According to the Minister of State in the Ministry of Consumer Affairs, Food & Public Distribution, Prof. K.V. Thomas, under the scheme, the Food Corporation of India would give a guarantee of ten years for assured hiring to the private entrepreneurs.
A capacity of about 152.97 lakh tonnes is to be created in 19 states under the scheme through private entrepreneurs and Central and State Warehousing Corporations.
Out of this tenders have been finalized for creation of storage capacity of 52.32 lakh tonnes by the private entrepreneurs till 31.07.2011. CWC and SWCs are constructing 5.31 and 15.49 lakh tonnes respectively under the Scheme, out of which a capacity of about 3.5 lakh tonnes has already been completed by CWC/SWCs.FCI would only pay rentals to the Private Entrepreneurs after taking over the godowns constructed under the scheme.