State Industrial Development
Corporations (SIDCs)

State Industrial Development
Corporations (SIDCs)

The State Industrial Development Corporations
SIDCs) were incorporated under the Companies Act, 1956, the sixties and early seventies as wholly-owned State Government Undertakings for promoting industrial development

The main functions of SIDCs are to provide assistance in the form of term-loans, underwriting direct subscription to shares/ debentures and guarantees. They also undertake a variety of promotional activities like preparation of feasibility reports, conducting industrial potential surveys, entrepreneurship development programmes and develop industrial estates. Some SIDCs also offer a package of developmental services such as technical guidance, assistance in plant locations and co-ordination with other agencies. In line with the changing environment, many SIDCs are making efforts to diversify and entering into the fields of equipment leasing, merchant banking, venture capital and mutual funds.

There are 28 SIDCs in the country. Aggregate to assistance sanctioned by all SIDCs during 1994-95 amounted to Rs. 1511 crore and disbursements accounted for Rs. 984 crore. Cumulatively, up to end-March 1995, the total assistance sanctioned by SIDCs stood at Rs. 9774 crore, while disbursements amounted to Rs. 7126 crore. Total sanctions to backward areas up to end-March 1995 accounted for Rs. 5,000 crore (constituting 51.2% in total sanctions) and disbursements amounted to Rs. 3942 crore (constituting 55,3% in total).

The bulk of the sanctions was claimed by the private sector (81.1%), followed by joint sector (13.2%), public sector (5.5%) and the co-operative sector,(0.2%). As regards purpose wise assistance, the new projects had the largest share (59.4%) in total sanctions, distantly followed by expansion/diversification (22.2%), modernisation/balancing equipment (9.3%) and supplementary assistance (8.4%).Sanctions for rehabilitation constituted the balance.

The State Industrial Development Corporations
SIDCs) were incorporated under the Companies Act, 1956, the sixties and early seventies as wholly-owned State Government Undertakings for promoting industrial development

The main functions of SIDCs are to provide assistance in the form of term-loans, underwriting direct subscription to shares/ debentures and guarantees. They also undertake a variety of promotional activities like preparation of feasibility reports, conducting industrial potential surveys, entrepreneurship development programmes and develop industrial estates. Some SIDCs also offer a package of developmental services such as technical guidance, assistance in plant locations and co-ordination with other agencies. In line with the changing environment, many SIDCs are making efforts to diversify and entering into the fields of equipment leasing, merchant banking, venture capital and mutual funds.

There are 28 SIDCs in the country. Aggregate to assistance sanctioned by all SIDCs during 1994-95 amounted to Rs. 1511 crore and disbursements accounted for Rs. 984 crore. Cumulatively, up to end-March 1995, the total assistance sanctioned by SIDCs stood at Rs. 9774 crore, while disbursements amounted to Rs. 7126 crore. Total sanctions to backward areas up to end-March 1995 accounted for Rs. 5,000 crore (constituting 51.2% in total sanctions) and disbursements amounted to Rs. 3942 crore (constituting 55,3% in total).

The bulk of the sanctions was claimed by the private sector (81.1%), followed by joint sector (13.2%), public sector (5.5%) and the co-operative sector,(0.2%). As regards purpose wise assistance, the new projects had the largest share (59.4%) in total sanctions, distantly followed by expansion/diversification (22.2%), modernisation/balancing equipment (9.3%) and supplementary assistance (8.4%).Sanctions for rehabilitation constituted the balance.

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