Punjab Government and National Bank for Agriculture and Rural Development (NABARD) on Friday signed a memorandum of understanding (MoU) to construct 10 silos, at different locations in Punjab.
These would be equipped with highly mechanised infrastructure vertical steel silos with a storing capacity of more than five lakh tonnes of food grains. The silos would be constructed in consultation with the NABCONS, a NABARD consultancy service, and would be basically for the safe open bulk storage of grains.
The MoU was signed between PUNGRAIN managing director SS Johal on behalf of the Punjab Government and NABARD Chief General Manager Naresh Gupta in the presence of Punjab Food Minister Adaish Pratap Singh Kairon.
The total cost of the project is `1,681 crore which would be constructed in phases. For the construction in the first phase which would be started from Saturday, an amount of `210 crore has been sanctioned.
The different locations for setting up of the silos have been identified by the Food department.
Talking to the NABARD team, the Minister said that the construction of silos would be in a day or two and the entire construction work would be executed within 10 months by March 15, 2016.
He recalled that in 2011, the Punjab Food department initiated the construction of silos with World Bank assistance and was awarded by the International Finance Corporation, a World Bank organisation for the best Project.