FCI To Build Steel Silos Of 1.1 Crore Metric Tonne Capacity With Rs 9,236 Crore

In an effort to increase efficiency in the procurement of agricultural produce, the Food Corporation of India (FCI) plans to construct modern steel silos at 249 locations with a capacity of 111 Lakh Metric Tonnes (LMT).

To be built with a total investment of 9,236 crore under Public Private Partnership (PPP), these steel silos are planned across 12 states under the Hub and Spoke model.

“These modern Silos with bulk handling facilities are a scientific way of storing food grains and ensures better preservation of food grains,” Ministry of Consumer Affairs, Food and Public Distribution said.

“These modern Silos near farms would act as purchase centers (mandies) and expected to reduce distance for farmers and further reduce operational difficulties and complexities,” it added.

Also, mechanized operations make these silos operational round the clock and also reduce turn-around time for intake and offtake of agri-produce.

Further, these modern steel silos require approximately 1/3rd land as compared to conventional storage warehouses.

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 construction and operation of these modern Silos for a pre-defined period.

Through this PPP mode of DBFOT, the land is to be provided by FCI while under the DBFOO mode, the land is to be acquired by the private entities.

In the first phase of the Hub and Spoke model, silos of 34.8 LMT capacity at 80 locations would be constructed by FCI.

Out of this, 10 LMT at 14 locations would be under DBFOT mode and 24.7 LMT at 66 locations under DBFOO mode.

These Silos at 80 locations are spread across Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Rajasthan, Maharashtra, Bihar, West Bengal and Jammu & Kashmir. These facilities are expected to be built with an investment of more than Rs 2,800 crore.

In the already awarded and ongoing Silo Projects, a capacity of 17.7 LMT at 31 locations has been completed or put to use and 15.5 LMT at 31 locations are under various stages of implementation.