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Foodgrain storage capacity in North East to be augmented

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Delhi
The requirement of storage capacity for Central Food Stocks was assessed in the year 2009 at the States level by State Level Committees (SLCs), which comprised of officials of the State Governments dealing with Food and Public Distribution and the Food Corporation of India. This information was given by the Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve in a written reply in Lok Sabha today.

The Minister said that based on the storage gap recommended by the State Level Committees (SLCs), a capacity of about 200 lakh MT was approved for construction of godowns in 20 states. The FCI commenced implementation of the Private Entrepreneurs Guarantee (PEG) Scheme to augment storage capacities. The PEG Scheme is based on Public Private Partnership model and hence no funding is required from the Government. Accordingly, no funds have been released.

He said that however, the Government is augmenting storage capacities through Plan funds in the North Eastern States and a few other States where investor response under PPP was not forthcoming. A storage capacity of 3, 68,950 MT is being created with a financial outlay of Rs 530 crores during the 12th Five Year Plan (2012-17).

Shri Raosaheb Patil Danve said that in the current year, Rs 50 crores have been released to FCI for constructing godowns and a capacity of 7,000 MT has been created as on 31-10-2014. In addition, a total of Rs 5.00 crores in the form of Grants-in -Aid have been released to the State Governments of Mizoram (Rs 2.00 crores), Arunachal Pradesh (Rs 1.78 core) , Sikkim (Rs 0.55 crores) and Tripura (Rs 0.67 crores), for creation of intermediate storage godowns.

The Minister said that storage capacity under PEG Scheme is being created using private investment through Public Private Partnership. In the PEG Scheme, the FCI hires godowns on a guaranteed basis for 10 years. This ensures a fair rate of return to private investors. As against a capacity of 200 lakh MT approved under this scheme, a capacity of 120 lakh MT has been created as on 31-10-2014.

He said that as such, there is no scheme of the Department to construct storage facilities at the tehsil/consumer level. Only in the case of North Eastern States, Plan funds have been provided to create intermediate level godowns at tehsil level. In the current year, total Rs 5.00 crores in the form of Grants-in -Aid have been released to the State Governments of Mizoram (Rs 2.00 crores), Arunachal Pradesh (Rs 1.78 core) , Sikkim (Rs 0.55 crores) and Tripura (Rs 0.67 crores). However, all State Governments have been informed that such facilities may be constructed using funds under the MGNREGA scheme.

Shri Raosaheb Patil Danve said that Government shall utilize stock of foodgrains held by FCI for distribution under the Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS). The estimated allocation of foodgrains for the current year 2014-15 is about 485 lakh MTs under TPDS and about 120 lakh MTs in other Schemes, i.e. a total of 605 lakh MTs. Besides, Government also sells wheat, as and when required, to the bulk consumers/traders under Open Market Sales Scheme in order to check inflationary trends in the open market.

 

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First Published: Oct 31 2014 | 12:22 AM IST

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