Experts See APLINC, Logistics Fund as Key AP Reform
The Andhra Pradesh government has decided to set up the AP Logistics Infrastructure Corporation (APLINC) and launch the AP Logistics Fund. The move has received a positive response from industry and finance experts. They see it as a major institutional reform in infrastructure development.
Experts said the initiative addresses long-standing gaps in logistics planning and funding. APLINC will bring logistics parks, multimodal hubs, warehousing, and related infrastructure under one professional framework. This is expected to improve coordination and accelerate project execution. It will also support the State’s industrial growth plans.
The AP Logistics Fund has also attracted strong interest. It is structured as an Alternative Investment Fund. The Andhra Pradesh government will act as the initial sponsor with a stake of up to 20 percent. Infrastructure finance specialists said the government’s role as an anchor investor improves credibility. It also reduces risk perception. This is crucial for attracting long-term institutional capital.
“The AIF structure works well for logistics projects. These projects need high upfront investment but deliver stable returns over time. Government participation helps attract pension funds, insurance companies, and other institutional investors,” said infrastructure finance expert Ramesh Durani.
Logistics experts said the initiative could strengthen Andhra Pradesh’s position as a regional logistics hub. They highlighted the State’s long coastline, port infrastructure, and improved road and rail connectivity. These factors give Andhra Pradesh a natural advantage. “What was missing was a focused institutional system to plan and fund projects in an integrated way,” said supply chain expert Prof. Shailendra.
Experts said the creation of APLINC and the AP Logistics Fund signals a shift towards a more structured and investment-led approach to infrastructure development. With strong governance and transparency, they added, the model could serve as a reference for other States looking to expand logistics and industrial infrastructure.