Current Affairs

FCI to construct 111.125  LMT modern steel silos at 249 locations in 12 states

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 & Spoke model under Public Private Partnership with total investment of approx. 9236 crores. These silos would be constructed in three phases over next 3-4 years.

 In the first phase of 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 under DBFOO mode is due to be opened on 31.10.2022 whereas tender for DBFOT mode already been has opened on 10.08.2022 & one project was awarded to a developer and for other projects, process is underway. These modern Silos with bulk handling facilities is a scientific way of storage of foodgrains and 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 / put to use and 15.50 LMT at 31 locations are under various stages 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 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 the 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 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, Ministry of Finance, Ministry of Railways, Ministry of Steel.

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. 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 land as compared to conventional storage warehouses.