We would feel pleased to offer you our services for providing bankable plan documents for setting up the warehouse. Let us resolve few issues so that we can set your warehouse project in motion in right direction before giving you any plan documents.
Most of the queries we receive regarding setting up the warehouse are centered on: (a) what is the viability? Here entrepreneur wants to know the income by way of rent; (b) land requirement and norms for construction; and (c) how to avail NABARD subsidy? This is significant as NABARD has recently upgraded the capital norms & eligible subsidy, subject to fulfillment of their terms and conditions.
Here we are explaining the essence of our services with respect to above issues.
(A) Viability: Major source of income is rent. Quite frequently FCI announces its intent to acquire the warehouse, to-be-built as per their norms, on guaranteed 10-year lease. It is good opportunity as bankers readily accept such project proposal given guaranteed rent income. With respect to our services for FCI Godown please refer following section of our website:
You can also open your warehouse for your nearby farmers so that they can utilize the warehouse facilities on pay-and-use basis. As per the market trend you can take anywhere between Rs. 4-6 per bag per month as rent. In return farmers can avail bank loan against your warehouse receipt. Here you can be eligible for subsidy by NABARD provided you fulfill their criterions. Please refer following section of our website for rural godown:
Another option is lease to private companies. Lots of companies need storage facilities near big cities and they can give you attractive rent. Here you may not avail NABARD subsidy because it does not adhere to NWRS system; but even without subsidy the project may be viable given high rent paid by private companies. We have done few projects where entrepreneurs decided to proceed ahead without subsidy. Once the income stream is secured by way of rent agreement they decided to complete it as soon as possible without adhering to tough parameters of NABARD; and straightaway putting the project proposal with their bank.
We can liaison with few companies/individuals on your behalf for securing long term rent agreement. We need adequate land at strategic locations. Site should be near to mandis, on national/state highway, no power lines across the site, near to railway rack point. If your land meets above parameters then we can plan for minimum 2500 MT godown. Desired locations are:
Andhra Pradesh: Bhainsa, Kakinada, Karimnagar, Kurnool, Medchal, Vijayawada, Warangal. Bihar: Khagaria, Barauni, Begusarai, Mansi, Kishanganj, Purnea, Gulabbagh, Saharsa, Samastipur. Delhi: Alipur, Kundli, Narela. Gujarat: Kandla, Mundra, Patan, Pipavav, Rajula, Rajkot, Unjha, Ahmedabad, Deesa, Gondal, Junagarh, Kadi. Haryana: Kaithal, Karnal, Panipat, Rewari, Sirsa, Pipali. Karnataka: Bagumpaddi, Bengaluru, Belgaum, Chitradurga, Davangere, Gadag, Gulbarga, Shikaripur, Sindanur. Kerala: Kochi. Madhya Pradesh: Ashoknagar, Biaora, Bina, Dabra, Datia, Ganjbasoda, Indore, Katni, Khandwa, Morena, Neemuch, Pipariya, Ratlam. Maharashtra: Jalgaon, Kolhapur, Latur, Nagpur, Navi Mumbai, Sangli. Odisha: Cuttuck, Jaypore. Punjab: Abohar, Tarn Taran Road, Bhatinda, Firozpur, Jalalabad, Moga, Roop Nagar. Rajasthan: Alwar, Baran, Bharatpur, Bundi, Choumu, Hanuman Garh, Jaipur, Jodhpur, Nimbahera, Nokha, Raisinghnagar, Sadulsahar, Sriganganagar. Tamil Nadu: Chennai, Coimbatore, Erode, Kangayam, Mullanur, Nammakkal, Perambalur, Salem, Tuticorin. Uttar Pradesh: Bareilly, Bilaspur, Etah, Gorakhpur, Hardoi, Mainpuri, Mathura, Shahajahanpur, Sitapur. Uttrakhand: Kashipur, Rudrapur. West Bengal: Dalkhola, Maheshtala, Malda.
(B) Norms for construction: Usually we adhere to CPWD norms. We follow Schedule of Rates to arrive at civil construction cost estimate. It is important to avail NABARD subsidy and also to be eligible for FCI. We discuss this issue with the entrepreneurs, inform the options available and conclude. We and entrepreneur meaningfully discuss over bill of quantity and schedule of construction with an objective to erect the structures at minimum possible cost.
Land requirements can be taken approximately as: 2 acre i.e. 90000 sq. ft. for godown of capacity 5000 MT; 1 acre for 2500 MT godown; 4 acre for 10000 MT godown, and so on. Here we advocate erecting of other facilities also e.g. cold storage, market complex, food processing industries, etc. as per investment capacity of the entrepreneur. Even FCI permits for such additional facilities. It could add to your revenue. Well, over 2 acre of land you can easily erect 5000 MT warehouse, approach roads, office, weigh bridge, parking, guard room, etc. along with other support activities e.g. small shops, small market complex, food processing facilities, etc.
While we prepare the layout we take enough care to know local opportunities and to maximize the use of land w.r.t. investment capacity of entrepreneur.
(C) NABARD subsidy: Subsidy (@ 15% or 25% or 33.33%) under the scheme is linked to institutional credit and will be available to only such projects that are financed by Commercial Banks. Assistance under the scheme shall be available on capital cost of construction of godown including the cost of allied facilities like boundary wall, internal road, platform, internal drainage system, weighing, grading, packaging, quality certification, warehousing facilities which are functionally required to operate the godown. For godowns exceeding 1000 ton capacity the maximum acceptable capital investment is Rs. 3000.00 per ton (this is the upper limit to calculate eligible subsidy).
Please refer following section of our website for rural godown scheme of NABARD:
(D) Our services: You can avail our holistic services w.r.t. setting your warehouse project in motion in right direction, addressing viability issues, and preparation of following plan documents:
(D1) Architectural layout plan: We provide detailed notes while preparing such architectural layout plan. If you order us for 5000 MT warehouse, we justify how proposed structure could easily stock 5000 MT of produce. We also plan & justify other parameters e.g. height of stacks, passage within stacks, platform & verandah for loading/unloading, approach roads, weigh bridge, guard room, office, canteen, staff room, open space, etc. We both are geographical distance apart, but it is not essential that any local architect could give you such detailed & justified plan.
(D2) Civil Construction & Equipment plan: We have to give you bankable project report. Here we cannot impose arbitrary figures for civil construction & equipment plan. It has to be justified and should be as per norms. Further such justification should be in easy understandable language. It is not that your local engineer/estimator could handle such responsibilities.
Civil construction plan is explained in detail with cost breakup for foundations, columns & beams, partition walls, roofing, approach road, and for other ancillaries. Bill of quantity is explained in detail so that you can manage your labor contractor with full control over cost. Even if you are not engineer you can understand the cost breakup, which we present in easy language. Usually we adhere to CPWD norms & Schedule of Rates as regards foundation, columns, beams, walls & roofing and measures taken to make your warehouse termite-proof, rodent-proof, bird-proof and sealed enough for effective fumigation and arrive at Civil Construction Cost Estimate.
FCI or other companies who are taking such warehouse on long-term lease demands ready equipments also e.g. weigh bridge, electrical installations, power backup, computers, sorting & grading equipments, etc. We prepare such plan in cost-effective manner, as per the requirements of lessee, and as per budget of entrepreneur.
(D3) Bankable project report: After doing enough analysis and discussion over viability, civil construction plan & equipment plan, we prepare bankable project report. In case, where project cost is high & bank demands CMA of entrepreneur, we prepare such reports also. Hope you will understand our position, our prepared project report is completely justifiable and bankable with high chance of getting it sanctioned by your bank.
(D4) Other: Here we complete the legal formalities e.g. formation of firm, opening of current account with bank, obtaining service tax registration. Legislations, which are important to meet with, are obtaining Warehouse License, and implementation approval for National Warehouse Receipt System. Later two legislation compliance might not be required in case of any private entity taking your warehouse on lease, but to avail NABARD incentives these are very important to adhere with. We give guidelines in easy language for how you can meet these two legislations in your city.
(E) Ordering for our services: While you order for our services, please answer the questionnaire at:
Here we have arranged our questionnaire under three sections e.g. general setup questions, dairy farm specific questions, and milk processing specific questions. You have to answer only general setup questions. Please note that we are asking lots of relevant questions along with land map.
Hope you will answer as precise as possible and as accurate as possible.