Plan panel, ministry differ over silo project

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Sandip Das: New Delhi, Nov 22 2012, 03:22 IST
Differences have cropped up between the Planning Commission and food ministry on the issue of creation of two million tonne capacity silos through the public- private partnership (PPP) mode.

Sources say while Food Corporation of India (FCI), the nodal agency to implement the project, has been insisting on making 'railway siding' mandatory for silos, the Planning Commission believes that the construction of railways siding would increase the cost of project which would be unattractive to the private players.

An Inter-ministerial group which meet on Monday could not resolve the issue. FCI maintains that railway siding at silos would ensure that grain are not untouched and stored scientifically till they reach the distribution centres across the country and in the absence of railway network, the grain has to be transported through trucks and had to packed manually.

When contacted, food minister KV Thomas said discussions are on to resolve all issues. As per the proposal approved by an EGoM earlier in February this year, the private players would put in money, while FCI would take silos on rent for grain storage for 30 years.

In case of private players seeking viability gap fund and lands for silos from the state governments, FCI would give rent to silos operator for grain storage for 10 years. Silos with 50,000 tonne and 25,000 tonne capacities is slated to be built at 42 locations across 10 states. An EGom on food in February this year cleared the proposal of creation of silos in states including Bihar, Haryana,

... contd.

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