Notes On I.C.I.C.I.:

       The Industrial Credit and Investment Corporation of India (I.C.I.C.I.) was established as a public limited company on 5th of January 1995. The L.I.C.I. became its major share holder after the nationalisation of the Life Insurance Business.

       The I.C.I.C.I. was established with an authorized capital of Rs. 100 Crores. Its paid up capital was Rs. 67 Crores which was subscribed by

  1. L.I.C.I.
  2. Schedule Commercial Banks.
  3. Joint Stock Companies
  4. Individuals

       The I.C.I.C.I. also raised funds by issuing debentures and borrowings from the government of India, World Bank and agencies for industrial development.

Objectives Of I.C.I.C.I:

       The main objectives behind the establishment of I.C.I.C.I. are:

  1. To assist in the creation, expansion and modernization of industrial enterprises in the private sector
  2. To encourage and promote the participation of private capital - both internal and external in such enterprises
  3. To encourage and promote private ownership of industrial investment and the expansion of investment market.

       Also I.C.I.C.I. was established with the aim to fill up certain gaps in the institutional facilities for the provision of finance to industrial undertaking in the private sector.

Functions of I.C.I.C.I.:

       The I.C.I.C.I. performs the following functions with the aim to achieve the above

objectives:

  1. It grants medium and short term loans in domestic and foreign currencies.
  2. It sponsors and underwrites the new issue of shares and debentures.
  3. It subscribes the new issue of shares and debentures
  4. It grants loans to other private investment sources
  5. It guarantees deferred payments for purchase of capital goods within India and abroad.
  6. It makes funds available for re-investment as rapidly as possible
  7. It secures and furnishes managerial, technical and administrative services to Indian industries.
  8. It serves as merchant banker
  9. It provide lease financing
  10. It works as a trustee.
Workings of I.C.I.C.I.:

       The I.C.I.C.I. provides financial assistance in Indian and foreign currencies which virtually ranges from Rs. 5 lakhs to Rs. 1 Crores. The loans so provided are made repayable over a period of time that extends upto 15 years. A substantial amount of I.C.I.C.I. lending has gone to the private sector followed by cooperative sector, joint sector, and public sector.