 bid no - of 1181 the food corporations (amendment) bill, 188'1 a billfurther to amend the food corporations act, 1964 :s it enacted by parliament in the thirty-eighth year of the repub1le of india as follows:-1 this act may be called the food corporations (amendment) act, sbod 1887 ~ o 5 j in section rt of the food cgrporations act, 1964, for 8ub-sectioa ~ (1), the followine sub-section shall be substituted, namely: -moat of act 37  (1) a food corporation may, for the pu,rpose of carrying out of 1964 its functions under this act-(a) take advances against stocks of foodgrains or other 10 foodstuffs held by it, or borrow money-(i) from any scheduled bank, or (it) from any other bank or financial institution appro  ed by the central government in this behalf, 01' 15 (iu) from any other authority, organisation or inatltution or from the public on such terms and conditions as mal ita approved by the central government, or (b) issue and sell bonds and debentures carrying intereal at such rates as may be fixed by the central government at the time the bonds or debentu"'es arc issued: provided that the amount borrowed by a food corporation under this sub-section shall nol at any thne exceed ten times the paid-up 5 capital and the reserve fu'rid establishe'~ under section 33" :sertion 27 df the food corporations act, 1984, empowers the' 1i"ood obrpiel1ttion of india -or a state food corporation estabushed under ·the ct1o take advances or borrow money from the central 'covernment or '!'om any scheduled bank or from any other bank or 'ftnancbtltnsfltuftrib ""proved by -the 'central government in this behalf against stocks of foedgrltins or otherfoodstutfs held by it for the purpose of carrying out its fmlctions under the act the provisions of the act do not pel'n'ttt a tool; 'corpo':'ation to borrow funds from other sources or to issue and aell bmtds or debentures ,2 the food corporations do not gederate any internal reboul'qft they ;require funjs both for working capital requirements as well ' for inv'£:stment purposes at present, the funds are being ,provided by amy the government and ~e banking sector 'it is proposed 'to diversify the sources of financing ,~ , 3 it is, therefore, proposed to amend section 27 of the food corporations act, 1964 (37 of 1964) to enable a food corporation to raise fundi, as and when required, for its operational as well as investment requirements by the issue of bonds and debentures and also by borrowings from the central and state government institutions or public sector enterp,rises or bodies or from public or corporate sector, on such terms and condiu,ns as may be approved by the central govel'iulle!lt 4 ""e bill seeks to achieve the above obj,ective h k l bhagat new delhi; the 18th fe'bru4-ry, 1987  i'inancial memorandum qia~ 2 of the bill proposes to amend section 27 of the food ~ rauom act, 1964, 80 as to enable the food' corporations established  the act to r~ise funds by the issue of bonds and debentures and alio by ~wnp from the central and state government institutions or other organisations, institutions or from public on such terms and condittodl  may be approved by the central government the central government may 'give guarantee to such loanc; and advances taken and bonds and de-~t\u"es issued by the corporation it is not possible to indicate the extent of borrowings that may be required by the food corporations as their need will vary from year to year it is expected that, in the flrat :yhr, the borrowings from the proposed sources may be around re 200 crorel 2 '!'be biu deas not involve any expenditure either recurring or n  ~il' "  annexure extract from the food corporations act, 1964 (37 of 1964) - • - • •borrowingpow-27 (1) a food corporation may, for the purpose of carrying out its functions under this act, take advances against stocks of foodgrains or other foodstuffs held by it, or borrow money- (i) from any scheduled bank, or ~rs of food corpo ration (ii) from any other bank or financial institution approved by the central government in this behalf - - - - - a  billfurther to amend the food corporations act, 1964 (shri h k l bhagat, minister of parliamentary affairs, food and civil supplies) 