Union Government on 10 February 2015 approved a proposal to increase the authorised Share Capital of the National Minorities Development and Finance Corporation (NMDFC) to 3000 crore rupees from 1500 crore rupees. NMDFC works for welfare of minorities.
The decision was taken in a Union Cabinet meet chaired by Prime Minister Narendra Modi.
Apart from this, the Cabinet also gave approval to revise the shareholding pattern to 73:26:1 from 65:26:9 among the Centre, States/Union Territories and individuals/institutions, respectively. Further, approval was also given for restructuring of the NMFDC's business model.
The decision will enlarge the quantum of funds available for economic activities, better coverage and enhanced outreach.
This Enhancement of share capital would expand its ambit of coverage and increase disbursement of funds to larger sections of the economically deprived minority population. The target of NMDFC for the year 2014-15 is to cover 97000 beneficiaries.
National Minorities Development and Finance Corporation (NMDFC)
NMDFC is a Central Sector Public Enterprise (CPSE) in the Union Ministry of Minority Affairs. It was established on 30 September 1994 as a non-profit making company under Section 25 of the Companies Act, 1956. It was constituted with an aim to provide economic assistance to the poorer sections of notified Minority Communities in the country.
NMDFC implements its schemes through 37 State Channelizing Agencies in 29 States/UTs, NMDFC will tie up with the Nodal Bank wherever required to enhance its outreach.
When: 10 February 2015