FCI inks pact with Adani Group to build two silos

New Delhi, June 9: Staterun Food Corporation of India (FCI) has entered into an agreement with Adani Group for the construction of two silos to store wheat, at an estimated cost of about R80 crore.

The two silos would have a combined storage capacity of 75,000 tonne. As part of the agreement, Adani Agri Logistics will construct silos at Kotkapura in Punjab and Katihar in Bihar in the next two years, a senior government official said.

The silos will be designed, built, financed and operated by the private partner while it will be owned by the FCI.

FCI, the government’s nodal agency for procurement and distribution of foodgrains, would provide guarantee of rentals for 30 years, the official added.

The silo at Kotkapura would have a capacity of 25,000 tonne and will require an investment of about R35 crore, while the other silo at Katihar would have a capacity of 50,000 tonne and is to be built at a cost of about R45 crore, a source said.

A silo is a steel structure, comprising large cylindrical shaped bins, normally each with a capacity of about 12,500 tonnes, where grains can be stored without jute bags for longer durations.

FCI will provide the rent assurance for 30 years. For the first year, the rate is fixed at R97 per tonne per month. The rates will keep on being revised based on the predecided formula, the source added.

At present, the total storage capacity under silos is about 10 lakh tonnes. Of this, 5.5 lakh tonne is with FCI and the remaining is with state agencies. PTI

The silos are meant to store wheat and will have a combined storage capacity of 75,000 tonne