Food Corporation of India (FCI) has awarded contracts for creation of 1.6 Million MT silos and State Governments have completed/awarded contracts for 2.15 Million MT silos. Thus, contracts for silos of 3.75 Million MT have been awarded.
Government has approved an action plan of FCI for construction of steel silos of capacity 10 Million MT by FCI as well as State Governments in Public Private Partnership (PPP) mode in a phase-wise manner (3 phases) by the end of year 2019-20. FCI handles about 60 Million MT of wheat and rice annually.
The Silos are being constructed through Private Sector participation in Public Private Partnership (PPP) mode. FCI will be benefited as it will not incur any capital investment for any of the projects.
The responsibility of designing, building, financing and operating the silos will be of private parties. Further, there will be benefits from creation of silos as it is a safer and modern means of storage.
Foodgrains can be stored for a longer period, with reduced losses and less handling and labour costs.
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