Preface

Jammu & Kashmir is a beautiful place in the northern part of India and is one of the country’s most popular travel destinations. It covers an area of 42,241 sq km (16,309 sq mi) and had a population of 12,267,013 as per the 2011 census. The union territory has two capitals – Jammu is the winter capital, and Srinagar is the summer capital. The region is mostly covered with mountains, valleys, and lakes.

There are many valleys in Jammu & Kashmir, including the Kashmir Valley, Tawi Valley, Chenab Valley, Poonch Valley, Sind Valley, and Lidder Valley. The Kashmir Valley is the largest, covering an area of 15,948 sq km. The Himalayas separate this valley from the Tibetan plateau, while the Pir Panjal range surrounds it from the west and south, dividing it from the Punjab Plain. The valley is about 1,850 meters (6,070 feet) above sea level. Some of the major rivers in the Jammu region are the Chenab, Tawi, and Ravi.

National Logistic Policy

Logistics efficiency depends on three key factors: infrastructure, services (such as digital systems, processes, and regulations), and human resources. To improve logistics in India, the PM Gati Shakti National Master Plan (NMP) was launched. It aims to create better multimodal connectivity for economic zones by integrating various infrastructure projects. This will help in reducing logistics costs and ensuring smooth movement of goods and people.

While the PM Gati Shakti plan focuses on building better infrastructure, the National Logistics Policy works on improving services and human resources. This policy provides a complete roadmap for strengthening the entire logistics sector.

Key Points of National Logistic Policy

The policy will be carried out through a Comprehensive Logistics Action Plan (CLAP), which includes several important steps:

1. Integration of Digital Systems (IDS):
   • This system will connect 30 different departments, such as railways, road transport, customs, aviation, foreign trade, and commerce.
   • By integrating data, it will help in finding the shortest and most efficient routes for movement of goods.
2. Unified Logistics Interface Platform (ULIP):
   • This platform will monitor cargo movement to ensure smooth transportation.
3. Ease of Logistics (E-logS):
   • It aims to simplify rules and regulations for businesses to make logistics easier.
4. Service Improvement Group (SIG):
   • This group will monitor logistics projects and help in removing obstacles.
5. Empowered Group of Secretaries (EGoS):
   • This high-level group will review and oversee the policy’s implementation.

Main Focus Areas of the National Logistics Policy

1. Integrated Digital Logistics Systems
   • A unified digital system will be developed to connect different logistics data sources.
   • This will improve efficiency and help stakeholders in planning better.
2. Standardization and Quality Benchmarking
   • The goal is to make logistics more organized and efficient by standardizing:
     • Transportation infrastructure (roads, rail, ports, etc.)
     • Warehousing and storage facilities
     • Packaging and cold storage systems
3. Logistics Human Resource Development
   • A national strategy will be created to improve skills and training in the logistics sector.
   • Different ministries will develop action plans to enhance their workforce.
4. State-Level Engagement
   • The central government will help states and cities develop their own logistics plans.
   • A system will be set up to monitor and rank states based on their logistics performance.
5. Improving Export-Import (EXIM) Logistics
   • The policy will work on reducing delays and improving connectivity for international trade.
   • This will help India become more competitive in global markets.
6. Better Regulations for Logistics Services
   • The government will work on simplifying rules and processes in logistics.
   • The aim is to reduce paperwork, unify regulations, and improve coordination across different sectors.
7. Sector-Specific Plans for Logistics Efficiency
   • Plans will be developed for each industry (such as agriculture, manufacturing, retail, etc.) to improve logistics.
   • The focus will be on better infrastructure, digital systems, and workforce development.
8. Developing Logistics Parks
   • Logistics parks (such as multi-modal logistics parks, cargo terminals, and freight stations) will be developed to improve supply chain efficiency.
   • The government will:
     • Create guidelines to attract private investment in logistics parks.
     • Use PM Gati Shakti mapping to plan their locations for better connectivity.

Implementation and Monitoring

• A high-level committee (EGoS) will monitor and review the progress of the policy.
• A Service Improvement Group (SIG) will help in solving any problems faced by users.

Initiative by the Government of India

1. PM Gati Shakti National Master Plan (NMP)

• The PM Gati Shakti National Master Plan is a major step by the Government of India to improve infrastructure and logistics across the country. It is a national multi-modal connectivity plan that aims to bring together various ministries—like railways, roads, shipping, aviation, and others—to plan and carry out infrastructure projects in a coordinated and integrated way.
• This plan covers all key economic zones and includes the infrastructure needed to support them. The main goal is to create a unified platform that connects all modes of transportation, such as roadways, railways, airways, and waterways, and helps both central and state governments to fill gaps in the movement of people, goods, and services.

2. Mandatory Data Layers on the PM Gati Shakti Portal

• To ensure smooth coordination and planning across the country, each state and union territory (UT) is required to upload certain essential data layers to the PM Gati Shakti portal. These data layers help in aligning local infrastructure development with the national vision of holistic growth.
• These mandatory layers typically include:
  1. Road Infrastructure: National highways, state highways, district roads, rural roads, and industrial corridors.
  2. Rail Network: Existing rail lines, proposed rail projects, stations, and freight terminals.
  3. Air Connectivity: Airports, airstrips, and proposed aviation infrastructure.
  4. Waterways and Ports: Inland waterways, major and minor ports, and jetties.
  5. Power and Energy Infrastructure: Power plants, substations, transmission lines, and renewable energy sites.
  6. Telecommunication Infrastructure: Mobile towers, fiber optics, and internet connectivity grids.
  7. Logistics Infrastructure: Warehouses, cold storage facilities, logistics parks, and transport hubs.
  8. Industrial Infrastructure: Special Economic Zones (SEZs), industrial estates, and manufacturing clusters.
  9. Social Infrastructure: Schools, hospitals, and urban development zones.
  10. Utility Services: Water pipelines, gas pipelines, and sewage systems.

Apart from above mandatory layers, additional layers identified by the UT are:

32. Government Schools
33. Health Institutions

The list is evolving and shall be updated as per the requirement. Various sub layers under each mandatory layers shall be identified and uploaded on Gati Shakti portal

LEADS (Logistics Ease Across Different States):

The “Logistics Ease Across Different States (LEADS)” report has become a key tool for assessing the logistics performance of States and Union Territories (UTs) in India. It helps governments understand the effectiveness of their logistics-related policies and programs by providing both performance data and stakeholder feedback. Acting as a litmus test, the report bridges the gap between perception and actual outcomes, offering valuable insights into the logistics ecosystem at the ground level.

The LEADS 2022 report specifically aims to analyse the logistics environment at the State and UT level, focusing on infrastructure, policy framework, and the regulatory environment. It also offers a roadmap for improvement, along with a set of recommended reforms and best practices adopted by other states and UTs to encourage knowledge sharing and adoption.

In this report, Jammu & Kashmir has been categorized as an “Aspirer” within the UT cluster. The UT performed above average in terms of logistics infrastructure quality, including roads, railways, terminals, and warehousing. It also scored well on the reliability of logistics services, indicating dependable operations such as delivery times and service tracking. However, certain challenges remain. The cost of road freight and terminal services is perceived to be high, mirroring a trend seen across many UTs. Moreover, Jammu & Kashmir received below-average ratings in all aspects of the operating and regulatory environment, suggesting a need for streamlined regulations, better departmental coordination, and a more business-friendly logistics system. With focused improvements in these areas, the UT has the potential to significantly strengthen its logistics sector and contribute more effectively to economic development and trade facilitation.

Jammu & Kashmir – brief logistic profile

Note: LEADS Report 2022 (Ministry of Industries and Commerce – DPIIT)

Focus Areas to Improve the Logistics Sector

To boost logistics efficiency and connectivity across the country, the Government of India has launched several key initiatives. These projects aim to create a robust multimodal transport network, reduce logistics costs, and promote sustainable development—especially in remote and hilly regions like Jammu & Kashmir.

1. Bharatmala Pariyojana

The Bharatmala Project is a major highway development initiative aimed at improving freight movement across India. Under this project, about 26,000 kilometers of roads will be constructed through 50 new economic corridors, connecting 550 districts nationwide. The goal is to remove congestion on existing routes, enhance connectivity, and improve logistics efficiency. It also includes the development of Multi-Modal Logistics Parks at strategic locations to cut down freight costs and promote faster goods movement across regions.

2. Parvatmala

The Parvatmala project focuses on developing ropeway connectivity in hilly and mountainous regions. It is designed not only to promote tourism but also to provide a safe, efficient, and eco-friendly alternative mode of transport, especially in environmentally sensitive areas. The Jammu & Kashmir government has signed an MoU with National Highways Logistics Management Ltd (NHLML) for the development of ropeway projects in the region. The Ministry of Road Transport and Highways is expected to approve new ropeway projects for J&K this year, with work on two ropeway projects anticipated to begin during the current financial year.

3. Sagarmala

The Sagarmala project aims to utilize India’s vast coastline and inland waterways to improve logistics and reduce the over-reliance on road transport. By developing coastal and inland water transport, the project seeks to make freight movement more efficient and sustainable. This initiative will help diversify India’s transport network and strengthen the logistics ecosystem by promoting low-cost, eco-friendly, and efficient transportation modes.

Together, these projects—Bharatmala, Parvatmala, and Sagarmala—represent a comprehensive strategy by the Government of India to enhance national connectivity, cut logistics costs, and promote inclusive development, especially in states and UTs like Jammu & Kashmir.

Logistics – India Perspective

The logistics sector in India plays a crucial role in the country’s economy, currently valued at around USD 150 billion and contributing approximately 14.4% to India’s GDP. Several factors have contributed to the sector’s rapid growth, including the relaxation of FDI norms, the implementation of GST, the rise of e-commerce, and various government initiatives such as Gati Shakti, Sagarmala, and Make in India. With continued policy support and growing demand, the logistics industry was projected to reach USD 200 billion by the end of 2022.

Despite its size, the sector is largely unorganized, with about 99% of logistics activities being carried out by small and fragmented players—like truck owners with fewer than five vehicles, small warehouse operators, customs brokers, and local freight forwarders. The organized sector accounts for just over 1% of the total logistics market, roughly USD 1.5 billion in value.

However, the Indian logistics industry is undergoing a transformation. If the logistics cost—currently around 14% of GDP—can be reduced to 9%, which is the level seen in developed countries like the United States, India stands to save approximately USD 50 billion. These savings would make Indian products more competitive globally, enhance export potential, and boost the overall economy. Additionally, growth in the logistics sector would improve service delivery, increase customer satisfaction, and create new employment opportunities across various related industries.

Logistics Overview – Jammu & Kashmir

The Government of Jammu and Kashmir has been actively working to accelerate infrastructure and logistics development in the Union Territory (UT). Recognizing the critical role of connectivity in economic growth, significant investments and policy focus have been placed on improving road, rail, and air transportation networks.

Road Connectivity

-Until 2018, Jammu & Kashmir saw the construction of about 1,500 to 1,600 kilometers of roads annually. This pace has since more than doubled to 3,200 kilometers per year, significantly enhancing rural connectivity under the aim of “road to every village”. The opening of the Qazigund-Banihal tunnel has reduced the travel time between Srinagar and Jammu from 10 hours to just 5 hours, improving accessibility and movement of goods and people.

Rail Projects

Efforts are underway to connect Kashmir to the rest of the country via rail by next year. Additionally, Elevated Light Metro Rail projects in Jammu and Srinagar were planned for launch during 2022–23, with an expected completion timeline by 2026. These developments aim to reduce traffic congestion and streamline urban transport.

Air Connectivity

The UT has also made strides in air travel, with international flights launched between Srinagar and Sharjah. New airport terminals are being constructed in both Jammu and Srinagar, and cargo facilities have been established at these airports to support farmers and businesses by easing the movement of goods.

Major Infrastructure Projects

Multiple mega highway and tunnel projects are currently underway, including:

• The Srinagar-Jammu National Highway, set to be completed in the next 2–3 years.
• The Zojila Tunnel on the Srinagar-Leh road is under construction.
• The Delhi-Amritsar-Katra Expressway, which will reduce travel time from Delhi to Jammu to just 6 hours.

Despite this progress, logistics costs in J&K remain 10–15% higher than the national average, mainly due to challenging geography, inadequate logistics facilitation, and limited roadside infrastructure. Over 60% of the region is mountainous, making goods movement difficult and more expensive, especially during harsh weather conditions.

Logistics Performance

According to the LEADS report, J&K has been classified as an “Aspirer” within the UT cluster. It has performed above average in areas such as infrastructure quality (roads, rail, terminals, warehouses) and reliability of logistics services. However, challenges remain in terms of the high cost of road freight and terminal services, which continue to hinder logistics efficiency.

Government Initiatives and Achievements

• J&K ranked 3rd nationally in the Pradhan Mantri Grameen Sadak Yojana (PMGSY) in 2021–22, a major leap from 12th place in 2018–19.
• Plans are in place to upgrade key routes by 2025, including:
  • Srinagar-Uri-LOC Road
  • Double-laning of Srinagar-Leh Road via Kargil
  • Uri-Kaman Post (LOC) Road
• Semi ring roads are being constructed in both Jammu (₹1,400 Cr) and Srinagar (₹1,860 Cr).
• As part of the “My Town My Pride” initiative, a traffic decongestion plan is being implemented in Srinagar and Jammu, involving bypass roads, flyovers, and road widening.
• Over the past five years, 16,861 kilometers of roads have been macadamized, and 582 bridges have been completed at a cost of ₹758.86 crore.

These initiatives reflect the UT’s commitment to building a strong logistics network, but sustained focus on affordability, coordination, and integration is needed to fully unlock Jammu & Kashmir’s logistics potential.

Vision

“To drive economic growth and trade competitiveness of Jammu and Kashmir through a truly integrated, seamless, efficient, reliable and cost-effective logistics network, leveraging best in class technology, processes and skilled manpower.”

Jammu and Kashmir- 2030 Vision (Road and Connectivity)

Strategy to achieve Vision-2030 for roads and connectivity

6.2.1. Increase in Distance Covered by Freight Vehicles

The goal is to double the daily distance freight trucks travel—from 250 km to 500 km—by making movement smoother and faster. This can be done by:

• GPS-based toll collection to charge tolls based on distance and avoid delays at toll booths.
• Flexible toll pricing, which changes based on traffic congestion and time of day.
• Digital approvals at state borders and customs checkpoints to reduce paperwork and waiting time.

6.2.2. Integrated Mobility Solutions

To make freight and passenger transport seamless, the following steps are planned:

• Sharing of land among transport ministries (Roads, Railways, Aviation, Ports, etc.) to develop common infrastructure like multi-modal hubs.
• Mobility cards linked to bank accounts, usable across various transport modes like buses, trains, and metros.
• One-stop digital platforms for planning and booking transport across different modes (like road, rail, and air).

6.2.3. Smart Transportation Systems

Use of modern technology to manage traffic and improve safety:

• Advanced traffic systems that monitor vehicle speed, congestion, and weather conditions.
• AI-based systems to guide traffic in real-time, manage lanes during incidents, and control tunnels more efficiently.

6.2.4. Electronic Infrastructure Along Highways

• Laying down optical fiber cables and utility lines (for power and other services) along highways to support smart transport solutions.

6.2.5. National Centres for Skill and Technology Development

Set up centers to train people and improve policies in highway design and management, using:

• Big Data, AI, and Machine Learning to plan safer and more efficient roads.
• Crash modeling to improve road safety.
• Predictive maintenance tools to check road and bridge health using automated systems and data analysis.

Mission

1. Provide Timely and Cost-Effective Services: Ensure logistics services are delivered quickly, efficiently, and at a fair cost, so users get the best value for their money.
2. Adopt Best Practices and New Technologies: Regularly review how services are delivered and make improvements by using the best industry practices and the latest technology, while staying competitive.
3. Focus on Environment and Safety: Always aim to reduce environmental impact and maintain a safe and healthy work environment for everyone involved in logistics.
4. Encourage Teamwork and Strong Communication: Build a culture centered on teamwork and customer satisfaction by keeping open and effective communication between logistics stakeholders, customers, and government bodies.
5. Enhance Accessibility and Connectivity: Keep working to improve logistics across the UT—better roads, better management, and smoother transport—because strong logistics are key to development and security goals.
6. Stay Updated with Continuous Learning: Keep up with new technologies, management methods, and operations in logistics as an ongoing learning process.

Objective

1. Cut Logistics Costs by Half: Aim to reduce the overall logistics cost by at least 50% within the next five years, making movement of goods more affordable and efficient.
2. Identify and Resolve Bottlenecks: Find the main issues that are slowing down logistics processes in the UT and take steps to remove these barriers for smoother operations.
3. Boost Connectivity Across All Modes: Explore ways to improve road, air, and water transport wherever practical. Focus on building strong logistics infrastructure like logistics parks, transport hubs, warehouses, and cold storage facilities.
4. Enhance Overall Logistics Performance: Work on improving key areas such as:
   1. Quality of infrastructure
   2. Service reliability
   3. Simplification of rules and regulations
   4. Competitive pricing
   5. On-time delivery
   6. Safety and security of goods
   7. Easy tracking of shipments
5. Adopt Smart Technology Solutions: Use Information Technology to make logistics processes faster, more responsive, and user-friendly—helping both businesses and government systems become more efficient.

Policy Strategies

9.1. Extension of AKIC (Amritsar Kolkata Industrial Corridor) to Jammu

The Government of India is undertaking the development of multiple industrial corridor projects under the National Industrial Corridor Programme, aimed at fostering futuristic industrial cities. These corridors are expected to generate employment, enhance investment, and promote economic growth, thereby contributing to the overall socio-economic development of the country.

In alignment with this, the Government of India plans to extend the Amritsar Kolkata Industrial Corridor (AKIC) to Jammu. The UT Government shall declare the existing Amritsar-Jammu highway alignment as a dedicated freight corridor and identify at least one Mega Industrial Zone to serve as an Investment Node along this corridor.

Objective:
To create state-of-the-art, world-class infrastructure that boosts local commerce, enhances investment opportunities, generates employment, and contributes to sustainable development in the region.

9.2. Simplified and Responsive Institutional Mechanism for Logistics Growth

To support the rapid and sustainable growth of logistics in the UT, a proactive institutional framework will be established to facilitate coordination and timely interventions. This will include:

• Mapping of logistics infrastructure across the UT to identify gaps and areas for development.
• Identifying capacity and operational bottlenecks in existing facilities and evaluating the proposed road and rail developments at both UT and national levels.
• Assessing future requirements of logistics infrastructure, including railways, airports, and warehousing.
• Integrating MSME-focused incentives under the J&K Industrial Investment Policy 2021–30 and other relevant UT-level policies to support local enterprises in logistics.

Action By:
Industries & Commerce, Transport Department, Aviation, HUDD, Planning Department, PWD, Revenue Department, Finance Department, Law Department, NHAI, Railways, Agriculture Production Department, PDD.

9.3. Development and Strengthening of Logistics Infrastructure

The policy aims to develop new and strengthen existing logistics infrastructure, including:

• Warehouses
• Inland Container Depots (ICDs)
• Cold storage facilities
• Rail-road connectivity from industrial clusters and estates

A special focus will be placed on improving utilization of existing logistics infrastructure under private and government control. Facilities will be evaluated based on performance parameters and revamped through stakeholder consultations.

Action By:
Industries & Commerce, Transport Department, Aviation, HUDD, Planning Department, PWD, Revenue Department, Finance Department, NHAI, Railways, Agriculture Production Department, PDD.

9.4. Promotion of Green and Innovative Logistics Practices

To foster eco-friendly and competitive logistics infrastructure, the UT Government will promote:

1. Green Logistics Initiatives, including:
   • Use of electric and hybrid vehicles in logistics parks
   • Adoption of renewable energy sources
   • Efficient waste management, recycling, and use of biodegradable materials
   • Promotion of carbon emission reduction practices
2. Smart Systems for cargo movement at checkpoints, including the establishment of Green Channels for vehicles carrying EXIM and defence cargo.
3. Development of resilient infrastructure such as:
   • Green expressways and national highways
   • Integration of solar power generation, mandatory tree cover, and rainwater harvesting

Action By:
Industries & Commerce, Pollution Control Board, Research Institutes, Transport Department, HUDD, Planning Department, PWD, Finance Department, Railways, NHAI.

9.5. Promotion of Private Investments in Logistics Infrastructure

The UT Government will encourage Public-Private Partnerships (PPP) for the creation of modern logistics infrastructure, with a focus on forward and backward linkages. Key focus areas include:

1. Storage and Handling Facilities at strategic nodes, especially in key sectors such as:

• Pharmaceuticals
• Agriculture
• Dairy
• E-commerce

1. Air Freight Stations and Cargo Complexes

• Detailed assessment of cargo potential and infrastructure constraints
• Planning of air cargo terminals at high-demand locations

iii. E-commerce Infrastructure Development

• Establishment of e-commerce hubs in high-demand zones and peri-urban locations to minimize city congestion

1. Truck Terminals and Driver Amenities

• Construction of truck terminals, driver rest areas, and parking facilities near expressways, industrial parks, and cargo-dense zones

Action By:
Industries & Commerce, Aviation, Transport Department, HUDD, Revenue Department, Finance Department, Agriculture Production Department, PDD.

9.6. Fiscal and Non-Fiscal Incentives to Promote Technology and Innovation in Logistics

The Government of J&K will extend fiscal and non-fiscal incentives to logistics companies to encourage technology adoption and innovation, aimed at enhancing sector efficiency and competitiveness.

Key Focus Areas:

• Robotics and Automation: For improved material handling, cargo movement, and reducing congestion at logistics facilities.
• Blockchain Systems: For secure transaction validation and streamlined documentation exchange.
• Digital Twin Technology: To simulate logistics operations and infrastructure, identify inefficiencies, and guide risk-free planning.
• Artificial Intelligence (AI) and Augmented Intelligence: For demand forecasting, route and operations planning, reducing human error, costs, and emissions.

In addition, the policy will:

• Promote technical patent registrations by startups, tech providers, and businesses in the logistics domain.
• Institute annual awards to recognize best technology and innovation practices in logistics.

Action By:
Industries & Commerce, Aviation, Information Technology Department, Transport Department, HUDD, Finance Department, Law Department.

9.7. Handholding Support to Existing and New Logistics Operators (Ease of Doing Logistics)

To further its standing in Ease of Doing Business, the UT Government will streamline logistics operations by simplifying and digitizing procedures.

Initiatives:

• Reduction of procedural formalities by re-engineering and digitizing logistics-related approvals.
• Strengthening of the Single Window System for:
  • Online application submission
  • Payment processing
  • Real-time tracking and approvals
• Enforcement of fixed timelines under:
  • J&K Single Window (Industrial Investments and Business Facilitation) Act, 2018
  • J&K Public Service Guarantee Act, 2011

Action By:
Industries & Commerce Department, Transport Department, All Line Departments.

9.8. Coordination with National and Global Agencies for Logistics Promotion

The UT Government aims to foster domestic and international partnerships to strengthen logistics and export infrastructure.

Key Actions:

• Facilitate access to export markets and collaborate with foreign trade centres in embassy offices.
• Leverage central government schemes such as:
  • Trade Infrastructure for Export Scheme (TIES)
  • Micro & Small Enterprises Cluster Development Programme (MSE-CDP)
• Collaborate with key national agencies such as:
  • FIEO, IIFT, EEPC, SEPC, ECGC, Tea Board
• Facilitate the establishment of export council camp offices within the UT.

Action By:
Industries & Commerce, Aviation, IT Department, Transport Department, HUDD, Finance Department, NHAI, Railways, PWD.

9.9. Development and Implementation of a Comprehensive Logistics Plan for J&K

The UT will develop and implement a Comprehensive Logistics Plan focusing on four strategic areas:

1. Driver Empowerment and Employment

• Dedicated truck parking and rest areas along major roads and highways.
• Schemes for skill upgradation and training.
• Development of highway amenities for drivers.
• UT-specific schemes for driver health and welfare.
• Driver training through J&K Skill Development Mission.

2. Warehousing

• Simplified land use conversion and FAR/height relaxations for warehouses.
• Establishment of a Single Window Clearance System for warehousing approvals.
• Creation of an e-directory of warehouses in the UT.

3. Smart Enforcement

• Minimize truck stoppages and inspections by:
  • Identifying and resolving bottlenecks
  • Implementing the Carriage of Goods by Road Act, 2007 and the Motor Vehicles Act
  • Utilizing Wi-Fi, CCTV, Weigh-in-Motion (WIM) systems for remote enforcement
  • Integrating data from GSTN, FASTag, VAHAN, and SARATHI systems
  • Addressing protruding cargo issues and developing innovative enforcement methods

4. City Logistics

• Develop logistics parks and truck parking hubs in peri-urban areas near cities.
• Optimize intra-city transport and last-mile delivery infrastructure.
• Identify suitable peri-urban locations for warehousing, fulfillment, and aggregation centres.
• Promote sustainable urban freight transport solutions.

Action By:
Industries & Commerce, Aviation, IT Department, Transport Department, HUDD, Finance Department, Revenue Department, NHAI, Railways, PDD.

9.10. Enhancing Air Cargo Traffic

To improve the air logistics ecosystem, the UT Government will focus on:

• Facilitating private investments at airport cargo terminals.
• Increasing air cargo traffic for efficient movement of goods.
• Promoting multimodal integration with airports.
• Encouraging shared logistics services among stakeholders to reduce overall costs.

Action By:
Aviation, Industries & Commerce, Transport Department, Finance Department, Revenue Department, NHAI, Railways.

Policy Implementation

1. This policy shall come into effect from the date of its official notification and will remain in force for a period of five (05) years from the date of commencement.

1. The policy may be amended, reviewed, or superseded as deemed necessary by the Government of Jammu & Kashmir and shall be notified accordingly from time to time.

iii. Notwithstanding any future amendments to this policy, any incentive package already committed by the UT Government to a unit shall not be withdrawn, and such units shall continue to remain eligible for the committed benefits.

Note: Incentives availed under the J&K Industrial Policy 2021 and the New Central Sector Scheme (NCSS) shall be governed by the terms and conditions specified under their respective policies.

Logistics Institutional Setup

In order to establish a conducive and efficient logistics ecosystem in the Union Territory of Jammu & Kashmir, a UT Logistics Coordination Committee shall be constituted. The Administrative Secretary, Industries & Commerce Department, shall act as the Nodal Officer for integrated development of the logistics sector in the UT.

The composition of the Committee shall be as follows (as per Annexure 3):

Role and Responsibilities

The Logistics Coordination Committee shall function as the apex body for measuring performance metrics across the logistics value chain, enabling data-driven decision-making for infrastructure planning, policy implementation, and assessment of growth trends and capacity utilization in the UT.

Additionally, a dedicated Logistics Policy Cell shall be created under the Committee to serve as the strategic and coordinating unit for implementation of logistics-related initiatives and unifying the direction for development of the logistics sector in Jammu & Kashmir.

Terms of Reference of the Committee

1. Review and periodic monitoring of the implementation of the UT Logistics Policy
   ii. Facilitate and promote ease of cargo movement, including development of Green Channels
   iii. Guide the development of Transport Nagars across key nodes
   iv. Coordinate planning and development of Logistics and Warehousing Hubs
   v. Facilitate development of Dry Ports and related infrastructure
   vi. Oversee the preparation and implementation of a Comprehensive UT Logistics Plan

Grievance Redressal Mechanism

A structured grievance redressal mechanism shall be established under this policy to ensure timely and effective resolution of issues and challenges faced by stakeholders in the logistics ecosystem.

Ease of Doing Business

Aligned with the objectives of the J&K Industrial Policy 2021–30, the Government of Jammu & Kashmir has been undertaking a series of comprehensive reforms aimed at enhancing the Ease of Doing Business. The enactment of the Jammu & Kashmir Single Window (Industrial Investments and Business Facilitation) Act, 2018 has laid a robust foundation for a more efficient, transparent, and investor-friendly environment in the UT.

This logistics policy leverages these reforms to extend similar ease and facilitation to the logistics and warehousing sector, thereby accelerating industrial growth and boosting investment confidence in the UT.

Key Enablers

1. Single Window Clearance System
   All approvals and permissions required for setting up and operating logistics units shall be facilitated through the Single Window System of the UT Government, which is monitored at the highest administrative level. This system ensures seamless coordination between multiple departments and enables faster processing of investor applications.
2. Time-bound Clearances
   Providing timely and predictable approvals is a central objective of this policy. All logistics-related services, permits, and clearances shall be granted within defined timelines, as mandated under the Single Window Act and the Jammu & Kashmir Public Service Guarantee Act, 2011. Service level standards will be strictly enforced to minimize delays and improve investor experience.

iii. Quality Power Supply
The Government of Jammu & Kashmir is committed to ensuring the availability of 24×7 reliable and quality power supply for the warehousing and logistics sector. Dedicated feeders or industrial power infrastructure may be provided for key logistics hubs and parks to ensure uninterrupted operations.

1. Industrial Security
   To foster investor confidence and ensure continuity of operations, the Government will provide a safe and secure industrial environment across logistics zones, parks, and transport corridors. Adequate infrastructure for surveillance, emergency response, and physical security will be ensured in coordination with law enforcement agencies.

Definitions

To ensure clarity in implementation, the following definitions shall apply under this policy:

13.1 Eligible Unit / Project

An Eligible Unit/Project refers to a legal entity engaged in logistics or related activities, and registered as any of the following:

• Proprietorship
• Partnership firm
• Cooperative Society
• Company
• Trust
• Non-Government Organization (NGO)

13.2 New Unit / Project

A New Unit/Project is defined as one that:

• Commences commercial operations during the operative period of this policy, and
• Meets all of the following conditions: i. Has obtained a Letter of Intent (LOI) or Letter of Approval (LOA) from the competent authority. ii. Has separate and identifiable fixed capital investment, including new plant and machinery/equipment located in separate premises and maintaining distinct books of accounts.

13.3 Existing Unit / Project

An Existing Unit/Project is one that:

• Commenced commercial operations prior to the date of policy notification, and
• Is registered under GST in the Union Territory of Jammu & Kashmir.

13.4 New Building

A New Building includes:

• A newly constructed or newly acquired unused building (including administrative blocks) for the logistics project.

The cost will be computed as per:

• Actual expenditure or
• Schedule of Rates (SOR) of the Roads & Buildings Department, Government of J&K — whichever is lower.

Note:

• Buildings acquired on lease or rent or any old buildings (including repair costs) shall not be considered for fixed capital investment.
• Buildings constructed for plant and machinery, R&D, in-house testing, and storage will be included based on actual cost.

13.5 Other Construction

Includes:

• Compound walls, gates
• Security cabins
• Internal roads
• Bore wells, water tanks
• Drainage systems
• Internal pipelines for water and gas
• Related infrastructure essential for logistics operations

13.6 Plant and Machinery

Refers to new plant and machinery installed at the project site and purchased at arm’s length from the open market.

Includes: i. Non-conventional energy generation plants
ii. Vehicles and equipment used within the unit premises for handling and transportation
iii. Captive/co-generation power plants
iv. Pollution control equipment
v. Diesel generators with capacity ≤50% of connected load or ≤25 MW, whichever is lower

13.7 Project-related Infrastructure

Fixed capital investment under the following shall be considered eligible: i. Facilities created for staff and workers ii. Road connectivity from nearest access road to the unit/project iii. Pipelines for water and gas supply iv. Non-refundable deposits to DISCOMs for electricity transmission from nearest substation v. Expenditure on telecom and network cabling infrastructure

13.8 Date of Commencement of Operations (DCO)

Refers to the date on which the unit commences commercial operations or starts delivering services during the operative period of this policy.

Logistics Facilities

14.1 Logistics / Logistics Services
‘Logistics Services’ or ‘Logistics’ refers to the transport or carriage of goods from origin to destination using intermodal, multimodal, or single-mode transportation. It includes all associated functions such as storage, loading/unloading, and related value-added or allied services essential for delivery to the consignee.
The logistics ecosystem comprises:

• Nodes and infrastructure like ports, stations, warehouses, business premises, etc.
• Connections via roads, railways, shipping, inland waterways, air routes, pipelines.
• Enabling frameworks including human resources, technology, and operational systems.

14.2 Key Logistics Infrastructure Definitions

1. Logistics Parks
   Facilities that provide integrated services such as cargo aggregation/segregation, open/closed and temperature-controlled storage, bonded warehousing, parking, material handling, and value-added services. These parks shall include supporting infrastructure like:

• Internal roads, power, water, drainage, communication
• Green/open spaces and utilities, as per approved design/layout

1. Multi-Modal Logistics Park (MMLP)
   A logistics facility with:

• Access to multiple modes of transport
• Minimum area: 15 acres
• Infrastructure requirements:
  • 2-lane internal paved roads (min. 10m width)
  • External approach road (min. 20m width)
  • Rail siding access
  • FAR norms as per government zoning regulations

1. Inland Container Depot (ICD)
   Off-port facilities equipped with infrastructure to handle, clear, and store import/export containers under customs control. Includes:

• Road and rail connectivity
• Bonded/non-bonded warehousing
• Truck terminals and common user services

1. Container Freight Station (CFS)
   Similar to ICDs but typically located closer to ports. Facilities include:

• Handling, storage, clearance of import/export containers under customs
• Parking and associated operational infrastructure

1. Air Freight Station (AFS)
   Off-airport logistics facility offering:

• Temporary storage, handling of import/export cargo
• Customs/non-customs bonded warehousing
• Parking and value-added logistics operations
  AFSs may serve e-commerce clusters and must be strategically located with efficient airport access.

1. Private Freight Terminal (PFT)
   Terminals notified under the PFT Policy of GoI, serving rail-based cargo and containers.

• Greenfield PFT: Developed on private land
• Brownfield PFT: Converted from existing private rail siding

1. Air Cargo Complex
   Infrastructure developed within or near airports for:

• Air cargo handling, storage, and customs clearance
• Enhancing regional air freight capacity

1. Cold Chain Facility
   Facilities designed for perishable or temperature-sensitive goods (e.g., agriculture, marine, pharma). Key features include:

• CA/MA storage chambers, IQF, blast freezers
• Minimal processing centers: Weighing, grading, cleaning, waxing, packing, irradiation
• Mobile pre-cooling vans, reefer trucks for end-to-end services

1. Warehouse
   Closed/open storage space for goods in bulk or break-bulk form. May include:

• Loading/unloading, sorting, short-term storage infrastructure

1. Truck Terminals
   Facilities located at key logistics nodes or highway intersections. Includes:

• Truck parking, repair, fuel stations, ATMs, spare parts stores
• Driver lodging, sanitary facilities, vehicle fitness testing
• Cross-docking and transshipment infrastructure

1. Silos
   Structures used for storage of bulk solid or liquid cargo. Constructed from materials like steel or concrete, depending on cargo type.

1. Logistics Infrastructure by EGoS (Gati Shakti)
   The Empowered Group of Secretaries (EGoS) under Gati Shakti is authorized to declare any asset as a logistics asset.
   Infrastructure developed for connectivity to SEZs, Industrial Areas, or Economic Zones may be designated as Logistics Infrastructure and made eligible for incentives. This facilitates forward and backward linkages in supply chains.

15. Ineligible Expenditure for Assistance

The following expenditures shall not be considered eligible for assistance or incentives under this policy:

1. Purchase of land and land development expenses
   b. Goodwill fees, commission fees, royalty, preliminary/pre-operative expenses
   c. Capitalized interest, technical/consultancy fees, and working capital
   d. Any expenditure not expressly categorized as eligible, or those specified as ineligible by the State Level Empowered Committee (SLEC)

Eligibility

15.1.    Unit/ project registered as Proprietor, Partnership firm, Cooperative Society, Company, Trust, Non-Government Organization (NGO) can avail incentives under this policy. State Government/ Central Government departments shall not be eligible for any incentives under the policy.

15.2.    A unit that has availed any incentive for the same assets under any other scheme of the UT government, Central Government or any agency of the UT government shall not be eligible for incentive under this scheme.

Incentives to Logistic Facilities (Indicative)

15.3. Industry Status and Incentive Eligibility

As per the New Central Sector Scheme (NCSS), 2021 applicable to the Union Territory of Jammu & Kashmir, Freight Terminals, Logistics Parks, and Warehousing (including Cold Storage Services) have been granted the status of ‘Industry’.
Accordingly, all such logistics and warehousing units established in the UT shall be eligible for incentives under:

• The Jammu & Kashmir Industrial Policy 2021, and
• The New Central Sector Scheme (NCSS), 2021.

15.4. Additional Incentives

15.4.1. Incentives on Purchase of Transport Vehicles

Developers shall be entitled to claim the following one-time incentives on transport vehicles, provided they are:

• Purchased and registered in the UT of Jammu & Kashmir, and
• Meet the minimum qualifying criteria:

15.4.2. Land Use Conversion Charges

• Reimbursement of 50% of land use conversion charges, if paid by the developer, for setting up the logistics/warehousing project.

15.4.3. Skill Development Incentives

• Reimbursement of training expenses for a maximum of 50 employees per year for up to 5 years, as follows:
  • ₹12,000 per employee per year
  • ₹24,000 per woman or handicapped employee per year

15.4.4. EPF Reimbursement

• Reimbursement of 50% of the employer’s contribution towards EPF for all new logistics units employing at least 50 unskilled workers.
• Additional 10% reimbursement for units employing 100 or more skilled/unskilled workers.

15.4.5. Incentives for Multi-Modal Logistics Parks (MMLPs)

To promote strategic, large-scale investments, the Empowered Group of Secretaries (EGoS) may recommend customized incentive packages for MMLPs that meet the following criteria:

• Minimum investment of ₹100 Crores (excluding land value)
• Approval subject to due consideration by the Government of J&K

15.4.6. One-Time Capital Incentive for Mid-Scale MMLPs

For new MMLPs not covered under the New Central Sector Scheme, 2021, but with an investment of more than ₹50 Crores and less than ₹100 Crores:

Note: Zone A and Zone B classification shall be as per the J&K Land Allotment Policy, 2021.