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

Osgan Consultants

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

Project Type

Minimum Investment

Minimum Size

Logistics Parks

₹25 Crore

25 Acres

Truckers Parks

₹10 Crore

10 Acres

Warehousing Facilities

₹20 Crore

1 lakh sq. ft.

Silos

₹30 Crore

4 Acres

Cold Chain Facilities

₹15 Crore

20,000 sq. ft.

Container Freight Station (CFS)/ICD

₹50 Crore

10 Acres

Cargo Terminals (Type B)

₹20 Crore

10 Acres

Berthing Terminals

₹20 Crore

Capacity of 5,000 tons

Inland Vessels

As per capacity

Capacity of 500 tons

💰 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 ₹5 crore anywhere in UP; up to ₹10 crore in designated logistics zones.
    • Dry ports and logistics parks: 25% up to ₹25 crore anywhere in UP; up to ₹50 crore in designated logistics zones.
    • Berthing terminals: 25% up to ₹15 crore (maximum of 6 terminals).
    • Cargo terminals: 20% up to ₹15 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 ₹5 lakh per project.
    • 25% purchase subsidy for inland vessels up to ₹5 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 ₹500 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.

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