Centre to attract Rs 5,000 cr pvt investment for storage infra | business | Hindustan Times
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Centre to attract Rs 5,000 cr pvt investment for storage infra

The Centre has chalked out a plan to attract about Rs 5,000 crore investment from the private sector to build an additional storage capacity of 126 lakh tonnes of foodgrains in 2009-10.

business Updated: Sep 03, 2009 18:50 IST

The Centre has chalked out a plan to attract about Rs 5,000 crore investment from the private sector to build an additional storage capacity of 126 lakh tonnes of foodgrains in 2009-10.

"The tender for the creation of additional storage infrastructure will be issued this month by Food Corporation of India (FCI)," a senior government official said.

According to the plan, private companies will be given five-year guarantee for construction of warehouses and silos to raise the storage capacity in Punjab, Haryana and Himachal Pradesh, the official added.

The government would store foodgrains for five years after the construction is completed as it would help the private sector an assured business for a particular period, the official noted

The move has come at a time when a large quantity of foodgrains procured by the Centre is lying in the open because of a space crunch.

According to the FCI data, as high as 140 lakh tonnes of wheat procured in 2008-09 season have not yet found a roof and are lying in the open in Punjab and Haryana.

Trade sources said the average cost of building a warehouse is about Rs 4,000 per tonne capacity. So, the private sector would have to invest about Rs 5,040 crore to create a storage capacity of 126 lakh tonnes, they added.