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India Pilots Warehouse Grading for Better Loans
29 Sep
Summary
- India and ADB developing warehouse and cold chain rating system.
- Higher grades may offer easier access to incentives and loans.
- Commodities pledged against e-NWRs rose 43% to ₹12,419 crore.
India is partnering with the Asian Development Bank (ADB) to establish a grading and rating system for warehouses and cold-chain facilities. This system is designed to potentially grant improved access to government incentives and credit for facilities that achieve higher grades.
The Department for Promotion of Industry and Internal Trade (DPIIT) recently issued warehouse standards and guidelines that will form the basis of this rating system. The government is also collaborating with states to integrate warehousing and cold-chain development into their logistics policies, facilitating better urban logistics planning.
Meanwhile, the Warehousing Development and Regulatory Authority (WDRA) reported a 43% increase in commodities pledged against electronic Negotiable Warehouse Receipts (e-NWRs), reaching ₹12,419 crore last year. Loans against these receipts also saw a 43% rise, totaling around ₹5,700 crore, with ambitious targets set for the current year.
