Lok Sabha Question No. 1466 (UNSTARRED), answered on 2015-12-08
Subject: PEG Scheme
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: P. KUMAR

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 1466

## TO BE ANSWERED ON 08 th  DECEMBER, 2015 PEG SCHEME

1466. SHRI P. KUMAR:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC

DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Private Enterpreneurs Guarantee Scheme is presently in force;
- (b)
- if so, the details thereof, including the salient features of the scheme;
- (c) whether  construction  of  any  godowns  is  presently  underway  under this scheme; and
- (d) if so, the details thereof, including the targets set and achieved under the said scheme during each of the last three years and the current year, State-wise?

## MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## A N S W E R (SHRI RAM  VILAS PASWAN)

(a) & (b): Yes, Madam.  New godowns are being constructed under Private Entrepreneurs Guarantee (PEG) Scheme in 20 states.    However, out of 152  lakh  MT  capacity  sanctioned,  130  lakh  MT  has  already  been completed.   The scheme is almost matured for completion/closure.

The salient features of this scheme are as under:-

- This  scheme  is  implemented  through  private  investors  as  well  as Central Warehousing Corporation (CWC)/ State Warehousing Corporations (SWCs)/other State agencies in Public Private
- Partnership (PPP) mode.
- Investment and construction is done by the PPP partner.  As return for investment  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 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 in 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.
- (c)  &  (d):    Construction  work for 16,23,040 MT is under progress. Statewise  details  are  at  Annexure-I.    The  details  of  target  set  and  achieved under  PEG  scheme  during  last  three  years  and  current  year  (as  on 31.10.2015) are as under:

| Year    |   Target (in LMT) |   Achievement |
|---------|-------------------|---------------|
| 2012-13 |                45 |         40.66 |
| 2013-14 |                50 |         49.88 |
| 2014-15 |                27 |          8.3  |
| 2015-16 |                 3 |          3.4  |

State-wise details of capacity completed during last three years and current year are at Annexure-II.

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ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (c)  to  (d)  OF  THE UNSTARRED  QUESTION  NO.  1466  DUE  FOR  ANSWER  ON  08.12.2015  IN THE LOK SABHA

## State-wise details of capacity under construction under PEG scheme

Capacity under construction

| Sl. no   | State          |   Capacity under construction (in MT) |
|----------|----------------|---------------------------------------|
| 1        | Andhra Pradesh |                                 25000 |
| 2        | Bihar          |                                265000 |
| 3        | Chhattisgarh   |                                 67040 |
| 4        | Haryana        |                                 16680 |
| 5        | Jammu &Kashmir |                                101000 |
| 6        | Jharkhand      |                                 30000 |
| 7        | Karnataka      |                                 36670 |
| 8        | Madhya Pradesh |                                422370 |
| 9        | Odisha         |                                 35000 |
| 10       | Punjab         |                                128270 |
| 11       | Rajasthan      |                                 15000 |
| 12       | Tamilnadu      |                                 75000 |
| 13       | Uttar Pradesh  |                                338000 |
| 14       | West Bengal    |                                 43010 |
| 15       | Assam          |                                 25000 |
|          | Total          |                               1623040 |

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (c)  to  (d)  OF  THE UNSTARRED QUESTION NO. 1466 DUE  FOR ANSWER ON  08.12.2015  IN THE LOK SABHA

## State-wise and year-wise details of the storage capacity created under PEG scheme

| Sl.no   | State            |   2012-13 |   2013-14 |   2014-15 |   2015-16 |
|---------|------------------|-----------|-----------|-----------|-----------|
| 1       | Andhra Pradesh   |     0     |      0.16 |      0    |      0    |
| 2       | Bihar            |     0.12  |      0.58 |      0.5  |      0.15 |
| 3       | Chhattisgarh     |     1.73  |      1.78 |      0.24 |      0.25 |
| 4       | Gujarat          |     0.05  |      0.45 |      0    |      0    |
| 5       | Haryana          |     8.77  |     15.48 |      4.2  |      0    |
| 6       | Himachal Pradesh |     0.025 |      0.22 |      0    |      0    |
| 7       | Jammu& Kashmir   |     0.3   |      0.53 |      0.26 |      0    |
| 8       | Jharkhand        |     0.1   |      0.7  |      0.2  |      0.13 |
| 9       | Karnataka        |     0.69  |      0.67 |      0.14 |      0    |
| 10      | Kerala           |     0.05  |      0    |      0    |      0    |
| 11      | Madhya Pradesh   |     1.59  |      8.84 |      0    |      1.1  |
| 12      | Maharashtra      |     1.33  |      2.4  |      0    |      0    |
| 13      | Odisha           |     0.72  |      0.45 |      0    |      0.3  |
| 14      | Punjab           |    18.28  |      8.44 |      1.08 |      0.76 |
| 15      | Rajasthan        |     1.43  |      0.57 |      0    |      0    |
| 16      | Tamilnadu        |     0.2   |      0.75 |      0    |      0.05 |
| 17      | Telengana        |     0.53  |      1.41 |      0    |      0    |
| 18      | Uttar Pradesh    |     4.53  |      6.06 |      1.46 |      0    |
| 19      | Uttarakhand      |     0     |      0    |      0    |      0    |
| 20      | West Bengal      |     0.21  |      0.39 |      0.22 |      0.66 |
|         | Total            |    40.66  |     49.88 |      8.3  |      3.4  |

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