Delhi is gearing up for a significant overhaul of its logistics and supply chain infrastructure with the introduction of the ‘Logistics and Warehousing Policy 2025’, as per recent reports from The Times of India. This ambitious policy initiative, spearheaded by the Government of Delhi-NCT and its Minister Mr. Manjinder Singh Sirsa, aims to decongest the city, curb vehicular emissions, and modernise the capital’s freight systems using sustainable and tech-driven strategies.

Background and Purpose of the Policy

Delhi currently manages a massive 10 lakh tonnes of freight daily, involving nearly 1.93 lakh vehicles, with about 20% of the traffic merely transiting through the city. This has led to major congestion and contributed significantly to the city’s worsening air quality, especially in high-density areas such as Azadpur, Ghazipur, Naraina, and Karol Bagh.

To combat this, the Logistics and Warehousing Policy 2025 lays out a strategic roadmap to streamline urban freight operations, reduce pollution levels, and integrate Delhi’s logistics infrastructure with the broader objectives of the National Logistics Policy.

Key Objectives of the Policy

The overarching goals of the new logistics policy include:

• Easing traffic congestion by decentralising and organising urban freight systems.

• Cutting vehicular emissions through the promotion of green logistics solutions.

• Facilitating smooth last-mile deliveries using clean energy vehicles.

• Enhancing supply chain efficiency by modernising logistics hubs and infrastructure.

• Supporting industry stakeholders through targeted incentives and regulatory reforms.

Major Features and Action Points

The policy document outlines 16 core action points to ensure a well-rounded and effective implementation. These include:

1. Relocation of Warehouses

Warehouses will be moved from congested city centres to the urban periphery, where land availability is higher, and traffic impact is minimal. Subsidies and land lease discounts will be provided to encourage traders to shift operations.

2. Creation of Urban Consolidation and Logistics Distribution Centres (UCLDCs)

New UCLDCs will serve as consolidated freight hubs to streamline goods movement. These centres will focus on aggregation, redistribution, and short-distance dispatch, reducing inner-city freight movements.

3. Promotion of Electric and CNG Vehicles

The policy strongly advocates for the use of electric and compressed natural gas (CNG) vehicles in last-mile delivery services. This aims to reduce particulate matter emissions and enhance the adoption of green mobility practices.

4. Digital Delivery Management System

A technology-enabled digital platform will be implemented for efficient freight tracking, delivery scheduling, and real-time data analytics. This will ensure timely dispatch and efficient route planning.

5. Commercial Parking Zones with Loading Bays

Designated truck and freight parking areas equipped with loading/unloading bays will be developed under a Public-Private Partnership (PPP) model. These areas will ease illegal roadside parking and facilitate smoother cargo movement.

6. 24/7 Logistics Park Operations

To enhance supply chain agility, the policy proposes round-the-clock operations at major logistics parks. Amendments to the Model Shops and Establishments Act will support this move, ensuring regulatory compliance for 24/7 functioning.

7. Incentives for Cold Chain and Storage Upgrades

The government will offer financial support to upgrade cold chain logistics, warehouse insulation systems, and storage facilities. The goal is to improve shelf-life and quality assurance for perishable goods.

8. Green Energy Adoption

Incentives will also be provided for:

• Installation of solar panels on warehouse rooftops.

• Adoption of energy-efficient lighting and HVAC systems.

• Development of net-zero carbon logistics parks.

Integration with the National Logistics Policy

The Delhi Logistics and Warehousing Policy 2025 is aligned with the National Logistics Policy, which envisions reducing India’s logistics cost from 13-14% to under 10% of GDP. Delhi's plan specifically targets urban bottlenecks and aligns with India’s broader goals for infrastructure modernisation, digital logistics management, and green logistics transformation.

Impact on Key Sectors

Retail and E-commerce

Retail chains and e-commerce companies stand to benefit significantly through:

• Faster delivery timelines.

• Reduced last-mile costs.

• Greater predictability in supply chain operations.

Agriculture and Perishables

With incentives for cold storage facilities, agri-produce can now be preserved more efficiently, potentially reducing post-harvest losses and increasing farm-to-fork efficiency.

Small and Medium Enterprises (SMEs)

SMEs, often burdened with high logistics costs and operational delays, will gain from:

• Improved access to shared logistics infrastructure.

• Tech-enabled platforms for cost-effective transportation.

• Ease of doing business through regulatory simplification.

Employment Generation

With the rise of logistics parks, UCLDCs, and green energy projects, the policy is expected to generate thousands of new jobs, particularly in:

• Last-mile delivery.

• Fleet management.

• Warehouse operations.

• Tech and analytics.

Challenges and Implementation Strategies

While the policy is comprehensive, implementation will require:

• Robust inter-agency coordination, especially between the Department of Industries, Transport Department, and Urban Local Bodies.

• Transparent land allocation processes.

• Public-private partnerships (PPP) to attract private capital for infrastructure development.

• Continuous monitoring and stakeholder feedback mechanisms to adapt and improve execution over time.

Environmental and Social Impact

The environmental benefits are likely to be substantial:

• Lower CO₂ and NOx emissions due to EV and CNG adoption.

• Cleaner air quality in high-density logistics zones.

• Reduced noise pollution from freight traffic.

On the social front, benefits include:

• Improved road safety due to better truck parking and loading practices.

• Higher quality of life for urban residents due to reduced congestion.

• Greater economic opportunity for logistics service providers and MSMEs.

Conclusion

The Delhi Logistics and Warehousing Policy 2025 is a visionary step towards modernising the capital’s supply chain, alleviating urban congestion, and cutting harmful emissions. By promoting technology-driven logistics, sustainable freight practices, and industry participation, this policy aligns local actions with national objectives under the National Logistics Policy.

Its holistic approach, covering everything from green freight corridors to warehouse relocation, has the potential to transform Delhi into a model urban logistics hub for other Indian cities to emulate. The success of this initiative will depend on timely implementation, sustained funding, and ongoing stakeholder collaboration, but the roadmap for a cleaner, more efficient Delhi is clearly laid out.

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