Startups await unveiling of national logistics policy

In line with last-mile delivery, startups are also hoping for an introduction of EVs in heavy duty commercial vehicles segment

New Delhi: With less than a week for the FY 21-22 Union Budget, the first after the beginning of Covid-19, logistics sector in India is looking forward to the unraveling of National Logistics Policy (NLP). The government's much anticipated scheme has been in pipeline for over a year and is expected to be announced in the coming weeks.

Bizz Buzz spoke to startup logistics companies on how the scheme can be transformative and what impact it can bring in line with the expanding e-commerce sector in India.

Prasad Sreeram, Co-Founder and CEO of COGOS Technologies, a logistics startup in India, said that although the efforts by the government through Startup India initiatives is going in the right direction, a more concrete plan can be put in place for logistics to cater to growing demand in Tier-II and Tier-III cities. "We started our company in 2016, so we are fairly new to the industry. We support lot of startups through our business and service delivery. But government should keep in mind that every startup takes quite some time to make significant progress, maybe a time-span of about five years," Prasad said.

"The Union Budget should also provide the following support - (A) Subsidy/incentives for using EVs for commercial/logistics purposes, (B) Incentives for supplies of essential/food products, and (C) Reduction in excise duty on diesel," he said on his expectations from the upcoming Union Budget.

In line with last-mile delivery, startups are also hoping for an introduction of EVs in heavy duty commercial vehicles segment. The faster adoption and manufacturing of hybrid and EV (FAME) scheme, is in its 2nd phase, has approved EV models including electric four-wheelers and three-wheelers, hybrid four-wheelers, electric three-wheelers, including e-rickshaws, and electric two-wheelers.

Vinodhraj A, CEO of GoFuel, a last-mile fuel delivery startup in India, said, "There has been an opportunity for us given by the Ministry of Petroleum and Natural Gas, Ministry of Commerce and all the OMCs. It is a vertical from the last 50-60 years which has not seen disruption."

"As a startup, I would expect more percentage from the OMCs given what they are giving us right now. But within the co mmission which has been confirmed to us right now, we have worked out entire business model and I think we are in comfortable situation. More commission amount is always welcome but for other entrepreneurs I would recommend to go for mass scale. Having limited number of fleets might become a convenience for the business and customers," he added.