To take care of increasing levels of production/procurement of foodgrains and to reduce the dependence on Cover and Plinth (CAP) type of open storage for foodgrains, the Department of Food and Public Distribution, Govt. of India has implemented a scheme, namely Private Entrepreneurs Guarantee (PEG) Scheme, for augmenting the storage capacity of FCI in PPP mode. 

The scheme was started for non-DCP states in 2008 and then extended to DCP states. Construction of godowns is done by private investors or CWC/SWCs without any investment by the Government. Return on investment is earned by the parties through rent, as FCI hires the godowns for a guarantee period of 10 years for private parties. For Public Sector agencies it is 9 years.

Under the aforesaid scheme, as per direction of the Dept. of Food & Supplies, Govt. of West Bengal the West Bengal State Warehousing Corporation has so far taken over three such godowns constructed under PEG scheme from three private entrepreneurs at three different locations for the storage of foodgrains by executing necessary agreements with FCI and private entrepreneurs as detailed here under.