This document defines a financial institution and state industrial development corporations (SIDCs). It explains that SIDCs were established under the Companies Act of 1956 as wholly owned undertakings of state governments to promote industrial development. SIDCs provide financial assistance to entrepreneurs through loans and guarantees. They also undertake developmental activities like constructing industrial infrastructure and administering state incentive schemes. The document lists 22 SIDCs currently functioning in India and some of their major functions like providing risk capital, financial assistance, and developing industrial areas.

1. By
MAHITHA
SHARADA
MANASA
SIRISHA
SANTOSHI
VASANTHI

2. DEFINITION
A financial institution is an institution which
collects funds from the public and places them
in financial assets, such as deposits , loans ,
and bonds , rather than tangible property

3. State industrial development corporation

4. • Sidc have been established under companies
act ,1956. as a wholly owned undertakings of
the government .The State Industrial
Development Corporations have been set up
by the State Governments as companies
wholly owned by them. At present, 22 such
SIDCs are functioning in India. SIDCs are not
merely financing agencies, but are intended
to act as instruments for accelerating the
pace of industrialization in the respective
States.

5. • SIDCs also undertake the development of industrial
areas, construction of sheds and provision of
infrastructural facilities .and also the development of
new growth centres. They also administer various
State Government incentive schemes.
• The IDBI grants refinance to SIDCs also against the
term loans provided by them. SIDCs also borrow by
way of bonds and from the Government and accept
deposits to augment their resources.
• The SIDC activities have now widened to include
equipment leasing, providing tax benefits under state
governments package scheme of incentives
,merchant banking services and setting up mutual
funds. Some of the SIDCs also offer a package of
development services such as technical guidance,
assistance in plant location and coordination with
other agencies

6. • The aim of promoting industrial development in
respective state and provide financial assistance to
small entrepreneurs
• Besides providing financial assistance to industrial
concerns by way of loans, guarantees and
underwriting of or direct subscriptions to shares and
debentures, the SIDCs undertake various
promotional activities such as conducting techno-
economic surveys, project identification, preparation
of feasibility studies, selection and training of
entrepreneurs. They also promote joint sector
projects in association with private promoters. In
such projects SIDCs take 26%, private co-promoter
takes 25% of the equity, and the rest is offered to
the investing public.

7. MAJOR FUNCTIONS OF SIDC
• providing risk capital to entrepreneur by way of equity
participation and seed capital assistance
• grant of financial assistance to industrial units by way of
loans, guarantees and of late, lease of finance by some
corporation
• administering incentive schemes of central/state
government
• promotional activities such as identification of project
ideas through industrial potential surveys, preparation of
feasibility reports, selection and training of entrepreneurs
; and
• developing industrial areas by providing infrastructural
facilities

8. LIST OF STATE INDUSTRIAL
DEVELOPMENT CORPORATIONS IN
INDIA
• Andhra Pradesh Industrial Infrastructure
Corporation
• Chhattisgarh State Industrial Development
Corporation
• Coimbatore District Small Industries Association
• Gujarat Industrial Development Corporation
• Industrial Promotion & Investment Corporation of
Odisha
• Jammu and Kashmir State Industrial Development
Corporation
• Kerala Industrial Infrastructure Development
Corporation
• Kerala Small Industries Development Corporation
Limited
• Kerala State Industrial Development Corporation
• Maharashtra Industrial Development Corporation
• Odisha Industrial Infrastructure Development
Corporation
• Rajasthan State Industrial Development and
Investment Corporation
• State Industries Promotion Corporation of Tamil
Nadu
• Tamil Nadu Industrial Investment Corporation
Limited
• Small Industries Development Corporation
• State Industrial Development Corporation of
Uttarakhand
• Tamil Nadu Industrial Development Corporation
• Tamil Nadu Small Industries Corporation Limited
• Tamil Nadu Small Industries Development
Corporation Limited
• Telangana State Industrial Infrastructure
Corporation
• Tripura Industrial Development Corporation
• West Bengal Electronics Industry Development
Corporation