Lucknow: Uttar Pradesh is seeking to attract large private investments in logistics infrastructure through its Uttar Pradesh Multi-Modal Logistics Park Policy, 2024.
Notified on December 18, 2024, the policy targets projects with a minimum investment of ₹1,000 crore and aims to develop large logistics hubs connecting at least two modes of transport.
What the Policy Aims to Build
The policy goes beyond conventional warehouses. A qualifying multi-modal logistics park can bring several freight and support services together at one location.
These may include:
- Intermodal freight terminals and warehouses
- Cold-storage and cargo yards
- Container stuffing and de-stuffing facilities
- Customs and bonded facilities
- Packaging, grading and labelling units
- Truck parking, repair and fuel facilities
- IT systems for cargo and logistics management
The parks may connect road and rail networks, airports or inland waterways depending on their location and project design.
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₹1,000 Crore Minimum Investment
The policy is designed for large-scale logistics projects.
An eligible project must involve a minimum investment of ₹1,000 crore.
This makes the framework different from the broader Uttar Pradesh Warehousing and Logistics Policy, 2022, which covers smaller logistics and storage projects.
Invest UP has been designated as the nodal agency for implementing the 2024 policy.
30% Land Subsidy Among Key Incentives
One of the major incentives is a front-end land subsidy of 30% of the allotment cost for eligible government land.
The land must be allotted or leased by an Industrial Development Authority or another eligible state government agency.
The policy also provides:
- Full stamp-duty exemption for eligible transactions, subject to conditions.
- Exemption from internal development charges for approved projects.
- Project-specific assistance subject to the applicable government orders and approvals.
Multi-Modal Connectivity Is Essential
Simply developing a large warehouse will not make a project eligible.
The proposed park must integrate at least two modes of freight transport.
Depending on its location, this could involve:
- Road + Rail: Highway or expressway connectivity combined with railway freight infrastructure.
- Road + Air: Connectivity with an airport or air-cargo facility.
- Road + Water: Access to an inland-waterway terminal.
The policy therefore seeks to create logistics hubs where cargo can move between different transport networks more efficiently.
Why Uttar Pradesh Needs Large Logistics Hubs
Uttar Pradesh’s integrated logistics park aims to streamline cargo movement by bringing storage, transport and handling services together, strengthening supply chains across manufacturing, agriculture, e-commerce and exports.
Greater Noida Project Moves Forward
Implementation of the 2024 policy has progressed, including a proposed 174.12-acre multi-modal logistics park in Greater Noida. However, it is not yet operational. Other projects like the Dadri Logistics Hub and Boraki Transport Hub should not be linked to the policy without official confirmation.
Invest UP to Lead Implementation
Invest UP will serve as the nodal agency for implementing the policy. Developers will generally need to submit proposals, secure eligible land and meet the ₹1,000-crore investment requirement, obtain necessary approvals, develop the park as per milestones, and begin commercial operations within the prescribed timeline. The process will involve coordination with departments handling finance, law, revenue, taxation, planning and energy.
Policy Brings Opportunities, But Challenges Remain
The ₹1,000-crore investment threshold makes the policy suitable mainly for large developers and consortiums. Park viability will depend on connectivity, land, approvals, cargo demand and long-term users. Public data has yet to confirm operational policy-specific parks, cargo volumes or incentives disbursed.
A Push Towards an Integrated Logistics Network
The Uttar Pradesh Multi-Modal Logistics Park Policy, 2024 forms part of the state’s wider infrastructure strategy involving expressways, freight corridors, industrial corridors, airports and inland waterways.
By encouraging large integrated logistics hubs, Uttar Pradesh is looking to strengthen the movement of goods from production centres to domestic and international markets.
The policy’s real impact will ultimately depend on how quickly eligible projects move from land allotment and approvals to construction and commercial operations.
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