Tenders for enhancing grain storage capacity awarded through transparent, online process: Govt

Tenders for enhancing grain storage capacity are awarded through a transparent, online process that many states governed by INDIA bloc parties have also adopted, Union Food and Public Distribution Minister Prahlad Joshi said on Wednesday. The issues of food storage capacity increase and privatisation of Food Corporation of India (FCI) godowns were addressed in the Lok Sabha on Wednesday, with Joshi responding to questions from Trinamool Congress (TMC) MP Sudip Bandyopadhyay.

Bandyopadhyay raised concerns about the sufficiency of the storage capacity at FCI godowns and the involvement of a private entity in the sector.



He pointed out that sophisticated silo godowns were being set up, primarily in Maharashtra and Gujarat, by the private company and questioned if the government planned to hand over FCI's operations to it.

Responding to these questions, Joshi clarified that the overall storage capacity was 837.68 lakh metric tons (LMT) with 650-700 LMT foodgrains typically stored.

"Today, there is no shortage of storage capacity. This issue may have existed during your time but it does not exist now," he said.

Joshi highlighted the transparency of the system, noting that tenders were awarded through an online process.

"In the first phase of the hub-and-spoke model, a capacity of 34.87 LMT silos at 80 locations is planned. Out of this, 10.125 LMT at 14 locations will be under the DBFFO (Design, Build, Finance, Fund, Own) mode on FCI land and 24.7 LMT at 66 locations on private land awarded through DBFFO mode," he explained.


He emphasised that contracts were awarded through a transparent online tendering process.

"I don't know which company has received the contract but it is done through the most transparent tendering process," Joshi said.

He also pointed out that similar awards had been made in states governed by INDIA bloc parties.

Dismissing the allegations as baseless, Joshi said contracts were awarded in Telangana and Kerala as well as Rajasthan, when the Congress was in power in the state, through open and transparent tendering systems.

He reiterated that the current system ensured no shortage of storage and operated with full transparency.

The opposition's only job has been to level accusations. Nothing was done during its time, Joshi said.