Chapter 04: Institutional Support - Institutions - II

1. Industrial credit and investment corporation of India (ICICI)

• set up in 1955 with the objective of developing small and medium industries in private sectors.
• Its issue capital has been subscribed government, private institutions and public
• Functions: provide assistance by way of rupee and foreign currency loans, underwriting and direct subscription to shares
• It guarantees loans from other private investment sources

2. National Small Industries Corporation (NSIC)

• NSIC started in 1955 with the objective of promoting and developing SSI through out the country.
• Functions include: providing machinery on hire purchase, assisting, marketing and exports, training of personnel

3. Small Industries development Organization (SIDO)

• The objective is development of various small-scale units in different areas. SIDO is a nodal agency to identify the needs of SSI units, coordinating and monitoring the policies and programmes
• Its functions include Co-ordination, industrial development, management activities
• help SSI get updated with various information related to the small-scale industries activities

4. Industrial Development Bank of India (IDBI)

• IDBI established in 1964 as a subsidiary to RBI to coordinate the activities of various financial institutions. In 1976 it was made an autonomous institution
• It has established small scale Industrial Fund ( SSIF) and also National Equity Fund Scheme ( NEFS) to support equity to tiny and small industries
• It provided a financial assistance to the tune of Rs 1,500 crores during 1987-88.

5. Small Industries development Bank of India (SIDBI)

• set up 1989 in response to a demand from small scale industries for an apex level institution for promotion, financing and development of small scale industries
• Functions include refinancing and discounting bills, direct participation in equity type of loans
• support technology support, upgradation, quality improvement, exports ...

6. State Financial Corporations (SFC)

• set up in 1948 to provide financial assistance to medium and large- scale industries.
• In 1951 the scope was extended to small scale industries
• There are 18 SFC in different states. In Karnataka it is KSFC
  
• It provides term loans to various small categories of business. The loans are based on security such as land, bonds

7 Industrial Finance Corporation of India ( IFCI)

• set up in 1948 .
• It extends financial assistance to industries through rupee and foreign currency loans, underwriting
• Recently it has started new promotional policies such as interest subsidy scheme for women entrepreneurs.