DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA
projects are in development
doubled to in Sq.ft
G. Rajender Reddy
Industry outlook, Opportunity in Telangana
A robust logistics sector can go a long way in boosting India’s quest for being a manufacturing giant given that several initiatives like ‘Make in India’ have been launched by the government. The industry has seen rapid growth in the last few years due to increased planned outlay of the government, improved infrastructure facilities and greater access to global markets. Logistics sector is expected to witness a structural shift over the next 3–5 years as it gets more organized and consolidates.
The establishment of dedicated freight corridors, containerization, inland waterways, more highways and expansion of air connectivity, ports& railways has resulted in an explosion of activities in the sector creating huge demand for warehouses and container stations.
Logistics cost in India accounts for 13-17% of the Gross Domestic Product (GDP) which is nearly double (6-9%) the logistics cost to GDP ratio in developed countries such as the US, Hong Kong, and France. Much of the higher cost could be attributed to absence of efficient intermodal and multimodal transport systems. There is immense scope for investments to achieve value chain efficiencies.
Logistics is one of the 14 thrust sectors under the Telangana government’s industrial policy. Hyderabad has emerged as a major investment destination connecting several industrial corridors in the country and is growing at a rate of 12 per cent in the logistics space. The award-winning Hyderabad Airport offers a gateway to several international destinations.
Mangalapally logistics park is a world class facility spread over 22 acres and the 1 st integrated logistics park in India developed in PPP mode ready for commercial operations. The State Government is also developing a first-of-its-kind logistics park at Batasingaram in Hyderabad in 40 acres with an investment of Rs 50 crores with warehousing, parking, and retail facilities. The logistics policy of the State government is designed to enable the creation of 10-12 more logistic parks in the next two-three years to make it a Global Logistics hub. Ease of doing business, proposed Pharma City, and TS- iPASS would benefit Telangana in scaling up in the sector and in three years, the State could see five times growth.
Telangana Industrial Policy:
The industrial policy framework will be driven by the slogan of “In Telangana—Innovate, Incubate, Incorporate”. The policy framework intends to provide a business regulatory environment where doing business would be as easy as shaking hands. Innovation and technology will drive the industries of the Telangana State.
Explore Industrial Policy – Link.
DEVELOPMENT OF LOGISTIC PARK AT BATASINGARAM, HYDERABAD
Logistics Testimonial, Govt of Telangana
Telangana is a big market for us and this can be proved from the fact that we have three fulfillment centers having 3.2 million cubic feet product storage space. In addition, we have a big assortment center in Patancheru and are serving over 500 pin codes in this State through our Amazon network.
Hyderabad will act as the catalyst to drive more trade in the state of Telangana.
Telangana Dry Port, Nalgonda:
Government of Telangana is planning to develop a Dry Port Facility in Nalgonda District. A dry port is an integrated container depot/terminal or container fright station where an exporter can complete all customs formalities without actually moving the cargo to the port. It will have strategic location to function as a hub of economic activity with multi-modal connectivity to the nearest ports in Andhra Pradesh and Tamilnadu. This would be a state of art of facility in Public Private Partnership (PPP) model. The Government is currently looking for private partners to develop the project.
- Maritime Association of Nationwide Shipping Agencies – United front of the ship agents.
- AIDC Technologies Association of India – Association of Automatic Identification, RFID and enterprise mobile computing firms.
- India Logistics & Supply Chain Association (iLSCA) – Non-profit association to promote the importance of Purchasing and Materials Management for economic advancement.
- Federation of Freight Forwarders’ Associations in India (FFFAI) – Apex Body and the Sole Representative of 28 Member Associations from all over India representing 6500 Customs Brokers.
- Logistics Skill Council – Not for profit organization set up by Ministry of Skill Development and Entrepreneurship (MSDE) to develop skill trained as well as up-skill the workforce in India.
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