To meet the rising demand for warehousing from e-commerce companies, Union Food Secretary Sudhanshu Pandey on Friday exhorted the Food Corporation of India and the Central Warehousing Corporation (CWC) to monetize their property in the urban areas.
Pandey who inaugurated the CWC’s 3.5 lakh sq ft Grade A Warehouse on the IT SEZ close to Bengaluru International Airport on Friday said e-commerce corporations want warehouses in urban areas.
“I have already been encouraging both FCI and CWC to part away their facilities in urban areas as part of the asset monetization program for companies. We can operate for grain supplies outside the cities, which saves on land, saves time, and gets a better return on investment on both sides,” Pandey stated.
FCI and CWC own personal warehousing capacities in many areas throughout the nation.
“From a situation of warehouse scarcity, we have come a long way to create capacity and can offer it to the private sector, which is willing to use it, not only for foodgrains but for other products as well,” Pandey stated.
CWC owns approximately 50% share of foodgrain storage, out of which 37% is utilized by FCI and the remaining is utilized by the non-public sector for grain management.
“In the future, we should be forward-looking. Government corporations still play an important role. For this reason, in the list of various disinvestment plans, both FCI and CWC are not part of the disinvestment. They are part of the future journey of the logistics sector with asset monetization, where the private sector and the government sector can build relationships and put the country on the fast track on the logistics side,” Pandey stated.
CWC has arranged the three.5 lakh sq ft Grade A warehouses on 14 acres of land, which shall be handed over to the Ethics Group of Companies for a 10-year interval. The Ethics Group, which manages the complete Logistics chain and warehousing for the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP), plans to use the CWC facility to cater to the necessities in Karnataka and different neighboring States.
Bipin Kevadiya, CMD, Ethics Group, stated the corporate operates comparable warehousing services for the availability chain administration of medicines beneath the PMBJP.
Arun Kumar Shrivastava, MD, CWC, stated with land acquisition and alteration of land use turning into an issue in urban areas, CWC is prepared to associate with non-public gamers to develop warehousing infrastructure throughout the nation. CWC can be growing a 17.5 lakh tonne capability of warehouses in around 100 plus areas throughout India to serve the wants of warehousing necessities, he stated.