5000 MT Warehouse Project Report — Cost and Format for Bank Loan

By Sharda Associates | CA Firm, Bhopal, Madhya Pradesh, India

You Want to Build a 5000 MT Warehouse and the Bank Is Asking for a Project Report You Do Not Know How to Prepare

A 5000 MT warehouse is a serious infrastructure investment. Whether it is a dry storage facility for grains and pulses, a controlled atmosphere store for fruits and vegetables, or a general-purpose agri-commodity warehouse — the project cost runs into crores, the bank loan is significant, and the project report that goes to the bank credit committee must be technically accurate, financially credible, and structured in the exact format the bank and NABARD require.

Most people who search for a warehouse project report are looking for one of two things. A template they can fill in themselves. Or a CA who will prepare it correctly for them. Templates fail because warehouse projects have specific technical parameters — refrigeration load calculations, insulation specifications, power requirements, civil construction costs — that generic templates cannot capture accurately for your specific location and commodity.

Sharda Associates is a CA firm based in Bhopal, Madhya Pradesh, India. Our CA team prepares CA-certified Project Reports and CMA Reports for warehouse and cold storage bank loan applications across India. We have helped over 45,500 businesses with their loan documentation. For a 5000 MT warehouse project

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What a 5000 MT Warehouse Project Report Must Contain

A bankable project report for a 5000 MT warehouse is not a description of the project. It is a structured financial and technical document that answers every question the bank’s credit appraisal process will ask—about the project’s cost, its revenue model, its technical viability, its implementation timeline, and its ability to generate enough cash to repay the loan with DSCR above 1.25 for every repayment year.

Banks — particularly NABARD-empanelled banks processing warehouse subsidy applications — have seen hundreds of warehouse project reports. They know what credible looks like. They know what template-filled looks like. And they treat these two very differently in how quickly the file moves through appraisal.

What the Project Report Must Cover

The promoter profile — who you are, your relevant experience in storage, logistics, or agri-commodity trading, and your financial standing. A promoter with 10 years of grain trading experience applying for a grain warehouse gets faster appraisal attention than a first-timer applying for the same project.

The project description — exact location, land ownership or lease details, proposed commodity types to be stored, and the target customer segment — farmers who need storage, traders who need bonded warehouse facilities, or FMCG companies needing distribution warehouse space.

The technical plan — shed design and construction specifications, refrigeration system for cold storage, power requirement calculation from equipment load, water supply, drainage, and approach road. Every item with supporting quotation from an authorised supplier or licensed contractor.

The cost of project — complete item-wise investment breakdown with current 2026 market prices. The means of finance — promoter contribution, bank loan, and government subsidy structure.

The financial projections — 5-year Profit and Loss, Balance Sheet, Cash Flow, and Loan Repayment Schedule with DSCR calculated correctly for every repayment year.

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5000 MT Warehouse Project Cost in India 2026

The total project cost for a 5000 MT warehouse in India in 2026 varies significantly by type — dry storage, cold storage, or controlled atmosphere — and by location, land cost, and commodity type. Understanding the realistic cost range before approaching a bank prevents the most common credibility problem in warehouse project reports — cost estimates that do not match current market rates.

Dry Storage Warehouse — 5000 MT Capacity

A dry storage warehouse for grains, pulses, oilseeds, or general agri-commodities is the simplest and most cost-effective warehouse type at 5000 MT scale.

Cold Storage Warehouse — 5000 MT Capacity

Cold storage adds refrigeration infrastructure which is the largest single cost component.

A 5000 MT cold storage project in India in 2026 typically costs between Rs.4 crore and Rs.6 crore excluding land. The refrigeration system alone accounts for 35 to 45 percent of total project cost. High-density PUF insulation panels of 100mm to 120mm thickness are the current industry standard and must be correctly specified in the technical section.

Power is the critical operational parameter for cold storage. A 5000 MT cold storage facility requires approximately 150 to 200 KVA of power connection. Power availability in your specific location — from the local DISCOM — must be confirmed before the Project Report is finalised, because the bank will verify this during site inspection.

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Means of Finance Structure for 5000 MT Warehouse

Government Schemes for 5000 MT Warehouse Projects

Multiple government schemes support warehouse development in India — and the subsidy available can cover 35 to 50 percent of your project cost depending on the scheme and your location. Knowing which scheme applies to your specific warehouse type before finalising your project cost is essential — because the subsidy is shown as back-ended funding in your means of finance table.

NHB — National Horticulture Board Scheme

NHB provides credit-linked back-ended subsidy for cold storage and post-harvest management infrastructure. For general category in plains areas — 35 percent of project cost. For hilly areas and scheduled areas — 50 percent. Maximum project assistance under NHB for a 5000 MT cold storage varies by scheme notification. NHB applies specifically to cold storage for horticultural produce.

NABARD Warehouse Infrastructure Fund

NABARD’s Warehouse Infrastructure Fund provides loans to public and private sector entities for construction of warehouses, silos, cold storage, and cold chain infrastructure with minimum aggregate capacity of 5000 MT for agricultural and allied produce. Interest rate is based on NABARD Prime Lending Rate — currently approximately 9.25 percent per annum.

The NABARD WIF is particularly important for plain dry warehouses and multi-commodity cold storage projects that may not qualify under NHB’s horticultural-produce focus.

PMKSY — PM Kisan SAMPADA Yojana

For agro-processing and food storage infrastructure — PMKSY provides grants up to 35 percent of project cost for eligible food processing and cold chain projects. Applications route through the Ministry of Food Processing Industries and require detailed technical and financial documentation including a complete Detailed Project Report and Feasibility Report.

The CMA Report Format for Warehouse Bank Loans

The CMA Report — Credit Monitoring Arrangement — with all 7 RBI-standardised statements is the most critical financial document in your warehouse bank loan application. For a warehouse project, three specific elements require particular attention that generic CMA templates frequently get wrong.

Revenue Model — How the CMA Reflects Warehouse Income

Warehouse revenue comes from storage charges — paid per MT per month by the commodity owner. At current market rates in most states — dry storage charges range from Rs.150 to Rs.300 per MT per month. Cold storage rental ranges from Rs.200 to Rs.400 per MT per month for most commodity categories.

Your revenue projection in Statement 2 must show realistic occupancy — not 100 percent from Day 1. Banks compare against industry occupancy benchmarks.

Year 1 Revenue — Dry Warehouse Example:

Storage Capacity: 5,000 MT

Year 1 Occupancy: 55 percent

Average Occupancy: 2,750 MT per month

Storage Charge: Rs.250 per MT per month

Monthly Revenue: Rs.6,87,500

Annual Revenue: Rs.82,50,000

Depreciation Treatment in Warehouse CMA Reports

Civil structure — RCC construction — is depreciated at 10 percent WDV under the Income Tax Act. Plant and machinery including refrigeration compressors, material handling equipment, and weighbridge — 15 percent WDV. Electrical installations — 10 percent. Computers and office equipment — 40 percent.

For a 5000 MT cold storage with Rs.4 crore total investment — Year 1 depreciation can be Rs.40 lakh to Rs.60 lakh. This depreciation must be correctly added back to net profit when calculating Net Cash Accruals for DSCR. Omitting this is the most common error in warehouse CMA Reports prepared by non-CA practitioners.

DSCR Calculation for Warehouse Term Loans

Correct DSCR Formula:

DSCR = Net Profit After Tax PLUS Depreciation

       divided by

       Term Loan Repayment PLUS Term Loan Interest

Must be above 1.25 for every repayment year

For warehouse projects — the large depreciation on civil and refrigeration assets means that adding depreciation back to net profit often makes the difference between an apparent DSCR that looks unviable and one that comfortably clears the 1.25 threshold.

At Sharda Associates our CA team builds your complete CMA Report — all 7 statements linked as an integrated system, DSCR correctly calculated with depreciation at statutory rates, Current Ratio above 1.33 every year, and Balance Sheet balancing in every projection year.

Documents Required for 5000 MT Warehouse Bank Loan Application

Technical Documents : Current civil construction quotation from a licensed contractor — for shed, flooring, boundary wall, and approach road. Current refrigeration system quotation from an authorised supplier — for cold storage projects. Equipment quotations — forklift, weighbridge, fire safety system, pallet racks. Power connection documents — sanctioned load or load extension application from DISCOM. Land documents — ownership or minimum 10-year lease agreement. Approved building plan from competent authority.

Financial and Business Documents : CA-certified Project Report — mandatory. CMA Report with all 7 statements — mandatory. Feasibility Report — mandatory for NHB, NABARD, and PMKSY applications. Udyam Registration Certificate. GST Registration Certificate. Last 2 to 3 years ITR and audited financials for existing businesses. Last 12 months bank statements. Aadhaar and PAN of all promoters. Existing loan sanction letters.

NHB and NABARD Specific Documents : Bank sanction letter with appraisal report — required by NHB before subsidy is released. Detailed technical specifications certified by a licensed civil engineer — CE Civil certificate. Refrigeration system specifications certified by a mechanical engineer — CE Mechanical certificate. CA certificate for project cost estimates — CA certificate for cost components.

Conclusion

A 5000 MT warehouse is a commercially strong infrastructure investment in India in 2026. The demand for organised storage — for grains, horticulture, processed food, and general agri-commodities — is growing consistently as India’s food supply chain formalises. Government subsidy support through NHB, NABARD, and PMKSY makes the effective cost of setting up genuinely attractive for promoters who access the schemes correctly.

The difference between a project that gets funded and one that sits in appraisal for months is almost always documentation. A Project Report with current construction costs verified by quotations. A CMA Report with DSCR correctly calculated including civil and equipment depreciation. A Feasibility Report that addresses technical and regulatory requirements completely. And all three documents telling exactly the same financial story.

At Sharda Associates our CA team prepares this complete documentation package for warehouse projects across India — in the correct format, with correct 2026 costs, and structured for the specific bank and scheme your project is targeting. Call or WhatsApp +91 89899 77769

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Frequently Asked Questions

1. What is the cost of a 5000 MT warehouse project in India ?
A 5000 MT dry warehouse costs approximately Rs.1.32 crore to Rs.1.92 crore excluding land. A 5000 MT cold storage costs Rs.4 crore to Rs.6 crore excluding land. Costs vary significantly by location, commodity type, insulation specifications, and refrigeration system quality.

2. What government subsidy is available for a 5000 MT warehouse project?
NHB provides 35 to 50 percent back-ended subsidy for cold storage of horticultural produce. NABARD Warehouse Infrastructure Fund provides loans at subsidised rates for 5000 MT plus capacity dry and cold warehouses. PMKSY provides up to 35 percent grants for food storage and agro-processing infrastructure.

3. Is a Project Report mandatory for a warehouse bank loan?
Yes — for any warehouse project loan above Rs.10 lakh. A CA-certified Project Report, CMA Report with all 7 statements, and for scheme applications a Feasibility Report are all required. Banks will not begin credit appraisal without these documents.

4. What is the realistic occupancy rate to show in Year 1 of a warehouse Project Report?
50 to 60 percent occupancy in Year 1 is what banks consider credible for a new warehouse facility. Claiming 90 to 100 percent occupancy from Day 1 is flagged as unrealistic. Year 2 can show 70 to 75 percent and Year 3 onwards 80 to 90 percent.

5. What power connection is required for a 5000 MT cold storage?
A 5000 MT cold storage typically requires 150 to 200 KVA of sanctioned electrical load. Power availability must be confirmed with the local DISCOM before the Project Report is finalised — banks verify this during site inspection and the implementation schedule must reflect electrical connection timelines.

6. What is the DSCR requirement for a warehouse bank loan?
DSCR must be above 1.25 for every individual repayment year. For warehouse projects — correctly including depreciation on civil structure at 10 percent WDV and on refrigeration and equipment at 15 percent WDV in Net Cash Accruals is critical. This depreciation add-back is frequently omitted in non-CA-prepared warehouse CMA Reports.

7. Can I get a warehouse loan without property collateral?
For warehouse projects up to Rs.5 crore — CGTMSE guarantee coverage can enable collateral-free lending through empanelled banks. The strength of your Project Report and CMA Report becomes the bank’s primary security in the absence of property collateral.

8. How long does warehouse project loan approval take?
For NHB and NABARD-linked applications — 6 to 12 weeks after submission of complete documentation including technical certificates. For standard bank term loans — 4 to 8 weeks. Well-prepared documentation with all technical certificates in order reduces this timeline significantly.