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Banking and Insurance

Notes for small and medium enterprises and programmes designed for accredited voluntary agencies
for the economic upliftment of the underprivileged. These include entrepreneurship
development, self-employment and wage employment in the industrial sector for the weaker
sections of society through voluntary agencies, support to Science and Technology Entrepreneurs’
Parks, Energy Conservation, Common Quality Testing Centres for small industries.

Technical Consultancy Organisations

With a view to making available at a reasonable cost, consultancy and advisory services to
entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration with other
All-India Financial Institutions, has set up a network of Technical Consultancy Organisations
(TCOs) covering the entire country. TCOs offer diversified services to small and medium
enterprises in the selection, formulation and appraisal of projects, their implementation and
review.

Entrepreneurship Development Institute

Realising that entrepreneurship development is the key to industrial development, IDBI played
a prime role in setting up of the Entrepreneurship Development Institute of India for fostering
entrepreneurship in the country. It has also established similar institutes in Bihar, Orissa, Madhya
Pradesh and Uttar Pradesh. IDBI also extends financial support to various organisations in
conducting studies or surveys of relevance to industrial development.

1.5.7 Industrial Finance Corporation of India (IFCI) Ltd.

Liberalisation - Conversion into Company in 1993

This arrangement continued until the early 1990s when it was recognized that there was need for
greater flexibility to respond to the changing financial system. It was also felt that IFCI should
directly access the capital markets for its funds needs. It is with this objective that the constitution
of IFCI was changed in 1993 from a statutory corporation to a company under the Indian
Companies Act, 1956. Subsequently, the name of the company was also changed to “IFCI Limited”
with effect from October 1999.

Focus

IFCI has fulfilled its original mandate as a DFI by providing long-term financial support to all
segments of Indian Industry. It has also been chiefly instrumental in translating the government’s
development priorities into reality. Until the establishment of ICICI in 1956 and IDBI in 1964,
IFCI remained solely responsible for implementation of the government’s industrial policy
initiatives. Its contribution to the modernization of Indian industry, export promotion, import
substitution, entrepreneurship development, pollution control, energy conservation and
generation of both direct and indirect employment is noteworthy. Some sectors that have directly
benefited from IFCI’s disbursals include:

Consumer goods industry (textiles, paper, sugar);
Service industries (hotels, hospitals);
Basic industries (iron and steel, fertilizers, basic chemicals, cement);

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