Government today approved a proposal to increase by Rs 200 crore the authorised share capital of National Scheduled Castes Finance and Development Corporation (NSFDC).
"Cabinet, chaired by Prime Minister Narendra Modi, gave its approval for enhancement of authorized share capital of NSFDC, a Central Public Sector Enterprise (CPSE) working under the aegis of the Ministry of Social Justice & Empowerment from Rs 1,000 crore to Rs 1,200 crore," an official statement said.
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, said the ministry's statement.
Enhancement of share capital will 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. NSFDC implements its schemes through 37 State channelising agencies in 32 States/UTs.
It will also implement its schemes through select Public Sector Banks, Regional Rural Banks and Other Institutions, wherever required, to enhance its outreach.
NSFDC provides loans through Channelising Agencies at concessional interest rates for self-employment and economic development activities to its target group.
It 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 authorised share capital of Rs 1,000 crore by paying Rs 998.13 crore to NSFDC. Hence, it became essential to enhance the authorised share capital of the corporation to expand its ambit of work, the statement said.
