9/20/21, 7:39 PM Finance - Food Corporation of India

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BRIEF NOTE :

1.  Providing financial concurrence of different proposals of operating divisions after analysing
different financial aspects such as compliance of provisions of GFR and FCI
Circulars/Guidelines, compliance of different manuals of FCI etc. 

2.  Digital payment to all staff  is being done through Cash Management Product facility of SBI to
achieve the endeavour of Digital India of the Government. However, payment to third parties on
same line is in progress.

3.  Confirmation/Verification of genuineness of Bank Guarantee issued in favour of FCI is being

done through Structured Financial Messaging System (SFMS) which mitigate the risk of fraud.

4.  Issue the instructions/clarifications of Tax matters to field offices across All India to achieve
the compliance of tax laws i.e. GST and Income Tax.

5.  Implementation of Bill Tracking software (BTS) which helps in real time tracking of
supplier/contractors bills and ensures timely payment to them. Also the suppliers can keep a
watch on their bills and can check the status of their payments.

6.  On boarding on Trade Receivables Discounting System (TReDS) for discounting of bills of
MSME vendors.

Equity :

FCI is fully owned by the Government of India. It’s Authorized Capital is Rs.10,000 crore. Being
a trading corporation major capital infusion relates to the perpetual holding of stocks. The details
of authorized and paid-up equity capital (as on 31-08-2021) since 2016-17 are as following;

                                                                                                          (Rs. Crore)

Year  Authorised As on 1st, Paid During As on 31st,

Capital  April the Year March
2016-17 3,500.00 2,830.49 30.59 2,861.08
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2017-18 3,500.00 2,861.08 23.50 2,884.58

2018-19 3,500.00 2,884.58 563.00 3,447.58
2019-20 10,000.00 3,447.58 1,049.00 4,496.58
2020-21 10,000.00 4,496.58 1,040.00 5,536.58
2021-22 (upto 31-08-
10,000.00 5,536.58 2,500.00 8036.58
2021)

Debt:

FCI at present is exclusively engaged in implementation of the food policy of GoI. In the process
of its operation, FCI has to carry food stocks, a major part of which are carried perpetually as a
part of operation and buffer stock. To fund these stocks, FCI borrows funds from different
sources. Debts as on 31-08-2021 are as following;

Debt Position as on 31st August ,2021

(Rs. In Crore)
Outstanding as on
Outstanding as on

Source 31-03-2021 31-08-2021

Cash Credit Limit 2,709 388
GOI Guaranteed Bond 37,000 45,000
National Small Saving Fund
Loans NIL NIL
Ways and Means Advances NIL NIL
Short Term Loans 20,500 11,350
  60,209 56,738

Borrowings : Borrowings of FCI since 2016-17 are as following;

Borrowings From Different Sources by FCI 

(As on 31st, March)
                                       (Rs. In Crore) 
Year  Cash Bonds (GOI NSSF Loans STL Total
Credit Guaranteed)  (GOI)  (Scheduled Borrowings 
Limit  Banks) 
2016-17 4,620 13,000 70,000 38,477 1,26,097
2017-18 8,414 13,000 1,21,000 47,450 1,89,864
2018-19 5,198 15,738 1,91,000 41,226 2,53,162
2019-20 3,565 29,000 2,54,600 40,700 3,27,865
2020-21 2,709 37,000 NIL  20,500 60,209
2021-22 (Upto 388 45,000 NIL 11,350 56,738
31-08-2021)

Cash Credit Limit:

The Working Capital requirement of Food Corporation of India is met from Cash Credit limit
through a Consortium of Banks with State Bank of India as lead Bank. The CC limit is secured
by stock held by FCI and also guaranteed by Government of India. The CC limit as on 31-08-
2021 stood at Rs.9,495 crore. The rate of interest applicable on Cash Credit Account with effect
from 01-07-2021 is 7.74%. The detail of CCL sanctioned and interest rate is as under:-
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9/20/21, 7:39 PM Finance - Food Corporation of India

As on Sanctioned Rate of Interest

(Rs in Crore ) (%)
31-03-2017 9,495.00 10.01
31-03-2018 8,995.00 8.66
31-03-2019 8,995.00 9.15
31-03-2020 8,995.00 8.61
31-03-2021 9,495.00 7.74
31-08-2021 9,495.00 7.74

Note: - CCL rate given upto 2020-21 is effective as on 31st March of each year. The same is reset at the
beginning of every quarter.

Bonds:

The working capital requirement of FCI which consists of value of stock held is partially funded
by GoI Guaranteed Bonds. Government of India has permitted FCI to mobilize funds by issuing
government guaranteed bonds from time to time. The position of outstanding bonds as on 31-
08-2021 is as under:-

Series Date of Tenure Coupon rate Date of Outstanding

Allotment (%) Redemption Bonds as on
date (Rs. In
Crore)
V 22-03-2013 10 Years 8.62 22-03-2023 300.00
22-03-2013 15 Years 8.80 22-03-2028 4,700.00
Sub Total :  5,000.00
VI 07-03-2014 8 Years 9.95 07-03-2022 8,000.00
VII 01-03-2019 10 Years 8.95 01-03-2029 2,737.70
VII -A 09-01-2020 10 Years 7.60 09-01-2030 5,262.30
VIII 12-12-2019 10 Years 7.64 12-12-2029 8,000.00
IX 23-10-2020 10 Years 6.65 23-10-2030 8,000.00
X 13-08-2021 10 Years 7.09 13-08-2031 8,000.00
Total 45,000.00

NSSF Loan: 

The NSSF Loans were sanctioned to FCI during 2016-17 to 2020-21, in lieu of food subsidy, as
off-balance sheet expenditure of the Government. These loans were for a period of 5 years and
to be repaid in equal annual instalments. However, these Loans have been fully repaid during
2020-21, out of additional subsidy provided by GoI .

The details of NSSF loans provided to FCI since 2016-17 is as under: -

Status of NSSF Loan by Government of India

(Rs. In Crore) 
Year Opening Loan Repayment Outstanding Rate of
Balance as on Sanctioned & During the as on 31st, Interest
1st April Availed F.Y March
During F.Y
2016-17 NIL 70,000.00 NIL 70,000.00 Ranging
2017-18 70,000.00 65,000.00 14,000.00 1,21,000.00 From 7.40%

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2018-19 1,21,000.00 97,000.00 27,000.00 1,91,000.00 to 8.80%

2019-20 1,91,000.00 1,10,000.00 46,400.00 2,54,600.00
2020-21 2,54,600.00 84,636.00 3,39,236.00 NIL

Ways and Means Advance:

To provide temporary working capital to the Corporation, the Government of India releases WMA
to FCI. These advances are released during the year and repayable/recovered out of the
subsidy allocation/NSSF Allocation for the year towards the end of the financial year. Interest
rate of this loan is at par with 364 days T Bills. The year wise detail of WMA sanctioned limit and
released to FCI during last 5 years is as under:-

 Financial Year Sanctioned WMA Limit Amount released Interest rate

(Rs. In Crore) (Rs. In Crore) (%)
2016-17 50,000 23,000 6.54
2017-18 50,000 50,000 6.40
2018-19 50,000 12,000 7.04
2019-20 50,000 NIL -
2020-21 50,000 10,000 3.58
2021-22 (Upto 31-08- 50,000 NIL -
2021)

Short Term loan:

FCI takes short term loan to meet out cash flow mismatches and to provide temporary working
capital to the Corporation. The corporation avails unsecured short term loans (STL) from
scheduled commercial banks through E-procure portal. Details of sanctioned STL limit and
outstanding STL of last 5 years is as under:-

Details of Short- Term Loans Availed  Range of Interest Rate   

Date  Sanctioned STL STL   
 
Limit Outstanding Minimum  Maximum 
 
(Rs. in Crore)  (Rs. in Crore) 
31-03-2017 40,000 38,477 7.85% 9.65%  
31-03-2018 50,000 47,450 7.35% 8.66%  
31-03-2019 50,000 41,226 7.45% 8.66%  
31-03-2020 50,000 40,700 5.92% 8.40%  
31-03-2021 75,000 20,500 4.10% 7.25%  
31-08-2021 50,000 11,350 3.89% 4.00%  

All bank borrowings under short term loan are rated by M/s Acuite Rating and Research Ltd as
ACUITE A1+.

Disclosures

Bonds Investors Information

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