Finance and Accounts

Funds

Brief on Fund Position of FCI

(as on 31^st August, 2023)

Equity:

FCI is fully owned by the Government of India. Its 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 31-08-2023) since 2018-19 are as following;

(Rs. Crore)

Financial Year	Authorised Capital	As on 1^st, April	Paid During the Year	As on 31^st, March
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	10,000.00	5,536.58	2,505.00	8,041.58
2022-23	10,000.00	8,041.58	1,938.21	9,979.79
2023-24 (Upto 31-08-2023)	10,000.00	9,979.79	NIL	9,979.79

Borrowings:

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 and also to fund arrear subsidy, FCI borrows funds from different sources. Borrowings of FCI as 31^st August, 2023 are as following;

Borrowings Position (Rs. In Crore)
Source	Outstanding as on 31-03-2023	Outstanding as on 31-08-2023
Cash Credit Limit (Food)	985	440
Cash Credit Limit (Pulses)	25	6
GOI Guaranteed Bond	36,700	36,700
National Small Saving Fund Loans	NIL	NIL
Ways and Means Advances	NIL	9,955
Short Term Loans	3,000	350
Total	40,710	47,451

Borrowings: Borrowings of FCI since 2018-19 are as following;

Borrowings From Different Sources by FCI (As on 31^st, March) (Rs. In Crore)
Financial Year	Cash Credit Limit (Food)	Cash Credit Limit (Pulses)	Bonds (GOI Guaranteed)	NSSF Loans (GOI)	WMA	STL (Scheduled Banks)	Total Borrowings
2018-19	5,198	-	15,738	1,91,000	NIL	41,226	2,53,162
2019-20	3,565	288	29,000	2,54,600	NIL	40,700	3,28,153
2020-21	2,709	81	37,000	NIL	NIL	20,500	60,290
2021-22	815	13	37,000	NIL	NIL	12,800	50,628
2022-23	985	25	36,700	NIL	NIL	3,000	40,710
2023-24 (Upto 31-08-2023)	440	6	36,700	NIL	9,955	350	47,451

Cash Credit Limit (Food):

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 31-08-2023 stood at Rs.6,000 crore. The detail of CCL sanctioned and interest rate is as under:-

Financial Year	Sanctioned as on 31^st, March (Rs in Crore )	Range of Interest Rate (%)
Financial Year	Sanctioned as on 31^st, March (Rs in Crore )	Minimum	Maximum
2018-19	8,995.00	8.66	9.15
2019-20	8,995.00	8.61	9.15
2020-21	9,495.00	7.74	8.61
2021-22	9,495.00	6.68	7.76
2022-23	6,000.00	6.68	7.98
2023-24 (Upto 31.08.2023)	6,000.00	7.98	8.15

Note: - (i) Bank borrowings under Cash Credit Limit are rated by M/s India Rating and Research Ltd as IND AAA/Stable.

(ii) The monthly reset of interest is effective from 01.01.2022, Prior to that interest rates were reset every quarter.

Cash Credit Limit (Pulses):

The Working Capital requirement for pulses operation under Price Support Scheme (PSS) is met from Cash Credit limit account maintained with State Bank of India. The CC limit is secured by stock held by FCI and also guaranteed by Government of India through Ministry of Agriculture. The sanctioned CC limit as on 31.08.2023 stood at Rs.1,500 crore for pulses account under PSS. The rate of interest applicable on Pulse Cash Credit Account w.e.f 01.09.2023 is 8.15% The detail of CCL sanctioned and interest rate is as under: -

Financial Year	Sanctioned as on 31^st, March (Rs. in Crore )	Range of Interest Rate (%)
Financial Year	Sanctioned as on 31^st, March (Rs. in Crore )	Minimum	Maximum
2020-21	1,500	6.65	8.25
2021-22	1,500	6.65	6.65
2022-23	1,500	6.65	8.10
2023-24 (Upto 31.08.2023)	1,500	8.10	8.15

Note: - Bank borrowings under Cash Credit Limit (Pulses) are rated by M/s India Rating and Research Ltd as AAA/Stable.

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 31-08-2023 is as under:-

Series	ISIN	Date of Allotment	Tenure	Coupon rate (%)	Date of Redemption	Outstanding Bonds as on date (Rs. In Crore)
V - B	INE861G08027	22-03-2013	15 Years	8.80	22-03-2028	4,700.00
VII	INE861G08043	01-03-2019	10 Years	8.95	01-03-2029	2,737.70
VII –A	INE861G08068	09-01-2020	10 Years	7.60	09-01-2030	5,262.30
VIII	INE861G08050	12-12-2019	10 Years	7.64	12-12-2029	8,000.00
IX	INE861G08076	23-10-2020	10 Years	6.65	23-10-2030	8,000.00
X	INE861G08084	13-08-2021	10 Years	7.09	13-08-2031	8,000.00
Total						36,700.00

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 2018-19 is as under:

Status of NSSF Loan by Government of India (Rs. In Crore)
Year	Opening Balance as on 1^st April	Loan Sanctioned & Availed During F.Y	Repayment During the F.Y	Outstanding as on 31^st, March	Rate of Interest
2018-19	1,21,000.00	97,000.00	27,000.00	1,91,000.00	Ranging From 7.40% 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
2021-22	NIL	NIL	NIL	NIL
2022-23	NIL	NIL	NIL	NIL
2023-24 (Upto 31.08.2023)	NIL	NIL	NIL	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 the weighted average rate of interest for 364 days T Bills during the relevant financial year. The year wise detail of WMA sanctioned limit and released to FCI during last 5 years is as under:-

Financial Year	Sanctioned WMA Limit (Rs. In Crore)	Amount released/received (Rs. In Crore)	WMA repaid (Rs. In crore)	WMA Outstanding (Rs. In crore)	Interest rate (%)
2018-19	50,000	12,000	12,000	NIL	7.04
2019-20	50,000	NIL	NIL	NIL	-
2020-21	50,000	10,000	10,000	NIL	3.58
2021-22	10,000	NIL	NIL	NIL	-
2022-23	10,000	10,000	10,000	NIL	6.53
2023-24 (Upto 31.08.2023)	25,000	12,105	2,150	9,955	*

* Note:-The final interest is communicated by Department of Economic Affairs, Ministry of Finance after end of relevant financial year.

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 for last 5 years is as under:-

Details of Short- Term Loans Availed			Range of Interest Rate
Financial Year	Sanctioned STL Limit (Rs. in Crore)	STL Outstanding as on 31^st, March (Rs. in Crore)	Range of Interest Rate
Financial Year	Sanctioned STL Limit (Rs. in Crore)	STL Outstanding as on 31^st, March (Rs. in Crore)	Minimum	Maximum
2018-19	50,000	41,226	7.45%	8.66%
2019-20	50,000	40,700	5.92%	8.40%
2020-21	75,000	20,500	4.10%	7.25%
2021-22	50,000	12,800	3.47%	4.34%
2022-23	75,000	3,000	3.85%	7.80%
2023-24 (Upto 31-08-2023)	75,000	350	7.00%	7.95%

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

Disclosures
Bond Investor Information
Credit Rating
Statement of utilisation of proceeds (pdf - 1,047 KB)

BRIEF NOTE :

<ol>

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

<li>Digital payment to all staff and third parties is being done through Cash Management Product facility of SBI to achieve the endeavor of Digital India of the Government.</li>

<li>Confirmation/Verification of genuineness of Bank Guarantee issued in favor of FCI is being done through Structured Financial Messaging System (SFMS) which mitigate the risk of fraud.</li>

<li>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.</li>

<li>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.</li>

<li>On boarding on Trade Receivables Discounting System (TReDS) for discounting of bills of MSME vendors.</li>

</ol>

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 31.12.2020) since 2001-02 are as following;

(Rs. in Crore)

<tbody>

<tr>

Year

</td>

Authorised Capital

</td>

As on 1st of April

</td>

Paid during the year

</td>

As on 31st March

</td>

</tr>

<tr>

Upto 2001-02

</td>

2500.00

</td>

2294.50

</td>

28.50

</td>

2323.00

</td>

</tr>

<tr>

2002-03

</td>

2500.00

</td>

2323.00

</td>

30.00

</td>

2353.00

</td>

</tr>

<tr>

2003-04

</td>

2500.00

</td>

2353.00

</td>

39.46

</td>

2392.46

</td>

</tr>

<tr>

2004-05

</td>

2500.00

</td>

2392.46

</td>

45.01

</td>

2437.47

</td>

</tr>

<tr>

2005-06

</td>

2500.00

</td>

2437.47

</td>

35.78

</td>

2473.25

</td>

</tr>

<tr>

2006-07

</td>

2500.00

</td>

2473.25

</td>

7.50

</td>

2480.75

</td>

</tr>

<tr>

2007-08

</td>

2500.00

</td>

2480.75

</td>

29.00

</td>

2509.75

</td>

</tr>

<tr>

2008-09

</td>

3500.00

</td>

2509.75

</td>

18.55

</td>

2528.30

</td>

</tr>

<tr>

2009-10

</td>

3500.00

</td>

2528.30

</td>

24.43

</td>

2552.73

</td>

</tr>

<tr>

2010-11

</td>

3500.00

</td>

2552.73

</td>

35.00

</td>

2587.73

</td>

</tr>

<tr>

2011-12

</td>

3500.00

</td>

2587.73

</td>

61.94

</td>

2649.67

</td>

</tr>

<tr>

2012-13

</td>

3500.00

</td>

2649.67

</td>

23.28

</td>

2672.95

</td>

</tr>

<tr>

2013-14

</td>

3500.00

</td>

2672.95

</td>

3.00

</td>

2675.95

</td>

</tr>

<tr>

2014-15

</td>

3500.00

</td>

2675.95

</td>

86.84

</td>

2762.79

</td>

</tr>

<tr>

2015-16

</td>

3500.00

</td>

2762.79

</td>

67.70

</td>

2830.49

</td>

</tr>

<tr>

2016-17

</td>

3500.00

</td>

2830.49

</td>

30.59

</td>

2861.08

</td>

</tr>

<tr>

2017-18

</td>

3500.00

</td>

2861.08

</td>

23.50

</td>

2884.58

</td>

</tr>

<tr>

2018-19

</td>

3500.00

</td>

2884.58

</td>

563.00

</td>

3447.58

</td>

</tr>

<tr>

2019-20

</td>

10000.00

</td>

3447.58

</td>

1049.00

</td>

4496.58

</td>

</tr>

<tr>

2020-21 upto 31.01.2021

</td>

10000.00

</td>

4496.58

</td>

1011.25

</td>

5507.83

</td>

</tr>

</tbody>

</table>

Debt :

FCI at present 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 and also to fund arrear subsidy, FCI borrows funds from different sources. Debts as on 31st December, 2020 is as following;

<tbody>

<tr>

Debt Position as on 31st December,2020

(Rs in Crore)

</td>

</tr>

<tr>

Source

</td>

Outstanding as on 31.03.2020

</td>

Outstanding as on 31.12.2020

</td>

</tr>

<tr>

Cash Credit Limit

</td>

3565.28

</td>

2053.08

</td>

</tr>

<tr>

GOI Guaranteed Bonds

</td>

29000.00

</td>

37000.00

</td>

</tr>

<tr>

National Small Saving Fund Loans

</td>

254600.00

</td>

300663.79

</td>

</tr>

<tr>

Ways and Means Advances

</td>

0

</td>

10000.00

</td>

</tr>

<tr>

Short Term Loans

</td>

40700.00

</td>

24650.00

</td>

</tr>

<tr>

</td>

327865.28

</td>

374366.87

</td>

</tr>

</tbody>

</table>

Borrowings of FCI since 2014-15 are as following;

<tbody>

<tr>

Borrowings from different sources by FCI

</td>

Rs in Crore

</td>

</tr>

<tr>

YEAR

</td>

Cash Credit Limit

</td>

BONDS

(GoI-guaranteed)

</td>

NSSF Loan (GoI)

</td>

STL            ( Scheduled Banks)

</td>

Total Borrowings

</td>

</tr>

<tr>

2014-15

</td>

46,427

</td>

16,121

</td>

-

</td>

28,805

</td>

91,353

</td>

</tr>

<tr>

2015-16

</td>

50,603

</td>

13,000

</td>

-

</td>

26,375

</td>

89,978

</td>

</tr>

<tr>

2016-17

</td>

4,620

</td>

13,000

</td>

70,000

</td>

38,477

</td>

1,26,097

</td>

</tr>

<tr>

2017-18

</td>

8,414

</td>

13,000

</td>

1,21,000

</td>

47,450

</td>

1,89,864

</td>

</tr>

<tr>

2018-19

</td>

5,198

</td>

15,738

</td>

1,91,000

</td>

41,226

</td>

2,53,162

</td>

</tr>

<tr>

2019-20

</td>

3,565

</td>

29,000

</td>

2,54,600

</td>

40,700

</td>

3,27,865

</td>

</tr>

</tbody>

</table>

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 31.12.2020 stood at Rs.9,495 crore. The rate of interest applicable on Cash Credit Account was 7.78% p.a. (w.e.f. 01.10.2020) which was reduced to 7.74% w.e.f. 01.01.2021. The detail of CCL sanctioned and interest rate is as under:-

<tbody>

<tr>

As on

</td>

Sanctioned

(Rs In Crore)

</td>

Rate of Interest(%)

</td>

</tr>

<tr>

31-03-2014

</td>

54,495.00

</td>

10.79

</td>

</tr>

<tr>

31-03-2015

</td>

54,495.00

</td>

10.73

</td>

</tr>

<tr>

31-03-2016

</td>

54,495.00

</td>

10.01

</td>

</tr>

<tr>

31-03-2017

</td>

9,495.00

</td>

10.01

</td>

</tr>

<tr>

31-03-2018

</td>

8,995.00

</td>

8.66

</td>

</tr>

<tr>

31-03-2019

</td>

8,995.00

</td>

9.15

</td>

</tr>

<tr>

31-03-2020

</td>

8,995.00

</td>

8.61

</td>

</tr>

<tr>

01-07-2020

</td>

9,495.00

</td>

8.00

</td>

</tr>

<tr>

01-10-2020

</td>

9,495.00

</td>

7.78

</td>

</tr>

<tr>

</tr>

</tbody>

</table>

Note: - CCL rate given upto 2019-20 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 and arrear subsidy due from GoI has increased substantially over years without any corresponding increase in paid up capital. Thus 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 31.12.2020 is as under:-

<tbody>

<tr>

Series

</td>

Date of Allotment

</td>

Tenure

</td>

Coupon Rate(%)

</td>

Date of Redemption

</td>

Outstanding Bonds as on date

</td>

</tr>

<tr>

V

</td>

22-Mar-13

</td>

10 years

</td>

8.62

</td>

22-Mar-23

</td>

300

</td>

</tr>

<tr>

22-Mar-13

</td>

15 Years

</td>

8.8

</td>

22-Mar-28

</td>

4,700.00

</td>

</tr>

<tr>

Sub Total:

</td>

</td>

5000.00

</td>

</tr>

<tr>

VI

</td>

07-Mar-14

</td>

8 Years

</td>

9.95

</td>

07-Mar-22

</td>

8,000.00

</td>

</tr>

<tr>

VII

</td>

01-Mar-19

</td>

10 Years

</td>

8.95

</td>

01-Mar-29

</td>

2,737.70

</td>

</tr>

<tr>

VII A

</td>

09-Jan-20

</td>

10 Years

</td>

7.6

</td>

09-Jan-30

</td>

5,262.30

</td>

</tr>

<tr>

VIII

</td>

12-Dec-19

</td>

10 Years

</td>

7.64

</td>

12-Dec-29

</td>

8,000.00

</td>

</tr>

<tr>

IX

</td>

23-Oct-20

</td>

10 Years

</td>

6.65

</td>

23-Oct-30

</td>

8,000.00

</td>

</tr>

<tr>

Total

</td>

37000.00

</td>

</tr>

</tbody>

</table>

NSSF Loan

The NSSF Loans are sanctioned to FCI every year since the year 2016-17 in lieu of food subsidy and are off-balance sheet expenditure of the Government. These loans are for a period of 5 years and to be repaid on equal annual instalments. The details of NSSF loans provided to FCI since 2016-17 is as under:-

<tbody>

<tr>

Status of NSSF Loan by GOI:

</td>

Rs in Crore

</td>

</tr>

<tr>

Year

</td>

Loan Amount

</td>

Repayment done as on  date

</td>

Outstanding as on 31.12.2020

</td>

Rate of Interest

</td>

</tr>

<tr>

2016-17

</td>

70,000.00

</td>

42,000.00

</td>

28,000.00

</td>

8.80%

</td>

</tr>

<tr>

2017-18

</td>

65,000.00

</td>

26,000.00

</td>

39,000.00

</td>

8.40%

</td>

</tr>

<tr>

2018-19

</td>

97,000.00

</td>

19,400.00

</td>

77,600.00

</td>

8.52%

</td>

</tr>

<tr>

2019-20

</td>

1,10,000.00

</td>

-

</td>

1,10,000.00

</td>

8.50%

</td>

</tr>

<tr>

2020-21(till 31.12.2020)

</td>

46,063.79

</td>

-

</td>

46,063.79

</td>

7.40%

</td>

</tr>

<tr>

Total

</td>

3,88,063.79

</td>

87,400.00

</td>

3,00,663.79

</td>

</td>

</tr>

</tbody>

</table>

WMA :

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 is as under:-

<tbody>

<tr>

Financial year

</td>

Sanctioned WMA Limit

(Rs in Crore)

</td>

Amount released

( Rs in Crore)

</td>

</tr>

<tr>

2013-14

</td>

-

</td>

10000

</td>

</tr>

<tr>

2014-15

</td>

-

</td>

10000

</td>

</tr>

<tr>

2015-16

</td>

20000

</td>

20000

</td>

</tr>

<tr>

2016-17

</td>

50000

</td>

23000

</td>

</tr>

<tr>

2017-18

</td>

50000

</td>

50000

</td>

</tr>

<tr>

2018-19

</td>

50000

</td>

12000

</td>

</tr>

<tr>

2019-20

</td>

50000

</td>

0

</td>

</tr>

<tr>

2020-21

(Upto 31.12.2020)

</td>

50000

</td>

10000

</td>

</tr>

</tbody>

</table>

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. As present the Sanctioned limit is Rs. 75,000 crore. Details of sanctioned STL limit and outstanding STL of last few years is as under:-

<tbody>

<tr>

Details of Short-Term Loans Availed

</td>

Rs in Crore

</td>

</tr>

<tr>

Date

</td>

Sanctioned

STL Limit

</td>

STL

Outstanding

</td>

Range of Interest Rate

</td>

</tr>

<tr>

Minimum

</td>

Maximum

</td>

</tr>

<tr>

31.03.2013

</td>

20000

</td>

13080

</td>

10.20%

</td>

10.75%

</td>

</tr>

<tr>

31.03.2014

</td>

20000

</td>

16250

</td>

9.95%

</td>

10.25%

</td>

</tr>

<tr>

31.03.2015

</td>

40000

</td>

28805

</td>

9.65%

</td>

10.25%

</td>

</tr>

<tr>

31.03.2016

</td>

40000

</td>

26375

</td>

9.20%

</td>

10.00%

</td>

</tr>

<tr>

31.03.2017

</td>

40000

</td>

38477

</td>

7.85%

</td>

9.65%

</td>

</tr>

<tr>

31.03.2018

</td>

50000

</td>

47450

</td>

7.35%

</td>

8.66%

</td>

</tr>

<tr>

31.03.2019

</td>

50000

</td>

41226

</td>

7.45%

</td>

8.66%

</td>

</tr>

<tr>

31.03.2020

</td>

50000

</td>

40700

</td>

5.92%

</td>

8.40%

</td>

</tr>

<tr>

31.12.2020

</td>

75000

</td>

24650

</td>

4.10%

</td>

7.25%

</td>

</tr>

</tbody>

</table>

<a href="../../../finances.php?view=105" target="_blank">Disclosures </a><a href="../../../finances.php?view=75" target="_blank">Bonds Investors Information</a>