Gadkari says: Government focus on infra to cut down logistics cost
Union Minister Nitin Gadkari said, Government is working on boosting infrastructure, particularly ports, roads and waterways, to significantly reduce logistics cost that is “very high” in the country.
He made a pitch for port-led development which is “crucial” for higher economic growth. He said that “Our logistics cost is very high. It is 18%.
It is easy to take any material from Mumbai to Dubai or from Mumbai to London, but it is very difficult to take material from Mumbai to Delhi as it is costly and complicated. We want to give highest priority to that on how we can reduce this cost.”
Speaking at the Andhra Pradesh Investors Summit, the road, transport, highways and shipping minister hoped that the target 40 kilometer (km) of road construction per day will be achieved by next year.
“It was 2 km per day, last year, it was 18 km per day and by the end of this March, it will be 30 km per day. But our target was 40 km per day, and I am confident that next year, we will complete that target,” he said, adding that the government will complete 2 lakh km National Highway on time. About ports and shipping, Gadkari said contracts worth INR 1 lakh crore have been finalized to give a push to the sector.
“Most important for our development is port led development. We have Sagarmala as a big investment project.”
Last year, the three flagships Cochin Shipyard, Shipping Corporation of India and Dredging Corporation recorded profit of INR 6,000 crore and “for this year, we are expecting profit of about INR 7,000 crore and we are going to invest this profit“.
Tag Keyword: Logistics Cost , Andhra Pradesh Investors Summit , Road Construction , Government , Cochin Shipyard ,Shipping Corporation of India , Dredging Corporation