While pursuing its agenda of emerging as an industrial powerhouse, Telangana state government is also looking at creating right kind of infrastructure for logistics operations. It has been the first state in the country to create a dedicated logistics department which is now ready with a draft logistics policy laying a long-term growth framework. Rupesh Singh, Director (Logistics Department), Telengana share some details of the draft policy in an exclusive conversation with Ritwik Sinha…
Telengana government in the recent past has clearly shown the intent of emerging as a manufacturing powerhouse. This would entail creating an eco-system wherein there should be ample scope for the allied businesses like logistics. How are you addressing this issue?
We fully understand that for any progressive industrial eco-system, we need robust supply chain infrastructure. Our draft logistics policy, waiting for the final approval by the government, is focusing on creating infrastructure and incentivizing the investors who would like to set up logistics facilities in Telangana. The draft policy envisages identification of 10-12 locations within the state where logistics hubs can be created.
You are planning a network of logistics parks with Hyderabad being the fulcrum…
Yes. They would typically be working on the hub and spoke model. If you look at the profile of the state, Hyderabad is the major economic centre. The government, however, also wants to promote more economic activities in other corners of the state. And we clearly have the potential. There is a lot of farm produce, and now food processing companies are coming into the state. All this will need right kind of logistics support.
While you are planning a network of logistics parks across the state, there is also some buzz about a mega multi-modal logistics park unit. Please share some details on that.
We fully realize that one of the major reasons for our high logistics cost is the absence of quality multi-modal units. The lack of hubs where goods can move from road to railways is a serious missing link. And these are quite capital intensive projects where payback period is too long. We understand that the government has to step in and incentivize the private sector so that they can partner in such units. We are planning a 500 acres multi-modal logistics parks near Hyderabad. Once we complete this project, we will evaluate if similar units are required in other parts of the state – maybe smaller units.
What is the kind of implementation schedule you are looking at?
We have identified land and we are now working on basic structure of the project. Since this would be a public private partnership (PPP) project, we are working on incentives which will be offered to our prospective private partners.
What kind of investment you are looking at for this mega unit?
It would need an investment of around Rs 1000 crore. As per our plans, the government would provide land and the private sector would set up the unit. The request for quotation (RFQ) process would be initiated in the next four-five months. The project could have multiple players becoming our partner.