The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved to increase the authorized capital of Food Corporation of India (FCI) from the existing 3,500 crore rupees to 10,000 crore rupees.
With this, additional equity capital can be infused in the FCI through the Union Budget, to fund the foodgrains stock, perpetually held by FCI. This will reduce the borrowings of FCI, save its interest cost and reduce food subsidy in consequence.
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