Government raises the authorised capital of FCI to Rs 10,000 crore

Reader's Pick

In an attempt to infuse the additional capital in its state-owned company, the Government of India has increased the authorised capital of Food Corporation of India (FCI) to Rs 10,000 crore from Rs 3,500.

According to the officials, “The decision to increase the FCI’s authorise capital was approved in the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister of India Narendra Modi.”

The statement by the official said, “The increase in the authorised capital, will allow infusing the additional equity capital in the FCI through Union Budget. To fund the foodgrains stock, perpetually held by the FCI.”

- Advertisement -

“This will reduce the borrowings of the FCI, save its interest cost and reduce food subsidy,” the statement added.

FCI was constituted under the Food Corporations Act 1994 to ensure the Minimum Support Price (MSP) to farmers and to maintain a buffer stock of foodgrains besides the distribution of foodgrains under the National Food Security Act and other welfare schemes of the central government.

Further adding to the statement, the official said that “The operations of the FCI require maintaining perpetual stock of foodgrains which needs to be funded by the Government of India through equity or long-term loan.”

- Advertisement -

Read latest Business News and Startup news on TechGraph. Watch live and latest news on TechGraph TV. Follow us on Facebook or follow us on Twitter and Instagram. Listen audio news from TechGraph Briefings on Spotify, Google Podcast, Amazon Music & on Apple Podcast.
 

Krishna Mali
Krishna Mali
Founder & Editor of TechGraph.

Latest News

Promoted Links

Related Stories

Bank of Japan keeps monetary policy steady, brings new forward guidance on rates

The Bank of Japan kept its monetary policy steady on Thursday but introduced new...

Employees union seeks FIR against Jet Airways boss Naresh Goyal, Vinay Dube and on SBI Chairman

The employee union of Jet Airways, which is facing its worst crisis, Friday sought...

Japan approves 26 trillion yen as economic stimulus package to combat overseas risks

Japan's cabinet approved an economic stimulus package worth 26 trillion yen ($239 billion) with...

Samsung Electronics asks its shareholders to use electronic voting for upcoming AGM

Technology giant Samsung Electronics has adopted electronic voting for the first time ever for...

Rahul Gandhi hits on RCEP says, ‘Make in India’ has become ‘Buy from China’

Asserting that "Make in India" has become "Buy from China," Congress leader Rahul Gandhi...

CASHe launches WhatsApp-based instant credit line services

India-based credit-led Ai-driven fintech platform, CASHe has announced the launch of Ai-powered chat capability...

Budget 2022-23: Banking, NEO Bank & NBFC Sector Expectations

Banking, Neo Bank & NBFCs sector expectations from Budget 2022: As Union Finance Minister...

Maruti Suzuki plans to increase vehicle prices from next month

India’s leading automaker Maruti Suzuki has decided to increase the prices of its vehicles...

How to choose top payout casinos online

Each casino sets its conditions for the withdrawal of winnings. However, all gambling clubs...

Ampere Electric to setup e-mobility manufacturing plant in Tamil Nadu

Electric Mobility Company Ampere Electric has announced a phased investment potential of Rs 700...

Adtech startup ExperientalEtc raises $200K from StartupLanes

Mumbai-based Adtech startup, ExperientalEtc has raised $200K in series seed round funding led by...

Almirall onboards Mercedes Diz as VP of Corporate Strategy

Spanish biopharmaceutical company, Almirall has announced the appointment of Mercedes Diz as Vice President...

4 Top Challenges in a Small Business

Running a small business is not easy. You will face many challenges along the...

How Ginesys retail ERP Software Can Solve 7 Common Manufacturing Problems

The retail industry is undergoing a massive transformation. Customers nowadays prefer shopping through multiple...