 42.12 NHAI PMDP cost Rs. 1860.00 Cr. Likely date of completion-

appointed date yet to be fixed

Total 2322.325

Source: PW(R&B) Department , J&K

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3. Current Logistics and Warehouse Ecosystem

3.1 The logistics cost in the state of J&K is 10 to 15% higher than the national average owing to the rugged terrain. There is a high scope in investment in the underdeveloped infrastructure in Grade-A warehousing, ICD, Cold Storage. The Government with a focus to develop efficient and automated facility to reduce logistic costs, provide modern storage and handling infrastructure with a rail linked freight aggregation and distribution to reduce transit time, has taken following initiatives in the Logistics Sector:

3.1.1 Development of Logistics Park

In order to bring down the logistics costs of commodities from 30% to 10%, the State Government announced setting up of logistic parks in the State.

In this regard, the Government of Jammu & Kashmir, Government of Dubai and the global trade enablers DP-World have recently entered into MoU at World Government Summit held at Dubai (U.A.E) in February,

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2017 to explore opportunities to develop trade infrastructure in the Jammu & Kashmir.

In the follow-up discussions held to the above mentioned MoU between the State Government and DP World, it has been agreed to develop a multi-modal logistics park and hub in Jammu, comprising Private Freight Terminal (PFT), Inland Container Depot (ICD), Warehouses and specialized storage solutions with broad gauge rail and national highway, that will encourage inter-modal transfer of containers, bulk and break-bulk cargo, and later on in Kashmir Valley.

A 2,50,000 sft A Grade Warehousing space with mechanized handling is proposed which will double the warehousing space in Jammu. A separate space for bulk and pelletized cargo, polluting and non-polluting cargo is proposed.

Likewise, a 10,000 MT Multi Commodity Cold Storage with different temperatures for higher price realization and reduced wastage

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for perishable products is also proposed. A hundred acre land has been identified in Vijaypur for MMLP which shall be connected by railway link and a four lane road with NH44. The key benefits of MMLP Vijaypur are as under:

3.1.2 Inland Waterways

The Union government has declared four rivers namely Chenab, Indus, Jhelum and Ravi in the state of J&K as national waterways to boost Inland Water transport5.

3.1.3 Inland Container Depot and a Dry Port The State Government has planned to

5 National Waterways Act, 2016, Extraordinary, Part II, Section I dated 26

th March, 2016

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develop an Inland Container Depot in Srinagar and a Dry Port in the State, which will eliminate the major impediment in export sector.

3.1.4 Incorporation of J&K Trade Promotion Organization

In order to promote exports from handicraft, the State Government has established Jammu and Kashmir Trade Promotion Organization (JKTPO) as a Joint Venture Company between the State Government and Government of India undertakings, namely, India Trade Promotion Organization (ITPO) and Export Promotion Council for Handicrafts (EPCH).

JKTPO shall serve as a reference point in the State of Jammu & Kashmir for Indian Industry and the International Business Community.

Among others, JKTPO shall undertake promotion of exports and explore new markets for traditional items of export and develop exports of new items with a view to maintaining, diversifying and expanding the export trade.

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It shall also develop, manage and run infrastructure projects of Government of India, State Government and like institutions related to trade, e-commerce, and exports.

3.1.5 J&K Trade & Export Policy 2018-28

The State Government, while adopting the Jammu and Kashmir Trade Policy, 2018-28, among other objectives intends to provide guidelines for State Development Plans for reserving suitable patches of land for facilities such as warehousing and logistics support helpful in promoting retail, wholesale and exports trading in and from the State.

The Government intends to improve basic infrastructure and civic amenities at the major loading and unloading points/warehouses and overnight parking lots for the goods carriers.

4. Policy Targets

4.1 Vision

This policy envisages to provide the Government, Non-Government and Trade & Commerce agencies

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operating in the State of Jammu & Kashmir with professional, cost effective and timely logistics support services in the areas of procurement and supplies, transport operation and management to enable them to provide better service to the general public.

4.2 Mission

Provide logistics in a responsive and responsible manner to enable the seekers to obtain the services they require in time and with value for money.

Review regularly the way and cost effectiveness of delivering our services so that they adopt the industries' best practices and advances in technology while remaining competitive amongst those being provided in the market.

Improve continuously our performance in respect of environmental protection in the delivery of our services, and provide a healthy and safe working environment to the people engaged in the field of logistics industry.

Foster a customer-focused and team-building culture by maintaining effective communication

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in the stakeholders of the logistics industry, customers and the government agencies.

Continue to improve the standards of logistics services in the State in terms of accessibility, connectivity, transport operation and management by recognizing it as the most important asset for the government which is vital to the successful achievement of developmental and security goals of the State.

To keep abreast of advances in technology, management and operational practices in the logistics services provided in the State as a lifetime learning commitment.

4.3 Objectives

Identify key issues and bottlenecks impacting logistics efficiency in the Jammu & Kashmir State.

Continuously explore the possibilities of improving ground, air and inland waterways connectivity (wherever possible/viable)across the State and to prioritize decision making in this regard and build a robust logistics

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infrastructure on modern lines like chain of logistics parks, transport yards, warehouses, controlled atmosphere stores etc.

Make suitable interventions for improving logistics performance of the State on key parameters, viz. Quality Logistics infrastructure, Quality of Logistics service providers, Efficiency of regulatory processes, Operating Environment favorability, Ease of arranging logistics at competitive rates, Timeliness of cargo delivery, safety/security of cargo movement and Ease of track and trace.

5 Strategy

5.1 One consequence of liberalization is the de-facto merger of domestic and international markets into a single market and the necessity for domestic business and trading entities to become internationally competitive even in the internal markets. In this setting, quality logistics is the key for economic growth.

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5.2 Jammu & Kashmir State’s export remains heavily focused on Basmati rice from Jammu Division and Saffron, Handicrafts & Handloom products and Horticulture produce from Kashmir Division. The imports mostly include the secondary commodities and the Fast Moving Consumer Goods (FMCG). About 7,20,000 trucks carrying various commodities enter and 6,70,000 trucks carrying goods move out of the State annually6. A brief overview of the State’s commodity flow is given in the table below (Table II). This figure is to increase multifold owing to the policy initiatives taken by the government to increase horticulture produce by way of introduction of ultra high density fruit varieties. The export-led growth is both an opportunity and a challenge for the State to have a vibrant logistic infrastructure.

Table II (Annual Commodity Flow in J&K) Traffic Commodity Quantity (Million Tons)

Inbound Traffic (7.5 to 8.0)

Food Grains 1.4 Cement 1.2

Petrol/Oil 1.0 Fruits and Vegetables 0.6

Fodder 0.3

6 J&K Excise Department

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Coal and Coke 0.3

Other Commodities (Fertilizers, Pharmaceuticals, Pesticides, Edible Oil etc.)

2.2

Outbound Traffic (2.2 to 2.5)

Fruits 1.4 Other Commodities (Pharmaceutical, Paint, Pesticides and Stationery)

0.8

Source: J&K Regional Digest 2015-16

5.3 The strategy of the Government would be to: identify existing cargo centers and trade

flows; assess existing logistics infrastructure -

institutional, regulatory, skill level, etc.; identify future trade potential and key

economy drivers on the basis of current economic and industrial scenario;

identify potential focus sectors and commodities;

estimate future cargo projections; assess future logistics requirements and

estimate hard infrastructure needs- connecting roads, terminal and facility location, type and phasing;

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identify future workforce skill needs and interventions;

ensure effective plan implementation by identifying suitable PPP model for infra projects;

facilitate the construction of road and train links to the proposed Warehouses/Logistics Parks;

undertake market sounding exercises to gauge private sector views;

oversee transaction and bidding process in the logistics industry;

develop massive logistic parks in IA/IE in the State by private investment;

invite leading logistics business groups to invest in State through EOI;

Special incentives to be devised for inviting big private investments;

Clearances required for setting up of Logistic-park to be given through “Single Window Clearance System”;

Identification of new land bank for Logistics Parks;

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enhance and upgrade the existing technology to reduce the economic cost of Logistics;

promote research and development (R&D) and skill development in logistics & warehousing; and

undertake periodic policy review of efficacy and proposed modifications with an eye on ensuring systems ability to meet logistics requirements not only of trade, commerce and industry but during the testing times of natural disasters and security challenges thrown upon the State.

6. Key Enablers 6.1 Business Reforms

To provide regularity ease and conducive business environment, Government of Jammu and Kashmir has taken a series of measures which will help all existing as well as new industrialists in setup their business ventures.

Development of ‘’Single Window Clearance System” through which all

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necessary clearances would be given to entrepreneur/applicant under one roof.

Development of “Investment Facilitation Cell” at each District Industrial Centre (DIC) to provide better facilitation to the user. This body will act as a backbone to the Single Window Clearance System and is tilted as “One Stop Solution for all Queries”.

Enactment of Single Window (Industrial Investment and Business Facilitation) Act, 2018 that ensures faster deliverance of clearances across different department.

Most of the services required for setting up an industry have been brought under the ambit of J&K Public Services Guarantee Act, 2011.

Submission of application in Online Only mode for bringing in transparency to the system.

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No physical touch points between Government departments and the applicant by Single Window System.

6.2 Capacity Building and Skill Development The projected inbound and outbound traffic of the state is 30 million tons per annum by 2030. 7 The demand for the skilled labour is accordingly expected to increase vertically. To meet out this challenge Government has decided to upgrade the technical skills by organizing training programmes and workshops in specific sectors throughout the state. This would help in effective and efficient deployment of resources and minimize dependence on workforce from outside state.

6.3 Taxation Enablers 6.3.1 The State Government has adopted

uniform Goods and Services Tax (GST) Act which is now applicable at pan India level. The GST Act was subsumed most

7 Assuming a growth rate of 8.5% per annum

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of the taxes on production and sales of goods and services, which were levieable by the Union and the State Government, commencing from the Excise Duties and Central Sales Tax (CST) and ending at VAT or Service Tax which would practically be the only tax collectable from the consumers at the level of retail trade.

6.3.2 The State Government in terms of SRO 299 dated 18th July, 2017 has notified www.gst.gov.in as the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax and electronic way bill.

6.3.3 The persons engaged in making supplies of taxable goods and services or both, the total tax on which is liable to be paid on reversed charge basis by the recipient of such goods and services or both, have been exempted from obtaining registration under the Jammu & Kashmir

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Goods and Services Tax Act, 2017. SRO-298 dated 18th July, 2017 has been issued in this regard by the State Finance Department.

6.3.4 In order to boost Internal Trade, the Government has exempted intra-State supply of around 149 goods and 81 services from the GST. In this regard the Union Ministry of Finance has issued Notifications vide No. G.S.R. (E)-2/2017 dated 28.06.2017 and No. G.S.R. (E)-12/2017 dated 28.06.2017 respectively for exemption of CGST on intra-State supply of identified goods and services. The State Finance Department has also issued SRO No. GST-2 dated 08.07.2017 and SRO No. GST12 dated 08.07.2017 respectively for exemption of SGST on the intra-State supply of identified goods and services.

6.3.5 The State Finance Departments SRO GST-18 dated 15th September, 2017 read with SRO 431 dated 13th October 2017 have been issued, wherein for

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“Casual Taxable Persons” specified, in terms of sub-section (2) of section 23 of the Jammu & Kashmir Goods and Services Tax Act, 2017, as those persons making taxable supplies of a number of Handicraft products have been exempted as the category of persons exempted from obtaining registration under the aforesaid Act, provided that the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of Rs. 20 lakh in a financial year which is a special dispensation extended to Jammu & Kashmir State as this benefit is available to other Special Category States to the aggregate value of such supplies amounting upto Rs. 10 lakh only. This exemption shall be available to such persons who are making inter-State taxable supplies of Handicraft goods and are availing benefit of Union Finance Ministry’s notification No. 8/2017-Integrated Tax, dated 14th September,

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2017 published in the Gazette of India vide No. G.S.R.(E) dated 14th September, 2017. Beyond the aforementioned limit of Rs. Twenty Lakh per annum, supply of Handicraft products have been kept in the lower tax bracket of 12.5%, whereas paper-machie and willow wicker products have been kept in the tax bracket of 5%.

6.3.6 In order to provide budgetary support to the manufacturing units in the shape of Reimbursement of State Taxes paid under J&K GST Act 2017, the State Government has issued a Scheme in terms of SRO-519 dated 21st December, 2017 called „Jammu & Kashmir Reimbursement of State Taxes for promotion of Industries in the State of Jammu & Kashmir‟, which has come into operation w.e.f 08.07.2017 for eligible units and shall remain in force till the Scheme dated 05.10.2017 announced by Government of India, namely „Budgetary Support under Goods and Services Tax

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regime to the Industrial Units located in Jammu & Kashmir, Uttrakhand, Himachal Pradesh and North East including Sikkim is in operation.

6.3.7 Likewise, in order to provide budgetary support to the existing eligible manufacturing units operating in the State of J&K in the shape of 42% of the Central Tax paid under Central GST Act 2017 after adjustment of input credit tax, another Scheme called “Jammu & Kashmir Reimbursement of Central Taxes for promotion of Industries in the State of Jammu & Kashmir”, has been issued vide SRO-521 dated 21.10.2017. This Scheme shall also remain in force till the Government of India’s Scheme dated 05.10.2017 announced by Government of India, namely “Budgetary Support under Goods and Services Tax regime to the Industrial Units located in Jammu & Kashmir, Uttrakhand, Himachal Pradesh and North East including Sikkim”, is in operation.

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6.3.8 The State Government shall be regularly taking up the issues in the GST Council and other appropriate forums regarding further relaxations and lowering of tax rates as per requirement of the furtherance of growth of Logistic activity of the State.

7. Incentives

The units set up in logistics sector under this policy shall qualify for all the incentives as are provided to the Industrial units under the Jammu and Kashmir Industrial Policy 2016-26. Following incentives shall be applicable for units that are setup in the logistic sector:

Capital Subsidy @ 25% of eligible fixed capital.

For purchase of Cargo Trailer of minimum 50 vehicles--------------------------- till 2022 or till JK-IDS is applicable.

Power at Industrial Rates for a period of 05 years.

Vehicle Registration Exemption of 2%.

Road Tax Exemption of 30%.

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Interest Subvention @ 3% till 2022 or till JK-IDS incentives available to the state.

8. Definitions

8.1 Words in this policy will be read and interpreted as per Annexure-1 of this Policy.

8.2 Definitions of J&K Industrial Policy 2016-26 will also be used for implementation of this Policy. In case of any anomaly given in Annexure-1 of this Policy will prevail.

9. Operative Period of the Policy

This Policy shall come into effect from the date of its notification and will be valid for a period of ten years or till a new Logistics Policy is announced.

10. Policy Framework

10.1 Logistic and Warehousing Facilitation Cell

The state shall set up a dedicated Logistic and Warehousing Facilitation Cell which will act as a converging body to monitor the progress of logistics and warehousing in the state. The cell shall coalesce

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with the Investment Promotion and Facilitation Cell created under the J&K Single Window (Industrial Investment and Business Facilitation) Act, 2018 for enabling ease of doing business and attracting private investments into the state overseeing time bound clearances, sanctioning special packages for logistic projects and approving any policy initiative(s) for activities such as container depot, freight forwarding and warehousing. The cell shall be positioned as a specialized cell and manned by officials from the Department of Revenue, Public Works (R&B) Department, Department of Housing and Urban Development Department and the Department of Industries and Commerce, J&K. The summary of major functions of the cell shall include:

Attracting investors, framing and executing broad strategies for developing warehousing and logistics facilities in the state.

Project monitoring and review of existing projects within state and attract fresh investments in the logistics and warehousing sector.

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Expedite the approvals process for investors as per the citizen charter.

10.2 Special taskforce on logistic and warehousing

A special taskforce shall also be constituted for ensuring an overall orderly development of logistics in the state. The taskforce shall be responsible for creation and implementation of Logistics Masterplan for the state with a dedicated roadmap for Pathankot-Jammu-Srinagar-Uri, National Highway. The taskforce shall be serviced by Industries and Commerce Department and shall be provided with a statutory backing.

10.3 Norms for setting up of Warehouse, Logistics Parks and Integrated Logistics Parks

10.3.1 Warehouse

i. Warehouses for agriculture / horticulture produce to have a minimum area of 2 acres with a 20 feet wide approach road.

ii. Warehouses other than for agriculture/ horticulture produce to have a minimum area of 5 acres with a 25 feet wide approach road.

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iii. Gas-Godown Warehouses to be developed in a minimum of 0.25 acres with a 15 feet wide approach road.

iv. Warehouses would mandatorily require parking place within the premises as per following standards: Minimum of 88 Spaces8 in case of

Warehouses for agriculture / horticulture produce.

Minimum of 220 Spaces in case of Warehouses other than for agriculture / horticulture produce.

Minimum of 11 Spaces in case of Gas-Godown Warehouses.

10.3.2 Logistics Park

A logistics park can be developed on a minimum of 10 acres of land area with a 30 feet approach road. Other mandatorily conditions are:

Provision of parking place within the premisis (minimum of 440 Spaces).

8 Each standard parking space shall be a minimum of eight and a half (8 ½ ) feet in width and nineteen (19) feet in

length.

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Common Effluent Treatment Plant (CETP) for effluent treatment at a centralized place.

Mandatory installation of Solar Rooftop Systems on all the buildings.

Establishing a Rainwater Harvesting System within the premises, comprising of all the components of various stages – transporting rainwater through pipes or drains, filtration, and storage in tanks for reuse or recharge of catchments.

10.3.3 Integrated Logistics Park

An integrated Logistics Park can be developed on a minimum of 60 acres of land. This shall include-Inland container depots/ custom bonded areas to be developed in a minimum of 50 acres. The approach road width will be minimum of 30 feet. Other mandatorily conditions are:

Provision of parking place within the premises (minimum of 2000 Spaces).

Common Effluent Treatment Plant (CETP) for effluent treatment at a centralized place.

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Mandatory installation of Solar Rooftop Systems on all the buildings.

Establishing a Rainwater Harvesting System within the premises, comprising of all the components of various stages – transporting rainwater through pipes or drains, filtration, and storage in tanks for reuse or recharge of catchments.

10.4 Green Logistics and Warehouse

The State shall promote and incentivize the adoption of GRIHA III norms9 and Green Norms Incentives (LEED ratings)10. This may be provided subject to the inclusion of the following:

Extensive horticulture and plantation along with adequate sewage treatment .

Recycling of water for landscaping and horticulture.

Use of bio-methanation for treatment of bio waste and for generation of cooking gas.

Rainwater harvesting.

9 Green Rating for Integrated Habitat Assessment (GRIHA), a rating tool to evaluate the environmental

performance of a building holistically over its entire life cycle, thereby providing a definitive standard for what constitutes a ‘green building’. 10

Leadership in Energy and Environmental Design (LEED) , a worldwide accepted green building rating system.

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Installation of roof top solar panels.

Provision of single/ double glazed windows with matched U-Factor for increased energy efficiency .

Provision of adequate ventilation and natural day light.

10.5 Industry status to Logistics and Warehousing

Status of industry shall be accorded to logistic and warehousing related units set up within the state. With grant of industry status, all logistics and warehousing units in the state shall be eligible for all the incentives as applicable under the J&K Industrial Policy 2016-26.

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ANNEXURE-1

Definitions

1. Warehouse- A warehouse can be defined as any premise (including any protected place) which includes a place for storage and/or accumulation of goods under controlled conditions and also equipped for providing handling, transportation as well as value added services such as sorting, grading, packaging etc. A warehouse may be characterized as Integrated Inland Container Depots/Custom Bounded Areas, Warehouse for Agro Produces/Grain Godowns, Warehouse other than agriculture produces, Gas godowns.

For the purpose of this policy, a warehouse storage system may include but not be limited to the following-

i. Warehousing complex with fixed facilities, moving units, rolling stocks.

ii. Open and closed storage, ambient condition storage for transit period

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iii. Fulfillment centres (in case of e-retailing), distribution centres

In-bound and out-bound logistic services handling backward and forward linkages including storage processing, assembling, packing, handling, distribution such as cold storages, silos, refrigerated warehouses, In-bound material handling and moving equipment, retail space. The warehouses to also earmark dedicated area for idle parking.

2. Logistics – Logistics can be defined as any commercial activity of transportation, storage and distribution of any article & thing or services by bringing together several functionalities to bring products and services at the right place, at the right time, in the desired condition with the minimum cost and highest return on investment fall under the ambit of Logistics. The definition of logistics includes the following:

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i. Assembly: Creating an assembly from basic component either through automation or manually.

ii. Customizing: Customizing core product as per customer requirement through the use of automation, semi automation or manual process including module assembly.

iii. Deconsolidation: Creating from bulk to small packaged goods for retailing e.g. deconsolidation activities in stores/warehouses for retailing and last mile delivery.

iv. Packing/Packaging/Labelling/Bar-coding/RFID tagging.

v. Ancillary, value addition, processing activities and supply chain management.

vi. Specialized warehouse storage.

vii. Testing & Inspection facilities.

viii. Reverse distribution/logistics i.e. collection of damage, out-dated, unsold, returned goods

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and bringing them back to supplier or manufacturer that includes transportation and warehousing.

3. Logistics Park- Logistics Park is defined as an agglomeration of a given set of logistics activities (core, value added, ancillary as well as commercial) at a particular, well-defined location. From a policymaking point of view, these terms refer, fundamentally, to the physical organization of logistics activities where co-location of various industrial/units and collaboration among various complementary activities creates value, reduces cost and improves service levels. For the purpose of this policy, a logistics park system may include but not be limited to the following-

a) Warehousing storage system, open, closed and special storage/ambient condition storage for transit period, dedicated warehousing for transit & bonded cargo, domestic cargo, inventory cargo (under long term contracts).

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b) Industrial plots and ready to move in sheds. c) Logistic services like inter-modal transfers container terminals, bulk / break-bulk cargo terminals. d) Infrastructure for value added and ancillary services, commercial activity. The logistic parks shall also earmark dedicated area for idle parking. e) Sector specific in-bound and out-bound logistic infrastructure for focus sectors such as automobiles, food processing, pharmaceuticals. f) Inter-modal transfer arrangements / facilities, truck terminals.

4. Integrated Logistics Park- For the purpose of

this policy, in addition to the provisions of a logistics park ( as mentioned above), an integrated logistics park may include but not be limited to the following-

a) Road & rail linked inland container depot, free-trade warehousing zone, domestic cargo zone and commercial development

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space. For integrated inland container depots/custom bounded area, availability of railway siding is a pre-requisite. b) Dedicated infrastructure for commercial activities such as business, exhibition centres, hotels, offices etc. c)Multi-modal transfer arrangements/ facilities, truck terminals. d) Common Infrastructure such as Rail Yard, Stacking and circulating Area, Internal Roads, and Parking etc.

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(draft) jammu & kashmir state logistics policy- 2018-28 1...

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