Industry focus
Warehousing and Cold Storage
Covered by the Logistics Policy 2025 rather than the general industrial policy, with its own rules on how much of the land and shed counts as eligible investment.
Dry warehouses for agricultural produce and FMCG, cold storages for potatoes, fruit and vegetables, controlled-atmosphere stores, logistics parks serving the Raipur-Durg corridor and truck terminals are increasingly common projects. Their cost structure is land and civil work rather than machinery, which is exactly where the Logistics Policy's valuation rules bite: land counts only up to a share of total investment and the shed is capped per square foot of built-up area.
A warehouse DPR therefore has to be built around the policy's definition of eligible fixed capital investment from the start, and the land decision has to be taken with the cap in mind. For agro-storage, the Agriculture Infrastructure Fund's interest subvention and guarantee support may also be available, subject to convergence rules.
Project finance considerations
- Term loan for land development, shed, racking and handling equipment, or for cold storage refrigeration plant and insulated panels.
- AIF-linked loans for eligible post-harvest storage with interest subvention and CGTMSE support for eligible borrowers.
- Working capital is usually modest; lease receivables and operating costs drive the cash flow.
- Occupancy ramp and lease rate assumptions are what lenders test; we build the DPR on signed or indicated tenancies where possible.
Government incentive considerations
- Facility type and minimum size or capacity under the Logistics Policy 2025.
- Eligible fixed capital investment computed with the land share limit and the building cost cap per square foot.
- Capital investment subsidy, interest subsidy and duty concessions as the policy provides for the facility type.
- Registration and approval sequence with the industries department before the relevant milestone.
- AIF convergence for agro-storage, checked against both schemes' rules.
Incentive eligibility depends on the activity, block location, investment, unit type (new, expansion, diversification or modernisation), dates and the policy's exclusion list. Not every incentive applies to every project, and the FCI subsidy and Net SGST reimbursement routes under IDP 2024-30 are alternatives, not a combination.
Documentation we typically prepare
- DPR with built-up area, capacity, occupancy and lease assumptions and the eligible-investment working
- Land papers and valuation
- Civil estimates with built-up area certification
- Refrigeration and racking quotations
- AIF-format project report where applicable
- Entity documents and registrations
- Investment certification at claim stage
Regulatory and approval considerations
- Building plan approval and occupancy-related permissions.
- Fire safety approval for the facility size.
- Consent from CECB where the activity and refrigerant or generator use require it.
- Warehousing registration where applicable, including WDRA registration for negotiable receipts.
- Electricity load sanction for cold storages.
- Land-use conversion where the site is agricultural land.
Where projects in this sector commonly lose time
- Land cost assumed fully eligible when the policy limits its share.
- Shed cost above the per-square-foot cap treated as eligible.
- AIF and state applications filed without checking convergence.
- Fire and building approvals sought after construction.
Frequently asked questions
Is a warehouse eligible under IDP 2024-30?
Warehouses and logistics facilities are addressed under the State Logistics Policy 2025, which has its own definitions and incentives. We assess under that policy.
How much of the land cost counts?
The policy limits the land share of eligible investment and caps the building cost per square foot of built-up area. The exact figures are confirmed against the notification for each project.
Can a cold storage use AIF?
Cold storages for agricultural produce are within AIF's eligible infrastructure, subject to the scheme's conditions. Convergence with the state incentive is checked case by case.
Planning a warehousing and cold storage project in Chhattisgarh?
Share the district, capacity and investment outline. We will map the finance, the incentives and the approvals for that specific project.