The Government is implementing the Private Entrepreneurs Guarantee (PEG) Scheme to augment the covered storage capacity through private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). This information was given by the Minister of Consumer Affairs, Food and Public Distribution,  Prof. K.V. Thomas in a written reply in Lok Sabha today.

He said that the FCI guarantees to hire godowns constructed under this scheme for a period of ten years, thereby, ensuring for the investor,  a fair return on his investment.  A capacity of about 197 lakh MTs as on 28.02.2013 has been approved for the construction of godowns in 19 States out of which a capacity of 141.46 lakh MTs has been sanctioned for construction. A capacity of 46.88 lakh MTs has been completed. For ensuring long-term scientific storage, the Government has also approved construction of 20 lakh MTs of storage capacity in silos within the overall sanctioned capacity of the PEG Scheme. 

        The rate of Storage and maintenance of foodgrains in Central Warehousing Corporation/State Warehousing Corporation godowns has been finalized for the year 2009-10 and is fixed at Rs. 5.46 per qtl. per month.  For the private godowns hired under the PEG Scheme, the rates of hiring are decided through a transparent two bid tendering process and have to be within the approved CWC rates indexed appropriately.  However, higher rates than the CWC rates received through tendering can only be approved by the High Level Committee (HLC) of FCI after recording the reasons/justifications.

            The quantity of wheat stored in the godowns of Government for last three years is given as under:

The rent paid by FCI to various Government Warehousing Agencies for storage and maintenance of foodgrains in the last three years is as under:-

(Rs. in Crore)

*****

NCJ/RV