Due to the increased procurement of foodgrains and to reduce the storage in Cover and Plinth (CAP) the Government formulateda Scheme for construction of storage godowns through private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). Assessment of additional storage needs under the scheme is based on the overall procurement/consumption and the storage space already available. For the consuming areas, storage capacity is to be created to meet four month’s requirement of PDS and other Welfare Schemes in a State. For the procurement areas, the highest stock levels in the last three years are considered to decide the storage capacity required. Later this scheme was extended to Decentralised Procuring (DCP ) states in 2009.
2.         The ceiling of rate fixed for hiring of godowns has been revised from Rs.3.80 per quintal per month to Rs.4.78 per quintal per month. In appropriate cases, the High Level Committee has been empowered to decide higher rates by recording reasons in writing.  The Guarantee Scheme was  also suitably modified based on the feedback obtained from the industry.
3.         A state wise mapping of existing capacities and analysis of additional requirements was undertaken based on objective criteria by State level committees and a High Level Committee of FCI. Based on this analysis and criteria laid down in the scheme, State wise capacity requirement and locations were identified. Under the scheme, the Food Corporation of India would now give a guarantee of ten years for assured hiring   As on 25-11-2011 a capacity of about 151.00 lakh tonne is to be created in 19 states under the scheme through private entrepreneurs and Central and State Warehousing Corporations. The Stte-wise details is at Annexure-I Tenders have been finalized for creation of storage capacity of about 88 lakh tonne by the private entrepreneurs, while more capacities are likely to be finalized in the next few months. CWC and SWCs are constructing 5.4    and   14.4 lakh tonne respectively under the  Scheme, out of which a capacity of about 4 lakh tonne has already been completed by CWC/SWCs
4.         For expeditious construction of godowns, it was decided that wherever CWC/SWCs have their own land and if this is within the identified locations and storage gap approved by the High Level Committee of FCI, CWC/SWCs will construct godowns on priority for which FCI would give a guarantee of 9 years for the storage charges.