Question : RENT FOR GODOWNS



(a) whether the efforts of the Food Corporation of India (FCI) to increase storage space in Punjab through hiring of godowns has been adversely affected by the low rent offered by it;

(b) if so, the details thereof indicating the rent offered by FCI;

(c) whether the State Government of Punjab has requested the Union Government to increase the rents offered by FCI for hiring godowns in the State; and

(d) if so, the details thereof and the reaction of the Government thereto?

Answer given by the minister


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

(a)&(b) : No Madam. The High Level Committee (HLC) of FCI has been empowered to accept rates higher than the indexed rates for CWC received through tenders, under the Private Entrepreneurs Guarantee (PEG) Scheme. Accordingly, FCI has accepted rates offered by private entrepreneurs upto Rs. 6.84 per qtl/month (for lease with services) in the State of Punjab which is higher than the rate payable to CWC. Moreover, about 43.60 lakh MT of storage capacity out of 46 lakh MT earmarked for construction of godowns in the State has already been sanctioned.

(c) & (d): The request of the State Government for higher rates was not accepted since rates are finalised through a two bid tendering process with the HLC empowered to accept higher than CWC indexed rates, with justification