Project Name
Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1)
Project Number
55154-001
Country / Economy
  • India
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4275-IND: Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1)
Source Amount
Ordinary capital resources US$ 250.00 million
Loan: Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1)
Source Amount
Korea Exim Bank US$ 100.00 million
Operational Priorities
  • OP1: 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
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Transport / Multimodal logistics

Gender
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.

Impact

Project Outcome

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

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

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.

Contact

Responsible ADB Officer
Khatiwada, Sameer
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
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

Funding

Loan 4275-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2022 23 Dec 2022 23 Mar 2023 30 Jun 2023 - 19 May 2023
Financing Plan
  Total (Amount in US$ million)
Project Cost 250.00
ADB 250.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 21 Mar 2024 250.00 0.00 100%
Cumulative Disbursements 21 Mar 2024 250.00 0.00 100%
 
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Source URL: https://www.adb.org/projects/55154-001/main