WAREHOUSE INFRASTRUCTURE FUND (WIF)

OPERATIONAL HANDBOOK
FOR INTERNAL USE ONLY
1. WAREHOUSE INFRASTRUCTURE FUND (WIF) – 2014 -15

Background

While presenting the Budget for the year 2014-15, the Hon’ble Union Finance Minister
announced the allocation of Rs. 5000 crore to NABARD for the year 2014 -15 for
providing loans to meet the requirements for scientific warehousing infrastructure for
agriculture commodities in the country. This allocation is in continuation to the
previous year’s allocation of Rs. 5000 crore.

2. RBI, vide its letter no. RPCD.CO. Plan/2035/04.09.59/2014-15 dated 12 August

2014, has advised the establishment of Warehouse Infrastructure Fund (WIF) 2014 -
15) with NABARD. WIF - 2014 -15 will have a corpus of Rs. 5000 crore for the year
2014-15, which would be contributed by the banks having shortfall in achievements of
agriculture/priority sector targets. Consequently, Department of Storage and
Marketing (DSM) Head office, formulated Operational Guidelines – Warehouse
Infrastructure Fund (WIF) 2014 -15, which has since been approved by Board of
Directors on 29 September 2014.

3. The salient features of the WIF -2014 -15 are indicated below:

1 Eligible Institutions/  State Governments,

Entities
2 Activities covered
 State/ Central Government Owned/ assisted
entities, Cooperative, Federations of
Cooperatives, Farmers Producers Organizations
(FPOs), Federations of Farmers’ Collectives,
SPVs set up under PPP mode, etc.
 Primary Agricultural Credit Societies (PACS)/
Cooperative Marketing Societies (CMS) or similar
institutions
 Corporates/ Companies, Individual
Entrepreneurs etc.
Loans will be provided for proposals of projects
involving creation of storage infrastructure, with a
minimum aggregate capacity of 5000 metric tons
(MT), for agricultural and allied produce including
construction of:
a. Warehouses
b. Silos
c. Cold storage, controlled atmosphere (CA)
stores, other cold chain infrastructure
activities like pack houses/ integrated pack
houses, reefer vans, bulk coolers,
individually quick frozen units, chilling/
freezing infrastructure, etc.
Modernization/ improvement of the existing
storage infrastructure projects will be considered
on merit of each proposal provided it leads to
scientific/ additional storage capacity.

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 WAREHOUSE INFRASTRUCTURE FUND (WIF)
OPERATIONAL HANDBOOK
FOR INTERNAL USE ONLY
(No minimum capacity for projects of
Governments/ Government owned corporations).
3 Conformation to Norms Loans will be provided in respect of only those dry
of WDRA / NCCD and wet storage projects which conform to the
norms /standards prescribed by Warehousing
Development and Regulatory Authority (WDRA)/
National Centre for Cold-chain Development
(NCCD).
The borrowers also to give an undertaking for
obtaining accreditation/ registration from WDRA
for storage infrastructure/ following the standards
set by NCCD for cold chain infrastructure, on
completion of the infrastructure.
4 Priority Segments Funds under this allocation would be utilized for
meeting the growing demand for storage capacity
for agricultural commodities and also in the wake
of enactment of National Food Security Act 2013
from the following segments:
 Food grain procurement agencies, like FCI
(including under PEG Scheme), Central
Warehousing Corporation, State Government
Departments/Agencies, SWCs, etc.
 Panchayats, PACS and other Co-operative
Societies (including modernization/ renovation/
repairs of the existing warehouses) for enabling
farmers to store their produce and avail
concessional post-harvest loans
 State Civil Supplies Departments/ Corporations
for Public Distribution System (PDS) and supply
of essential commodities
 Private sector companies/ corporates for
storing food grains as well as other agricultural
commodities, like pulses, oilseeds, cotton,
spices & condiments and perishables, like fruits
& vegetables, dairy/ poultry/ meat/ fish
products.
Priority will be given for the projects proposed in
Eastern and North Eastern states and all other
deficit states from the food grain production point
of view.
5 Loans to Public Sector The direct loans to State Government/ State Owned
Corporations (with State Government guarantee)
and to Panchayats (through State Governments)
under the scheme will be governed by the extant
RIDF guidelines.
6 Loans to Private Sector Direct loans to private sector will include loans to
Cooperatives, Cooperative Federations,
Federations of Farmers’ Collectives, APMCs, State

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 WAREHOUSE INFRASTRUCTURE FUND (WIF)
OPERATIONAL HANDBOOK
FOR INTERNAL USE ONLY
Level Boards, Apex Marketing Boards/ Bodies, SPVs
set up under PPP mode, involving Farmers’
Producers’ Organizations (FPOs), and Private
Companies/ Corporates, Individual Entrepreneurs
etc. Further, entities owned/ assisted/ sponsored
by the Central and State Governments, which are
not covered under public sector would be funded
under this category. Operational guidelines for
loans to private sector are separately furnished as
Annexure - I.
7 Financing terms and conditions
Type of Maximum Tenor Rate of Security/
Borrower Quantum of loan Interest Documentation
of Loan (Years) (% p.a.)
(% of
TFO)
A Loans with RIDF rate of interest
1 State 95 07 Prevailing An undertaking to the
Governments RIDF rate effect that the State
(loans to Finance of Government will repay
dept. under interest the loans, with
article 293(3) ) (presently interest, in time and
1.5% less shall make adequate
than the budgetary provisions to
Bank meet the repayment
Rate) obligations for the
loans under WIF
2 State Owned 95 07 Prevailing Government Guarantee
Corporations RIDF rate + Primary & Collateral
(loans outside of Security, Assignment
article 293(3) interest /Hypothecation of
(presently rentals receivable and
1.5% less any other
than the unencumbered
Bank receivables, Debt
Rate) Service Reserve as a
default escrow
account.
B Loans with interest rates based on Prime Lending Rate ( PLR)
1 State/Central 95 07 PLR* + Primary & Collateral
Govt. Risk Security, Assignment/
Owned/Assisted Premium Hypothecation of
Entities (without More PLR + Risk rentals receivable and
Government than 7 Premium any other
guarantee)/ years + Tenor unencumbered
Cooperatives, Premium receivables, Debt
Federations of Service Reserve as a
Coops., Farmers default escrow
Producers account, (fixed deposit

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 WAREHOUSE INFRASTRUCTURE FUND (WIF)
OPERATIONAL HANDBOOK
FOR INTERNAL USE ONLY
Organizations receipts/ bank
(FPOs), guarantee or any other
Federations of security acceptable to
Farmers’ NABARD as collateral
Collectives/SPVs security).
set up under PPP
mode, etc.,
2 Private 75 07 PLR+ Risk Primary & Collateral
Companies/ Premium Security, Assignment/
Corporates/ Hypothecation of
Individual rentals receivable and
Entrepreneurs More PLR+ Risk any other
etc. than 7 Premium unencumbered
year + Tenor receivables, Debt
Premium Service Reserve as a
default escrow
account, (fixed deposit
receipts/ bank
guarantee or any other
security acceptable to
NABARD as collateral
security.)
8 Sanction of loans Detailed memorandum of sanction will be put up by
Department of Storage & Marketing for eligible
project proposals from public and private sector for
sanction to the Project Sanctioning Committee (a
subcommittee of the board) set up for sanctions of
RIDF loans.