CABINET APPROVES RS 10,700 CRORE EQUITY INFUSION FOR FCI

Rs 10,700 Crore equity boost for FCI and introduced the PM Vidyalaxmi scheme to aid middle-class students in higher education. "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.

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.