Centre to build FCI grain godowns through MGNREG

The central government will allocate Rs. 450 crore to states in the present fiscal to states and change the schedule of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to build grain godowns across the country. The move comes as the central government attempts to roll out the food security scheme throughout the country. There are around 6,612 blocks in the country, which require about 44,000 tonnes storage capacity. "We will change Schedule 1 of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREG Act) Act to allow the rural job plan to be used for construction of intermediary godowns at the block level," said the Rural Development Minister Jairam Ramesh. Uttar Pradesh, Bihar, Madhya Pradesh, Tamil Nadu and Chhattisgarh would be the biggest beneficiaries, where the capacity for storing grains is very low. "Right now, the grains are stored in Food Corporation of India (FCI) godowns, and go straight to fair price shops. There is around 25-30 percent leakage in the PDS. The intermediary godowns will help reduce it," said the Minister of Consumer Affairs, Food and Public Distribution, K.V. Thomas. MGNREGA: The Mahatma Gandhi National Rural Employment Guarantee Act aims at enhancing the livelihood security of people in rural areas by guaranteeing hundred days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act passed by the Lok Sabha on 23 August 2004 and was signed by the President of India on 5 September 2005. On 2nd February 2006, it was first launches as National Rural Employment Guarantee Act (NREGA) from Anantapur in Andhra Pradesh and initially covered 200 of the "poorest" districts of the country, and later termed as MGNREGA Public Distribution System: Public Distribution System (PDS) is an Indian food security system. Established by the Government of India under Ministry of Consumer Affairs, Food, and Public Distribution and managed jointly with state governments in India, it distributes subsidized food and non-food items to India's poor. Major commodities distributed include staple food grains, such as wheat, rice, sugar, and kerosene, through a network of Public distribution shops, also known as Ration shops established in several states across the country. Food Corporation of India, a Government-owned corporation, procures and maintains the Public Distribution System.

What: Central Government Schemed Allocation of Rs. 450 Crore How: through MGNREG Why: Creation of New FCI grain godowns at Block level When: 17th October 2013