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Adani Agri Logistics Ltd (AALL), a wholly-owned subsidiary of Adani Logistics Ltd, has received a Letter of Award (LoA) from the Food Corporation of India (FCI), following competitive bidding, to build silo complexes at various locations across the country.

Based on the LoA, AALL will develop and operate state-of-the-art silo complexes at four locations -- Kanpur, Gonda and Sandila in Uttar Pradesh and Katihar in Bihar, in line with the government of India's objective of modernising India's storage infrastructure, creating a total silo storage capacity of 3.5 lakh MT.

Silo complexes, which are mechanised and automated units equipped with temperature and humidity controls, are built to handle, store and preserve food grains.

The handling process, from procurement to transportation, is in bulk form catered through containerised movement. AALL's project will benefit farmers across the states of Uttar Pradesh and Bihar besides supporting general consumers and PDS (Public Distribution System) beneficiaries.

Currently, farmers are forced to deal with a waiting period of two to three days while their agricultural produce makes its way through the traditional farm-to-mandi procurement chain.

With the implementation of this project, the processing time will be cut down to merely one to two hours. This will significantly improve procurement efficiency. Additionally, this project will benefit general consumers and beneficiaries of the PDS (Public Distribution System), besides generating substantial savings on labour costs, gunny bags and transportation.

The project, to be executed under the Design, Build, Finance, Operate and Transfer (DBFOT) mode, will include Hub Silo Complexes, which are silo complexes with container depots, and Spoke Silo Complexes, which are silo complexes without container depots.

With the addition of 3.50 lakh MT storage capacity, AALL will now have a total of 15.25 lakh MT of silo storage capacity across 24 locations in India.