The Food Corporation of India (FCI) is set to raise short-term debt of Rs 50,000 crore from scheduled banks for a three-month tenure, with a green shoe option to mop up an additional Rs 25,000 crore, a senior government official said on Monday.
The funds are being raised to bridge cash flow mismatches arising from procurement and distribution of foodgrains.
Tenders submitted in this regard will be opened on May 22.
Total borrowings under the tender will not exceed Rs 75,000 crore at any point of time, the official added.
The short-term loans will be on an unsecured basis. Notably, the government of India guarantee of Rs 6,000 crore available for food credit to FCI will not be extended to these borrowings.
As per the tender terms, offers must remain valid up to August 31, with loan disbursals to be made in tranches in line with FCI’s operational requirements.
FCI, the government’s nodal agency for procurement and distribution of foodgrains to ration card holders and beneficiaries