FCI plans to raise Rs 8,000cr via bonds issue in FY14

Tags: News
State-run Food Corporation of India is planning to raise Rs 8,000 crore through issue of bonds in the current fiscal to improve its working capital.

"The Board of Directors has given approval for issuing bonds to raise Rs 8,000 crore this year," a senior FCI official told PTI.

Last year, Food Corporation of India (FCI) had raised Rs 5,000 crore via bonds issue though it had sought approval for Rs 13,000 crore to improve cash flow for working capital.

The FCI is working on the proposal and will be sent to the Food Ministry soon, the official added.

According to the official, FCI is mulling issuing bonds with 10-15 years maturity period and the interest rate will be decided through the open bidding process.

The official also mentioned that it may raise the entire Rs 8,000 crore in one-go or may issue multiple offers depending upon the market situation.

The bid could be made for minimum amount of Rs 250 crore, he added.

Last year, FCI had raised Rs 5,000 crore through issuing bonds at an interest rate of 8.62 per cent for 10 years maturity period and 8.80 per cent for 15 years. The issue was over-subscribed by 1.77 times.

The organisation is facing financial crunch because it has huge dues. It had dues of over Rs 1,00,000 crore, including arrears, till last fiscal, while the Centre had provided only Rs 72,000 crore for the same period.

The organisation is currently handling 77 million tonnes of foodgrains stock.


  • Despite challenges, India’s target of 33-35% reduction of carbon emission can be achieved

    There are responsibilities which go with being a global power and there is no issue bigger than environment where a country has to demonstrate it mean


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Tushar Gandhi

Will Digital India feed the starving?

For the past few days, Digital India has become as ...

Purnendu Ghosh

Spending time in a fictional world

Our world consists of both fiction and non-fiction. Our reaction ...

Shona Adhikari

Tapestries have become the talk of the town

Bringing various forms of art together in festivals, is what ...


William D. Green

Chairman & CEO, Accenture