Punjab Logistics & Warehousing Policy 2026
The Government of Punjab notified the Industrial and Business Development Policy (IBDP) 2026 on March 8, 2026, which includes a dedicated Punjab Logistics & Warehousing Policy 2026 designed to strengthen the state’s position as a premier logistics hub.
Below are the key changes and provisions for the logistics sector under this new policy:
1. Fiscal Incentive Framework
The new policy introduces a structured package of incentives for eligible new units:
- Overall Incentive Capping: Total fiscal incentives are capped at *100% of the Fixed Capital Investment (FCI)* or *INR 500 Crore*, whichever is lower.
- Capital Subsidy: New units for *Logistics Parks, Multi-Modal Logistics Parks (MMLPs), and Cold Chain Facilities* are eligible for a capital subsidy of up to 20% of FCI, subject to a maximum cap of INR 10 crore.
- Employment Generation Subsidy (EGS): Warehouses are eligible to receive EGS for a period of five years from the date of commercial production.
- Exemptions: Eligible units receive *100% exemption* from *Electricity Duty, **Stamp Duty* (for land/building purchase or lease), and *Change of Land Use (CLU) charges*.
2. Eligibility Criteria and Thresholds
The policy defines specific categories and minimum requirements to qualify for these incentives:
- Logistics Parks: Must be developed on a minimum of *20 acres* with a total investment of at least *INR 25 crore*.
- Multi-Modal Logistics Parks (MMLPs): Must cover at least *50 acres* with a minimum investment of *INR 100 crore* and have access to more than one mode of transport.
- Warehouses: Must have a minimum of *30,000 sq. ft. of storage* at the ground level and cannot be for self-consumption.
- Truck Terminals: Requires a minimum area of *10 acres* and a parking capacity for at least 100 trucks.
- Restriction on Expansion: Unlike some other sectors, the policy explicitly states that *any existing units undertaking expansion shall not be eligible for incentives* under this sectoral policy.
3. Strategic Infrastructure and Governance
The state aims to leverage its existing strengths, such as having the highest rail density in India and being ranked 3rd in the national “Logistics Ease” rankings.
- Sectoral Oversight: A specific sectoral committee for Logistics & Warehousing has been formed, chaired by Capt. Ashwani Nayar of Hind Terminals.
- Core Objectives: The policy focuses on building world-class logistics infrastructure, including cold storage and multi-modal hubs, to *reduce logistics costs and boost supply chain efficiency*.
- Connectivity Improvements: The government is committed to strengthening the “last-mile connectivity” between industrial clusters and logistics nodes, including upgrading Inland Container Depots (ICDs) and Container Freight Stations (CFSs).
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