CHAPTER-VII

TAMIL NADU CIVIL SUPPLIES CORPORATION LIMITED

The Tamil Nadu Civil Supplies Corporation was incorporated on 24^th April 1972 under the Companies Act, 1956. Later, in 1975 it was converted as a State owned public sector undertaking. The main functions of the Corporation are procurement of essential commodities, storage, movement of stocks to godowns and transporting the stocks to fair price shops. It also procures and distributes pulses and other commodities required for the various welfare schemes of the Government.

The Managing Director and the Board of Directors of this Corporation are appointed by the Government of Tamil Nadu. For administrative convenience and decentralization, the Corporation has 31 Regions headed by Senior Regional Managers / Regional Managers in the cadre of District Revenue Officers / Deputy Collectors. There are 8,543 regular employees on the rolls of the Corporation.

Public distribution system

Tamil Nadu Civil Supplies Corporation is the wholesale agent of moving commodities like Rice, Wheat from the depots of Food Corporation of India and sugar from sugar mills to its 210 operational godowns and distribute it to Public Distribution System outlets. Tamil Nadu Civil Supplies Corporation is also running 1172 public distribution system outlets in the state.

Special scheme to supply dhall, oil and fortified atta

A special scheme was launched from 14.4.2007 and essential commodities like Toor dhall, Urad dhall, Palmolien oil are procured and supplied by Tamil Nadu Civil Supplies Corporation through public distribution system at a subsidized rate.

Under this special scheme, the Corporation procures and supplies Toor Dhall, Urid Dhall, Palmolien Oil and Atta to the PUBLIC DISTRIBUTION SYSTEM outlets. Upto 29.2.2008, about 31,759 M.Ts. of Toor Dhall, 16,475 M.Ts. of Urid Dhall and 274 lakhs litres of Palmolien Oil in one litre pouches is procured and supplied to the PUBLIC DISTRIBUTION SYSTEM outlets. 1070 M.Ts. of fortified atta had been milled and supplied to the PUBLIC DISTRIBUTION SYSTEM outlets upto 29.2.2008.

Procurement of paddy

Under decentralized procurement, paddy is procured from the farmers at the rates fixed by the Government through direct purchase centres. The paddy procured is hulled by 23 modern rice mills owned by the Corporation and by private hulling agents and distributed through public distribution system reckoning it as allotment from the central pool.

( All in MTs)

Introduction of Electronic scales in the Direct Purchase Centres

To ensure correct weighment while procuring Paddy in the Director Purchase Centres Government permitted to purchase 1,100 Nos. of 200 kg Electronic platform scales at a cost of Rs.77 lakhs during 2007-08. As on 31.3.2008, 960 scales were received and put to use in the Direct Purchase Centres.

Modern rice mills and hulling of paddy

The Corporation has 23 Modern Rice Mills. The average hulling capacity of these mills is 35,000 M.Ts. per month. During 2006-2007, 2,39,943 M.T.s of Paddy was hulled in Modern Rice Mill. During 2007-2008, upto February 2008, 1,48,725 M.Ts. of Paddy was hulled in Modern Rice Mill.

Supply of Cement to control price

In order to control the rising price of Cement, Government has started to sell Indigenous Cement at concessional price at Rs.200/- per bag. As on 31.3.2008, about 48,486 M.Ts. sold and 10,597 MTs available at Tamil Nadu Civil Supplies Corporation Godown. Further the Government have ordered to purchase 1 Lakh M.Ts of Cement from Pakistan through Minerals and Metals Trading Corporation and to sell the Cement at the cost price of Rs.220/- per bag. As on 31.3.2008, about 5,806 M.Ts. sold and 2,313 M.Ts. available at Tamil Nadu Civil Supplies Corporation Godown.

Storage facilities

There are 210 operational godowns run by the Tamil Nadu Civil Supplies Corporation. Out of these, 167 godowns having a capacity of 4.79 lakh MTs are owned by Tamil Nadu Civil Supplies Corporation and they are all scientific godowns. Out of the remaining 43 godowns functioning in the rental buildings, 10 godowns are functioning in the buildings owned by TNWC which are also scientific. The remaining 33 godowns are unscientific and needs to be replaced with new scientific godown facilities.

Tamil Nadu Civil Supplies Corporation is taking action to construct scientific godowns by securing suitable land in a phased manner. In the following places, where unscientific godowns are under occupation, owned godowns are under construction with a capacity noted against each and they are all nearing completion.

Now construction of one godown at Gudiyatham, Vellore district with a capacity of 1,500 Mts is commenced. The Tamil Nadu Civil Supplies Corporation is trying to secure land in the belt areas of Chennai City to overcome the congestion prevailing in Chennai City godowns. To improve the efficiency of loading, unloading and stacking operations and to reduce the time of operation, "Mechanical Portable Conveyer and Stacking System" has been installed in the godown at V.K.Puram, Madurai District and at Anna Nagar in Chennai. They are functioning well and it has been proposed to introduce them in all godowns in a phased manner, since this system reduces the handling time by 50%.

Monitoring the vehicles carrying essential commodities

(i) Monitoring through Short-Message Service (SMS)

In order to ensure the prompt movement and to prevent diversion of rice during movement from Food Corporation of India depots to Tamil Nadu Civil Supplies Corporation. godowns the Short .Message .Service system of exchanging the information on the despatch and receipt of vehicles was introduced during 2007-08. All the staff deputed to Food Corporation of India., godowns have been given 24 mobile hand sets to send the details of despatch of lorries from Food Corporation of India depots. The staff in Tamil Nadu Civil Supplies Corporation godowns numbering 229 have been provided with mobile hand sets to watch the arrival of lorries in the godowns and report receipt details. The system is also monitored at all 31 Regional offices of the Corporation and at the Head office. These information are recorded in the website online and can be downloaded in report form. The system is found to be useful in detecting any delay or diversion during transit.

(ii) Monitoring through Global Positioning System (GPS)

In Thiruvallur and Krishnagiri districts, a pilot project will be launched shortly to monitor and track vehicles movement through Global Positioning System. Mapping work is in progress. With the help of the Global Positioning System device the vehicles can be tracked where ever they are, from any where in the State. The system generates reports on tracking the lorry, unnecessary halts, route violations etc. by recording the information online. Its functioning and usefulness will be evaluated for its extension statewide at appropriate time.

Other activities

Rice and other commodities to the various welfare schemes implemented by the Government viz., Puratchi Thalaivar MGR Noon Meal Programme, old age pensioners schemes, Integrated Child Development scheme, SC / ST students hostels are supplied by the Tamil Nadu Civil Supplies Corporation every month. The Tamil Nadu Civil Supplies Corporation also procures and distributes essential commodities required by the personnel of Police, Fire Service, Prisons and Forest Departments under the Public distribution system. Besides, the Corporation is running retail shops, and kerosene bunks for public distribution system, Petrol / Diesel bunks are run in Cuddalore, Vellore, and Thanjavur Districts and gas units are run in Tiruvannamalai, Trichy, Ooty, Ramanathapram and Kancheepuram Districts.

The Corporation also purchases and sells non-rationed commodities at reasonable prices to the public through its Amudham Departmental Stores. It also moves rice from the godowns of Food Corporation of India for issue under the Government of India’s schemes of Sampoorna Gramin Yojgar Yojana, Annapoorana and Antyodaya Anna Yojana.

Financial status

The present authorized capital of the Corporation is Rs.50 Crores. Of this, the paid up capital is Rs.38.68 crores as on 31.03.2008. During 2007-2008, the Government sanctioned Rs.1,950/- crores as subsidy, Rs.900 crores as Ways and Means advance for paddy procurement to the Tamil Nadu Civil Supplies Corporation.

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CHAPTER-VIII

TAMILNADU WAREHOUSING CORPORATION LIMITED

The Tamil Nadu Warehousing Corporation was established under the Agricultural Produce (Development and Warehousing) Corporation Act 1956, which act was subsequently replaced by Warehousing Corporation Act 1962. The Corporation commenced its activities with effect from 2-5-1958.

The Tamil Nadu Warehousing Corporation headed by the Chairman and Managing Director has its head quarters at Chennai and 7 Regional Officers at Cuddalore, Dindigul, Kancheepuram, Mettupalayam, Salem, Tiruchy, and Thirunelveli. Tamil Nadu Warehousing Corporation is carrying out the following functions.

1. With a view to reduce losses of grains in storage the Corporation acquires land and builds warehouses on Scientific lines at potential places after conducting market surveys. The Corporation is operating 61 warehouses in the state.

2. Provides negotiable paper, i.e. warehouse receipts to producers, dealers and others to get credit facilities from the banks.

3. The Corporation appoints Handling and Transport Contractors for clearing the goods, loading/unloading and transportation of stocks for the convenience of depositors.

4. The Corporation also carries out disinfestations services in their own godowns as well as in various Government and private buildings under Disinfestation Extension Service scheme.

Organisation set up

The general superintendence and management of the affairs of the Corporation vest in the Board of Directors comprising five Directors, each nominated by the Central Warehousing Corporation and the Government of Tamil Nadu. The Chairman and Managing Director is appointed by the State Govt. from among the Indian Administrative Service officers (Super-time Scale). The Board acts on business principles having regard to public interest and is guided by such instructions on question of policy as may be given by the State Government or Central Warehousing Corporation.

The Warehouses are manned by technically qualified Warehouse Managers and other supporting staff. For exercising direct supervision, the warehouses are periodically inspected by Senior Regional Manager/Regional Managers. For effective control, vigilance/flying squad and internal audit wings conduct periodical and surprise inspections.

Storage Capacity and utilization

The storage space available in the Warehouses of Tamil Nadu Warehousing Corporation located at 61 places (spread over Tamil Nadu) is utilized by various depositors including Government agencies such as Food Corporation of India, Tamil Nadu Civil Supplies Corporation Ltd., Tamil Nadu Text Book Society Ltd., Tamil Nadu State Marketing Corporation Ltd., National Agricultural Federation, Telecommunications, Sugar Mills, Minerals and Metals Trading Corporation, Fertilizer manufacturing Companies, Cement consuming Departments, Election Department, The Tamil Nadu Handloom Weavers Coop. Society Ltd, traders/merchants and farmers. Apart from that nearly fifty private depositors have also been utilizing warehousing facilities of Tamil Nadu Warehousing Corporation during the year 2007-08.

The details of storage capacity and its utilization are furnished below as on 14.3.2008 is as follows:-

(in M.Ts.)

Storage capacity (owned) 6,05,404

Storage capacity (Hired) 30,511

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Total 6,35,915 --------------

The percentage utilization of godown was 87% from April, 2007 – February, 2008.

Business Development and New Business initiatives

The Tamil Nadu Warehousing Corporation has undertaken Management services in the campus of M/s Savorit India Ltd from December 2007. The Tamil Nadu Warehousing Corporation has been successfully manning/operating the warehouse belonging to M/s Chennai Petroleum Corporation Ltd at Ekkattuthangal , Chennai for the second year of the two year contract awarded by the Chennai Petro Chemical Limited w.e.f. 1.7.2006. This Operation includes transportation of paraffin wax stocks from the Chennai Petro Chemical Limited’s plant at Manali storage at Ekkattuthangal warehouse and distribution to various Chennai Petro Chemical Limited dealers in and around Chennai. For the past two years this corporation has been successfully carrying out the contract of carrying and forwarding agent contract awarded by M/s Indian Oil Corporation for their lubricant products at Madurai covering sixteen revenue districts of Madurai, Sivaganga, Theni, Ramnad, Dindigul , Tiruchy, Tanjore, Tiruvarur, Nagapattinam, Tuticorin, Tirunelveli, Virudhunagar. Pudukottai, Perambalur, Kanniyakumari and Karaikal. This contract commenced from 1.7.2005 and will be inforce for a period of 5 years.

Construction of new/additional godowns

The construction of an additional godown with a storage capacity of 6250 MTs at Dharmapuri was completed and handed over to Tamil Nadu Warehousing Corporation on 31.1.2008 and the godown was let out to a depositor on long term basis with effect from 1.2.2008. For construction of additional godowns at Palladam with a capacity of 3,400 MTs and at 2,000 MTs. godown at Avinashi, the second stage (tie beam level) has been completed and it will be completed in the first quarter of 2008-09. Apart from that by taking into account of demand for storage space and also in view of secured business potentialities at Dindigul, it has been decided to construct additional godowns with a capacity of 2,000 MTs at Dindigul at a cost of Rs.77.00 lakhs during the year 2008-09.

Financial resources

The authorized Share Capital of the Corporation is Rs 800/- lakhs. The paid up Share Capital is Rs 761/- lakhs. The Government of Tamil Nadu and the Central Warehousing Corporation are the two equal share holders on 50:50 basis.

This Corporation earned its highest profit of Rs.652.68 lakhs for the year 2006-2007. The Board of Directors have resolved to declare 6% of dividend to the Shareholders for the year 2006-2007. The dividend for the year 2006-07 amounting to Rs.45.66 lakhs (ie., Rs.22.83 lakhs to State Government and Rs.22.83 lakhs to Central Warehousing Corporation New Delhi) has been paid to the shareholders on 14.1.2008. By taking into account the past nine months performance, during this year (2007-2008) it is expected that the same profit trend will continue during the year 2007-08 as well.

Training and computerization

During the financial year 2007-2008 several employees were deputed for various trainings in institutions like Indian Grain Management Research Institute (Hyderabad), Central Warehousing Corporation (New Delhi), and Anna Institute of Management.

The Corporation has also taken steps for computerization of all sections. Moreover at Head Office level to minimize paper work, the maintenance of Personal Registers and other allied activities are done through Computers. E- mail facilities have been provided to all Regional Offices. It is proposed to give Internet facility to all Warehouses for efficiency in Management Information system. Efforts are on to ensure that all communications between the Head Office and the Regional offices and the Government will be through e-governance.