New Delhi: The Cabinet Committee on Economic Affairs has approved the increase of the authorized capital of Food Corporation of India (FCI) from the current Rs 3,500 crore to Rs 10,000 crore.
Additional equity capital will be infused in FCI by the government through Union Budget with an increase in the authorized capital. It will result in reduced borrowings of FCI and saving of interest cost of FCI. This will result in reduction of food subsidy in consequence.
Food Corporation of India needs to maintain perpetual storage of foodgrains which is required to be funded by the government through equity or long term loan.