HIGHLIGHTS
Facilitation Fee” is collected from truck owners at inter states borders of Madhya Pradesh, Gujarat and Goa and also at JNPT associated container freight stations
State Government collects Stamp Duty at 0.1% on delivery order value of imported goods as tax. This results in increasing the total logistic cost to the trade
Renewal permissions, related to Maharashtra Pollution Control Board (MPCB) are delayed
However, there is a silver lining as Maharashtra has been graded as an Achiever within the Coastal cluster
The State has scored above average across indicators related to Quality of Infrastructure. State has scored high with regards to Terminal Infrastructure indicator
Even as the Shinde Fadnavis government is grappling with the loss of a $20 billion Vedanta Foxconn semiconductor project to Gujarat, the Department for Promotion of Industry and Internal Trade (DPIIT) in its LEADS 2022 (Logistics Ease Across Different States) report said that Maharashtra has been rated below average on all indicators related to Operating and Regulatory Environment. Labour unions, entry restrictions and lack of effective grievance redressal mechanism for the sector have been highlighted by the trade as key limiting factors. According to the report, Maharashtra needs to take proactive measures for addressing and improving the perception of trade friendliness.
The report, which was released early this week, has highlighted industry feedback whereby Labour is a major issue across industrial areas in Maharashtra. ‘’Regular delay in stamp-duty validation at the Inspector General of Stamps, office based in Alibaug. There is a lack of Reconciliation / grievance redressal system in the state. The quality of water supply to industrial areas located outside MIDC (Maharashtra Industrial Development Corporation run industrial estates) needs improvement.
Waste management facilities need to be developed in the Chakan industrial region and Quality testing and other clearances required for European and American exports are often delayed and subject to speed money,’’ the report says.
Further, the report has cited issues related to regulatory and operating environment whereby Illegal encroachments in MIDCs (Maharashtra Industrial Development Corporation run industrial estates) at Pimpri Chinchwad cause hindrance in cargo handling and movement while bridges on the Maharashtra - MP border need to be jointly calibrated.
‘’State Government collects Stamp Duty at 0.1% on delivery order value of imported goods as tax. This results in increasing the total logistic cost to the trade. Renewal permissions related to Maharashtra Pollution Control Board (MPCB) are delayed. Facilitation Fee” is collected from truck owners at the inter state borders of Madhya Pradesh, Gujarat and Goa,’’ the report states. The industry in its feedback pointed out that Locals (project affected people) collect Rs 1,000 – 1,500 per truck as “facilitation fee” (known as Varai charges) at JNPT associated CFSs, this directly adds to the cost of logistics to the customer. In addition, unwarranted and frequent stoppages by RTO officials in the state lead to delays.Further, approach roads to container freight stations (CFSs) in Dronagiri and Rasayani clusters need to be widened to handle growing traffic. Internal MIDC roads and first / last mile roads connecting various industrial areas in Pune, Nagpur and Nashik need improvement. Road infrastructure between Pune to Chakan needs improvement.
Parking facility for trucks plying in between JNPT and CFS is required.The industry has made a strong case for the development truck terminal/transport nagar at Ambad, Shirpur, Satpura, Ambik, Nayagaon, Pimpalgaon and Ozar areas of Nashik, Hazardous cargo insinuation facility near JNPT and improvement in Cold warehousing infrastructure for agriculture and horticulture commodities in Nashik, Nagpur and Konkan, region.
However, there is a silver lining as Maharashtra has been graded as an Achiever within the Coastal cluster. The State has scored above average across indicators related to Quality of Infrastructure. State has scored high with regards to the Terminal Infrastructure indicator. ‘’Reasonableness of Prices of Logistics Services, Track and Trace movement of cargo and Safety and Security of Cargo related to Reliability of Logistics Services has been identified as areas where the state could improve,’’the report said which was released on Monday.
According to the report, the state government based on the LEADS 2021 report has set up an institutional mechanism to streamline logistics in the state.The state has built Command and Control Centers in seven smart cities to ensure efficient traffic management and easier passage of freight through these cities. Additionally, 24 Integrated Border Checkpoints have also been sanctioned by the state to ease freight movement.
Further, 18 Border check posts have been modernized, equipped with weighbridges, cameras, RFID (Radio Frequency Identification) to minimize manual stoppages and checking at border locations. The state has identified 4 MMLP (Multi Modal Logistics Park) Projects at Mumbai / Thane, Pune, Nashik, and Aurangabad.
