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Govt increases authorised capital of FCI to Rs 21,000 cr from Rs 10,000 cr

These initiatives of integrated IT solutions serving as the core operational software for FCI, shall provide a single source of information and streamline functions with a common digital backbone.

Statesman News Service | New Delhi | February 17, 2024 5:25 pm

Govt increases authorised capital of FCI to Rs 21,000 cr from Rs 10,000 cr

[Photo: Wikipedia]

In a landmark decision to bolster agricultural sector and ensuring the welfare of farmers, the government has increased the authorised capital of state-run Food Corporation of India (FCI) from Rs 10,000 crore to Rs 21,000 crore.

In a statement, the Food Ministry said the increase in authorized capital is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively.

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To match the gap of fund requirement FCI resorts to Cash Credit, Short Term Loan, Ways & Means etc.

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Increase of authorised capital and further infusion will reduce the interest burden, reducing the economic cost and ultimately affecting the subsidy of GOI positively, the ministry said.

With this infusion of capital, FCI shall also embark upon modernizing its storage facilities, improving transportation networks, and adopting advanced technologies.

These measures are essential not only for reducing post-harvest losses but also for ensuring efficient distribution of food grains to consumers, it added.

Notably, the FCI is undertaking a comprehensive initiative to create an Integrated IT system, leveraging existing internal systems (FAP, HRMS) and external systems (State procurement portals, CWC/SWC).

The E-office implementation has already made FCI a less paper organization.

These initiatives of integrated IT solutions serving as the core operational software for FCI, shall provide a single source of information and streamline functions with a common digital backbone.

FCI plays a pivotal role in various crucial functions, including the procurement of food grains at Minimum Support Price (MSP), maintenance of strategic food grain stocks, distribution to state governments and Union Territories (UTs), and stabilization of food grain prices in the market.

FCI is diligently executing tasks such as cement roads, roof maintenance, illumination, and weighbridge upgrades, enhancing food security.

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