Question : RENTAL FOR GODOWNS



(a) whether the rentals being paid by Food Corporation of India (FCI) to Andhra Pradesh State Warehousing Corporation (APSWC) for hiring the godowns is at par with rental paid to other State Warehousing Corporations and Central Warehousing Corporation;

(b) if so, the details thereof alongwith the date since when the revised rental is being paid by FCI; and

(c) the reasons for delay in implementation of the revised rentals?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (DR. AKHILESH PRASAD SINGH)

(a): The rentals being paid by Food Corporation of India (FCI) to Andhra Pradesh State Warehousing Corporation (APSWC) for hiring its godowns is at par with rental paid to other State Warehousing Corporation (SWCs). For godowns, owned by SWCs, they are being paid rent at par with CWC i.e. Rs. 1.79 per 50 Kg bag per month. For the godowns acquired by SWC from private parties under Seven Year Guarantee Scheme and rented out to FCI, the SWCs are being paid on the basis of actual rent paid by the SWCs to private parties investors plus 15% supervisory charges as per the decision taken by the FCI Board of Directors.

(b) & (c): The SWCs were paid Rs. 1.79 per 50 Kg bag per month from 1.4.2002. For the godowns taken by SWCs from private parties under Seven Year Guarantee Scheme and hired out to FCI, the rent @ Rs. 1.51 per 50 Kg bag per month was paid since inception of Seven Year Guarantee Scheme till 30.04.2006 and @ actual expenditure + 15% supervision charges from 1.05.2006 in Andhra Pradesh. Based on the above decisions and the provisional accounts of APSWC for the year 2005-06, ad hoc payment at Rs.1.27/bag/month is being paid by FCI to APSWC.