Centre to develop a capacity of 111.125 LMT of Hub and Spoke Model Silos at 249 locations across the country for storage of food grains

Ministry of Food & Public Distribution:

Under ‘Hub and Spoke Model’ meant for development of wheat Silos across the country, the Department of Food & Public Distribution has proposed to develop a capacity of 111.125 LMT of Silos at 249 locations across the country.

With a view to modernize storage of food grains and to ramp-up the storage capacity for food grains in India, a new model ‘Hub & Spoke’ Model for implementation in Public Private Partnership (PPP) Mode has been proposed.

The proposed Silos to operate 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 1st phase silos at 14 locations (10.125LMT) on DBFOT mode on 26/04/2022 and for 66 locations (24.75 LMT) on DBFOO mode on 21/06/2022.

As the land acquisition becomes the most crucial part of the DBFOO project, in order to facilitate availability of land to the Concessionaires, this Department took up the issue of identification of suitable surplus land, if any, with the concerned State Governments.

With the sustained efforts of the Department of Food & PD, various meeting with the State Governments and cooperation by the State Governments, some land parcels have been identified by the State Governments for lease/transfer of the same to respective concessionaires under applicable rules.

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 via 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.

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