Nabard today released Rs 30 crore to National Collateral Management Services (NCML) out of its Warehousing Infrastructure Fund.
This disbursement is a part of the overall sanction of Rs 128 crore to NCML by Nabard for construction of 25 warehouses in 10 states for creation of scientific warehousing capacity of 3,74,500 tonne, a statement said.
This is the first such disbursement by the development bank to a private sector entity in the warehousing sector.
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Nabard chairman H K Bhanwala said, "We have emerged as the largest player in the field of warehouse financing by a judicious and innovative utilisation of both Rural Infrastructure Development Fund and Warehouse Infrastructure Funds set up by the government in NABARD.
"We see this development as significant not only because of the promise of enhanced storage capacity but also allows us to leverage the dynamism of the private sector."
The scientific warehousing infrastructure will lead to better price discovery for farmers and reduce their exposure to price risks of market due to lack of scientific storage capacity.
NCML Managing Director and CEO Sanjay Kaul said, "The project is expected to be fully completed in 2015-2016. We expect to have future collaborations with NABARD, particularly in farmer-centric projects.
