The National Commodities Management Services Limited (NCML), a pioneer in collateral warehousing management, is targeting to increase its space in silos by expanding the capacity as well as coming up with greenfield projects, both independently and under the government’s guarantee scheme. This is in line with the country’s warehousing sector constructing more steel silos than conventional godowns.
“Two silos in Haryana are already operational, while two more in Punjab will be ready by Diwali. Another silo in Basti, Uttar Pradesh, is set to be operational before March and two in Bihar will be functioning by May 2023, taking our total silos under the government’s guarantee scheme to seven,” said Sanjay Gupta, Managing Director and Chief Executive Officer of NCML. The company is creating total nine silos (including two operational) under a 30-year guarantee scheme.
Hub and spoke model
As the 2015 plan to create steel silos of 100 lakh tonnes (lt) capacity on a PPP (Public Private Partnership) mode could not yield desired results – 12.25 lt constructed and 16.5 lt under construction — the Food Ministry this year modified the plan and announced to create a capacity of 111.125 lt at 249 locations in three phases over the next 4-5 years under the ‘Hub and Spoke’ model.
In phase I, tenders have already been floated for 14 locations to create silos space worth 10.1 lt on Design, Build, Fund, Own & Transfer (DBFOT) mode, and for 66 locations to build 24.75 lt on Design, Build, Fund, Own & Operate (DBFOO) mode.
Under DBFOT mode, land owned by Food Corporation of India (FCI) is to be utilised whereas under DBFOO mode land of concessionaire/other agency is to be used to construct the silos. 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 “Hub” for long-distance transportation. Hubs have a dedicated railway siding and container depot facility while the transportation from Spoke to Hub is undertaken by road.
Maize storage
Gupta said NCML already has created four silos with a 1.02 lt capacity, including two silos – one at Purnea, Bihar with a 36,000-tonne capacity and another at Bareilly, Uttar Pradesh with a 16,000-tonne capacity. There is a plan to increase the silo capacity of Purnea to 50,000 tonnes as demand for maize storage under good scientific conditions is very high.
Processors and feed makers, including poultry industry want safe maize as the risk of aflatoxin is high if maize is not dried and properly stored, Gupta said adding silo facility offers all modern technology at one place. Aflatoxin is a naturally occurring toxin produced by the fungus Aspergillus flavus.
FCI has already 18 lt of silos in operation since the concept of the steel warehouse started in 2005 whereas about 50 lt are at various stages of implementation. Each of the silos under FCI is about 50,000-tonne capacity, except the first six that got constructed under a pilot scheme and are operated by Adani Agri Logistics.