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Logistics stocks to gain as sector to get infra status

Shares of logistic stocks are set to extend gains today after the government granted infrastructure status to the sector, that it is expected to reduce credit costs for these companies.

The department of economic affairs through a notification has expanded the category of infrastructure sub-sectors to include transport and logistics, moving them from earlier sub-head of transport. The definition of logistics, according to the notification, includes industrial parks, warehouses, cold storage, and transportation.

According to the government notification, multimodal logistics parks comprising inland container depot (ICD) with a minimum investment of Rs 50 crore and minimum area of 10 acre come under logistics infrastructure.

Also, a cold chain facility having an investment of at least Rs 15 crore as well as warehousing facility with investment of minimum Rs 25 crore would come under logistics infrastructure. In both cases, facilities should have a minimum required area.