Private Entrepreneurs Guarantee (PEG) Scheme - Construction of godown in PPP mode

The salient features of Private Entrepreneurs Guarantee (PEG) Scheme are as under:-

• This scheme is implemented through private investors as well as Central Warehousing Corporation (CWC)/ State Warehousing Corporations (SWCs)/other State agencies in PPP mode.
• Investment and construction is done by the PPP partner. As return for investment FCI guarantees hiring of the godown constructed by a private party for 10 years. The guarantee period for CWC/SWCs is 9 years.
• The location and capacity for godowns are identified as per storage requirements by State Level Committees and finally approved by the High Level Committee (HLC) headed by Chairman & Managing Director, FCI.
• Minimum capacity for a godown is 5,000 MT in plain areas and 1,670 MT in hilly areas. Godowns of 5,000 MT and above capacity should be preferably within 8 KMs of full rake capacity railway goods shed/procuring mandi. Godowns of 25,000 MT and above capacity should be preferably with Railway sidings. All godowns should be near National/State highways.
• The godown must be constructed as per the specifications stipulated by FCI. In addition to construction, the partner may also provide services like security and preservation if required by FCI.
• The period of construction normally allowed in one year for godowns without railway siding and two years for godowns with railway siding. Delay in construction upto one may be allowed with similar reduction in the guarantee period and in case of delay beyond one year the agreement may be cancelled.
• Selection of the private party is done through open advertisement and two stage tendering process.
• The private party may be an individual or partnership firm or a company or trust, having ownership of land in the location where godown is to be constructed. A person holding land under Registered Lease for a minimum period of 13 years with permission to construct godown can also apply. A party, who does not own land, but intends to acquire the same within 120 days from the date of acceptance letter, can apply by furnishing an additional amount of Earnest Money Deposit (EMD) and a Supplementary Bank Guarantee @ Rs. 100.00 per MT.