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Govt hikes Food Corporation capital to Rs 10,000 cr to help it manage stock

The FCI, the nodal agency for procurement and distribution of foodgrain, will now be able to reduce debt and interest cost

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Sanjeeb Mukherjee New Delhi
The Union Cabinet on Wednesday increased the authorised capital of the Food Corporation of India (FCI) by Rs 6,500 crore to Rs 10,000 crore. This will allow the FCI, which is sitting on a huge stockpile of foodgrain, to manage its inventories and procure more.

The current paid-up capital of the FCI (Rs 3,500 crore) allowed it to borrow up to 10 times more, that is Rs 35,000 crore, according to the FCI Act, 1964. The new capital will extend the borrowing limit to Rs 1 trillion.

The Centre will fund this expanded authorised capital from its own resources.

The

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First Published: Nov 27 2019 | 8:20 PM IST

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