Private Entrepreneurs Guarantee (PEG) Scheme
Construction of godown in PPP mode:
To take care of increasing levels of production/procurement of foodgrains and to reduce the dependence on Cover And Plinth (CAP) type of open storage for foodgrains,
the Department is implementing a scheme, namely Private Entrepreneurs Guarantee (PEG) Scheme, for augmenting the storage capacity of FCI in PPP mode.
The scheme was started for non-DCP states in 2008 and then extended to DCP states.
Construction of godowns is done by private investors or CWC/SWCs without any investment by the Government.
Return on investment is earned by the parties through rent, as FCI hires the godowns for a guarantee period of 10 years for private parties.
For Public Sector agencies it is 9 years.
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. Non railway siding based godowns are to be constructed in one year whereas godowns with railway siding are allowed two years construction period. This period can be extended by one year at the request of the investor. 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.
Locations for construction of godowns was identified by the FCI on the basis of recommendations of State Level Committees (SLCs) to meet the storage gaps.
For consuming areas, the storage gap is assessed on the basis of 4 months requirement of PDS and Other Welfare Schemes (OWS) while for procuring states the storage gap has been assessed based on the highest stock levels in the last three years, and keeping
in view the potential of procurement.
The scheme is in operation in 20 states. As on 30.11.2016, capacity of 151.12 lakh MT has been sanctioned for construction and 135.88 lakh MT has been completed.
Further 10.06 LMT is under various stages of construction. Thus the scheme is now in matured stage for closure.
Construction of modern silos in PPP mode
The PPP model shall also be used for creating modern storage facilities for wheat in the form of Silos.
A few silos will also be constructed for storage of rice on experimental basis.
This Department has approved an Action Plan for constructing total 100 LMT silos in a phased manner, including some silos through state governments and other agencies.
FCI has awarded contracts for selection of Silo operators for construction of 2.5 LMT Wheat Silos at 6 locations namely Sahnewal (50000 MT) and Kotkapura (25000 MT) - Punjab, Narela (50000 MT) - Delhi, Katihar (50000 MT)- Bihar, Changsari
(50000 MT)- Assam and Whitefield (25000 MT)- Karnataka under Viability Gap Funding (VGF) route.
FCI has awarded work for 26 locations of total capacity 13.50 Lakh MT under Non-VGF mode. FCI has also floated tenders on 7.12.2016 for capacity of 1.00 Lakh MT (50,000 MT each at Buxar and Kaimur in Bihar) including 25000 MT of Rice Silos
on pilot basis. Bids are due to open on 20.01.2017.
Further, CWC has also initiated construction of Silos of 50,000 MT capacity at Nabha in Punjab by engaging Engineers India Limited as the project consultant.
Government of Punjab has also planned to construct silos of capacity of 14.75 LMT of which work has been awarded for 1.5 LMT and tenders have been floated for 13.25 LMT.