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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 7579

PROJECT COMPLETION REPORT

*-NDIA

SECOND FOODGRAIN STORAGE PROJECT'CREDIT 747-IN)

DECEMBER 30, 1988

Country Department 1VAsia Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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ABBREVIATIONS AND ACRONYMS

ARDC - Agricultural Refinance and Development CooperationASCI - Administrative Staff College of India, HyderabadCAP - Cover and plinth (Bagged grain placed on brick plinth and covered

with polyethylene sheets)CRORE - 10 millionCSS - Central Storage CommitteeCWC - Central Warehousing CorporationEGS - Employment Guarantee ProgramFCI - Food Corporation of IndiaFPS - Fair Price ShopsGOI - Government of IndiaIR - Indian RailwaysIRR - Internal Rate of ReturnITDP - Integrated Tribal Development ProjectLAKH - 100,000MICB - Management Information and Control Branch - of FCINREP - National Rural Employment ProgramPCR Project Completion ReportPDS - Public Distribution SystemPID - Project Implementation Division - of FCIRLEGP - Rural Landless Employment Guarantee ProgramRS - RupeeSWC - State Warehousing Corporation

INDIAN FISCAL YEAR

April 1 - March 31

FOR OFFICIL USE ONYTHE WORLD SANK

Washington. D.C. 20433U.S.A.

Oikce of Dmimtv.nalOpratuam EVA"iutim

December 30, 1988

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Report on India SecondFoodirain Storage Proiect (Credit 747-IN)

Attached, for information, is a copy of a report entitled'Project Completion Report on India Second Foodgrain Storage Project(Credit 747-IN)" prepared by the Government of India, with an ovevriewmemorandum prepared by the Asia Regional Office. Full evaluation ofthis project has not been made by the Operations EvaltLationDepartment.

Attachment

This document has a sricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorizatin.

FOR OMCIL USE ONLY

INDIA

SECOND FOODGRAIN STORAGE PROJECT (CREDIT 747-IN)

Project Completion Report

Table of Contents

Page No.

Preface.. .... iiBasic Data Sheet ..................................................... iv-vEvaluation Summary .... viOvevvierview......................................................... viii

I. INTRODUCTION .............................................. 1

II. FOOD SECURITY PERSPECTIVE ........ . . . . ......... . ... .. . ........ 2

b III. PROJECT IMPLEMENTATION .........

Original Project Content ............................... 17Start-up Period ..................................... 17Revisions in the Scope of the Project Content .......... 18Final project Content.#.*......................... . .... 20Implementation Period - Schedule vs Actual............. 21Factors Contributing to Time and Cost Overruns......... 21Performance of the Executing Agencies/MaterialsSuppliers, etc ................................ 0............ 23

Project Monitoring.**..*............................... 25Role of Consultants .................................... 25Research and Development, Operations Research andTraining*.***.,... .oo ...... . ............... ..........too 26

IV. ECONOMIC APPRAISAL .................... **** .... 27

V. CONCLUSIONS ...................... ....................... 29

Project Performance Evaluation...*.**** ............. 29Lessons Learnt for Implementation ofFuture Storage Projects. .. ....... *et 30

ANNEX G TABLES:

Table I Production of F oodggs ...... rs ....... 32Table 2 Compound Growth Rates of Area, Production and Yield

of Foodgrains in India .... .. ...................... 33

of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Table 3 All-India Production, Procurement of Importsand Distribution Foodgrains ............................. 34

Table 4 Net Availability, Procurement and PublicDistribution of Foodgrains............................ 35

Table 5 All-India Procurement of Rabi/Kharif Foodgrains(Marketing Year-wise) from 1964-65 to 1985-86 ........... 36

Table 6 Total Offtake (Distribution) of Foodgrainsfrom Government Stocks (Al-India). .. ...9999*... 37

Table 7 Index number of wholesale prices/of food-grains inIndia 9 ..... . ..9...999.99....999999999999999999999999999 38

Table 8 Pattern of Procurement Prices of Foodgrains in India*.*.*.... 39

Table 9 Stocks of Foodgrains with Central and StateGovernments and Stocks in Pipelines..................... 40

Table 10 Growth Pattern of Storage Accommodation with FCI ............ 41

ANNEX P TABLES

Table 1 Details of Proposed and Actually Constructed StorageCapacity.* .................................................... 42

Table 2 Details of Proposed and Actually ConstructedStorage Fclte .................................. 43

Table 3 Details of Proposed and Actual Storage Constructionand Capacities .......... 46

Table 4 Center-wise Details of Railway Sidings ...................... 53Table 5 Year-wise Project Implementation Details.................... 55Table 6 Storage Capacity Built under Retro-active Financing

Component ....................................................... 56Table 7 Statement Showing Financial Sources. ........................ 57Table 8 No. )f Rail-fed Center where Siding Works are Not .......... . 58

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INDIA



Preface

This is the Project Completion Report (PCR) of the Second FoodgrainStorage Project, for which a Credit in the amount of US$107 million was signedon January 1, 1978. The Credit was closed on February 19, 1986, at which timethe final disbursement was made and US$2.5 million were cancelled.

The PCR was prepared by Food Corporation of India (FCI). The IDAoverview and Evaluation Summary supplements FCI's review with IDA's observa-tions, giving special attention to points and issues not fully covered by thePCR prepared by FCI. The overview has been prepared by Asia Regional Officeand is based in part on the PCR, a review of the Staff Appraisal Report(No. 1643a-IN), dated November 3, 1977, correspondence with the Borrower,internal Bank memoranda on project issues as contained in relevant Bank filesas well as interviews and discussions with officials from the Borrower, andexperience during project execution.

Tne draft report was sent to the Borrower on October 31 for coaments;however, no comments were received.

The project was not subjected to an audit by the Operations EvaluationDepartment.

- iv -

PROJECT COtlPLETION REPORTINDIA

SECOND FODDGRAIN STORAGE PROJECT (CR. 747-IN)Basic Data Sheet

Actual or ktual a IAppraisal Estimated of Appraial

Key Project Data Estimate ctual Estimate

Total Project Cost (USS N) 215.5 230.0 107Total Project Cost (Rs t) 1.886.2 2,250.0 119Eligible for IDA Financinq (U5$ 1) 107.0Credit Amount (US$ O) 107.0 104.5 91.7Credit Amount (Rs M) 936.0Date Physical Components Completed 31-Dec-81 31-Dec-85Proportion Completed by that Date (X) 100.0 91.0 91.0Economic Rate of Re-urn 1) 19.9 19.7

Project Dates

Appraisal 06-Feb-77Board Approval 15-Nov-77Credit Agreement 06-iJa-78Effectiveness It-Nay-ilClosing Date 30-Jun-82 31-Dec-

Cumulative Disbursement FY78 FY79 FY80 FY81 FY82 FY85 FY84

Appraisal Estimate WUS$ N) 10.00 30.00 54.00 82.00 107.00 107.00 107.00Actual (US$ ) 1.10 7.40 18.70 26.10 33.60 45.00 53.80Actual as 2 of Estimate 0.11 0.25 0.35 0.32 0.31 0.42 0.50

Date of Final Disbursement of Credit: 19-Feb-96

v

Special-izations Perfor- Types

No. handays Repre- mance ofDate of in sented Rating Trend Problems

Nission Data (molyr) Persons Field 1/ 2/ 3/ 4/

Rev-iew -of Project Prep-ration Jun-76 1 1111 D IIA NA N/AReview of Project Preparation Aug-76 I NA D NA NA NAAppraisal FebiNar-77 5 155 B,C,D NA NA NASupervision I Feb-78 2 14 0 2 1 NSupervision 2 Jul/Aug-78 3 24 B,0 2 1 K,ISupervision 3 Feb-79 1 7 0 I 1 NSupervision 4 Sep-79 2 10 C,D 2 2 K,DSupervision 5 Nar-Bi 2 28 C,E 2 2 hSupervision 6 Feb-82 4 32 C,D,E 2 3 NSupervision 7 Sep-82 2 20 C,D,F 3 2 NASupervision 8 Feb-03 2 4 C,F 3 2 1Supervision 9 Apr-83 2 18 C,E 3 1 NSupervision 10 Sep-83 1 6 E 3 2 O,NSupervision 11 Apr-84 1 6 E 3 2 O,hSupervision 12 Sep-94 1 7 E 3 2 O,DSupervision 13 ?Iar/Apr-85 2 25 D,E 2 1 N

Total supervision mandays 201

Other Project Data

Borrower: Government of IndiaExecuting Agency: Food Corporation of IndiaFiscal Year of the Borrowoer: April 1 - March 31

Name of Currency: Indian Rupee (Rs.)

Currency Exchange Rate:Appraisal Report: US$1.00 Rs. 8.51Appraisal Year Average 1977: US$1.00 5 Rs. 11.5Irstervening Years Average 1978-04 US$1.00 - Rs. 9.66Completion Year Average 1995: US$1.00 = Rs. 12.50

Follow-up Project: None

1/ Specializations represented: A = Agricultural 3/ Trend: 1 Improving9 a Engineer 2 * StationaryC = Financial Analyst 3 DeterioratingD - EconomistE = Agr. Industry Spec. 41 Types of Problems: F = FinancialF = Loan Officer N - Managerial

T = Technical21 Performance Rating: 1 = Problem Free or Minor Probleas P = Political

2 5 tlderate Probleas 0 5 Other3 - Major Probleas

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INDIA



Evaluation Summary

Introduction

The Second Foodgrain Storage Project followed the India WheatStorage Project (Credit 267-IN) which was implemented between 19W and 1979.The Second Project, the subject of the PCR, was intended to finance a fouryear grain storage public sector investment project. Total project cost,estimated at US$215.5 million, was to be supported with an IDA Credit ofUS$107 million. At Credit closing, US$104.5 million was disbursed and US$2.5million cancelled. The credit was closed in February 1986, four years behindschedule.

Project Objectives and Rationale

The project int-nded to support India's foodgrain policy at the timeof appraisal in 1977. There were three major policy objectives: (a) self-sufficiency in production; (b) price stability for consumers; and (c)equitable foodgrain distribution. To support these objectives, IDA funds wereintended to increase FCI's storage capacity and reduce storage losses at atime when FCI was handling up to one-third of domestic foodgrain marketing and3.5 to 7.5 million tons of grain imports annually. Since about half of FCIstorage was at rented facilities and often under unacceptable conditions inthe open under polyethyline cover, it was decided to have FCI invest in newstorage facilities with a target buffer stock of 12 million tons. The p:ojectcomprised: (i) construction of 3.5 million tons of foodgrain storageconsisting of 2.5 million tone bag, 1 million tons bulk, and 75,000 tons portsilos for grain loading and unloading; (ii) ancillary facilities for grainhandling and transport; and (iii) technical assistance for projectimplementation; operations research; and training of management and keytechnical staff.

The Bank accepted GOI target "without going into arguments about the12 million ton target" and agreed to finance both conventional and modernstorage facilities. The latter was expected to have a higher rate ofreturn. The alternative of private sector storage was not considered.

Project Implementation, Results and Sustainability

The project was implemented in eight instead of four years asplanned and investments were made only in conventional sagged godowns storagefacilities. In total, 3.5 million tons storage capacity was constructed while

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appraisal had foreseen 2.5 million tons godowns, pl. 1.0 millio;. tons bulkwarehouses and 75,000 tons silos. The ERR for the godown component wasrecalculated almost the same as appraised, i.e., 19.92 against 19.72,respectively, even though there was a cost overrun of 51x. However, despitethe increase of storage capacity, FCI's dependence on rented storage did notimprove in relative terms: it was about half at the beginning and rem2ined thesame at the end of the project. Hence the private sector invested at the samepace despite lack of government assistance.

Sustainability of the civil works constructed under the projectshould not be a problem since the godowns constructed are of simple structure;they are used intensively and are expected to be properly maintained.

Findings and Lessons

The project established the total storage capacity planned (3.5million tons), but all of this was the traditional, existing type; there wasno modernization compound (i.e., bulk warehouses and port silos) as agreedduring negotiations. It remains an unanswered question whether India and IDAshould have been more determined in modernizing storage facilities.Furthermore, the question of private sector storage support was neverconsidered as an alternative to FCI-owned storage facilities. In IDA's view,an important lesson is that the private sector would have beer more efficientfor the establishment of storage facilities and it would have been less costlyfor Government as far as administrative costs are concerned.

Today, there are again plans to invest in bulk storage facilities inIndia, albeit 10 years later.

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INDIA



Overview

General

1. The Project Completion Report (PCR) on the Second Foodgrain S.orageProject was prepared by the Food Corporation of India (FCI). This overview isintended to supplement FCI's review results with IDA's observations. Specialattention was given to points not fully covered by the PCR prepared by FCI(i.e., IDA performance, private sector alternative).

2. The PCR summarizes the implementation and results of the SecondFoodgrain Storage project and discusses alternative grain storage issues. Theproject followed the India Wheat Storage Project which was partially financedwith US$5 million each by Sweden and IDA (267-IN) between 1971 and 1979. Thistook twice the time estimated at appraisal and only half the number of siloswere constracted due to cost overrun. However, godowns (reduced from 10 to 9because of land acquisition problems) were completed ahead of schedule. ERRwas estimated at 15% as compared with 25% expected at appraisal.

3. The Second Foodgrain Storage had problems similar to those of theWheat Storage Project: it took eight instead of four years to implement theproject which also suffered from cost overrun problems. Furthermore, only thegodown component was executed, while bulk warehouses, port silos Aind the pilotmechanized grain procurement centers were not completed and consultants wereonly partially used. Notwithstanding the 'bove, the PCR prepared by FCIreports favorably on the project, in that it established 3.5 million tonsgodown storage capacity as compared to only 2.5 million tons proposed atappraisal. The ERR of this component was reestimated at 19.9%, similar to the19.7% estimated at appraisal. While this analysis correctly states the ERRper se it does not compare it with different investment storage types todetermine desirable or better storage. The PCR also describes the factorscontributing to time and cost overruns which were: (a) difficultie: in landacquisition, (b) delays in the execution of railway sidings; and (c) inabilityof some local contractors to perform work contracts satisfactorily. However,it does not convincingly explain why: (a) only conventional godowns wereconstructed under LCB procedure; (b) all items foreseen for ICB were notexecuted; (c) training funds were only used &t one-fourth the financeavailable; (d) consultants were used only in a small amount (one fifth); and(e) land acquisitions and construction problems occurred, similar to those ofthe first project, despite the lessons learned.

4. Total project costs were estimated at appraisal to be Rs 1,886million (US$215.5 million) to finance the corsLIuction of 3.57 million tons ofadditional public grain storage capacity--2.5 million tons of conventional

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godowns for grain stored in bags, 1.0 million tons of flat bulk warehouses,and 75,000 tons for port silos for handling imported grain. Furthermore,finance was provided for auxiliary facilities for grain handling andtransport, technical assistance, operations research studies and training ofkey staff. An IDA credit of US$107 million was expected to finance 50% of theproject cost, net of taxes and duties. Eventually, 3.5 million ton storagecapacity was constructed, but ali under conventional bagged godowns.Regarding the construction expenditures for godowns, t'"ere was a cost overrunof 51%, while total project cost as completed exceeded appraisal estimated by19%; US$2.5 million of the IDA credit was cancelled at Credit closing.

5. Project Objectives and Rationale. The project intended to supportIndia's foodgrain policy at the time of appraisal. There were three majorpolicy objectives: (a) self-sufficiency in production; (b) price stability forconsumers; and (c) equitable foodgrain distribution. Foodgrain prices wereregulated to: (a) ensure reasonable prices to producers; (b) procure a sizableportion of marketed foodgrains on behalf of GOI and State governments; (c)release foodgrains through the public distribution system primarily in urbanareas at below market prices by a ration card system; (d) fix officialpurchasing and distribution prices regardless of seasonal or locationalfactors; and (e) build up sizeable buffer stocks to protect consumers fromwide variations in production caused by irregular and untimely monsoons. FCIwas engaged in procuring foodgrains at over 2,500 market centers and wasoperating godowns at 1,700 locations throughout India. It was handling 10 to35% of foodgrains marketed and, in addition, it handled 3.5 to 7.5 milliontons of grain imports per annum. Since about half of FCI storage was atrented facilities and often at unacceptable conditions in the open underpolyethylene cover, GOI had decided to have FCI invest in new storage facili-ties. Actually, a 12 million tons buffer stock was the declared target.

6. The Bank appraisal accepted GOI targets "without going into thearguments about the 12 million ton figure." The project was to financeconventional and modern storage facilities. The latter were expected to havea higher rate of return. The alternative of developing competitive commercialdistribution systems and private sector storage facilities for new investmentswas never seriously considered.

7. Project Preparation and Implementation. During preparation IDAclearly wanted to be involved in bulk type storage being considered moreefficient, but there were problems in discussing storage policy with GOI whichdid not want to discuss its grain storage policy, which it considered asovereign, national matter involving security considerations. While IDAwanted to "increase the bulk storage capacity" and "make a beginning indeveloping an integrated system for handling, movement and storage offoodgrains," GOI was primarily interested to quickly enlarge its storagecapacity through traditional storing methods, i.e., in godowns stored in bagswhich were more efficient than storing in the open but less efficient tianbulk storage.

8. The agreed project as negotiated, howe.er, included all threecomponents: godowns storing in bags, flat bulk warehouses, and port silos.Soon after credit signature, preparations were in place to implement all threecomponents. The credit was signed January 6, .978 and started off satisfac-torily although there were problen, .ith appointing staff to implement he

x

project. Initially, there were no land acquisitions problems. Constructionof conventional godowns, for which retroactive financing was provided, startedwell. However, the appointment of consultants for bulk warehouses and siloswas protracted and took place only in March of 1979, due to problems inselecting a qualified firm because GOI wished to retain the lowest bidder. InApril 1979, IDA staff rated this project "problem free" but with disbursementsfalling behind estimates. However, the positive evaluation droppeddramatically when a supervision mission visited the project in September1979. The main issue was the project period since th? implementationconsultants had declared that project implementation would require eightinstead of four years, mainlv because of bulk warehouse and silo construc-tion. IDA expressed concern about the time overrun and proposed modificationof the project without being specific, while FCI maintained that themodernizing components should still be implemented. It was only in early1980, after several reminders by IDA that GOI somewhat reluctantly proposedthat the flat bulk warehousing and silo component be reduced. Thus IDA failedin its estimates of tne project implementation period and appears to be alsoresponsible for the eventual deletion of the technically innovativecomponents, even though the project actually stretched over eight yearsanyway.

9. Bank mission suggested retaining the above components on a pilotscale with the establishment of two bulk storage facilities of 30,000 tonseach to test such facilities under Indian conditions. But this was apparentlynever done. From FCI's PCR it appears that the bulk and silo storagecomponents were finally dropped after a "high level railway team" visitedEurope, USA and Canada in late 1980. The railway team advised after itsoverseas trip against modified flat bed wagons fitted with paper retentiondoors and proposed instead special bulk grain wagons. However, since suchspecial wagons were planned to become available after the project investmentperiod this component was dropped. IDA's repeated suggestion for furtherstudy and pilot investments did not result in action. It appears thatopposition to labor displacement in the case of bulk storage was also a factorfor GOI's decision. Ironic&lly, in April 1984 FCI approached IDA forfinancial assistance to construct "four to five million tons of silo andhorizontal bulk stores."

10. In general, Bank supervision was satisfactory, concentrating on LCBtender evaluation for the godown component and urging FCI to make all effortsin limiting further construction delays. There were no major difficulties incovenant fulfillment as far as FCI is concerned.

11. Summary and Conclusion. Unrelated to the project, IPdia had greatsuccess in increasing its food grain production during the eight years ofproject implementation. The country became self-sufficient in this sector andpublic procurement increased from 59 million tons p.a. during 1976-80 to 83million tons p.a. during 1981-85. As discussed in detail in the PCR andreviewed in this overview all project investments were conventional baggodowns only, even though the Sixth Five Year Plan (1980-81/84-85) stated"emphasis has to be on efficient and socially relevant marketing techniquestaking advantage of the economics of bulk handling, procurement anddistribution system."

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12. All this took place in an atmosphere of rapid production and storageincrease of food grains overall. While India's public sector (covered)storage capacity was 105 million tons at the time of appraisal (representing57Z of total grain sterage capacity) this had doubled to 20.8 million tons bymid-1985. Nevertheless, FCI dependence on hired storage capacity had notchanged: it was about half at the beginning and at the end of the Project.Hence the private sector invested at the same pace despite lack of governmentassistance. This raises a policy question: should India not leave ownershipand management of grain storage more to the private sector. A weLl-plannedline of credit could induce the private sector to invest more in storagefacilities which FCI could lease without having the financial risk ofutilizing such facilities. IDA believes that the private sector would be moreflexible using such facilities for storing products other than grains aswell.

13. FCI's PCR concludes that delays were partly due to the fact that"the Project did not receive the right order of priority." Research studieswere undertaken regarding "storage and transportation of grain in bulk inrelation to the existing bag handling system." What actually stopped anyinvestments in bulk storage appears to have been IDA's endeavor to execute theproject on time and the railway team's technical reservations after their tripto western countries. These reservations, however, were never specified.

14. While the Bank at the time of appraisal was convinced of theeconomic advantages of modern bulk and silo storage, it was quick in droppingthis component when problems of timeliness occurred. Since the feasibility ofthese components was not even tested during the project, one must concludethat the project contributed very little to modernizing grain storage andreducing its cost. Nevertheless, it made a sizeable contribution toincreasing India's storage capacity. FCI's overall assessment of the projectworth was as follows:

"Although the bulk storage components relating to flat bulkwarehouses, port grain silos, transport equipment, etc. were deletedfrom the project content, the experience gained, particularly inrespect of initial designs and grain flow diagrams and proposedsystems developed by the consultants for port silos and for certaincost efficient models of flat bulk warehouses, is expected to beuseful in the implementation of future projects with suchinstallations."

Eventually, India is likely to make appropriate investments in modern bulkstorage facilities. Actually, it approached the Bank in 1984, inquiring forpossible financial assistance. The ongoing Seventh Plan includes provision ofbulk storage installations and bulk movement of grain. It is, therefore,unfortunate that the bulk storage component, included in the 1977 negotiatedproject, was eventually dropped. Apparently, this type of investment is nowreconsidered by GOI, after 10 years.

INDIA



Introduction

This document presents the project completion report (PCR) on theSecond Foodgrain Storage Project undertaken with the financial assistance fromthe World Bank/IDA by the Government of India under Phase II program. Creditagreement was signed by the IDA/GOI on January 6, 1978 and FCI was to imple-ment the total project under the overall responsibility of the Ministry ofAgriculture and Irrigation. The general guidelines for preparing projectcompletion report (including sector guidelines) of the World Bank haveprovided the framework for this document. However, in view of the distinctnature uf storage project viz. construction of godowns for scientific storageof foodgrains unlike production or manufacturing project some deviations fromthe general guidelines have been made in the presentation of PCR.

The scheme of presentation is as follows:

In Part I general perspective on food situation during the projectperiod i.e. from 1977 to 1986 is presented.

Part II covers specific issues and aspects of project implementationin terms of physical and financial performance over the period includingdepartures made from the original project proposal.

Part III explains the contribution made by the project to Indianeconomy in general and FCI in particular. The rate of return as originallyestimated and as expected from actual investment has been computed.

Part IV brings out the experience gained from the execution of sucha project.

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I. FOOD SECURITY PERSPECTIVE

Food Policy Objectives

1.1 Food policy objectives of Government of India include:

(a) to ensure that the producers get reasonable prices and continue tohave adequate incentives for increasing the production;

(b) to ensure that consumer prices are stabilized and in parti:.ular theinterest of the low it.t-me consumers are safeguarded; and

(c) to build up adequate buffer stocks of foodgrains with a view toensure attaining of the twin objectives mentioned above/selling fromthe buffer stocks to meet the shortage conditions and high prices orby procuring for the buffer stock to support falling prices.

These objectives, enunciated during the Fourth Plan period continue to be thefocal points for the management of foodgrains by the Government of India.These objectives have been part of the development and welfare strategy of theGovernment of India. Break-through in agricultural production as a result ofGreen Revolution in late sixties could not have been sustained without provid-ing effectively market and price assurance to farmers. Over the last twodecades through periods of deficits and occasional surpluses, the FCI has con-tinued its effqrts in fulfilling the food policy objectives of providingeffective price support to farmers, distribution of foodgrains at reasonableprices and in achieving the target level of buffer stocks. The FCI throughits main operations of procurement, transportation, storage and distributionof foodgrains has contributed significantly in transforming the food supplymanagement from the earlier drought/shortage prone supply to that ef a stablefood security system. Adequacy, stability and accessibility of foodgrainshave been achieved to a large extent as explained in succeeding paras.

Plan Priorities

1.2 Growth of Indian economy is highly dependent on the performance ofagricultural sector. Objectives in the Fifth and Sixth Five Year Plans of theGovernment of India basically relate to the central theme of improving thequality of life by way of bringing the people above the poverty line throughincreased employment, agricultural and industrial growth, etc. The SeventhFive Year Plan has laid emphasis on 'Food, Work and Productivity' as the basicstrategy for the perspective plan of 15 years ending 2000 AD. Attaining theseobjectives involves implementation of agriculture-oriented developmentstrategy.

1.3 During the Sixth Five Year Plan (1980-81/84-85) implementation offood policy has been assigned a higher priority as would be evident from theextracts reproduced below from the Plan Frame-work approved by the NationalDevelopment Council:

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"Public distribution of commodities like foodgrains will haveto play a major role in ensuring supplies of these commoditiesto consumers at reasonable prices. Likewise farmers will haveto be provided with remunerative prices by paying dueattention to their cost structure, to ensure that they haveadequate incentive to produce more particularly foodgrains,pulses and oilseeds. It further suggested maintenance ofbuffer stock to be absolutely essential in order to minimizethe impact of weather fluctuations on prices of foodgrains.As such the public distribution system will be so developedthat it will hereafter remain a stable and permanent featureof the Government's strategy to control prices and to achieveequitable distribution. Towards this end, emphasis has to beon efficient and socially relevant marketing techniques takingadvantages of the economics of bulk handling, procurement anddistribution system."

1.4 Foodgrains constitute a major share of agricultural production.Problems of food production, its storage and movement across the country needto be viewed on a wider convass specially because of spatial and priceimbalances in the demand vis-a-vis supply of foodgrains. These imbalances getaggravated due to natural factors like drought, floods and famines in differ-ent parts of the country apart from inadequate (occasionally excess) rainfallat crucial times of growth of foodgrain crops in the main foodgrain producingareas. This affects the income levels of the farming sector adversely. Theagricultural sector has, therefore, continued to receive higher priority inthe natural plan objectives since inception of planning era from 1950-51.There has been almost three-fold increase in the foodgrain production in thelast three decades.

Assurance of Food Secutity

1.5 During the ven year period from 1977-78, i.e., from the start ofSecond Foodgrain Storage Project in 1977-78, there has been continuousimprovement in all fronts of food management despite unprecedent droughtwitnessed during 1979-80 accross the country. With adequate inventory offoodgrain stocks with public agencies, adequate food security is assured. Allthe three aspects of food security system viz adequacy, stability andaccessibility have been attained to a large extent. Brief account on each ofthese aspects is presented below:

Adequacy

1.6 Growth Rates. Attainment of adequacy is reflected by the tempo ofGreen Revolution sustained by the country by registering growth rates ofproduction of wheat, rice and total foodgrains at a fairly high orderspecially in wheat as shown below:

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Compound Crowth Rates of Production of Foodgrains

(in 2 P.&.)

Crop During 1967-68 to 1983-84

Wheat 5.77Rice 2.27Total cereals 2.87Total pulses 0.35Total foodgrains 2.61

Source: Annexure-G-I for production of foodgrains in India andAnnexure-G-II for details on growth rates.

Among various programs for increasing production, effective market and priceassurance by public agencies has been an important element in attaining suchimpressive growth rates.

1.7 Market Assurance. The degree of market and price assurance providedby FCI and other public agencies is brought out in the following data:

Marketing years1982-83 1983-84 1984-85 1985-86 1986-87

WheatProcurement as Xof market arrivals:Punjab 99 98 99 98 97Haryana 97 99 96

Crop years1980-81 1981-8T2 1982-83 1983-84 1984-85

RiceProcurement as Zof production:Punjap 78 82 78 72 85Haryana - - 56 49 72

Extensive purchases through 6,800 purchase centers have provided effectivemarket nad price assurance to farmers. This effort has sustained increase inthe income of farmers and is providing the required impetus for higherinvestment in agriculture and improved production and productivity.

1.8 Self Sufficiency. In the past two decades, indigenous procurementof foodgrain has been increasing at encouraging pace as can be seen from thetable below:

FOODGRAIN(In million tons)

Total Total Total procurement asYears (five years) procurement distribution Z of distribution

1961-65 7.23 32.28 22.401966-70 28.37 55.71 50.921971-75 40.07 51.76 77.411976-80 58.89 57.74 101.991981-85 82.79 71.40 115.92

Source: Annexure-G-III for year-wise details.

1.9 The perspective picture of the levels of procurement anddistribution by all public agencies including FCI given above brings out thatthe procurement has substantially increased and has in fact been much inexcess of the distribution. It is in this context that India has emerged asself sufficient in foodgrain requirement. In normal years, public distrihu-tion aystem requirements are met by indigenous procurement. It is only in theyear of drought or abnormally low production that the supplies are drawn fromthe buffer reserves held by the FCI. By mid-1985 surplus stocks over andabove the target level of buffer and operational stocks had emerged. Theextent of surplus was estimated to be around 7.0 million tons mainly in theform of wheat.

1.10 Stability has been ensured as would be revealed by the pattern ofproduction in foodgrains, stocks levels with the public agencies, per capitanet availability of cereals, levels of public distr:bution and the indexnumbers of wholesale price of foodgrains.

1.11 During the last one-and-a-half decade though the gross area undercereal crops has not increased substantially yet there has been consistentincrease in the production which is contributed by increased productivity(yield) as a result of expansion in irrigated areas apart from application ofbetter farm management techniques and the motivation provided by the publicagencies through continued market and price assurance for wheat/paddy andrice.

1.12 The following data is relevant:

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Gross area Gross(million production Yield Area irrigated

Year hectares) (mln tons) (kg/hectare) (mln hectares)

Total Foodgrains1970-71 124.32 108.40 872 N.A.1975-76 128.18 121.03 944 34.09 (26.5)1980-81 126.67 129.59 1,023 37.61 (29.4)1983-84 130.35 152.37 1,163 -1984-85 126.67 145.54 1,154 -

1985-86 N.A. 150.47 N.A. -

Total Cereals1970-71 101.78 96.60 949 N.A.1975-76 103.73 108.00 1,041 32.14 (31.0)1980-81 104.21 118.96 1,142 35.59 (32.8)1983-84 106.94 139.48 1,299 -1984-85 103.94 133.58 1,289 -

1985-86 N.A. 137.51 N.A. -

Wheat1970-71 18.24 23.83 1,307 N.A.1975-76 20.45 28.85 1,410 12.56 (61.8)1980-81 22.28 36.31 1,630 15.52 (69.7)1983-84 24.40 45.48 1,851 -1984-85 23.61 44.07 1,873 -

1985-86 N.A. 46.88 N.A. -

Rice1970-71 37.59 42.23 1,123 N.A.1975-76 39.48 48.74 1,235 15.22 (38.7)1980-81 40.15 53.63 1,336 16.34 (40.5)1983-84 40.99 60.10 1,458 -1984-85 41.16 58.34 1,425 -

1985-86 41.16 58.34 1,425 -

Note: Figures in parenthesis represent the percentage irrigated area tototal area under the crop.

1.13 This phenomenon is partially explained by the fact that assuredirrigation facilities are concentrated in Stttes like Punjab, Haryana, WesternU.P. where the irrigated area has continuousLy been increasing both for Rabiand Kharif crops which helps in stabilizing the production to new levels.All-India production is, therefore, less prone to fluctuating productionlevels observed in some other States. In effect, stability in the productionlevels in Punjab, Haryana and U.P. is imparting greater stability in All-Indiaproduction.

1.14 Increasing production levels in wheat and rice in Punjab, Haryanaand U.P. have enabled public agencies to concentrate their procurement effortsmainly in these states. This is indirectly contributing to stability inprocurement also at higher levels.

1.15 Attainment of foodgrain production level of around 150 million tonsduring 1983-84/1985-86 is indicative of the level around which the foodgrainproduction may continue before shifting to new peak after few years. Produc-tion data over the last three decades reveals that foodgrain production levelcontinues around a particular level over a few years (6-7) before it shifts toa new level. The following data will explain this pattern:

(Million tons)

Gross production of foodgrainYear Minimum Maximum Average

1960-61/66-67 72 89 801967-68/74-75 94 108 1001975-76/82-83 110 133 1241983-84/85-86 146 152 149

1.16 Price Stability. Apart from relative stability in production, pricestability is also essential. This is also achieved as would be revealed bythe wholesale price index numbers particularly of wheat and rice--the twoprincipal cereals handled by the FCI.

INDEX NUMBERS OF WHOLESALE PRICES(Base year 1970-71 = 100)

AllAnnual average commodities Foodgrain Wheat Rice

1977 185.4 167.2 155.8 163.61985 353.0 289.4 218.8 281.6

Change in 1985 over 1970-71 +253.0 +189.4 +118.8 +181.6

1.17 It would be observed that increase in price levels of wheat and ricehas been less pronounced compared to total foodgrain or all commodities duringthe last one-and-a-half decade period. Likewise the prices of wheat and ricehave witnessed greater stability in the last one decade. Foodgrains being

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important component of wage-goods, relative stability in the prices of wheatand rice has had restraining impact on general inflationary tendencies in theeconomy.

1.18 Inflationary conditions adversely affect the purchasing power of theweaker sections. To protect their interests, the Government of India as awelfare strategy fixes issue prices below the economic cost and meets thedifference in the form of consumers subsidy. Issues at concessional or subsi-dized prices have enhanced the accessibility of the poorer sections. Adequacyof stocks with public agencies has enabled continued access to the poorersections at reasonable and fixed prices, e.g., during 1980 and 1981 post-drought years.

1.19 Though the procurement prices of foodgrains have continued to beincreased every year, the central issue prices of wheat and rice for thesupplies through public distribution system on the other hand have had longerspells of stability. The following data is relevant:

GOVERNMENT OF INDIA ISSUE PRICES OF WHEAT AND RICE(Rs per qtl)

Wheat (all varieties)

Period ForFrom To PDS /a RFM /b

04/15/74 11/30/78 125 12512/01/78 03/31/81 130 13004/01/81 07/31/82 145 14508/01/82 04/14/83 160 16004/15/83 08/09/84 172 20808/10/84 01/31/86 172 17202/01/86 03/31/86 190 19004/01/86 07/15:86 190 22007/16/86 190 205

Rice Varieties

CoarseFrom To (Common) Fine Superfine

11/07/75 10/24/79 135 162 17210/25/79 12/31/80 150 162 17201/01/81 09/30/81 165 177 19210/01/81 09/30/82 175 187 20210/01/82 01/15/84 188 200 21501/16/84 10/09/85 208 220 23510/10/85 01/31/86 217 229 24402/01/86 09/30/86 231 243 25810/01/86 onwards 239 251 266

/a PDS: Public Distribution System7b RFM: Roller Flour Mills

1.20 Stocks. Foodgrain stocks with all Government agencies on selecteddates are given below:

(Million tons)

As on Wheat Rice Total

07/01/75 4.2 1.6 6.007/01/76 12.0 5.1 17.707/01/81 7.1 5.8 13.707/01/83 13*0 3.8 17.007/01/85 20.7 7.8 28.707/01/86 19.2 9.5 28.8

1.21 The net accretion in foodgrains stocks held by Government agenciesduring the two year period from July 1983 to July 1985 was about 12.0 milliontons, taking the actual stocks to a record level of about 29.0 million tons bymid-1985 which was in excess of target operational and buffer stocks (21.4million tons) by over 7.0 million tons, mainly in the form of wheat. Comfort-able stock position has been achieved by increased procurement over and abovethe distribution requirements. This record level of stocks has provided therequired stability in managing the food requirements of the country in thelong run. Moreover, FCI with effective management of surpluses and deficitsin different states having divergent food habits has been able to develop anintegrated national approach in tackling the food problem.

Accessibility

1.22 Accessibility of stocks is ensured through !e operations of thepublic distribution system in the form of f rmal/informal rationing system allover India. The objectives of distribution include adequate supply of food-grains in different parts of the country specially with a view to supplementthe consumption levels of low income segment of the population and to keep theopen market prices under check. Though the supplies under the public distri-bution system are of supplemental nature, these are made at concessional orsubsidized prices as a welfare measure to improve the diet and calorie intakeof poorer sections having low purchasing power.

Role of Food Corporation of India (FCI)

1.23 Procurement, storage and public distribution systems are essentialingredients of the overall national food security system in India. Unlessthese are fully developed, the delivery system cannot be made effective,efficient and economical. This task is, though, a joint responsibility of theCentral and State Governments, the role of Food Corporation of India (FCI) hasbeen vital. FCI being the national agency responsible to execute the policy

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of the Central Government has expanded its organizational network bothgeographically and functionally.

1.24 FCI today operates through a country-wide network with its CorporateOffice at New Delhi, 4 Zonal Offices for South (at Madras), North (at NewDelhi), West (at Bombay) and East (at Calcutta), 19 Regional O.fices coveringall the 22 Indian States and 7 Union Territories, 4 Port Operation Offices,145 District Offices, about 2,000 Storage centers and 138 quality controllaboratories. The authcrized capital of the FCI was raised to Rs 10,000 mil-lion duriag 1985-86 (from 4,500 million until 1984-85). The paid up capitalby the Government of India is Rs 7,440 million against Rs 3,075 million at theclose of March 1985. For the purpose of construction of godowns, the capitalamount required is met by the Government under the centrally sponsored planschemes. For its day-to-day operations in foodgrains, it is allowed creditfacilities by a consortium of nationalized banks. The Government of Indiagives surety against the margin money requirements and the hypothecation ofstocks with the banks. Within the cash credit limits, the FCI withdraws andutilizes the money from the banks as per its requirements.

PDS Network

1.25 The public distribution system has been enlarged and expandedconsiderably in the last two decades and today covers about 3.22 lakh FairPrice Shops. The prevalent system envisages supply of foodgrains periodically(weekly or fortnightly) of specified quantities at subsidized issue prices onthe basis of ration cards issued to families. Fair Price Shops get theirsupplies from the wholesale agent who in turn gets the supplies from FCIgodowns. The range of off-take to total supplies from Government stocks hasgone up to 12-16 million tons/per annum in the eighties as shown below:

No. of FPs Total distributionYears ('000) (million tons)

1961 48 3.981971 121 7.821974 222 10.791977 242 11.741980 276 14.991983 297 16.211984 311 13.341985 322 14.07

1.26 Such a phenomenal increase in the expansion of public distributionsystem has been facilitated inter alia by the development of storage capacityunder the World Bank aided project and other storage construction programslaunched by the Government ot India/FCI. Construction of storage godewns and

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their operations in various deficit states has enabled the FCI to positionoperational and buffer stock of foodgrains nearer the consumption areas,

1.27 In addition to supplies under PDS, the foodgrains are issued atstill lower rates under poverty alleviation program of the Government of Indiasuch as Food for Work Program now replaced by National Rural EmploymentProgramme (NREP) (October 1980), Rural Landless Employment Guarantee Programme(RLEGP), Employment Guarantee Scheme (EGS). These schemes have the objectivesof creating durable community assets in the rural %.conomy, provide directemployment to the poor to augment their income level and raising the nutri-tional standards. Government of India in December 1985 introduced foodgraindistribution program in Integrated Tribal Development Project areas. Underthis scheme, issues in ITDP areas are effected at specially subsidizedprices. For wheat, the issue price is Rs 125/qtl as compared to Rs 190/qtlfor normal PDS. For common variety of rice, these respective prices, atpresent, are Rs 160 and Rs 239.

1.28 Issues of foodgrains under these schemes are given below:

('000 tons)

Year Commodity NREP RLEGP ITDP

1983 Wheat 115Rice 76 -

1984 Wheat 84 19 -

Rice 80 6 -

1985 Wheat 178 54 18Rice 70 9 28

1986 Wheat 1,162 290 636(Jan-Sept) Rice 121 43 615

1.29 As a matter of fact economic accessibility to the poorer sections isensured now under such programs by giving foodgrains at rates lower than PDSrates. Releases under these schemes have also indirect influence on openmarket prices. To tie over the problems of managing the surplus stocks theGovernment of India has also taken various liberal decisions including AuctionSales/Tender Sale initially and now, free sale of wheat by FCI at fixedprices, issue of unrestricted wheat to Kuller Flour Mills, enhanced alloca-tions under PDS, delicensing of Roller Flour Mills, reduction in issue priceto Roller Flour Mills, issue of wheat to cardholders under PDS without anylimit on quantity, etc. All these measures have had salutory impact on openmarket prices rhich makes easy accessibility to grain by the poor.

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1.30 Increased Transportation. Inter and intra-regional transfer ofstocks from surplus areas is pre-requisite to ensure the accessibility offoodgrain stocks to consumers. Positioning of stocks in all the regionsadequate for the operational needs taking into consideration the time laginvolved in transportation lead is a critical operacion.

1.31 FCI operates about 2,000 storage godowns spread all over thecountry. FCI through continuous monitoring and coordination with Railwaysformulates monthly movement plan to organize despatches of stocks to differentregions according to operational and buffer needs. FCI constantly monitorstransportation of stocks from the surplus areas of Punjab, Haryana and WesternU.P. in the North Zone where major part of surplus stocks (wheat and rice) isconcentrated. Similarly, Andhra Pradesh in the South Zone has surplus inrice. Movement over long distances by rail is undertaken by the Corporation,with the primary objectives to:

(a) clear excess stocks from surplus States in the North Zone; and

(b) transport adequate stocks to deficit States in East, West aad SouthZones matching operational and buffer levels.

1.32 Short distance movement initially from the mandis to depot(s) andthereafter to the rail-head and similar operations on the receiving end aredone by road. However, major transportation is by rail. The average distanceof movement in 1985-86 was around 1,533 km. The magnitude of foodgrain stockstransported by rail have increased substantially as would be seen from thefollowing:

(Million tons)

Quantity moved by rail for FCIYear Foodgrain Foodgrain and sugar

1980-81 11.6 13.201981-82 14.0 15.101982-83 15.4 16.701983-84 15.1 16.341984-85 12.9 14.101985-86 16.4 18.80

Storage

1.33 The programs of increasing production and expanding distributionalso requires a matching growth of infrastructures in the form of standardstorage accommodation. In order to ensure stocking of foodgrains all over thecountry in optimum manner, storage construction program has been a majoractivity of the FCI continuously over the years. Accordingly, under thethree-tier storage strategy of Government of India, FCI and Central Ware-

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housing Corporation have been providing storage accommodation at centers ofAll-India importance, the State Warehousing Corporations and the State Govern-ment(s) at centers of State importari-e and at District levels and cooperativesat primary and marketing society level which are located at vil.age and/orTaluka levels.

1.34 The broad approach is to build additional scientific storagecapacity and to reduce dependence on hired capacity which is not up to thedesired standard as also to reduce dependence on the capacity under Cover andPlinth (CAP).

1.35 There are three agencies in the public sector which are engaged inbuilding large scale storage/warehousing capacity viz Food Corporation ofIndia (FCI), Central Warehousing Corporation (CWC) and 16 State WarehousingCorporations (SWCs). Over a period of time, sizeable scientific storage/warehousing capacity has been developed by these public agencies and they areimplementing plans to increase it further. While the capacity available withFCI is used for storage of foodgrains that with CWC and SWCs is used forstorage of foodgrains as also for general warehousing.

1.36 Since the Corporation did not have adequate scientific storageaccommodation in mid-seventies, this project was conceived in order to availthe financial assistance of the World Bank, for bridging up the then identi-fied storage gap of 7 to 10 million tons. The project was expected to replacethe then CAP and rented accommodation (unscientific) with scientific bag/bulkwarehouse storage capacity.

1.37 Increased levels of indigenous procurement over and above thedistribution requirement have been resulting in net accretion to stocksoccasionally. FCI's storage capability had, therefore, been under constantpressure. Substantial net accretion of stocks during 1983-85 period (by 12million tons) necessitated augmentation of storage capacity on highpriority. Apart from the ongoing construction programs under the World Bank,etc., crash program was launched during 1984-85/1985-86 for providingadditional storage capacity of 2.42 million tons on priority within 15 monthsat a capital cost of Rs 90 crores.

1.38 Cognizant of substantial accretions to foodgrain stocks, the ongoingefforts to increase the storage capacity were stepped up during 1984-85. As aresult, the FCI, CWC and SWCs together constructed a storage capacity of 11.72lakh tons for foodgrains during 1984-85 which was significantly larger than7.09 lakh tons constructed by them during 1983-84. Notwithstanding theseadditions, the total storage capacity available as on July 1, 1985 came underconsiderable strain and proved insufficient to hold the foodgrain stocks as onthat date. This is because the stock level rose much more from 22.8 milliontons as on July 1, 1984 to 28.7 million tons as on July 1, 1985. Arrangementswere, therefore, made to accommodate over 7 million tons of foodgrains in theopen/CAP. Moreover to augment the storage construction capability, FCIinvolved for the first time simultaneously a number of other engineeringconstruction agencies of the public sector to accelerate the pace of construc-tion and achieve the targetted capacity.

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1.39 The growth in the storage capacity both from owned and hired sincethe commencement of this project has been as follows:

(In million tons)

Covered CAP/Open Covered andFinancial Owned Hired FCI owned FCI hired openyear end capacity capacity /a capacity capacity Grand total

1977-78 6.457 7.100 1.615 5.611 20.7841978-79 7.239 8.225 1.289 5.303 22.0581980-81 7.757 8.012 1.238 3.783 20.7901982-83 8.206 7.866 1.112 0.957 18.1431983-84 8.545 8.551 1.056 0.472 18.6251984-85 9.174 10.517 0.798 1.779 22.269L985-86 10.366 10.429 1.332 2.341 24.469'986-87 10.763 10.589 1.666 2.128 25.157

(August 31, 1986)

/a From CWC/SWCs/State Government(s)/Pvt. parties including ARDC Scheme.

Source: Annexure-G-X for details.

1.40 It would be observed that the dependence on the hired storagecapacity (both Covered and Open) has continued to be almost equal to the ownedcapacity. Hired capacities specially from private parties are not necessarilyscientific and optimally located. To construct owned scientific capacity asmuch as possible, special efforts were made to complete construction ofgodowns during the last four years which resulted in augmentation by about5 million tons including 2.37 million tons owned capacity as follows:

Construction of FCI ownedstorage capacity

Year ('000 tons) Z Increase

1982-83 3381983-84 442 311984-85 550 241985-86 1,040 89

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1.41 Increasing stock levels have also taken the utilization percentageof storage capacity beyond the normal level of 75Z as indicated below:

Year Capacity utilization (X)

1980-81 531983-84 651984-85 771985-86 80

Performance Highlights of FCI

1.42 Data relating to some important indicators of performance are givenbelow:

1977-78 1980-81 1984-85 1985-86

Equity capital (Rs crores)Authorized 450.00 450.00 450.00 1,000.00Paid-up 216.28 250.45 307.51 727.67

Reserves (Rs crores) 10.72 12.94 20.04 20.39Net worth (Rs crores) 227.00 263.39 327.55 748.06Capital employed (Rs crores) 2,359.82 1,998.20 5,210.95 5,250.80Working capital (Rs crores) 2,238.33 1,823.63 4,907.04 4,857.89Purchases:Quantity (Lakh tons) 129.89 132.67 188.72 211.22Value (Rs crores) 1,899.69 2,633.39 4,389.98 5,386.20

Sales:Quantity (Lakh tons) 151.62 165.88 144.57 220.40Value (Rs crores) 2,190.31 2,759.16 3,168.96 5,105.79

Turnover:Quantity (Lakh tons) 281.51 298.55 333.29 431.62Value (Rs crores) 4,090.00 5,392.55 7,558.94 10,491.99

Covered storage capacity(Lakh tons) 135.58 157.69 1,960.92 207.95

Rail transportation (Lakh tons) 129.00 189.05

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II. PROJECT IMPLEMENTATION

Original Project Content

2.1 The original scope of the project consisted of construction ofconventional bagged godowns for a capacity of 2.5 million tons, flat bulkwarehouses for a capacity of 1 million tons and port silos installations for acapacity of 0.075 million tons. The bagged godowns component of 2.5 milliontons included a capacity of 0.645 million tons completed earlier and picked upfor retroactive financing under the project. In physical terms, the baggedgodowns were proposed to be set up at 50 centers, flat bulk warehouses at 17centers and the silos installations at the two ports of Madras and Haldia.

2.2 The summary of the physical conteeit of the project is as follows:

No. of CapacityComponent centers (million tons)

1. Bagged godowns (completed and picked upfor retroactive financing) 87 0.645

2. Bagged godowns 50 1.855

3. Flat bulk warehouses 17 1.000

4. Port silos installations 2 0.075

Total 156 3.575

Start-up Period

2.3 At the time of Project Appraisal, it was envisaged that land wouldgradually become available at all the centers. The implementation scheduleprovided that land for the bagged godowns centers would become available byDecember 1978 and for the flat bulk warehouses by July 1979. This did not,however, happen in reality. Though land was readily available for somecenters and the construction of warehouses at these centers also commenced asper schedule, subsequent non-available and/or protracted acquisition of landat many centers had a telling impact on the Project Performance resulting ininevitable extension of the implementation period.

2.4 There was an initial delay to the extent of about 6 months in thesigning of Credit Agreement between the World Bank and the Government ofIndia. There was thus a corresponding extension in the date of commencementof the project from mid-July 1977 to the beginning of 1978.

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2.5 At the time of commencement of the project, works were undertakenonly at 11 centers for a capacity of 0.425 million tons where land was readilyavailable. The pace of implementation was seriously affected as land for thebalance of the centers did not become available as anticipated at the time ofappraisal. Even as late as in July 1980, land was available in full only inrespect of 31 bagged godown centers for a capacity of 1.168 million tons.

Revisions in the Scope of the Project Content

2.6 By this time, the agricultural pattern in the country had substan-tially changed, necessitating a review of the project content. The experiencegained by the FCI in organizing rail movements from the Northern to theEastern Region in large scale drought situation during 1979 and 1980 alsobrought out the need to identify new storage points.

2.7 In the meanwhile, the cost of essential construction materials hasalso been increasing steadily. The escalation in the prices of materials from1977 to 1981 has been to the extent of nearly 30%. For the remaining capacityof the bagged godowns yet to be tendered and awarded, further price escalationhad to be provided in view of the continuing rise in prices. Evidently, theestimated project outlay was considered inadequate to provide the totalstorage capacity orginally envisaged at appraisal.

2.8 A review of the project content relating to the construction of FlatBulk Warehouses was also considered necessary in the light of the latestdevelopments regarding provision of bulk grain wagons following the recommen-dations made by a high level Railway team after their overseas observationtour in 1980. As a result of this review, the provision made for flat bulkwarehouses was scaled down considerably and changes in the scope and locationof the Port Silos installations were made to meet the demands of the changedsituation prevalent at that time. To make up for the capacity of droppedcenters, the component of the conventional bagged godowns was increased from2.5 million tons to 2.708 million tons. Due to the difficulties experiencedin land acquisition and also keeping in view the need-based requirements ofstorage capacity as relevant to the situation prevailing at that time. certaincenters were either dropped or their capacity suitability altered and addi-tional centers were included. Fresh land acquisition proceedings had, there-fore, to be initiated at this late stage in respect of the new centers whichwere added to the project content.

2.9 The position of project content that emerged after the review ofApril 1981 was as follows:

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Capacity(million tons)

Conventional bagged godowns:Capacity covered under retroactive financing 0.645Land available and works in progress 1.168Capacity proposed to be augmented at certain centers 0.225New capacity added 0.670

Flat bulk warehouses 0.080Port silos installations 0.050

Total 2.838

2.10 The provisions made for setting up of Port Silos installations atMadras and Kandla with the modified design and scope and establishment of flatbulk warehouses on a reduced scale were critically examined both from finan-cial and technical considerations during a review of the project in November1981. While the silos installations were deleted from the project content forreasons of dwindling imports and due to limited scope for steady export pro-grams, the flat bulk warehouses were also deleted on the basis of the recom-mendations made by the high level Railway team regarding availability of unittrain bulk grain wagons. Along with these, the provisions made for ruralprocurement centers and road carriers were also deleted.

2.11 The scope of the project was now confined to construction ofconventional bagged godowns only. In order to make up for the shortfall incapacity that arose on account of deletion of capital intensive bulk storagecomponents, the capacity of bagged godowns had to be necessarily increased.

2.12 The changed scope of the project content after this review ofNovember 1981 was as follows:

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Capacity(million tons)

Capacity (picked up for retroactive financing) 0.645Capacity for which works were in progress 1.168Capacity for which land was available within thedepot complexes 0.560

Capacity for which land was yet to be acquired 0.600

Total 2.973

2.13 The capital outlay of the revised project worked out to Rs 1,900million. With the deletion of capital intensive works relating to Port Silosand Flat Bulk Warehouses from the project contents, the opportunity forclaiming 100% reimbursement for F/M components was lost. As the reimbursementfor civil works was limited to only 40%, it was evident that it would not bepossible to claim full reimbursement for the entire credit of US$107 mil-lion. The World Bank was, therefore, requested to disburse the reimbursementat 50X of the value of civil works retrospectively from the date of commence-ment of the project against the stipulated 40%.

2.14 The World Bank agreed to the request of higher rate of reimbursementon a condition that the vouchers relating to expenditure incurred received bythe Bank after September 1983 would only be eligible for reimbursement at 60%of the value of civil works. As it was not considered feasible to claim fullreimbursement even at this revised rate of disbursement, it was decided inearly 1984 to include 105 centers to cover additional construction to theextent of 0.610 million tons capacity. This resulted in a correspondingincrease in the capital outlay from Rs 1,900 to Rs 2,250 million.

Final Project Content

2.15 The final scope of the project was confined to the construction ofbagged godown at 275 centers for capacity of 3.526 million tons including 87centers picked up for retroactive financing. The capital outlay is estimatedto be of the order of Rs 2,250 million.

2.16 The summary of the final project content is as follows:

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No. of Capacitycenters (million tons)

Capacity picked up for retroactive financing 85 0.645

Capacity firmed up in 1983 and added within theoriginal outlay 83 2.271

Capacity added in 1984 with increased outlay 105 0.610

Total 3.526

Implementation Period - Schedule vs Actual

2.17 The major factor that contributed to the time over-run was non-availability and/or delayed acquisition of land at different stages of theproject implementation perict. In most of the cases where land was available,the construction was completed within a reasonable time frame.

2.18 The scope of the project. was firmed up in early 1983 and land forall the centers covered under the project was finally available only in June1983. The time taken to complete construction after this date up to theproject completion date of December 1985 was 30 months without considering theworks that are still in progress uider risk and cost arrangements. This iswithin the time of 36 months provided by the World Bank in the implementationschedule of the Project Appraisal Report.

2.19 The project was actually completed in December 1985 against thestipulated date of December 1981. The balance works in respect of certaincenters which were affected by delays on account of 'risk and cost' arrange-ments are still continuing and are expected to be completed in all respectsduring 1987-88.

Factors Contributing to Time and Cost Over-runs

Time over-run

2.20 The single major factor that largely contributed to the time over-run and consequent cost over-run has been the delay in land acquisition. Theother factors that could be identified in this regard are:

(a) delay in the execution of railway sidings; and

(b) risk and cost action taken in respect of contracts rescinded atcertain centers.

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2.21 Land. Non-availability and/or protracted acquisition of landinevitably pushed the project implementation into a period of a completelychanged agricultural situation in the country which brought out the need forrevisions of the project content for a rational investment decision. Theconstruction had necessarily to be phased out depending upon the availabilityof land resulting in extended implementation period.

2.22 Railway Sidings. Siding facility was proposed to be provided for 44centers under the project. In certain cases, delay in finalization of sidingplans by the Railways held up the commencement of works even after award ofcontracts for the godowns as the plinth level of the storage structures had tobe fixed with reference to the incoming rail level of the siding. In certainother cases, the rail levels indicated earlier by the Railways were subse-quently changed due to the modifications carried out in their yard premises.This resulted in increased quantum of work entailing more time for execution.

2.23 The extent of long and narrow stretches of land required for la-ringthe approach track to the siding from the take-off point to the boundary ofthe storage complex could not be computed without approved siding plansresulting in delayed acquisition.

2.24 As a matter of policy, the Railways started insisting that thesiding should have facilities for handling of a full rake within the storagecomplex. This meant identification and acquisition of a suitable piece ofland to accommodate a full rake which were difficult and time consuming.

2.25 Another policy introduced by the Railways related to the procurementof P-way materials by the private siding owners themselves. This posedproblems as there was considerable delay in the supply of rails by M/s SAIL.Though these instructions were subsequently withdrawn by the Railways, thedamage had been done by then. The time over-run and consequent cost over-runhad already taken place in the execution of siding works.

2.26 Risk and cost action resulting in protected execution of works. Inrespect of a few centers, contracts had to be terminated on account of poorperformance by the contractors and balance works carried out at the risk andcost of the defaulted contractors. This resulted in protracted execution ofworks even beyond the extended project completion date of December 1985.(Gudivada, Itarsi, Panvel, Patiala, Nabha and Wardha.)

2.27 The following factors also contributed to the time over-run:

(a) Initial delay in the commencement of the project. There was aninitial delay to the extent of about 6 months in the signing of theagreement between World Bank and Government of India. As workscould be taken up only after formal signing of agreement onJanuary 6, 1978 the date of the commencement of the project in July1977 as stipulated in the implementation schedule of the ProjectAppraisal Report could not be adhered to.

(b) Larger number of bagged godown centers in place of Port Silos andFlat Bulk Warehouses deleted from the scope. A larger number of

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bagged godown centers spread over many different locations had to beidentified and included in the revised scope of the project after itwas decided to delete the provisisions made for Port Silos and Flatbulk warehouses from the project content. Greater efforts in termsof project planning, supervision of execution and allocation ofresources were necessary in such works cf scattered nature ascompared to the capital intensive works of port silos and flat bulkwarehouses located in limited number of centers. Larger number ofcenters also contributed to the longer period of construction to acertain extent.

Cost Overrun

2.28 The cost overrun has occurred as a consequence of the time overrunthat had already taken place mainly due to non-availability of land at severalcenters as late as in December 1981 when the project was scheduled to becompleted. The other factors that contributed to the cost overrun were asfollows:

(a) Works had to be undertaken at increased number of centers to make upfor the shortfall arising out of dropping the bulk components fromthe scope of the project. This meant considerable time for prepara-tory works as the centers were also scattered in different parts.Besides this, the cost of works spread over many scattered centersworked out to be more than that which could have been obtained at aconcentrated place.

(b) The implementation schedule had to pass through periods of highprice rise from 1980-81 onwards and the provision of 7Z more towardsannual price rise at the time of project appraisal was extremelyinadequate to meet the situation.

(c) The flat rate provision of Rs 60/ton of storage towards Railwayssiding was unrealistically low. The cost increase in respect ofthis segment alone has been to the extent of a staggering 250%.

(d) The provision of Rs 20/ton of storage for roads and site developmentand Rs 23/ton for ancillary buildings was also very low.

(e) The 'risk and cost' action taken in respect of certain problemcenters resulted in unavoidable time and cost overruns.

Performance of the Executing Agencies/Materials Suppliers, etc.

2.29 The works covered under the project were shared by differentconstruction agencies besides FCI as per the following details:

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CapacityAgency No. of centers (million tons)

FCI 111 1.597CPWD 104 1.079CWC 32 0.748HPL 19 0.079EPI 9 0.023

Total 275 3.526

2.30 Of these, CPWD is a central organization and has been executingworks concerning food storage for a long time. CWC has also got experience inthis type of construction for quite some time. The other organizations arepublic sector construction agencies and were involved in the execution of foodstorage works for the first time.

2.31 The works were entrusted to these agencies on 'deposit basis'. Asthe World Bank guideline for tendering, etc. were strictly followed by all theexecuting agencies, no problem was encountered in the implementation stage andthe performance of each of these agencies was generally satisfactory.

2.32 However, sporadic shortages of essential construction materials likecement, steel, AC sheets and tubular trusses did affect the Projectperformance to a certain extent. Production constraints in the factories dueto power cuts, etc., and subsequent movement difficulties owing to non-availability of rail wagons affected the supply position of cement consider-ably which in turn had an adverse effect on the progress of works.

2.33 There was a considerable delay in the supply of AC sheets during1981-82 as the rate contract for a new term could not be finalized by theDGS&D in time.

2.34 A bulk order for supply of tubular trusses was placed on DGS&Dduring 1982. Almost all the contracts finalized by this Central PurchaseOrganization had to be terminated as no supplies were forthcoming in spite ofa very close follow-up with the suppliers largely due to a steep hike in steelprices. The godowns though completed could not be put to gainful use withoutthe trusses and related components.

2.35 The progress of siding works entrusted to the Railways on depositsbasis was also affected due to non-availability of rails. The Railways hadstipulated that P. Way materials such 4.s rails, sleepers and other fasteningsshould be procured by the siding owner and supplier to the Railways forincorporation in the work. Substantial time overrun occurred as rails werenot readily available with M/S. SAIL and their rolling program also gotdelayed considerably. This time overrun inevitably contributed to the costoverrun that was to take place subsequently.

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2.36 It could be that the factors that contributed to the delayed supplyof the above materials were beyond anybody's control. However, it is feltthat the Project did not receive the right order of priority it deserved inregard to release of materials. If a higher priority had been allocated bycentral organizations like Railway, SAIL, DGS&D, etc. in regard to executionof works and supply of materials to a need-based grain storage project of thismagnitude which was executed with financial assistance from the World Bank,the problems that were encountered later due to nonreceipt of materials attimes of requirement could certainly have been reduced if not eliminated. Tothis extent, the experience with these organizations was not satisfying.

Project Monitoring

2.37 The Project was subjected to a very close monitoring of its physicaland financial progress at regular intervals by the FCI management, the Depart-ment of Food (Ministry of Food and Civil Supplies) and the Department ofEconomic Affairs (Ministry of Finance). Periodical review meetings were alsoheld in the Projects Implementation Division with the field Engineers, problemareas were identified and appropriate remedial measures decided to avoidspillages in the schedules.

2.38 The progress of siding works was reviewed with the concernedEngineers at the Railway Board level and also with the respective Engineers atthe Zonal level.

2.39 The Projects performance was also reviewed by the World Bank ReviewMission which visited India for the purpose at frequent intervals. Theformats used for Information Reporting were suitably modified to have a moremeaningful and action-oriented review of progress of different components ofthe Project.

2.40 As a final scope of the Project content was confined to the con-struction of bagged godown only, several alternatives for claiming full reim-bursement of the scarce IDA aid of US$107 million were considered and placedbefore the World Bank for concurrence.

2.41 Such periodical reviews contributed substantially to the improvedpace of implementation of the Project and also resulted in higher rate ofreimbursement though to a limited extent.

Role of Consultants

2.42 In terms of the relevant provisions of the Credit agreement signedby the IDA and the Government of India, domestic consultants were appointed toassist FCI Engineers in the preparation of layout plans, designs, tender docu-ments, bid evaluation and to supervise construction of flat bulk warehousesand Port silos. The services of internationally recruited consultants forcertain man-months were also availed as provided in the Appraisal Report.

2.43 A substantial portion of planning and design work relating to Portsilos and some models of Flat bulk warehouses was also completed by the localconsultants with the help of their foreign counterparts. At this stage, the

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revision in the scope of the Project content was being considered seriously bythe FCI Management and the Department of Food due to the changed agriculturalsituation brought about by the factors such as bumper crops in the grainproducing states, difficulties in moving grains to drought affected states inthe Eastern Region and problems in land acquisition for several centers andalso on account of the continuing rise in prices contributing to the steadycost overrun of the project.

2.44 As the components relating to the flat bulk warehouses and Portsilos were finally deleted from the scope of the Project, the services of theconsultants were also discontinued. However, certain basic designs developedby them in respect of different models of flat bulk warehouses could always bemade use of as and when such installations are taken up for execution.

Research and Development, Operations Research and Training

2.45 As envisaged at the time of Project appraisal. onerations researchstudies were conducted to ascertain comparative costs and ben;-Fits ofreceiving, handling, storage and transportation of grain in bulk from inrelation to the existing bag handling system. A study report was alsocompleted in this regard.

2.46 It was also provided that designs would be developed for specialrail wagons for suggesting modifications to the existing wagons, etc. Inaccordance with these provisions, a high level Railway team had gone on anoverseas observation tour in 1980 to select and subsequently design the typeof grain wagons for use in this country, the team discounted the suggestionsmade for the use of modified flat bed wagons fitted with paper retention doorsand instead recommended special bulk grain wagons only for handling and move-ment of bulk grain. As the availability of the first unit train with suchspecial wagons was expected only towards the end of the plan period and thecomponents relating to flat bulk warehouses and Port silos were subsequentlydeleted from the scope of the Project content, these recommendations were notpursued further.

2.47 The provision made for both domestic and overseas training meantessentially for training experts in the operation and maintenance of flat bulkwarehouses and Port silos after such installations were completed as origi-nally envisaged as it was thought that FCI Engineers and Indian Engirneringservices had only limited experience in bulk grain handling systems. As thescope of the Project content was confined to the construction of baggedgodowns only consequent to the deletion of bulk storage components, the train-ing facilities provided at the time of Project appraisal were not availed.However, the overseas training availed by a team of middle level Managers ofthe Engineering and Quality Control disciplines in similar bulk storageinstallations of USA, Canada and Australia under the first Wheat StorageProject (Credit 267-IN) financed by the World Bank jointly with Sweden wasconsidered for reimbursement of expenditure under this Project.

2.48 Though the recommendations made in the operations research studyreport and by the high level Railway team were not pursued and the overseastraining facilities were not availed as provided mainly due to the deletion of

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the bulk storage components of the Project, it is felt that the studiesalready completed and the training availed under the Wheat Storage Project areexpected to be of immense use in our continuing efforts to create such bulkgrain handling facilities in the country in the near future.

III. ECONOMIC APPRAISAL

3.1 The project has contributed in a significant manner as has beenhighlighted in Part I, in managing the national food security system. Storagecapacity completed in Phase II has augmented substantially the capacity of FCIin expending the network of foodgrains. Some of the important benefits of theproject are:

(a) Storage capacity has been provided at 273 centers in the project.These centers have expanded the network of godowns and facilitatedprice support operations in surplus areas and distributioncapability in deficit areas. Physical positioning of stocks indeficit areas not only assessed requirement and adequateavailability of foodgrains but also confiLaned speculative priceincreases.

(b) Scientific storage capacity would help in reducing losses inevitablein sub-optimal type of storage in 'CAP'. Losses are estimated to becomparatively less by 2% in godowns. For 3 million tons foodgrainstocks which can be accommodated in capacity provided by theproject, the loss avoidance is estimated to be 60,000 MTs p.a.

(c) Scientific storage would enable better preservation, better qualityand avoidance of damage to foodgrains.

(d) Create more employment potential during construction and later inoperation.

3.2 Construction of storage capacity continues to be a priority projectin the VII Plan also. Addition made with the project, during the Vth and VIthPlan periods has given an impetus to storage construction program.

3.3 Economic Return. An attempt has been made to compute the Internalj Rate of Return (IRR) based on the actual cost of the project. Details are

discussed below:

Method. To compute the internal rate of return of the project, twoalternative situations have been assumed. If 3.526 million tonsstorage capacity was not constructed in the project period, giventhe level of stocks, inevitable foodgrain stocks would have beenstored in 'CAP' (Cover and Plinth) storage complex. Such analternative will have less initial capital costs, but very highoperational costs in view of their sub-optimal locations and higherpercentage of storage loss. With such an alternative situation of"without the project" is compared with the situation of providing

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3.526 million tons conventional godown capacity. This situation"with the project" would involve comparatively more capital costinitially and less operational costs and storage loss.

3.4 To determine the net advantage of the situation "with the project",net cost flows of 'Conventional godown complex' over the 'CAP complex' havebeen computed over the years and IRR determined.

3.5 This method is similar to the one adopted in FCI's original projectreport and the World Bank's Appraisal Report.

Capital Cost

(a) Project outlay for 3.526 million tons conventional godown capacityfor bag storage. Rs. 1,723.5 million (Actual)

Per ton cost - Rs 489

(b) Project outlay on railway siding with godown units having 2.038million tons capacity Rs 526.5 million (Actual)

Per ton cost - Rs 258

Total average capital cost per tonfor conventional godown with railwaysiding Rs 747

(c) Road topping/civil works are expected to cost similar amount forboth 'CAP' complex and a conventional godown. Hence in working outthe net IRR--these cost flows have been ignored.

(d) Similarly other maintenance costs for electrical works, etc. forboth CAP and conventional godowns are assumed to be almost thesame. Hence, the difference in cost flows have been ignored. Evenif one takes the exact cost flows, the overall impact on IRR wouldonly be negligible.

(e) Salvage value of the godown in the 25th year has been taken to beone-third of the original cost of Rs 747 per ton. The life assumedis 35 years and the salvage value at the end of 25th year estimatedat one-third would be reasonable, in view of land and railway sidingcomponents in the godown complex.

(f) As compared to Rs 747 per ton cost of conventional godown, thecapital cost estimated for 'CAP' complex is estimated to be Rs 100per ton. Hence the difference in capital cost of the twoalternative situations, i.e. 'with the project' and 'without theproject' has been computed.

Recurring Cost

(a) Operational costs. Operational and distribution costs per annum perton for 'CAP' and 'godown' complex are estimated to be Rs 171.20 andRs 82.06. The costs for 'CAP' are more than double on account of:

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sub-optimal locations requiring extra transportation cost, addi-tional transportation cost from the railway station to the 'CAP'complex ('godown' are provided with railway siding facilities andhence no such extra transportation cost); more deterioration ofgrains in the open, more expenditure on spraying, etc.

(b) Storage loss. Storage loss per annum for these two alternativesituations is assessed at 3% for CAP and 1% for godown. Foodgrainskept in 'CAP' are 'paddy' and 'wheat'. The average price for grainadopted is Rs 2,000 per ton.

3.6 Internal Rate of Return (IRR). Base on the above, IRR has beencomputed to be 19.9%. In the World Bank's Appraisal report, the IRR computedfor similar complex (Model A) is also around the same level of 19.7%. Theestimated IRR at the beginning of the project has in fact come to hold goodeven after the completion of the project. IRR of 19.9% can be considered asreasonably good.

IV. CONCLUSIONS

Project Performance EvaluationI w~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

4.1 The project with an estimated capital outlay of Rs 1,900 million andan implementation period of 4½ years from July 1977 to December 1981 wasactually completed in December 1985 with an expected capital outlay ofRs 2,250 million. The reasons for these time and cost overruns have beenbrought out in the write up under the head 'Project Implementation' of thisreport.

4.2 Despite these time and cost overruns which were beyond control underthe circumstances explained in the report, the Project has achieved its basicobjectives of providing needed grain storage facilities and has made a size-able contribution towards buffer stock holding capacity of foodgrains inkeeping with the policy of the Government of India.

4.3 Although the bulk storage components relating to flat bulk ware-houses, Port grain silos, transport equipment, etc. were deleted from theProject content, the experience gained, particularly in respect of the initialdesigns and grain flow diagrams and proposed systems developed by the consul-tants for port silos and for certain cost effective models of flat bulk ware-houses, is expected to be useful in the implementation of future projects withsuch installations.

4.4 Due largely to nonavailability and protracted acquisition of land atseveral centers covered under the Project, the implementation schedule gotextended into a period of changed agricultural situation of the countrynecessitating large scale changes in the scope of the project content for morerational investment. Once the project content was firmed up in early 1983,the pace of implementation was also accelerated. The World Bank reviewmission which has been reviewing the progress to regular intervals also tooknote of this phenomenon and had left a note of commendation in their Aide

-30 -

Memoire while agreeing to extent the Credit closing date on the basis ofimprovements made in the Project Implementation. However, as the major timeoverrun had already taken place due to non-availability of land and also onaccount of the substantial changes made in the scope of the project content,the consequent cost overrun could not be prevented though the negative trendsin this segment were contained to certain extent.

4.5 In keeping with the demands of the changed agricultural situationduring the course of implementation of the project, the decisions taken atdifferent stages to modify the scope of the project content with the concur-rence of the World Bank are considered justified. The completion of construc-tion of Port silos as envisaged at the time of Project Appraisal would haveproved irrelevant today in the context of steady surplus production of grainyear after year in the country as these installations were intended to receiveimported grain at the two ports of Madras and Haldia. On similar analogy, thesetting up of flat bulk warehouse would not also have served the purpose fullyas the mode of procurement operations at the regulated market yards continuesto be in the conventional form even today. In retrospect, therefore, thesedecisions have proved to be sound and the investments made on the baggedgodowns turned out to be more rational.

Lessons Learnt for Implementation of Future Storage Projects

4.6 Land Availability. The experience in acquisition of land for themain structures and also for the rail siding continues to be frustrated. Asthe acquisition proceedings are generally long-drawn and time-consuming, it isconsidered desirable to have a firm commitment on the availability of land fora substantially large number of centers even at the time of appraisal of theproject. Acquisition proceedings for the balance centers should also becommenced immediately thereafter to ensure availability of land at all centersat the time of scheduled commencement of the Project. Long and narrowstretches of land for the approach track of the incoming rail siding shouldalso be acquired and handed over in time so that the storage is put to gainfuluse with all related facilities immediately on completion.

4.7 Changes in the Scope of the Project Content. Large scale revisionsin the scope of the project content during the course of implementation causeseveral setbacks as have occurred in this project. The decision to reduce theextent of and later delete the capital intensive bulk storage components fromthe project content has inevitably resulted in the identification of a largernumber of bagged godowns storage points where the difficult and time-consumingprocess of land acquisition had to be encountered at time when the entireproject was scheduled to be completed.

4.8 As such changes tend to contribute substantially to subsequent timeand cost overruns, it is considered desirable that the content once firmed upat the appraisal stage, should not ordinarily be changed. Even if a need forrevision arises, the changes should be minimal so as to ensure that theestimated implementation period and also the capital outlay are kept withinreasonable variations on actual completion of the project.

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4.9 Changes in the Location of Centers. As stated earlier, the changedagricultural pattern in the country in general and the large scale droughtsituation in the Eastern region during 1979-80 in particular brought out theneed for locating new storage points. In the process, preliminary worksundertaken at some of the centers had to be abandoned. This has resulted ininfructuous expenditure which could have been avoided. It is, therefore,considered that changes in the location of centers, once approved that whereworks are taken up, should be avoided to the extent possible.

4.10 Tendering Procedure. As stipulated by the World Bank, prospectivebidders for the construction of even conventional godowns and ancillaries wereprequalified on the basis of certain criteria in regard to works experience,annual turnover, financial capability, etc. before invitation of tenders.This procedure resulted in limited competition and rather poor tenderresponse. As one or two tenders only responded to the bid invitation in aparticular area, contracts awarded to them at certain centers had to beterminated on account of slow process and balance works executed at 'risk andcostt arrangements which are usually time consuming.

4.11 When the matter was taken up with the World Bank, it was readilyagreed to and open tenders were invited for the balance works. However,certain minimum standards in regard to previous works experience were set toensure that only bidders with proven works experience participated in thetender inquiry. This system worked satisfactorily. For further projects,this position may be clarified to the Bank right at the time of Appraisal forsuitable incorporation in the relevant documents.

4.12 Interdepartmental Coordination. As brought out elsewhere in thereport, the experience with other departments such as Railways, DGS&D, SAIL,etc. was not very satisfying in that a need based grain storage project ofthis kind executed with financial assistance from the World Bank did notreceive the due priority it rightly deserved in regard to release ofmaterials. In spite of the best coordination and follow up at differentlevels of the management with these organizations, the progress of sidingworks and release of essential materials like AC sheets, tubular trusses andrails did not turn for the better throughout the period of implementation. Asa result of this, procurement of trusses and related components was withdrawnfrom DCS&D and undertaken by FCI directly. The procurement of rails and otherP-way materials for the railsidings has now rightly become the responsibilityof the Railways. As regards siding works, it is felt that a marginally higherpriority by the Railways will certainly improve matters.

4.13 Experience gained in implementing the project, particularly in landacquisition, phasing of the project, time schedule of construction, estimatesof costs and their escalation, etc., would be of immense help in designing thecontinuing construction programs in the coming years. To augment storagecapacity further in the VII plan period, a target of 7.5 million tons has beenset for all the Government agencies.

ANNEX G

-32- Table 1

INDIA



Production of Foodgrains(Million tons)

Year Foodgrain Cereals Wheat Rice

1955/56 66.85 57.09 8.76 27.561956/57 69.85 55.80 9.40 29.041957/58 64.31 58.30 8.00 25.521958/59 77.14 54.75 9.96 30.851959/60 76.67 64.00 10.32 31.681960/61 82.02 64.87 11.00 34.571961/62 82.71 69.31 12.07 35.661962/63 80.15 70.95 10.78 35.211963/64 80.64 68.62 9.85 37.001964/65 89.35 70.`1 12.26 39.301965/66 72.35 76.94 10.42 30.651966/67 74.23 62.23 11.39 30.631967/68 95.01 65.88 16.54 37.611968/69 94.01 82.95 18.65 39.761969/70 99.50 87.81 20.01 40.431970/71 108.42 96.60 23.83 42.231971/72 105.17 94.07 26.41 43.071972/73 97.03 87.12 24.73 39.251973/74 104.67 94.66 21.78 44.051974/75 99.83 89.81 24.10 39.581975/76 121.03 108.00 28.85 48.741976/77 111.17 99.81 29.01 41.921977/78 126.41 114.43 31.75 52.671978/79 131.90 119.72 35.51 53.771979/80 109.70 101.13 31.83 42.331980/81 129.59 118.96 36.31 53.631981/82 133.30 121.79 37.45 53.251982/83 129.52 117.66 42.79 47.121983/84 152.37 139.48 45.48 60.101984/85 145.54 133.58 44.07 58.341985/86 150.47 137.51 46.88 64.15

Source: Ministry of Food and Civil Supplies (Department of Civil Supplies).

ANNI U33 Table 2

INDIA



Compound Growth Rates of Area, Production and Yieldof Foodgrains

(% p.a.)

1949/50 - 1983/84 1967/68 - 1983/84Crops Area Production Yield Area Production Yield

Rice 0.92 2.46 1.53 0.64 2.27 1.62

Wheat 2.80 6.02 3.12 2.68 5.77 3.00

Jowar -0.16 1.37 1.53 -0.76 2.04 2.82

Bajra 0.34 2.13 1.79 -0.79 0.70 1.51

Maize 1.86 2.63 0.75 -0.05 0.66 0.70

Ragi 0.27 1.84 1.57 0.61 2.79. 2.18

Small millets -0.77 -0.90 -0.13 -1.79 -1.23 0.57

Barley -2.04 -0.80 1.27 -4.50 -3.01 1.54

Coarse cereals 0.46 1.47 1.28 -0.89 0.91 1.75

Total Cereals 0.84 2.96 1.77 0.37 2.87 2.04

Gram -0.55 Neg. 0.55 -0.35 -0.51 -0.19

Tur 0.60 0.26 -0.35 0.99 1.38 0.39

Other pulses 0.80 0.47 -0.33 0.85 0.79 -0.06

Total Pulses 0.33 0.23 0.08 0.47 0.35 -0.02

Total Foodgrains 0.74 2.61 1.56 0.38 2.61 1.84

Source: Directorate of Economics and Statistics, Ministry of Agriculture andRural Development.

ANNEX G-34 - Table 3

INDIA



All-India Production, Procurement of Imports andDistribution of Foodgrains

('000 tons)

Net NetYear production Procurement imports Distribution Difference

(1) (2) (3) (4) (2) - (4)

1961 72,040 540 3,490 3,980 (3,440)1962 72,100 480 3,630 4,370 (3,890)1963 70,290 750 4,540 5,180 (4,430)1964 70,610 1,430 6,250 8,670 (7,240)1965 78,200 4,030 7,440 10,080 (6,050)

Total 363,240 7,230 25,350 32,280 (25,050)

1966 63,300 4,010 10,310 14,090 (10,080)1967 64,950 4,460 8,660 13,770 (8,710)1968 83,170 6,810 5,670 10,220 (3,410)1969 82,260 6,380 3,820 9,390 (3,010)1970 87,060 6,710 3,550 8,840 (2,130)

Total 380,740 28,370 32,010 55,710 (27,340)

1971 94,870 8,860 2,010 7,820 1,0401972 92,020 7,670 (500) 10,490 (2,820)1973 84,900 8,420 3,590 11,410 (2,990)1974 91,580 5,650 5,160 10,790 (5,140)1975 87,350 9,560 7,540 11,250 9,310

Total 450,720 40,070 17,800 51,760 (11,690)

1976 105,900 12,850 6,920 9,170 3,6801°77 97,270 9,940 490 11,740 (1,800)1978 110,610 11,090 (630) 10,180 9101979 115,410 13,840 (860) 11,660 2,1801980 95,990 11,170 (350) 14,990 (3,820)

Total 525,180 58,890 5,570 57,740 1,150

1981 113,390 12,980 630 13,010 (30)1982 116,630 15,420 1,580 14,770 6501983 113,330 15,670 4,070 16,210 (440)1984 133,330 18,720 2,370 13,340 5,3801985 127,950 20,000 (320) 14,070 5,930

Total 604,630 82,790 8,330 71,400 11,390

Note: There have been net exports during 1972, 1978-80 and 1985.

ANNEX G35 -Table 4INDIA



Net Availability, Procurement and Public Distribution of Foodgrains(Million tons)

Net Netproduc- availa-tion of bility Public Col. 2 Col. 4 Col. 5food- Net of food- Procure- distri- as % of as Z of as % of

Year grains imports gra.lns/a ment bution col. 3 col. 1 col. 3(1) (2) (3) (4) (5) (6) (7) (8)

1956 60.67 1.37 62.64 0.04 2.08 2.2 0.1 3.31961 72.04 3.49 75.69 0.54 3.98 4.6 0.7 5.31962 72.10 3.63 76.08 0.48 4.37 4.8 0.7 5.71963 70.29 4.54 74.85 0.75 5.18 6.1 1.1 6.91964 70.61 6.25 78.11 1.43 8.67 8.0 2.0 11.11965 78.20 7.44 84.57 4.03 10.08 8.8 5.2 11.91966 63.30 10.31 73.48 4.01 14.09 14.1 6.3 19.21967 64.95 8.66 73.87 4.46 13.17 11.7 6.9 17.81968 83.17 5.67 86.81 6.81 10.22 6.6 8.2 11.81969 82.26 3.82 85.62 6.38 9.39 4.5 7.8 11.01970 87.06 3.55 89.49 6.71 8.84 4.0 7.7 9.91971 94.87 2.01 94.31 8.86 7.82 2.1 9.3 8.31972 92.02 (0.50) 96.22 7.67 10.49 (0.5) 8.3 10.91973 84.90 3.59 88.79 8.42 11.41 4.0 9.9 12.81974 91.58 5.16 97.14 5.65 10.79 5.3 6.2 11.11975 87.35 7.54 89.33 9.56 11.25 8.4 10.9 12.61976 105.90 0.67 95.83 12.85 9.17 6.6 12.1 9.01977 97.27 0.10 99.00 9.87 11.73 0.1 10.2 11.81978 110.61 (0.60) 110.25 11.10 10.18/b (0.5) 10.0 9.21979 115.41 (0.20) 114.85 13.84 11.667Wc (0.2) 12.0 10.21980 95.99 (0.34) 101.43 11.17 14.997W (0.3) 11.6 14.81981 113.39 0.63 114.26 12.98 13.017W 0.6 11.4 11.41982 116.63 1.58 116.88 15.35 14.777Wb 1.4 13.2 12.61983/c 113.33 4.07 114.74 15.66 16.21f/b 3.5 13.8 14.119847W 133.33 2.37 128.63 18.72 13.347Wb 1.8 14.0 10.419857Wc 127.95 (0.32) 126.50 20.00/d 14.07 (0.3) 15.6 11.1

/a Net availability - net production + net imports - change in government stocks.7b Includes quantities released under the Food for Work program.7TW Provisional.Td Up to November 1985.

Note: Production figures relate to agricultural year; 1956 figures correspond to1955/56 and so on. Figures for procurement and public distribution relate tocalendar years.

Source: Economic Survey, 1985/86.

ANNEX G- 36 - Table 5

INDIA



All-India Procurement of Rabi/Kharif Foodgrains(Marketing Year-Wise) from 1964/65 to 1984/85

('000 tons)

KbarifRabi Rice

Total (including in Total GrandWheat cereals Paddy terms of rice) cereals total

1964/65 94 94 388 2,899 3,347 3,4411965/66 463 466 988 3,137 5,755 4,2211966/67 198 198 673 2,469 3,143 3,3411967/68 893 988 1,289 3,233 4,004 4,9921968/69 2,298 2,337 1,359 3,433 3,897 6,2341969/70 2,387 2,387 1,329 2,943 3,217 5,6041970/71 3,192 3,199 1,432 3,197 3,682 6,8811971/72 5,101 5,112 1,639 3,116 3,297 8,4091972/73 5,006 5,014 1,057 2,706 3,017 8,0311973/74 4,531 4,536 1,989 3,887 4,274 8,8101974/75 1,955 1,975 2,115 3,795 4,097 6,0721975/76 4,049 4,055 3,461 6,322 6,632 10,6871976/77 6,602 6,629 1,332 4,431 4,653 11,2821977/78 5,165 5,179 1,501 4,853 4,874 10,0531978/79 5,477 5,490 3,204 6,334 6,459 11,9491979/80 8,000 8,010 2,686 3,851 3,963 11,9731980/81 5,861 5,861 4,579 5,609 . 5,711 11,5721981/82 6,595 6,607 3,801 7,334 7,555 14,1621982/83 7,718 7,720 3,267 7,047 7,219 14,9391983/84 8,292 8,299 2,682 7,731 7,771 16,0701984/85 9,300 9,305 4,053 9,850 10,061 19,3661985/86/a 10,345 10,355 5,223 9,814 9,911 20,266

/a Provisional.

Sources: Bulletin on Food Statistics, Directorate of Economics and Statis-tics, Ministry of Agriculture; Department of Food.

37 - ANNEX GTable 6

INDIA



Total Offtake (Distribution) of Foodgrainsfrom Government Stocks (All-India)

('000 tons)

Wheat Rice Coarse grains Total

1951 3385 3,076 1,520 7,981

1961 2,983 950 44 3,977

1971 4,455 3,230 131 7,8161972/a 7,413 3,688 295 11,3961973 7,130 3,206 1,078 11,4141974 5,669 3,753 1,368 10,7901975 7,545 3,211 497 11,2531976 5,015 3,643 516 9,1741977 6,396 4,589 744 11,7291978 6,855 3,229 99 10,1831979 7,493 4,049 121 11,663

1980 8,819 6,057 117 14,9931981 6,427 6,402 185 13,0141982 7,168 7,500 100 14,7681983 8,121 7,853 232 16,2061984/b 6,505 6,730 91 13,326198571 8,477 7,231 91 15,79919867wc 9,600 3,400 300 18,300

/a Including export under Gift/Aid to Bangladesh.

/b Provisional.

/c Estimated.

ANNEX G- 38 - Table 7

INDIA



Index Numbers of Wholesale Prices of Foodgrains (Annual Average)(Base: 1970/71 - 100)

All commodities Foodgrains Cereals ITheat Rice

1971 105.2 102.1 100.9 97.8 103.3

1972 113.0 114.6 111.4 103.3 112.1

1973 131.6 135.0 128.0 108.0 131.6

1974 169.2 183.6 178.1 163.9 174.7

1975 175.8 187.0 185.7 168.4 188.2

1976 172.4 150.3 151.6 150.6 154.9

1977 185.4 167.2 161.2 155.8 163.6

1978 185.0 173.3 158.1 154.8 150.0

1979 206.5 179.8 167.0 158.8 175.3

1980 248.8 207.3 189.5 169.9 201.5

1981 278.4 236.1 213.1 190.0 220.6

1982 285.3 242.5 229.4 203.3 247.6

1983 308.5 270.4 259.8 223.1 290.1

1984 338.0 275.4 247.0 211.6 275.5

1985 353.0 289.4 255.4 218.8 281.6

1986/a 367.0 296.9 270.8 233.9 289.9

/a Average of eight months--January to August 1986.

INDIA



Pattern of Procurement Prices of Foodgrains in India(Rs/quintal)

PaddyMarket- Super- Ricelng year Wheat Common Fine fine Jowar Bajra Maize Ragi Coarse Fine Superfine

(Apr-Mar) (Oct-Sep) -(------ (All-India range) --- -

1975/76 105 /a - - 74 74 74 74 - -

1976/77 105 74 - - 74 74 74 74 - - -

1977/78 110 77 - - 74 74 74 74 - - _1978/79 112.50 85 - - 85 85 85 85 - -1979/80 115 95 99 103 95 95 95 95 149.50/159.50 155.50/170.75 165.00/180.001980/81 117 105 109 113 105 105 105 105 164.50/175.25 170.25/187.25 177.50/195.201981/82 130 115 119 123 116 116 116 116 176.00/194.70 182.50/207.t5 188.50/215.351982/83 142 122 126 130 118 118 118 118 186.00/205.95 192.50/218.60 198.50/226.901983/84 151 132 36 140 124 124 124 124 200.00/221.00 206.50/235.40 212.50/243.401984185 152 137 141 145 130 130 130 130 210.60/231.90 216.40/245.45 222.15/253.901985/86 157 142 146 150 130 130 130 130 217.85/241.90 223.60/255.85 229.40/264.451986/87 162 146 150 154 - - - - 223.60/248.30 229.40/258.95 235.20/271.15

/a Varied from state to state for different varieties.

Source: Bulletin on Food Statistics, Directorate of Economics and Statistics, Department of Agriculture and Coopera-tion, Ministry of Agriculture.

!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~t

ANNEX G-40- Table 9

INDIA



Stocks of Foodgrains with Central and State Governmentsand Stocks in Pipelinps

('000 tons)

At the begin- Total

ning of Rice Wheat Coarse grains foodgrains

July 1975 1,593 4,210 161 5,964

July 1976 5,120 11,959 904 17,683

July 1977 5,592 14,642 513 20,747

July 1978 6,577 12,229 105 18,911

July 1979 9,627 11,728 149 21,504

July 1980 7,090 9,003 141 16,234

July 1981 5,839 7,733 103 13,675

July 1982 5,118 10,164 196 15,478

July 1983 3,781 13,013 168 16,962

July 1984/a 4,610 17,833 49 22,492

July 1985/a 7,750 20,732 172 28,654

July 1986/a 9,450 19,210 140 28,800

/a Provisional.

Source: Department of Food, Ministry of Food and Civil Supplies.

INDIA

SECOND FOODGRAZN STORAGE PROJECT (CREDIT 747-IN)


Growth Pattern of Storsae Accommodation with FCI* ('000 tons)

Covered accommodations hired from Total CrandPrivate parties owned & total

Financial State Under ARDC Total hired Capacity/open covered byear-end Owned CwC SWC gov ts General scheme hired (covered) Owned Hired Total capacity

1965/66 568.50 - - - - - 49.09/a 617.59 - - - -1966/67 1,052.40 - - - - - 601.6671a 1,654.06 - - - -1967/68 1,243.15 - - - - - 733. l7a 1,976.16 - - - -1968/69 2,424.90 675.68 349.73 1,343.10 b - 2,365.51 4,790.41 - - - -

1969170 2,812.75 798.23 232.85 1,727.87 2,758.95 5,571.70 - - - -

1970/71 3,451.49 635.00 290.15 1,873.35 71 - 2,798.50 6,249.99 - - - -

1971/72 4,044.64 696.56 746.59 579.47 2,199.96 - 4,2?2.58 8,267.22 8.60 - 8.60 8,275.82 '

1972/73 4,759.20 746.41 255.42 520.61 1,627.58 - 3,150.02 7,909.22 16.69 - 16.69 7,925.911973/74 5,146.77 840.44 270.66 518.38 1,086.63 - 2,716.11 7,862.88 496.98 - 496.98 8,359.861974/75 5,344.23 528.85 155.14 612.45 685.26 - 1,981.70 7,325.93 532.91 - 532.91 7,858.841975/76 5,470.51 877.36 852.00 709.74 1,296.43 - 3,735.53 9,206.04 1,078.88 913.30 1,992.18 11,198.221976/77 5,857.10 1,089.37 1,240.56 990.50 2,265.02 /c 5,585.45 11,442.55 1,852.99 5,671.45 7,524.44 18,966.991977/78 6,457.53 1,128.06 1,183.79 779.58 4,054.72 7c 7,100.15 13,557.68 1,615.59 5,610.78 7,226.37 20,784.051978/79 7,239.76 1,126.81 1,094.94 820.28 1,018.00 4,165.00 8,225.03 15,464.74 1,289.99 5,303.07 6,693.06 22,057.851979/80 7,587.08 980.11 1,009.03 780.52 976.67 4,846.91 8,590.24 16,180.32 1,288.45 5,459.57 6,748.02 22,928.341980/81 7,757.24 811.59 761.30 676.21 624.65 5,138.30 8,012.05 15,769.29 1,238.46 3,782.76 5,021.22 ?1),790.511981/82 7,934.77 1,059.26 751.31 679.32 506.62 5,010.76 8,007.27 15,942.04 1,193.11 1,217.46 2,410.57 X ,350.611982/83 8,206.41 1,354.11 731.73 760.44 804.03 4,216.13 7,866.44 16,072.85 1,112.37 957.83 2,070.20 18,143.051983/84 8,544.62 1,573.44 1,069.45 748.61 1,643.47 3,516.58 8,551.55 17,096.17 1,056.88 472.02 1,528.90 18,625.071984/85 9,174.89 1,968.48 2,145.96 878.78 2,770.94 2,752.95 10,517.11 19,692.00 798.21 1,779.19 2,577.40 22,269.401985/86/d 10,105.49 2,099.07 2,280.47 732.08 2,935.66 2,702.47 10,800.06 20,905.55 1,366.78 2,745.84 4,112.60 25,018.151985/86e 10,365.82 2,038.30 2,195.93 758.49 2,591.00 2,843.84 10,428.96 20,794.78 1,332.30 2,341.52 3,673.82 24,468.60

/a Agency-wise split not available.71i Separate details not available. Included In capacities shown against state governments._ Not available. The scheme for construction of scientific storages by the private parties for leasing to the Corporation on guaranteed occu-

pation basis was launched In 1976/77 only./d As okf December 31, 1985.Te As of Karch 31, 1986.

ANNEX PTable I

INDIA



Details of Proposed and Actually Constructed Storage Capacities - Abstract('000 tons)

Storage Capacity actually constructedcapacity proposed under the project Conventlonal godo us

Conventional Flat bulk Port Agreed S.lected Flat bulk PortZone/region godowns varehouses silos Total RA works sites sites varehouses silos Total

North Zone IaHaryana 100.00 105.00 - 205.00 5.00 233.34 94.26 - - 332.60

Punjab 250.00 157.50 - 407.50 144.68 501.68 149.15 - - 795.51

Rajasthan 75.00 - - 75.00 15.00 46.68 21.40 - - 83.08

Uttar Pradesh 200.00 262.50 - 462.50 70.33 180.00 71.60 - - 321.93

Jammu & Kashltr - - - - 10.00 5.00 6.68 - - 21.68

Delhi - - - - - - 25.00 - - 25.00

Subtotal 625.00 525.00 _ 1.150.00 245.01 966.70 368.09 - - 1,579.80

South ZoneAndhra Pradesh 150.00 52.50 - 200.50 44.24 280.50 45.26 - - 370.00

Karnataka 50.00 - - 50.00 1.67 85.00 6.09 - - 92.67

Kerala 155.00 - - 155.00 16.70 112.84 - - - 129.54

Tamil Nadu &50.00 - 25.00 175.00 53.34 170.00 - - - 223.34

Subtotal 505.00 52.50 25.00 580.50 115.95 648.34 51.35 - - 815.64

East ZoneBihar 175.00 52.50 - 227.50 17.93 50.00 3.34 - - 71.27

Ortssa 75.00 - - 75.00 20.00/9.5 50.00 16.28 - - 86.28

West Bengal 150.00 52.50 50.00 252.50 - 80.00 5.00 - - 85.00

Assam - - - - 20.00 - - - - 20.00

NE? - - - - 5.00 - - - - 5.00

Subtotal 400.00 105.00 50.00 555.00 62.93 180.00 24.62 - - 267.55

West ZoneCujarat 75.00 - - 75.00 - 60.00 34.76 - - 94.76

Madhya Pradesh 125.00 157.50 - 227.50 173.25 175.00 101.71 - - 449.96

Maharaghtra 125.00 160.00 - 285.00 47.50 240.00 30.00 - - 317.50

Subtotal 325.00 317.50 - 637.50 220.75 475.00 166.47 - 862.22

Total 1,855.00 1,000.0O 75.00 2.930.00 644.64 2.270.04 610.53 - _ 3.525.21

/a The cumulative capacity completed up to March 31, 1986 is 3,260.825 tons. A capacity of 122,240 tons is targetedfor completion during 1986/87 and the balance 142,140 tons projected for completion during 1987/88.

ANNEX P_ 43 _ Table 2.

43 ~~~~~~~~P4 gelI

INDIA



Details of Proposed and Actual Constructed Stora e Capacities - Retroactive Component

(Capacity in '000 tons; coata in R lakh)

Capital Actual/outlay Capacity probable

Capacity (original realized or capital Variations

Center/location planned estimate) coapleted expenditure Physical Financial

North Zone

4TMrsla. 5.00 - 5.00 8.18 - -

Jama 4 Kashmir=asMu Tawl 10.00 - 10.00 23.19 - -

PunjabNavasahar 1.67 - 1.67 2.49 - -

Amloh 3.34 - 3.34 3.93 - -

Talwandi Sabo 3.34 - 3.34 5.24 - -

Bhogpur 2.50 - 2.50 7.00 - -

Faridkot 3.34 - 3.34 4.68 - -

Curuhareahai 10.00 - 10.00 23.65 - -

Dhuri 5.00 - 5.00 10.30 - -

Bholath (phase 1) 5.00 - 5.00 7.66 - -

Hoshiarpur 5.00 - 5.00 10.30 - -

Balachaur 6.67 - 6.67 11.29 - -

Jagraon 8.34 - 8.34 10.28 - -

Maloud 10.00 - 10.00 19.08 - -

Sangrur 10.00 - 10.00 20.81 - -

Barnala (phase 1) 8.34 - 8.34 13.85 - -

Jalalabad 5.00 - 5.00 8.94 - -

Bhatinda (phase 1) 5.00 - 5.00 5.97 - -

Shags.r 5.00 - 5.00 9.20 - -

Bhatinda (phase 2) 2.50 - 2.50 4.45 - -

Bholath (phase 2) 5.00 - 5.00 8.78 - -

Sardulgarh 10.00 - 10.00 14.65 - -

Zira 6.67 - 6.67 9.38 - -

Chabal 5.00 - 5.00 8.76 - -

Vallah 10.00 - 10.00 16.71 -

Barnala (phase 2) 2.97 - 2.97 4.55 - -

Doda 5.00 - 5.00 6.46 - -

RajasthanNO=n 5.00 - 5.00 10.20 - -

Newai 5.00 - 5.00 9.27 - -

Nagaur 5.00 - 5.00 10.42 - -

Uttar PradeshAllahabad 10.00 - 10.00 19.20 - -

Varanasi 15.84 - 15.84 27.68 - -

Attara 6.12 - 6.12 10.20 - -

Kanpur 8.34 - 8.34 14.68 - -

Chanderi 1.67 - 1.67 4.09 - -

Faisabad 13.36 - 13.36 26.65 - -

Mathura 10.00 - 10.00 21.00 - -

Kosikalan 5.00 - 5.00 9.47 - -

South ZoneAndhra FradeshKanlneaa 5.90 - 5.90 15.41 - -

Vishakapatnam (phase 1) 10.00 - 10.00 24.43 - -

Visbakapatnau (phase 2) 5.00 - 5.00 13.11 - -

Ongole 5.00 - 5.00 0.92 - -

Chittor 5.00 - 5.00 11.49 - -

Kazipet 13.34 - 13.34 27.76 - -

ANNEX PTable 2b

- 44- Page 1

INDIA

SECOND FOODCRAIN STORAGE PROJECT (CREDIT 747-IN)


Details of Proposed and Actual Constructed Storavge Capacitien - Regular Component - Agreed Sites(Capacity in '000 tons; costs in Rs lakh)

Capital Capacity Actual/outlay realized or probable

Capacity (original completed capital VariationsCenter/location planned estimate) (12/31/85) expenditure Physical Financial

North ZoneHsrvana

anipat 1 25.00 89.71 25.00 85.12 - (4.59)Panipat II 10.00 40.88 10.00 32.61 (8.27)Narwana 1 25.00 120.07 23.00 100.00 (2.00)/a (20.07)Narwana lI 25.00 169.94 25.00 170.00 - 0.06Kurukahetra 30.00 142.90 30.00 128.30 - (14.60)Siresa 25.00 154.65 23.34 135.40 (1.66)/b (19.25)Kaithal 1 30.00 184.61 30.00 145.11 - (39.50)Kaithal II 20.00 83.42 20.00 68.31 - (15.11)Kalthal III 20.00 130.36 20.00 86.15 - (44.21)Bhattu 5.00 17.36 5.00 14.49 - (2.87)Dabvali 5.00 17.15 5.00 16.03 - (1.12)Walanvall 5.00 17.34 5.00 13.49 - (3.85)Fatehabad 8.34 28.36 5.00 20.72 - (7.64)

Ralasthan=-ali 5.00 19.20 5.00 15.25 - (3.95)Barmer 10.00 35.34 10.00 32.50 - (2.84)Alwar 5.00 16.56 5.00 16.80 - 0.24Sikar 5.00 16.26 5.00 11.41 - (4.84)Kherli 6.68 33.30 6.60 28.00 - (5.30)Amer I 15.00 129.31 15.00 74.15 - (55.16)

Punjab--1Ea- 15.00 68.79 15.00 69.78 - 0.99Chakki Bank 50.00 156.22 50.00 216.61 - 60.39Amritsar 50.00 18.39 50.00 230.25 - 41.86Nabha 50.00 275.52 10.00 246.35 (40.00)/a (29.17)Sahneval 50.00 211.12 50.00 222.12 - 11.00Rajpura 1 25.00 165.00 25.00 111.75 - (53.25)Dhuri 50.00 179.82 50.00 207.48 - 27.66Kotkapura I 50.00 196.39 50.00 185.08 - (11.31)Kotkapura II 30.00 167.52 30.00 119.06 - (48.46)Patiala 50.00 187.86 30.00 239.92 (20.00)/a 52.06Sangrur 10.00 44.17 10.00 35.20 - (8.97)Malerkotla 10.00 30.30 10.00 17.26 - (12.54)Tanda Urmur 20.00 209.86 20.00 141.59 - (68.29)Rathur 10.00 31.94 10.00 24.24 - (7.70)Barnala I 8.34 1 36.31 8.34 26.70 - (9.61)Bermal 11 3.34 1 3.34 .- (.1Tanda Uliur 5.00 15.46 5.00 12.65 - (2.61)Yahalkalan 5.00 16.52 5.00 10.99 - (5.53)Bariwala 5.00 19.42 5.00 13.07 - (6.35)Bbadaur 5.00 17.17 5.00 11.40 - (5.77)

Jammu & Kashmiramantuag 5.00 49.45 5.00 51.01 - 1.56

Uttar Pradesh* ttawan 10.00 75.25 10.00 67.00 - (18.25)Saharanpur 45.00 148.41 45.00 173.60 - 25.19Muraffernagar 50.00 154.23 50.00 191.50 - 37.27Neoll 50.00 264.20 45.00 254.00 (5.00)/a (9.80)Barabanki 25.00 124.82 25.00 162.31 - 37.49

ANNEX PTable 2c

- 45 _ YPage 1

INDIA

SECOND FOODORAIN STORAGE PROJECT (CREDIT 747-IN)


Details of Proposed and Actual Constructed Storage Capacities - Regular Component - Selected Sites(Capacity in '000 tons; costs in Rs lakh)

Capital Capacity Actual/outlay realized or probable

Capacity (original completed capital VariationsCenter/location planned estimate) (12/31/86) expenditure Physical Financial

North ZoneHaryana

Sirsa 2.50 11.21 2.50 6.00 - (5.21)Tohana 1.25 6.33 1.25 3.50 - (2.83)Bhiwani 1.67 7.89 1.67 5.50 - (2.39)Hissar 1.92 7.57 1.92 7.50 - (0.07)Bhiwani Khera 5.00 29.52 5.00 13.50 - (16.02)Panipat III 20.00 1 277.24 20.00 115.06 - (109.95)Panipat IV 10.00 ) 10.00 52.23 1Gurgaon 8.00 26.42 8.00 26.07 - (0.35)Rohtak 2.60 10.40 2.60 10.20 - (0.20)Ambala 1.28 5.12 1.28 4.21 - (0.91)Palwal 1.67 6.68 1.67 6.69 - 0.01Tarori 2.95 11.80 2.95 11.46 - (0.34)Pehowa 6.67 26.68 6.67 21.55 - (5.13)Cheeka 5.00 20.00 5.00 20.85 - 0.85Kaithal 1.25 5.00 1.25 5.01 - 0.01Safidon 12.50 50.00 12.50 52.19 - 2.19Faridabad 10.00 91.70/c 10.00 51.04 - 1.04

RaJasthanJaipur 2.78 20.78 2.78 11.00 - (9.78)Jodhpur 2.78 16.46 2.78 11.70 - 4.76Sujangarh 3.34 23.25 3.34 14.60 - (8.65)Bikaner 2.50 17.35 2.50 12.57 - (4.76)Swaimadhopur 10.00 207.00/d - 77.55 (10.00)/a (129.45)

PunjabDoda 1.67 7.29 1.67 5.98 - (1.31)Laduka 3.34 13.51 3.34 9.81 - (3.70)Lakhewali 5.00 20.32 5.00 14.25 - (6.07)Bhadaur 1.67 13.C9 1.67 5.73 - (7.36)Malout I 10.00 208.64/d 10.00 99.00 - (109.64)Rajpura II 20.00 98.59 20.00 95.00 - (3.59)Tanda Urmar II 10.00 67.92 10.00 60.db - (7.92)Maloud 6.67 27.36 6.67 21.19 - (6.17)Foranvala 3.34 15.70 - 10.77 (3.34)/a (5.01)Bhagear 3.15 13.09 3.15 10.78 - (2.31)Lobinkhas 1.67 18.58 1.67 6.66 - (12.02)Dudhan (1.25+2.24) 3.49 18.16 1.25 14.04 (2.24)/a (4.12)Abohar 1.67 8.19 1.67 6.97 _ (1.22)Drasuya 11.27 44.21 - 33.51 (11.27)/a (10.70)Faridkot 3.34 16.56 3.34 11.50 - (5.06)Barivala 8.34 35.78 8.34 23.00 - (12.78)Sultanpur Lodhi 3.34 15.51 3.34 12.48 - (3.03)Nahalkalan 1.67 7.55 1.67 5.00 - (2.55)Lodowall 4.46 21.46 4.46 14.00 - (7.46)Chinarthal 1.67 7.49 1.67 5.50 - (1.99)Batala 1.67 8.17 1.67 7.50 - (0.67)Roshlarpur 10.80 31.76 10.80 29.93 - (11.83)Bbosbpur -8.20 26.80 8.20 24.11 - (2.69)Zira 1.67 9.01 1.67 12.46 - 3.45

- 46 - Table 3aPage 1

INDIA



Details of Proposed and Actual Stora8e Construction and Capacities - Retroactive Component(Capacity in '000 tons)

Schedule ActualDate of Date of

Capacity Date of comple- Date of comple- Year-vise achievementCenter/location planned start tion start tion 1977/78 1978/79 1979/80 1980/81

North Zone

stre, 5.00

Jammu 6 KashmirJammu Tavl 10.00

PunjabNavasahar 1.67Amloh 3.34Talvandi Sabo 3.34Bhogpur 2.50Faridkot 3.34Guruharsahai 10.00Dhuri 5.00Bholath (phase 1) 5.00Roahiarpur 5.00Balachaur 6.67Jagraon 8.344aloud 10.00Sangrur 10.008arnala (site 1) 8.34Jalalabad 5.00Ihatinda (site 1) 5.00Bhagsar MOIhatinda (site 2) 2.50Bholath (site 2) 5.00Sardulgarh 10.00Zlra 6.67Chabal 3.00Vallah 10.00

arnala II 2.97Doda S.00

RalasthanI ndl 5.00Neval 5.00Nagpur 5.00

Uttar PradeshAllahabad 10.00Varanasl 15.84Attara 6.12Ranpur 8.34Chanderl 1.67Faizabad 13.36Mathura 10.00Kosikalan 5.00

South ZoneiMdhra Pradesh

Kakinada S.90Vishakapatnam 10.00Vishakapatnam 5.00ongole 5.00Ch*ttor 5.00Kasipet 13.34

|47 ANEX PTable 3aPage 2


Capacity Date of comple- Date of comple- Year-vise achievementCenter/location planned star. tion start tLon 1977/78 1978179 1979/80 1980/81

South 0one (cont'd)Karnatava- Shimaga 1.67

KeralaChaiakudy 5.00Olavakot 6.70Angadipuram 5.00

TamilmaduT.V.- 5ol 13.34Madras (bulk) 40.00

East Zone

--Taiagla 5.00Narayan Pur Anant 5.00Silchar 10.00

Blihar1 h warishariff 4.59Gaya 13.34

NEF ReRtionanipur (Iaphal) 5.00

Orissa|Ieshwar (phase 1) 2.50Jaleshwar (phase 2) 2.50Rupsa 2.50[ Dungrapalli 5.00Jharsuguda 5.00Dhankanal 2.50

West ZoneMadhya Pradesh

Ianiir Hasaud 45.00Jagdalpur 5.00Teekamgarh 10.00Nevari 10.00Kargi Road 5.00Balaghat 5.00Wareaseonl 5.00Katangi 5.00Durg 20.00Sheopurkalan 5.00Belha 5.00Rajnandgaon (org.) 5.00Rajnandgaou 5.00Rajimnawapara 5.008ishrampur 5.00Kharsia 5.00Raigarh 2.508etul 5.00Ratlam 3.75Datia 2.50Naila 3.00Seoni 3.00Rajuandgaoan (additional) 4.00

Maharashtralortvillt 15.00lEanuad 32.50

Total 644.64 15.00 526.00 89.00 15.00

Note: All locations are road-fed.

IIIDIA

SECOND tOODCRAtS STORACE PROJECT (CREDIT 747-IN)

PRJoEcT CONPFLETION BRPORT

Detaill of Proposed and Actual Storage Construction and Capacitles - Regular Component - Agreed Siteo~~~~~~~~~~(Capacity In '000 ton3 s)

Schedule ActualDate of Date ot

Capacity Date of coeple- Date of comple- Year-vise achievementCOnor/locatlon planned start tion start tlion 1977/78 19i8/19 l979/80 1980/81 1981182 1982183 1983jH4 1984/85 1985i86 198687I/ 1i987188/a Remarks

obthb Zone

P5I t 1 25.00 06180 06/83 OS/80 06/84 - - - - - - 10.00 IS.00 - - - Ril-fedPanipat 11 10.00 07/80 10/84 01/80 07/84 - - - - - 5.00 5.00 - - Rail-fedbtrvan. 1 25 00 09/80 05/85 09/8U 01/86 - - - - - - - 11.67 13.33 - - R5i-fedEaruans I1 25.00 11183 03/8S 11183 10/85 - - - - - - - 16.67 8.33 - - gail-fedIurushetr 30.00 01/81 07/84 01/83 07/84 - - _ _ _ 2n.00 10.00 - - - Road-fedSInea 25.00 11/82 04/84 11/82 06/85 - - - - - 10.00 8.34 5.00 - 1.66/b Rail-fedeath l 1 30 00 04/83 08/84 04!81 02/85 5.00 25.00 - - - Rail-fed

Malthal it 20.00 12/83 11/84 12/813 03/85 - - - - - - - 20.00 - - - Rell-fedsitbal 111 20.00 11/83 01185 11/83 0/85 - - - - - - - 10.00 20.00 - - Rail-fedttballu 5.00 12/81 08/82 12/81 03/83 - - - - - 5.00 - - - - Road-fedDabe al 5.00 01182 09/82 03182 031/8 - - - - - 5.00 - - - - - Road:fadEalanvali . 5.00 03182 09/82 03/82 01183 - - - - - 5.00 - - - - Road-fedtatehbbd 8.34 02/82 08/82 02182 03/83 - - - - - 8.34 - - - - - Road-ted

R hOSth8aV& ll 5.00 03181 12183 t01/81 02/84 - - - - - - 5.00 - - - - Road-fedllrmar 10.00 03/83 12/83 01/83 05/84 - - - - - - 5.00 5 00 - - Road-fed5tlar 5.00 03/83 12/83 01/83 02/84 - - - - - - 5.00 - - - - Road-fedEhe iI 6 68 03/83 12283 013183 05/84 - - - - - - 3.34 3.34 - _ - Road-tedAJ_ar I 25.00 i/83 02/85 I1/83 07/85 - - - - - - - 10.00 5.00 - - Road-fedAlger 5.00 03/83 12/83 03/83 12/83 - _ _ _ _ - 5.00 _ _ _ _ Road-fed

15.00 11/83 11/84 11/83 03/84 - - - - - - 25.00 - - _ - Road-fed1o*aki Rank 50.00 06/80 02/84 n0680 03/84 - - - 25..00 2M.OO S.Oo 5.00 - - _ _ Rail-fed

Anritr 50.00 04/83 09/84 04/83 08/84 - - - - - - 45.00 5.00 - - - Rail-todmabha 50.00 08083 09/85 08/83 03/88 - - - - - - - - 20.00 25.00 S 500 Rail-tedSahr o l 50 00 04/80 09/81 04/80 06/82 - - - 5. 0 35.00 21.00 - - -- Rail-fedRejpura 1 25.00 1IJ80 09/82 04/80 03/82 - 20.00 5.00 - - - - - Road-fedDhuri 50.00 04/80 l0/82 04/80 03/82 - - - - 30.00 10.00 - - - - Rail-fedIotbapurn 1 50.00 01/80 0O682 02/80 06/82 - - - 20.00 30.00 - - - - - - Roll-fedPaothpura 11 30.00 02/81 Ob/84 02/83 09184 - _ _ _ _ _ 25.00 5.00 - - - Rail-fedPaIlS ia 50.00 09/79 03/81 09/79 06186 - - - 20.00n 0.00 - 100.00 000- Ral-ted5angrur 20.00 02/83 I0/43 02/81 03/84 - - - - - - 20.00 - - - - Road-fedale'rkotla 10.00 03180 09/80 03/8') 02/85 - - - - - 2n -n - - - Road-fed

tenda Urcur 20.00 0S/83 09/84 05/83 09/84 - - - - - - - 20.00 - - _ RaId-fedllnthur 10.00 09/81 01/82 09/81 03/83 - - - - - 20 -n - - Road-tedIernala 2 8 34 01181 08/81 02/81 03/83 - - - _ - 8.51 - - - - Road-tedBTrn*l I1 3.34 09/81 01/82 09/81 03/83 - - - _ - 1 34 - - - _ - Rad-fedTands urmur 5.0O 03/80 09/8 1 01/80 03/83 - - - - - S.' -_ _ _ - Road-fedItnhla IOn 5.00 03/81 09/81 013/21 n3/3 - n - 5 - - R _ - toad-fedBariwla 5.00 04/81 09/81 n4/81 07/83 - - - - - S oo - - _ _ _ Road-fedIYhadaur 5.00 09/81 01182 09/81 03/81 - - - - - S 120 - - - - - Road-ted

irmni & Kashmir Rd-eAnantnag 5.no 10/82 Wu)84 Willi 11/14 - - - - - - 5 )o - - _ _

Ulttr Pradesht310 10/83 08/44 11"/1 19/84 - - - - - 10 -_ _

Sabranpur 45 oo2 08/80 (02/H2 (h0.* 02/82 - - - 12.0 .( 12 - - -n _Notternagat 50.300 03/79 n0/( 1 (12b12 - - - 4n0. on .0 nNeoll 50.00 11/84 09/85 Il/S4 03/87 - - - - - - s.on 10.0 0 00 5.0-

erobankl 25.00 01/81 05/82 O1/HI (19/81 - - - - - 2I.S 00 1(1 -

Schedute ActualDate of Date of

CapaIcit Deto Of casple- Date of couple- _____ear_________________w_________s_________hi________

Cantor/locatlo, pleaned start tcio start tion IS77/78 1976/79 1979160 1960(81 1981182 1962/83 1983/84 1984/85 1985/86 198VUL& 1987/88/a aeMarak

South Zone_Ifdta vri'ideab

50.00 02/79 32/80 02/79 09/82 - - - 20.00 20.00 10.00 - - - - -1araal 25.00 01.,79 09/81 01/79 09/82 - - - 25.00 - - - ---

Cberlapall 11 30.00 10/82 10/84 10/82 08/84 - 00 25.00 5.00Ibncbertal 10.50 09/83 07/84 09/83 07/84 - - - - - - 10.50 - --aleorade 30.00 07/83 02/85 07/83 03/87 - 25.00 - 5.00Cadivada 30.00 05/83 113/86 05(83 03/88 - - - - - -- - 30.00Cinikudlt 30.00 09/83 03/85 09/83 03/87 - 5.00 15.00 -

Ozacur 25.00 08/78 03/80 08/78 03/80 - - - 25.00VljayiSda 50.00 04/79 03/81 04/79 09/83 - - - - - 50.00 - - - - -

Iadaloadma5!3Imove t 50.00 0 06/8 02/86 - 50.00 - -

Colabatore 11 40.00 09/79 09f83 09/79 06/82 - 40.00Cojabatore Itt 20.00 11/83 02785 113/83 07/85 - - - - - 10.00 10.00 --Satpgdl 1 25.00 11/81 11/82 11/81 04/83 - - - - - 20.00 5.00 - - - -Satpadi 11 5.00 10/82 04/83 10/82 12/83 - - - - - - 5.00 - - - -Satpadl III 30.00 04/83 10/84 04/83 01/86 - - 5.00 25.00 - -

Keralauktta 1 13.34 12/80 12/81 12/80 09/82 - - - - - 13.34 -Olavkuttam 1I 12.00 10/83 01/85 10/83 09184 - - -°- -° 12.00 -Oloavaot I 20.00 12/79 04/81 12/79 07/82 - - - 10.00 10.00 - ----Olavakot It 7.50 10/83 08/84 10/83 06/85 - - - - - - - 5.00 2.50 - -Thtkkodt 1 20.00 09/80 01/82 09/80 06/83 - - - - - 5.00 15.00 - - - -lbikkodi 11 10.00 07/83 07/82 07/81 I1/83 - - 10.00 -T*bkkodi 1I 30.00 118/3 10/84 11183 12/85 - - - ' 0.00gArouaepelli 20.00 01/82 04/84 01/82 01/84 - - - - 5.00 15.00 1 - - -

Karnataka

qunrtezield I 50.00 07/83 07/85 07/83 01/86 - - 5.00 25.00llnbitf lpud tl 35.00 081/3 04/85 08/83 03/88 - - 10.00 - 10.00 15.00

east Zonegaal

50.00 04/81 04/80 04/81 07/84 - - - - I 3. 30.00 3 - * _Aaro It 30.00 08/83 02/85 08/83 W3/88 - - - - - - - 5 00 25.00 - -

OrtegaW-Flampur 25.00 10/78 03/81 W0/7 0)/SI - - 25.00 - - -R ail-fed

boarauguda 25.00 08/79 021/8 08/79 03/82 35.00 10.00 R.o S - Rond-fedBihar

gldhau 1 3125.00 08/ 851 1212 08/13 06/83 - _ - - 25.00 Ra.l- - - Rl-tedtotay1.pur 2ant 25.00 11/83 05/85 290/83 08/86 - 33845. 30.00 2 RaIl-d d

vEast Zone

-16mr asiu-425.00 12/78 04/80 12/70 12/81 - - 25.00 -- --- - Ri-fedItaral 50.00 03/84 03/88 03/84 03/88 - S .00 45.00 R8aall-fedEhiadva 50. 0 08/78 03/80 08/78 03/83 - - 0.00 - - - --- Rail-fedRajnaad8an 50.00 06/79 12/80 06/79 03/82 - - 0.00 20.00 - - ---- Ri-e

auauldcntrdote

Ogg-au'r- 25.00 04/79 04/80 04/79 03/84 - - - 3.00 - 0.00 -- - Rail-fedllardha It 50.00 08/83 08/85 08/83 03/86 - - - - - - - 25.00 25.00 - - Ratl-fedlanwel 1 50.00 03/83 03/83 03/81 03/87 - - - 10.00 10.00 - .00 20.00 5.00 - Rail-fedVassal II 45.00 I1/83 10/85 11/81 01i88 - - - - - - - 10.00 35.00 iRail-fedCondis 20.00 06/83 12/84 06/83 02/85 - - - - - 20.00 - - - Road-fedHlvaj 50.00 04/80 03/84 04/80 03/84 - - - 30.00 30.00 5.00 5.00 - -- Rail-fed

gii8Wldham I 35.00 03/83 06/84 03/83 06/84 - - 0.00 5.00 R ail-fiedGaadbtdlwa XX 35.00 11/83 05/85 33/83 02/86 - - - - - 35.00 Mt- Bil-edGodbra 10.00 10/83 08/84 10/83 08i84 - - - - -- 10.00 - - - p1-ed

total 2,270.04 43 290.MM 288.36 33o3 397.51 279.7 300.00 342.50

aprobabeprjctoeI3aod cooatrai5tg.

INDIA

SECOND FOODCRAIN STORAGE PROJECT (CREDIT 747-IN)


Details of Proposed and Actual Storage Cnr,conAnd Capacities - Regular Component -Selec.ted Sites(Cs7actty in '000 tons)


Capacity Date of comple- Date of comple- Year-wise achievementCenter/loc-tlon planned start tion start tion 1977/78 1978179 1979/80 198018/ 1981/82 t982/81 1983/84 1984/85 1985/86 19861871a 1987/Sl/a Remarks

North ZoneP.aryaoa

Sirsa 2.50 05/84 09/84 05/84 08/84 - 2.50 - _ Rod-fedVohana 1.25 05/84 09/84 05/84 08/84 - 1.25 - Road-fedBhivani 1.67 05784 11'84 OS/84 1084 - - - - _ _ 1.67 - _- Road-fedIlissar 1.92 05184 11/84 OS/84 10/84 - - _ _ 1.92 - - Road-fed8bhivnt Khera 5.00 07/84 01/85 07/84 Olt85 - - - - - - 5.01 - - Road-fedPantpat III 20.00 10784 06/85 10/84 06/85 - t - - £ .00 10.00 ° Road-fedPanipat IV 10.00 12784 .16/85 12/84 06/85 - - - - - - - 5.00 5.00 - - Ro0d-tedCurgaon 8.00 - - - 03/85 - - - - - - - 8.00 - - - Road-fedRohtnk 2.60 10/84 02/85 10/84 06/85 - 2.60 - _ Road-fedAmbala 1.28 10/84 02/85 t0/84 06/85 - 1.28 - - Road-fedPaIalW 1.67 10/84 02/85 10/84 03185 - - - - - - - 1.67 - _ _ Road-fedTaror1 2.95 10/84 02t85 10/84 04/85 - - - - - - - 1.67 1.28 - _ Road-fedPehove 6.67 10/84 02/85 10/84 04/SS - - - - - - - 5.10 1.67 - - Road-fedCheeka 5.00 10/84 02/85 10/84 06/85 - - - - - - - 1.34 1.66 - - Road-fedKa Itha l 1.25 10/84 02/85 10/84 02/85 - 1.25 - _ _ Road-fedSa idon 12.50 l0/84 02/85 10/84 06/85 - -1000 2.50 - Road-fedPartdabad 10.00 10/84 02/85 10/84 06/85 - Road-fed

J& rP'u-r 2.78 09784 05/85 09/84 05/85 - - - - - - _ - 2.78 - - Road-fedJodhpur 2.78 12/84 02/85 12/84 02/85 - - - - - - - 2.78 - _ _ Road-fedSujangarh 1.34 12/84 02/85 12/84 02/85 - - - - - - - 3 34 i t Road-feditkaner 2.50 09/84 06/85 09/84 04/85 - - - - - - - - 2.50 - - R"d-fedSwalsdhopur 10.00 03/84 12/85 03/84 03/86 - -0.00 - - Road-fedPunl b

1.67 02/84 06/84 02/84 11/84 - - _ _ _ _ - 1.67 - R - Road-fedLadulra 3.34 03/84 08'84 03/84 11/84 - - - - - - - 3 34 - - Road-fedLakhewIL1 5.00 02/84 09/84 02/84 12/84 - - - - - - - 5.00 - - - Road-fedUh4dour 1.67 02/84 08,84 02/84 08/84 - - - - - - - 1.67 - - - Road-fedialout I 10.00 03/84 06/85 03/84 06/85 - - - - - - - 5.00 5.00 - - Road-fedRajpura Is 20.00 02/84 06/85 02/84 06/85 - - - - - - - 15.00 - - - Rod-fedTanda Urmr It 10.00 02/84 11/84 02/84 03/85 - - - - - - - 10.00 - R - oad-fedhaloud 6.67 02/84 03/85 r2/84 03/85 - - - - - - - 6.67 - - Road-fedRoran ala 3.34 03/84 08/84 13/84 02/86 - - - - - - - - 3.34 - - Road-fedNia gi3r 1.15 05/84 10/84 03/85 - - - - - - - 1.15 - - - Road-7fedLohinkhas 1.67 - - - 12/84 - - - - - - - 1.67 - R - Rodd-fedDudbam (1.25+2.24) 3.49 09/84 11/d4 .8/84 01/85 - - _ _ _ _ _ 1.25 - 2.24 - R6ad-fed02/85 06/85 0/8l5 09/85Abohar 1.67 05/84 09t84 05/84 03/85 - - - - - - - 1.67 - - - Road-fedDhasuys 11.27 02/82 06/R2 02A82 02/86 - - - - - - - - £1.27 - _ Road-fedFaTidkot 3.34 08/84 01!85 0)8/84 05/85 - I - - - - 3.34 - Road-fedBarltala 8.34 11/84 06/85 11/84 07/85 - - - - - - - - 8.34 - _ Road-fedSultanpur Lodhi 3.34 10/84 06/85 10/84 07/85 - - - - - - - - 3.34 - - Road-fedahbalkslan 1.67 07/84 01/85 (17/85 01/85 - - - - - - - 1.67 - - - Road-fedLodowall 4.46 12/84 07/75 12/84 07/85 - - - - - - - - 4.46 - - Road-tedCilnarthal 1.67 07/84 i1/85 07/84 02/85 - - - - - - 1.67 - - - Road-fedBatcala 1.67 08/84 O5/85 08/84 04/85 -- - 12.67 - - OAd-f.Jhoshiaepur 10.80 - - - 06/85 - - - - - - - 5.00 5.50 - - Road-feJUiogpur 8.20 - - - 06185 - - - - - - - - 8.20 - - Road-fedZira 1.67 02/85 06/85 02/85 06/85 - - - 1.67 - Road-fed

Schedule e ActualDate of Date of

Capect:y Date of cople- Date of comple- Year-vise schlvematCenter/location plaond stert tion start tlon 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 19"3184 1984/85 1985/86 1980687k 19S71/8js RleUa

poth Zone (cont'd)Puniab (cont'd)

Nihala haAlpwo 1.25 0A/6S 07/8S 03/85 06/85 - - - - - - - - 1.25 - Rood-fedRajpurs 3.34 02/85 06/85 021WAS 05/6 - - - - - - - 3-34 - 6d-fedChannaur 2.24 02/85 06/85 02185 05/8S - - - - - - - - 2.24 l Rood-fedTalwandi Nat 2.24 02/85 06/8S5 02/85 06/86 - - - 2.24 - - d-fedKlilaraIpUr 2.50 03/85 07/85 03J85 06/85 - - - - - - - 2.50 - Road-fedGill load 1.07 03/SS 07/85 03Wa5 06/85 1d - -1ld-fedbanaur 3.34 02/85 06/85 02/85 06/85 - - - - - - - - 3.34 - - lord-tedUhucbu 4.46 03/85 07/85 03/85 05/85 - - - - - - - - *.46 _ _ Road-fed

Jamu lKashmlrJuom 'Swi0 6.68 01/84 06/85 01/84 11/84 - - - - _ _ - 6.68 - - Road-fed

Uttar Pradeshlaibareilly 10.00 04/84 0S/85 04/84 06/85 - - - - - 10.00 Rall-fedVyae Nagar 5.00 07/84 10/85 07/84 0/85 - - - - - - - - 5 00 -d-fed

Saharanpur 10.00 - - 0685 7.50 2.50 R _ Rail-fedOedri 11.20 - _ - 06/85 - - - - - - - 10.00 1.20 - - load-fedbastt 10.00 - 06/85 -500 500 d-edGor.khpur 10.00 - - - - - - _ _ _ - - 10.00 - - oad-fedShehb]abnpur 7.20 - - - 06/85 - - 7.20 - l load-fedJeaporo 8.20 - 06/85 - - - - - - - - 8.20 - oad-fed

Celhl 25.00 05/84 09/85 05184 06185 - - - - - - - - 25.00 R - ail-fed

South 2oeAdra desh

Sanasilemar 3.25 08/83 04/84 08/83 09/84 - - - - - - - 1.25 - R _ load-fedL.C. Depot 1.67 02/83 08183 02/83 09184 - - - - - - - 1.61 - _ load-fed n

heona 2.50 02/83 08/83 02/83 09/84 - M - - - - 2.50 - _ - Road-fedEleru 0.64 05/83 12/83 05/83 07/84 - - - _ - _ _ 0.U -6 - load-fedNtdadavole 1.2S 03/84 09/84 03/84 07/84 - - - _ _ _ 1.25 - - - Road-fedAmadalavalaa 2.31 10/83 05/84 10/83 07/84 - - -4 _ _ - 2.31 - load-fedonsole 5.00 e 0/85 I2/8S 02/85 06/85 - - - - - -W - 5.00 - - Road-fedT4d4palltgudm 10.00 - 03/86 - 03/85 - - - - - - - 10.00 - - - stlfedViJaywada 20.00 - 03/86 - 0387 -- -_0.00 - ld-fedPalakolu O.6 06/83 12/83 06/83 03/85 - - - - - - - 0.64 - - - oad-ed

KarnatakaHubil 1.67 08/82 04/83 08/82 08/S -- 1.67 - - Road-fedK.b. Puran 1.28 02/84 12/84 02/84 06/85 - - - - - - - - 3.28 - - Road-fedhaddur 1.22 05/84 03/85 05/46 12/85 - - - - - - - - 1.22 - Road-tedShlaoSa 3.28 03/84 01/8S 03/84 03/85 - - - _ _ _ _ 1.28 _ - - bad-fedhadravtl 0.64 0/84 0/85 05/84 06/85 _ _ - 0.64 - - Road-fed

East 20nvast BaitaRl

*3hareipur 5.00 06/8 --. 00 - - Road-fed

_ Orissa,Mxpur 15.00 - - - 06.85 - - - - - - - - 35.00 - - Road-fedIhrda band 1.28 06/82 - 06/82 05/84 - - _ _ _ _ _ 1.28 - - - lod-fed

BiharIEabad 3.34 01/82 04/82 bl82 04/84 - - - - - - - 3.34 - - Road-fed

* EU

Schedule AetualDate of Date of

Capae1ty Data Of couple- Date of eople- Year-vlse achieveaotCenter/location plaoed start tlon start Ulon 1977178 1978/79 1979/80 1980/81 1951182 1982/83 1983/84 1984/85 1985186 1986/87ta 1987i881a Remarks

Vast zone*1HadhYa Ptadosh

UJialo 5.00 07/84 - 07/84 06/85 - - - - - - - - 5.00 - - Road-tedxhandwa 40.00 - - - 03/85 - - - - - - - 40.00 - - - Rail-fedbbopal 10.00 - - - 06/85 - - - - - - .00 5.00 - - Read-fed8urhenpur 7.70 - - - 03/85 - - - - - - - 7.70 - - - Roa4-fedshat6para 4.40 - - - 03/85 - - - - - - - 4.40 - - - Road-fedKarat Road 5.00 11/84 03/85 11/84 06/85 - - - - - - - - S.00 - - Road-fedDiabrarpur 5.00 11i84 '3/85 11/84 06/85 - - - - - - - - 5.00 - - Road-fedDur$ 3.34 11/84 03/85 11/84 06/85 - 34 Road-felRalpur 1.25 11/84 03:85 11/84 06t85 1.25 Road-fedRaJnaodgaon 1.67 11/84 03/85 11/84 06/85 - - - - - - - - 1.67 - - Road-feddllaspur 5.00 11184 3tss 11/84 10/85 - - - - - - - 5.00 - - Road-fedBlha 3.34 11/84 031/5 11/84 06/85 - - - - - - - - 3.34 - - Road-tedKataogt 3.34 11/84 03Was S 1/84 06185 - - - - - - - - 3.34 - Road-fedwelaghat 1.67 11184 03/85 11/84 06/85 - - - - - - - - 1.67 - - Road-ted

8etul 5.00 11/84 03/85 11/84 06/85 - - - - - - - - S.00 - . - Road-fed

ahar astraIraj 30.00 - - - 03/85 - - - - - - - 30.00 - - - Rail-fed

gu1arat!Ishaao 1.12 09/84 02285 09/84 03/85 - - - - - - - 1.12 - - - Road-fedbarode 2.24 11/d4 05/85 11/84 05/85 - - - - - - - - 2.24 - - Road-fedpalanpur 1.96 11/84 04/85 11/84 04/85 - - - - - - - 1.96 - _ R"d-fedC odhra 2.24 09/84 O0f85 09/84 03/85 - - - - - - - 1.40 - - t.84/b Road-fadAnaad 12.50 - - - 06/85 - - * - - - - 10.00 2.50 - - Road-fedJamnagar 7.70 - - - 06/85 - - - - - - - 7.70 - - - Road-fedBhavnagar 7.00 - - - 06/85 - - - - - - - - 7.00 - - RoAd-fed

Total 610.52 - - - 312.43 275.02 22.24 n.84

/a Probable projections.

/b Land constrainta.

ItI)

ANNEX P-53 Table 4a

INDIA

SECOND FOODGRAIN STORACE PROJECT (CREDIT 747-IN)


Center-wise Details of Rallway SidinRs(Including Land Costs)

(Rs lakh)

Total Probable Date of AA & ESCenter/state/ capacity cost of completion/antici-zone/agency ('000 tons) M & ES completion pated completion

North ZdheHaryanaFCIP nipat I 25.00 133.77 154.42 05/80, 09/83Panipat II 10.00 Narwana I 25.00 } 85.17 103.42 04/81, 12/85Narwana II 25.00 }

CPWDSirsa 25.00 43.68 48.92 06/84, 1986/87Kalthal I & II 50.00 41.86 72.06 06/80, 06/85Kaithal III 20.00 1

PunJabFCIChakkl Sank 50.00 42.09 64.09 03/80, 07/86Amritsar 50.00 115.34 137.34 06/84, 1986/87Nabha 50.00 100.40 122.40 06/84, 1986/87

CPWDSahnewal 50.00 133.88 148.88 03/80, 12/83Dhuri 50.00 40.46 62.46 03/80, 1987/88Kotkapura I 50.00 60.00 79.80 09/82, 1986/87Kotkapura II 30.00 1Patiala 50.00 147.40 169.40 03/80, 01/86

Uttar Pradesh

Saharanpur 45.00 118.15 120.40 03/81, 1986/87Muzaffernagar 50.00 83.53 98.03 03/80, 11/84Neoll 50.00 106.77 128.77 06/84, 1986/87

CPWDBarabanki 25.00 29.54 40.54 03/82, 1986/87

Selected SitesPun jab CPWDMalout 1 20.00 41.30 45.90 07/84, 1986/87

Delhi FCIChevra 25.00 140.00 154.00 06/84, 1986/87

54 - Table 4b

INDIA


PROJECT. COMPLETION REPORT

Center-wise Details of Railway Sidings(Only Land Cost)

(Re lakh)

Center/state/ Total capacltyzone/agency ('000 tons) Land cost

North ZoneRaryana

* CIKurukshetra 30.00 3.60

PunJabFCI

Moga l5.00 6.60

CPWDRajpura I 25.00 3.00Sangrur 10.00 4.40Naleekotla 10.00 4.40Tanda Urmer 20.00 8.80Tanda Urser SI 10.00 0.80ialoud 6.67 4.40

Jammu & KashmirAnantnag 5.00 2.40

RalasthanFCI

Ajaer 15.00 6.60

CPIDSwaimadhopur 10.00 4.40

Uttar PradeshFCI

Eeawah 10.00 4.40

CPWDRaibarelli 10.00 2.10Vyas Nagar 5.00 2.20

West ZoneMaharastra

FCICondia 20.00 0.40

GuiaratGodhra 10.00 0.60

Subtotal 59.10

GRAND TOTAL 6.130.43

Notes Land cost Rs 865.07 (lakh) and railway sidings Ra 5,265.36 (lakhs).

55 Table 5

INDIA



Year-wise Project Implementation Details

Physical(million tons) Financial (Rs million)

Estimated Estimated Actualprogress Actual outlay program expenditures

Retroactive Works

1977/78 } 0.015 n.a. 53.51978/79 0.645 0.526 n.a. 147.01979/80 } 0.089 n.a. 185.01980/81 } 0.015 n.a. 385.5/a

Regular Construction(Both Agreed andSelected Sites)

1980/81 0.500 0.435 202.5 205.81981/82 0.500 0.290 194.0 132.91982/83 0.400 0.288 205.0 204.41983/84 0.400 0.338 210.0 229.81984/85 0.600 0.710 440.0 502.41985/86 0.563 0.554 250.0 300.61986/87/b 0.102 0.102 200.0 200.01987/887b 0.140 0.140 88.6 88.6

Total 2,250.0

n.a. = Not available.

/a Rs 147.0 million represents expenditures on retroactive works and thebalance for new centers.

/b -Probable projections.

ANNEX P- 56 - Table 6

INDIA



Storage Capacities Built Under theRetroactive Financing Component - Abstract

Physical/capacities Capital expendituresconstructed (mln tons) incurred (Rs million)

1977/78 .015

1978/79 .526

1979/80 .089

1980/81 .015

Total .645 147.0

ANNEX P57 Table 7

INDIA



Statement ShowiLg the Financial Sources

Expenditures Amount claimed Amount disbursedincurred for reimbursement by World Bank

(Rs million) (Rs million) (US$ million)

1977/78 53.5 -

1978/79 147.0 - 4.272

1979/80 185.0 128.4 9.154

1980/81 205.8 76.2 9.578

1981/82 132.9 67.6 9.367

1982/83 204.4 110.3 11.018

1983/84 229.8 92.5 8.324

1984/85 502.4 325.9 26.089

1985/86/a 300.6 307.2 27.709

Total 1,961.4 1,108.1 104.511

Probable During

1986/87 20.00

1987/88 8.86

GRAND TOTAL 2,250.0

- Figures up to December 31, 1985.

ANNEX P-58 Table 8

INDIA



Number of Rail-fed Centers Where Siding Works arenot yet Completed (as of December 31, 1985)

Total number of centers originally considered/selected for railway siding provision 56

Number of centers added during the execution stage 12

Number of centers dropped form the selected list 24

Number of centers where railway siding works arefully completed 11 (15 sidings)

Number of centers where railway sidings are stillin progress 33 (43 sidings)

world bank document · pdf filereport no. 7579 project completion report ... pid -project...

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