Top

Infrastructure tag to logistics sector boost for AP business

The infrastructure status to logistics sector will largely benefit Andhra Pradesh having good connectivity via sea, road or air.

Visakhapatnam: The infrastructure status to logistics sector will largely benefit Andhra Pradesh having good connectivity via sea, road or air and huge scope for logistics business, said AP Chamber of Commerce and Industry Federation president G. Sambasiva Rao. The logistics include industrial parks, warehouses, cold storages and transportation.

“Andhra Pradesh has six seaports and good road connectivity with the development of the Vizag-Chennai industrial corridor on the card. There are also plans for a Chennai-Bangalore corridor via Krishnapatnam. Moreover, its neighbouring states also depend on Andhra Pradesh for import and export of commodities," he said.

When asked how the infrastructure tag will help logistics, the federation president said, “The investment flow will go up. The reason is it will enable the logistics sector to avail infrastructure lending at easier terms with enhanced limits. Entrepreneurs will also get longer maturity loans which will help the businessmen to pay the loan back easily.”

He also added that good investment would not only generate employment but improve infrastructure for logistic sector giving a space for repackaging to the suppliers. “The timing of the decision could not have more right as the state government is focusing on the agro-processing industry where logistics plays a major role. This would also pave a path for competitive market making it win-win situation for all the stakeholders,” said Mr Sambasiva Rao.

According to the notification, logistics infrastructure includes Multimodal Logistics Park comprising Inland Container Depot (ICD) with a minimum investment of Rs 50 crore and the minimum area of 10 acres. Further, a cold chain facility having an investment of at least Rs 15 crore as well as warehousing facility with an investment of minimum Rs 25 crore would come under logistics infrastructure. In both cases, the facilities should also have a minimum required area.

( Source : Deccan Chronicle. )
Next Story