The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved the National Logistics Policy. The policy which was unveiled last week by PM Modi aims at reducing transportation cost and promoting seamless movement of goods in the country. Apart from this, the Cabinet also approved a production linked incentive (PLI) scheme on ‘national programme on high efficiency solar PV modules’ and modifications in the Programme for development of semiconductors and display manufacturing ecosystem.
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National Logistics Policy
The Cabinet on Wednesday approved the National Logistics Policy which seeks to cut transportation costs by promoting seamless movement of goods across the country.
The policy lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. It is envisaged to bring efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies.
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The policy sets targets to reduce cost of logistics in India to be comparable to global benchmarks by 2030, improve the Logistics Performance Index ranking, to be among top 25 countries by 2030, and create data driven decision support mechanism for an efficient logistics ecosystem.
PLI scheme on ‘High Efficiency Solar PV Modules’
The Cabinet also approved a Rs 19,500-crore production linked incentive (PLI) scheme on ‘national programme on high efficiency solar PV modules’ with an aim to attract Rs 94,000 crore investment in the sector.
The program aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India, and therefore reduce import dependence in the renewable energy sector. The PLI scheme is likely to strengthen the government’s Atamnirbhar Bharat initiative and also create jobs.
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The government said that solar PV manufacturers will be selected through a transparent selection process and the PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants on sales of high efficiency solar PV modules from the domestic market.
The government estimates that about 65,000 MW per annum manufacturing capacity of fully and partially integrated solar PV modules would be installed.
It also estimates direct employment of about 1,95,000 and indirect employment of around 7,80,000 people in the solar PV sector.
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Modifications in the scheme for semiconductors
Additionally, the Cabinet approved the modifications in the scheme for development of semiconductors and display manufacturing ecosystem.
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The government will provide a fiscal support of 50 per cent of project cost for all technology nodes for setting up of Semiconductor Fabs in the country. It will also give fiscal support of 50 per cent of project cost for setting up of Display Fabs.
Apart from this, government will give fiscal support of 50 per cent of capital expenditure for setting up of Compound Semiconductors/Silicon Photonics/Sensors Fab and Semiconductor ATMP/OSAT facilities in the country. Additionally, target technologies under the scheme will include Discrete Semiconductor Fabs.
