Centre walking towards modernizing foodgrain storage infrastructure in the country

New Delhi, August 16, 2022 (www.chandigarhheadline.com): The Department of Food and Public Distribution (DFPD) has received overwhelming response towards the technical bids of Design, Build, Fund, Own & Operate (DBFOT) tender under Hub and Spoke Model. Taking into consideration modernization of foodgrain storage infrastructure in the country, a new model for development of grain Silos across the country i.e. Hub & Spoke Model in Public Private Partnership (PPP) Mode has been proposed.

Total of 38 bids have been received against 4 bundles comprising of 14 locations in the state of Uttar Pradesh, Bihar, Rajasthan, Punjab, Maharashtra & Madhya Pradesh. Total 15 prospective parties have shown their interest and submitted their bids. Technical Evaluation is expected to be completed in 3-4 weeks.

Hub and Spoke Model is a transportation system which consolidates the transportation assets from standalone locations referred to as “Spoke” to a central location named as “Hub” for long distance transportation. Hubs have a dedicated railway siding and container depot facility while the transportation from Spoke to Hub is undertaken through road and from Hub to Hub vai rail. This model by harnessing the efficiency of railway siding, promotes cost efficiency through bulk storage & movement, reduces cost and time of handling and transportation and simplifies operational complexities in addition to economic development, infrastructure development & employment generation in the country. Besides, Silo are declared as sub Mandi yard which brings ease of procurement for farmers and leads to reduction in logistics cost.

Under Hub and Spoke Model, the Department has proposed to develop a capacity of 111.125 LMT of Hub and Spoke Model Silos at 249 locations across the country under Design, Build, Fund, Own & Transfer (DBFOT) (FCI’s land) and Design, Build, Fund, Own & Operate (DBFOO) (Land of concessionaire/other agency) mode, through implementing agency i.e. Food Corporation of India (FCI).

Tenders have been floated for construction of silos at 14 locations (10.125) on DBFOT mode on 26/04/2022 and for 66 locations (24.75 LMT) on DBFOO mode on 21/06/2022.