Shares of logistics companies surged on Tuesday after the commerce ministry said that the National Logistics Policy has been sent to the Cabinet for approval. The policy's aim is to reduce the high transaction cost of traders and ensure seamless movement of goods across the country.

Share Market Live

NSE

In intra-day deals, Allcargo Logistics surged 13.3 percent, Snowman Logistics rallied 13 percent, Mahindra Logistics gained 7.4 percent, Aegis Logistics added 5.4 percent, Gati advanced 5 percent, Tiger Logistics rose 5 percent, VRL Logistics was up 4.5 percent, and TCI Express rose 2.4 percent. In comparison, the BSE Sensex was trading 0.17 percent or 68 points higher at 39,158.

ALSO READ: Four factors contributing to logistics sector facing the slowdown blues

According to the ministry, two panels will be created to steer logistics-related issues under the National Logistics Policy. The first one will be a commerce minister-led panel on logistics and will have all central government secretaries, while the second panel will be a special secretary-led panel and will have representation from all government departments.

The ministry also said that National Logistics Policy will lead to setting up of a central portal which will provide a facility for an end to end logistics solutions to companies.

The National Logistics policy aims to bring the cost on logistics to 9 percent of the Gross Domestic Product (GDP) as compared to the current 14 percent of the GDP.

Earlier this month, Minister for Commerce and Industry Piyush Goyal said that all transport sectors of railways, civil aviation, roads, and shipping would work towards bringing logistics costs below 10 percent.

Also, track all live market action on CNBC-TV18 Market Blog

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions