NEW DELHI: The Union Government has decided to establish village grain banks in chronically food scarcity areas to safeguard against starvation during natural calamities or in the lean season.

Gram sabha/panchayats, self-help groups or non-governmental organisations will set up the banks in government-notified villages.

An executive committee comprising three or four members of the bank including at least one woman will manage it. The committee will lend rice, wheat or coarse grain/millets to its members, maintain accounts and recover foodgrains.

The scheme envisages inclusion of all "willing" below the poverty line and Antyodaya Anna Yojana families as members. The estimated cost of setting up each bank is Rs. 60,000, which includes the transportation cost, 50 per cent of which will be borne by the State Government.

The Centre will provide each bank, meant to cater for an average number of 40 families, 40 quintals of foodgrains as a one-time grant.The allocation will be one quintal a family.

Besides foodgrains, Rs.1,800 as transportation cost, Rs.1,400 as training expenses, Rs.6,000 for storage, weights and scales and Rs. 3,000 as monitoring and administrative cost will be provided to each bank, Minister of State for Food and Public Distribution Akhilesh Prasad Singh said in his reply to a question in the Rajya Sabha.

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