Functions of institutions providing industrial finance. Both at the central level as well as the state level.

1. Group Leader :-
Group Members :- Anamika Chauhan
Yashika Vala
Barot Shital
Sumitra Thakor
Krunal Khatri
Iqbal Bloch

3. 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.

4. 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.

5. 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.

7. INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA
(ICICI)
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

8. 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.

9. 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

10. 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

11.  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.

12.  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.

13. 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.

14. 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.

15. 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.