IFCI - Industrial Finance Corporation of India

IFCI stands for Industrial Finance Corporation of India. It is a government-owned development bank that was established in 1948 to cater to the long-term finance needs of the industrial sector in India.

Objectives of IFCI:
1. Provide financial assistance to industrial projects in the country.
2. Promote the growth and development of industries in India.
3. Mobilize resources for industrial development.
4. Promote the balanced regional development of industries.

Functions of IFCI:
1. Providing Financial Assistance: IFCI provides financial assistance to industrial projects in the form of long-term loans, underwriting of securities, and subscription to shares and debentures.
2. Project Appraisal: It conducts thorough appraisal of industrial projects to assess their viability and sustainability before providing financial assistance.
3. Investment Banking: IFCI acts as an investment banker by providing services like underwriting of securities, syndication of loans, and merchant banking activities.
4. Promoting Industrial Growth: IFCI plays an active role in promoting the growth of industries by providing necessary financial support for their establishment and expansion.
5. Development of Capital Markets: IFCI has been instrumental in developing the capital markets in India by introducing various financial instruments and facilitating the flow of funds between investors and industries.

Importance of IFCI:
1. Long-term Finance: IFCI focuses on providing long-term finance to the industrial sector, which is essential for the growth and expansion of industries in the country.
2. Regional Development: IFCI promotes the balanced regional development of industries by providing financial assistance to projects in underdeveloped areas.
3. Expertise in Project Appraisal: IFCI has expertise in project appraisal, which ensures that funds are allocated to viable and sustainable projects, minimizing the risk of default.
4. Catalyst for Industrial Growth: IFCI plays a crucial role in catalyzing industrial growth by providing the necessary financial support and facilitating the establishment and expansion of industries.

In conclusion, IFCI, which stands for Industrial Finance Corporation of India, is a government-owned development bank that caters to the long-term finance needs of the industrial sector. It provides financial assistance, project appraisal, investment banking, and promotes industrial growth and development in India. IFCI plays a significant role in the overall economic development of the country by facilitating the growth of industries and contributing to the development of capital markets.

IFCI stands for Industrial Finance Corporation of India. The Government of India established The Industrial Finance Corporation of India (IFCI) on July 1, 1948, by way of an IFC Act 1948.