New Delhi, Nov 20 (IANS) The Indian logistics sector has been granted infrastructure status to help it access loans on easier terms as well as encourage manufacturing and job creation in the country, the government said on Monday.
"This will in turn be instrumental in improving country's GDP," a Finance Ministry release said here.
"The logistics cost in India is very high compared to developed countries," it said.
"'Logistics Infrastructure' is included in the Harmonized Master List of Infrastructure Sub-sectors by insertion of a new item in the renamed category of 'Transport and Logistics', with a footnote stating that it means and includes Multi-modal Logistics Park comprising Inland Container Depot with minimum investment of Rs 50 crore and minimum area of 10 acre.
"Cold chain facility with minimum investment of Rs 15 crore and minimum area of 20,000 sq.ft, and/or warehousing facility with investment of minimum Rs 25 crore and minimum area of 1 lakh sq.ft," it added.
Grant of infrastructure status would enable the sector to avail infrastructure lending at easier terms with enhanced limits, access to larger amounts of funds as External Commercial Borrowings as well as access to longer tenor funds from insurance companies and pension funds, the ministry said.
The logistics sector would also be eligible to borrow from the India Infrastructure Financing Company (IIFC), it added.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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