Lok Sabha Question No. 3633 (UNSTARRED), answered on 2015-08-11
Subject: PEG Scheme
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: BHARTRUHARI MAHTAB, SANJAY SHAMRAO DHOTRE

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION LOK SABHA

## UNSTARRED QUESTION NO. 3633 TO BE ANSWERED ON 11 TH  AUGUST, 2015

## PEG SCHEME

3633. SHRI BHARTRUHARI MAHTAB:

## 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 for augmentation of storage capacity;
- whether  the  Government  has  allocated  adequate  funds  under  the  said scheme for construction of godowns in the country during each of the last three
- (b) years and the current year, if so, the details thereof, State-wise;
- (c) whether the Government proposes to cover each State of the country under the  said  scheme  so  as  to  increase  the  capacity  of  godowns  for  storage  of foodgrains in the country, if so, the details thereof along with the time by which it is likely to be completed; and
- the  other  steps  taken  by  the  Government  to  ensure  safe  storage  of

## A N S W E R

MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI RAM  VILAS PASWAN)

## (a): The salient features of Private Entrepreneur Guarantee (PEG) 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 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 of godowns is identified as per storage requirements by the 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.
- (d) foodgrains across the country?

- 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  this  scheme,  arrangements for land and funds are made by investor itself.  Hence, no funds are allocated by the Government.

(c): Under the Scheme storage facility can be created through private entrepreneurship as per need analysis done on the basis of foodgrain procurement/consumption  and  availability  of  existing  storage  facility.    As  on 30.06.2015, a capacity of 150 lakh LMT has been sanctioned, out of which about 128 lakh MT has been completed and 16 lakh MT is under construction.

(d): The various steps being taken to ensure safe storage of foodgrains across the country are:

- (i) Proposal  for  modernization  of  existing  storage  facilities  of  FCI,  wherever feasible  by  constructing  modern  steel  silos  for  wheat  storage  is  under process.
- (ii) Godowns are so designed and constructed to make them are rodent proof and damp proof.
- (iii) Before the stocks are stored, the godown are properly cleaned.
- (iv) Floor  and  walls  are  treated  with  chemicals  such  as  air  charging  with Malathion and DDVP (insecticide) to make them pest free.
- (v) Foodgrain bags are properly stored on dunnages and arranged as per the stack plan.
- (vi) Prophylactic spraying of insecticides and curative measures like fumigation are carried out regularly for the control of insects, pests and rodents .
- (vii) Fortnightly inspection of stocks is done on 100% basis to check the quality of foodgrains.
- (viii) Further surveillance inspections of sample stocks at monthly and quarterly intervals are also done to ensure compliance with stipulated procedures.

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