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New DelhiĀ  : The Government of India has approved an action plan for construction of steel silos in the country for a capacity of 100 LMT in Public Private Partnership (PPP) mode for modernising storage infrastructure and improving shelf life of stored foodgrains for Public Distribution System. Against this, as on September 30, 2019, steel silos of 7.25 LMT capacity have been created.

The silo developers for construction are selected through tender process. Subsequently, in the Concession Agreement signed between the Authority (i.e. Food Corporation of India/State Government Agencies) and the Concessionaire (developer), timelines are specified for completion of construction of steel silos and non-adherence to these timelines leads to imposition of penalty on the concessionaire. Therefore, this process of construction of steel silos has an in-built feature of specified timelines to complete the construction of steel silos.

This information was given in a written reply by the Minister of State Consumer Affairs, Food and Public Distribution Danve Raosaheb Dadarao in Lok Sabha on November 19, 2019, according to a PIB release.

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