Cabinet approves hike in NSFDC's authorized share capital from Rs.1000 to Rs.1200 crore

The Union Cabinet on Wednesday gave its approval for enhancement of the authorized share capital of the National Scheduled Castes Finance and Development Corporation (NSFDC), a Central Public Sector Enterprise (CPSE) working under the aegis of the Union Ministry of Social Justice and Empowerment from Rs. 1000 crore to Rs. 1200 crore.

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The approval will enlarge the quantum of funds available for economic activities, better coverage and enhanced outreach to double the Below Poverty Line (DPL) Scheduled Caste beneficiaries. Enhancement of share capital would expand its ambit of coverage and increase disbursement of funds to larger sections of the economically deprived scheduled caste population. The target of NSFDC for the year 2015-16 is to cover 63,000 beneficiaries.

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NSFDC implements its schemes through 37 State Channelizing Agencies in 32 States/UTs. NSFDC will also implement its schemes through select Public Sector Banks, Regional Rural Banks and Other Institutions, wherever required, to enhance its outreach.

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The NSFDC provides loans through its Channelizing Agencies at concessional interest rates for self-employment & economic development activities to its target group. NSFDC also sponsors skill/entrepreneurial training programmes to assist the unemployed members of scheduled castes in wage/self-employment. The Central Government has almost exhausted its contribution of authorized share capital of Rs. 1000 crore by paying Rs.998.13 crore to NSFDC. Hence, it became essential to enhance the Authorized Share Capital of the Corporation to expand its ambit of work.