Nearly 20 LT steel silo capacity created since 2014 to store grains, 65 LT in process

Baroda, Jun 16 (PTI) In a bid to modernise storage facilities for foodgrains, the Centre in the last 11 years has established steel silos, with a capacity of 19.5 lakh tonne, across the country under public-private partnership (PPP) model.

Another 40 lakh tonne (LT) steel silos capacity is under construction while tenders for 25 lakh tonne capacity are under process, a senior official in Union Department of Food and Public Distribution said here.

Under this PPP model, Leap Agri Logistics (Baroda) Pvt Ltd has also set up steel silo project at village Kayavarohan in Baroda district to handle 50,000 tonne of wheat on behalf of the central government.

The Food Corporation of India (FCI) is building steel silos in PPP model as part of the central government's efforts to create modern storage facilities to preserve foodgrains for a longer period of time, check leakages and save logistics cost.

State-owned FCI is the nodal agency for procurement and distribution of foodgrains.

These silo projects are being built on a Design, Build, Finance, Own & Operate (DBFOO) or Design, Build, Finance, Operate & Transfer (DBFOT) basis. They are being established on both private-owned land and FCI land parcels. FCI takes these steel silos on rent for 30 years under the agreement.

"Since the last 11 years, silos with capacity of 19,50,000 tonne have been constructed under PPP mode at 38 locations," the official said.

Silos with a capacity of 39,62,500 tonne are under construction at 90 locations.

Further, tenders for construction of 25,12,500 tonne capacity silos at 54 locations are under technical/financial evaluation stage.

Augmentation of storage capacity in the form of silos has reduced storage of foodgrains in open spaces (CAP), the official said.

Out of the 19.5 lakh tonne of steel silos set up in the last 11 years of the Modi government, only 12,500 tonne capacity is for storing rice. Another 12,500 tonne of steel silos for rice is under construction.

The official said that steel silos for rice is under pilot stage.

Silos are used for storing and transporting food grains in bulk to develop an automated and modernised food supply chain management system through mechanized handling.

Talking about the benefits of steel silos, the official said it requires about 1/3rd of land area as compared to conventional storage.

"It consists of storage of food grains in monitored atmosphere in bulk form. These steel silos ensure better preservation of foodgrains and enhances its shelf life. We can easily store wheat for three years," the official said.

Losses due to theft, pilferage, and transportation are negligible when foodgrains are stored in silos and transported in bulk, as opposed to foodgrains stored in bags in conventional warehouses.

A senior official of Leap Agri Logistics (Baroda) Pvt Ltd said that the company's stell silo project is spread over 18 acre land, owned by it. The company has invested around Rs 50 crore to develop this project under DBFOO mode. It is a railway siding based silo.

The concession agreement for this project was signed in July 2019. The project was completed in May last year and is under operation. PTI MJH MJH ANU ANU