Lok Sabha Question No. 3174 (UNSTARRED), answered on 2016-03-16
Subject: Share of NMDFC
Ministry: MINORITY AFFAIRS
Asked by: RODMAL NAGAR

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA UNSTARRED QUESTION No. 3174

## TO BE ANSWERED ON 16.03.2016

## SHARE OF NMDFC

## 3174.  SHRI NAGAR RODMAL:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a) whether the Government has increased the authorized share capital of National Minorities Development and Finance Corporation (NMDFC);
- (b) if so, the details thereof;
- (c) the funds sanctioned and released to NMDFC during each of the last three years and the current year; and
- (d) the steps taken by the Government to strengthen the NMDFC?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MINORITY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI)

- (a) Yes, Madam.
- (b) In  pursuance  of  decision  taken  by  the  Union  Cabinet  on  10.2.2015,  the Government  has  increased  the authorized share capital of National Minorities Development  and  Finance  Corporation  (NMDFC)  from  Rs.  1500  crore  to  Rs.  3000 crore.
- (c) Funds are released by the Ministry to NMDFC as contribution of Central share in  its  equity.  The  details  of  budgetary  allocation  made  by  Central  Government  for equity contribution to NMDFC during last three years and current year are as under:-

## (Rs. in crore)

| Year    |   Budgetary Allocation for Central Equity contribution to NMDFC |   Actual contribution in equity of NMDFC by Ministry |
|---------|-----------------------------------------------------------------|------------------------------------------------------|
| 2012-13 |                                                             120 |                                                99.64 |
| 2013-14 |                                                             120 |                                                 0    |
| 2014-15 |                                                             120 |                                                30    |
| 2015-16 |                                                             120 |                                               120    |

- (d) In order to strengthen NMDFC,the following steps have been taken:-
- 1) The Central share has been increased in the Share holding pattern of NMDFC as the  share  holding  pattern  has  been  revised  from  65:26:9  to  73:26:1  among Centre,  States/  UTs  and  Individuals/  Institutions  respectively.  With  increase  in Authorised Share Capital and revised shareholding pattern of NMDFC, the Central Government is in a position to contribute its share capital to the NMDFC and the NMDFC  will  be  able  to  implement  its  schemes  as  per  annual  plans  more effectively.
- 2) NMDFC  implements  its  lending  schemes  through  State  Channelizing  Agencies (SCAs) nominated by respective State Governments/UT Administration. Ministry implements  a  performance  based  scheme  for  providing  Grants-in-Aid  to  SCAs through NMDFC, for strengthening their infrastructure and lending operations.
- 3) NMDFC  has  also  been  directed  to  explore  tie  up  with  Banks  as  alternative channels to enhance outreach.
- 4) NMDFC has raised the annual family income eligibility criterion upto Rs. 6.00 lakh per annum to enhance outreach. Moreover, the quantum of loan amount under Term Loans, Micro Finance and Educational Loan schemes has been increased. Quantum of loan under Term Loan scheme has been increased from Rs.10.00 lakh to Rs.30.00 lakh while under Micro-Finance scheme, it has been increased from  Rs.50,000/-  to  Rs.1.50  lakh  per  member  of  a  Self  Help  Group.  Under Education Loan scheme, the quantum of loan has been increased from Rs.5.00 lakh to Rs.20.00 lakh for domestic courses and from Rs.10.00 lakh to Rs.30.00 lakh for courses abroad.
- 5) NMDFC has established Maulana Azad National Academy for Skills (MANAS) on 11/11/2014  as  a  Special  Purpose  Vehicle  (SPV)  for  providing  an  integrated institutional arrangement,  to  meet  all skill  development  /entrepreneurship development  needs  of the minority communities and provide sustainable livelihood options in terms of self-employment /wage employment opportunities with primary focus of self-employment with credit linkages.

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