Economy Prelims Plus
Why is in news? PM hails role of Unified Logistics Interface Platform (ULIP) in transforming India’s logistics sector
Logistics has been given special focus in the last few years, and many measures in terms of hard and soft infrastructure have been taken to improve the logistics scenario of India.
However, an integrated view of the Indian logistics value chain is necessary and a unified system by the interconnection of the IT systems of various union ministries, state departments, governing bodies, and private service providers is required.
Additionally, for stakeholders to receive logistics-related services, visibility, authorizations, and certifications of the cargo seamlessly, all IT systems need to be interconnected.
Unified Logistics Interface Platform (ULIP) was launched in 2022 as a part of the ‘National Logistics Policy (NLP)’.
It is designed to enhance efficiency and reduce the cost of logistics in India by creating a transparent, one window platform that can provide real-time information to all stakeholders.
It was emphasized that the solution should have visibility of multi-modal transport and all the existing systems should be integrated with the ULIP system to create a National Single Window Logistics Portal.
It will provide real-time monitoring of cargo movement and ensure the confidentiality of data with end-to-end encryption.
Three key components:
Integration with existing data sources of ministries: As authorization, compliance and clearance are some of the critical activities of Logistics; the integration with data points of ministries shall enable a holistic view and interlink the handshaking points.
Data exchange with private players: To enable the private players, logistics service providers, and industries to utilize the data available with ULIP and at the same time share their data (transportation, dispatch, delivery, etc.) with ULIP, thereby streamlining the processes to bring better efficiency through data exchange.
Unified document reference in the supply chain: To enable a single digitized document reference number for all the documentation processes in a single platform.
ULIP shall enable start-ups and private organizations to build the presentation layer, encompassing various use-cases to serve the service, trade and logistics service providers.
ULIP Mandate:
ULIP has a dedicated portal that makes the process of data request simpler, faster, and transparent.
It is designed to bring all modes of transportation under a single window and connect all stakeholders to provide real-time visibility information.
At present 33 systems from seven ministries are integrated through 106 Application Programming Interfaces covering more than 1600 data fields for usage by the stakeholders.
It is to be leveraged to bring down logistics costs and improve efficiency.
National Logistics Policy (NLP):
The Finance Minister Nirmala Sitharaman mentioned the need of a comprehensive National Logistics Policy (NLP) in her Union Budget 2020-21 Speech.
The need for a national logistics policy was felt since the logistics cost in India is high as compared to other developed economies.
It is imperative to reduce the logistics cost in India for improving the competitiveness of Indian goods both in domestic as well as export markets.
Reduced logistics cost improves efficiency cutting across various sectors of the economy, encouraging value addition and enterprise.
National Logistics Policy is a comprehensive effort to address issues of high cost and inefficiency by laying down an overarching interdisciplinary, cross-sectoral and multi-jurisdictional framework for the development of the entire logistics ecosystem,
National Logistics Policy 2022 aims to ensure seamless movement of goods and services across the country and cut elevated logistics costs, often considered the biggest structural bottleneck for both external and internal trade in India.
National Logistics Policy 2022 aims to trim the country’s logistics costs from as much as 13-14 per cent of its GDP to a single digit over the next few years.
The National Logistics Policy formulated by the Commerce and Industry Ministry.