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

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.”

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

- Advertisement -

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.”

Subscribe to our Newsletters

We don’t spam! Read our privacy policy for more info.

- 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

Paytm Payouts transfers Rs 1,500 crores

India-based e-wallet company, PayTM said, "Its Paytm Payouts has transferred ov...

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 ($2...

Sino-US trade war offers Europe’s chance to bank more Chinese reserves: Analysis

Should European countries want the euro to replace the dollar as the world's do...

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

Technology giant Samsung Electronics has adopted electronic voting for the firs...

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 Rah...

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 sou...

Rajesh Bysani joins Brainly as its new CPO

A New York headquarter peer-to-peer learning platform, Brainly has announced th...

NPCI’s new 1.1% interchange fee on UPI PPIs receives mixed reactions from industry experts

A move by the National Payments Corporation of India (NPCI) to charge an interc...

Interview: Muthoot Finance Dy MD Alexander George says, “Monthly customer transactions double to 8.25 lakh”

In an interview with TechGraph, Alexander George Muthoot - Deputy Managing Dire...

Passwordless authentication platform 1Kosmos sees significant growth in India

1Kosmos, a leading multi-factor authentication solution provider has reported a...