The growing Logistics sector in India is looking at mounting losses. With the lockdown extended to May 3, the cumulative loss estimate is as high as Rs. 50,000 crores with the highest loss coming from the Aviation Sector, followed by the Roadways, in terms of lost Toll Taxes and Goods wasted on the road due to a sudden lockdown, grinding to a halt fully loaded trucks. Though Government has allowed movement of both essential and non-essential goods, the situation is not to so easy at the ground level.
Container freight stations, inland container depots, warehouses and port terminals, which are all notified as essential services, are getting choked due to slow evacuation of containers and cargo. Moreover quarantining of ships for 2 weeks at high seas with delayed berthing is also adding to the chaos. Given the capital intensive nature of the industry, the standing cost of assets is very high, running into crores of rupees. A lifeline needs to be extended to the Industry.
Indian Chamber of Commerce (ICC) seeks the following relief measures for logistics Industry:
•        Request NHAI to take initiative to provide digital permits and arrange packaged food service for drivers after every 50 kms.
•        Complete waiver of EMI obligations for at least 6 months till earnings normalize.
•        Treatment of Logistics sector as Priority Sector for Lending – sanctioned soft loans & existing loans be rolled over at a lower rate
•        Auto renewal of National movement Permits till September 2020.
•        A reduction in GST for the sector to lower than 12%.
•        Waiver of Revenue share & Lease Rental payable by PPP operators to Government Partner till September 2020
•        Waiver of Minimum Performance obligations of Private Operator till September 2020
•        A Government sponsored Health Insurance Cover for all the employees of the sector.
•        Extension of Construction Period of ongoing PPP projects by 6 months to 1 year. Allowing of GST Input Credit in such projects.