Uttar Pradesh Warehousing and Logistics Policy 2022: Comprehensive Guide to Incentives and Benefits

Introduction

The Uttar Pradesh Warehousing and Logistics Policy 2022 aims to transform the state into a logistics hub by enhancing infrastructure, reducing logistics costs, and attracting private investments. The policy focuses on developing an integrated logistics ecosystem to support the state's goal of becoming a $1 trillion economy.

Objectives

• Develop a robust transportation infrastructure network promoting intermodal connectivity.
• Upgrade and improve existing warehousing and logistics infrastructure.
• Promote integrated development of logistics services to reduce costs and improve efficiency.
• Attract private investments in setting up logistics facilities with forward and backward linkages.
• Enhance skill development and capacity building in the logistics sector.
• Establish smart logistics practices through the adoption of technology and sustainable methods.

Eligible Projects and Minimum Requirements

Incentives

Front-End Subsidies (Before Commercial Operations)

• Stamp Duty Exemption:
• 100% exemption for storage facilities in Bundelkhand and Purvanchal.
• 75% in Madhyanchal and Paschimanchal (excluding Gautam Budh Nagar and Ghaziabad).
• 50% in Gautam Budh Nagar and Ghaziabad.
• 100% exemption for dry ports, logistics parks, and truckers parks.
• Land Use Conversion and Development Charges:
• 75% exemption for all eligible projects.
• Ground Coverage:
• Up to 60% for storage facilities and dry ports.
• Overall ground coverage of 60% for logistics parks.

Back-End Subsidies (After Commercial Operations)

• Capital Subsidy:
• Storage facilities: 15% up to Rs5 crore anywhere in UP; up to Rs10 crore in designated logistics zones.
• Dry ports and logistics parks: 25% up to Rs25 crore anywhere in UP; up to Rs50 crore in designated logistics zones.
• Berthing terminals: 25% up to Rs15 crore (maximum of 6 terminals).
• Cargo terminals: 20% up to Rs15 crore.
• Other Incentives:
• Land provision on PPP basis for 35 years under BOOT model for cargo/berthing terminals.
• 100% electricity duty exemption for 10 years.
• Reimbursement of quality certification costs up to Rs5 lakh per project.
• 25% purchase subsidy for inland vessels up to Rs5 crore (maximum of 50 vessels).
• Skill development subsidy.

Additional Benefits

• Industry Status:
• Logistics units are granted industry status, allowing for industrial FAR and land rates.
• Fast-Track Land Allotment:
• Applicable for logistics parks with a minimum capital investment of Rs500 crore.
• Direct land allotment by the concerned Industrial Development Authority (IDA) in industrial areas.
• In case of multiple applications, allotment to the highest investor.
• Designated Logistics Zones:
• Strategic areas near key infrastructure projects like WDFC-EDFC, expressways, and Jewar Airport will be notified.
• Additional incentives proposed for investments in these zones.

Policy Duration

The Uttar Pradesh Warehousing and Logistics Policy 2022 is effective from December 23, 2022, and will remain in force for a period of 5 years or until a new policy is introduced.