FCI to Raise Short-Term Loan

With an aim to meet the cost of procurement, state-run Food Corporation of India (FCI) has invited bids from the banks to raise short-term loan of Rs 20,000 crore. According to sources, its subsidy arrears have touched Rs 58,650 crore, as on March 31.

"FCI intends to raise short-term loan of Rs 20,000 crore with greenshoe option (the borrowing through STL will not exceed Rs 30,000 crore at any point of time) from scheduled banks for one month/three months maturity," the firm said in a tender document.

The government had earlier confirms that it may consider additional food subsidy over and above the budgetary provision to bring down the subsidy arrears in this fiscal year. The last date for submission of bids is July 1.