New NABARD scheme to finance warehouse infra in private sector
The new loan scheme of NABARD which aims to finance private sector for creation of storage infrastructure
Pune: Faced with shortage of warehouse facilities for agriculture products, Maharashtra stands to gain from the new loan scheme of National Bank of Agriculture and Rural Development (NABARD), which aims to finance private sector for creation of storage infrastructure.
Under the new scheme which has received the central government’s nod, NABARD can advance direct loans to public as well as private sector for construction of warehouses, cold storage, cold chains and silos.
Elaborating on NABARD Warehousing Scheme (NWS) 2013-14, a NABARD official said the purpose behind it was to enhance participation of the private sector players in infrastructure development of warehousing for perishable agriculture produce such as fruit and vegetables.
“For the first time NABARD has extended its loan facility for warehouse construction to private parties which earlier had the only option of approaching banks for finance,” said Sunil Jadhav, Assistant General Manager of NABARD.
Maharashtra currently faces a storage gap of 28.16 lakh metric ton (MT), in addition to 15.89 lakh MT for cold storages, affecting almost all districts of the state.
The proposed financing of the private sector by NABARD by opening an additional avenue of lending in the field of warehousing infrastructure can bridge this storage gap and boost scientific storage and preservation of agriculture produce in the state, the NABARD official noted.
On an all India basis, the scheme envisages creation of facilities for an additional 100 MT modern storage through the funding of NWS 2013-14.
For loan eligibility under the scheme, the infrastructure to be financed should be in keeping with the guidelines stipulated by the Warehouse Development and Regulatory Authority.