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.

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