FCI plans 2-MT capacity silos at an investment of Rs 2,000 cr

FCI is planning to revamp its 2-million tonnes of conventional storage capacity for wheat and rice with 'silos' through PPP model with an investment of about Rs 2,000 crore over the next 3-4 years.
A silo is a steel structure, comprising 4 large size cylindrical shape bins each with a capacity of about 12,500 tonnes, where grains can be stored without jute bags for longer duration.
At present, India has 71 million tonnes (MT) of conventional storage space, including 33 MT under the control of state-run Food Corporation of India (FCI), while the remaining belongs to state agencies and Central Warehousing Corporation.

"FCI is aiming for silos of 2 MT capacities to be built in next 3-4 years and it will require an investment of about Rs 2,000 crore," a senior government official said.
The silos will be designed, built, financed and operated by the private partner while it will be owned by the FCI. The Food Corporation would be providing guarantee of rentals for 30 years, the official added.
FCI has undertaken study for creation of silos at 11 locations across the country and the applications for 5 will be invited soon. These locations are: Sahnewal (Punjab), Kotkapura (Punjab), Narela (Delhi), Katihar (Bihar) and Changsari (Assam).

The official also said there are plans to have food grains storage facilities in modern silos with bulk loading/unloading through railway sidings, which reduce the storage and transit losses substantially.

The current assessment of more than 90 potential locations for development of silos is in progress and integration of silo complex with railways will be important and necessary.
At present, FCI has 5.5 lakh tonnes of silos capcity under the PPP model and it has 20-year contract with the Adani group for the same.
FCI has been implementing the Public Entrepreneurship Guarantee (PEG) scheme under which private entrepreneurs develop conventional covered ware houses and get guaranteed rentals for storage and preservation charges.