Press Information Bureau

Government of India

Ministry of Minority Affairs

09-December-2011 17:04 IST

The activities and achievements of National Minorities Development and Finance Corporation (NMDFC) are steadily increasing over the years. During the last financial year i.e. 2010-11, NMDFC has disbursed Rs. 233.26 crore for assisting 1,58,510 beneficiaries which is the highest achievement made by NMDFC so far. Giving this information in written reply to a question in the Lok Sabha, Shri Vincent H. Pala, Minister of State for Minority Affairs, said that in 2011-12 (up to 29.11.2011), Rs. 80.29 crore have been disbursed to 21,996 beneficiaries. NMDFC has achieved its targets fixed under the Memorandum of Understanding (MOU) signed with the Ministry of Minority Affairs during 2010-11. In order to enable the NMDFC to increase its operations, the Government of India has been providing share capital contribution to NMDFC. The authorized share capital of NMDFC has been enhanced from Rs. 1000 crores to Rs. 1500 crores during 2010-11. The equity released by the Government to NMDFC during the XIth Five Year Plan is given below:

                                         Year                Funds given by the Government (Rs. in crore)

2007-08                                   70.00

2008-09                                   75.00

2009-10                                   125.00

2010-11                                   115.00

2011-12                                   115.00

Shri Pala further informed the House that to further strengthen the NMDFC and suggest measures to increase its outreach, a consultancy firm was appointed to study the restructuring of NMDFC. The consultant has recently submitted its recommendations.        

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Authorized share capital increase enables expanded government capital contributions and outreach for minority development finance corporation operations. NMDFC increased disbursements and met targets under its Memorandum of Understanding with the Ministry; the Government raised NMDFC's authorized share capital and provided phased equity contributions during the XIth Five Year Plan, and a consultancy was appointed to recommend restructuring measures to enhance institutional capacity and outreach.