India : Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1)

Sovereign Project | 55154-001

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

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)
Ordinary capital resources US$ 250.00 million
Loan: Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1)
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.
Responsible ADB Officer Gunawardhena, Manohari
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

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 Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 250.00 Cumulative Contract Awards
ADB 250.00 13 Nov 2023 250.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 13 Nov 2023 250.00 0.00 100%

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.