Gati, Allcargo, TCI, Snowman up 2-5% on infrastructure status to logistics sector
Gati, Allcargo Logistics, Transport Corporation, Snowman Logistics and Patel Integrated shares gained 2-5 percent intraday Tuesday after the government has given infrastructure status to logistics sector.
The sector after getting infrastructure status is likely to attract more funding at competitive rates.
“The granting of infrastructure status to the logistics sector will result in higher investments, which will drive the revolution of the segment in India,” Anshuman Magazine, Chairman, India and South East Asia, CBRE said.
With India’s growing economy and boost to the sector, increased movement is expected in the industrial and warehousing segment, he added.
The definition of logistics includes industrial parks, warehouses, cold storages and transportation.
“Both cold chain and warehousing facilities are covered in the announcement and will go a long way in strengthening infrastructure development across India. Coupled with the implementation of the GST, this will provide an impetus to the segment as a whole,” Magazine said.
The government has been working on ways to attract more investments into transport and logistics as part of efforts to bolster infrastructure development in the country.
Amending the existing framework, a notification issued by the Department of Economic Affairs (DEA) has widened the category of infrastructure sub-sectors to “transport and logistics” from the earlier sub-head of “transport”.
Roads and bridges, ports, shipyards, inland waterways, airport, railway track, tunnels, viaducts, terminal infrastructure including stations and adjoining commercial infrastructure are all part of the transport and logistics classification. Urban public transport and logistics infrastructure are also part of it.