Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

‘All major ports to get LDB services’


Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

From UPSC perspective, the following things are important:

Prelims level: Logistics Data Bank, Indian Ports Association (IPA), Radio Frequency Identification Tag (RFID), ease of doing business, Special Purpose Vehicle, Delhi Mumbai Industrial Corridor (DMIC)

Mains level: Various initiatives that are being undertaken to improve efficiency as well as ease of doing business

The Logistics Data Bank’s (LDB) services to be extended to all major ports in India

  1. Logistics Data Bank was begun to help track containers, reduce transaction costs
  2. Discussions between the Government and the Indian Ports Association (IPA) have begun in this regard

What is LDB project?

  1. As part of the LDB project, each container is attached to a Radio Frequency Identification Tag (RFID) tag and tracked through RFID readers
  2. This, in turn, helps importers and exporters to track their goods in transit
  3. It helps reduce the overall lead time of container movement, besides bringing down transaction costs that consignees and shippers incur
  4. LDB project covers the entire movement through rail or road till the Inland Container Depot and Container Freight Station.

Objective and implementation

  1. The LDB project’s objective is to ensure greater efficiency in the country’s logistics sector through the use of information technology
  2. The LDB project was unveiled in July 2016 as an important ‘ease of doing business’ initiative to boost the country’s foreign trade and bring about greater transparency
  3. The project is implemented through a Special Purpose Vehicle called Delhi Mumbai Industrial Corridor Development Corporation Logistics Data Services Ltd. (DLDSL) — jointly (50:50) owned by the Delhi Mumbai Industrial Corridor (DMIC) Trust and Japanese IT services major NEC Corporation

Also linked to railways

  1. The LDB System has been integrated with the Freight Operations Information System of railways
  2. The move will help users track in-transit rail container movement


Special Purpose Vehicle

  1. The name SPV is given to an entity which is formed for a single, well-defined and narrow purpose
  2. No SPV can be formed for an unlawful purpose, or for undertaking activities which are contrary to the provisions of law or public policy
  3. An SPV is mainly formed to raise funds by collateralizing future receivables
  4. An SPV is, primarily, a business association of persons or entities eligible to participate in the association
  5. Technically, an SPV is a company. It has to follow the rules of formation of a company laid down in the Companies Act
  6. It has all the attributes of a legal person. It is independent of members subscribing to the shares of the SPV
  7. An SPV can also be a partnership firm

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