The National Bank for Agriculture and Rural Development (NABARD) will lend Rs 130 crore to the private sector company National Collateral and Management Services (NCMSL) through its Rural Infrastructure Development Fund. NABARD, which generally lends only to government-owned warehousing entities, has utilised the special window opened by the Centre to fund established private sector warehousing companies like NCMSL.
NCMSL has proposed to utilise the fund to set up warehouses at 40 locations, as part of its ongoing project. The new warehouses, which are coming up in close proximity to agriculture mandis, will be of one lakh sq ft against the conventional 15,000 sq ft. These warehouses will house quality testing laboratories since NCMSL's business model envisages facilitating delivery for futures trading or providing finance through warehouse receipts.