Lok Sabha Question No. 222 (STARRED), answered on 2017-08-01
Subject: Private Entrepreneurs Guarantee Scheme
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAHUL RAMESH SHEWALE, SANJAY SHAMRAO DHOTRE

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA STARRED QUESTION NO. 222 TO BE ANSWERED ON 01 ST  AUGUST, 2017

## PRIVATE ENTREPRENEURS GUARANTEE SCHEME

- *222.   SHRI RAHUL SHEWALE: SHRI SANJAY DHOTRE:

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 in the country;
- (b) whether the Government has allocated adequate funds for creating modern storage capacity in the country under the said scheme during each of the last three years and the current year;
- (c) if so, the details thereof, State-wise and if not, the reasons therefor;
- (d) whether the Government proposes to cover each State of the country under  the  said  scheme  so  as  to  increase  the  modern  storage  capacity  of foodgrains in the country and if so, the details thereof along with the present status of such proposal; and
- (e) the other steps taken/being taken by the Government to ensure safe storage of foodgrains across the country?

A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAMVILAS PASWAN)

(a)

to (e): A statement is laid on the table of the House

****

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (e)  OF  THE STARRED QUESTION NO. 222 DUE FOR ANSWER ON 1 st  AUGUST, 2017 IN THE LOK SABHA

- (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 Government Agencies. The salient  features  of  PEG  scheme  are  as  given below:
- Investment  and  construction  is  done  by  the  private  investor/State Agencies.    As  return  for  investment,  FCI  guarantees  hiring  of  the godown  constructed  by  a  private  party  for  10  years.    The  guarantee period for CWC/State Government Agencies 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.
- 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) & (c): 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.

(d):  The  PEG  scheme  is  already  implemented  in  21  States  as  per assessment  of  requirement.  In  case  of  2  States  (Goa  &  Meghalaya),  the implementation  of  the  scheme  has  not  been  found  feasible.  In  case  of remaining  States  viz.  Arunachal  Pradesh,  Nagaland,  Mizoram,  Manipur, Tripura and Sikkim the scheme has not been extended since godowns are being  constructed  under  the  Central  Sector  Scheme  for  'Construction  of godowns  for  food  storage  with  special  focus  on  North  East'.  The  Statewise details of capacity sanctioned and completed as on 30.06.2017 are at Annexure-I.

(e): In addition to construction of godowns under PEG Scheme Government has taken following steps for augmentation and modernization of storage capacities across the country in order to ensure safe storage of foodgrains:

- i. Central  Sector  Scheme:  This  scheme  is  focussed  on  the  North Eastern States. Funds are released by the Government to FCI and also directly to the State Governments for construction of godowns. During 12 th  Five Year Plan, a capacity of 1,17,680 MT in North Eastern (NE) States and 20,000 MT in other than NE States has been completed by FCI. Further, a capacity of 46,495 MT has been created by State Governments.
- ii. Construction of steel silos: Government of India has also approved action  plan  for  construction  of  steel  silos  in  the  country  for  a capacity of 100 LMT in 3 phases. Against the target of 36.25 LMT for  selection  of  silo  operators  in  Phase-I,  tenders  have  been awarded for 37.50 LMT. Further, 6.25 LMT silos have been added under the above action plan, in addition to 5.5 LMT silos already available with FCI. The State-wise details of construction of steel silos are at Annexure-II.

***********

## ANNEXURE-I

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  THE  STARRED QUESTION NO. 222 DUE FOR ANSWER ON 1 st  AUGUST, 2017 IN THE LOK SABHA

completed

| STATEMENT SHOWING STATEWISE CAPACITY COMPLETED UNDER PEG SCHEME AS ON   | STATEMENT SHOWING STATEWISE CAPACITY COMPLETED UNDER PEG SCHEME AS ON   | STATEMENT SHOWING STATEWISE CAPACITY COMPLETED UNDER PEG SCHEME AS ON   | STATEMENT SHOWING STATEWISE CAPACITY COMPLETED UNDER PEG SCHEME AS ON   |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
| 30.06.2017                                                              | 30.06.2017                                                              | 30.06.2017                                                              | 30.06.2017                                                              |
| (figures in MT)                                                         | (figures in MT)                                                         | (figures in MT)                                                         | (figures in MT)                                                         |
| Sl. No.                                                                 | State                                                                   | Total capacity sanctioned                                               | Total capacity already completed                                        |
| 1                                                                       | Andhra Pradesh                                                          | 1,12,800                                                                | 87,800                                                                  |
| 2                                                                       | Bihar                                                                   | 4,32,000                                                                | 2,94,787                                                                |
| 3                                                                       | Chhattisgarh                                                            | 5,42,230                                                                | 5,37,230                                                                |
| 4                                                                       | Gujarat                                                                 | 49,800                                                                  | 49,800                                                                  |
| 5                                                                       | Haryana                                                                 | 34,99,489                                                               | 34,49,959                                                               |
| 6                                                                       | Himachal Pradesh                                                        | 1,24,200                                                                | 24,170                                                                  |
| 7                                                                       | Jammu & Kashmir                                                         | 2,41,350                                                                | 1,55,520                                                                |
| 8                                                                       | Jharkhand                                                               | 3,48,000                                                                | 1,28,000                                                                |
| 9                                                                       | Karnataka                                                               | 2,41,440                                                                | 2,41,440                                                                |
| 10                                                                      | Kerala                                                                  | 5,000                                                                   | 5,000                                                                   |
| 11                                                                      | Madhya Pradesh                                                          | 13,79,660                                                               | 12,83,920                                                               |
| 12                                                                      | Maharashtra                                                             | 5,64,527                                                                | 5,64,527                                                                |
| 13                                                                      | Odisha                                                                  | 3,60,000                                                                | 3,09,500                                                                |
| 14                                                                      | Punjab                                                                  | 44,93,365                                                               | 44,93,365                                                               |
| 15                                                                      | Rajasthan                                                               | 2,35,000                                                                | 2,20,000                                                                |
| 16                                                                      | Tamilnadu                                                               | 2,65,000                                                                | 2,00,000                                                                |
| 17                                                                      | Telengana                                                               | 3,19,000                                                                | 2,69,000                                                                |
| 18                                                                      | Uttar Pradesh                                                           | 15,26,127                                                               | 13,73,127                                                               |
| 19                                                                      | Uttarakhand                                                             | 10,000                                                                  | 0                                                                       |
| 20                                                                      | West Bengal                                                             | 2,85,180                                                                | 1,64,090                                                                |
| 21                                                                      | Assam                                                                   | 25,000                                                                  | 0                                                                       |
|                                                                         | Total                                                                   | 1,50,59,168                                                             | 1,38,51,235                                                             |

***

ANNEXURE-II ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (e)  OF  THE  STARRED QUESTION NO. 222 DUE FOR ANSWER ON 1 st  AUGUST, 2017 IN THE LOK SABHA

| STATEMENT SHOWING STATEWISE CAPACITY PLANNED AND COMPLETED FOR CONSTRUCTION OF STEEL SILOS AS ON 30.06.2017   | STATEMENT SHOWING STATEWISE CAPACITY PLANNED AND COMPLETED FOR CONSTRUCTION OF STEEL SILOS AS ON 30.06.2017   | STATEMENT SHOWING STATEWISE CAPACITY PLANNED AND COMPLETED FOR CONSTRUCTION OF STEEL SILOS AS ON 30.06.2017   | STATEMENT SHOWING STATEWISE CAPACITY PLANNED AND COMPLETED FOR CONSTRUCTION OF STEEL SILOS AS ON 30.06.2017   | STATEMENT SHOWING STATEWISE CAPACITY PLANNED AND COMPLETED FOR CONSTRUCTION OF STEEL SILOS AS ON 30.06.2017   |
|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
| (figures                                                                                                      | (figures                                                                                                      | (figures                                                                                                      | (figures                                                                                                      | (figures                                                                                                      |
| Sl. No.                                                                                                       | State                                                                                                         | Capacity planned                                                                                              | Capacity for which silo operators                                                                             | Capacity for which work completed                                                                             |
| 1                                                                                                             | Andhra Pradesh                                                                                                | 3.50                                                                                                          | 0.00                                                                                                          | 0.00                                                                                                          |
| 2                                                                                                             | Assam                                                                                                         | 0.50                                                                                                          | 0.50                                                                                                          | 0.00                                                                                                          |
| 3                                                                                                             | Bihar                                                                                                         | 9.50                                                                                                          | 1.50                                                                                                          | 0.00                                                                                                          |
| 4                                                                                                             | Chhattisgarh                                                                                                  | 1.00                                                                                                          | 0.00                                                                                                          | 0.00                                                                                                          |
| 5                                                                                                             | Delhi                                                                                                         | 1.00                                                                                                          | 0.50                                                                                                          | 0.00                                                                                                          |
| 6                                                                                                             | Gujarat                                                                                                       | 3.00                                                                                                          | 1.00                                                                                                          | 0.00                                                                                                          |
| 7                                                                                                             | Haryana                                                                                                       | 9.50                                                                                                          | 3.00                                                                                                          | 0.00                                                                                                          |
| 8                                                                                                             | Karnataka                                                                                                     | 0.25                                                                                                          | 0.25                                                                                                          | 0.00                                                                                                          |
| 9                                                                                                             | Madhya Pradesh                                                                                                | 10.00                                                                                                         | 4.50                                                                                                          | 4.50                                                                                                          |
| 10                                                                                                            | Maharashtra                                                                                                   | 1.50                                                                                                          | 0.00                                                                                                          | 0.00                                                                                                          |
| 11                                                                                                            | Odisha                                                                                                        | 2.00                                                                                                          | 0.00                                                                                                          | 0.00                                                                                                          |
| 12                                                                                                            | Punjab                                                                                                        | 31.00                                                                                                         | 21.25                                                                                                         | 1.75                                                                                                          |
| 13                                                                                                            | Rajasthan                                                                                                     | 6.25                                                                                                          | 0.00                                                                                                          | 0.00                                                                                                          |
| 14                                                                                                            | Telengana                                                                                                     | 1.50                                                                                                          | 0.00                                                                                                          | 0.00                                                                                                          |
| 15                                                                                                            | Uttar Pradesh                                                                                                 | 12.00                                                                                                         | 3.00                                                                                                          | 0.00                                                                                                          |
| 16                                                                                                            | West Bengal                                                                                                   | 7.50                                                                                                          | 2.00                                                                                                          | 0.00                                                                                                          |
|                                                                                                               | Total                                                                                                         | 100.00                                                                                                        | 37.50                                                                                                         | 6.25                                                                                                          |

***