New Delhi [India], November 6 : The Union Cabinet has approved an infusion of equity of Rs 10,700 crore for working capital in Food Corporation of India (FCI), in the financial year 2024-25.
The government said this decision was made at the weekly Cabinet meeting to bolster the agricultural sector and ensuring the welfare of farmers nationwide.
FCI started its journey in 1964 with authorised capital of Rs 100 crore and equity of Rs 4 crores.
The operations of FCI increased manifolds resulting in an increase of authorised capital from Rs 11,000 crores to Rs 21,000 crores in February, 2023.
The equity of FCI was Rs 4,496 crores in financial year 2019-20 which increased to Rs 10,157 crores in the financial year 2023-24.
Now, the central government has approved significant amount of equity which will strengthen it financially and will give a big boost to its initiatives.
FCI plays a key role in ensuring food security by procurement of food grains at Minimum Support Price (MSP), maintenance of strategic food grain stocks, distribution of food grains for welfare measure and stabilization of food grain prices in the market.
"The infusion of Equity is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively. FCI resorts to short term borrowings to match the gap of fund requirement. This infusion will help to lower the interest burden and will ultimately reduce the subsidy of Government of India," said the government.
In another decision, Union Cabinet has approved a new scheme PM Vidyalaxmi, targeting middle-class students who wish to get admission into higher educational institutions but face financial constraints. A maximum of one lakh students each year will be covered under the scheme.
"Such loans will be collateral-free and guarantor-free" Union Information Minister Ashwini Vaishnaw informed reporters after the Cabinet meeting.
A student having annual family income up to Rs 8 lakh shall be eligible to get three per cent interest subvention for education loans up to Rs 10 lakh.
This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakh annual family income
Loans up to Rs 7.5 lakh shall be eligible for a credit guarantee of 75 per cent of outstanding default.
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