Government considers survey to gauge business logistics costs
WAREHOUSING & LOGISTICS

Government considers survey to gauge business logistics costs

The government is likely to launch a novel survey aimed at obtaining comprehensive and timely assessments of the expenses businesses incur for logistics.

The Department for Promotion of Industry and Internal Trade (DPIIT) reportedly intends to commission the National Council of Applied Economic Research (NCAER) to carry out a primary survey, evaluating patterns of cargo movement and the associated logistics costs for each aspect involved.

In the previous year, the think tank had approximated India's logistics costs for 2021-22 at 7.8-8.9% of the GDP, relying on secondary data. An unnamed official expressed intentions to conduct a new assessment with NCAER, merging feedback and original surveys, as the previous estimation was solely based on secondary data.

The official mentioned that discussions are underway for a memorandum of understanding between the department and the council for this purpose. The collection of detailed data concerning origin-destination pairs, commodities, and geographical locations is deemed crucial for precise estimations. Additionally, efforts are being made to elevate India's ranking in the World Bank Logistics Performance Index from 38 in 2023 to below 25.

The government's objective is to devise a methodology to fulfill dual goals of timely and reliable measurements of logistic costs, along with strategies to alleviate such expenses by eliminating obstacles.

The survey aims to illuminate the logistics cost per tonne per kilometre on various considered routes and disparities in logistics costs across routes, transportation modes, products, cargo types, and service operations.

Discussions are underway regarding origin-destination route surveys of selected products to gather data on relevant transportation and storage costs, administrative hurdles at customs, warehouses, freight and forwarding agencies, and ports, as disclosed by informed sources.

The government is likely to launch a novel survey aimed at obtaining comprehensive and timely assessments of the expenses businesses incur for logistics. The Department for Promotion of Industry and Internal Trade (DPIIT) reportedly intends to commission the National Council of Applied Economic Research (NCAER) to carry out a primary survey, evaluating patterns of cargo movement and the associated logistics costs for each aspect involved. In the previous year, the think tank had approximated India's logistics costs for 2021-22 at 7.8-8.9% of the GDP, relying on secondary data. An unnamed official expressed intentions to conduct a new assessment with NCAER, merging feedback and original surveys, as the previous estimation was solely based on secondary data. The official mentioned that discussions are underway for a memorandum of understanding between the department and the council for this purpose. The collection of detailed data concerning origin-destination pairs, commodities, and geographical locations is deemed crucial for precise estimations. Additionally, efforts are being made to elevate India's ranking in the World Bank Logistics Performance Index from 38 in 2023 to below 25. The government's objective is to devise a methodology to fulfill dual goals of timely and reliable measurements of logistic costs, along with strategies to alleviate such expenses by eliminating obstacles. The survey aims to illuminate the logistics cost per tonne per kilometre on various considered routes and disparities in logistics costs across routes, transportation modes, products, cargo types, and service operations. Discussions are underway regarding origin-destination route surveys of selected products to gather data on relevant transportation and storage costs, administrative hurdles at customs, warehouses, freight and forwarding agencies, and ports, as disclosed by informed sources.

Next Story
Infrastructure Energy

GAIL to Set Up Bengaluru CBG Plant Under New Concession Pact

GAIL (India) Limited has signed a 20-year concession agreement with the Bengaluru City Municipal Corporation (BBMP) to set up a compressed biogas (CBG) plant in the city. The project, expected to produce around 10 tonnes of CBG daily, will utilise municipal solid waste as feedstock, contributing to clean energy generation and efficient waste management. The CBG produced will be used in GAIL’s City Gas Distribution network to promote cleaner fuel usage. The initiative aligns with the government’s Sustainable Alternative Towards Affordable Transportation (SATAT) scheme and GAIL’s broader ..

Next Story
Infrastructure Energy

Uttarakhand HC Lifts 31-Year Ban on ONGC’s Contractual Hiring

The Uttarakhand High Court has lifted a 31-year-old ban on the Oil and Natural Gas Corporation (ONGC) from hiring contractual workers, a restriction imposed in 1993. The decision enables ONGC’s Dehradun establishment to employ personnel on a contractual basis to meet operational requirements. The long-standing prohibition had limited ONGC’s ability to fill vacancies in its technical and administrative departments, often leading to project delays and higher dependence on outsourcing. With the court’s directive, the public sector enterprise can now proceed with temporary recruitments whil..

Next Story
Infrastructure Energy

JSW Energy’s Utkal Unit Bags 400 MW, 25-Year Power Supply Deal

JSW Energy Limited announced that its subsidiary, JSW Energy (Utkal) Limited, has secured a Letter of Award (LoA) from Karnataka’s Power Company of Karnataka Limited (PCKL) for the supply of 400 MW of electricity for 25 years. The agreement is part of a competitive bidding process for long-term procurement of power to meet the state’s growing energy demand. The 400 MW capacity will be supplied from JSW Energy’s upcoming thermal power project in Odisha. This development strengthens JSW Energy’s presence in the southern market and aligns with its strategy to enhance long-term contracte..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?