Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Industry News

| More

Draft National Logistics Policy Should Incentivize Express Industry: EICI

Posted On: 2019-08-12 10:51:16


Express Industry Council of India (EICI), which represents leading express companies in the country, today said the government has overlooked express industry, especially air cargo segment, in the draft national logistics policy. EICI also said that air cargo delivery needs special focus to reduce logistics costs in the country.

"We laud the efforts in preparing the draft policy covering a broad spectrum of focus areas to drive the growth of Indian logistics sector. However, we note that the policy document does not focus on express industry and air cargo sectors, which are integral parts of the logistics network. The air express has also been overlooked in the multi modal mix even though air is an essential segment of the movement of goods," EICI Chief Operating Officer Mr. Vijay Kumar said.

He added that "in developing countries like India, an efficient air express infrastructure contribute directly to global competitiveness of the country by ensuring just in time deliveries and reduced clearance dwell time. Further, efficient express delivery industry acts as an economic catalyst by opening up new market opportunities, moving products and services with speed and efficiency".

The government had issued the draft national logistics policy early this year, aiming to reduce the logistics costs from 13-14% of GDP to 10% "in line with best-in-class global standards". The policy also seeks to optimize the current multi-modal mix, where road has a share of 60%, while railways account for 31% and waterways 9%, to bring the sector on par with international benchmarks (25-30% share of road, 50-55% share of railways, 20-25% share of waterways).

Aviation Turbine Fuel (ATF) is the single largest component of direct operating cost with a share of 40%. Excise duty and VAT charged by central and state governments, respectively, on ATF add another 30-35% cost. Making the matter worse, the GST regime disallows input credit on ATF, increasing the tax burden on express cargo airlines further.

"Such exorbitant costs severely affect the sustainability of express air cargo operations and excludes access into this reliable and speedy form of air transportation of items like perishables that would benefit both the producer and customer across the country and globally," Mr. Kumar said.

"The government should permit express cargo airlines to avail input credit of excise duty as was done before GST regime. ATF should be brought under GST and input credit on GST paid on ATF should be made available to express cargo airlines," he added. EICI represents both domestic and international express companies operating in India including Aramex, FedEx, Blue Dart, DHL, DTDC, First Flight, GATI, TNT and UPS.

EICI also suggested measures to streamline E-Way Bill system. "The onus of the EWB should shift from the transporter to the shipper as they have complete control on the content of the shipment. This will ensure that the right EWB is being generated and also impact the transit time positively as time bound delivery is a critical aspect in the express business industry."

"We also urge the government to introduce single window clearance for courier clearances to reduce EXIM dwell time. Skill development plans and training programs are required for the training of new roles such as last mile delivery associates, operations processing staff that work mainly with Express and Third party logistics (3PL) players, the government should focus on this aspect as well." Mr. Kumar said.

As per a Deloitte Report entitled 'Indian Express Industry - 2018 A multi-modal play in building the ecosystem', India's logistics sector is projected to be worth $215 billion by 2020-21. The industry's growth will be fuelled by the strides in manufacturing, retail, fast-moving consumer goods and e-commerce sectors. Development of logistics related infrastructure, like dedicated freight corridors, logistics parks, free trade warehousing zones and container freight stations, are expected to improve efficiency, the report added.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Reliance Securities launches new referral programme to provide enhanced digital experience to customers

RankMF Launches India's First Mutual fund Portfolio Sanitization Tool: SmartSwitch

Blue Ashva Capital announces initial close of SME focused India Fund

Convergent Finance LLP announces USD14.1 mn investment in Jyoti International Foods

Angel Broking records highest monthly client addition of 1Lakh +

Universal Sompo General Insurance Company Limited has announced the appointment of Sharad Mathur as its Managing Director & CEO

Sonalika Tractors Records 18.6% Overall Sales Growth in May'20

Upstox revamps its trading platform; introduces Pro Web 3.0

SATYA MicroCapital Ltd. gets MFI Grading uplift from ICRA

Indian Space Technology Startup VestaSpace Technology Receives USD 10 million Funding from US-based Next Capital LLC

ICAI Stands with Government to fight against COVID 19

Honda 2Wheelers India pledges support to its dealer family to maintain business continuity

Moneycontrol Pro reaches a new milestone - 1.5 lakh paying subscribers

Former Executive Director, RBI - Mrs. Surekha Marandi joins SATYA MicroCapital Limited as Independent Director

Arcil commits Rs. 1.5 Crore towards India's fight against COVID-19

Cognizant to acquire Lev to expand Digital Marketing expertise

Hon'ble Finance Minister reaches out to CAs for promoting Vivad se Vishwas scheme

SIAM numbers - Suman Chowdhury, President - Ratings at Acuité Ratings & Research Ltd

Sterlite Power Concludes Sale of Novo Estado

mastertrust Slashes its Trading Fees to Zero, on the MobileApp, for Millennial

CAMS FinServ receives RBI license for Account Aggregator service

Brookfield Properties bags four awards at the ET Now Global Real Estate Congress Awards 2020!

RXIL Digitizes its MSME Onboarding using Jocata GRID

Indian Exhibition of Air Conditioning Industry Draws International Attention

India Post Payments Bank Crosses Milestone of 2 Crore Customers

EFL revolutionises AC's by launching Health Conditioners

BankBazaar Looking to End FY20 at EBITDA Profitability Despite Tough Year for Fintech

Sapient Wealth Advisors organises its 11th annual conference in Pune

ICAI sign MoU with IIM Jammu

Venture Garage Conducts 5th and Final Leg of 'Find Your Investor' Programme in Chandigarh, Supported by Kotak Mahindra Bank

BRICS CCI announces Direct Tax Summit & Awards 2020 in association with Achromic Point

ETMONEY introduces the National Pension System (NPS) on its App

Anviti Insurance Brokers Expands Presence in India, Opens its 7th Office in Delhi NCR - Noida

Global shrimp demand and prices contract following the n-coronavirus pandemic: ICRA

ICAI 70th Annual Function

ETMONEY unveils India's first and only tax saving solution

Cashfree introduces 'Instant Settlements', makes online payments as attractive as cash

TrustLine Announces Successful Closing of Intrinsic Deep Alpha AIF - Category III Offering

Bharti AXA General Insurance Receives IRDAI Nod for Health and Motor Insurance Proposals under Sandbox Project

Ather Energy invites dealers to set up experience centers across India

Restriction on import of refined palm oil will safeguard the margins of domestic palm oil refiners while also improving their capacity utilisation: ICRA

Cognizant Named a Leader in SAP Services by Independent Research Firm

CarDekho becomes first auto fintech platform to process 100 cr of monthly used car loans

Super Surfaces raises half a million USD as Angel Funding

KARVY Group initiates corporate restructuring

ICRA Analysis: Hospital sector performance on the growth path after two years of subdued performance

ICRA maintains stable year-end outlook for Construction sector

ZestMoney's 0% EMI Launched on Myntra

Ministry of Railways revises tariff of standard meals on static units

ClearTax launches feature of Nil GST Return Filing for CAs and Businesses







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019