- Will help Food Corporation to save storage, reduce debt and save interest
- Also approved to extend the term of the 15th Finance Commission by one year to 30 October 2020
The government on Wednesday approved increasing the authorized capital for Food Corporation of India (FCI) from Rs 3,500 crore to Rs 10 thousand crore. This approval was given in a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. The cabinet also approved the extension of the term of the 15th Finance Commission by one more year.
FCI Government Nodal Agency for Food Purchase, Distribution
- The government says that along with increasing the capital, additional capital can also be provisioned in the budget, so that FCI can get money for storing food grains. The additional capital will also help FCI to reduce debt and save interest.
- FCI is the nodal agency of the government for the procurement and distribution of food grains. It was formed under the Food Corporations Act 1964. Its primary objectives are for farmers to fix minimum support price of crops, keep buffer stock of food grains and distribute food grains under the National Food Security Act.
- The cabinet also approved the extension of the term of the 15th Finance Commission by one more year. Now its term will be till 30 October 2020. The tenure of the Finance Commission was extended by a month before the expiry of the 30th of last month. The Finance Commission will make recommendations on the sharing of tax and other resources between the central and state governments.