It added that the policy will increase the participation of private players as well as help in reducing the overall logistics cost.
It added that the policy will increase the participation of private players as well as help in reducing the overall logistics cost.
India Ratings and Research (Ind-Ra) said in a report that the logistics industry will benefit from the central government’s rail land licensing policy.
It said the policy, published on 7 September 2022, would provide an equal opportunity to private and public logistics entities, as well as encourage private participation in the development of logistics infrastructure in India.
The rating agency said, “Through the policy, the government aims to eventually move towards a competitive bidding process for allotment of railway land, which has so far been dominated by central/state agencies due to short lease periods and high rental yields.” ” ,
It added that the policy will increase the participation of private players as well as help in reducing the overall logistics cost.
India Ratings said existing licensees will not opt for the new policy for their robust and profitable terminals, which will eventually go for competitive bidding on completion of the concession period.
However, the existing licenses of unprofitable terminals are expected to be canceled to avail the lower LLF of 1.5% under the new policy.