FCI to construct modern steel silos under Hub and Spokes model across country under PPP
Oct 19, 2022
New Delhi [India], October 19 : Food Corporation of India (FCI) has planned to construct 111.125 Lakh Metric Tonnes (LMT) modern steel silos at 249 locations spread across 12 states under the Hub and Spoke model under the Public Private Partnership with a total investment of approximately 9,236 crore. These silos would be constructed in three phases over the next 3-4 years.
According to the official statement given by the Department of Food & Public Distribution, in the first phase of the Hub and Spoke model, silos of 34.875 LMT capacity at 80 locations would be constructed by FCI. Out of this, 10.125 LMT at 14 locations would be under DBFOT mode and 24.75 LMT at 66 locations under DBFOO mode.
The statement said that the tender under DBFOO mode is due to be opened on 31.10.2022 whereas the tender for DBFOT mode has already been opened on September 10, and one project was awarded to a developer for other projects, the process is underway. These modern Silos with bulk handling facilities are a scientific way of storage of food grains and ensure better preservation of foodgrains.
In the already awarded and ongoing Silo Projects, a capacity of 17.75 LMT at 31 locations (Including Circuit Model) has been completed and put to use and 15.50 LMT at 31 locations are under various stages of implementation.
As per the proposed plan, the model of development is DBFOT (Design, Build, Finance, Operate and Transfer) and DBFOO (Design, Build, Finance, Own and Operate) wherein the private entities shall be responsible for the construction and operation of these modern Silos for a pre-defined period. Through this Public Private Partnership (PPP) mode of DBFOT, the land is to be provided by FCI while under the DBFOO mode, the land is to be acquired by private entities.
These Silos at 80 locations shall be spread across 9 states and 1 UT i.e. Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Rajasthan, Maharashtra, Bihar, West Bengal and Jammu & Kashmir and are expected to be built with an investment of more than Rs. 2,800 crores. These projects are conceived in consultation with state governments, Niti Aayog, the Ministry of Finance, the Ministry of Railways, and the Ministry of Steel.
These modern Silos near farms would act as purchase centres (mandies) and are expected to reduce the distance for farmers and further reduce operational difficulties and complexities. Mechanized operations make silos operational round the clock and also reduce turn-around time for intake and off-take of agri-produce and would improve overall efficiency. Further, these modern steel silos require approximately one-third of the land compared to conventional storage warehouses.
