{"id":222620,"date":"2019-11-28T14:30:23","date_gmt":"2019-11-28T09:00:23","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=222620"},"modified":"2019-11-28T14:09:46","modified_gmt":"2019-11-28T08:39:46","slug":"cabinet-approves-big-increase-in-authorized-capital-of-food-corporation-of-india-from-rs-3500-crore-to-rs-10000-crore","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/28\/cabinet-approves-big-increase-in-authorized-capital-of-food-corporation-of-india-from-rs-3500-crore-to-rs-10000-crore\/","title":{"rendered":"Cabinet approves big increase in authorized capital of Food Corporation of India from Rs 3,500 crore to Rs 10,000 crore"},"content":{"rendered":"<p style=\"text-align: justify;\">The <span style=\"color: #0000ff;\"><strong>Cabinet Committee on Economic Affairs approved to increase the authorized capital of Food Corporation of India (FCI) from existing Rs 3,500 crore to Rs 10,000 crore<\/strong><\/span>.<\/p>\n<p style=\"text-align: justify;\">With the increase of authorized capital, additional equity capital can be infused in FCI through Union Budget, to fund the foodgrains stock, perpetually held by FCI. This will reduce the borrowings of FCI, save interest cost of FCI and reduce food subsidy in consequence.<\/p>\n<p style=\"text-align: justify;\"><strong>Background:<\/strong><\/p>\n<p style=\"text-align: justify;\">The operations of Food Corporation of India require maintaining perpetual stock of foodgrains which needs to be funded by the Govt. of India through equity or long term loan. The Govt. of India is providing equity to FCI for maintaining stocks. The present authorized equity capital of FCI is Rs 3,500 crore and paid up equity capital as on 31.03.2019 is Rs.3,447.58 crore.<\/p>\n<p style=\"text-align: justify;\">Food Corporation of India was constituted under the Food Corporations Act, 1964, to implement the food policy of Government of India. Its primary objective is to ensure Minimum Support Price to farmers, maintain buffer stock of foodgrains and distribution of foodgrains under National Food Security Act and other welfare schemes of Govt. of India.<\/p>\n<hr \/>\n<p><strong>Cabinet Committee on Economic Affairs (CCEA)<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Press Release dt. 27-11-2019]<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Source: PIB]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Cabinet Committee on Economic Affairs approved to increase the authorized capital of Food Corporation of India (FCI) from existing Rs 3,500 <\/p>\n","protected":false},"author":8808,"featured_media":218749,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29535,4],"tags":[38561,38560],"class_list":["post-222620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet_decisions","category-legislationupdates","tag-capital","tag-food-corporation-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cabinet approves big increase in authorized capital of Food Corporation of India from Rs 3,500 crore to Rs 10,000 crore | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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State Governments States\/UTs (with Legislature) except Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh from National Small Savings Fund (NSSF) investments from 01.04.2016.\u00a0 It also approved providing a one-time loan of Rs. 45,000 crore\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":229871,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/05\/20\/no-contempt-action-against-fci-to-establish-civil-contempt-disobedience-of-order-should-be-wilful-deliberate-with-full-knowledge-of-consequences\/","url_meta":{"origin":222620,"position":2},"title":"No contempt action against FCI: To establish &#8216;civil contempt&#8217;, disobedience of order should be wilful, deliberate &#038; with full knowledge of consequences","author":"Bhumika Indulia","date":"May 20, 2020","format":false,"excerpt":"Supreme Court:\u00a0A Division Bench of A.M. Khanwilkar and Dinesh Maheshwari, JJ., while addressing a contempt petition held that, \"...to constitute civil contempt, it must be established that disobedience of the order is wilful, deliberate and with full knowledge of consequences.\" Grievance Non compliance of direction to Food Corporation of India\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":226332,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/28\/chh-hc-officers-of-fci-other-than-board-of-directors-are-not-empowered-to-alienate-any-part-of-fci-land-a-body-corporate-is-a-legal-entity-but-it-has-neither-a-living-mind-nor-voice\/","url_meta":{"origin":222620,"position":3},"title":"Chh HC | Officers of FCI other than Board of Directors are not empowered to alienate any part of FCI land; A body corporate is a legal entity but it has neither a living mind nor voice","author":"Bhumika Indulia","date":"February 28, 2020","format":false,"excerpt":"Chhattisgarh High Court: Goutam Bhaduri, J., while allowing the petition and quashing the order issued by the State of Chhattisgarh held that, \u201cTwo of the officers of Food Corporation of India who are not empowered to have attended the meeting to give away the FCI Land in absence of any\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":264728,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/30\/principle-of-natural-justice\/","url_meta":{"origin":222620,"position":4},"title":"P&#038;H HC | Principle of Natural Justice demands petitioner-miller to be associated with stock verification by Food Corporation of India; physical verification set aside","author":"Editor","date":"March 30, 2022","format":false,"excerpt":"Punjab and Haryana High Court: The question before Jaishree Thakur J., was whether physical verification conducted by Food Corporation of India was arbitrary, incomplete and in violation of principles of natural justice when the agreement of the petitioner was made with Punjab State Co-operative Supply & Marketing Federation Ltd. (MARKFED).\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":210314,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/02\/19\/pat-hc-petitioner-unable-to-provide-explanation-regarding-rice-gunny-bags-bearing-fci-logo-and-tag-charges-under-essential-commodities-act-sustained\/","url_meta":{"origin":222620,"position":5},"title":"Pat HC | Petitioner unable to provide explanation regarding rice gunny bags bearing FCI logo and tag; charges under Essential Commodities Act sustained","author":"Bhumika Indulia","date":"February 19, 2019","format":false,"excerpt":"Patna High Court: The Bench of Ahsanuddin Amanullah, J. dismissed an application seeking relief in the matter wherein cognizance of the offence had been taken under Section 7 of the Essential Commodities Act. 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