Context:
Recently, a strategic Memorandum of Understanding (MoU) was signed between ‘Invest UP’ and Northern Railway, Lucknow Division of Indian Railways, towards strengthening the industrial and logistics ecosystem by the Government of Uttar Pradesh.
More on News:
- The MoU was signed by CEO of Invest UP and Senior Divisional Operations Manager, Northern Railway.
- The agreement allows investors to lease railway land at a concessional rate of just 1.5% of the prevailing industrial or circle rate for a duration of 35 years.
- This land will be used in the development of logistics and warehousing infrastructure, which will accelerate multimodal connectivity across the state.
- This MoU is in line with the ‘UP Warehousing and Logistics Policy, 2022’, which provides financial incentive schemes such as stamp duty exemption, concession in land use conversion, capital subsidy and electricity duty exemption to eligible projects with a minimum investment of ₹20 crore.
- Also, implementation strategies such as integration of land data on the ‘PM Gati Shakti’ portal are also being considered to attract investors through public-private partnership (PPP).
- Uttar Pradesh, with its over 16,000 km long railway network, is playing a leading role in the development of logistics and industrial parks. The major projects include the Multi-Modal Logistics Hub at Dadri and the country’s first ‘Freight Village’ in Varanasi.
- Additionally, the state is also a leader in cold storage infrastructure, carrying about 40% of India’s total cold storage capacity. This achievement strengthens agricultural production, food processing and supply chain.
- Logistics hub in Yamuna Expressway Industrial Development Authority (YEIDA) area, cargo complex near Jewar airport, and cluster-based developments like Toy Park, Apparel Park, Film City and Medical Device Park are the key developments.
Additionally, a six-node Defence Industrial Corridor and ‘National Industrial Manufacturing Zones’ (NIMZ) are being developed in Jhansi and Auraiya.