Announcement of IDA Assists India to Expand Food Grain Storage Capacity Two Hundred Sixteen Million Dollars Project will Reduce Food Grain Losses on November 17, 1977

eWorldBank ·1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/17 NOVEMBER 17, 1977 IDA ASSISTS INDIA TO EXPAND FOODGRAIN STORAGE CAPACITY $216 Million Project Will Reduce Foodgrain Losses India will implement a $216 mil lion project designed to increase the country's foodgrain storage capacity and to improve grain distribution with the assistance of a credit of $107 mill ion from the International Dev- elopment Association (IDA), an affiliate of the World Bank. The project includes the construction of about 3.5 mil lion tons of additional grain storage capacity in 16 states in India, provision of six rural grain procurement centers, training of management staff and tech- nical assistance. It is scheduled to be completed in 1981. The project is the second operation for IDA in support of India's efforts to build ad- ditional storage capacity. In 1971, IDA joined Sweden in providing $10 mi 1- 1 ion to India to construct modern foodgrain storage facilities. • The project will enable India to store, handle and transport foodgrains more efficiently. India suffers substantial foodgrain losses due to inadequate storage facilities and the need for more efficient handling and transport. Estimates are that the project will help reduce storage losses by 180,000 tons of wheat and rice per year valued at $23 million. At full development, savings from the reduction in operating costs and grain storage losses will range from $54 mill ion to $60 mil lion a year. The IDA credit to the Government of India is for a term of 50 years including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% to meet 1DA 1 s administrative costs. The bulk of the credit would be re-lent to the FCI for repayment over 20 years, including four years' grace, at l0.5% interest, with 0.25% interest rebate for timely payment. - 0 - NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: COUNTRY: TOTAL COST: Foodgrain Storage India $2 16 mi 11 i on • IDA FINANCING: $107 mill ion credit, standard IDA terms OTHER FINANCING: Government of India IMPLEMENTING ORGANIZATION: Food Corporation of India 16-20 Barakhamba Lane New Delhi - 110001 India PROJECT DESCRIPTION: The project includes: (a) construction of 3.5 mi 11 ion tons of foodgrain storage and 75,000 tons of port silos; (b) pro- vision of ancillary facilities for grain handling and trans- port; (c) training of management and key technical staff; and (d) technical assistance, including engineering consultants, and operations research studies. • PROCUREMENT: All civil works contracts for bulk storage facilities ($24.S million) and the two port silos ($8.1 million) will be awarded on the basis of international competitive bidding. Civil works contracts for conventional storage facilities ($75.5 mill ion) will be on the basis of local competitive bidding. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 20% 1981. • - 0 -