New Delhi, Jul 18 (IANS): The government has decided to increase the maximum load carrying capacity of all new heavy vehicles by 20-25 per cent, Road Transport and Highway Minister Nitin Gadkari said on Tuesday.

He said this would bring down the logistic cost in the country by 2 per cent and will help in increasing the "ease of doing business".

"Logistic cost in India is 16 to 18 per cent of the GDP whereas it is 8 to 10 per cent in developed countries. This decision will reduce transport cost by 2 per cent and will revolutionise the transport sector," Gadkari told reporters here.

He added that norms for axle load were last notified in 1983 and there has been no change over the last 35 years despite vast improvements in technology.

"Also, there was need to harmonize axel load with international standards. And we have taken this decision in line with international standards and best global practices," Gadkari said.

"The decision will increase capacity of transport vehicles by 20 to 25 per cent and will result in saving time and fuel cost," he said.

The Minister added the decision will also go a long way in checking over-loading of vehicles.

"After this, we will focus on strong enforcement to check over-loading. We are also sending circulars to state governments to enforce this," he added.