By TwoCircles.net Staff Correspondent,
New Delhi: The Union Cabinet today accorded approval for increasing the authorized share capital of National Minorities Development Finance Corporation (NMDFC) from Rs.850 crores to Rs.1000 crores.
The share of Government of India, State Governments and individuals/institutions will be Rs.650 crores, Rs.260 crores and Rs.90 crores respectively.
NMDFC is a non-profit company, registered under Section 25 of the Companies’ Act with share contribution from Government of India (65%), State Governments (26%) and individuals/institutions (9%). It provides financial assistance to people belonging to minorities living below double the poverty line for self employment. 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 Government of India, together with contribution from State Governments and individuals/institutions and also the recovery of loans from beneficiaries is spent for providing term loans and micro finance through State Channelizing Agencies (SCAs) and for providing micro finance through NGOs. NMDFC also provides educational loans and has promotional schemes like vocational training etc.
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 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 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 31st March, 2009, 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.