Question : DECENTRALISED PROCUREMENT

MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

a): DCP States for Wheat

1. Madhya Pradesh
2. Uttarakhand
3. Chhattisgarh 
4. Gujarat
5. West Bengal
6. Rajasthan (Alwar District in 2013-14)

DCP States for Rice

1. Uttarakhand
2. Chhattisgarh
3. Odisha
4. Tamilnadu
5. West Bengal
6. Kerala
7. A&N Island
8. Karnataka
9. Madhya Pradesh
10. Andhra Pradesh (only for 7 districts w.e.f. 2012-13)

(b): The Government of India makes active efforts to persuade State Governments to adopt the decentralized system of procurement (DCP) scheme.

The decision regarding adoption of DCP system lies with the State Governments. The determining factors are infrastructure and resources available with the respective State Governments including manpower, storage and necessary logistics required for procurement and accordingly, State Government’s readiness to undertake DCP procurement.

Among the infrastructure required for procurement operations, storage facilities for foodgrains is a major factor. For this purpose the Government has formulated the Private Entrepreneur Guarantee (PEG) scheme for construction of covered storage godowns through private entrepreneurs, CWC and State Warehousing Corporation (SWC). Under the PEG Scheme, FCI gives guarantee for the storage charges to the private investors for ten years.