Warehouse Tender Types You Must Know: State & Central Agencies

PEG Scheme (Private Entrepreneur Guarantee Scheme):
This is one of the most popular schemes under which FCI (Food Corporation of India) or state-level implementing agencies invite tenders for constructing new godowns under a guaranteed period agreement.

• Features:
  • Fixed guaranteed period (usually 5-10 years).
  • Regular monthly rental income.
• These tenders are frequently available in states like Punjab and Haryana.
• A great opportunity for those planning to invest and construct new godowns.

PWS Scheme (Private Warehousing Scheme):
Under this scheme, tenders are invited for hiring existing godowns for a short-term period (2-3 years).

• Features:
  • Your godown must already be constructed.
  • These tenders are for short-term leasing.
• Suitable for those who already own constructed godowns and want to lease them for storage purposes.

Rehiring Tenders:
These tenders are for godowns that were previously leased to a state or central agency and whose agreement period has expired.

• Features:
  • For godowns with expired agreements.
  • Allows owners to renew their lease agreements.
• This is for those who have previously leased godowns and wish to continue leasing them.

AMP Policy (Asset Monetization Policy):
Under this policy, FCI invites tenders to construct godowns on FCI-owned land.

• Features:
  • Construct godowns on FCI land.
  • Ownership remains with FCI, but you earn a rental income for a guaranteed period.
• This is a beneficial policy for those interested in construction without owning the land.

Silo Projects:
These are large-scale projects for steel-based vertical storage facilities with advanced technology.

• Features:
  • High storage capacity (1-3 lakh MT).
  • Long-term agreements (up to 32 years).
  • Requires significant investment (₹50 crore – ₹100 crore).
• Ideal for investors with expertise in large-scale construction.

Utilization-Based Tenders:
These are classified into two types:

• Actual Utilization Basis: Rent is paid based on the actual usage of the godown.
  • Example: If the godown’s capacity is 10,000 MT but only 7,000 MT is used, rent is paid for 7,000 MT.
• Guaranteed Basis: Fixed rent is paid for the entire capacity, regardless of actual usage.
  • Example: Rent is paid for 10,000 MT, whether it’s fully utilized or not.

Service-Based Tenders:
These are classified into:

• Lease Only: The agency rents your godown, and they manage all storage, preservation, and maintenance.
• Lease with Services: You provide additional services like preservation, maintenance, and security.
  • Higher rental income as you handle more responsibilities.
• PMS Contracts (Preservation and Maintenance Services): These fall under lease with services contracts.