{"id":33870,"date":"2018-10-30T14:46:51","date_gmt":"2018-10-30T09:16:51","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=33870"},"modified":"2018-10-30T14:46:51","modified_gmt":"2018-10-30T09:16:51","slug":"infra-status-for-logistic-sector","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/infra-status-for-logistic-sector\/","title":{"rendered":"Infra status for logistic sector\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/infra-status-for-logistics-sector\/article20601964.ece\"><span style=\"font-weight: 400;\">Infra status for logistic sector<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Centre has granted <\/span><b>infrastructure status to the logistics sector.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It allows <\/span><b>availing loans at competitive terms<\/b><span style=\"font-weight: 400;\"> that come along with the status.<\/span><\/li>\n<\/ul>\n<p><b>What is the reason for this grant?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">High logistics cost reduces the competitiveness of Indian goods both in domestic as well as export markets.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Thus, development of logistics would give a <\/span><b>boost to both domestic and external demand thereby encouraging manufacturing and job creation.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It will also <\/span><b>reduce the cost of capital in transportation and warehousing.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It also seeks<\/span><b> instrumental in improving country\u2019s GDP<\/b><\/li>\n<\/ul>\n<p><b>What are the benefits of infrastructure status?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Infrastructure industries get longer maturity loans compared to typical manufacturing sector.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">They are also eligible for slightly higher equity ratios while applying for the loans.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">They can do refinancing with specialised lenders like IDFC, IIFCL, etc.<\/span><\/li>\n<\/ul>\n<p><b>What are the benefits of the logistic sector after the infrastructure status?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It will enable the logistics sector to <\/span><b>avail infrastructure lending at easier terms with enhanced limits<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>Give access to larger amounts of funds<\/b><span style=\"font-weight: 400;\"> as external commercial borrowings (ECB)<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Give access to longer tenor funds<\/b><span style=\"font-weight: 400;\"> from insurance companies and pension funds and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It will be <\/span><b>eligible to borrow from India Infrastructure Financing Company Limited<\/b><span style=\"font-weight: 400;\"> (IIFCL)<\/span><\/li>\n<\/ul>\n<p><b>What is logistics infrastructure?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Logistics infrastructure means and includes <\/span><b>multi-modal logistics park comprising inland container depot (ICD)<\/b><span style=\"font-weight: 400;\"> with minimum investment of 50 crore and minimum area of 10 acre, cold chain facility with minimum investment of 15 crore and minimum area of 20,000 square feet, and\/or warehousing facility with investment of minimum 25 crore and minimum area of 1 lakh square feet.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Infra status for logistic sector\u00a0 Context: The Centre has granted infrastructure status to the logistics sector. It allows availing loans at competitive terms that come along with the status. What is the reason for this grant? High logistics cost reduces the competitiveness of Indian goods both in domestic as well as export markets. Thus, development&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/infra-status-for-logistic-sector\/\">Continue reading <span class=\"screen-reader-text\">Infra status for logistic sector\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-33870","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704889872},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=33870"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33870\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=33870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=33870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=33870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}