An investment of Rs 4,500 crore is in pipeline by private entrepreneurs for setting up covered storage area of 15 million tonnes (mt) for foodgrain in India.
The country has a total of 42 mt covered capacity storage. But it has been falling short due to the increasing output in the last few years.
The new capacities are to come up in 19 states and the majority of them would be set up in Punjab, Haryana and Uttar Pradesh. These three states would add over 11 mt of new scientific storage for foodgrain of the total of 15 mt.
“Additional capacities are created in producing states as the movement of foodgrain is dependent on the availability of rakes from railways. As the harvesting is done in short time it is difficult to move huge stock of foodgrain simultaneously. So, producing states need to have larger space for storage,” a senior FCI official said. This despite the fact that escalating land prices in this pocket are a big factor dissuading investors from using land for storage than as a real estate asset.
Private players have come forth under the PEG (private enterprenuer guarantee scheme) of FCI under which 7-year guarantee and 10-year guarantee is provided to the private investors for offering scientific storage for foodgrain.
Tenders (technical) have already been opened in Punjab, Rajasthan, Jammu and Kashmir, Himachal Pradesh, Jharkhand, Andhra Pradesh, West Bengal and Orissa.
Last time, in 2001, under the same scheme the rent was pre-determined at Rs 2.40 per square feet per month. But, rates are open this time and response is better.
The Chairman and Managing Director of FCI Siraj Hussain said the Planning Commission of India is pursuing a study on creation of silos (the most scientific method of foodgrain storage with humidity and temperature control) at various locations in the country. It will determine the capacity and other parameters and submit its report to the government, he added.
Presently silos are put up by Adani group in Punjab and Haryana with a capacity of 200,000 tonnes each at Moga and Kaithal used for wheat storage.
