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Knight Frank India, a prominent international real estate consultancy, has been designated as a Knowledge Partner to promote the sale of land parcels owned by the Central Warehousing Corporation, an initiative of the Government of India. These land parcels are located in 54 prime locations across India, with an estimated total land area of approximately 572 acres. The potential land area for warehousing development among these 54 locations is roughly 344 acres, with individual parcels ranging in size from 5 to 30 acres. The anticipated development cost is around INR 2,152 crores.
As part of the National Monetisation plan, the Central Warehousing Corporation (CWC) is in the process of monetizing and modernizing its warehouses across the country. This effort involves public-private partnerships (PPP) under the Design Build Finance Operate and Transfer (DBFOT) model, with a concession period of 45 years.
Amit Kumar Singh, Managing Director of the Central Warehousing Corporation, emphasized that their asset modernization and monetization initiative, which initially began with only 8 locations and a simple rental process, has now expanded to encompass 54 land parcels and potentially more in the future. They have partnered with Knight Frank India to guide them in the monetization and modernization process through the PPP mode. Their objective extends beyond modernization and aims to contribute to the nation's vision of reducing logistics costs, thereby benefiting the economy as a whole.
The Central Warehousing Corporation has already granted pre-approval for a 45-year duration for these warehousing sites, underscoring their commitment to modernizing and operating these facilities. These sites are strategically distributed across the entire geographical expanse of India, making them ideal for potential logistics and distribution centres.
In terms of revenue sharing, the arrangement is designed to ensure transparency and fairness. CWC retains a 5% share of the net revenue or the minimum guaranteed revenue share, whichever is higher, while the remaining 95% of the realized net revenue goes to the concessionaire. This system encourages private entities to maximize their operational efficiency and revenue generation.
To participate in this opportunity, potential bidders must meet specific financial prerequisites. Bidders are required to have a net worth of not less than 50% of the cumulative Estimated Project Cost for all the sites they intend to bid on, as of the close of the previous financial year. This ensures that bidders possess the financial capacity to undertake and sustain the projects they are interested in.
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