Centre Raises Authorised Capital of FCI from Rs 10,000 crore to Rs 21,000 | Current Affairs | Vision IAS
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    Centre Raises Authorised Capital of FCI from Rs 10,000 crore to Rs 21,000

    Posted 19 Feb 2024

    Updated 22 Mar 2024

    2 min read

    • Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association (MoA). 
      • The company cannot raise more than the amount of capital as specified in the MoA.
      • Authorised capital is also called Nominal or Registered capital.
    • Enhanced authorised capital would help the Food Corporation of India (FCI) embark upon 
      • modernizing storage facilities, 
      • improving transportation networks,
      • and adopting advanced technologies.
    • Enhanced authorised capital and further infusion will also lessen the interest burden and affect the subsidy of Centre positively.
       
    • About FCI
      • Public sector undertaking under the Ministry of Consumer Affairs, Food and Public Distribution set up under the Food Corporation Act of 1964. 
      • Mandates
        • Undertake procurement of foodgrains at a minimum support price (MSP) to protect the interest of farmers.
        • Distribution of food grains throughout the country for public distribution system (PDS).
        • Maintain a satisfactory level of operational and buffer stocks of foodgrains to ensure National Food Security.
      • Centre provides equity to the FCI for working capital requirements and the creation of capital assets.
        • FCI resorts to Cash Credit, short-term Loans, Ways & Means etc. to match the gap in fund requirements.
    • Tags :
    • FCI
    • minimum support price (MSP)
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