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Share capital of minorities financial institution hiked

New Delhi, July 8 (IANS) The government Thursday approved a hike in the authorised share capital of the National Minorities Development Finance Corporation (NMDFC) from Rs.1,000 crore to Rs.1,500 crore to enable the company to lend more to people of the minority communities.

NMDFC’s schemes are targeted at the economic uplift of people of minority communities living below the poverty line through self-employment. NMDFC expects to cater to 87,984 beneficiaries during fiscal year 2010-11.

‘Minorities’ financial inclusion can be achieved to uplift them to intended levels and provide them skills and necessary training by extending them loans,’ said Minority Affairs Minister Salman Khurshid at a seminar organised by the Associated Chambers of Commerce and Industry.

The increase in authorised share capital will allow for release of this year’s budgetary provision of Rs.115 crore to NMDFC by way of equity contribution.

The central government’s contribution in NMDFC will be Rs.975 crore (65 percent), that of state governments will be Rs.390 crore (26 percent) and institutions including individuals Rs.135 crore (9 percent).

‘This is one way in which minorities can be given larger financial assistance. It is in view of this that the government has decided to increase the authorized capital of NMDFC,’ Khurshid said.

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