Financial Bid for FCI Silo Tender
Welcome to KIP! Today, we discuss the FCI tenders for warehousing projects across seven states in India.
FCI – Silo Tender
54 Location, 17 Projects, 7 States.
Last date for submitting tender is 23rd December 2024.
Dear Warehouse Businessman,
Are you willing to participate in FCI – SILO Tender but still confused about Net Worth Eligibility criteria and Financial Feasibility of Tender?
Want to know how to fix the financial bid.
Want to know about revenue Model for FCI – Silo.
Then the information shared herewith is going to become more beneficial for you.
1. Brief about Tender:
FCI (Food Corporation of India) has invited Tender for Silo Warehouse for HUB and Spoke Model Under Design, Build, Finance, Operate and Own (DBFOO) model.
To know more about location, Click here.
2. Financial Eligibility:
Minimum Net-worth required 25% of Total Project Cost.
Example: Let’s say Project -7 for revenue district Bhatinda of Punjab.
| Location | Estimated Project Cost | Net-Worth required |
|---|---|---|
| Project -7 for revenue district Bhatinda | Rs. 215.34 Cr | Rs. 53.835 Cr. |
Net Worth Means For Company:
(Subscribed and paid-up equity share capital + Reserves – Revaluation Reserves – Miscellaneous expenditure not written off – Reserves not available for distribution to equity shareholders).
For Other than Companies:
Net Worth means = Assets – liabilities (Calculated as per applicable accounting standards)
Note: Net worth must be certified by Statutory Auditor/CA
3. Who Can Apply:
Bidders may be individual or a Company or a Group of Members (Consortium) as per the need for met out Net Worth Criteria.
IF bidders constitute a consortium, then Net worth shall be considered to those members who have sharing more then 26%.
| Type of Applicant | Name of Members | Project Cost | Share | Net Worth | Consider in Total Net Worth |
|---|---|---|---|---|---|
| Individual Entity | A | Rs. 215.34 Cr | 100% | 55 Crore | Yes |
| Consortium | XYZ A | Rs. 215.34 Cr | 26% | 15 Crore | Yes |
| Consortium | XYZ B | Rs. 215.34 Cr | 20% | 10 Crore | No (Since less than 26%) |
| Consortium | XYZ C | Rs. 215.34 Cr | 28% | 20 Crore | Yes |
| Consortium | XYZ D | Rs. 215.34 Cr | 26% | 20 Crore | Yes |
In the above example, you can see that net worth of Member XYZ B has not considered because he has shareholding @ 20% i.e less then 26%
4. One SPV for Each Project:
The entire set of locations as a Project and the Selected Bidder shall have to form a single SPV for the Project.
Example:
Project 7 having revenue district Bhatinda has 4 locations i.e. (i) Bhatinda (ii) Bhuchu (iii) Maur (iv) Goniana
Bunch of 4 locations will be treated as one project and awarded candidate can form one SPV (Special Purpose Vehicle) for all four locations.
SPV shall be constituted as a Private Limited Company that need to be incorporated after letter of Award of Contract.
5. Identification of Site:
Bidder need not to have required land before submission the tender. They need to identified the site at least 80% of required sites within 270 days from the date of signing of the Concession Agreement.
This period may be extended with the following conditions:
- Submission of Performance Security within 30 days of signing of Concession Agreement
- Affidavit of Identification of the Site 60% within 240 days of signing of Concession Agreement
- If applicable, for Hub Silo Complex, achievement of in-principal approval from Railways within 240 days.
6. Land Required:
| Capacity | For Spoke | For HUB |
|---|---|---|
| 25,000 MT | 4 Acre | 15 Acre |
| 37,500 MT | 6 Acre | 17 Acre |
| 50,000 MT | 7 Acre | 18 Acre |
| 62,500 MT | 8 Acre | 19 Acre |
| 75,000 MT | 9 Acre | 20 Acre |
| 1,00,000 MT | 11 Acre | 22 Acre |
| 1,25,000 MT | 13 Acre | 24 Acre |
| 1,50,000 MT | 15 Acre | 26 Acre |
7. Revenue Model:
Bidders will receive the revenue in the below mentioned form as:
- Fixed Storage Charge;
- Variable Charge;
- Handling Charges; and
- Fixed Storage Charges:
The Fixed Storage Charges shall be the L-1 as per the rate quoted in Tender. This will be decreased by 2% (two per cent) and Increased by the WPI and CPI Index.
| Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| WPI of N Year | 151.2 | 160.65 | 170.69 | 181.36 | 192.7 | 204.74 | 217.54 | 231.54 | 245.39 | 260.94 |
| CPI of N Year | 138.9 | 147.58 | 156.8 | 166.6 | 177.01 | 188.07 | 199.82 | 212.31 | 225.38 | 239.68 |
Calculation of rent for 5th year after construction
Base rent after 2% reduction: 92.24
WPI for 5th year : 231.14
WPI for base Year: 181.36
CPI for 5th Year : 212.31
CPI for base Year: 166.60
Increase with following percent
1+(70% of increase in WPI +30% of increase in CPI)
1+ ((231.14-181.36)/181.36)*70%+((212.31-166.60)/166.60)*30% = 1.27
Estimated rent will be 92.24*1.27 = 117.14
Rent will be
| Fixed Rent | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Decrease in rent as per DCA Pt. No. 15.1.4 | Under Construction | Under Construction | Under Construction | 100 | 98 | 96.04 | 94.12 | 92.24 | 90.4 | 88.59 |
| Increment as per schedule 1 pt. no. 2 of DCA | Under Construction | Under Contruction | Under Construction | 1 | 1.06 | 1.13 | 1.20 | 1.27 | 1.35 | 1.44 |
| Net Fixed Rent | Under Construction | Under Construction | Under Construction | 100 | 103.88 | 108.53 | 112.94 | 117.14 | 122.04 | 127.57 |
2. Variable Storage Charges:
Rs.0.77 (Rupees zero point Seventy Seven) per quintal per month.
Increase with following percent
1+(70% of increase in WPI +30% of increase in CPI)
1+ ((231.14-181.36)/181.36)*70%+((212.31-166.60)/166.60)*30% = 1.27
Estimated rent will be 0.77*1.27 = 0.978 per quintal per month
| Variable Rent | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Basic Rent | Under Construction | Under Construction | Under Construction | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 |
| Increment | Under Construction | Under Contruction | Under Construction | 1 | 1.06 | 1.13 | 1.2 | 1.27 | 1.35 | 1.44 |
| Net Variable Rent | Under Construction | Under Construction | Under Construction | 0.770 | 0.816 | 0.870 | 0.924 | 0.978 | 1.040 | 1.109 |
3. Handling Charges
As per schedule I of Concession Agreement
8. KIP Services for FCI Silo Tender:
We at KIP will assists to the bidder in:
- Tender Filling and Documentation
- Financial Feasibility Report:
It will help to the bidder for determining the Bid Rate. It will cover the following major part of financial such as:
- Cost of Project
- Banking Provision
- Projected Fixed Storage Rent
- Projected Revenue for 32 Years
- Projected Cash flow after taxation
- Project IRR
- Project Pay Back Period
To know more about filling of Silo Tender you may connect with us at +91 86838 98080
Reach Us
Call Us : 8683898080
E-mail Us : sales@kipfinancial.com
KIP Financial Consultancy Pvt. Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
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