India: Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1)
The Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program is a programmatic policy-based loan (PBL) to support the government undertake wide ranging reforms in the logistics sector in India. The program aims to strengthen the institutional and policy framework for inter-ministerial coordination and planning for incentivizing private sector participation in multimodal logistics projects (MMLPs), improving efficiencies in external trade logistics, and encouraging the use of smart and automated systems for improved service delivery. The program is fully aligned with ADB's India Country Partnership Strategy, 2018-2022, boosting economic competitiveness to create more and better jobs (strategic pillar 1), and cross-cutting themes related to private sector participation in transport and logistics; and encouraging private financing of infrastructure projects.
Project Details
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Project Officer
Gunawardhena, Manohari
South Asia Department
Request for information -
Approval Date
8 December 2022 -
Country/Economy
India -
Sector
- Transport
Related Projects
| Project Name | Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1) | ||||||||
| Project Number | 55154-001 | ||||||||
| Country / Economy | India |
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| Project Status | Approved | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Transport / Multimodal logistics |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||
| Description | The Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program is a programmatic policy-based loan (PBL) to support the government undertake wide ranging reforms in the logistics sector in India. The program aims to strengthen the institutional and policy framework for inter-ministerial coordination and planning for incentivizing private sector participation in multimodal logistics projects (MMLPs), improving efficiencies in external trade logistics, and encouraging the use of smart and automated systems for improved service delivery. The program is fully aligned with ADB's India Country Partnership Strategy, 2018-2022, boosting economic competitiveness to create more and better jobs (strategic pillar 1), and cross-cutting themes related to private sector participation in transport and logistics; and encouraging private financing of infrastructure projects. The program also directly supports ADB's Strategy 2030 operational priority (OP)1: addressing remaining poverty and reducing inequalities; OP2: accelerating progress in gender equality; OP3: tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability (para. 14); OP6: strengthening governance and institutional capacity (paras. 12-14); and OP7: fostering regional cooperation and integration. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Efficient movement of goods from supply centers to consuming markets enables sustainable economic growth and higher employment by making trade more competitive, improving producer margins, reducing wastages during transit, improving demand, and ensuring reduced carbon emissions. The logistics sector contributed 13.5% to India's' gross domestic product and employed 22 million people in 2017. In logistics performance, India ranked 44 out of 160 countries in 2018, thus being among the top performers in the lower-middle income category. Given its importance as a key enabler for manufacturing growth, the government has accorded high priority to logistics sector reforms and infrastructure development as evident from recent policy initiatives. However, India lacks an overarching logistics policy and institutional mechanism for coordinated logistics sector development. This has led to uncoordinated and sub-optimal development of logistics infrastructure, discouraged private investment in modern and efficient infrastructure such as Multi modal Logistics Parks (MMLP) and cold chains In addition, it has increased the regulatory burden for the users to comply with regulations specific to each government ministry or agency. Logistics planning and performance has suffered in the absence of integrated information systems. Inefficiencies in processes related to external trade logistics cause congestion and delays. The sector is predominantly unorganized and suffers from scale disadvantages. Fragmentation of services across small operators poses many challenges. It impedes the adoption of modern technology and skills. Transaction costs and emissions are higher, and the user must deal with separate operators for each transport mode. Coupled with inefficient road and traffic management for movement of goods, service delivery can be unreliable and compromised. Insurance claims for delays or damages could be difficult when more than one transport mode or operators are involved. The SMILE program aims to support the government in addressing these bottlenecks through the program's policy program. |
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| Description of Outcome | |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Delhi, India |
| Safeguard Categories | |
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| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
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| Consulting Services | It is estimated that 15 person-months of staff and 3 person-months of consultant resources will be required for preparatory work. |
| Procurement | Procurement, advance contracting, and retroactive financing are not expected. |
| Responsible ADB Officer | Gunawardhena, Manohari |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SARD |
| Executing Agencies |
Ministry of Commerce and Industry |
| Timetable | |
|---|---|
| Concept Clearance | 10 Aug 2021 |
| Fact Finding | 28 Jun 2021 to 12 Jul 2021 |
| MRM | 20 Oct 2022 |
| Approval | 08 Dec 2022 |
| Last Review Mission | - |
| Last PDS Update | 12 Dec 2022 |
Loan 4275-IND
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 08 Dec 2022 | 23 Dec 2022 | 30 Dec 2022 | 30 Jun 2023 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 250.00 | Cumulative Contract Awards | |||
| ADB | 250.00 | 20 Jan 2023 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 20 Jan 2023 | 0.00 | 0.00 | 0% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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| Title | Document Type | Document Date |
|---|---|---|
| Loan Agreement (Ordinary Operations) for Loan 4275-IND: Strengthening Multimodal and Integrated Logistics Ecosystem (Subprogram 1) | Loan Agreement (Ordinary Resources) | Dec 2022 |
| Program Agreement for Loan 4275-IND: Strengthening Multimodal and Integrated Logistics Ecosystem (Subprogram 1) | Project/Program Agreements | Dec 2022 |
| Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1): Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2022 |
| Strengthening Multimodal and Integrated Logistics Ecosystem (Subprogram 1): Concept Paper | Concept Papers | Aug 2021 |
| Strengthening Multimodal and Integrated Logistics Ecosystem (Subprogram 1): Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Aug 2021 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
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Evaluation Documents See also: Independent Evaluation
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