Kerala’s Industry Minister, P Rajeeve, has introduced a draft logistics policy that includes investment subsidies of up to ₹7 crore for logistics parks in the state. Under this new policy, a logistics park spanning 10 acres could receive a subsidy of ₹7 crore, while a smaller, five-acre mini-park could be eligible for ₹3 crore.
The policy also proposes classifying logistics parks as industrial zones and aims to streamline their approval through a single window system. The Directorate of Industries and Commerce has suggested that industrial land could be repurposed for logistics, highlighting the potential to significantly enhance the sector’s capacity.
During the announcement, Minister Rajeeve emphasized the volume of goods flowing into Kerala, estimating values between ₹1.5 lakh and ₹1.5 lakh crore from other Indian states. He stressed the importance of fully capitalizing on this influx.
A Logistics Consultative Forum meeting was held to discuss the draft policy with regional industry stakeholders, reflecting the annual growth rate of 8.8% in India’s logistics industry. The policy outlines plans for skill development in storage, transportation, and other logistics services.
Additional incentives recommended in the draft policy include stamp duty exemptions for logistics and mini logistics parks. The policy also envisions the creation of a State-level Logistics Coordination Committee, led by the Chief Secretary, a Logistics Cell under the Principal Secretary of the Industries Department, and a Special Committee for cities.
Suman Billa, Principal Secretary of the Industries Department, highlighted the strategic significance of logistics in Kerala, particularly as a major consumer of fast-moving consumer goods, accounting for over 6% of national consumption. The policy aims to leverage this aspect to create job opportunities within the state.
Paul Antony, Chairman of the Kerala State Industrial Development Corporation (KSIDC), commented on the state’s vast potential in the logistics sector and the government’s commitment to providing necessary support for its growth. However, he noted that industry participation is crucial for the success of these initiatives.
S Harikishore, Director of the Industries Department and Managing Director of KSIDC, presented a detailed overview of the policy at the stakeholder meeting. The state government plans to finalize the policy by June, after incorporating feedback from industry stakeholders.
