Page 274 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Indian Economic Policy

Notes Industrial Credit and Investment Corporation of India (ICICI)
The Industrial Credit and Investment Corporation was sponsored by a mission from the World Bank
for the purpose of developing small and medium industries in the private sector. It was registered in
January, 1955 under the Indian Companies Act. The aim of I.C.I.C.I. was to stimulate the promotion
of new industries, to assist the expansion and modernisation of existing industries and to furnish
technical and managerial aid so as to increase production and afford employment opportunities. The
Corporation granted :
(a) long-term or medium-term loans, both rupee loans and foreign currency loans;
(b) participated in equity capital and in debentures and underwrote new issues of shares and
debentures,
(c) guaranteed loans from other private investment sources.
(d) provided financial services such as deferred credit, leasing credit, instalment sale, asset credit
and venture capital.
There was a remarkably significant increase in financial assistance by ICICI in recent years :
Table 1: Financial Assistance by ICICI
(`` `` ` crores )
1980-81 1990-91 2000-01

Loans sanctioned 310 3,740 55,820
Disbursements 180 1,970 31,660

In a matter of 20 years, loans between, 1981 and 2001 sanctioned by ICICI had increased from ` 310
crores to over ` 55,820 crores and loans disbursed had increased from ` 180 crores to ` 31,660 crores.
The Corporation assisted industrial concerns with loans and guarantees either in rupees or in any
foreign currency. Besides, it underwrote ordinary and preference shares and debentures and it also
subscribed directly to ordinary and preference shares issues. A significant function performed by the
Corporation was the provision of foreign currency loans and advances to enable Indian Industrial
concerns to secure essential capital goods from foreign countries.
ICICI commenced leasing operation in 1983. It provided leasing assistance for computerisation,
modernisation/replacement, equipment of energy conservation, export orientation, pollution control
etc. The industries helped under leasing included textiles, engineering, chemicals, fertilizers, cement,
sugar, etc.
ICICI had set up a Merchant Banking Division which was working very creditably. ICICI had joined
with J.P. Morgan & Co. to set up ICICI Securities and Finance Co. Ltd. (I-SEC) to offer services in
areas relating to issue management and credit syndication services. ICICI has also set up ICICI Asset
Management Co Ltd. in June 1993 to operate the schemes of the ICICI Mutual Fund— this was later
called Prudential ICICI Mutual Fund. Yet another subsidiary called ICICI Investors Services Ltd
(March 1994) and ICICI Banking Corporation Ltd. (January 1994) were also set up.
Apart from these, ICICI had promoted the following companies and institutions in recent years :
(a) Credit Rating Information Services of India Ltd. (CRISIL), set up by ICICI in association with
Unit Trust of India (UTI) to provide credit rating services to the corporate sector;
(b) Technology Development and Information Company of India Ltd. (TDICI), promoted by ICICI,
to finance the transfer and upgradation of technology and provide technology information -
this was christened as ICICI Venture Funds in 1988.
(c) The SCICI Ltd. (formerly Shipping Credit and Investment Company of India Ltd.) specialised
in giving loans for acquisition of ships. It had diversified its operations to cover all sectors of
the economy with focus on sectors of special significance to exports and infrastructure. As a

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