Exhibit 23: States’ LEADS indicator score and ranking

Availability and Quality of Infrastructure

Quality of Road Infrastructure

Quality of Warehousing Infrastructure Quality of Rail Infrastructure

Quality of Unimodal Terminal Infrastructure Quality of Multi-Modal Terminal Infrastructure

Tamil Nadu Max Average

Availability and Reliability of Logistics Services

Quality of Logistics Services

Safety and Security at Terminals Capability of Logistics Service Providers

Safety and Security during Transportation Reasonableness of Road Freight Rates

Availability of Mobile/Internet Connectivity Reasonableness of Prices of Terminal Services

Timeliness of Cargo Delivery (Terminal Services) Timeliness of Cargo Delivery (Transportation)

Tamil Nadu Max Average

Overall Operating and Regulatory Environment

Extent of Facilitation

Efficiency of Regulatory Services Ease of Obtaining all Approvals

Tamil Nadu Max Average

Objective Assessment of States’ Logistics Eco-system

Range scaled EoDB ranks

Assessment of variables of logistics ease TIES outlay

States’ logistics enabling initiatives

Tamil Nadu Max Average

Note: It is important to check the confidence interval (CI) of a States’ indicator scores before making any judgement on its performance

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LEADS 2021: Logistics Ease Across Different States
Tamil Nadu is ranked fourth in 2021 index ports and poor road/rail connectivity, for
compared to fifth in 2019 index i.e., an increase instance, poor approach roads of Kamarajar and
of one place. The State has proactively introduced Kattupalli ports.
policies to support logistics such as granting
To alleviate congestion enroute to gateway port of
priority status to logistics and pursuing
Chennai, State is developing an elevated corridor
development of a State Integrated Logistics Plan.
to Chennai Port to ease congestion issues. The
State nodal agency has been appointed by the
indicators on which the State has done well are
State for integrated development of logistics
Capability of Logistics Service Providers,
sector.
Safety/Security during Transportation and at
However, State has low scores for Terminals. Key areas to focus on include
Reasonableness of Road Freight Rates and Prices strengthening the institutional mechanism for
of Terminal Services. Few key factors influencing logistics, creation of parking spaces, measures to
freight rates is congestion (which leads to delays) reduce congestion at ports and investment in
and poor road infrastructure. Industry rail/road connectivity.
interactions have also highlighted congestion at

Issues and Challenges as narrated by Industry stakeholders

Infrastructure of trucks leading them to park on the roadside

along with NHs and SHs.
► Connectivity and infrastructure in Chennai
airport is not sufficient to cater air cargo in Services
large volume. Chennai airport also lacks in
► Air cargo is unorganised in Chennai airport.
infrastructure for refrigerated cargo.
There is also a shortage of skilled labour for
► Industrial areas in the State like Oragadam handling air cargo.
industrial area, Hosur, Irungattukottai etc.,
lack space for logistics activities. Road ► Tracing cargo inside the airport is
connectivity to these industrial areas is also complicated. Theft/ damage to the cargo
inferior. There is also in adequate rail occurs quite frequently in the airport. The
connectivity of the main Railway track to the waiting period in Chennai customs is very high
industrial areas. for clearing cargo.

► Chennai port area faces a lot of congestion. It ► Unionisation of local transporters exist in the
gets choked outside the gate in the evenings State for certain commodities like cement;
and becomes difficult for containers to get in they do not allow any transporter of other
and out of the terminal. There exists around States to enter or otherwise demands to
15-20km queue of vehicles outside the port. informal payments.

► Approach roads of Kamarajar and Kattupalli ► There exists high freight charges in the State.
ports are very narrow and in poor condition. There is also no uniformity in Terminal Head
Pilferage issues are prevalent in these ports. Charges (THC) of different terminals of the
State.
► There is a lack of truck parking areas inside
the ports. Parking spaces for trucks in ICDs Regulatory and Operating Environment
are also not sufficient. Trucks are parked on ► Delays in Ennore-Manali road improvement
the roadside along NHs leading to congestion. project due to land acquisition.
► Power issues persist at Tuticorin port. ► Multiple physical checks by Police/ RTO
► Hosur goods shed has only one line with 8-9 officials along routes viz. Chennai to Ongole
rakes being handled with bulk cargo. involving lots of paper processing inducing
Infrastructure in Hosur is not adequate for delays in cargo movement.
handling EXIM cargo. ► Inadequate presence of custom services in
► Parking spaces for trucks in ICDs in the State CFS facilities of the State.
are not sufficient. ICDs allocate only a small
portion of approximately 1-2 acres for parking
Disclaimer: The issues and challenges capture isolated experiences of the stakeholders and continual improvement may already have
been in the process addressing the stakeholders’ inputs.

Page 57 LEADS 2021: Logistics Ease Across Different States

Suggestions and recommendations

The State may inspect and investigate the avoid congestion on the approach roads of the
constraints being faced by the industry and may ports.
undertake the following measures - ► State may work on implementation of IT
► State may establish a State Logistics Cell for infrastructure for surveillance for monitoring
providing hand-holding support to the of unwarranted stoppages and informal
stakeholders to get all the requisite approvals payments taken by police and RTO officials
and clearances relating to logistics operations. and strengthening of existing grievance
► State may work on preparation of State redress mechanism for the industry to report
Logistics Policy and Logistics Master Plan in such issues.
next one year for driving greater coordination ► State may work on coordination with States’
between cross-sector implementing agencies Electricity Board and examine and resolve the
for targeted outcomes and focused central issue of extensive power outage in the ports
government support. of Tuticorin.
► State may work on identification of two major ► State may work on modernization of
cities of the State to set up City Logistics infrastructure facilities at Hosur goods shed
Coordination Committee. for handling the cargo.
► The State may invest in modernization of ► State may work towards facilitation of regular
Chennai airport in terms of connectivity and interactions between the industry,
infrastructure for safe handling of air cargo transporters’ unions, and terminal operators
movement. to jointly address issues, thereby enabling
► Coordination with NHAI and PWD may happen logistics ease.
to inspect and invest in widening and ► State may coordinate with Ministry of
maintenance of approach roads connecting to Railways (MoR) regarding the provision of rail
the ports of Chennai, Ennore and Kattupalli connectivity to the industrial areas of the
and the road stretch of Ennore-Manali. State.
► The setting up of training institutes in the ► State may work towards coordination with
State for skilling the labours in handling the Customs Department for facilitating the
different types of cargo. customs services to the CFSs of the State.
► Provision may be made of adequate parking
spaces for trucks inside the ports and ICDs to

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LEADS 2021: Logistics Ease Across Different States
Initiatives undertaken by the State Government

State policy for logistics

► The State has launched an Industrial Policy, 2021 that covers logistics. It grants “Priority” status to logistics
and provides taxes (holiday/rebate) and other fiscal incentives to the logistics sector
► The State government Has already floated RFP for preparing State Integrated Logistics Plan. The plan is likely
to be launched in the next year
► Tamil Nadu Environment Policy 2017 mandates that the State will prepare comprehensive master plans to
guide industrial development in a planned manner to assess and address environmental impacts
comprehensively

Institutional mechanism for logistics implementation

► Tamil Nadu Industrial Development Corporation Limited (TIDCO) has been appointed as the State nodal agency
for the integrated development of the logistics sector in the State. The State also has set up the State Logistics
Coordination Committee (SLCC)

Key initiatives under the regulatory regime

► Single Window Facility of the State covers offers 38 services/clearances about 14 Departments with defined
timelines for granting approvals/clearances at various stages of the business lifecycle

Page 59 LEADS 2021: Logistics Ease Across Different States

 Maharashtra

5
2021 rank
3.32
2021 Score
4
2019 rank
3.42
2019 Score

Note: Owing to the change in statistical methodology between 2019 and 2021, a direct rank and score comparison is
not recommended.

Maharashtra - a brief logistics profile

Brief overview of the logistics profile of the State is provided in the exhibit 24 below.

Exhibit 24: Brief logistics profile of Maharashtra

Parameter Unit Value Year Source

NH=17,757/ MoRTH/NHAI
Road length km 2020-21
SH=29,030
Railway track Track-km 11,631 2019-20 MoR
Inland Container Depot (ICD) nos. 11 2017-18 CBIC The State has the highest
Container Freight Station (CFS) nos. 45 2017-18 CBIC number of ICDs (11) and
Private Freight Terminal (PFT) nos. 7 2020-21 MoR second highest number of
CFSs (45) and railway goods
Air cargo terminals nos. 10 2020-21 AAI sheds (541) in the country. It
Rail goods sheds nos. 541 2019-20 MoR also has the maximum
WDRA registered warehouse number of registered goods
MT 9,32,875 2019-20 WDRA commercial vehicles with a
capacity
share of 14.64%
Cold storage capacity MT 10,09,693 2020-21 MoCAF&PD
Port traffic MT 115,10,0000 2020-21 MoPSW
Logistics training centres nos. 21 2020-21 MoSDE
No. of individuals trained in
nos. 1,554 2020-21 MoSDE
logistics

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LEADS 2021: Logistics Ease Across Different States