Delhi government unveils draft logistics policy to boost efficiency

The Delhi government is set to unveil its Logistics and Warehousing Policy 2025, aimed at transforming how goods move through the city. The policy’s draft outlines forward-looking initiatives to decongest traffic, cut pollution levels, and boost trade efficiency. Key strategies include establishing dedicated logistics hubs, developing green freight corridors, and deploying smart, tech-enabled solutions to streamline freight operations.

This visionary approach is expected to reshape Delhi’s logistics landscape—making the city cleaner, faster, and more business-friendly.

Delhi currently handles 10 lakh tonnes of freight per day through 1.93 lakh vehicles, 21 per cent of which is pass-through traffic. The largest share is carried by trucks transporting building materials (4,132 vehicles/day), textiles (3,995), fruits and vegetables (2,569), and food products (2,468). Even pharmaceuticals (559) and automobiles (588) contribute to congestion. Without proper warehousing zones, these vehicles enter city interiors, clogging major routes and worsening pollution.

Industries Minister Sirsa informed, the draft policy proposes relocating warehouses to the periphery, consolidating freight at modern UCLDCs, and shifting last-mile deliveries to electric and CNG vehicles. These measures will reduce vehicular emissions and alleviate congestion at key hotspots, including Azadpur, Ghazipur, Naraina, and Karol Bagh, resulting in a significant improvement in air quality.

The upcoming policy for Delhi’s logistics ecosystem is built around 16 key action points, designed to transform the sector. Key initiatives include enabling 24/7 operations at logistics parks through amendments to the Model Shops Act. The policy also aims to optimise truck movement and reduce peak-hour traffic through digital delivery management systems. Another initiative is the creation of designated commercial parking areas with loading bays under the Public-Private Partnership (PPP) model. Additionally, the development of Urban Consolidation and Logistics Distribution Centres (UCLDCs) will help consolidate cargo and transition last-mile delivery to clean fuel vehicles. Lastly, the policy proposes merging trade and establishment licenses to streamline processes and reduce red tape for warehousing businesses.

The draft policy also outlines a comprehensive set of subsidies to support industry players and encourage sustainable practices. These include land lease discounts to incentivise traders relocating warehouses from congested city centres, subsidies for technology adoption, and financial support for upgrading cold chains and storage facilities.

The policy offers special incentives for green energy and eco-friendly initiatives, including the installation of solar panels on warehouses, the adoption of electric and CNG-powered freight vehicles, and the implementation of energy-efficient building designs. These measures align with Delhi’s climate goals and are expected to significantly reduce emissions from the logistics sector. The policy, developed by the Department of Industries, seeks to streamline regulations, integrate advanced logistics technology, and upgrade infrastructure in line with the National Logistics Policy. It aims to resolve years of fragmented systems that have long plagued Delhi’s supply chain.