Notified LWR Policy
Notified LWR Policy
Notified LWR Policy
EXTRAORDINARY
Published by Authority
© Govt. of Haryana
No. 45-2019/Ext.] CHANDIGARH, SATURDAY, MARCH 9, 2019 (PHALGUNA 18, 1940 SAKA)
HARYANA GOVERNMENT
INDUSTRIES & COMMERCE DEPARTMENT
Notification
The 9th March, 2019
No. 25/02/2019-4IB-I.— The Governor of Haryana is pleased to notify Haryana Logistics, Warehousing &
Retail Policy, 2019 which will be effective from date of its Notification. The Haryana Logistics, Warehousing &
Retail Policy, 2019 is placed at Annexure-‘A’.
2. This is issued with the concurrence of the Finance Department vide their U.O. No. 1/28/2019-1FD-III/8055
dated 05.03.2019.
DEVENDER SINGH,
Chandigarh: Additional Chief Secretary to Government of Haryana,
The 9th March, 2019. Industries & Commerce Department.
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ANNEXURE - A
GOVERNMENT OF HARYANA
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Table of Contents
List of Abbreviations……………………………………………………………… . 3
1. Preamble……………………………………………………………………… 4
Introduction………………………………………………………………....... 4
2. Policy targets…………………………………………………………………. 5
Definitions……………………………………………………………………. 6
Warehouse……………………………………………………………………. 6
Logistics……………………………………………………………………… 6
Logistics Park………………………………………………………………… 7
Integrated/Multi Modal Logistics Park (MMLP)…………………………….. 7
Cold Chain Facility…………………………………………………………... 8
Retail Enterprise……………………………………………………………… 8
Retail Hub……………………………………………………………………. 8
3. Eligibility…………………………………………………………………….. 9
4. Industry Status……………………………………………………………….. 9
Section – A: Logistics and Warehousing……………………………………. 9
Industry overview……………………………………………………………. 9
5. Fiscal incentives – Logistics and Warehousing……………………………… 11
6. Simplified regulatory regime- Logistics and Warehousing Sector………….. 13
7. Infrastructure augmentation…………………………………………………. 14
8. Human capital development………………………………………………… 17
Section – B: Retail Sector…………………………………………………... 18
9. Simplified regulatory regime……………………………………………….. 18
10. Human Capital Development………………………………………………. 19
11. Conclusion…………………………………………………………………. 19
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List of Abbreviations
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1. Preamble
Introduction
The Logistics and Warehousing industry in India is a thriving one, valued at INR 550 billion
and experiencing an upward growth trajectory. In terms of revenue, the industry is set to
expand at CAGR of 7.5% between 2015 and 2024 and by volume, at a CAGR of 6%
between 2016 and 20241. Continuing on the high growth trajectory, the industry is expected
to attain an industry size valued at INR 13,000 crores by 2019. As per the World Bank’s
Logistics Performance Index 2016, India’s ranking has been improving, shooting up by 19
places to 35th position. Going forward, with the emergence of evolving technologies,
demand sophistication as well as advanced business models, the Logistics industry is well
positioned to grow stronger.
In India, the Logistics sector primarily freight transportation, comprises of road (about 60%
of total freight traffic), rail, coastal shipping (about 32% and 7% share, respectively) and
inland waterways transportation and air (constituting about 1% share each). The Logistics
and Warehousing industry in the country is largely concentrated in Bengaluru (39%) and
Chennai (13%). With a consumer base having a high propensity to consume, strong
connectivity owing to an exhaustive network of national highways and industrial corridors,
and especially after the introduction of the GST regime in India, Haryana is all set to become
the Logistics hub of North India in the coming years. At a sectoral level, the consumer
durables and Fast Moving Consumer Goods (FMCG) has the largest logistics and
warehousing demand at 49% followed by sectors such as Automobiles, Electronics and
Food and Beverage.
The Retail sector in India has emerged as one of the most dynamic and fast-paced segment
of the economy. The sector today accounts for over 10 per cent of the country’s Gross
Domestic Product (GDP) and around 8 per cent of total employment. With a population of
over 1.3 billion, India is currently one of the biggest markets for national and international
retail players. With recent relaxations of norms such as permitting 100% FDI in single-
brand retail, 100% FDI in multi-brand processed food retail (provided such products are
produced in India), 100% FDI for online market places and 51% FDI in multi-brand retail,
the overall Retail market in India is expected to register growth at 12 per cent per annum
going forward.
Haryana with its large consumer base, increasing per capita income and rapid urbanization
has enormous potential to become one of the leading destinations for Retail trade in the
country. Further due to robust connectivity, easy access to 2 international airports at
Chandigarh and New Delhi and proximity to 2 major industrial corridors i.e. DMIC &
AKIC, place Haryana at a locational advantage. In addition, 13 districts of State are part of
the National Capital Region, which is one of the most prominent trade and consumption
hubs in India. Taking a lead in providing a conducive ecosystem for investors, Haryana has
simplified the regulatory environment and further easing the approval process for the
investors.
*1 Transparency International Report, 2016.
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2. Policy targets
Vision
This policy targets to transform Haryana into a global Logistics, Warehousing and Retail
hub, which is well equipped with state-of-the-art Logistics & Warehousing infrastructure,
a conducive regulatory environment and a mechanism for maximizing returns for retailers
and providing best buying experience to the end consumer.
Mission
1. Simplification of regulatory laws and procedures for the Logistics,
Warehousing and Retail sectors.
2. To create quality and cost competitive multi-modal Logistics and
Warehousing infrastructure as well as Retail-oriented infrastructure.
3. To promote human capital development initiatives targeted at the creation
of a labour pool skilled for the Logistics, Warehousing and Retail sectors.
4. Attracting private sector investments as well as PPP investments in
Logistics, Warehousing and Retail sectors.
5. Creating strong ecosystem for delivering on big ticket industry &
infrastructure projects
6. Enhancing the upgradation and adoption of modernized technologies
Objectives
1. Creation of at least 5 Logistics Parks across Haryana with private sector
participation (by 2023).
2. Attract investments to the tune of INR 10,000 Cr. in Logistics,
Warehousing & Retail sectors.
3. Generate employment to the tune of 25,000 new jobs.
4. Target increase in consumption by developing retail hubs in major towns of
the State.
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Definitions
Warehouse
A warehouse can be defined as any premise (including any protected place) which
includes a place for storage and/or accumulation of goods under controlled conditions and
also equipped for providing handling, transportation as well as value added services such
as sorting, grading, packaging etc. A warehouse may be characterized as Integrated Inland
Container Depots/Custom Bounded Areas, Warehouse for Agriculture Produces/Grain
Godowns, Warehouse other than agriculture produces. For the purpose of this policy, a
warehouse storage system may include but not be limited to the following :-
i. Warehousing complex with fixed facilities, moving units, rolling
stocks.
ii. Open and closed storage, ambient condition storage for transit
period.
iii. Fulfilment centers (in case of e-retailing), distribution centers
The warehouses to also earmark dedicated area for idle parking. In the warehousing
setup, upto 10% of the covered area may be utilized for ancillary activities such as
packaging, assembling, kitting etc.
Logistics Park
A Logistics park is defined as an agglomeration of a given set of logistics activities (core,
value added, ancillary as well as commercial) at a particular, well-defined location. Such
a park will be developed on a minimum area of 25 acres with a total investment of at least
25 Crore and will include but not be limited to the following activities: (a) Warehousing
storage system (b) Industrial plots and ready to move in sheds (c) Logistic services (d)
Infrastructure for value added and ancillary services, commercial activity (e) Sector
specific in-bound and out-bound logistic (f) Inter-modal transfer arrangements/facilities,
truck terminals. Logistics Park should be accessible, at minimum, by a 2- lane paved
road, with a minimum approach road of 60 ft.
A minimum of 85% of the total area to be used for providing logistics services and within
this 20% will be permitted for industrial activities and 10% of the remaining area shall be
allowed for residential purposes.
For commercial activities, up to 5% shall be allowed in Medium and Low potential zones
and up to 2% shall be allowed in Hyper & High potential zones.
Further, new norms for conversion and other charges including for State Infrastructure
Augmentation charges shall be fixed in consultation with Town and Country Planning
Department.
Integrated/Multi Modal Logistics Park (MMLP)
An Integrated/Multi Modal Logistics Park (MMLP) is defined as a multi-modal freight-
handling facility with a minimum area of 100 acres with a total investment of at least 100
Crore, comprising mechanized warehouses, specialized storage solutions such as cold
storage, facilities for mechanized material handling and inter-modal transfers container
terminals, bulk / break-bulk cargo terminals. Multimodal logistics parks are expected to
provide the following key services: Freight aggregation and distribution, Multimodal
freight transportation, ICD, Storage and Warehousing, Value added services etc.
MMLP’s developed under this policy mandate that the developer allows other logistics
operations to operate from the MMLP i.e. any player willing to pay terminal usage
charge and other additional charges specified by the operator shall be allowed to avail the
logistics services provided.
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MMLP, by definition is a logistics facility with access to more than one mode of
transport. This allows it to serve as a point of intermodal change and will help drive
higher usage of rail, coastal shipping, inland waterway and higher capacity trucks for
long haul. Integrated/ Multi Modal Logistics Park (MMLP) shall have the following
provision:
MMLP’s should be accessible, at minimum, by a 2- lane paved road, with a
minimum approach road of 60 ft.
MMLP’s should have access to a rail siding. The development of the rail
siding should be completed within three years of initiating the MMLP
development.
Further, new norms for conversion and other charges including for State
Infrastructure Augmentation charges shall be fixed in consultation with Town and
Country Planning Department.
*Across Warehouses, Logistics Park and MMLP, industrial activity shall be limited
to activities aligned to Logistics/Warehousing such as sorting, grading, packaging,
kitting, palletization, bagging etc.
FAR on different components of the Warehouse/Logistics Park/MMLP shall be
applicable as per the prevailing norms of Town and Country Planning Department.
Cold Chain Facility
A Cold Chain Facility can be developed with minimum investment of INR 15 crore and
minimum area of 20,000 sq. ft. The detailed guidelines in this regard may be referred in
Haryana Food Processing Policy 2018.
Retail Enterprise
Retail Enterprise is a ‘shop’ as defined in Section-2 (25) of Punjab Shops and
Commercial Establishments Act, 1958. For Retail, the policy will be applicable to
enterprises fulfilling any one of the criteria as specified below:
i. Retail enterprise with an annual turnover of INR 1 crore or more OR
ii. Retail enterprise employing 10 or more people on full time basis
Retail Hub
A Retail Hub is a group of retail and other commercial establishments that is planned,
developed and managed as a single property owned by single or more than one owner,
comprising retail units such as shops offering goods and services and including family
entertainment centers, hotels, offices/commercial complex, restaurants, pubs, gym,
auditorium for plays, big-box retail store, sports activity area, library, day care/crèche and
similar retail units, multiplex and common areas, where all retail activities including
selling to the end consumer will be permissible.
A retail hub shall be developed on a minimum area of 5 acres in agriculture zones in Low
and Medium potential zones.
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3. Eligibility
This policy will be valid for 5 years from the date of notification or till the time
any new policy/amendment is introduced by Government of Haryana, whichever
is later.
4. Industry Status
The state accords the status of “Industry” to the Logistics and Warehousing
Sector. The fiscal incentives specified under this policy shall only be applicable.
Section – A: Logistics and Warehousing
Industry overview
Logistics and Warehousing in Haryana
Haryana’s enjoys a locational advantage, characterized by its geographical confluence
with economic corridors (DMIC, AKIC, Eastern peripheral corridor) Seven Special
Economic Zones, investment regions and big ticket infrastructure projects with both, the
eastern and the western freight corridors and several industrial corridor passing through
the state. The state has over 60% of its area under Delhi-Mumbai Industrial Corridor
(DMIC) covering major districts such as Faridabad, Palwal, Rewari, Hisar, Sonepat,
Manesar, Gurugram and sizeable confluence of Amritsar-Kolkata Industrial Corridor
(AKIC); resulting in increasing demand for advanced logistics mainly container traffic,
bulk and break-bulk cargo. The Kundli- Manesar- Palwal expressway and the Integrated
Multi Modal Logistics Park at Bawal (spread over 1200 acres) will result in large scale
development of logistics and warehousing infrastructure. The 2 Km. stretch on both
sides of KMP expressway will be declared as an investment zone.
The proposed Faridabad-Palwal Industrial Area (Node No.3 under DMIC) is located
in close proximity of the western Dedicated Freight Corridor at Dadri as a result of
which setting up of logistic units in Gurugram-Faridabad belt which is contiguous to
Western Dedicated Freight Corridor (DFC) is expected in coming years. Another
upcoming economic corridor within the state is Delhi-Hisar-Sirsa which is expected to
connect the KMP expressway to Mumbai and provide a more seamless cross border
movement to Punjab. In addition, Haryana has network of 29 State Highways and
15 National Highways passing through the State.
Haryana boasts of well-connected quality network and transport infrastructure which offers
strong prospects for the development of multi-modal logistics infrastructure. As in 2016,
the state has 1710 km. of railway route and 39 km/1000 sq.km. of railway route density.
The lane kilometer density (national and state highways) stood at 100 km/000 sq. km; one
of the highest in the country. A direct rapid railway network is also being planned
between Delhi and Hisar. In terms of road network, 48% of state highways fall within the
primary network (national and state highways), again one of the highest amongst the
northern states.
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Currently, Haryana has a very prominent access to international airport in Delhi along
with an Integrated Aviation Hub coming up at Hisar. The proposed aviation hub is
expected to be developed over an area of over 3,000 acres with state of the art MRO
services.
Therefore, the State requires creation of efficient logistics network to leverage these
economic opportunities and boost trade competitiveness.
Existing Logistics and Warehouse Ecosystem- Haryana is one of the leading logistics hubs
in the country with a total of 9 inland container depots (ICDs), 3 container freight stations
and 8 private freight terminals. Overall, the state has around 33 functional logistics and
warehousing related units handling approx.10 lakh TEU (Twenty Foot Equivalent Unit)
of container traffic. Some of the major ICDs in the state are-
• Garhi Harsaru, Gurugram (critical for automobile and agro processing-
mainly rice exports) handles upto 2,60,000 TEUs per year. It is strategically
located to cover the industrial hubs in Haryana (Gurgaon, Manesar, Faridabad,
Ghaziabad, Hisar, Panipat, Sonepat, Rewari and Dharuhera).
• ICD Piyala, Faridabad handling around 1,50,000 TEUs of container traffic
and strategically located to serve the industrial hubs of Faridabad, Ballabhgarh
and Palwal. It is connected to the Kundli-Manesar- Palwal Expressway and the
Faridabad- Ghaziabad-Noida corridor.
With Haryana’s emergence as a preferred consolidated logistics hub on the lines
Mumbai and Bengaluru along with burgeoning export orientation and industrial sector
growth especially in consumer durables & FMCG segment as the cost for consumer
durables is set to halve (decrease by 25-30%) for fast-moving consumer goods (FMCG)
after the implementation of the Goods and Services Tax (GST). There is a need for
developing advanced sector focused logistics infrastructure for consumer durables &
FMCG as well as further galvanize the export oriented sectors mainly agro-products
(rice/basmati, automobiles, electric machinery, cotton, fiber and textiles. Additionally,
there are strong prospects for inland container depots (ICDs) in Haryana’s to serve as an
alternative to container inflow/outflow from the neighboring hilly states such as Himachal
Pradesh (given the high cost of transport users).
The state at present, is one of the leading exporters in the nation with the total value of
state exports valued at INR 89,006 Crores during the Year 2017-2018. Therefore in line
with its global orientation towards facilitating exports, the State Government endeavors to
provide the necessary support by way of creating the necessary land bank, technology
ecosystem and logistics facility. The state through its ambitious Haryana Enterprise
Promotion Policy (EPP) 2015, has accorded large focus to developing big ticket logistic
projects in the state, along with a special package of incentives under the Maha Nivesh
Yojana as well supporting the smaller logistic units as ancillaries. The Logistics,
Warehousing and Retail Policy for Haryana 2018 takes ahead the vision and mission of
Haryana’s EPP 2015 and provides incentives for developing supporting ecosystem for
logistics sector in Haryana.
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Further, the following support for Truckers Parks shall be provided by the State
Government:-
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11. Conclusion
To ensure effective implementation and monitoring, a “Policy Implementation
Committee - PIC” shall be formulated headed by Administrative Secretary of the
Department of Industries & Commerce. PIC shall comprise of members of
Director, Industries and Commerce, Director Department of T&CP, Managing
Director HSIIDC, Managing Director Haryana State Warehousing Corporation and
representatives of concerned Association (Logistics, Warehousing and Retail).
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56944—C.S.—H.G.P.,Chd.