India's logistics cost must be reduced: Union minister Gadkari
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Kolkata: The logistics costs incurred by the country need to be reduced, and currently, it is higher than that of China, the US and European countries, Union Minister Nitin Gadkari said on Friday.
He said the Centre intends to make water transport popular for goods and passengers, bringing down the import cost of petrol and diesel. The said cost touches Rs 16 lakh crore every year, Gadkari said.
Addressing a programme organized by Young Indians and the Institute of Chartered Accountants of India, Gadkari said, "Our first priority is waterways, second railways, third road and lastly aviation. Bringing down logistics costs will help in generating employment in the country."
India's logistics costs take 16 per cent of its GDP, and it is very high, the ministers said. The same is ten per cent for China and around eight per cent for the US and Europe.
The minister for road transport and highways said the Prime Minister Gati Shakti programme would help in coordination among various departments, and a common right of way will be developed.
"There is a need to connect rail and road transport with the waterways," the minister said.
He further said, the use of sustainable fuels, such as bio-diesel, and bio-CNG, must be increased, substituting imports of petrol and diesel. Sugarcane and bamboo cultivation also must be stepped up so that cost-effective fuels like ethanol and bio-ethanol could be produced, which would also reduce pollution.
The minister said the government wants a corruption-free system, which helps in fast-track decision-making.