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No. Silosl12511ih HLC MinutesI18.07.2018/2018 Dated: 24.07.2018

Sub: Minutes of 12th High Level Committee (HLC) meeting held on 18.07.2018 at
10.30 AM in Board Room of FCI Hqrs, Barakhamba Lane, New Delhi in respect
of construction of Silos under VGF & Non- VGF mode across the country for
storage of food grains.

Sir/ Madam,

Please find enclosed herewith the Minutes of lih HLC meeting held on 18.07)018 in
respect of construction of Silos across the Country for storage of food-grains under VGF &
Non-VGF mode.

This issues with the approval of Competent Authority.

Yours faithfully,

~~,
(Raja~harma)
General Manager (Silo)

To,

1. C& M.D, FCI, Chairman

Headquarters, New Delhi.

2. AS & FA, MoCA,F&PD, Member

Krishi Bhawan, New Delhi.

3. Managing Director, CWC, 411, Member

Siri Institutional Area, Haus Khas, New Delhi.

4. Joint Secretary (P&FCI), Member

/i MoCA,F & PD, Krishi Bhawan, New Delhi.
'I
I"

5. Joint Secretary (Storage), Member

MoCA,F & PD, Krishi Bhawan, New Delhi.

6. Pr. Advisor/ Advisor (Cost), PI Cell, Member

Do F&PD, Krishi Bhawan, New Delhi.
 7. Representative of Railway Board, Member
Ministry of Railways,
Rail Bhawan, New Delhi.

8. Executive Director, Member

(Storage/ Silos/ Traffic/ Procurement/ Sales/ Finance), F.C.I., Hqrs, New Delhi.

Copy to: -

1. The Executive Directors (Zone), FCI, Zonal Office, Noida/ Kolkata/Mumbai.

2. Principal Secretary (Food), Dept. of Food & Civil Supplies, Govt. of
Bihar/Punjab/Gujrat/Haryana/UP/West Bengal.
3. GMs (Region), FCI, Regional Office, Bihar/Punjab/Gujrat/Haryana/UP/West Bengal.

-:
General Manager (Silo)

r
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J_
 MINUTES OF 12th MEETING OF THE HIGH LEVEL COMMITTEE (HLC}
HELD ON 18.07.2018 AT FCI. HEADQUARTERS. NEW DELHI ON
CONSTRUCTION OF SILOS UNDER VGF & NON-VGF MODE.

At the outset, Chairman, HLC welcomed all the members of HLC and other
participants. Further, Chairman introduced Mr. B. Pradhan, AS&FA & A.K
Shrivastava, MD CWC to the HLC. Thereafter, agenda for the meeting was taken
up for deliberation & decision. The list of participants present in the 12th meeting
of HLC held on 18.07.18 is at Annexure-I.

Agenda Note No.1:

Construction of silos at 04 locations in Bihar under Non-VGF Mode.

It was informed that RFP for selection of silo operator at 9 locations was floated
on 07.12.2018. Technical bids were opened on 15.03.2018 and 16 offers were received
from 03 bidders. Due to single bid received in respect of 5 locations, it was decided to
cancel the bid in respect of these 5 locations in Bihar and to re-tender the tender for
these locations along with other locations. The same was noted by HLC in their 11th
meeting dated 18.04.2018.

Financial bids of 3 technically qualified bidders in respect of 4 locations

(Darbhanga, Muzaffarpur, Samastipur and Sitamarhi) were opened after the bid due
date of five locations and location-wise lowest rates (Ll rates) were also analyzed by
the project consultants. Comparison with rates applicable for conventional depots hired
through CWC has also been done and presented before HLC as part of Agenda. Further,
it was observed that in case of silos for three locations viz. Darbhanga, Sitamarhi &

Muzzafarpur, Ll rates (Base storage charges) and variable charges at 70% capacity
utilization are lower than the projected CWC rates of Rs. 1675.30 for FY 2021-22.
,
However. for Samastipur location, Ll rate (Rs.1766.00 per MTjYear) is higher than
projected CWC rate for FY 2021-22. HLC further noted the point made by project
Consultant that comparison of the two NPVs (Ll rates and projected CWC rate) over the
operating period of 30 years for all 4 locations show that Ll rates of DBFOO mode is
more beneficial for FCr. HLC was further informed that while projected increment in

~~~

Minutes of 12th HLC meeting held on 18.07.2018 Page 1 of 16

 case of CWC is around 8% but in case of FCI Non-VGF rentals, WPI/CPI escalation is
around 4% coupled with 2% annual reduction in Base unit rate of Fixed Storage
Charges. HLC also deliberated that re-tendering of Samastipur location may not
guarantee lower rates and also further delay of 6-9 months will add towards costs.

After detailed analysis, HLC approved the L1 rates for following four locations for
construction of 0.5 LMT each silo capacity with Railway siding under Non-VGF mode.

SI. L1 Rate (Per MTper year)

Locations Name of L1 Bidder
No (Base Storage Charges)
1 Darbhanga 1600.85
Adani Enterprises Limited
2 Samastipur 1766.00
3 Sitamarhi 1245.00 Unipro Techno Infrastructure
4 Muzaffarpur 1245.00 Private Limited

Agenda Note No.2:

Construction of Silos on Nomination basis by CONCOR

HLC was informed that pursuant to the decision taken in CoS & Secy. (Food)
review meeting for construction of silos, FCI has taken up with CONCOR for
construction of silos at the existing PFTs/MMLPs ete. CONCOR has shown interest in the
location at Vadodra. The location at Vadodra (Baroda) has already been tendered for
50,000 MT and the bid due date was 02.07.2018. Against the Baroda location 4 bids
have been received and the technical evaluation of bids is under process. CONCOR could
not participate in the said tender as some of the conditions of RFP like SPY, revenue
sharing ete. were not acceptable to them.

HLC deliberated the issues related to the request of CONCOR to allot the silo
project on nomination basis and also to decide upon fate of silo tender at Vadodra
location.

In this regard HLC was also informed that a representation dated 17.07.2018 has
been received from association of Silo Developer and Operator stating that Companies
parti$ipating in the tenders would have spent considerable time and money in
conducting the feasibility study and evaluating the project as such decision/step to
award on nomination basis will only discourage the interested companies.

HLC deliberated the issue and decided that the bid process for Vadodra (Baroda)
has been initiated and the same should be brought to logical end. HLC decided that the
matter may be placed before HLC again once the bid process is finalized.

\9'(y'~¥

Minutes of I Zt" HLC meeting held an 18.07.2018 Page 2 of 16

 -®
Agenda Note No.3:
Fulfilment of CPs for construction of silos at 25 locations under DBFOO
basis through PPP Mode.

HLC was informed that in its meeting dated 27.12.2017; HLC has accorded
extension of time period for satisfying Conditions Precedent to the concessionaires on
their request. It was further decided that there would be a cap on such extension and
extension be granted for a period not exceeding 180 days beyond existing provision of
280 days provided in the Concession and HLC also decided that for such additional
extension period, damages at prevailing rate of 0.2% of the Performance Security shall
be applicable for each day's delay as penalty.

HLC was apprised of the present status of fulfillment of Conditions Precedent as

categorised and indicated in Table - I, I1, III & IV of the Agenda Note. HLC deliberated
upon each of the criteria in Table -I, It III & IV and decided as under:

TABLE-I: Concessionaires who have submitted partial/no land documents but

not deposited penalty amount for extended 180 days beyond 280 days in terms of
the relaxation granted by HLCdated 27.12.2017.
Original Details of penalty
Permissible deposited beyond 280
date up to 280 days Land Status of Other Conditions
S.
Concessionaire Location days/ extended Parcel IPA from Precedent
No. Days (corresponding
180 days status Railway (CPs)Status
beyond 280 date) & BG 'amount
days (In lacs)
Claimed to
PSA Protech And
Rangapani, 22-12-2017/ have Not
I Infralogistics Pvt. Not paid Not submitted
WB 20-06-2018 acquired Submitted
Ltd.
6.5 acre
Claimed to
ALOMPCM Not paid
Dankuni, '22-12-2017/ have Not
2 Infrastructural & Not submitted
WB 20-06-2018 acquired Submitted
Logistics Pvt. Ltd.
8.06 acre
Legal opinion and
Macheda Logistics Macheda, 22-12-2017/ Not paid Not Not
3 representation &
India Pvt, Ltd. WB 20-06-2018 Submitted Submitted
warranties submitted

, HLC was informed that for Rangapani, Dankuni and Macheda, the bidder is same
'f
I.,
group (PCM Strescon Overseas Ventures Ltd & PCM Cement Concrete Private Limited)
and that this is the only successful bidder who has not deposited the penalty amount
for additional 180 days for any of its locations. Further, meetings had been called at the
level of ED to review progress of non VGF silos on 30.05.2018 and 06.06.2018. This was

Minutes a/12th HLC meeting held on 18.07.2018 Page 3 of 16

 , '

the only bidder-Concessionaire who had not acquired the land and did not attend these
meetings. He only attended the last review meeting held on 17.07.18.

The concessionaire vide letter dated 02.07.2018 & 05.07.2018 had requested for
extension of timeline for these 3 locations.

HLC enquired into the present status of land acquisition. HLC was informed that
at Rangapani and Dankuni, only part land has been acquired but, no land has been
acquired at Macheda. GM (West Bengal) confirmed that though partial land document
has been submitted for Rangapani and Dankuni locations but are not proper.

"LC was informed that although the Bidder-Concessionaire has sought

time on many separate occasions for deposition of penalty for additional 180 days
vide his lettersj'emall dated 17.03.2018,11.04.2018, 28.04.2018, 02.07.18 &
05.07.2018 whereby he sought time till 07.04.2018, 20.04.2018, 15.07.2018 &
15.07.2018 respectively for depositing the penalty, considering the fact that he
has not been able to meet his own commitment on last several occasions, his
likelihood of meeting his commitment for deposition of additional penalty for this
time also appears slim. Further, he is also the only original bidder who has not
been able to acquire complete land for even a single location for which he had
been awarded tenders. The "LCalso took note of the fact that even after being a
laggard in implementation, he was not even serious about attending review
meetings called by FCImanagement. Considering all the above facts, "LCwas of
the opinion that the bidder was either not serious about implementing the project
or did not have the competency for executing the three projects awarded to him.
Accordingly, "LC decided that in terms of the provisions of Concession
Agreement, the agreement should be terminated for Rangapani, Dankuni and
Macheda and these locations should be re-tendered.

Ti}'BLE-II:_Concessionaires who have not submitted any land documents but have
If
deposited part penalty amount for extended 180 days beyond 280 days in terms
ofthe relaxation granted by "LCdated 27.12.2017.

~~
~~\~
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Minutes a/12th HLC meeting held on 18.07.2018 Page 4 of 16
 @
Original Details of penalty
Permissible deposited beyond 280
date up to 280 days Land Status of Other Conditions
S.
Concessionaire Location daysl extended Parcel IPA from Precedent(CPs)
No. Days (corresponding
180 days status Railway Status
date) & BG amount
beyond 280
(In lacs)
days

CML Bettiah Bettiah, 15-11-20171 136 days(3 1-03-2018) Not Not

I ot Submitted
Private Limited Bihar 14-05-2018 & 62.56 submitted. submitted.

Financial close
NCML Deoria 10-11-20171 141 days (31.03.2018) Not under process and
2 Deoria, UP Submitted
Private Limited 09-05-2018 & 64.86 submitted. applicable permits
are pending.
Financial Close and
NCML Faizabad Faizabad, 10-11-20171 141 days (31.03.2018) Not Not
3 applicable permits
Private Limited UP 09-05-2018 & 64.86 submitted submitted
are yet to submit.

HLC was informed that for Bettiah. Deoria and Faizabad, the bidder is same
(NCMS Ltd.) and in addition to these three locations the bidder has submitted bids for
8 other locations where land has been acquired. Further for Faizabad location land has
been acquired now and for Deoria the concessionaire has informed that the aggregator
on his behalf has acquired part land. For Bettiah, the land has not been acquired yet. The
Concessionaire has deposited penalty amount for 136,141 and 141 days respectively for
these 3 locations against the additional 180 days.

The concessionaire vide letter dated 09.05.2018 had requested for extension of
time line for these 3 locations.

HLC deliberated the issue and considering that the part penalty has been
deposited and out of 11 locations land has been acquired at 9 locations, this
shows that the concessionaire is serious about implementation of Silo project,
HLCdecided the following:
(i) HLC decided to accord extension of time period for satisfying Conditions
Precedent to the concessionaires on their request. It was further decided
that there would be a cap on such extension and this second extension be
granted for a period not exceeding 180 days beyond the earlier extension
granted for 180 days in addition to existing provision of 280 days provided
" in the Concession Agreement (Initial 180 days and further 100 days with
I!.

imposition of damages).
(ii) HLC also decided that for such additional second extension period,
damages at prevailing rate of 0.2% of the Performance Security shall be
applicable for each day's delay as penalty. Concessionaire would be

..~~ required to deposit upfront additional Bank Guarantee equivalent to

~-~\~~
Minutes a/12th HLC meeting held an 18.07.2018 Page 5 of 16
 " .,

amount of penalty for the period of extension sought by concessionaire. It

was further decided that in the event the additional time taken for
satisfying Conditions Precedent results in delay in Commercial Operations
Date, there would be corresponding reduction in guarantee period
provided by [Link] while submitting their request to FCIfor
extension have to explicitly agree to these terms for extending time period
for satisfying Conditions Precedent. Further the request for second
extension along with bank Guarantee for damages will only be entertained
when the pending bank guarantee towards damages for first extension is
submitted.

TABLE-Ill : Concessionaires who have submitted land documents, deposited

full/partial penalty amount for extended 180 days beyond 280 days in terms of
the relaxation granted by HLCdated 27.12.2017, but other Conditions Precedent
have not been fulfilled within extended 180 days.

Original Details of penalty

Permissible deposited beyond
Other Conditions
date up to 280 280 davs Land Status of
S. Precedent
Concessionaire Location daysl extended Days Parcel IPA from
No. . (CPs)Status
180 days (correspondi ng status Railway
beyond 280 date) & BG amount
days (In lacs)
Financial close
Bihar Logistics Bhagalpur, 30-11-20171 182 days (31-5-2018) . under process and
I Submitted Submitted
Pvt. Ltd. Bihar 29-05-2018 & 83.72 applicable permits
are nending.
Gujrat Palanpur & Submitted.
30-11-20171 Applicable permits
2 Warehousing Siddhpur, Not Requested Under Submitted
29-05-2018 are pending.
Pvt, Ltd. Gujarat veri fication
Submitted.
NCML Batala Batala, 10-1 1-20171 I 18 days (8-3-2018) Applicable permits
3 Under Submitted
Pvt. Ltd. Punjab 09-05-2018 & 56.64 are pending.
verification

Submitted.
NCML Palwal Palwal, 10-11-20171 150 days (9-4-2018) Applicable permits
4 Under Submitted
Pvt. Ltd. Haryana 09-05-2018 & 72.00 are pending.
veri fication

Submitted. Financial close and

NCML Sonepat Sonepat, 20-11-20171 151 days (20-4-2018) Submitted
5
Pvt. Ltd. & 72.48
Under applicable permits
Haryana 19-05-2018
verification are pending.
r
6 ~!
»,
MRB Patiala Patiala, 22-12-20171 169 days (9-6-2018)
Submitted.
Not Applicable permits
Storage Pvt. Ltd. Punjab 20-06-2018 & 48.00 submitted. are pending.

NCML Submitted. Financial closure

Chhehreatta, 10-11-20171 158 days( 17-4-2018)
7 Chhehreatta Pvt. Under Submitted and applicable
Punjab 09-05-2018 & 75.84
Ltd. veri ficatio. permits are pending.

NCML Jalalabad Jalalabad, 20-11-20171 179 (18-5-2018) Not Applicable permits

8 Submitted
Pvt. Ltd. Punjab 19-05-2018 & 85.92 submitted are pending.

~~-~-----------------------------------------------
Minutes o/12th HLC meeting held on 18.07.2018 Page 6 of 16
, ',

Uttar Pradesh Submitted. Financial closure

30-11-20171 107 days (31-3-2018)
9 Logistics Pvt. Fatehpur, UP Under Submitted and applicable
29-05-2018 & 51.36
Ltd. Verification permits are pending.

Submitted.
NCML Basti Pvt. 10-11-20171 180 days (09-5-2018) Applicable permits
10 Basti, UP Under Submitted
Ltd. 09-05-2018 & 82.80 are pending.
Verification
Submitted. Financial closure
NCML Varanasi 10-11-20171 180 days (9-5-2018) Under under process and
11 Varansi, UP Submitted
Pvt. Ltd. 09-05-2018 & 82.80 verification applicable permits
are pending.

West Bengal Submitted.

30-1 1-20171 105 days (15-3-2018) Applicable permits
12 Logistics Pvt. Malda, WB Under Submitted
29-05-2018 & 48.30 are pending.
Ltd. verification

Not requested,
MBR Silos Pvt. Sangrur, 22-12-20171
13 penalty amount yet to Submitted. Submitted All CPs completed.
Ltd. Punjab 20-06-2018
be deposited.
for first 100 days - 33
days (23.12.2017)
& 15.84
NCML Bhattu Bhattu, 20-11-20171 Applicable permits
14 Submitted. Submitted
Pvt. Ltd. Haryana 19-05-2018 for extended 180 are pending.
days -93 days
(21.02.2018)
& 44.64

HLC was informed that 14 concessionaires in Table - III have acquired land but
has to deposit full penalty upto additional 180 days or for further period till fulfilment
of all Conditions Precedent.

"LC deliberated the issue and considering that the part/full penalty has
been deposited and land has been acquired, this shows that the concesslonaire is
serious about implementation of Silo project, "LCdecided the following:
(i) "LC decided to accord extension of time period for satisfying Conditions
Precedent to the concessionaires on their request. It was further decided
that there would be a cap on such extension and this second extension be
granted for a period not exceeding 180 days beyond the earlier extension
granted for 180 day~ in addition to existing provision of 280 days provided
in the Concession Agreement (Initial 180 days and further 100 days with
imposition of damages).
(ii) "LC also decided that for such additional second extension period,
damages at prevailing rate of 0.2% of the Performance Security shall be
I..
applicable for each day's delay as penalty. Concessionaire would be
required to deposit upfront additional Bank Guarantee equivalent to
amount of penalty for the period of extension sought by concessionaire. It
was further decided that in the event the additional time taken for
satisfying Conditions Precedent results in delay in Commencement of

~~~-~~-------------------------------------
Minutes of 12th HLC meeting held on 18.07.2018 Page 7 of 16
 Operations Date, there would be corresponding reduction in guarantee
period provided by [Link] while submitting their request to
FCIfor extension have to explicitly agree to these terms for extending time
period for satisfying Conditions Precedent. Further the request for second
extension along with bank Guarantee for damages will only be entertained
when the pending bank guarantee towards damages for first extension is
submitted.

TABLE-IV:Concessionaires who have submitted land documents and fulfilled all

Conditions Precedent within stipulated time of 280 days or extended 180 days
beyond 280 days in terms ofthe relaxation granted by "LC dated 27.12.2017.

Original Details of penalty

Permissible deposited beyond Other
date up to 280 280 days Status of Conditions
S. Land Parcel
Concessionaire Location days/ extended Days IPA from
No. status Precedent
180 days (correspondi ng Railway
(CPs) Status
beyond 280 date) & BC
days amount (In lacs)

Jind Agri Services Jind, 07-12-2017/ 56 days (1.2.2018) All CPs

I Completed. Completed.
Pvt. Ltd. Haryana 05-06-2018 & 26.88 completed.

Adani Agri Logistics All CPs

2 Kannauj, UP 16-11-2017 CP Completed. Completed. Completed.
(Kannauj) Ltd. completed.
VRC Silos Private Barnala, All CPs
3 23-11-2017 CP Completed. Completed. Completed.
Limited Punjab completed.
Adani Agri Logistics Panipat, All CPs
4 16-11-2017 CP Completed Completed. Completed.
(Panipat) Ltd. Haryana completed.
Total Agri Services Ahmedabad, 07-12-2017/ 184 (09.06.2018) All CPs
5 Completed. Completed.
Ahmedabad Pvt. Ltd. Gujarat 05-06-2018 & 84.64 completed.

HLC was informed that for 5 locations in Table - IV letter of commencement has
been issued. HLC noted the same.

HLC was informed that FCI has also received representations from various
concessionaires who have not fulfilled Conditions Precedent including acquisition of
land parcel requesting not to encash the penalty BGs so deposited till achievement of
COD of the respective locations as it shall negatively impact the debt financing of the
Sprs as the new SPVs don't have sufficient equity to make immediate cash payments.
I,.

"LC deliberated that objective of the Govt. is to get the Silos completed and
put to use at the earliest. If the concessionaires face financial issues, it may result
in delay in implementation and operation of Silos. "LC decided that for the period
of delay in achieving Conditions Precedent as per Clause 4.1.2 beyond the original

~~-M-i-n-u-te-s-O-1-1-2-th-H-L-c-m--ee-t-in-g-h-e-I-d-O-n-l-B-.O-7-.2-0-1-B-----------------------------P-a-ge--S-o-f-16-
 180+100=280 days and within & upto additional 360 days, an amount equal to
0.2% of Performance Security for each day's delay until the fulfilment of all
Conditions Precedent as per Clause 4.2.1 of Concession Agreement has to be
deposited upfront along-with the extension request. Further, if concessionaire
does not wish to pay the penalty amount immediately, he may submit a Bank
Guarantee of equal amount as penalty (till date of fulfilling CPs) and additionally,
the concessionaire would have to pay interest @ 9.27 % (FCIaverage annualized
borrowing rate of FY2017-18). A BGequivalent to this amount would have to be
submitted upfront by the Concessionaires with a validity of 3 years from date of
issue of Letter of Commencement (LOC).This relaxation may only be granted at
the specific written request of the Concessionaire. Concessionaire should also
submit an undertaking in proper legal format in this regard.

Agenda Note No. 4:

Cancellation of Silo Capacities at [aunpur and Mirzapur in Uttar Pradesh.

HLC was informed that while reviewing the silos it was found that ratio is
skewed heavily in favour of consuming regions and this would lead to a situation where
sufficient stocks are not available in the procuring Regions Railway siding silos to feed
the consuming Region silos through specialised bulk movement wagons. To review the
matter, a committee of Executive Directors was constituted to decide upon the issuance
of LOA for 08 locations (4.5 LMT) under Non-VGF and 02 locations under VGF (01 LMT)
as all these capacities were under consuming areas. The said committee examined the
above issue and recommended to issue LOA for 6 locations under Non-VGF mode i.e.
Agra, Lucknow, Gorakhpur, Amreli, Surat & Dahod and 2 locations under VGF mode i.e.
Dhamora & Borivali. In case of Jaunpur & Mirzapur locations, it was recommended to
scrap the tender.

t HLC deliberated the matter and approved the recommendation of the FCI
il
Executive Directors committee to scrap the tender for [aunpur & Mirzapur locations.
HLC also approved that [aunpur & Mirzapur may be cancelled from the list of Silo
locations.

~,>4~'
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Minutes of LZ'" HLC meeting held an 18.07.2018 Page 9 of 16
 ,"

Agenda Note No. 5:

Construction of silos in Haryana by State Govt.

EO (Silos) presented the status of construction of silos in the State of Haryana. It

was informed that capacity of 4.5 LMT has been approved by HLC for construction of
silos with Railways siding at 07 silo locations way back in its meeting dated 30.05.17 &
17.11.17, however, tender for the same is yet to be floated by the State Govt. State Govt.
representative informed that Consultant is likely to be appointed shortly for the
purpose and tender would be floated within 1-2 months. HLC noted it and requested
Haryana State to expedite tendering process as it is on top priority of Gol and is being
reviewed at the level of CoSjPMO.

Further, HLC was informed that SLC has recommended three locations viz. Hansi,
Uchana & Kurukshetra based on storage gap assessment, however, other two locations
proposed by State Govt. i.e. Rewari & Tohana was not recommended by SLC in the light
of erratic & insufficient procurement.

State Govt. representative further informed that construction of silos at Hansi

location earlier proposed under VGF mode is not possible due to insufficient Iength of
the land parcel available with State Govt. It was requested to change mode of
construction at Hansi location into Non-VGF mode.

EO (North) further informed that at Uchana & Hansi, guarantee of PEG god owns
under possession of FCI would lapse by 2021, thus creating sufficient storage gap at
these centres. State Govt. representative further requested to allocate more capacity at
various locations viz. Kurukshetra, Karnal, [agadhari, Shahabad etc. where sufficient
storage gap exists. State Govt. representative requested that there exists storage gap of
more than 1.0 LMT at Kurukshetra and silo of 1.0 LMT capacity may be considered
instead of 0.5 LMT approved by SLC. EO (North) & GM, Haryana also confirmed that
storage gap of 01 LMT exists at Kurukshetra. Considering the requirement stated by
'f
I'
State 'Govt. and FCI EOjGM, it was decided that 1.0 LMT silo may be approved for
Kurukshetra location instead of 0.5 LMT.

HLC deliberated the issue in depth and approved construction of silos with
Railway siding by State Govt. of Haryana at following locations:-

~/~-----------------------------------
~'L~nutes a/12th HLC meeting held an 18.07.2018 Page 10 of 16
 [Link]. Location Capacity in LMT Mode
1 Uchana 0.5 VGF at their own land*
2 Hansi 0.5 Non-VGF
3 Kurukshetra 1.00 Non-VGF
Total 2.00
"ln case the land is found suitable after detailed feasibility, else State Govt. may call tenders under
Non-VGF mode.

Further, HLC advised State Govt. of Haryana to send. the proposal for
construction of silos at other locations of Iagadhri, Karnal etc. through SLC, keeping in
view wheat procurement, storage gap, no. of mandies etc.

Agenda Note No. 6:

Construction of silos in Uttar Pradesh by the State Govt.

HLC took note of the recommendations of SLC at 04 locations (2 LMT) out of 8

locations proposed by State Govt.

HLC deliberated each location threadbare. In case of Hamirpur location, it was

informed by Principal Secretary (Food) that the capacity of 20,000 MT hired at SWC
Chinamandi is temporary and hired on need basis only. Further, it was informed that
production of wheat in Hamirpur district is around 4 LMT against which only 0.65 LMT
has been procured this year due to space crunch. Also, it was informed that in the State
of UP, silo construction is necessary in view of increasing trend of wheat/rice
procurement.

In case of Rampur district, it was informed that upcoming capacity of 0.5 LMT at
Dhamora under VGF mode w~s omitted by SLC. Dhamora is located at corner of Rampur
Revenue District and is insufficient to cater the need of Rampur District given the high
procurement in Bilaspur belt. In Pilibhit & Lalitpur districts, sufficient storage gap
exists.
,
:'1 HLC approved construction of silos of 0.5 LMT each at Hamirpur, Pilibhit &
Lalitpur locations by State Govt. of UP under Non-VGF mode with Railways siding.
Further, HLC advised State Govt./SLC to re-examine the storage gap assessment at
Rampur & other locations.

-e:
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Minutes of LZt» HLC meeting held an 18.07.2018 Page 11 of 16
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Agenda Note No. 7:

Construction of silos in West Bengal under Non-VGF mode by FCI.

HLC took note of the recommendations of SLC at 06 locations (3 LMT) based on

12 months requirement of wheat.

HLC was informed that West Bengal being a DCP state in case of rice, procures &
stores rice in their own godowns without involvement of FCI. However, for wheat, FCI
makes movement ex-north and stores in FCI godowns. Storage Division informed that
based on 04 months requirement as per PEG norms for DCP consuming states, there is
no storage gap at any of locations proposed except Murshidabad.

HLC deliberated the issue of 12 months/a months requirement and decided to

adhere to Ministry guidelines issued vide letter dated 18.02.2016 which provides
"calculation of storage gap for proposed silos based on 12 months figures of
procurement/offtake". A number of proposed sites also are at strategic/border location.
Accordingly, HLC approved construction of silos under Non-VGF mode with Railway
siding at following locations to be constructed by FCI:-

S. No. Location Capacity

1. Durgapur 50,000 MT
2. Murshidabad 50,000 MT
3. Birbhum 50,000 MT
4. Balurghat 50,000 MT
5. West Midnapur 50,000 MT
6. Alipurduar 50,000 MT

Further, HLC advised SLC/State Govt. to re-examine the rice silo proposal at
Jhargram based on storage gap assessment and submit their recommendations through
SLC.

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Agenda Note No.8:

Amendment in Article-16 of the Concession Agreement for use of railway
siding for Additional Commercial Activity.

EO(Silos) presented the background of difficulty in participation under Non-VGF

mode by existing PFT Operators. HLC was informed that in the review meeting taken by
Committee of Secretaries & Secretary (Food), emphasis was given to consider
construction of silos at existing Freight Terminals of Railways, CONCOR and operated by
Private Operators as procurement of suitable land with adequate length of 1.5 km for
Railway siding is time consuming exercise. Since, Railway siding facility is already
functional in the PFTs operated by Railways, CONCOR, other Agencies & Private
Operators, it will need less time to construct and commission silos at these locations.
HLC also deliberated that it may be difficult to enter into tripartite agreement and
define commercial terms of agreement with PFT Operators as a transparent price
discovery would not be possible, However, given the requirement of Article 16.1.5 of
sharing 5% of gross revenue with Authority (FC!) in case of other commercial activities,
existing PFT jPvt. Siding operators cannot participate under Non-VGF mode. MD, CWC
informed that there are more than 300 PFT jPvt. Siding locations across the country
who may participate in the tender process for silo construction if Revenue Sharing
clause is made non-applicable.

HLC deliberated the issue in detail and in view of facilitating the participation by

existing Private Freight Terminals, Multi Model Logistic Parks, Inland Container Depots,
Domestic Container Depots, Private siding Operators and generation of more
competition in the forthcoming tender process approved amendment in Article 16 of
Concession Agreement under Non-VGF mode by inserting a new Clause 16.1.7 as
detailed below:-
"16.1.7: Notwithstanding above, provision of revenue sharing i.e. clause 16.1.5 will
not be applicable on existing Private Freight Terminals (PFTsj/ Multi Modal
Loqistics Parks (MMLPsj/ Inland Container Depots (ICDsj/ Domestic Container
Depots (DCDsj/ Private siding operators who offer exclusive silo complex to FCI
within their existing premises. PFTs/MMLPs/ICDs/DCDs & Private Siding Operators
would have to ensure that their existing & future commercial activities do not
adversely impact FCI silo operations & that all other terms & conditions of the
Concession Agreement are abided by them."

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Agenda Note No. 9:

Construction of silos in Punjab Region

ED(Silos) presented the background of construction of silos in Punjab Region

along-with other related issues. HLC deliberated the issues as per Agenda Note items
mentioned below:

(i) Construction of silos at PFT locations:

HLC took note of the recommendations of SLC that out of five PFT
locations available in the State of Punjab, only one location i.e. Chawapail has
been found suitable for construction of silos as sufficient storage gap exists at the
Railhead. HLC also deliberated that it may be difficult to enter into tripartite
agreement and define commercial terms of agreement with PFT Operators as it
will be like in nomination basis. Further, HLC was informed that in order to
facilitate participation of Private PFT Operators, enabling amendments in Article
16 of Non-VGF Concession Agreement on use of Railway siding for additional
commercial activity is being modified to the extent that Clause 16.1.5 will not be
applicable on existing PFTs.
HLC approved to include Chawapaillocation for construction of silos with
Railway siding under NON-VGF mode in the forthcoming tender where Private
PFT Operator may also participate under relaxed condition.

(ii) Construction of silos at 28 locations as per the list submitted by Punjab

Govt.:
HLC took note of the deliberation & recommendations of SLC that only
one location i.e Fazilka was found suitable out of the list submitted by the State
Govt. Principal Secretary (Food) informed that State Govt. will arrange suitable
land parcel for Faridkot location where 10.3 Acre land is already available in the
vicinity of Railway line. HLC was also informed that while prima-facie there
l' appeared to be suitable land available at Fazilka & Faridkot (subject to
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arrangement of additional land by the State Govt.), detailed feasibility by Railway
Consultant wouldhave to be carried out by the State Govt.

HLC noted the submission of the State Govt. and approved construction of
0.5 LMT silos each with Railway siding at Faridkot & Fazilka under VGF mode to

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be constructed by State Govt. at their own land against the storage gap, provided
the land is found suitable after detailed feasibility study.
(iii) Construction of 29.3 LMT silo capacity in Punjab:

HLC took note of the deliberation & recommendations of SLC with regard
to Railhead-wise storage gap assessment made across the Districts of Punjab.
HLC approved the construction of silo with Railway siding under Non-VGF
mode(except Faridkot & Fazilka locations which would be under VGF'mode) to
be constructed by FCI & State Govt. at locations mentioned below:

SI. Name of Railhead Area where storage

Capacity
gap exists Nodal Agency
No. (in LMT)
(Revenue district)
1. Rampuraphul (Bhatinda) 1.00 FCI
2. Goniana (Bhatinda) 1.00
3. Maur (Bhatinda) 1.00 State Govt.
4. Mansa (Mansa) 1.00
5. Budhlada (Mansa) 1.00 FCI
6. Faridkot (Faridkot)* 1.00 State Govt."
7. Kotkapura (Faridkot) 1.00 FCI
8. Muktsar (Muktsar) 2.00 State Govt.
9. Malout (Muktsar) 1.00 FCI
10. Gidderbaha (Muktsar) 1.00 FCI
11. Ferozepur (Ferozepur) 1.00 State Govt.
12. Makhu (Ferozepur) 1.00 FCI
13. Abohar (Fazilka) 0.50 FCI
14. Fazilka (Fazilka)* 0.50 State Govt.*
15. Tanda .(Hoshiarpur) 0.50 'FCI
16. Jagraon (Ludhiana) 1.00 FCI
17. Chawapail (Ludhiana) 0.50 State Govt.
18. Ajitwal (Moga) 1.50 State Govt.
19. Patiala (Patiala) 2.00 FCI
i,
I,. 20. [akhal (Moonak Patiala) 1.00 State Govt.
21. Tapa (Barnala) 0.50 FCI
Total Capacity approved:-
FCI=10.50 LMT; 11 locations & State Govt-l0.50 LMT; 10 locations = 21 LMT

Minutes of l.Z» HLC meeting held an 18.07.2018 Page 15 of 16

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"ln case the land is found suitable after detailed feasibility study, silos with Railway
siding at Fazilka & Faridkot locations would be constructed under VGF mode by State
Govt, else State Govt. may call tenders under Non- VGFmode.

(iv) 17 LMT road-fed silo capacity to be constructed by State Govt. of

PunjabjPUNGRAIN.

HLC took note of recommendations of SLC not to consider construction of

road-fed silos awarded by PUNGRAIN at 31 locations in the State of Punjab as all
the locations have been finalized without Railway siding which is contradictory
to the guidelines issued by Mo CA,F&PD.

Principal Secretary (Food), Punjab made a reference of letter dated

14.01.2016 from Ministry of Food regarding road-fed silos to be constructed in
Producing States and requested for consideration of those road-fed silos which
are already constructed and being used and those sites which are ready for
construction. To this it was also brought to the notice of HLC that PUNGRAIN has
issued termination notices to the Concessionaires for not fulfilling the mandatory
commitments from their side. As such the Govt. of PunjabjPUNGRAIN should
come out with clear proposal of those road-fed silos which are to be considered
by SLCjHLC.

HLC noted the submission of State Govt. and advised to send their
proposal through SLC in respect of those locations only which has already been
constructed and put to use by the State Govt.

(v) Construction of silo at Bhagtanwala location by CWC:

HLC approved the recommendations of SLC not to consider construction of silo

at CWC, Bhagtanwala in light of non-existence of storage gap at the centre.

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Page 16 of 16,."
 Annexure-I

List of Participants Present in the 12th Meeting of High Level

Committee (HLC) in respect of Construction of Silos on 18.07.2018

SI. No. Name ( S/Shri) Designation Department

1. Yogendra Tripathi C&MD FCI

D/o F&PD/Mo Agri,
2. B. Pradhan AS&FA
Coop.&FW
3. R.K. Khandelwal J.S. (P&FCI) D/o F&PD

4. S. Abbasi ED (SILO) FCI

5. Arun Kr. Shrivastava MD (CWC) CWC

6. Sanjay Garg ED(S&C) FCI

7. B.S. Mohapatra ED (F) FCl

8. R.P. Singh ED (Proc.) FCI

9. Mudit Chandra Director (F&M) Railway Board

IN PRESENCE OF
1. K.A.P. Sinha, Principal Secretary, D/o F&PD, Punjab

2. Nivedita Shukla Verma, Principal Secretary, D/o F&PD, UP

3. Veena Kumari, ED (North), Zonal Office, Noida

4. [Link], ED (West), Zonal Office, Mumbai

5. Arshdeep Singh Thind, GM (Region), FCI, RO, Punjab

6. Om Prakash, GM (Region), FCI, RO, Haryana

7. Alok Singh, M.D., UPSWC, UP

8. Ashok Kumar Singh, Add. Commissioner, D/o F&PD, UP

9. Sanjeev Verma, Director, D/o F&PD, Haryana

1 o.
I..l Jaipal Singh, Joint Director, D/o F&PD, Haryana

11. Kumar Digvijay, Joint Labour Commissioner, RC Office, Bihar

12. . Girish Kumar, GM (Stg), FCI, Zonal Office (North)

13. J~S. Syju, General Manager (S&C), FCI, Zonal Office (East)

14. Rajesh Chaudhary, GM (Region), FCI, RO, West Bengal

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15. Aseem Chhabra, GM (Region), FCI, RO, Gujarat,

16. D.P. Shukla, GM (Region); FCI, RO, Uttar Pradesh.

17. Rajat Sharma, GM(Silo), FCI, Hqrs, New Delhi

18. Rajeev Mishra, DGM(Silos), FCI, Hqrs, New Delhi

19. Virendra Kumar Bharti, DGM, FCI, RO, Patna.

20. R.N. Bhargava, Advisor (Silo), FCI, HQRS, New Delhi.

21. Manoj Kumar, M (A/B), HSWC, Haryana

22. S.S. Randhawa, DM (B), HSWC, Haryana

23. Aditya Kumar Singh, Manager(Silo), FCI, RO, Uttar Pradesh

24. Amardeep Singh, Manager (Stg), FCI, ZO (North), Noida

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