GST impact on the logistics sector

Source:, Aug 08, 2017

The logistics sector broadly comprises the road transport sector (consisting of unorganized small businesses, trucking, fleets and large transport companies), the storage and warehousing sector and finally third-party logistics (3PL). These can be further classified into big and small players and asset heavy/light companies. Given this classification, comparing industry performance as a whole is a complicated exercise. We tackle this by analysing data pertaining to 166 companies during 2010-2015 from the Centre for Monitoring Indian Economy (CMIE)’s industrial database to arrive at some useful insights into the industry’s performance.

We look at two key performance measures—profit after tax (PAT) as percentage of income and profit before interest, taxes, depreciation and amortization (PBITDA) as percentage of income.


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Niti Aayog clears six proposals for high-tech public transport

Source: The Economic Times, July 27, 2017

NEW DELHI: Mass rapid transportation technologies such as hyperloop, metrino and pod taxis could soon be a reality in India after Niti Aayog cleared half-a-dozen proposals of the transport ministry exploring options to improve public transport.

Following the go-ahead, the transport ministry has formed a six member committee, headed by a former top official of Railways, to study safety parameters associated with these technologies and global practices.

A senior government official at Niti Aayog told ET, the think tank approved the proposals of the transport ministry with a condition that the ministry conducts trial run of all these technologies and puts in place safety measures before starting commercially operation.

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India ratifies TIR Convention to access transnational multi-modal connectivity

Source:, June 20, 2017

New Delhi: India ratified the Transports Internationaux Routiers or International Road Transports (TIR) Convention, IRU, the global road transport organization said in a statement on Monday.

The multilateral international transit treaty—Customs Convention on International Transport of Goods under cover of TIR Carnets—is also referred to as the TIR Convention and functions under the auspices of the United Nations Economic Commission for Europe (UNECE).

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Tata Motors plans test trials for electric vehicles across India

download (10).jpgSource :Financial Express 5 May 2017

Tata Motors believes that electric buses are imminently suitable for city transportation although it is still not sure if the users would be ready to pay higher prices for tickets.

Tata Motors plans test runs for its 9-meter and 12-meter electric buses across the country to generate interest among the State transport corporations, even as it urges government to pay higher subsidy on electric vehicles compared with hybrid vehicles under the upcoming electric vehicle policy. “We have already started test runs of our 9-meter electric vehicles in the state of Himachal Pradesh, and it is our intent to make a number of these vehicles available all across the country to generate interest,” Ravindra Pisharody, executive director, commercial vehicles of Tata Motors said. Tenders have already been floated by Pune city for 100 buses, BEST for 6 buses, and similarly by Himachal Road Transport Corporation that the company plans to participate in.

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Govt readies multi-modal transport play to reduce logistics costs

Source:, Mar 15, 2017

New Delhi: India has firmed up the contours of its ambitious multi-modal programme to reduce logistics costs and make the economy competitive.

The strategy involves a reset of India’s logistics sector from a “point-to-point” model to a “hub-and-spoke” model and involves railways, highways, inland waterways and airports to put in place an effective transportation grid.This includes setting up 35 multi-modal logistics parks at an investment of Rs50,000 crore, development of 50 economic corridors and an investment template which involves roping in the states and the private sector for setting up special vehicles for implementation.

To implement this, the government plans to host a multi-modal summit—India Integrated Transport and Logistics Summit—in May, on the lines of the maritime summit to pitch project opportunities to the investors.

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Foreign-registered planes may get nod to operate in India

Source: The Economic Times, Oct 14, 2016

NEW DELHI: The government is likely to allow foreign-registered planes to operate in India in its endeavour to make it easier for aircraft leasing companies to do business here.

Currently, any aircraft that is being brought to India has to be first registered with the Directorate General of Civil Aviation (DGCA), a rule that has been seen as an obstacle in taking planes on lease by airlines at a time when India is pushing for increased regional air connectivity.

Exemption from this rule will make it easier for the lessor to take back the aircraft in case of a dispute with the airline operating the aircraft. Since there will be less risk of their planes getting stuck in India, the leasing companies could also reduce the rentals, helping local airlines. On Thursday, the civil aviation ministry called a meeting of aircraft lessors as part of efforts to ensure availability of aircraft to implement the regional connectivity scheme. “We heard the suggestions made by the lessors in the meeting. We should be able to allow foreign-registered aircraft to operate in India,” said a senior aviation ministry official, who did not want to be named.

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Railways to sign MoU with Germany for high-speed trains

Source: Financial Express, Oct. 12, 2016

New Delhi: Aiming to reduce travel time significantly, Railways will ink a pact with Germany for running high-speed trains in the country.

Accompanied by a high-ranking delegation, German Minister for Transport and Digital Infrastructure, Alexander Dobrindt, will meet Railway Minister Suresh Prabhu on October 14.

A Memorandum of Understanding (MoU) will be signed between the two countries for bilateral cooperation in the rail sector, said a senior Railway Ministry official.

Dobrindt is visiting India from October 12 to 15. According to railways, it is a “follow-up” to Prabhu’s visit to Germany in April.

The German minister will hold talks with Prabhu in Rail Bhavan. Both ministers will focus on deepening collaboration and strengthening ties in the field of railways and high–speed trains.
After the meeting, the MoU will be signed between Indian Railways and DB Engineering and Consulting GmbH.