What is functions of ifci?

Answer 1

Information about Industrial Finance Corporation of India Ltd. or IFCI.

Establishment

The Industrial Finance Corporation of India was established on 1st July, 1948 under the Industrial Finance Corporation Act, 1948 to provide financial assistance (medium and long-term) to large-scale industries all over the country. On 1st July, 1997 the name of Industrial Finance Corporation of India was changed as 'Industrial Finance Corporation of India Limited'.

Objects

The main object of Industrial Finance Corporation of India Limited is to provide financial assistance to large-scale industrial units particularly at a time when the normal banking accommodation is inadequate and not forthcoming to assist these industrial units. Industrial enterprises, organized on the basis of proprietary or private limited company basis, cannot take loans from this corporation. Only the public limited companies are eligible to take loans from it.

Functions

The main functions of Industrial Finance Corporation of India Limited are as follows:

• To grant medium and long-term loans ranging between Rs. 30 lakhs to Rs. 2 crores to large-sized industrial units which are repayable within a period of 25 years.
• To guarantee loans raised by the industrial units which are repayable within a period of 25 years.
• To underwrite the issue of stocks, shares, debentures or bonds b industrial units but must dispose of such securities within 7 years.
• To issue debentures.
• To accept public deposits up to Rs. 10 crores for a period of five years only.
• To act as an agent for the Central Government and for the World Bank in respect of loans sanctioned by them to industrial units.
• To guarantee deferred payments by importers of capital goods, who are able to obtain this concession from foreign manufacturers.
• Miscellaneous: (i) To provide technical guidance to industrial units as to finance (loans), (ii) To guarantee loans in foreign currency. (iii) To examine utility of loans granted to industrial units, (iv) To guarantee loans raised from scheduled banks and State Co-operative Banks.

Management

The Industrial Finance Corporation or India is managed by a board of directors consisting of 13 members in all, both nominated and elected. The head of the board of directors is called chairman appointed by the Central Government with the consultation of board of directors for a period of three years only. Besides this board of directors, there is also a central committee consisting of five members in all, including president.