$250 mn loan approved to improve India’s logistics sector

The Asian Development Bank (ADB) has approved a $250 million policy-based loan to support Indian government’s wide-ranging reforms that aim to improve and modernise the country’s logistics infrastructure, increase efficiency, and reduce the cost. The loan will fund the first sub-programme of the Strengthening Multimodal and Integrated Logistics Ecosystem Program, said an official press release. The sub-programme supports the government’s efforts to create a comprehensive policy, planning, and institutional framework at the federal, state, and city levels. This will rationalise India’s high cost of logistics and reduce greenhouse gas emission, the release added. To facilitate multimodal logistics, the sub-programme promotes reforms that reduce cumbersome processes that businesses face to obtain approvals for cargo clearance as well as the creation of digital systems that integrate regulations, processes, and logistics data. The programme promotes the facilitation of cargo movement through coastal shipping and inland waterways to strengthen multimodal transport.
The programme also supports the ministry of commerce and industry’s initiatives to issue standards for warehousing, which would encourage operational efficiency and private sector investment.