Warehouse Site Selection
Warehouse Site Selection Criteria
Warehouse Site Selection Criteria for Setting up of Warehouses
Are you going to setup the warehouse business and looking for the land for this.
There are so many parameters to look into before finalizing the site location in order to get the maximum benefit from Central Government and State Government.
Due to wrong selection of site, you may be lost the Tender Opportunities along with Subsidy Benefits. So it is important to know the land criteria which can help to you in taking right site selection decision.
We are sharing herewith the most common land criteria i.e. adopted by Almost Govt. Procurement Agencies at the time of Issuing Warehouse Tender. We are also considering the subsidy parameters in these.
Most common Land Criteria are as follows:
Road Connectivity : The Land should be connected with Road. The land should preferably be on National Highway/State Highway/ major district road/ all-weather motorable road with minimum width of 22 feet to ensure uninterrupted truck movement.
Railhead Connectivity: If proposed site is connected with railhead then it will increase the chances for Agriculture as well as commercial warehousing business. Govt. Agencies are also seeking the site which are connected with railhead for HUB Model of Silo project.
Level of land in consistent with the road: The land should not be low lying else it will increase the construction cost.
The area should not be located in the flood zone area that might damage the store goods in any disaster event or any damp surrounding area.
The area should not be located near to the water cannel as there is chance of damage of goods if there is any heavy flow of water in any circumstances.
The preference should be given for the location near to the mandis where trade of grains will be made for the easy availability. The land should preferably be within a radius of 8 KMs from the mandi indicated in the tender.
Polluting industries, Brick kiln, Petrol Pump/Gas Depot or any Inflammable items should not be in the 500 meter distance of land.
The land on which the godown is proposed to be constructed should not have a HT Line (11 KVA and above) passing over the land.
Also ensure that whether the land will fall under the Control area of District Town Planning or not. IT will help you in take all legal approvals before setup of warehouse.
The facilities like transportation and electricity should be near to your land so it would help in smooth running of the business.
Also see that there are any warehouse already constructed in surrounding area of nearby your proposed location. It will increase the chances for more warehousing business opportunities.
Observe that Any government Procurement Agencies such as FCI, CWC, CCI or State agencies has owned or taken any Godown on lease in nearby of your proposed site. It might be greater chances that government agencies would take your warehouse on rent as per the tenders issued by them from time to time.
Focus on Govt. Incentives: Also, many of the government incentives are available as per the location of the business. For example, As per Haryana State Logistic and Warehousing Policy, the most incentives are available for the location which are covered under C and D Block categorization of the geographical location as defined by the Haryana state.
So if you are looking any site for warehouse then you should focus on Block C and D in Haryana. Like the same, all states have their own categorization of geographical areas.
Take the Service of Consultant: Since the land cost is a major cost in warehousing. So before going to finalize any deal, it is advisable to take the Warehouse site selection service of Warehousing Consultant.
Financial Assistance/Subsidy/Benefits Available on Warehouse Construction:
The Quantum of Assistance as under would be provided as per the given below terms:
1. 100% Stamp Duty Refund on the buying of Land for the Purpose of Warehousing.
2.1 Unit can take the benefits of Capital Subsidy @25% on Construction Cost as per eligibility.
2.2 Interest subvention @3% up to 7 Year if warehouse has
been constructed for Agriculture purpose.
2.3 Refund of CLU Fees
There are many other incentives available under the scheme for the Capital expenditure, Interest benefits, Electricity Duty, External Development Charges and Commercial license fees etc.
Note: The other incentives specified by the State Govt. shall also be permissible for Warehousing and Logistics units.
So if you are going to plan for set up a New Warehouse Unit then You should plan according to above said scheme.
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