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Logistics and Warehousing

Subsidy Planning for Warehouse and Cold-Storage Projects

Why the land decision and the shed specification decide the incentive under the Logistics Policy 2025.

Published October 2026 · Reviewed by Credvalue Financial Services · General information, not project-specific advice

A warehouse's cost is mostly land and shed, and the Logistics Policy 2025 has specific rules about how much of each counts as eligible fixed capital investment. The land counts only up to a share of total investment and the shed is capped at a cost per square foot of built-up area. These rules, more than the headline percentage, decide the incentive.

Plan the land with the cap in mind

A promoter who buys an expensive plot and builds a modest shed may find much of the land cost excluded. The eligible investment working should be done before the land is finalised, with alternative sites compared on the eligible amount, not just the price.

Build the shed to the specification

The built-up area has to be certified, and the cost per square foot above the cap is not eligible. Design choices that improve the facility but push the cost above the cap should be made knowingly.

Central support

For agricultural storage, the Agriculture Infrastructure Fund offers interest subvention and guarantee support, subject to its eligible activities and conditions. Whether it can be combined with the state incentive depends on each scheme's convergence rules, and the sequence of applications matters.

Approvals

Building plan, fire safety and, where applicable, consent from CECB and WDRA registration should be in the project schedule, since the bank will tie disbursement to some of them.

Official references

Official portals and notifications are the authority on current conditions. Links are provided for reference and may change.

Credvalue Financial Services provides project finance, documentation, government incentive advisory, and assistance with applicable industrial regulatory approvals. Scheme eligibility, incentive amounts, loan sanctions, regulatory permissions, and claim outcomes depend on applicable laws, policy conditions, departmental decisions, and lender assessment. Website information is for general informational purposes and does not guarantee approval, subsidy, financing, or a particular processing timeline. Official notifications, applicable laws and department-issued requirements prevail over any summary on this website.

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