 "Labourers try to protect bags of wheat from rain after heavy rains last night at Grain Market in Patiala, on Tuesday, 28 April 2015 Picture by PTI")
Government-owned Food Corporation of India (FCI) is set to get 1.35 million tonnes (mt) of additional storage capacity in two years, following finalisation of bidders for construction of 27 silos of 50,000 tonnes each.
Sources said bidders with prior experience on warehouse construction and management of foodgrain had been chosen for 30-year leases. The silos would be built near rail yards and stations, for smooth transport of grain. FCI currently has total grain storage capacity of 84.48 million tonnes, of which 35.8 mt is with itself and the rest with other (states) agencies.
“The tenders were opened on Thursday. National Collateral Management Services (NCML) has emerged the largest bidder, with allocations of seven locations for construction of silos,” said a company source.
FCI initiated e-tenders for selection of a developer-cum-operator for construction of these silos of 50,000-tonne capacity each at 27 locations, initially across six states through public-private participation on a design, build, finance, own and operate basis.
With an estimated project cost of Rs 60-70 crore each, the overall spending would be Rs 1,900 crore. This is the second tender in a series for creating sufficient foodgrain silo storage, using the latest technology.
“We estimate a total capex of Rs 450-480 crore each for seven locations, which would be raised partly through internal accrual and term loans,” said Sanjay Kaul, managing director, NCML.
Rail lines are to also be built, to connect to the main track. Much job generation is anticipated. The contract winners must arrange finance on their own to build and operate the silos and rail sidings for FCI under a 30-year guarantee. They will get fixed, variable and service charges from FCI.
