How the Tamil Nadu Logistics Policy 2024 is Shaping the Future of Warehousing
In India’s rapidly evolving commercial landscape, industrial warehousing and integrated logistics have become indispensable to the supply chain. From building a strong inventory to enhancing last-mile delivery, these functions directly influence consumer satisfaction. Recognising this, the Tamil Nadu State Government introduced its Logistics Policy 2024 to build a robust logistics ecosystem.
Below, we explore the policy's key features and its impact on the growing demand for industrial & logistics parks.
Driving Down Logistics Costs Through Private Participation
A core objective of the policy is to reduce logistics costs in Tamil Nadu by encouraging private sector involvement including logistics companies. To achieve this, it offers fiscal incentives to trucking companies, freight stations, logistics companies, warehouse operators, start-ups and technology providers. These measures aim to boost trade efficiency, create new business opportunities and enhance operational speed.
The policy’s initiatives are expected to spur demand for Grade A warehouses and logistics parks, as businesses increasingly adopt modern solutions. The ultimate goal is a cost-efficient logistics environment that supports Tamil Nadu’s ambition to remain a preferred destination for manufacturing & other industries.
Strengthening First and Last Mile Connectivity
Tamil Nadu’s superior logistics performance stems from its focus on improving first and last-mile connectivity, particularly in industrial clusters and logistics hubs. Key initiatives include[1]
- Expansion of Roads: Over 2,016 km of road infrastructure under the Comprehensive Road Infrastructure Development Programme (CRIDP).
- Industrial Ecosystem Fund: Dedicated funding to enhance road connectivity for industrial clusters.
- Chennai Peripheral Ring Road: Improves access to Ennore and Kattupalli Ports, facilitating seamless cargo movement.
- Truck Terminals at Chennai and Tuticorin Ports: Establishing centralised truck terminals/plazas to streamline port logistics.
Despite these advancements, stakeholder consultations highlight opportunities for further enhancements, especially in connectivity to Chennai and Tuticorin ports.
Boosting Multimodal Connectivity and Infrastructure
The state is investing heavily in multimodal infrastructure to optimise cargo movements[1]
- Rail Connectivity: The proposed Guduvancheri-Avadi rail line aims to increase rail freight traffic and reduce logistics costs for nearby industrial clusters.
- Greenfield Airport at Parandur: Designed to augment air cargo capacity in the Chennai region, supporting growing demand for domestic and international trade.
- Multi-Modal Logistics Parks (MMLPs): Development is underway in Coimbatore and Mappedu (Chennai) to streamline operations for logistics companies and integrate various transport modes.
These efforts will provide businesses with efficient access to logistics park, warehouses & in-city distribution centres and major consumer markets such as Oragadam Industrial Area, SIPCOT & Sriperumbudur Industrial Area.
Cold Chain and Export Infrastructure Development
Recognising the need for integrated logistics, Tamil Nadu is investing in cold chain facilities and processing capabilities across multiple districts, including Ramanathapuram, Tuticorin, Dindigul, Theni and Tirunelveli[1]. These initiatives aim to support perishable goods, ensuring quality and timely delivery for both domestic and export markets.
Simplifying Approvals for Ease of Business
Tamil Nadu’s extension of the single-window clearance system under Guidance Tamil Nadu and FaMe TN (Facilitating MSMEs of Tamil Nadu) departments to logistics operations promises a smoother approval process. Businesses can apply for multiple approvals via a single portal, significantly reducing time and administrative hurdles[2]. This improvement is expected to further the state’s goal of creating a business-friendly environment and attracting more investments in industrial warehousing and logistics parks.
Upskilling the Workforce and Enhancing Welfare
To address skill gaps in the logistics sector, the policy focuses on workforce development. It aims to upskill workers and provide medical and health insurance for heavy vehicle drivers registered in the state. By fostering a skilled and protected workforce, the policy supports sustained growth in logistics and warehousing management solutions.
Enhancing Tamil Nadu’s Competitive Edge in Logistics
Beyond operational improvements, the policy aims to maintain Tamil Nadu’s high ranking in the LEADS (Logistics Ease Across Different States) index. Key strategies to achieve this include:
- Leveraging GIS for Route Optimisation: Advanced mapping for efficient logistics operations.
- State Master Plan under PM Gati Shakti: Integrated infrastructure planning to enhance connectivity.
- Development of SIPCOT-Led Industrial Parks: Expanding industrial infrastructure across the state.
Lodha’s Role in Transforming Warehousing and Logistics
At Lodha, we recognise the transformative potential of Tamil Nadu’s Logistics Policy. Lodha Industrial and Logistics Parks (LILP) at Oragadam, Chennai is strategically located in Oragadam Industrial Area & close to Sriperumbudur Industrial Area, to serve major consumer hubs and transit routes. Designed with flexibility and scalability in mind, our Grade A warehousing facilities help businesses streamline operations, reduce costs and achieve their goals for warehouse companies in Chennai.
Lodha, India’s leading real estate developer, now setting benchmarks in the industrial and logistics sector with state-of-the-art warehousing solutions & best industrial parks in India that have unparalleled connectivity and operational excellence. LILP Oragadam allows businesses to meet their bulk warehousing needs and streamline logistics while also designed for seamless in-city distribution and last-mile delivery. Located close to various avenues of transport, from airports and ports to roadways and highways, Lodha Industrial & Logistics Park is strategically located in the prime industrial area in Chennai – Oragadam industrial corridor to incentivise manufacturing in Chennai, expedite deliveries and increase