Grain Terminals of FCI & Anticipated Problems therein

Updated: Jul 30, 2018

Food Corporation of India (FCI) has a target of converting 100 Lakh MT of Food grain storage from Bagged storage to silo storage by 2020. FCI is working hard to award Grain Storage Terminals of Capacity 25000 MT to 100000MT at various places under PPP mode to Concessionaires who would actually be executing these projects under Design Build Operate and Own or Design Build Operate and Transfer basis.

Grain Silo of Food Corporation of India
Biggest Grain Storage Terminal of India

There are many corporate houses that are interested to invest in these projects on VGF (Viability Gap Funding) and Non-VGF modes. Since these projects are very different from what FCI has executed in 2006 to 2008 through M/s Adani Agri Logistics Ltd., concessionaires may face some difficulties while operating these grain terminals.

M/s Adani Agri Logistics during 2006 to 2008 had executed a pilot project consisting of Seven grain-terminals on Design Build Operate and Own basis with a concept of Base Depots and Field Depots for Food Corporation of India. In this concept, FCI was the real owner of the grains and Adani was only acting as a custodian of grains. Grain transportation from Base Depot to Field Depot too was responsibility of M/s Adani. So everything was between two parties M/s Adani and M/s FCI.

This system was perfect, as there were fewer problems and even if problems were there the resolution was fast as only two parties were involved i.e. Adani and FCI. Moreover, while executing the projects M/s Adani mitigated all operation related issue during design and equipment purchase stage by inducting high precision equipment in the system itself so that they face much lesser problems.