Importance of logistics sector for india
- Government
-EoDB- more investment - more taxes
- more job creation - Economy
- prerequisite for growth and development
- integration with global supply chain
- export competitiveness - Producer / supplier
- expand market — more profit
- forward and backward linkages - less cost of prodn
- agriculture - remunerative - Public
- connectivity
- reduced cost
Why logistics cost so high in india
Niti ayog - strategy for india @75
1. Poor infra, connectivity
2. Accessing finance
3. Poor warehousing, Unmechanised facilities
4. No level playing field of public and pvt
5 . Border complaince and document processing activities
Cultural aspect - mihir sharma in his book RESTART - city planning not done in big scale in India - indians accustomed to shortage and delays and looks down on anything that feels excessive or superfluity
National logistics policy 2022
Aims
- reduce logistics cost to 8-9%
- improve efficiency and thereby ranking of LPI
NLP
1. Integration of digital system ( IDS) - integrate data from several departments to smooth cargo movement
2. Unified logistics interface platform ( ULIP)- display all modes of transport available to facilitate cargo movement
3. ELOG - simplify rules for logistics business
4. System improvement group - regularly monitor all logistics projects and remove bottlenecks in a time bound manner
5. Focus on skilling and employment generation
6. E- handbook - to standardise warehouses of physical assets
7. Spel- sectoral plan for efficient logistics in line with pm gati Shakti to ensure interoperability and innovation in sectors
Importance of shipbuilding industry
- Naval capability - ex: Indigenous aircraft carriers
- Devp of heavy engg ( mother industry ) - coordination of steel, electronic equipment’s etc
- Boost to ancillary industry — INS Vikrant employed 500 msme and 12000 employees from ancillary industries
- Strengthen supply chain - containers and ships controlled by few
- Employment generation - multiplier of 6.4
- Reduce freight bills and forex out go
Strengthen ANB and India’s strategic autonomy
Challenges to build a shipbuilding industry in india
- Capital intensive and requires huge investment
- Long gestational period - tied up costs ex: ins Vikrant took 13 years to complete
- As of now india lags behind its global counterparts- high cost and tech deficit
- Overall capacity and infrastructure deficiency related to Indian shipyards and ports
- Skill gaps
Steps taken by min of shipping to promote ship building in india
- Infrastructure status
- Right of first refusal to Indian shipyards
- Shipbuilding financial assistance policy 2016- 2026
Issues with India’s ports
NITI AYOG - STRATEGY FOR NEW INDIA @75
- Inadequate depth to handle large vessels
- Transhipment ports - dubai, colombo, singapore
- Regulatory cholestrol- customs operations, inspections, scrutiny
- High pre berthing time because of lack of infra
- Poor rail, road connectivity - cargo evacuation
- Poor mechanisation and manual handling of critical process
Major port authorities act 2021
- Provide autonomy to major ports. Land Lord port model from existing service model . Ownership remains at the port Authority but infra leased to pvt
- Board of Major PORT AUTHORITY will replace the PORT TRUST ( including representative of states, govt nominee, employee representative)
- Commitee appointed by the board will fix reference rates ( replace TAMP)
- Adjudicatory board
- CSR for creating social infra
Issue
1. Centre state issues - regarding land use and town planning ( state laws will not apply here
2. States town plan might clash with MPA plan
3. Fear of corporatisation ( stigmatised capitalism )
4. Protests from local communities
Wf for India’s ports
Niti ayog - strategy for new india @75
- Opening up dredging market
- Expediate sagarmala- port modernisation, port connectivity, coastal economic zones, coastal community development
- Complete transhipment on time - vallarpadam, vizhinjam
- Enhance connectivity- multi modal port development
- Use of technology
Benefits of inland water ways
- Low cost - natural track, no construction cost. Also per litere petrol more tonnes per km in waterways
- Lower emissions
- Huge land required for other
- No displacement of people
- Industrial corridors along waterway- regional development
- tourism - cruise tourism ( ganga Vilas cruise ) , Kerala backwater - NW3
- Address the traffic congestion in roads , rail etc
Concerns regarding inland water ways
- Biodiversity - nw1 - affected echolocation of gangetic dolphin
- Constant inflow of silt - need constant dredging
- Rights of States ( jurisdictional issue) , local community ( change in water use )
- Climate change - drought vs flood.
- Infra - jetties, terminals, navigation channels
- shortage of night navigation infrastructure - Shortage of IWT VESSELS and MRO
- Lack of multimodal connectivity in india
Steps taken for inland water ways
- Jal marg vikas project along with world Bank
- Central road fund - includes waterways
- Launched roro- goghra-dahej project in Gujarat
- MARITIME VISION 2030- port expansion, improve port governance
Inland vessels act 2021
Bring all inland waterways and movement of vessels on them under a central regulatory regime- IWAI
Major causes of road accidents
- Infrastructural
- design and engineering- blind spots
- adequate signage
- poor maintainance - Behavioural
Lancet study - alcohol, low restraint systems like seatbelts, overspeeding - Automobiles
Safety standards, vehicle alteration, mechanical defects - Govt
Corruption, poor enforcement, ambulance service - Inclement weather
Challenges faced by India’s road sector
- Last mile connectivity
- Congestion in urban centers - tomtom study 2020
- Annul outlay for maintaince of highway is 40% of estimated requirement
- Road dseign and quality - recent Himachal rain, even new roads washed away
- WRS - india 3rd in road accidents
- Land acquisition cost
- WB report on presence of fraudulent and corrupt practices by indian contractors
Wf
- Ppp- stronger and flexible concessional agreements
- Road safety
- NIP
- ROLE of regulators - light touch regulation with maturity
Road reader prog of Bangalore
Rakesh Mohan commitee recommendations on roads
- Not in isolation but part of MMT
- ROAD user satisfaction surveys
- Continuous upgradation of technology in auto industry
- Private sector financing should remain confined to commercially viable and high traffic density stretches
Why operating ratio of Indian railways > 95%
- Rakesh mohan commitee - Underinvestment, misallocation of scarce resources, poor customer service, increasing debt
- Congested if capacity utilization >80%
- irrational cross subsidization passenger vs freight
- Safety- 48 train accidents in 2022-23
- 8th largest employer - high revenue expenditure
Should railways go for ppp
- Envisages 50 lakh crore by 2030. Govt alone not enough
- Technology - rolling stock, lhb coaches , station facilities etc
- Share of gross revenue and haulage charges
- Maintanence cost
- 13% customers do not get confirmed tickets during peak season
- pvt trains will be manufactured in India
- World class travel experience
No. India shouldn’t go for privatisation
- Artificially low passenger fare. Cannot breakeven
- Pvt reluctant to operate in certain routes
- Fixing responsibility in case of accidents
- vulnerable section - reservation in employment, seat reservation for pwd
- No independent regulator ( bibek debroy)
Case study of Singapore
Hyderabad metro model
expediate - rail dev authority
Bibek debroy - corporatization of core function
Rail accidents reason
- Infrastructure deficits - poor maintenance, aging, vandalism, natural disasters
Write RAJESH MOHAN COMMITTEE
- Error of railway staff caused 55% accidents b/w 17-18 and 21-22
( commission of railway safety)
Wrong signalling, miscommunication, over speeding, overlooking defects
- Signalling failure - technical glitches, power outages, human errors
- Unmanned level crossing
Steps taken by railway to reduce accidents
- Rashtriya rail sanrakshana kosh- for critical safety related work like track renewal
- Technology upgradation - kavach system , modified center buffer couplers etc
- LHB DESIGN coaches
- GPS based fog pass device
- Ultrasonic flaw detection to detect and remove faulty rails
Wf to reduce railway accidents
- Vinod RAI commitee
- Establishing an independent Railway Safety Authority with statutory
- Setting up a Railway Accident Investigation Board to conduct independent and impartial inquiries.
- Creating a separate Railway Infrastructure Company to own and maintain railway assets
- Introducing a performance-linked incentive scheme for railway employee - Establish a confidential incident reporting and analysis system - encourages lower level staff to report deviations in real time while maintaining confidentiality
Importance of freight corridors
- Delay in freight
- Congested network
- ~ 24 km / hr inspite of mission raftaar ( CAG report )
- Industrial corridors and logistics park
Reasons for India’s coal crisis
- Demand supply mismatch - 2001 to 2022 installed capacity of COAL BASED TPP increased by 300%
- Increased demand from non power sectors - cement, steel etc
- Outdated tech - rat hole mining
- Low qulaity- high ash content
- Lack of participation in auctions - coal not seen as energy of future
