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The Cabinet Committee on Economic Affairs (CCEA) today approved Rs 458.56 crore support for setting up 2.92 lakh tonnes of foodgrains storage capacity in the north eastern region during the 12th Five Year Plan.
"CCEA has approved the budgetary support of Rs 458.56 crore to be released as equity to the Food Corporation of India (FCI) upto 2016-17 for constructing storage capacity of 2.92 lakh tonnes in north eastern states," a government source said.
The foodgrains storage facilities would be set up at 37 locations in north east, including Sikkim, at an estimated project cost of Rs 509.76 crore during the 12th Five Year plan (2012-2017), the source said.
Of the total, Rs 236.27 crore will be spent in 2014-15 fiscal under the plan scheme: 'Augmentation of foodgrains capacity by FCI and intermediary storage capacity by state government during 12th Five Year Plan'.
According to the source, the CCEA has approved the release of Rs 56.08 crore funds as equity to FCI upto 2016-17 fiscal for setting up of foodgrains storage capacity of 76,220 tonnes in non-north eastern region.
The committee has also approved a grant-in-aid of Rs 15.36 crore to be released by the Centre for augmentation of storage capacity by the state governments in north eastern region and Jammu & Kashmir.
Currently, the storage capacity availability in many of north eastern states is sufficient to keep only one month requirement of foodgrains. Hence, there is a need to strengthen storage facilities for distribution of foodgrains under the Food law.
