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Food Corporation to get Rs 5000 crore working capital loan


March 29, 2011 - New Delhi

The Cabinet Committee on Economic Affairs (CCEA) today approved a short-term loan of Rs.5000 crore to the Food Corporation of India (FCI) to enable it to meet the working capital requirements.

The interest rate payable will be equivalent to 364 days treasury bills considering a repayment schedule of equivalent period. The loan will be paid by Food Corporation of India during the financial year 2011-12.

This arrangement of financing would be cheaper than the option of raising money through cash credit limit interest rate, which presently is 10.60 per cent per annum.

The FCI has a sanction of Cash Credit Limit (CCL) of Rs.34,495 crore by a consortium of banks, which is normally utilised for meeting its working capital requirements.

FCI, at present, has almost fully utilized the CCL available to it.

ANI

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