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  1. 1. Introduction :- At the time of independence in 1947, Indias capital market was relatively under-developed. Although there was significant demand for new capital, there was a dearth of providers.Merchant bankers and underwriting firms were almost non-existent and commercial banks were notequipped to provide long-term industrial finance in any significant manner.It is against this backdrop that the government established The Industrial Finance Corporation of India(IFCI) on July 1, 1948, as the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector. The newly-established DFI was provided access to low-costfunds through the central banks Statutory Liquidity Ratio or SLR which in turn enabled it to provideloans and advances to corporate borrowers at concessional rates.The main focus of The Industrial Finance Corporation was to provide long-term financial benefits tovarious sectors in Indian industry and it has fulfilled it quite efficiently. IFCI has also been quitesubservient in implementing the number of things that the Government of India planned up to ensurefinancial benefits into services. IFCI carried out all the responsibilities regarding Governments industrialpolicy initiatives till the establishment of ICICI in 1956 and IDBI in 1964.Contribution:- Until the establishment of ICICI in 1956 and IDBI in 1964, IFCI remained solelyresponsible for implementation of the government’s industrial policy initiatives. It made a significantcontribution to the modernization of Indian industry, export promotion, import substitution, pollutioncontrol, energy conservation and generation through commercially viable and market- friendlyinitiatives. Some sectors that have directly benefited from IFCI include:-