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Karnataka indicates huge investment scope in agri-warehousing, logistics
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Monday, 07 March, 2016, 08 : 00 AM [IST]
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Nandita Vijay, Bengaluru
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fiogf49gjkf0d Karnataka government has now indicated to promising players engaged in the management and handling of agri-warehousing and logistic infrastructure projects about the scope for investments in the space.
In this regard, the National Collateral Management Services (NCMS) led by Sanjay Kaul is now looking at the state government to partner for public and private partnership models.
“We would look at companies making an investment commitment between Rs 100 crore to Rs 200 crore in the area of agri-warehousing and logistic infrastructure projects. These facilities are lacking in the state and NCMS is keen to provide the required assistance,” said Kaul at the Invest in Karnataka meet held recently.
“In the agri-infrastructure space, there is a huge gap in and there are considerable potential opportunities for private sector to look at this space,” he added.
NCMS with its partnership with leading banks in the country has created an ecosystem with the financial services sector to generate the required funds to support the private sector to take up such agri-warehousing and logistic infrastructure projects, according to him.
The company has the experience in similar projects and is present in 12 states for warehouses management which stores over 42 agricultural commodities. For instance, at Raichur in Karnataka, it has incubated 4.5 lakh acre for a multi-product commodity warehouse. In Bihar, it has set up a silo complex for storage of 2,300 tonne of maize among other commodities.
“Small silos in India are not viable because Indian companies are known to be engaged in shipping 3,000 tonne of maize among other commodities. At Guntur, in Andhra Pradesh too, it has set up a cold storage,” he said.
Although Karnataka is known for its capability in production of fruits and vegetables, the state is seen to have no massive warehouse, grading and sorting facilities. The handling processes are manual and there is a gross wastage of fruits and vegetables. Therefore there is considerable scope for private companies to consider investing in agri-warehousing and logistic infrastructure projects. The positive factors in Karnataka for investors in this space are the amendment of the APMC Act and the Agricultural Marketing Policy of 2013, which has created transparent environment, eliminated barriers for farmers to participate and foster determination of prices, according to Kaul.
Potential investors have the opportunity to modernise the agricultural markets, develop mechanised handling processes, build bulk storage units, packaging facilities and cold stores. “We could also engage in joint ventures, for mutually identified projects in warehousing and logistic infrastructure,” stated Kaul, adding that there was a Rs 1,500 crore opportunity in this sector.
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