How to Start the Warehouse Tender Application Process in India

India’s warehousing sector—especially for food grain storage—is rapidly becoming one of the most profitable and secure investment opportunities. With agricultural production rising every year and agencies like FCI, CWC, and state procurement bodies expanding their storage needs, the demand for scientific, well-structured warehouses has never been stronger.

For investors looking for fixed guaranteed rental income, long-term asset creation, and low-risk government-backed business models, warehouse tenders are a powerful entry point.
This eBook gives you a complete beginner-friendly roadmap—covering demand, tender types, eligibility, financial returns, and subsidies.

Understanding the Demand & Opportunity

India has a huge storage gap, which directly creates opportunities for private warehouse developers.

India’s Storage Shortfall

Food grain production (2021): ~311 MMT
Available storage capacity: ~145 MMT
Storage shortage: 166 MMT (53% gap)

Because of this massive deficit, government agencies are inviting private entrepreneurs to build and operate warehouses.

Key Demand Drivers

Rising food production
Increasing MSP procurement
Need for buffer stock

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Types of Warehousing Tenders in India

PEG Scheme – Build godowns on private land with guaranteed rent
PWS Scheme – Lease an existing warehouse
AMP Model – Build on FCI land; ownership transfers later
Silo Projects – Advanced 30-year high-tech storage

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Eligibility & Pre-Planning Requirements

Land Identification

You can participate with:

Owned land
Leased land
Intended purchase/lease

Land Suitability Criteria

Key norms include:

8–15 km proximity to mandi/railway
22-feet minimum road width
No hazardous units nearby
No overhead 11 KV lines

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Tender Bidding & Allotment Process

Technical Bid

Basic documents:

Land papers
ITR
Net worth proof
NOC
Firm documents

Financial Bid

Quote rent per MT per month
L1 bidder usually wins

Post-Allotment

6–12 months construction window

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Financial Returns & Subsidies

Typical Financials

Parameter	Covered Godown	Silo Project
Rental Income	₹80–₹100/MT/month	₹120–₹150/MT/month
Payback	6–8 yrs	9–11 yrs

Subsidy Benefits

NABARD Capital Subsidy (up to ₹100 lakh)
AIF Interest Subsidy
State Incentives (capital subsidy, stamp duty refund, SGST refund, etc.)

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How KIP Can Help You

Tender Documentation – Complete technical bid, financial bid, NOC, net worth certificate, and compliance support.
DPR & Project Planning – Professional DPR with cost, layout, revenue, and financial projections.
Subsidy Assistance – NABARD subsidy, AIF interest subsidy, and state-level incentive guidance.
End-to-End Tender Support – From application to allotment and final agreement.

Frequently Asked Questions (FAQs)

Q1: Who can apply for warehouse tenders?

Anyone—individuals, companies, partnerships, and infrastructure developers—can apply if they meet land and document requirements.

Q2: Do I need to own land before applying?

No. You can apply using owned land, leased land, or land intended for lease/purchase, depending on the tender terms.

Q3: How much investment is required?

Investment varies by capacity and tender type:

Covered Godown: Approx. ₹5,000–₹6,000 per MT
Silo Projects: Approx. ₹10,000–₹13,000 per MT

Q4: Which agencies release these tenders?

FCI, CWC, State Warehousing Corporations, and procurement bodies like HAFED, PUNGRAIN, MARKFED, and UPSWC.

Q5: What documents are required for participation?

Common documents include land papers, ITRs, net worth certificates, company details, and land NOC (if applicable).

Q6: Are there subsidies for warehouse construction?

Yes. Eligible investors can access NABARD Capital Subsidy, AIF Interest Subsidy, and various state-level incentives.

How to Start the Warehouse Tender Application Process in India