NCDEX to set up storage complexes in Rajasthan

National Collateral Management Services Ltd (NCMSL), a management and warehousing arm of the National Commodity & Derivatives Exchange (NCDEX), has got approval from the government of Rajasthan to set up modern warehousing-cum-market yards in eight locations, with facilities not seen so far in India.

It is looking to extend this to other states. The new warehouses will be in partnership with National Warehousing Corporation (NWC), also its shareholder, which is promoted by Netherlands-based Agricore. Each warehouse, with a storage capacity of up to 40,000 tonnes of food grains, will entail an investment of Rs 20 crore, spread over 30 acres.

The warehouses seen till now in India entail an average investment of Rs 5 crore each, with a height of upto 13 metres. The ones envisages will be beyond 30 metres height each. The facilities each will have are currently available only in East Asian countries.

In addition, NCMSL plans to set up 8-10 fully mechanised foodgrain storage facilities each in Madhya Pradesh and Gujarat, again in partnership with NWC. Each will again entail investment of at least Rs 20 crore.

The locations selected for Rajasthan are Bikaner, Kota, Bundi, Chomu (near Jaipur), Kotputli, Jodhpur, Bharatpur and Sawai Madhopur. “This is an experiment, if successful, will be extended to other states,” said Sanjay Kaul, MD and CEO of NCMSL. These warehouses will contain all facilities of a most modern market, he added.

Agricore procures pulses and other agri commodities from Rajasthan.