Industrial Finance Corporation of India (IFCI) was established by government of India in the year 1948. During this period there were no commercial bank that provided long-term industrial finance and even merchant bankers and underwriting firms were almost non-existent.
IFCI was established with an intention to provide long-term finance needs of the industrial sector. It got listed in the year 1993 changing its status from statutory corporation to a company.
Until the establishment of ICICI in 1956 and IDBI in 1964, IFCI remained solely responsible for implementation of the government’s industrial policy initiatives. It made a significant contribution to the modernization of Indian industry, export promotion, import substitution, pollution control, energy conservation and generation through commercially viable and market- friendly initiatives. Some sectors that have directly benefited from IFCI include:
It has subsidiaries namely IFCI Financial services, Asset Care Enterprise, Foremost Factors, IFCI Venture Capital Funds are among others.
It has reputed clients namely Ranbaxy Laboratories, Jaypee Group, Lanco, Emaar, Adani Group, JSW energy, Bhushan Power and Steel etc.
IFCI has provided financial assistances of Rs 462 billion to 5707 concerns since its inception.
IFCI assistance has enabled to create production capacities of 6.5 million spindles in the textile industry, 14,953 MW of electricity, 32.8 million tpa of petroleum refining, 8 port projects, 66 telecom projects and 1 bridge project., 59.3 million tpa of cement are among various projects to whom its has given financial assistance.
IFCI has founded and developed various institutions namely ICRA for credit assessment rating, Tourism Finance Corporation of India (TFCI) for promotion of the hospitality industry, are among others.
Products and services
Project Finance- It provides short term, medium term loans and long term loans to concerns for expansion, technology up-gradation, R&D expenditure, and for other financial purposes. It caters to segments like PSUs, infrastructure projects, manufacturing facilities, promoter funding etc.
Nodal Agency- It has formed nodal agency for monitoring of sugar development fund (SDF) loans.
Corporate Advisory Services- It provides advisory services such as investment appraisal, project conceptualization, assistance in legal documentation, etc