FCI is fully prepared to implement Food Security Law: Thomas

Union Food Minister Reviews FCI’s Preparedness

In the wake of the just-enacted National Food Security Act, the Union Minister for Food and Public Distribution, Prof. K V Thomas, today reviewed the operations of Food Corporation of India (FCI), especially from the point of view of its preparedness for implementing the law. Shri Sudhir Kumar, Secretary (Food and Public Distribution), was also present.

Expressing satisfaction after the review, Prof. Thomas said the FCI had been undertaking various steps in the last one year towards increasing the storage capacity and modernisation of the facilities, both essential components in the efficient distribution of food grains across the country. The FCI has sufficient stocks to implement the National Food Security law. Compared to an annual requirement of 61 million tonnes of food grains to meet the requirements under the Food Security Law, FCI has a stock of 65 million tonnes of food grains in its godowns.

“The National Food Security Act to provide food security to hundreds of millions of our people also poses a challenge before the Ministry of Food and Public Distribution and the FCI,” Prof. Thomas said. “Today’s review was undertaken to ensure that we are fully prepared for implementing the law,” he added.

“The FCI has been constructing high-capacity godowns across the country in the last one year through government schemes as well as public-private participation (PPP), besides modernising the storage facilities by building state-of-the-art silos for maintaining global standards in storage and distribution,” Prof. Thomas said.

Under the PPP mode, the FCI has approved construction of godowns with a capacity of 20 million tonnes through the Private Entrepreneurs Guarantee (PEG) scheme in various states. Of the 20 million tonnes under PEG scheme, the FCI has already taken possession of new godowns with a capacity of 6 million tonnes while those with 4.2 million are presently under construction.

The construction of state-of-the-art silos under the PEG scheme include creation of storage facilities for 2 million tonnes of food grains in 10 states, namely Bihar, Haryana, Madhya Pradesh, Punjab, West Bengal, Assam, Kerala, Maharashtra, Uttar Pradesh and Gujarat. The CRISIL Risk and Infrastructure Solution Ltd. has been appointed the project consultant for the construction of 2 million tonne-capacity silos. Under the 2 million tonne-capacity, 1.5 million tonne will be built under the ‘Build, Own and Transfer’ model and the rest under ‘Build, Own and Operate’ model.

“The e-tenders for the construction of 2 million tonne-capacity silos will be floated soon,” Prof. Thomas said.

The Minister also reviewed the manpower planning of FCI, including a new Pension Scheme, which is currently pending with the Expenditure Department of the Union Ministry of Finance following its approval by the Board of Directors of FCI. The FCI Board of Directors has also approved a Post-Retirement Medical Scheme for the corporation’s employees, which is presently pending.

The FCI currently has a manpower of 25,752 employees against a sanctioned strength of 36,515. The existing shortage of manpower at various levels is being filled through recruitment of about 8,500 employees for maintaining the current level of operations.

The Minister also reviewed the disposal of old crop year stocks, open market sales scheme and corporate governance of FCI. The liquidation of old stocks will be undertaken by October 31 for stocks during 2010-11 and by March 31 next year for stocks during 2011-12.

Under the corporate governance, FCI has prepared a policy on Risk Management, which is under review by the senior management to be placed before the Board of Directors. An orientation programme for new Board members of FCI is also being undertaken to train them on corporate governance. The Corporation has also been following the Accounting Standards issued by the Institute of Chartered Accountants of India for disclosures about transactions and Accounting Standards, besides reconstituting an Audit Committee and forming a Remuneration Committee.