What : FCI raises Rs 30,000 crore as short-term loan
Where : New Delhi
FCI, nodal agency for procurement and distribution of food grains has raised Rs 30,000 crore as a short-term loan from 15 consortiums of banks including SBI and PNB to meet working capital requirements.
The state run FCI is facing a liquidity crunch as its subsidy arrears are estimated to cross Rs 58,000 crore by March 2016 against Rs 50,000 crore at the start of this fiscal.
The loan has been raised at average interest rate of 9.6% and is for the period of 150 days.
Maximum amount of Rs 10,000 crore has been raised from PNB, followed byRs 7,000 crore from SBI and remaining from others including public and private sector banks.
In 2014-15, the government had allocated Rs 92,000 crore as food subsidy, out of whichRs 91,995.35 crore was given to the FCI. The actual subsidy outgo during the year wasRs 1, 02,476 crore.
In the current fiscal, the government has allocated Rs 97,000 crore as subsidy to the FCI against the estimated bill of Rs 1,18,000 crore.
So far, the whole subsidy amount of Rs 97,000 crore has been released and it has been utilised, the short-term loan is being raised for the working capital requirements.
FCI has a cash credit limit of Rs 54,495 crore with a consortium of 67 banks at a rate of 10.51%.
FCI had also moved a proposal to raise Rs 40,000 crore through long-term bonds from LIC to liquidate subsidy arrears due from the government. The proposal is at present under review of the government.