Govt receives 38 technical bids for setting up food silos at 14 locations

New Delhi: The government on Tuesday said it has received 38 technical bids for setting up food silos under the 'hub and spoke model' at 14 locations in six states. The bids have been received from 15 prospective parties. Technical evaluation is expected to be completed in three-four weeks, the union food ministry said in a statement.

The Ministry has proposed to develop a capacity of 111.125 lakh tonne of Hub and Spoke Model Silos at 249 locations across the country.

These silos will be constructed in two modes through implementing agency Food Corporation of India (FCI). One is constructing under the DBFOT (Design, Build, Fund, Own & Transfer) in state-run FCI's land and the other DBFOO (Design, Build, Fund, Own & Operate) in land of concessionaire/other agency.

Hub and Spoke Model is a transportation system which consolidates the transportation assets from standalone locations referred to as 'Spoke' to a central location named as 'Hub' for long-distance transportation.

Hubs have a dedicated railway siding and container depot facility while the transportation from Spoke to Hub is undertaken through road and from Hub to Hub vai rail.

This model by harnessing the efficiency of a railway siding promotes cost efficiency through bulk storage and movement, reduces cost and time of handling and transportation and simplifies operational complexities in addition to economic development, infrastructure development & employment generation in the country.

Besides, silos are declared as sub-Mandi yards which bring ease of procurement for farmers and leads to a reduction in logistics cost.

Tenders were floated for the construction of silos at 14 locations on DBFOT mode on April 26, and for 66 locations on DBFOO mode on June 21, this year.

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