India: Support for Strengthening Multimodal and Integrated Logistics Ecosystem

Sovereign Project | 55154-002

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 interministerial coordination and planning for incentivizing private sector participation in multimodal logistics projects, improve efficiencies in external trade logistics, and encourage the use of smart and automated systems for improved service delivery. The government has requested a regular loan of $500 million from ADB's ordinary capital resources to help finance the program.

Project Details

Project Name Support for Strengthening Multimodal and Integrated Logistics Ecosystem
Project Number 55154-002
Country / Economy India
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6822-IND: Support for Strengthening Multimodal and Integrated Logistics Ecosystem
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport / Multimodal logistics

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 interministerial coordination and planning for incentivizing private sector participation in multimodal logistics projects, improve efficiencies in external trade logistics, and encourage the use of smart and automated systems for improved service delivery. The government has requested a regular loan of $500 million from ADB's ordinary capital resources to help finance the program. The proposed programmatic PBL modality with two subprograms of $250 million each, in FY2022 and FY2024, respectively, supported by the attached transaction TA, is appropriate because the (i) program will support crucial structural reforms to strengthen institutions, coordination, and processes; (ii) structural reforms need proper sequencing to ensure sustainability; and (iii) government has shown strong commitment to reforms.

This lending proposal was not included in ADB. 2020. Country Operations Business Plan: India, 2021 2023. Manila. The government requested ADB's financial assistance in a letter of 12 March 2021 as an addition to the plan. The South Asia Department confirmed that such financial assistance can be accommodated in the 2021 resource envelope.

Project Rationale and Linkage to Country/Regional Strategy The proposed transaction TA is being processed at the request of the Government of India to meet key capacity building needs, strengthen sector institutions, and conduct studies to further deepen reforms and develop policy framework. The TA will support the implementing agencies in achieving the policy actions under subprogram 2 of the ensuing SMILE program. The TA will thus provide capacity building support to foster coordination among the different tiers of government and among the various institutions. The TA will also extend support to diagnose emerging challenges in the sector and identify policy initiatives. The TA activities will build on and/or carryforward activities commenced under earlier initiatives and replicate some successful interventions particularly in logistic planning and technology use for improving efficiency.
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 Nation-wide, Delhi
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 ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.
Procurement Procurement, advance contracting, and retroactive financing are not expected.
Responsible ADB Officer Karan, Navendu
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Commerce and Industry
Room No. 132, Udyog Bhawan, New Delhi 110011, India
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 10 Nov 2021
Last Review Mission -
Last PDS Update 10 Nov 2021

TA 6822-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2021 30 Dec 2021 30 Dec 2021 31 Dec 2024 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 17 Jun 2022 0.00

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

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