Eligiblity For Incentives Under Logistic Policy
Warehousing means “Industrial Warehousing” and shall be only used for non-agricultural products. The units storing primary agricultural produce shall not be eligible for these incentives.
- Logistics Park must have all required necessary statutory permissions/approvals, approval of layout plan from the Competent Authorities.
- Logistics and Warehousing Infrastructure shall mandatorily start operations within 3 years from the date of approval/sanction and shall continue to be operational for a minimum period of 10 years after completion or from approval date, otherwise, Financial Assistance disbursed will be recovered.
Fiscal Incentives for Logistics Parks, ICDs, and MMLPs
Minimum Land Area Requirement for Logistics Parks, ICDs, and MMLPs
The minimum land area requirement and investment in Logistics and Warehousing Infrastructure, as defined under the policy, is given below:
Area of Logistics and Warehousing Infrastructure | Minimum width of approach road | Minimum Fixed Capital Investment (excluding land) |
25 acres to 75 acres | 12 meter | Rs. 50 crore |
More than 75 acres | 18 meter | Rs. 100 crore |
Fiscal Incentives for Logistics Parks, ICDs, and MMLPs
Incentive Provided on Investments
Logistics and Warehousing Infrastructure as defined in the policy shall be eligible for Investment Assistance as follows:’
S. No. | Area of the Park/facility | Investment Assistance Percentage* | Maximum Limit |
I | 25 acres to 75 acres | 30% | INR 50 Crore |
II | More than 75 acres | 30% | INR 75 Crore |
- Reimbursement of Stamp Duty and Registration Fees
Reimbursement of 100% Stamp Duty and Registration Fees on Purchase / Lease of land for the establishment of Logistics Parks / MMLPs, up to a maximum limit of INR 5 Crore.
- Assistance for Certified Green Logistics Parks and MMLP
Reimbursement of 50% of the certification fee for the Indian Green Building Council (IGBC) for Gold and Platinum certification, applicable to Logistics Park, MMLP, and warehouse, subject to a maximum of Rs. 20 lakh.
- External Infrastructure Development Assistance
The government will provide reimbursement for developing connecting last-mile road, rail infrastructure, and drainage infrastructure—50% of the total expense or a maximum of Rs. 5 crore.
- Provision for Allotment of Undeveloped Land
Provision for allotment of undeveloped land for warehousing and logistic activities as per Collector Guideline rates shall be brought in the Land Management Rules.
Fiscal Incentives for other Logistics and Warehousing Infrastructure, Private Freight Terminal (PFT) / Gati Shakti Cargo Terminal (GCT), Container Freight Station (CFS), Air Freight Station (AFS) / Air Cargo Complex (ACC)
Minimum Land Area Requirement for other Logistics Infrastructure
The minimum land area requirement and investment in Logistics and Warehousing Infrastructure, as defined in the policy, is given below:
S. No. | Area of Logistics and Warehousing Infrastructure | Minimum width of approach road | Minimum Fixed Capital Investment (excluding land) |
1 | 5 to 10 Acres | 10 meter | Rs. 10 crore |
2 | 10 acres to 50 acres | 12 meter | Rs. 50 crore |
3 | More than 50 acres | 18 meter | Rs. 100 crore |
Fiscal Incentives for other Logistics and Warehousing Infrastructure, Private Freight Terminal (PFT) / Gati Shakti Cargo Terminal (GCT), Container Freight Station (CFS), Air Freight Station (AFS) / Air Cargo Complex (ACC) (as defined in the policy)
- Incentive Provided on Investments
Logistics and Warehousing Infrastructure as defined in the policy shall be eligible for Investment Assistance of 30% of the Total Capital Expenditure, per Unit or per Applicant, as applicable based on the area as under:
Area of Logistics and Warehousing Infrastructure | Maximum cap in Rs. |
5 to 10 Acres | 5 Cr |
10 acres to 50 acres | 15 Cr |
More than 50 acres | 25 Cr |
- Reimbursement of Stamp Duty and Registration Fees
Reimbursement of 100% Stamp Duty and Registration Fees on purchase of land or lease for the establishment of other Logistics and Warehousing Infrastructure, up to a maximum limit of INR 5 Crore.
- External Infrastructure Development Assistance
The government will provide reimbursement for developing connecting last-mile road, water, power, and drainage infrastructure—50% of the total expense or a maximum amounting to Rs. 3 crore.
- Provision for Allotment of Undeveloped Land
Provision for allotment of undeveloped land for warehousing and logistic activities as per Collector Guideline rates shall be brought in the Land Management Rules.
- Assistance for the Conversion of Agricultural Produce Warehouses to Industrial Warehouses
All agricultural produce warehouses with a minimum storage capacity of 10,000 MT shall be eligible for conversion to industrial warehouses. They will be eligible for reimbursement of 40% of the total cost of conversion to industrial warehouses, up to a maximum limit of INR 1 Crore. The agricultural warehouse must be registered with the competent authority of the state government.
Sanction of Incentives
Investment Assistance shall be sanctioned on a milestone basis as provided below
- First installment: First installment of 40% of the assistance shall be released after completion of construction / commencement of operations (COD).
- Second installment: Second installment of 30% shall be released on completion of one year from COD.
- Third installment: Third installment of 30% shall be released on completion of two years from COD.
- Completion of construction / COD will be considered when the first consignment of goods has been received at the facility.
Non-Fiscal Incentives
- Green Channel for EXIM Cargo – Reduced inspection and designated routes for smoother export-import cargo movement.
- Fast-Track Building Permission – Quicker approvals for logistics infrastructure construction in designated areas.
- Single Window System – Streamlined approvals involving key regulatory agencies.
- 24×7 Operations – Continuous operation of logistics infrastructure, ensuring compliance with labor laws.
- Higher Ground Coverage – Warehousing infrastructure allowed up to 70% ground coverage with safety compliance.
- Increased Floor Area Ratio (FAR) – FAR increased to 1; additional FAR can be purchased as per regulations.
