‘Budget must focus on development freight corridors’

Karan Shaha, CEO and Co-founder, Vahak shares his expectations from the upcomig budget, “The sector has made enormous strides under the National Logistics Policy’s CLAP, particularly with the recent creation of a network of Logistics Parks that have been mapped using the PM GatiShakti NMP. This will further bring focus on enhancing visibility, improving logistics efficiency, and ensuring optimum utilisation and connectivity. There is a critical need to map these with the requirements of commercial vehicle drivers at the core. Today, nearly 56% of dedicated freight corridors have been completed. We are hoping that the Union Budget will incentivise development to bring 100% closure of these freight corridors. We recommend these projects be given top priority to support a seamless and effective logistics model. We are also hopeful that this Union Budget will look into incentivisation of R&D for the latest alternative fuels – battery-electric, compressed natural gas (CNG), flex fuel, hydrogen fuel cell, fuel efficiency, among others, with relevant charging infra – and technologies like AI, ML, Big Data, GPS, safe driving. Targeted incentives can spur demand for commercial alternative fuel technologies and their adoption, as well as favorable financing for trucker communities, will encourage them to buy green commercial vehicles. We expect this budget to address issues with systemic changes that ensure reliable employment, and fair compensation with minimum wages in the range of Rs. 25,000 per month through the Motor Vehicle Act, and linking of license renewal with social security schemes such as ESI/ PF, life and medical insurance. Through collective efforts, the industry and the government can harmonise demand and supply and drive market scale in the upcoming year.”
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