The Food Corporation of India (FCI) intends to construct 111.125 lakh metric tonnes (LMT) of contemporary steel silos at 249 sites across 12 states utilising the Hub & Spoke architecture, at a cost of roughly 9,236 crores. These silos would be built in three stages over the following three to four years.
FCI would build silos with a capacity of 34.875 LMT at 80 sites in the first phase of the Hub & Spoke scheme. DBFOT (Design, Build, Finance, Operate, and Transfer) mode would apply to 10.125 LMT at 14 sites, whereas DBFOO (Design, Build, Finance, Own, and Operate) mode would apply to 24.75 LMT at 66 locations.
Tenders for DBFOO mode are set to open on October 31, 2022, whereas tenders for DBFOT mode were launched on August 10, 2022, with one project granted to a developer and others in the works. These contemporary silos with bulk handling facilities are a scientific means of storing food grains and ensuring improved food grain preservation.
In the previously awarded and continuing Silo Projects, a capacity of 17.75 LMT has been completed/put to use at 31 sites (including the Circuit Model), and 15.50 LMT is in different phases of implementation at 31 locations.
DBFOT (Design, Build, Finance, Operate, and Transfer) and DBFOO (Design, Build, Finance, Own, and Operate) are the planned development models in which private firms will be responsible for the building and operation of these contemporary silos for a specified length of time. The land will be given by FCI in this public-private partnership (PPP) method of DBFOT, whereas the land would be purchased by private organisations under the DBFOO mode.
These silos, which will be erected in 80 places throughout nine states and one union territory (Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Rajasthan, Maharashtra, Bihar, West Bengal, and Jammu and Kashmir), are projected to cost more than Rs. 2,800 crores. These initiatives are developed in collaboration with state governments, Niti Aayog, the Ministries of Finance, Railways, and Steel.
These sophisticated silos near farms would serve as purchasing hubs (mandis), reducing distance for farmers while also reducing operational issues and complications. Mechanized operations keep silos functioning around the clock and minimise turn-around time for agricultural produce input and off-take, improving overall efficiency. Furthermore, as compared to traditional storage buildings, these new steel silos use around one-third the amount of area.