State-owned Central Warehousing Corporation Ltd (CWC) has called expression of interest (EoI) from private firms to build cold chain, cold storages, food processing plants, dry warehousing on vacant land and godown/warehouse compartment(s) through new construction or by retrofitting at locations across the country on public-private-partnership basis.
CWC, a schedule – A, mini ratna Public Sector Undertaking (PSU), provides integrated warehousing logistics services, with diverse presence in storage of food grains, Container Freight Station (CFS), Inland Container Depot (ICD), Custom Bonded Warehousing, Integrated Check Post (ICP), Air cargo Complexes, Container Train Operations (CTO), Rail-side Warehousing etc.
“CWC is coming up with an ambitious project for setting up cold storages /controlled atmosphere/modified atmosphere and dry warehousing facilities across the country,” the Company said in a document seeking expression of interest.
CWC has identified various locations where it perceives potential to set up cold storages. At these locations, CWC already runs warehousing facilities which can be partially or fully converted and utilized as cold storage to ensure that perishable products are available throughout the year, it said.
The plan seeks to reduce the total cost and gestation (concept to commissioning) period of setting up/developing a cold storage/food processing/packaging units/value addition plant by providing land, godown, warehousing facility, with all basic amenities, security system, boundary walls, gate complex, office blocks, electricity, water supply, sewerage system and approach roads.
The private developer cum operator will be tasked with designing, renovating, financing, building (including new construction or retrofitting), operation and maintenance (O&M) of the cold storages, food processing plants, dry warehousing etc.
The facility created shall be transferred to CWC at the end of the concession period, per the terms of the concession agreement, CWC said in the document.
Cold chain infrastructure is a critical tool to reduce post-harvest losses and for enhancing India’s food security needs.
According to Market Research Firm IMARC, the Indian cold chain market grew to Rs1,81,490 crore in 2022, and is expected to reach Rs3,79,870 crore by 2028, growing at a CAGR of 12.3 percent during 2023-2028.
Improving the cold chain and post-harvest infrastructure will significantly reduce waste, create a surplus for exports, and enhance the income of farmers, according to Invest India, the national investment promotion and facilitation agency.
The opportunities in the cold storage sector are huge, and the government has adopted a multi-pronged approach to create modern infrastructure, it said.
To facilitate the growth of the cold chain sector, the government is offering financial incentives to the private sector, SHGs, FPOs, PSUs, local bodies, co-operatives and APMCs to build cold chains.