Minorities Development Finance Corporation to have 1000 crores share capital

New Delhi, Aug 27 (ANI): The Union Cabinet today accorded approval for increasing the authorized share capital of the National Minorities Development Finance Corporation (NMDFC) from Rs.850 crores to Rs.1000 crores.

The share of the Government of India, the State Governments and individuals/institutions will be Rs.650 crores Rs.260 crores and Rs.90 crores respectively.

The NMDFC is a not for profit company, registered under Section 25 of the Companies' Act with share contribution from the Government of India (65 per cent), the State Governments (26 per cent) and individuals/institutions (9 per cent).

It provides financial assistance to people belonging to minorities living below double the poverty line for self-employment.

The NMDFC is greatly dependent on Central equity contribution. The enhanced authorised share capital will enable the Central Government release its full budgetary provision of Rs.125 crores towards equity of NMDFC in 2009-10.

The equity contribution from the Government of India, together with contribution from the State Governments and individuals/institutions and also the recovery of loans from beneficiaries will be spent for providing term loans and micro finance through State Channelizing Agencies (SCAs) and for providing micro finance through NGOs.

The NMDFC also provides educational loans and has promotional schemes like vocational training.

NMDFC's schemes are targeted for economic upliftment of people from minority communities living below double the poverty line through self employment.

The budgetary provision of Rs.125 crores will be released to the NMDFC by way of equity contribution of the Central Government during 2009-10.

As per the Memorandum of Understanding between the Government of India and the NMDFC, 66,000 beneficiaries are to be covered during 2009-10.

NMDFC's schemes envisage to cover minority communities in the entire country through State Channelizing Agencies and NGOs.

As on March 31, the NMDFC has disbursed an amount of Rs.1190.84 crores covering 4,34,329 beneficiaries belonging to the minority communities through their term loan and micro finance schemes. (ANI)