Entrepreneurship Management

Institutional Assistance to SSI

• Industrial Finance Corporation of India (IFCI)

• Industrial Credit and Investment Corporation of India (ICICI)

• Industrial Development Bank of India (IDBI)

• Maharashtra State Financial Corporation (MSFC)

• State Industrial and Investment Corporation of Maharashtra Limited

(SIICOM)

• Maharashtra Small scale Industries Development Corporation Ltd

(MSSIDC)

• National Small Industries Corporation (NSIC)

• District Industrial Centres (DIC)

• Technical Consultancy Organisations (TCO)

 Entrepreneurship Management

Industrial Finance Corporation of India

(IFCI)
• Established on July 1, 1948 to cater to the long-term finance needs
of the industrial sector

• Until the establishment of ICICI in 1956 and IDBI in 1964, IFCI

remained solely responsible for implementation of the
government’s industrial policy initiatives

• Some sectors that have directly benefited from IFCI’s disbursals

include:

– Consumer goods industry (textiles, paper, sugar)

– Service industries (hotels, hospitals)
– Basic industries (iron & steel, fertilizers, basic chemicals, cement)
– Capital & intermediate goods industries (electronics, synthetic fibers,
synthetic, plastics, miscellaneous chemicals)
– Infrastructure (power generation, telecom services)

• IFCI has sanctioned financial assistance of Rs 462 billion to 5707

concerns

• IFCI has promoted Technical Consultancy Organizations (TCOs)

 Entrepreneurship Management

Industrial Credit and Investment

Corporation of India (ICICI)
• Incorporated in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry

• Objective of creating a development financial institution for

providing medium-term and long-term project financing

• ICICI Bank, ICICI Venture, ICICI Securities Limited (i-SEC), ICICI

Prudential Life Insurance Company, ICICI Lombard General
Insurance Company Limited

• Activities:

– Underwriting of shares, bonds, stocks

– Provision of loans in foreign currency to pay for imported
equipment
 Entrepreneurship Management

Industrial Development Bank of India

(IDBI)
• Incorporated in 1964

• National Stock Exchange of India (NSE), National Securities

Depository Services Ltd. (NSDL), Stock Holding Corporation of
India (SHCIL) are built by IDBI

• Services offered:

– Loans against securities

– Underwriting
– Loans for modernisation, renovation
– Assist financial institution by subscription to shares, bonds
– Direct financing of exports
– Refinancing industrial loans granted by banks, financial
institutions
 Entrepreneurship Management

Maharashtra State Financial

Corporation (MSFC)
• Established in 1953 as Bombay State Finance Corporation

• Operational in Maharashtra since 1962

• Provides term loan assistance to Small and Medium scale

industries

• Activities:

– Major share in small scale units

– Encouragement to first generation entrepreneurs
– Dispersal of industries/service units to the backward and
developing areas
– Total sanction: Rs. 3688 crores including term loans of Rs. 3414
crores
 Entrepreneurship Management

State Industrial and Investment

Corporation of Maharashtra Limited
(SIICOM)
• Established in 1966, 100% state owned company

• Objective of industrialising the backward areas of the State of

Maharashtra

• Extended long term finance of more than Rs. 4,000 crores to over
3,000 units

• Activities include advising on:

– Project Identification/Location
– Govt. Clearances
– Assistance in Legal Documentation
– Arranging for infrastructure
– Merchant Banking
– Equipment Leasing
 Entrepreneurship Management

Maharashtra Small scale Industries

Development corporation Limited
(MSSIDC)
• Established in 1962

• Initially, conceived as an agency for supply of raw materials to

SSI units and also to extend marketing assistance to these units
in selling their products

• Provides services like – Marketing Assistance, Raw Materials

availability, Commercial warehousing, Exports (making export
quota available, assistance in packing credit, documentation,
shipping etc) and Handicrafts

• MSSIDC started with a share capital of Rs. 10 lakhs in 1963-64

and its turnover was Rs.86.57 lakhs

• Today, paid up capital is 9.13 crores

 Entrepreneurship Management

National Small Industries Corporation

(NSIC)
• Establishment in 1955

• Services include:

– Marketing support (Exhibitions and Technology Fairs, Buyer-

seller meets, export of products)

– Credit support (Financing for procurement of Raw Material,

financing for marketing activities)

– Technology support (Advising on application of new techniques,

material testing facilities, common facility support, classroom
and practical training for skill up gradation)

– Small Enterprise Establishment Programme (SEEP)

– Insurance of Export Credit for Micro and Small Enterprises

 Entrepreneurship Management

District Industrial Centres (DIC)

• Objective - provide a focal point for the promotion of SSI, provide
service and support to the decentralized industries under a single
roof at pre investment, investment and post investment stage

• Initiated from 1st May 1978

• Main activities/functions of the Public authority:

– Registration of SSI
– Census of SSI
– Financing of SSI through banks
– Provision of industrial estates
– Implementation of Industrial Policy
– Subsidies to SSI
– Technical assistance
– Matters relating to KVIC
– Trade fairs, exhibition, awareness programme
– Training
 Entrepreneurship Management

Technical Consultancy Organisations

(TCO)
• Set up by IDBI, IFCI and ICICI, state level financial institutions
and commercial banks

• Services:

– Consultants to individual entrepreneurs, government agencies,

commercial banks in task of industrial development

– Project Consultancy (Identify industrial potential through

research, feasibility reports, pre investment studies, providing
assistance to potential entrepreneurs)

– Management consultancy (Project supervision, technical and

administrative assistance, rehabilitation of sick units)
– Market consultancy ( Market research and surveys for specific
products)

– Export consultancy (Assistance to export oriented projects for

modern technology)