Adani and Fci Agreement

In February 2013, FCI signed another agreement in which it agreed to pay the company a rent of Rs 1,842 per tonne per year for wheat storage. In September 2014, it was increased to Rs 2,033.40 per tonne per year. According to a Financial Express report published on 18 October 2008, FCI entered into a 20-year construction, ownership and operation (BOO) agreement with Adani Agri for the establishment of silos in Moga and Kaithal in 2005. According to details, Adani Agri Logistics Limited signed an agreement with FCI on June 28, 2005, according to which 80% of the wheat stock will be delivered in bulk and 20% in bags in the company`s silo in Dagru village in Moga district, which has a total storage capacity of 2 lakh metric tons. “We hope that the project will pay for itself in the next 5-6 years,” Atul Chaturvedi, CEO of Adani Enterprises, told FE. Under the twenty-year agreement with the FCI, the state supply group would pay a rent of Rs 2,000 per quintal per year for the purchase, storage and transport of wheat for delivery to various centres. The Kaithal silos, which cover 32 hectares, bought more than 1.5 lakh tons of wheat during the rabies season. As an incentive, farmers who imported agricultural products received Rs 19.70 per quintal, in addition to the minimum support price (MSP) of Rs 1,000 per quintal. Adani Agri Logistics Limited (AALL) has signed an exclusive service agreement with the Food Corporation of India.

The project was implemented at a total cost of almost 700 crore rupees. A senior FCI official confirmed this to The Tribune, claiming that FCI had spent an additional sum of Rs 3.72 crore on the purchase of Gunny Bags against the terms of the agreement signed between FCI and Adani Agri Logistics Limited during those years. These pistol bags were not needed if the wheat had been transported to the silo in bulk without filling it in shooting bags, the official added. The report claims that the agreement was reached on the basis of a “guaranteed tonnage”, meaning that FCI will have to pay the rent for all two wheat LMTs, regardless of the amount of wheat actually stored. The ministry`s sources said: “For example, for the year 2016-17, out of the total CoC of Rs.231/MT, the amount against interest is Rs. 163.73/MT and RS.67.60/MT for storage costs. The cost of transporting food grains from SGA godowns to the silo was taken by the ACG at Rs.163/MT for 2016-17. According to the ministry, the CAE also did not take into account the purchase of wheat in large quantities from farmers in the silos, which saves the cost of Mandi`s operations.

According to a study conducted by RITES, there is a saving of Rs. 945/MT when wheat is purchased in bulk from Silo compared to buying from Mandi. This alone has saved Rs 20 crore over the past eight years. . MOGA: A multi-crore scam related to the purchase of bags of firearms and the transport of wheat from grain markets to silos (steel warehouses) by local authorities of the Food Corporation of India (FCI) over the past five years has been revealed in Moga District. Senior officials reiterated that optimal use of storage space does not mean that the entire capacity remains at 100% of its capacity. They stated that the CAE had admitted that the elevators were at 100% capacity during the April-June period, which is the wheat supply period. Given that wheat supply takes only two months and shipment is done on a monthly basis, capacity utilization will continue to decline until the next supply season, as some of the capacity will be freed up as inventories run out, the head of allegations of reduced storage at Adani`s silos said. Paytm has ruined the market for other listings: Ashneer Grover from BharatPe So it is clear that Adani Agri Logistics in India has been around since 2007 and is not a new development.

However, the CoC consists of two components, namely interest and storage costs. The FCI releases the payment to the LMS at the time of the acquisition of the shares, and it also pays interest to the LMS which is 1% higher in CoC than the rate at which the funds are available to FCI, but compensates for the main component of the CoC. According to the official website of Adani Agri Logistics, the company has been operating in India since 2007 in cooperation with the Food Corporation of India (FCI). The company operates silos in Moga in Punjab and Kaithal in Haryana to store grain. Clock: Prime Minister Modi inaugurates rs 9,800 crore Saryu Canal project in up Topics Adani Group | Food Corporation of India | Farmers` protests In its response to the Union government, the CAE again stated that although the guaranteed tonnage was reduced, the storage capacity of the silo was two lakh tons. Therefore, the Department`s argument is irrelevant and the paragraph will continue. Watch: Defence Minister Rajnath Singh arrives at Brar Square Fully automated operation ensures fast service, transparent and accurate transactions at all stages and prompt payment to farmers. However, an internal review found that over the past five years, between 2012 and 2017, FCI accepted bulk wheat in the range of 16% to 74% versus 80% prescribed, resulting in heavy losses for the central food supply agency. The main feature of the project is that all the handling of food grains, from reception in the basic depots, cleaning and drying as well as storage and transport to the depots in the field, is carried out in loose form, thus minimizing losses. These units are notified to the FCI supply centres where farmers deliver their products directly in batches.

It is estimated that some of the major private food warehouses have recorded an average direct reception from farmers of about 80,000 tons per year since their inception over the past five years. “However, FCI had reduced the guaranteed annual tonnage for the Kaithal silo to 1.90 LMT in 2013-14, 1.41 LMT in 2014-15 and 1.33 LMT in 2015-16. This effectively avoided an additional payment for the free zones,” the ministry said. The Department stated that, contrary to the CAE report, the rent for all 2 LMTs in the elevators was not paid because the guaranteed tonnage was reduced. Adani Group said it has been developing and operating grain silos for FCI since 2005. It sets up a storage infrastructure after receiving a competitive and transparent tender from the Indian government. .