In a strategic move to bolster its industrial and logistics infrastructure, the Uttar Pradesh government has signed a Memorandum of Understanding (MoU) with Indian Railways. This collaboration aims to develop multi-modal logistics hubs across the state, enhancing connectivity and promoting economic growth.
Under the agreement, railway land will be offered to investors at a concessional lease rate of 1.5% of the prevailing industrial or circle rate for a period of 35 years. This initiative is designed to attract private investment in warehousing and logistics infrastructure, with a stipulation that at least one leg of transportation—either raw materials or finished goods—must utilize railways to encourage sustainable logistics practices.
Key projects under this initiative include the development of a multi-modal logistics hub in Dadri and the establishment of India’s first freight village in Varanasi. These projects are strategically located to leverage Uttar Pradesh’s extensive 16,000 km railway network, facilitating efficient movement of goods and reducing logistics costs.
The collaboration aligns with the Uttar Pradesh Warehousing and Logistics Policy 2022, which mandates a minimum investment of ₹20 crore for warehouse projects. The policy offers incentives such as stamp duty exemptions, land-use conversion benefits, capital subsidies, and electricity duty waivers to eligible projects, aiming to attract significant private sector participation.
Chief Secretary Manoj Kumar Singh emphasized the importance of this partnership in positioning Uttar Pradesh as a leading industrial state. He highlighted that robust connectivity is vital for industrial growth and efficient market access, and this initiative is a significant step towards achieving that goal.
This development is expected to catalyze investment, improve cargo movement, and position Uttar Pradesh as a leading logistics hub in the country.
