Food Corporation of India (FCI) has announced to construct 111.125 Lakh Metric Tonnes (LMT) modern steel silos at 249 locations spread across 12 states, the Ministry of Consumer Affairs, Food & Public Distribution said in a statement.

The ministry said that modern Silos will have bulk handling facilities. In addition to this, it is a scientific way of storage of foodgrains that will ensure better preservation of foodgrains.

Investment of 9236 crores under the PPP model

These silos are being constructed under the Hub & Spoke model under Public Private Partnership. It will get a total investment of approximately 9236 crores and would be constructed in three phases over the next 3-4 years, as notified by the ministry.

In the first phase of the Hub & 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.

Tender to open this month

“The tender under DBFOO (Design, Build, Finance, Own, and Operate) mode is due to be opened on 31.10.2022 whereas the tender for DBFOT (Design, Build, Finance, Operate, and Transfer) mode already been has opened on 10.08.2022 & one project was awarded to a developer and for other projects, the process is underway,” the notification mentioned.

Silos at 31 locations completed

The Ministry of Consumer Affairs, Food & Public Distribution, in its notification said, “In the already awarded and ongoing Silo Projects, a capacity of 17.75 LMT at 31 locations (Including Circuit Model) has been completed/put to use and 15.50 LMT at 31 locations are under various stages of implementation.”

Under Public Private Partnership (PPP) mode, the FCI will be responsible for providing land under DBFOT model while the private entities acquire under DBFOO mode. Moreover,  the private entities shall be responsible for the construction and operation of the modern Silos for a fixed period of time.

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, Ministry of Steel.

How modern Silos will help?

These modern Silos near farms would act as purchase centers (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 1/3rd of land as compared to conventional storage warehouses.