You are here: Home » Companies » News
Business Standard

NCML to invest Rs 506 cr in grain silos in India, IFC to back the project

NCML will develop these grain silos at seven locations in Punjab, Haryana and Uttar Pradesh under a 32-year concession agreement awarded by FCI

Topics
Fairfax Financial Holdings | Fairfax | Food Corporation of India

TE Narasimhan  |  Chennai 

NCML to invest Rs 506 cr in grain silos in India, IFC to back the project
IFC expects the project to support the government's ability to manage the grain stocks more efficiently, thus benefiting consumers and farmers through better access to staple foods and reduced spoilage

Fairfax-controlled National Collateral Management Services Ltd. (NCML) will invest around Rs 500 crore to develop grain storage silos in India under a 32-year concession agreement awarded by the The proposed investment will be backed by International Finance Corporation, investment arm of the

The total Project cost is Rs 506 crore and IFC’s proposed investment is by way of subscription to unlisted, secured Non-Convertible Debentures for a total of up to 330 crore to be issued by the 7 Project SPVs. These SPVs will develop grain silos with a capacity of 50,000 metric tonnes each at 7 locations in the states of Haryana, Punjab, and

NCML through its wholly-owned project subsidiaries is developing grain storage silos in India under a 32-year concession agreement awarded by the

IFC expects the project to support the government's ability to manage the grain stocks more efficiently, thus benefiting consumers and farmers through better access to staple foods and reduced spoilage.

The most significant expected project-level outcome is the expected reduction in post-harvest losses associated with introduction of modern silos, which in turn would have positive implications both for food security of the Indian consumers and favorable environmental effects from avoided Greenhouse gases emissions. Food safety can be compromised in traditional storage facilities since torn bags, transferred manually numerous times, put the wheat inside at risk of contamination. The shift from warehouse to silos is expected to reduce wheat losses as a result of improved logistics and better overall facilities, said IFC.

NCML is one of the few leading private sector entities in India specialising in post-harvest commodity-based services and providing integrated supply chain solutions and risk management services to producers, traders, end-users of agricultural commodities, and lenders. The company operates approximately 800 warehouses in 16 Indian states and caters to 42 agricultural commodities across the two crop seasons in India – Rabi and Kharif.

The company is majority owned and controlled by India Holding Corporation – the India-focused investment arm of Financial Holdings.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 16 2020. 10:55 IST
RECOMMENDED FOR YOU
.