Lok Sabha Question No. 219 (STARRED), answered on 2015-08-04
Subject: Hiring of Godowns
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: LAXMAN GILUWA, SAKUNTALA LAGURI

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA STARRED QUESTION NO. 219

## TO BE ANSWERED ON 4 TH  AUGUST, 2015

## HIRING OF GODOWNS

- *219. SHRI LAXMAN GILUWA:

SHRIMATI SAKUNTALA LAGURI:

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 Food Corporation of India (FCI) hires godowns on rent for storage of foodgrains procured by them, if so, the details thereof including the number of godowns hired along with its capacity and funds incurred for the purpose during each of the last three years and the current year;
- (b) whether  instances  of  irregularities  have  been  detected  in  capacity utilisation,  fixation  and payment of rent in respect of hired godowns and if so, the details of such cases reported during the said period;
- (c) the  mechanism  put  in  place  to  monitor  usage  of  hired  godowns  and payment of rent etc., and the other corrective measures taken to check such irregularities;
- (d) the number and capacity utilisation of owned godowns during peak and off season separately during the above period; and
- (e) whether  any  cost-benefit  analysis  of  owned  and  hired  godowns  has been undertaken and if so, the details thereof along with the rationale/justification for hiring of godowns?

A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAM  VILAS 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.219  DUE FOR ANSWER ON 4 th  AUGUST, 2015 IN THE LOK SABHA

- (a): Yes,  Madam.      FCI  hires  godowns  on  rent  for  storage  of  procured foodgrains.  As on 30.06.2015, FCI has hired 1371 godowns of total capacity 219.58  Lakh  MT.  The  details  for  last  three  years  and  the  current  year  are given as below:-

| Year    |   Number of Hired Godowns (As on end of the year ) |   Capacity of Hired godowns (in Lakh MT) | Expenditure incurred/ Rent Paid (in crore Rs.)   |
|---------|----------------------------------------------------|------------------------------------------|--------------------------------------------------|
| 2012-13 |                                               1433 |                                   221.02 | 1469.87                                          |
| 2013-14 |                                               1418 |                                   212.49 | 2026.61                                          |
| 2014-15 |                                               1273 |                                   203.45 | 2229.45*                                         |
| 2015-16 |                                               1371 |                                   219.58 | N.A#                                             |

#  Figures  as  on  30-06-2015,  expenditure  is  compiled  at  the  end  of  the financial year.

- (b):    Only one case of irregularity in hiring of private godown and utilization of  own  godown  has  been  reported  in  the  above  said  period.    This  was reported  for  Food  Storage  Depot,  Viramgam,  Ahmedabad  during  2013. Preliminary  inquiry  has  been  completed  and  disciplinary  action  initiated against Shri K N Mallick, the then GM(Gujarat).  Further, show cause notices have been issued to the then Area Manager, Ahmedabad, AGM (Movement) & Manager (Movement), Regional Office, Ahmedabad.
- (c):   Suitable checks and balances are in place in FCI such as e-tendering, internal  audit,  CAG  audit  and  vigilance  action  to  ensure  hiring  of  godowns from  private  parties  in  a  transparent  and  cost  effective  manner.  Hiring  is done by floating open tender enquiry from the lowest bidders. Monitoring and review  of  usage  of  godowns  is  carried  out  every  month  at  Regional/Zonal/ Headquarter level.  IT based systems namely IISFM (Integrated Information System  for  Foodgrains  Management)  and  IRRS  (IISFM  Rapid  Reporting System) are being used for this purpose.

...2/-

...2...

- (d):   The peak season is during the month of June in Rabi Marketing Season and  the  off  season  is  during  the  month  of  December.  The  number  and capacity  utilization  of  FCI's  owned  godowns  during  these  months  for  last three years and current year are given below:-
- (e) :  No formal study has been done for comparing the cost/benefit of owned and hired godowns.  However, godowns are hired when owned capacity is not sufficient. Hired capacity is flexible to operate and can be de-hired when it is not required.

|   Year |   No. of Owned Godown |   Capacity of owned Godowns (in Lakh MT) |   Utilization % Peak Season (June) | Utilization % Off Season (December)   |
|--------|-----------------------|------------------------------------------|------------------------------------|---------------------------------------|
|   2012 |                   539 |                                      130 |                                 91 | 70                                    |
|   2013 |                   540 |                                      129 |                                 77 | 55                                    |
|   2014 |                   541 |                                      130 |                                 69 | 50                                    |
|   2015 |                   541 |                                      127 |                                 73 | -                                     |

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