Group Leader :-

Group Members :- Anamika Chauhan

Yashika Vala

Barot Shital

Sumitra Thakor

Krunal Khatri

Iqbal Bloch

Finance is the life-blood of industry. It is

finance which industries to mobilise real

resources for organising the product

various types of goods and services.

After independence, a number of

specialised financial institutions and

developmental banks have come to be

established at the Central as well as at

the State level.

At the Central level

the Industrial Finance Corporation of India

(IFC),

the Industrial Developmental Bank of India (IDBI),

the Industrial Credit and Investment Corporation of India (ICICI),

the Industrial Reconstruction Corporation of India (IRCI) AND SO ON.

At the State level

In addition, there are 18 State Financial Corporations

(SFCs), and 22 State Industrial

Development/Investment Corporations (SIDCs/SIICs).

Financial Assistance From Commercial

Banks

Life Insurance Corporation of India (LIC), Unit Trust of India (UTI), and investment companies.

The Industrial Credit and Investment Corporation of India (ICICI) was established in 1955.

Types of Financial Assistance Given by the ICICI

Other Functions of the ICICI

Terms of Financial Assistance by the ICICI

INDUSTRIAL CREDIT AND INVESTMENT

CORPORATION OF INDIA

(ICICI)

The Industrial Development Bank of India (IDBI) was established on 1st July, 1964, .but in 1975 the ownership of the IDBI was transferred to the Govt. of India.

Direct assistance to schemes

Soft Loan Scheme of the IDBI

Technical Development Fund Scheme of the IDBI

Refinance of Industrial Loans

The IDBI's Scheme of Discounting of Bills

Seed Capital Assistance Scheme of the IDBI

Export Finance and Counselling Service of the IDBI

Subscription to Share Capital and Bonds of Other Financial Institutions

Development Assistance Fund of the IDBI

Promotional Activities of the IDBI

The IDBFs Technical Assistance Fund

Small, Tiny and Village Industries and the IDBI

The State Financial Corporation Act was passed by Parliament in 1951. This Act of 1951 enabled the State Governments to establish State Financial Corporations (SFCs) with the objective of making a significant contribution to industrial development.

At present, 18 State Financial Corporations have been functioning-The SFCs are meant to provide financial assistance to medium and small industrial units in the respective States.

There are 22 SIDCs/ SIICs functioning in the country.

The main objective behind their establishment is to promote industrial development of respective States and Union Territories.

In States like Karnataka and Bihar, the SIDCs/SIICs are empowered to undertake special activities like development of industrial areas, establishing and managing Industrial Estates, generation and distribution of electricity and so on.

As at the end of June 1980, the total financial assistance sanctioned by the SIDCs amounted to Rs. 624 crores arid disbursement Rs. 384 crores.

The Unit Trust of India (UTI) was established in 1964. The paid-up capital of the UTI was Rs. 5 crores. It was subscribed fully by the Reserve Bank of India, the State Bank of India, other scheduled commercial banks and financial institutions and the Life Insurance Corporation of India (LIC).

The management and administration of the UTI is entrusted to a Board of Trustees appointed by the Government of India.

To provide equitable financial instruments to

mobilise savings from the lower and middle-

class people by selling units of small

denomination (of the face value of Rs. 10 per

unit).

To provide a financial instrument to the

purchaser of units to have a share in the

increasing industrial prosperity of the

country to as many people in different parts

of the country as possible.

To pay dividends on units to their purchasers.

Life Insurance was nationalised in 1956 and is managed since then by the Life Insurance Corporation (LIC).

The LIC collects huge amounts annually by way of premium from life and endowment policy-holders spread all over India. Not all claims mature at one and the same time which in effect means that the LIC has considerable amount of funds on its hand which it can invest profitably.