The Industrial Finance Corporation of India (IFCI) was established on July 1, 1948. It was the first development financial institution in India. It was established with a mission to serve the industrial sector of the country, which was in need of long-term finance.
In the year 1947 when India became independent, the need of a developed capital market was felt. As there were no sufficient finance providers in the country, the demand for the new capital was not fulfilled. The commercial banks were not equipped enough to go for long-term industrial finance and there was almost no merchant banker or underwriting firm to finance such a need. This was the time when the Government of India came forward to establish the Industrial Finance Corporation of India (IFCI).
The subsidiaries and associates of the Industrial Finance Corporation of India are the following:
IFCI Venture Capitals (IVCF)
Institute of Labour Development (ILD)
IFCI Financial Services (IFIN)
Tourism Finance Corporation of India Ltd. (TFCI)
Rashtriya Gramin Vikas Nidhi (RGVN)
Assets Care Enterprise Ltd. (ACE)
Management Development Institute (MDI)
Technical Consultancy Organizations (TCO)
For the last five decades, IFCI is committed to follow the lending policies. The major activities of IFCI are as follows:
Non-project specific assistance
Corporate Advisory Services
The project finance services of IFCI provide financial facilities to brown-field projects and to green-field industrial projects. The corporation provides financial support to the diversification, expansion and modernization of existing industrial projects.
IFCI also offers non-project specific assistance to its customers and clients. This is mainly provided in the form of short-term loans, bills discounting and working capital to meet the expenditure that is not related to any particular project.
The financial services by IFCI offer numerous financial activities. It offers assistance to the existing concerns through diversification, expansion and modernization programs. The corporation also offers tailor-made schemes in order to meet the requirements of the individual borrower. The interest rates charged are competitive in nature and are determined depending on the risk associated with the individual concerns.
The various Corporate Advisory Services by IFCI can be listed as below:
Project Advisory & Finance
Monitoring Agency for Public Issues
Corporate Finance & Investment Banking
Bid Process Management
Restructuring Advisory Services
Contact Details of Industrial Finance Corporation of India: Information Technology Group,
IFCI Ltd., IFCI Tower,
61 Nehru Place, New Delhi – 110019
Last Updated on : 27th June 2013