The Government is planning to set up a special purpose vehicle (SPV) to attract private investment for setting up bulk foodgrain storage facilities.

The Minister of State for Consumer Affairs, Food and Public Distribution, Mr K.V. Thomas, said on Saturday: “It has been decided that a SPV will be created to promote private investment for building foodgrain storage facilities.”

Mr Thomas was speaking at a FICCI conference and the SPV will also play the role of a think-tank to undertake studies on bulk storage handling and transportation requirement for foodgrains.

“The Central Warehousing Corporation (CWC), Container Corporation of India (Concor) and the National Horticulture Board will be the partners of the proposed SPV,” said Mr Thomas.

“With the increased requirement of foodgrains handling under the PDS and the proposed National Food Security Act, there is a need to substantially enhance and improve the country's storage infrastructure through the involvement of the private sector,” he added.

The Planning Commission has initiated a study to suggest measures for creation of modern foodgrains storage infrastructure, which is expected to be completed soon.

The Minister said that almost 15 million tonnes of new storage capacity is being created by involving private entrepreneurs through the efforts of the CWC and state warehousing corporations.

Meanwhile, the Food Security Bill is also nearing completion. Mr Thomas said: “We are going to introduce the Food Security Bill soon and almost 65-70 per cent of the population is going to get the benefit.”

Draft bill

The draft bill is “almost at a final conclusive stage,” he told presspersons on the sidelines of the conference.

The National Advisory Council (NAC), headed by Ms Sonia Gandhi, had recommended to the government to grant legal entitlement of subsidised foodgrains to 75 per cent of population covering both “priority” and “general” households.

However, the Rangarajan Committee advised that foodgrains should be given to “general” category households based on availability.

But Mr Thomas said there wasn't much difference between the proposals of the NAC and Rangarajan Committee.