The Central Warehousing Corporation (CWC), which operates under the Ministry of Consumer Affairs, Food and Public Distribution, is currently working on a plan to monetise and modernise its warehouses throughout India as part of the National Monetisation plan.
The ambitious programme aims to attract investments worth over Rs 1,500 crore in the agriculture and allied activities sector.
The plan includes the construction of warehousing facilities in 80 important locations in the country.
This will be done through a public-private partnership (PPP) using the design build finance operate and transfer (DBFOT) model. The concessionaire will be responsible for managing and operating the facilities for a period of 45 years.
Bids have been requested for a nation-wide warehousing monetisation programme, with the aim of completing the entire process by the end of December.
As per Economic Times report, Amit Kumar Singh, managing director, CWC, stated, “We are monetising 54 sites across the country in the first stage and will add more than 20 to the pipeline in the next stage. We expect the entire process to bring in investments worth over Rs 1,500 crore that will help boost operational efficiencies, technology, innovation, and complete digitisation,”
CWC's plan involves offering encumbrance-free sites covering 200 acres, with clear titles and no need for land use changes. These pre-approved warehousing sites are available in tier I cities (46 acres), tier II cities (72 acres), and tier III towns (81 acres).
Of the total sites, 21 sites are spread over five acres each, seven sites are spread over three-five acres each, while some sites are less than three acres each.
Over the past decade, India's warehousing sector has undergone significant transformation, evolving from unorganised godown structures to becoming a prominent high-grade storage and logistics facilities.
The growth of third-party logistics (3PL) companies and the rapid expansion of retail and e-commerce have emerged as the primary drivers of the Indian warehousing market.
The lease rentals for logistic spaces in the top eight markets have experienced growth during the half year ended in September, indicating a resilient demand for warehousing.
Although occupier traction has slowed down in the current analysis period, rent growth across these markets has remained relatively healthy since March.
According to a study by Knight Frank India, Pune and Chennai experienced the highest growth with 4 per cent and Ahmedabad with a 3 per cent growth in the span of six months.
However, the overall volume of space transacted in the top eight markets dropped by 10 per cent compared to the previous year, with a total of 23 million square feet transacted in the first half of the year ending in September. Out of these transactions, 53 per cent were for Grade A assets.
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