SF Prep Notes

CCEA approves ₹10,700 crore equity infusion in FCI

On 6 November 2024, the Cabinet Committee on Economic Affairs approved infusion of ₹10,700 crore equity in the Food Corporation of India for working capital in 2024-25, by converting Ways and Means Advance to equity.

Summary

On 6 November 2024, the Cabinet Committee on Economic Affairs chaired by PM Narendra Modi approved infusion of ₹10,700 crore of equity in the Food Corporation of India (FCI) for working capital in 2024-25, by converting Ways and Means Advance to equity. FCI began in 1964 with authorised capital of ₹100 crore and equity of ₹4 crore; its authorised capital was raised from ₹11,000 crore to ₹21,000 crore in February 2024, and its equity rose from ₹4,496 crore in 2019-20 to ₹10,157 crore in 2023-24.

Key facts

Approved
6 Nov 2024, CCEA
Equity
₹10,700 crore for working capital, FY 2024-25
Mode
Conversion of Ways and Means Advance to equity
FCI origin
1964; authorised capital ₹100 crore, equity ₹4 crore
Authorised capital
₹11,000 cr → ₹21,000 cr (Feb 2024)
Equity trend
₹4,496 cr (2019-20) → ₹10,157 cr (2023-24)

Practice MCQs 3 questions

Q1 Advanced

How much equity infusion in the Food Corporation of India did the CCEA approve on 6 November 2024?

Show answer

Correct answer: B — ₹10,700 crore

PIB (Cabinet): the CCEA approved infusion of equity of ₹10,700 crore for working capital in FY 2024-25 in FCI.

Q2 Advanced

The ₹10,700 crore equity infusion in FCI (November 2024) is being made by:

Show answer

Correct answer: D — Conversion of Ways and Means Advance to equity

PIB (Cabinet): the equity is infused by way of conversion of Ways and Means Advance to equity in 2024-25.

Q3

In which year did the Food Corporation of India start its journey?

Show answer

Correct answer: A — 1964

PIB (Cabinet): FCI started its journey in 1964 with authorised capital of ₹100 crore and equity of ₹4 crore.

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