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Role of Ifci

IFCI was established in 1948 as India's first development financial institution to provide long-term financing to industries. It plays a pivotal role in project financing, financial services, and corporate advisory services. These include rupee and foreign currency loans, underwriting shares and debentures, guarantees, and technical assistance. IFCI also engages in research, surveys, and techno-economic studies to promote industry. Its objective is to fill infrastructure gaps, guide entrepreneurs, and improve productivity.

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Aditi Gandhi
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3K views10 pages

Role of Ifci

IFCI was established in 1948 as India's first development financial institution to provide long-term financing to industries. It plays a pivotal role in project financing, financial services, and corporate advisory services. These include rupee and foreign currency loans, underwriting shares and debentures, guarantees, and technical assistance. IFCI also engages in research, surveys, and techno-economic studies to promote industry. Its objective is to fill infrastructure gaps, guide entrepreneurs, and improve productivity.

Uploaded by

Aditi Gandhi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Presented By:

Aditi Gandhi
INTRODUCTION
The Government of India set up the IFCI under IFCI Act in
July 1948.

It is the first development financial institution in the county to


cater to the long-term finance needs of the industrial sectors.

The main objective of IFCI is to making medium & long term


credits more readily available for industrial concerns in India.
Cont…
The authorized capital of the corporation as per IFCI Act 1948,
was Rs.10 crores. It was raised to Rs.20 crores by the
Amendment Act 1972.

50% of the share capital is held by the IDBI & remaining 50%
by banks, cooperative banks, insurance company, investment
trusts etc.,
ROLE OF IFCI

IFCI plays a pivotal role and its principal activities


include:
Financing Activities
Incidental Activities
Promotional Activities
Financing Activities
IFCI’s financing operation includes:
 Project Financing -
Financial assistance is provided by way of :
• Rupee loans
• Loans in Foreign currencies
• Underwriting of subscription to shares and debentures
• Providing guarantee for deferred payments and loans
Cont…
 Financial Services –
IFCI provides tailor made assistance to meet specific needs of
corporates through specifically designed schemes.

● The fee based services offered by it are guarantees and letters


of credit.

● The fund based products offered are equipment finance,


equipment credit, equipment leasing, short term loans, etc.
Cont…
 Corporate Advisory Services –
● IFCI provides customized services in areas of investment
appraisals, corporate finance, business restructuring and
formation of joint ventures.

● It also provides consultancy services to regulatory agencies in


infrastructure sectors , namely, electricity, telecom, oil and gas,
etc.
Incidental Activities
IFCI has been authorized by Industrial Finance Corporation
( Amendment) Act, 1982 to undertake incidental activities.

Undertaking research & surveys for evaluating or dealing with


marketing or investments and undertaking & carrying on
techno-economic studies.

Providing technical & administrative assistance to any


industrial concern for the promotion, management or
expansion of any industry.
Promotional Activities
The objective of IFCI in this case has been:

Fill in the gaps in the industrial infrastructure for promotion &


growth of industries.

To provide much needed guidance in project identification,


formulation, implementation, operation etc., to the new, tiny,
small scale and medium scale entrepreneurs.

To improve the productivity of human and material resources.

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