Plans are afoot in the Union Government to attract Rs. 5,000 crore investments from private players to build an additional storage infrastructure with a capacity of about 12.6 million metric tons in the current financial year. In this connection, tenders will be issued very shortly by the Food Corporation of India, (FCI), said official sources.

As per the original plans, the private companies will be allowed to construct infrastructure including warehouses and silos in states like Punjab, Haryana and Himachal Pradesh with five years guarantee for their usage. The government would use the storage facilities for five years after the construction is completed as the move would help the private sector contractors an assured business for a particular period and encourage them to build and maintain warehousing structure, which has a great business potential in the country.

Sources added that the plan has come at a time when prices of food grains are skyrocketing largely due to its shortage, but on the other hand a large quantity of food grain procured by the Centre is lying in the open and rotting because of a space shortage. As per the available statistics over 14 metric tons of wheat procured in 2008-09 has not yet found a shelter and is lying in the open and rotting in many states including Punjab and Haryana.