FCI plans warehouses through PPP model

The Food Corporation of India (FCI) is planning to develop warehouses across the country through the public-private partnership (PPP) model. It has estimated an immediate capacity requirement for around 4.5 million tonne. Investments required to create this capacity would be around Rs 4,000 crore.

“It is not viable for FCI to invest Rs 4,000 crore. Hence, it has been decided to develop warehouses through the PPP model,” said SS Bhatoa, executive director of FCI southern region.

He was speaking to Business Standard on the sidelines of a seminar organised by the the Federation of Indian Chambers of Commerce and Industry along with FCI and Central Warehousing Corporation.

FCI has also constituted a national-level and state-level committee to look at the demand and immediate requirements. Bhatoa, who is chairing the south zone comprising Tamil Nadu, Andhra Pradesh, Kerala and Karnataka, noted that the zone alone required warehouses with a capacity of 900,000 tonne involving an investment of Rs 225 crore.

All these will be built close to the railway sidings, with each warehouse having a minimum capacity of 5,000 tonne and the maximum being 25,000 tonne. The construction period would be one year from the day of issuing the notification.

The proposal has gone to the national-level committee for examination and the approval is expected anytime now. Bhatoa did not commit on any timeframe for implementing these projects. Tenders for the warehouses will be floated through the Central Warehousing Corporation and FCI will not have any direct dealing with the investors, Bhatoa said.