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 was announced by Minister of State for Consumer Affairs, Food and Public Distribution Raosaheb Patil Danve.
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 crore during the 12th Five Year Plan (2012-17).
Danve said that in the current year, Rs 50 crore has been released to FCI for constructing godowns and a capacity of 7,000 MT has been created. In addition, a total of Rs 5.00 crore in the form of Grants-in -Aid has been released to the State Governments of Mizoram (Rs 2.00 crores), Arunachal Pradesh (Rs 1.78 core) , Sikkim (Rs 0.55 crore) and Tripura (Rs 0.67 crore), 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. 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.
Danve informed that Government will 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.