NCMSL to invest Rs 450 cr to build new storage space

Encouraged by the new guidelines under Private Enterprenuer Gurantee Scheme (PEG 2008), National Collateral Management Services (NCMSL), the modern, scientific and IT-enabled storage and preservation services provider for agri and non-agri commodities, plans to offer space to the Food Corporation of India (FCI).

NCSML plans to invest about Rs 450 crore to put up its own warehousing facilities. It also plans to create a covered storage of capacity of 1 million tonnes across India. The new operations would be mainly restricted to areas where commodity exchange’s deliveries take place. But in states like Punjab and Haryana where commodity exchange deliveries were not very active, it may provide storage to FCI operations.

According to the Managing Director of NCSML Sanjay Kaul, they may also consider offering space to FCI in states where commodity exchange deliveries were not in large volumes.

He added that the revision of eligibility norms for the FCI Godown Scheme and the extension of seven-year guarantee to 10-year guarantee made them offer space to the public sector player. He added that they have identified locations in eight states. Currently, NCMSL has 700 leased warehouses of a capacity of 8.5 million tonnes scattered in 16 states. The expansion would be mainly funded through equity and borrowing.