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F. No. 081/2/4/2017-CA. IVGovernment of Indial ~ tHChI{

Cabinet Secretariat! <R8<RoS<>l tlfilCfl<>lllRashtrapati Bhawanl {llS?qf8 mra=r

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New Delhi, the 31st October, 2017

Subject: Development of logistics and associated infrastructure in thecountry.

Please find enclosed herewith a copy of the minutes (DoC. No. 94/2017-CA.IV)of Committee of Secretaries (CoS) held under the chairmanship of Cabinet Secretaryon Wednesday, the 18th October, 2017 at 3.15 p.m. in Committee Room, CabinetSecretariat, Rashtrapati Bhawan, on the subject mentioned above for information andnecessary action. Action taken on the recommendations of the CoS may kindly beuploaded on e-SamikSha web portal.

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(Amitesh Kumar Sinha)Director

Tel: 2301 3507Secretary, 0/0 CommerceSecretary, Mlo Road Transport & HighwaysChairman, Railway BoardSecretary, Mlo Civil AviationSecretary, Mlo ShippingSecretary, 0/0 Industrial Policy & PromotionSecretary, 0/0 Economic AffairsSecretary, 0/0 TelecommunicationsSecretary, Mlo Electronics & Information TechnologySecretary, 0/0 Food & Public DistributionSecretary, 0/0 ExpenditureSecretary, Mlo Skill Development & EntrepreneurshipSecretary, Mlo Food Processing IndustriesChairman, Central Board of Excise & CustomsDirector General, Supplies & Disposal

Copy also forwarded to:Principal Secretary to the Prime Minister

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(Amitesh Kumar Sinha)Director

Internal Circulation (One copy only)AS(C)/AS(RB)/AS(AG)/Dir(AKS)

SECRETCABINET SECRETARIATRASHTRAPATI BHAWAN

MINUTES OF THE MEETING OF COMMITTEE OF SECRETARIES

Doc. No. 94/2017-CA.IV Copy No of 20

Venue: Committee Room, Cabinet Secretariat, Rashtrapati BhawanDate of meeting: Wednesday, the 18th October, 2017

Time of Meeting: 03:15 p.m.

PRESENT

Shri P.K. Sinha, Cabinet SecretaryMs. Rita A. Teaotia, Secretary, 0/0 CommerceShri R.N. Choubey, Secretary, Mlo Civil AviationShri Ramesh Abhishek, Secretary, 0/0 Industrial Policy & PromotionShri Y.S. Malik, Secretary, Mlo Road Transport & HighwaysShri S.C. Garg, Secretary, 0/0 Economic AffairsDr. K.P. Krishnan, Secretary, Mlo Skill Development & EntrepreneurshipShri J.P. Meena, Secretary, Mlo Food Processing IndustriesShri Binoy Kumar, Director General, Supply & DisposalShri Ajay Prakash Sawhney, Secretary, Mlo Electronics & Information TechnologyShri Ravi Kant, Secretary, 0/0 Food & Public DistributionDr. Inder Jit Singh, Additional Secretary (Coordination), Cabinet SecretariatShri Rajesh Bhushan, Additional Secretary, Cabinet SecretariatShri A. Giridhar, Additional Secretary, Cabinet SecretariatShri P.K. Das, Additional Secretary, 1;)/0 ExpenditureMs. Leena Nandan, Additional Secretary, Mlo Road Transport & HighwaysShri S.P. Singh, Joint Secretary, Mlo ShippingShri Shashi Ranjan, Joint Secretary, 0/0 TelecommunicationsShri Sanjay Chadha, Joint Secretary, 0/0 CommerceShri Abhijeet Narendra, ED(PPP), Traffic, Railway BoardShri Sandeep Kumar, Commissioner, Central Board of Excise & CustomsShri Amitesh Kumar Sinha, Director, Cabinet SecretariatShri Aman Sharma, Director, Government e-MarketplaceShri B. Praveen, Director, 0/0 CommerceShri Abhishek Chandra, Deputy Secretary, Mlo Shipping

Subject: Development of logistics and associated infrastructure in thecountry.

A meeting was held under the Chairmanship of Cabinet Secretary on18.10.2017 at 3.15 PM in the Committee Room, Cabinet Secretariat, RashtrapatiBhawan on the abovementioned subject.

2. Initiating the discussion, Secretary, 0/0 Commerce (DoC) stated that Group ofSecretaries on Commerce and Industries had highlighted many logistics issues in theirrecommendations. Accordingly, DoC has taken inputs and suggestions fromconcerned Ministriesl Departments and stakeholders including World Bank's reportsavailable on this sector.

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3. DG(S&D), D/o Commerce (DoC) made a brief presentation and informed thatthe cost of Logistics in India is very high at 14% of GDP in contrast to the globalaverage of 8% of GDP. The lead time for export/import is also very high in India. Hestated that Logistics comprises of both infrastructure like roads, ports, railways, air onone hand and services like transportation, warehousing, logistics service provider firmsetc. which are all equally important. Logistics Division in DoC is mandated to formulateNational Integrated Logistics Plan, identify gaps in infrastructure and services, designoptimal multimodal mix, promote investment in service sector and warehousing,improve the efficiency of services and monitor the implementation of various initiativesincluding information gateway, etc.

4. DG(S&D) apprised that a National Integrated Logistics Plan will be finalised toimprove the logistics landscape in India, reduce logistics costs with an aim to boostexports and domestic trade. Further, an Integrated National Logistics Portal will bedeveloped for harmonization of multimodal systems. He informed that to measure andtrack logistics performance across the country, State Logistics Performance Index willbe formulated shortly. It was observed that DoC may consider Logistics PerformanceIndices for Ministries/Departments of GOI as well as for States. Need of putting inplace an appropriate governance structure was also discussed. It was observed thatDoC may propose an appropriate Governance structure for approval along withdetailed timelines for various milestones.

5. Commerce Secretary highlighted the need for a National Integrated LogisticsPolicy/Plan along with an Action Plan for the future. She stressed upon the need toreduce cost of logistics for increasing competitiveness of goods in bothdomestic/export market.

6. Secretary Civil Aviation mentioned that Logistics development had bothinfrastructure and service components and the former would require some time todevelop. However, the services component can be immediately addressed at a lessercost. In addition, common documentation system can be immediately put in place. Healso stressed upon the need to engage an appropriate consulting agency having globalexperience in the logistics sector to help DoC in this work.

7. Secretary DIPP informed that a lot of work had already been done in theLogistics sector by various Government agencies and the existing infrastructure &other facilities should be used besides integrating all the relevant Government portals& databases. Inputs from private sector stakeholders should also be taken. It wasobserved that GIS mapping of existing and ongoing infrastructure projects may becarried out urgently.

8. Secretary MoRTH informed that his Ministry had conducted a detailed scientificstudy through AT Kearney about the movement of goods from production toconsumption centres across the country and this report can provide necessary inputsfor the development of logistics sector. He also shared that MoRTH had signed MoUwith States for setting up of 35 Logistics parks where land shall be owned by theStates and connectivity to nearby ports and consumption centres shall be provided byMoRTH and Railways. It was observed that MoRTH may expedite implementation ofthese MoUs and also involve central agencies concerned, such as CONCOR etc. indevelopment of logistics parks.

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9. Secretary, DEA stated that proposal for giving infrastructure status to LogisticsSector may be sent to DEA for consideration. Secretary, MeitY opined that NationalLogistics Portal has to be owned by DoC and assured that necessary assistance willbe provided in its development. However, the proposed 12 months period fordevelopment of this portal may prove to be challenging as it has to be doneprofessionally and thoroughly.

10. Secretary, Skill Dev & Entrepreneurship shared that Logistics sector requiredmultiskilling for which his department has already initiated several measures incooperation with sector Skill Council. There was a need to introduce a single form forthe entire logistics chain and the warehousing receipts should be made electronic inorder to make them seamless, tradable and -as a certificate of quality. He cited theWDR Act of 2007 in this regard. Logistics and e-Commerce sectors being heavilydependent on migratory labour require migration facilitation centres near logistics hubs.He expressed the need to. also involve DFS and Labour Ministry as both the sectorsrequire availability of easy credit facility for the workers. The need for a truck trailerdriver training centre was also stressed.

11. Secretary, Food Processing Industries highlighted the need for creatingintegrated infrastructure for handling specialized cargo like perishable agriculturalproducts. Additional Secretary, DoE stressed the need for cost optimization to enhancecompetitiveness of this sector. It was observed that the sector is in its infancy andneeds to be nurtured properly.

12. After detailed deliberations, the following recommendations were made:

(i) DoC may work out a detailed Logistics Action Plan for the developmentof Logistics sector at the earliest.

(ii) DoC may identify gaps in infrastructure, regulations, services,administration etc. and incorporate appropriate measures in this regard,in the Action Plan.

(iii) DoC may propose an appropriate Governance structure for approvalalong with the timelines for various milestones, as part of the ActionPlan.

(iv) DoC may submit a proposal to DEA for according the status ofInfrastructure sector to the Logistics industry.

(v) DoC should make use of the various studies on logistics done by otherGovernment Ministries and organizations, such as MoRTH, CONCOR,Warehousing Corporation, FCI etc. and consult experts andstakeholders, including in the private sector, for necessary inputs.

(vi) DoC and MeitY may coordinate efforts to set up and operationalize theintegrated National Logistics Portal for harmonization of multimodalsystems on priority basis, within next 6 months.

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domain knowledge of all relevant functions like customs and excise,railways etc.

(viii) DoC may also focus on the efficient utilization of coastal shipping andinland waterways for transportation.

(ix) GIS mapping of existing and ongoing infrastructure projects may becompleted in a time bound manner.

(x) DoC may formulate a Logistics Performance Index and rank allMinistries/Departments of Gal and the States for measuringperformance and fostering healthy competition among them.

(xi) MoRTH may identify and involve central agencies, such as CONCORetc. in development and operation of logistics parks.

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