Presented By:

Aditi Gandhi
 INTRODUCTION
The Government of India set up the IFCI under IFCI Act in
July 1948.

It is the first development financial institution in the county to

cater to the long-term finance needs of the industrial sectors.

The main objective of IFCI is to making medium & long term

credits more readily available for industrial concerns in India.
 Cont…
The authorized capital of the corporation as per IFCI Act 1948,
was Rs.10 crores. It was raised to Rs.20 crores by the
Amendment Act 1972.

50% of the share capital is held by the IDBI & remaining 50%
by banks, cooperative banks, insurance company, investment
trusts etc.,
 ROLE OF IFCI

IFCI plays a pivotal role and its principal activities

include:
Financing Activities
Incidental Activities
Promotional Activities
 Financing Activities
IFCI’s financing operation includes:
 Project Financing -
Financial assistance is provided by way of :
• Rupee loans
• Loans in Foreign currencies
• Underwriting of subscription to shares and debentures
• Providing guarantee for deferred payments and loans
 Cont…
 Financial Services –
IFCI provides tailor made assistance to meet specific needs of
corporates through specifically designed schemes.

● The fee based services offered by it are guarantees and letters

of credit.

● The fund based products offered are equipment finance,

equipment credit, equipment leasing, short term loans, etc.
 Cont…
 Corporate Advisory Services –
● IFCI provides customized services in areas of investment
appraisals, corporate finance, business restructuring and
formation of joint ventures.

● It also provides consultancy services to regulatory agencies in

infrastructure sectors , namely, electricity, telecom, oil and gas,
etc.
 Incidental Activities
IFCI has been authorized by Industrial Finance Corporation
( Amendment) Act, 1982 to undertake incidental activities.

Undertaking research & surveys for evaluating or dealing with

marketing or investments and undertaking & carrying on
techno-economic studies.

Providing technical & administrative assistance to any

industrial concern for the promotion, management or
expansion of any industry.
 Promotional Activities
The objective of IFCI in this case has been:

Fill in the gaps in the industrial infrastructure for promotion &

growth of industries.

To provide much needed guidance in project identification,

formulation, implementation, operation etc., to the new, tiny,
small scale and medium scale entrepreneurs.

To improve the productivity of human and material resources.