Will Delhi's New Logistics Policy Transform Traffic and Air Quality?

Synopsis
Key Takeaways
- Logistics and Warehousing Policy 2025 aims to decongest Delhi.
- Green freight corridors and dedicated logistics hubs are proposed.
- Transition to electric and CNG vehicles for last-mile delivery.
- Policy includes 16 action points for comprehensive overhaul.
- Subsidies to support sustainable practices and technology adoption.
New Delhi, July 27 (NationPress) The government of Delhi is on the verge of unveiling its Logistics and Warehousing Policy 2025, which aims to address key issues such as traffic congestion, environmental pollution, and trade efficiency, according to an official announcement made on Sunday.
The proposed initiatives include the establishment of dedicated logistics hubs, the introduction of green freight corridors, and the implementation of technology-driven solutions. These strategies are designed to alleviate traffic, lower emissions, and enhance the business environment.
Industries Minister Manjinder Singh Sirsa emphasized that the lack of a comprehensive warehousing policy in earlier years has had a detrimental effect on both the economy and environment of the capital.
“For too long, the national capital has been plagued by congested roads, disorganized freight movement, and escalating pollution levels due to the inaction of the previous administration. Traders struggled with outdated systems. Our administration is addressing this with a progressive policy that will establish dedicated logistics hubs, minimize emissions, and facilitate smoother business operations,” he stated.
Delhi manages approximately 10 lakh tonnes of freight daily using 1.93 lakh vehicles, with 21 percent of these contributing to traffic congestion. The bulk of freight is transported by trucks carrying building materials (4,132 vehicles/day), textiles (3,995), fruits and vegetables (2,569), and food products (2,468). Additionally, pharmaceuticals (559) and automobiles (588) also add to the congestion.
Without designated warehousing zones, these vehicles invade city interiors, exacerbating congestion and pollution, according to an official statement.
Sirsa noted that the draft policy suggests relocating warehouses to the outskirts of the city and transitioning last-mile deliveries to electric and CNG vehicles. These actions aim to reduce vehicle emissions and relieve congestion in critical areas such as Azadpur, Ghazipur, Naraina, and Karol Bagh.
The forthcoming policy is built around 16 key action points that seek to transform Delhi’s logistics landscape. Noteworthy initiatives include: 24/7 operation for logistics parks through amendments to the Model Shops Act; digital management of deliveries to optimize truck movement and lessen peak-hour traffic; and the establishment of designated commercial parking areas with loading bays under the PPP model.
The draft also includes plans for the creation of Urban Consolidation and Logistics Distribution Centres (UCLDCs) to aggregate cargo and transition last-mile delivery to clean fuel vehicles.
Sirsa mentioned that the draft policy also aims to combine trade and establishment licenses to streamline processes for warehousing enterprises.
These action points will target critical issues, from truck parking shortages to outdated freight handling practices, enhancing the efficiency and environmental sustainability of Delhi’s supply chain, he added.
The draft policy also presents a holistic array of subsidies designed to support industry stakeholders and promote sustainable practices.
These incentives include discounts on land leases to encourage traders to relocate warehouses from crowded city centers, subsidies for technology integration, and financial support for improving cold chain and storage facilities, Sirsa concluded.