The Cabinet Committee on Economic Affairs approved authorised capital of Food Corporation of India (FCI) which increased to Rs 10,000 crore from Rs 3,500 crore. With the increased capital, additional equity capital can be infused in FCI through the Union Budget, to fund the food grain stock. This will reduce the borrowings of FCI, save interest cost of FCI and reduce food subsidy in consequence, a government release said.  The move will help FCI raise more money in the market and comes in the backdrop agency’s request for capital infusion. In the last week, Minister of State of Consumer Affairs, Food & Public Distribution Danve Raosaheb Dadarao informed Parliament that FCI has requested equity capital infusion.
“As against the equity infusion plan of Rs 5,000 crore, the government has already released Rs 500 crore during the financial year 2018-19. Release of balance Rs 4,500 crore would be considered once the authorised capital of FCI has enhanced from the present level of Rs 3,500 crore to Rs 10,000 crore,” reports quoted Dadarao as saying in a reply to a question in Lok Sabha.
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