► State may examine the scope of setting up support, guidelines, requisite approvals,

additional ICD infrastructure through speedy incentives, and clearances for the logistics
provisions, permits and clearances. sector.
► Participating Government Agencies may set ► The focus may be kept on strengthening of the
up testing centers in the State to avoid cargo institutional mechanism by setting up a State
delays due to dependency on Delhi for testing logistics cell and city logistics coordination
infrastructure. committee for the integrated development of
logistics ecosystem.
► The State may work on Preparation of State
Logistics Policy for providing regulatory

Page 106
LEADS 2021: Logistics Ease Across Different States
 Madhya Pradesh

17
2021 rank
2.90
2021 Score
9
2019 rank
3.21
2019 Score

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

Madhya Pradesh - a brief logistics profile

Brief overview of the logistics profile of the State is provided in the exhibit 48 below.

Exhibit 48: Brief logistics profile of Madhya Pradesh

Parameter Unit Value Year Source

NH=8,940/
Road length km 2020-21 MoRTH/ NHAI
SH=11,389
Railway track Track-km 9,702 2019-20 MoR
Inland Container Depot (ICD) nos. 8 2017-18 CBIC The State has the
largest warehousing
Private Freight Terminal (PFT) nos. 5 2020-21 MoR capacity with a
Air cargo terminals nos. 5 2020-21 AAI share of 22.62% with
second highest
Rail goods sheds nos. 425 2019-20 MoR
number of WDRA
WDRA registered warehouse registered
MT 29,99,849 2019-20 WDRA
capacity warehouses (372)
Cold storage capacity MT 12,93,574 2020-21 MoCAF&PD
Logistics training centres nos. 34 2020-21 MoSDE
No. of individuals trained in
nos. 3,854 2020-21 MoSDE
logistics

Page 107 LEADS 2021: Logistics Ease Across Different States

Exhibit 49: States’ LEADS 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

Madhya Pradesh 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

Timeliness of Cargo Delivery (Transportation)
Services)
Madhya Pradesh Max Average

Operating and Regulatory Environment

Extent of Facilitation

Efficiency of Regulatory Services Ease of Obtaining all Approvals

Madhya Pradesh 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

Madhya Pradesh Max Average

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

Page 108
LEADS 2021: Logistics Ease Across Different States
Madhya Pradesh is ranked 17th in 2021 index pilferage (e.g., the State highway stretch near
compared to 9th in 2019 index i.e., a drop of eight Hoshangabad).
places. The State has underperformed across
Existing old logistics infrastructure like goods
majority of the indicators of the Index. Indicators
sheds and warehouses within city limits has led to
score on overall satisfaction on the Operating and
congestion and increased pollution in the State.
Regulatory Environment of the State is below
The State has scored low on the two indicators
average and industry interactions also validate
related to logistics infrastructure, i.e., Quality of
this fact by talking about an extremely unhealthy
Multi-modal Terminal Infrastructure and
transportation environment. Transport unions,
Warehousing Infrastructure.
RTOs and police hurdles are key regulatory
challenges faced by the sector. This has resulted Low score in Capability of Logistics Service
in an increase in transportation cost due to the Providers indicates that the available
indirect costs associated with an unsatisfactory infrastructure may be used inefficiently due to
regulatory and operating environment. The State competency issues with the logistics service
has also scored the lowest on Reasonableness of providers. The State has started to take proactive
Road Freight Rates indicator which also steps towards enabling the logistics sector. The
substantiates the high cost of transportation State’s Industrial Promotion Policy incentivises
faced by the sector. development of logistics hubs/ parks, food
processing units and largescale industries by
The State has scored almost 10% below the
providing special financial assistance. Keeping
composite average of the indicator score related
pace with logistics sector demand for quality
to Safety and Security during Transportation. The
terminal infrastructure, a new State air cargo
same is reflected in the industry voice highlighting
terminal has been made operational recently in
that the State highways are prone to theft and
Indore.

Issues and challenges as narrated by industry stakeholders

Infrastructure expansion of cold storage infrastructure in the
State.
► The State road between Indore and
Mandideep, especially on SH-22, has a lot of Regulatory and Operating Environment
potholes despite consecutive recarpeting.
► Truck unions are active in the State, causing
► Inadequate lighting at ICD Pegasus increases problem in truck availability and leading to
the chances of thefts at the station. higher trucking charges. Such practices
discourage international buyers from
► Inadequate rail connectivity to gateway ports
providing big orders to local traders due to
of JNPT and Mundra.
added logistics cost.
Services
► Undue cargo checking and stoppages by State
► The cost of movement and repositioning police cause harassment to the trader and
containers from JNPT to Mandideep and delays in cargo delivery. Due to this, most of
Govindpura is very high, adding to the overall the interstate traffic from North India
logistics cost, making exports from State less bypasses the State en-route Gujarat Ports.
competitive as compared to the neighboring
► Transparency at RTO authority in the State is
States of Maharashtra and Gujarat.
a severe issue.
► Lack of financial support from banks for
► Road stretch leading to the terminal at
supporting capital expenditure required for
Hoshangabad is prone to theft and pilferage.
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 109 LEADS 2021: Logistics Ease Across Different States

Suggestions and recommendations
The State may inspect and investigate the associations, transport unions to jointly
constraints being faced by the industry and may address issues of unionization being faced by
undertake the following measures - the industry.
► State may strengthen the institutional ► State may develop an online system to enable
mechanism by setting up a city logistics the application of permits for commercial
coordination committee to streamline city vehicles with functionality to track the status
logistics. of approvals for better transparency in RTO
dealings.
► State may consider digital initiatives measures
to decrease the number of physical checks of ► State may discuss with local shipping
commercial vehicles by enforcement officers. companies to bring down the cost associated
with repositioning of containers from JNPT to
► State may implement IT infrastructure for
Mandideep and Govindpur.
surveillance for monitoring on crucial freight
routes and terminals viz. Hoshangabad ► State may facilitate swift allotment of land for
terminal, to avoid cargo theft and enabling the development of MMLPs/ facilities in the
safety and security of cargo during transit by State.
road.
► State may coordinate with MoR to improve rail
► State may indulge in facilitation of regular connectivity to gateway ports and ensure rake
interactions between the industry availability.

Initiatives undertaken by the State Government

State Policy for logistics

► Industrial Promotion Policy 2014 (amended as of October 2019) facilitates the logistics sector by granting
special financial assistance

► The Logistics Policy and Logistics Master Plan of the State is under preparation

► To enable environment-friendly last-mile freight movement, the State has notified the Madhya Pradesh Electric
Vehicle Policy 2019, which incentivizes three-wheeler electric goods carriers’ vehicles (GCVs)

Institutional mechanism for logistics implementation

► The State has initiated the institutional setup for logistics – appointed nodal officer for logistics, established a
State logistics cell

Investment in logistic infrastructure – facilitation and incentivization

► The State is planning to establish logistics parks at Gwalior, Ratlam and Katni

► The State has numerous polytechnics (114) and ITIs (415), and other vocational training institutes to ensure
the availability of skilled manpower across various sectors in different regions of the State

Key initiatives under the regulatory regime

► To support hassle-free clearance for all industrial investments, the State has a single-window clearance
mechanism

Page 110
LEADS 2021: Logistics Ease Across Different States