The Union Cabinet has approved the infusion of equity of Rs 10,700 crore for working capital in financial year 2024-25 in Food Corporation of India (FCI).
During a cabinet briefing, Union Minister of Information and Broadcasting of India, Ashwini Vaishnaw said, “Cabinet approves infusion of equity of Rs 10,700 crore for working capital in financial year 2024-25 in Food Corporation of India (FCI). This is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively.”
He said that the food subsidy given to farmers during the 2014-2024 period has increased more than 4X from what it was during the 2004-2014 period. The food subsidy was at around Rs 5,15,000 crore during 20024-2014 period, and it went to Rs 21,56,000 crore during the 2014-2024 period.
“The decision is aimed at bolstering the agricultural sector and ensuring the welfare of farmers nationwide. This strategic move shows the Government’s steadfast commitment to supporting farmers and fortifying India’s agrarian economy,” a release by Cabinet Committee on Economic Affairs stated.
FCI plays a pivotal role in ensuring food security by procurement of food grains at Minimum Support Price (MSP), maintenance of strategic food grain stocks, distribution of food grains for welfare measure and stabilization of food grain prices in the market.
The infusion of equity is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively. FCI resorts to short term borrowings to match the gap of fund requirement. This infusion will help to lower the interest burden and will ultimately reduce the subsidy of Government of India.
Further, the union minister also announced that the Cabinet approved the PM-Vidyalaxmi scheme to provide monetary support to meritorious students so that financial constraints do not prevent them from pursuing quality higher education.
“The Cabinet has approved the PM-Vidyalaxmi scheme to provide financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education,” Ashwini Vaishnaw said at the press conference.
Per the scheme, anybody who gets admission in Quality Higher Education Institutions (QHEIs) will be eligible to get collateral free, guarantor-free loan from banks and financial institutions to cover the full amount of tuition fees and other expenses related to the course.