Lok Sabha Question No. 3949 (UNSTARRED), answered on 2018-03-20
Subject: Construction of Godowns under PEG
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAMSINH PATALYABHAI RATHWA

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

## UNSTARRED QUESTION NO. 3949 TO BE ANSWERED ON 20 TH  MARCH, 2018

## CONSTRUCTION OF GODOWNS UNDER PEG

## 3949.   SHRI RAMSINH RATHWA:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the  salient  features  of  the  Private  Entrepreneurs  Guarantee  (PEG) Scheme implemented by the Government;
- (b) whether the Government has allocated adequate funds for construction of godowns under the said Scheme during each of the last three years and the current year and if so, the details thereof, Statewise;
- (c) whether the Government proposes to cover each State under the said Scheme so as to increase the capacity of godowns for storage of foodgrains in the country, if so, the details thereof and the time by which it is likely to be done; and
- (d) the  other  steps  taken  by  Government  to  ensure  safe  storage  of foodgrains across the country?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a): In order to augment  the  storage  capacity  in the country the Government  formulated  Private  Entrepreneurs  Guarantee  (PEG)  Scheme  in the  year  2008  &  2009  for  construction  of  storage  capacity  through  private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). The salient features of PEG scheme are as given below:
- Investment and construction is done by the private investor/Government Agencies. As return for investment, Food Corporation of India (FCI) guarantees hiring of the godown constructed by a private party for 10 years.  The guarantee period for CWC/SWCs is 9 years.

- The  location  and  capacity  for  godowns  are  identified  as  per  storage requirements by State Level Committees (SLC) and finally approved by the  High  Level  Committee  (HLC)  headed  by  Chairman  &  Managing Director, FCI.
- Minimum capacity for a godown is 5,000 MT in plain areas and 1,670 MT in  hilly  areas.    Godowns  of  5,000  MT  and  above  capacity  should  be preferably within 8 KMs of full rake capacity railway goods shed/procuring  mandi.    Godowns  of  25,000  MT  and  above  capacity should be preferably with Railway sidings.  All godowns should be near National/State highways.
- The godown must be constructed as per the specifications stipulated by  FCI.  In  addition  to  construction,  the  partner  may  also  provide services like security and preservation if required by FCI.
- The period  of  construction  normally  allowed  is  one  year  for  godowns without railway siding and two years for godowns with railway siding. Delay  in  construction  upto  one  year  may  be  allowed  with  similar reduction in the guarantee period and in case of delay beyond one year the agreement may be cancelled.
- Selection of the private party is done through open advertisement and two stage tendering process.  The private party may be an individual or partnership firm or a company or trust, having ownership of land in the location where godown is to be constructed.
- A person holding land under Registered Lease for a minimum period of 13 years with permission to construct godown can also apply.
- A party, who does not own land, but intends to acquire the same within 120 days from the date of acceptance letter, can apply by furnishing an additional amount of Earnest Money Deposit (EMD) and a Supplementary Bank Guarantee @ Rs. 100.00 per MT.
- (b): Under PEG scheme, investment for construction of godowns is done by private parties, CWC, SWCs and other State agencies by arranging their own  funds  and  land.  No  funds are allocated  by  the  Government  for construction of godowns.
- (c): The PEG scheme has already been implemented in all the States of the  country  as  per  assessment  of  requirement,  except  Delhi,  Nagaland, Arunachal  Pradesh,  Manipur,  Mizoram,  Tripura  and  Sikkim.  The  capacities created  in  various  States  are  given  in  Annexure.  FCI  has  sufficient  owned capacity in Delhi. In the North Eastern States mentioned above, godowns are constructed by using Government funds under Central Sector Scheme.

(d):  The Bureau of Indian Standards (BIS), Food Corporation of India (FCI) & Central Warehousing Corporation (CWC) have prescribed standard specifications  for  construction  of  foodgrain  storage  godowns.  While  taking up construction, the central agencies namely FCI & CWC and State Agencies follow the prescribed construction design for godowns in order to ensure that the  foodgrains  are  protected  from  natural  calamities  like  rains  and  floods. Similarly,  only  scientifically  constructed  godowns  are  hired  from  private parties.  In  addition,  FCI  takes  the  following  steps  to  avoid  damage  to foodgrains:

- Foodgrains  are  stored  in  scientifically  constructed  godowns.  Some foodgrains are stored for short periods in CAP (cover and plinth) in peak procurement season.
- Adequate  dunnage  materials  such  as  wooden  crates,  bamboo  mats, polythene sheets are used to check migration of moisture from the floor to the foodgrains.
- Prophylactic (spraying of insecticides) and curative treatments (fumigation)  are  carried  out  regularly  and  fumigation  covers,  nylon ropes,  nets  etc  are  provided  for  control  of  insects  &  pests  in  all  the godowns.
- Regular periodic inspections of the stocks/godowns are undertaken by qualified and trained staff and officers.
- The  principle  of  'First  in  First  Out'  (FIFO)  is  followed  to  the  extent possible so as to avoid longer storage of foodgrains in godowns
- Only covered rail wagons are used for movement of foodgrains so as to avoid damage during transit.
- Damage  Monitoring  Cells  have  been  set  up  at  District,  Regional  and Zonal levels to regularly monitor quality of stocks and reduce damages.

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ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  THE  UNSTARRED QUESTION NO. 3949 DUE FOR ANSWER ON 20.03.2018 IN THE LOK SABHA.

## State-wise capacities created under PEG Scheme

## Figures in MT

| SI   | State            | Total Capacity Completed   |
|------|------------------|----------------------------|
| 1    | Andhra Pradesh   | 87,800                     |
| 2    | Assam            | 25,000                     |
| 3    | Bihar            | 329,787                    |
| 4    | Chhattisgarh     | 537,230                    |
| 5    | Gujarat          | 49,800                     |
| 6    | Haryana          | 3,434,959                  |
| 7    | Himachal Pradesh | 24,170                     |
| 8    | Jammu & Kashmir  | 155,520                    |
| 9    | Jharkhand        | 193,000                    |
| 10   | Karnataka        | 241,440                    |
| 11   | Kerala           | 5,000                      |
| 12   | Madhya Pradesh   | 1,283,920                  |
| 13   | Maharashtra      | 564,527                    |
| 14   | Meghalaya        | 0                          |
| 15   | Odisha           | 319,500                    |
| 16   | Punjab           | 4,493,365                  |
| 17   | Rajasthan        | 235,000                    |
| 18   | Tamilnadu        | 230,000                    |
| 19   | Telangana        | 269,000                    |
| 20   | Uttar Pradesh    | 1,413,627                  |
| 21   | Uttarakhand      | 10,000                     |
| 22   | West Bengal      | 179,090                    |
|      | Total            | 14,081,735                 |

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