Government Working to Modernize India's Foodgrain Storage Infrastructure

The Department of Food and Public Distribution (DFPD) has received a huge number of technical bids for the Design, Build, Fund, Own, and Operate (DBFOT) tender under the Hub and Spoke Model. Taking into account the modernization of the country's foodgrain storage infrastructure, a new model for the development of grain silos across the country, namely the Hub & Spoke Model in Public Private Partnership (PPP) Mode, has been proposed.

A total of 38 bids were received for four bundles totaling 14 locations in Uttar Pradesh, Bihar, Rajasthan, Punjab, Maharashtra, and Madhya Pradesh. A total of 15 interested parties have expressed their interest and submitted bids. Technical evaluation is expected to take 3-4 weeks.

For long-distance transportation, the Hub and Spoke Model consolidates transportation assets from standalone locations known as "Spoke" to a central location known as "Hub." Hubs have their own railway siding and container depot, while transportation from Spoke to Hub is done by road and from Hub to Hub by rail.

This model promotes cost efficiency through bulk storage and movement, reduces the cost and time of handling and transportation, and simplifies operational complexities, in addition to economic development, infrastructure development, and job creation in the country. Furthermore, Silo has been designated as sub-Mandi yards, making procurement easier for farmers and lowering logistics costs.

Under the Hub and Spoke Model, the Department has proposed to build 111.125 LMT of Hub and Spoke Model Silos at 249 locations across the country using the Design, Build, Fund, Own & Transfer (DBFOT) (FCI's land) and Design, Build, Fund, Own & Operate (DBFOO) (Concessionaire/Other Agency) modes, with the Food Corporation of India as the implementing agency (FCI).

Tenders have been issued for the construction of silos in 14 locations (10.125) on DBFOT mode on April 26, 2022, and 66 locations (24.75 LMT) on DBFOO mode on June 21, 2022. Privatization and the development of larger and more widely distributed storage infrastructure, all the way down to the village level, will help to increase storage capacity.