UGC NET COMMERCE January 2017(Paper-II) Q43
- Option : D
- Explanation : The Industrial Finance Corporation of India
was set up in July 1948 by the Government
of India. It was established under the IFCI Act,
1948 with the basic objective of providing
finance to the industries in private sector. At
present it also providing financial assistance
to cooperative, joint, public sector units. It
provides loans for expansion, diversification
and modernisation of existing units. It also
underwrites and directly subscribes to
industrial securities, merchant banking services
and lease finance. It renders financial
assistance both in rupees and foreign
currencies to the corporate sector.
The small scale industries, proprietary and partnership concerns were not eligible for financial assistance from the IFCI. It did not grant assistance for the purpose of working capital. It did not provide assistance for the acquisition of capital goods for commercial or trading purposes. It did not grant loans in foreign currencies for purchasing of raw materials, imports or payments of royalties, interest and dividends.
The IFCI (Amendment) Act, 1986 has made it possible for the Corporation to provide assistance inter alia for medical, health or other allied services.
