Lok Sabha Question No. 3828 (UNSTARRED), answered on 2019-07-16
Subject: Construction of Godowns with Private Participation
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 3828 TO BE ANSWERED ON 16 TH  JULY, 2019

## CONSTRUCTION OF GODOWNS WITH PRIVATE PARTICIPATION

## 3828. SHRI V.K.SREEKANDAN

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION उपभोक्ता त मल , ाखतद्ा औा तावर्ज�ाका्औता  मं be pleased to state:

- (a) whether  it  is  a  fact  that  to  meet  the  shortage  of  covered  storage  the Government  has  come  out  with  a  guarantee  scheme  for  construction  of godowns with private participation, if so, the details thereof; and
- (b) whether it is also true that the Government was able to meet the shortage of covered storage space with the said programme, if so, the details thereof?

## A N S W E R

## MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI   DANVE  RAOSAHEB   DADARAO)

(a)  to  (b):      Against  total  stocks  of  741.41  LMT  (as  on  01.06.2019),  the  total storage capacity available with Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and the State Agencies (both owned and hired capacity), is 862.45 LMT (as on 31.05.2019) comprising 739.76 LMT in covered godowns and 122.69 LMT in Cover and Plinth (CAP) storage. As such, there is sufficient capacity for storage of central pool foodgrains at the national level.

However, depending on requirement in specific areas and for modernization of storage facilities, Government implements the following schemes with private participation  for  construction  of  godowns  and  silos  in  the  country  for  central pool stock of foodgrains:-

- i. Private  Entrepreneurs  Guarantee  (PEG)  Scheme:  Under  this  Scheme,  which was formulated in 2008, storage capacity is created by private parties, CWC and State Government Agencies for guaranteed hiring by FCI. A capacity of 142.62  Lakh  MT  (LMT)  has  been  created  as  on  31.05.2019.    Under  this scheme, no funds are allocated by Government for construction of godowns and full investment is done by the private parties/CWC/State Agencies. After a godown is constructed and taken over by FCI, storage charges are paid to the investor for the guaranteed period of 9/10 years irrespective of the quantum of foodgrains stored.
- ii.  Construction of Steel Silos: In addition to conventional godowns, Government of India has also approved an action plan for construction of steel silos in the country for a capacity of 100 LMT in Public Private Partnership (PPP) mode for  modernizing  storage  infrastructure  and  improving  shelf  life  of  stored foodgrains. Against this, as on 31.05.2019, steel silos of 6.75 LMT capacity Viability Gap Funding (non-VGF) model is 32 years, while in case of Viability Gap  Funding  model  it  is  30  years  for  wheat  silos  and  is  31.5  years  for
3. have been created. The Concession period for silos constructed under noncomposite silos (wheat and rice).