The Department of Food and Public Distribution (DFPD) has received an overwhelming response to the technical bids for the Design, Build, Fund, Own & Operate (DBFOT) tender under the Hub and Spoke Model. With a view to modernizing the country’s food storage infrastructure, a new model of grain silo development across the country, i.e. Hub & Spoke model under Public Private Partnership (PPP) mode, has been proposed.
A total of 38 bids were received for 4 packages comprising 14 sites in the state of Uttar Pradesh, Bihar, Rajasthan, Punjab, Maharashtra and Madhya Pradesh. A total of 15 potential parties have expressed interest and submitted their bids. The technical evaluation is expected to be completed in 3-4 weeks. The Hub and Spoke Model is a transport system that consolidates means of transport from separate locations referred to as “Spokes” to a central location called a “Hub” for long-distance transportation. Hubs have a dedicated rail siding and container depot, while transportation from Spoke to Hub is by road and from Hub to Hub by rail.
This model takes advantage of rail siding efficiency, promotes cost efficiency through bulk storage and transportation, reduces handling and transportation costs and time, and simplifies operational complexities in addition to economic development, infrastructure development, and job creation in the country. In addition, Silo is declared a Sub-Mandian yard, which makes it easier for farmers to place orders and leads to lower logistics costs.
Under the Hub and Spoke Model, the Ministry has proposed to develop a capacity of 111,125 LMT of Hub and Spoke Model silos at 249 locations across the country under Design, Build, Fund, Own & Transfer (DBFOT) (FCI land) and Design, Build, Fund, Own & Operate (DBFOO) (concessionaire country/other agency) through implementing agency i.e. Food Corporation of India (FCI). Tenders were issued for the construction of silos at 14 sites (10,125) under DBFOT mode on 26/04/2022 and at 66 sites (24.75 LMT) under DBFOO mode on 21/06/2022.
