Lok Sabha Question No. 3456 (UNSTARRED), answered on 2017-08-08
Subject: Complaints against Cold Chain Centres
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: DEVJI MANSINGRAM PATEL

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.3456

ANSWERED ON 8 TH  AUGUST, 2017

## COMPLAINTS AGAINST COLD CHAIN CENTRES

## 3456. SHRI DEVJI M. PATEL

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether any report has been received against the agencies responsible for implementation of cold chain centres;
- (b) if so, whether any system has been evolved by the Government to monitor the irregularities therein;
- (c) if so, the details thereof; and
- (d) whether the complaints regarding higher charging by cold storages owners and tackling the issue of lapses in storing the farmers' produce has been received by the Government and if so,  the  action  taken  by  the  Government  against  the  erring  cold  storage  owners  in  this regard?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

(a  to  c): The revised operational guidelines for the scheme for Integrated Cold Chain and Value Addition  Infrastructure  were  issued  on  29.08.2016.  The  guidelines  contain  certain  enabling provisions  to  ensure  that  suitable  action  is  taken  in  case  any  irregularity  is  committed  by  the promoter in connection with implementation of a cold chain project. Some of these provisions are as follows:-

- i. In case of non-implementation of the project as per the approval letter, the Ministry would have  the  discretion  to  cancel  the  approval  granted  to  the  project  and  to  recall  the  grant,  if  any, released, with interest @ 10% per annum.
- ii. In  case  of  failure  to  operate  the  project  for  at  least  three  years  after  commencement  of commercial  operation,  the  promoter  shall  return  the  entire  grant-in-aid  with  interest  @  10%  per annum.

iii. In case of the failure of the promoter(s) to refund the grant-in-aid amount with interest, in the  event  of  non-implementation  of  the  project  as  approved  and  /  or  utilization  of  the  grant  for purposes other than on the approved components, the due amount shall be recovered as an arrear of land revenue as per the relevant law in force.

iv. If  at  any  point  of  time,  it  comes  to  the  notice  of  the  Ministry  that  the  grant  has  been availed by manipulation/ concealment of information/ facts, the same  shall be  withdrawn immediately and the amount, if any, released shall be refunded along with interest at the rate of 10% per annum.

v. The  assets  created  wholly  or  substantially  out  of  the  Government  Grant  shall  not  be disposed-off or encumbered or utilized for purposes other than those for which the grant has been sanctioned, without obtaining the prior approval of the Ministry. In case of non-compliance of this condition, the promoter(s) will be liable to refund the grant with interest @ 10% per annum. In case of the failure of the promoter(s) to refund the grant-in-aid amount with interest, the due amount shall be recovered as an arrear of land revenue as per the relevant law in force.

(d): The Ministry has not received any representation/complaint against the promoters of cold chain projects  regarding  over  charging,  mishandling  of  produce  etc..  Hence,  the  question  of  the  action taken by the Government against the erring cold storage owners in this regard does arise.

The Integrated Cold Chain projects set up under the Cold Chain scheme of the Ministry are being operated by the promoters on different business models viz. rental basis, captive use and a mix of rental and captive use. The Ministry has not determined any methodology to fix the rates of storage of agricultural produce and value addition for the facilities at these projects.

However, Warehousing Development and Regulatory Authority under Department of Food & Public Distribution  registers  the  warehouses  including  cold  storages  which  intend  to  issue  Negotiable Warehouse Receipts (NWRs) to the depositors against their deposits. Registration of warehouses/ cold  storages  with  WDRA  is  voluntary.  The  farmers  depositing  their  produce  in  the  registered warehouses / cold storages can benefit from these NWRs to avail loan from the Banks against pledge of the NWRs.

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