Under 100 Words: A Compact Summary
The Indian government has doubled FCI’s authorized capital to Rs 21,000 crore, aiming to boost operational capabilities for MSP-based procurement and distribution. This move is expected to reduce financial burdens and enhance efficiency. The government encourages FCI to modernize facilities and adopt technology for effective post-harvest management (Government Increases FCI’s Authorized Capital).
- The government has raised the authorized capital of the state-run Food Corporation of India (FCI) from Rs 10,000 crore to Rs 21,000 crore to improve operational capabilities and meet its mandate more effectively, announced the Food Ministry on Saturday.
- FCI, the central government’s key agency, is responsible for procuring food grains at a minimum support price (MSP) to safeguard farmers’ interests. Additionally, it manages strategic stocks and distributes grains through various welfare schemes.
- “The augmentation of authorized capital represents a noteworthy measure aimed at strengthening FCI’s operational capabilities and enabling the effective fulfillment of its mandate,” stated the ministry in a press release.
- FCI employs various financial mechanisms such as cash credit, short-term loans, and ways and means to bridge the funding gap (Government Increases FCI’s Authorized Capital).
- The increase in authorized capital is expected to alleviate the interest burden, reduce economic costs, and positively impact government subsidies, according to the statement.
- In addition to capital infusion, FCI is urged to modernize storage facilities, enhance transportation networks, and adopt advanced technologies (Government Increases FCI’s Authorized Capital). These measures are crucial not only for minimizing post-harvest losses but also for ensuring the efficient distribution of food grains to consumers.
- The government provides equity to FCI for working capital and capital asset creation. FCI is actively implementing an integrated IT system, aiming for a paperless office culture through e-office implementation.
- The integrated IT solutions serve as the core operational software for FCI, streamlining functions with a common digital backbone and providing a single source of information. (Government Increases FCI’s Authorized Capital)
- The ministry highlights FCI’s efficiency-enhancing initiatives, such as the construction of cement roads, roof maintenance, illumination, weighbridge upgrades, lab equipment procurement, and software development for quality checking.
- The government’s commitment to MSP-based procurement and investment in FCI’s operational capabilities signifies a collaborative effort to empower farmers, strengthen the agricultural sector, and ensure food security for the nation, the statement concludes.
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