New Delhi: To ensure adequate foodgrains storage capacity, the Union Government has approved a capacity of 203.76 lakh MT for construction in 19 states, under the Private Entrepreneur Guarantee (PEG) scheme to ensure increased foodgrains storage capacity. Out of this 120.30 lakh MT has been completed.

The Himachal Pradesh also got its share as the Union Government has approved a capacity of 142,550 MT for construction in Himachal Pradesh. Right now state has only 24,170 MT capacities.

The Minister of State for Consumer Affairs, Food and Public Distribution, Raosaheb Patil Danve, in a written reply in Lok Sabha today, detailed out that storage capacity is being created under this Scheme in PPP mode through private parties, as well as various agencies in Public Sector for guaranteed hiring by FCI. Guarantee period for private parties is 10 years whereas for Public Sector agencies it is 9 years.

Minister further detailed out that in case of private parties, state wise tenders are invited by designated nodal agency under a 2 bid system. At the technical bid stage, sites are inspected and bids in respect of only those sites which are found suitable, are processed further. Tenders are allotted to the lowest bidders.

Danve said after completion of the godown, final inspection is carried by a joint committee of FCI and the Nodal agency and godowns completed in all respects and as per specifications are taken over on guarantee basis.

A Plan Scheme for construction of godowns by FCI in the North Eastern States and other states is being implemented. Under this scheme, capacity of 3,68,950 MT is being created during 12th Five Year Plan (2012-17). The capacity completed in the last two years (2012-13 and 2013-14) is 27,070 MT.

Silos are proposed to be constructed under PEG scheme for 20 lakh MT capacity at 41 locations. Efforts are being made to float tenders in FY 2014-15. Construction work will commence after finalization of tenders.