Nabard Warehousing scheme finds many takers

Nabard has already sanctioned Rs 2,200 cr for storage and warehousing under the scheme across India

'NABARD Warehousing Scheme-2013-14' (NWS), announced in the Union Budget 2013-14, a dedicated scheme for providing assistance for creation of storage infrastructure with a corpus of Rs 5,000 crore has found many takers including private players. Nabard has already sanctioned Rs 2,200 crore for storage and warehousing under the scheme across India which will lead to creation of additional 8.62 million metric tonnes storage capacity.

Speaking to Business Standard, Dr H K Bhanwala, Chairman, Nabard said, "For storage and warehousing, a fund of Rs 5,000 crore has been created in NABARD, of which Rs 2,200 crore has already been sanctioned which will lead to creation of additional 8.62 mmt(million metric tonnes) storage capacity."

"Currently the beneficiaries under the scheme are cooperatives and marketing federations. Further, we are in process of funding private entrepreneurs for the first time under the scheme those who have shown interest," he added.

On being asked the players who have shown interest, he said, " Three players namely Star Logistics, National Collateral management services and National Bulk Handling Corporation has shown interest in setting up warehouses under the scheme. All these three players would create additional storage space of 48,000 metric tonnes, once their project is accorded approval. Further, all these projects combined, our total funding would touch Rs 3500 crore by March 2015."

In Haryana, it has sanctioned a loan of Rs 60.55 crore for creation of 1.83 lakh Metric tonne capacity Godowns through construction of 16 Godown Projects in 11 districts of Haryana under the scheme.

The NWS scheme, approved by Union Finance Ministry, envisages direct loans to public and private sectors for construction of warehouses, silos, cold storages and cold chain infrastructure.

It is worth mentioning that the Union Finance Minister in his budget speech for the year 2013-14 had announced a dedicated scheme for providing assistance for creation of storage infrastructure with a corpus of Rs 5000 crore. The scheme can be effectively utilised for reducing this storage gap and ensuring proper scientific storage of agriculture commodities.

Funds under this scheme would be utilised for meeting the growing demand for storage capacity for agricultural commodities in the entire country and also in the wake of enactment of National Food Security Act 2013. Storage Infrastructure projects of state governments, state government undertakings, cooperative federations, State level boards, apex marketing bodies, panchayats, private companies and private entrepreneurs etc., will be provided loans from this scheme. The warehouses and cold storages created from this scheme will be compliant to Warehousing Development and Regulatory Authority norms.