Question

What types of credit facilities are available for constructing godowns?

Answer 1

2014-15 Budget, NABARD was allocated a fund of Rs.5000 crores for the creation of an infrastructure relating to the storage of agricultural commodities. Consequent to the allocation, the fund has been named Warehouse Infrastructure Fund (WIF 2014-15). The fund envisages extension of loans to Public and Private sectors for construction of warehouses, silos, cold storages and other cold chain infrastructure. Further, the warehouse infrastructure fund would also be utilized for meeting the growing demand for scientific storage capacity for agricultural commodities in the entire country, especially in the Eastern, North Eastern states and food grain deficit States. In this article, we look at the procedure for obtaining NABARD Loan for Warehouse and Cold Storage.

Eligibility

The NABARD loan will be provided for proposals of projects involving creation of storage infrastructure, with a minimum aggregate capacity of 5000 metric tons (MT), for agricultural and allied produce including construction of:

Warehouses

Silos

Cold storage, controlled atmosphere (CA) stores, other cold chain infrastructure activities like pack houses / integrated pack houses, reefer vans, bulk coolers, individually quick frozen units, chilling/ freezing infrastructure, etc.

Modernization or improvement of the existing storage facility will also be considered on a merit basis. The following entities are eligible to receive the NABARD Loan for Warehouse and Cold Storage:

Corporates / Private Limited Company / Individual Entrepreneurs

State / Central Government Owned / Assisted Entities

Cooperative, Federations of Cooperatives, Producer Companies, Federations of Farmers’ Collectives

Primary Agricultural Credit Societies (PACS) / Cooperative Marketing Societies (CMS) or Similar Institutions.

Answer 2

There are various schemes and credit facilities available for constructing godowns.

In India you can take NABARD loan for constructing godowns/ warehouses.

These loans are available for short period of time and it depends on the goods which you are going to store in your godown.

Companies and farmers can take these types of loan from Central Government.