foodsuppb.gov.in PEG Private Entrepreneur Guarantee Scheme Godowns : Department of Food Civil Supplies & Consumer Affairs

Organization : Department of Food Civil Supplies & Consumer Affairs Punjab
Facility : PEG Private Entrepreneur Guarantee Scheme

Details : https://www.statusin.in/uploads/22189-PEGSCHEME.pdf
Home Page :http://www.foodsuppb.gov.in/

PEG Scheme :

** Subject to other conditions in this scheme, the GM Region, FCI will analyse the storage needs of his region based on overall procurement/consumption, availability of already existing FCI/CWC/SWC/private godowns already hired by FCI on the basis of criteria given in Annexure of this scheme.

Related : Department of Food Civil Supplies & Consumer Affairs Punjab New Atta Dal Scheme : www.statusin.in/2856.html

** If required, he will also try to negotiate fresh terms and conditions for 5 year of further hiring after their 7 year guarantee period is over for the godowns already constructed under 7 year guarantee scheme provided there is a need to hire such godown on the basis of parameters laid down in this scheme.

** This process will be completed by GM(Region), FCI expeditiously, so that in case of failure to reach a satisfactory agreement for further 5 years hiring these godowns, FCI may initiate the process for fresh selection of entrepreneur for construction of new godown through CWC/SWC in these places well in time so as to have another godown ready before earlier godowns 7 year guarantee period is over to enable FCI to continue with its operations smoothly.

** He will send his recommendations to the concerned ED(Zone) with full justification.
** After assessment of the storage needs of the region, ED(Zone) concerned shall place his recommendations before the State Level Committee suggested in this scheme.

Essential parameters for identification of locations :
The justification by the State Committee and the HLC of FCI for hiring either any existing godown or for opting to create godown facility on PPP model ought to inter alia address the following:
How would hiring of such godown be cost effective to FCI keeping in view:
i. Past utilization of the godown in the area;
ii. Lead distance between:
a. The procurement centre and proposed godown
b. Godown and the loading point

iii If in the past such godown was not fully utilized, whether space can be taken in part
iv Expected utilization of godown with present procurement quantity and keeping in view the dehiring of storage capacity in the vicinity.

It has to be made sure that the additional godown should be decided in a manner that it does not involve creation of any additional post (including labour) in the FCI.

Extention of existing Seven Year Guarantee Scheme godowns :
Only after endorsement of the assessment for additional storage need and approval by the State Level Committee and being authorized by it, fresh terms and conditions for a further period of five years should be negotiated by a team constituted at the regional level, headed by the G.M (FCI) in respect of godowns already hired under the 7 years guarantee scheme with due regard for the written down, value of the storage facilities and market rates etc.

The negotiated terms and conditions should be placed before the High Level Committee (HLC)of FCI for decision.
Role:
The State Level Committee will examine, in detail :
a) The extent of procurement/likely procurement in the nearby places for which the storage capacity is to be created; as also
b) The consumption needs of the area (based on current allocation by the Department of Food and Public Distribution, Government. of India) which are proposed to be fed by the proposed godowns;

c) The existing infrastructure of not only FCI godowns but also of godowns owned by CWC/SWC/State Govt./private parties who have constructed godowns under earlier Seven Year Guarantee Scheme; and d) The extent of their(existing godowns/infrastructure) availability for the FCI storage needs.

Wherever it finds that an existing infrastructure, which is likely to be available to FCI, is not sufficient then it will recommend along with justification the capacity required to be constructed alongwith the suggested locations where such capacity should come up.

Salient features of the godowns :
The salient features of these godowns will be as follows:
** All godowns of 25000 MTs or above capacity will be preferably Railway siding godowns and all other godowns should be preferably within 8 Kms. of a Railway goods shed with full rake Railway siding facility.
** The entrepreneur will be allowed to develop additional storage capacity in the same premises for storage of other agricultural commodities including facilities for cold storage, food processing etc. to optimize asset utilization so long as it does not adversely affect storage and operations of FCI.
** However, such additional facility will not be covered under guarantee scheme and the concerned entrepreneur will use the normal market channel for hiring out these additional storage facilities.
** Before development of any such additional storage facility the entrepreneur will take permission from FCI so as to ensure that such activity will not hamper FCI operations and safety of it’s stocks.

Godowns with flexi-storage capacity :
** The godowns to be henceforth hired should preferably be able to accommodate storage different commodities thus ensuring better utilization.
** The godowns would be suitably structured so as to ensure that storage of foodgrain and the movement of FCI stock is not disturbed and also to ensure that the possibility of the deterioration of the stock is eliminated.
** Restrictions should, however, be imposed on the commodities which can be stored in separate compartments of the godown for which prior permission of the FCI would be required.