Food Corporation to construct 111.125 LMT modern steel silos in 12 states

New Delhi: 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 hub and spoke model in public-private partnership with a total investment of approximately Rs 9,236 crores. These silos would be constructed in three phases over the next three-four years.

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.

Modes of opening modern silos under consideration

Tender under DBFOO mode is due to be opened on October 31 whereas the tender for DBFOT mode has been opened on August 10 and one project was awarded to a developer and for other projects, the process is underway. These modern silos with bulk handling facilities are a scientific way of storage of foodgrains, which ensures 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 or has been put to use and 15.50 LMT at 31 locations are under various stages of implementation.

The proposed 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 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.

Locations of modern silos

These silos at 80 locations shall be spread across nine states and one Union Territory, including Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Rajasthan, Maharashtra, Bihar, West Bengal and Jammu & Kashmir. These silos are expected to be built with an investment of more than Rs 2,800 crore. The projects are conceived in consultation with state governments, Niti Aayog, the Ministry of Finance, the Ministry of Railways, and the Ministry of Steel.

Advantages of modern steel silos

These modern silos near farms would act as purchase centres and are expected to reduce the distance for farmers and further reduce operational difficulties and complexities. Mechanised operations make silos operational round the clock and also reduce the turn-around time for intake and off-take of agri-produce and would improve overall efficiency. Further, these modern steel silos require approximately 1/3rd of land as compared to conventional storage warehouses.

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