DPIIT and ADB Develop Grading Framework for Warehouses and Cold Chains

The Department for Promotion of Industry and Internal Trade (DPIIT), in collaboration with the Asian Development Bank (ADB), is developing a grading and rating standards benchmark for warehouses and cold-chain facilities in India, according to DPIIT Joint Secretary Pankaj Kumar, speaking at the third FICCI Logistics, Warehousing and Cold Chain Summit. The proposed framework seeks to establish common benchmarks for the quality and operational standards of logistics infrastructure and facilitate greater investment in the sector.

The initiative follows the recent release of two sets of warehouse standards and guidelines by DPIIT. The proposed grading mechanism is expected to provide a basis for assessing facilities against standardised parameters, with graded facilities potentially receiving easier access to institutional credit and Government incentives.

The regulatory structure for the proposed rating system has not yet been finalised. The options under consideration include oversight by a Government agency or a self-regulatory mechanism administered by industry associations.

DPIIT is also working with State Governments to incorporate warehousing and cold-chain infrastructure into State logistics policies and is assisting States in preparing city logistics plans covering warehouses, dark stores and cold-storage facilities. The approach seeks to integrate storage infrastructure into broader regional and urban logistics planning.

In parallel, DPIIT’s logistics division is preparing guidelines for Multi-Modal Logistics Parks (MMLPs). Warehouses and cold-chain facilities constitute approximately 70% of the area in MMLPs, and the proposed guidelines are expected to promote value-added activities such as packaging, labelling, redistribution and digitalisation within such facilities.

The proposed standards also assume significance in the context of warehouse-based financing. According to Shanti Lal Jain, Member, Warehousing Development and Regulatory Authority (WDRA), commodities worth approximately ₹12,419 crore were pledged against electronic negotiable warehouse receipts (e-NWRs) during the preceding year, an increase of 43%, while loans against such receipts also rose by 43% to approximately ₹5,700 crore.

Approximately 7,800 warehouses are currently registered with the WDRA, with a combined capacity of around 6 crore metric tonnes, accounting for about 30% of the country’s total warehousing capacity. The WDRA has expanded the list of notified commodities to 246.