- June 6, 2023
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- 7 Comments
- Warehouse Business Opportunities, Warehouse Tender
Financial Bid For Silo Tender
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FCI – Silo Tender
66 Location, 18 Projects, 6 States.
Last date for submitting tender is 20th September 2023.
FCI has conducted a pre bid conference dated on 29 may 2023. A copy of minutes of such pre bid conference has been provided here with in the interest of silo investor.
Download the copy- Click Here
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 -6 for revenue district Yamuna Nagar of Haryana
Location | Estimated Project Cost | Net-Worth required |
---|---|---|
Project -6 for revenue district Yamuna Nagar | 147.16 Crores | 36.79 Crores |
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 | 147.16 Crore | 100% | 37 Crore | Yes |
Consortium | XYZ A | 147.16 Crore | 26% | 5 Crore | Yes |
Consortium | XYZ B | 147.16 Crore | 20% | 10 Crore | No (Since less than 26%) |
Consortium | XYZ C | 147.16 Crore | 28% | 15 Crore | Yes |
Consortium | XYZ D | 147.16 Crore | 26% | 13 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 6 having revenue district Yamuna Nagar has 4 locations i.e. (i) Mustafabad, (ii) Chichrauli (iii) Khizrabad and (iv) Jagadhri.
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
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) Increased by the WPI and CPI Index.
For Example:
Rent L-1 for Yamuna Nagar is Rs. 100 per MT.
WPI Index for Jan 2023 – 150.6
WPI Index for Jan 2022 – 142.9
Increment is 5.38% (150.60 – 142.90)/142.90*100
CPI Index for Jan 2023 – 132.80
CPI Index for Jan 2022 – 125.10
Increment 6.15% (132.80-125.10)/125.10*100
Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
---|---|---|---|---|---|---|---|---|---|---|
WPI of N Year | Under Construction | Under Construction | 150.6 | 158.71 | 167.27 | 176.28 | 185.78 | 195.79 | 206.34 | 217.46 |
CPI of N Year | Under Construction | Under Contruction | 132.8 | 140.97 | 149.65 | 158.86 | 168.64 | 179.02 | 190.04 | 201.74 |
Calculation of rent for 5th year (After 2 year construction period i.e. 7th year)
Base rent after 2% reduction: 92.24
WPI for 5th year : 185.78
WPI for base Year: 150.60
CPI for 5th Year : 168.64
CPI for base Year: 132.80
Increase with following percent
1+(70% of increase in WPI +30% of increase in CPI)
1+ ((185.78-150.60)/150.60)*70%+((168.64-132.80)/132.80)*30% = 1.24
Estimated rent will be 92.24*1.24 = 114.38
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 | 100 | 98 | 96.04 | 94.12 | 92.24 | 90.4 | 88.59 | 86.82 |
Increment as per schedule 1 pt. no. 2 of DCA | Under Construction | Under Contruction | 1 | 1.06 | 1.12 | 1.18 | 1.24 | 1.31 | 1.39 | 1.47 |
Net Fixed Rent | Under Construction | Under Construction | 100 | 103.88 | 107.56 | 111.06 | 114.38 | 118.42 | 123.14 | 127.63 |
2. Variable Storage Charges:
Rs.0.758 (Rupees zero point seven five eight) per quintal per month.
Increase with following percent
1+(70% of increase in WPI +30% of increase in CPI)
1+ ((185.78-150.60)/150.60)*70%+((168.64-132.80)/132.80)*30% = 1.24
Estimated rent will be 0.758*1.24 = 0.94 per quintal per month
Variable Rent | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
---|---|---|---|---|---|---|---|---|---|---|
Basic Rent | Under Construction | Under Construction | 0.758 | 0.758 | 0.758 | 0.758 | 0.758 | 0.758 | 0.758 | 0.758 |
Increment | Under Construction | Under Contruction | 1 | 1.06 | 1.12 | 1.18 | 1.24 | 1.31 | 1.39 | 1.47 |
Net Variable Rent | Under Construction | Under Construction | 0.758 | 0.803 | 0.849 | 0.894 | 0.94 | 0.993 | 1.054 | 1.114 |
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
Or you may fill this form- https://forms.gle/h81wB1CTRMSWD1tZ9
For receiving regular updates on Warehouse business & subsidies applicable on warehouse business join our KIP- Warehouse Business & Subsidy Update Plan
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KIP Financial Consultancy Pvt. Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
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send me the period of agreement rent per year for 50000 mt bep in which year
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