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 avail able for industrial concerns in India.
The main focus of The Industrial Finance Corporation was to provide
long-term financial benefits to various sectors in Indian industry and it
has fulfilled it quite efficiently. IFCI has also been quite subservient in implementing the number of things that the Government of India planned up to ensure financial benefits into services. IFCI carried out all the responsibilities regarding Government's industrial policy initiatives till the establishment of ICICI in 1956and IDBI in 1964.
CAPITAL
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 Act1972. 50% of the share capital is held by the IDBI &remaining 50% by banks, cooperative banks , insurance company, investment trusts etc.,
ACTIVITIES
Direct Financing Incidental Activities Promotional Activities
Direct financing
Rupee loans Sub loans in foreign currency Underwriting of and/or direct subscription to the shares & debentures of public limited companies. Foreign currency loans raised by industries from foreign institutions Rupee loans raised by industries from schedule dbanks or state cooperative banks. Guaranteeing of deferred payments for machinery {imported & indigenous}
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
Merchant Banking operations. 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; a better deal to the weaker, underprivileged sections of the society in line with socioeconomic objectives laid down by Government of India.
Areas of assistance
Assistance from IFCI single or jointly with o ther institutions is available for: Setting up of new industrial projects. Expansion of existing units/ diversification i n to new lines of activity. Renovation / rehabilitation / Modernization of existing units.
Resource are in the form of:
Resources are in the form of: Loans from RBI Share capital Retained earnings Repayment of loan Issue of bonds Loans from government Lines of credit from foreign lending agencies Commercial borrowings in international capital market.
Ifci contribution in improvement of Indian industry
The Industrial Finance Corporation of India had made a wide range of contributions in various sectors in Indian industry. Some of the noteworthy contributions of IFCI include improvement of Indian industry, export promotion, import permutation, development in business , pollution control measures, energy preservation, and rendering direct and in direct employment. There are a number of industrial sectors that have been massively benefited from The Industrial Finance Corporation of India Limited. They are as follow :
Capital & intermediate goods industry that includes products such as electronics, synthetic plastics, synthetic fibers, and miscellaneous chemicals Service industries that include hotels and hospitals Consumer goods industry such as textiles, paper, and sugar Infrastructure sector which involves power generation and telecom services Basic industries involving products such as cement, iron & steel, fertilizers, basic chemicals
The economic contribution
The economic contributions of The Industrial Finance Corporation of India Limited has been quite largescale since its establishment. IFCI has sanctioned funds of an amount of Rs. 462 billion to5707 companies and has paid out Rs. 444 billion in totality. The business entrepreneurs have got immense help from IFCI as well when they started off with any new business or even on their way to exp and the already existing business. IFCI has been a great helping hand to the entire industrial sector in India and most importantly it was the only support at the time of scarcity
