Govt to add 20 lakh tonne storage capacity in 2010-11

Government has fixed a target of creating additional storage capacity of 20 lakh tonnes this fiscal under the rural godown scheme and has alloted Rs 100 crore for the purpose.

Government has fixed a target of creating additional storage capacity of 20 lakh tonnes this fiscal under the rural godown scheme and has alloted Rs 100 crore for the purpose.

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"During the year 2010-11, the target for the entire country is 20 lakh tonnes storage capacity with a budgetary allocation of Rs 100 crore," Minister of State for Food and Agriculture K V Thomas said in response to a written query in the Lok Sabha on Tuesday.

He said the rural godown scheme is demand driven and applicable to all states and UTs and hence no state-wise targets are fixed or fund allocations made.

To create additional storage capacity, the government has also formulated a scheme for construction of storage godowns involving private entrepreneurs.

Under the scheme, the Food Corporation of India would now give a guarantee of 10 years for assured hiring. It has fixed a target of creating storage space of 150 lakh tonnes with the involvement of private entrepreneurs.