New Delhi, Sep 11 (UNI) The Union Cabinet today cleared the proposal for restructuring of the National Minorities Development Finance Corporation(NMFDC), which would turn it into a non-deposit taking Non-Banking Finanace Company from a Section 25 Company.
The changes are aimed at making the Corporation play a more effective role in the development of minorities.
The Cabinet also approved a raise in the authorised share capital of NMDFC from Rs 750 crore to Rs 850 crore, Minister for Information and Broadcasting Priya Ranjan Dasmunsi told reporters here.
The restructured corporation would have two wings--Minority Partnership and National Wakf Development Agency.
The main focus of the private efforts should be in the field of education, jobs and social infrastructure.
An experts committee had been constituted last year to look into the problems of the Corporation. The restructuring is largely based on its recommendations.
However, the Ministry has made some modifications in the structure suggested by the committee, which was headed by Mr Nasser Munjee, chairman, Development Credit Bank.
The NMDC would shed its not-for-profit status and would act as a government-owned holding company. It will also generate its own revenue surpluses to finance welfare schemes.
The Waqf Development Agency would be providing a support service to wakfs which can avail of opportunities provided by the Corporation.
The Expert Committee Report had called for strengthening of state channelising agencies (SCAs). It had suggested that lending and borrowing rates for the SCAs should be at the prevalent market rates so that these agencies could recover their operating costs.
The NMDFC was constituted in 1994 as a Public Sector Enterprise under Section 25 of the Companies Act.
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