Back to Growth: Union Budget 2021-22 announcement - Logistics
Finance Minister Nirmala Sitharaman in her Budget 2021 speech has identified warehousing assets for asset monetisation programme which will be included assets under Central Warehousing Corporation.
Hence, monetisation, at its core, is a distinct shift from ‘privatisation’ to ‘structured partnerships’ with the private sector within defined contractual frameworks. It serves two critical objectives: First, it unlocks value from public investment in infrastructure, and second, it taps private sector efficiencies.
Prime Minister Narendra Modi government had a huge focus on warehousing, it was granted infrastructure status in 2017 which helped the sector to grow by attracting funding.
Between FY17 and FY20 Warehousing transactions saw a growth of 3 times.
As of FY20, India had about 307 million sq ft of existing warehouse stock across eight cities in the country. There is further potential to develop another 193 million sq ft.
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