icici

1. ICICI
Industrial Credit and Investment Corporation
of India (ICICI) was established in 1955 as
public limited company under Indian
Company Act, for developing medium and
small industries of private sector.

2. Initially its equity capital was owned by
companies, institutions and individuals but at
present its equity capital has been owned by
public sector institutions like—Banks, LIC, CIC
and its associate companies. In March 2002,
the ICICI was merger with the ICICI Bank and
created a first universal bank in India. With
this merger, ICICI does not exist any more as a
development financial institution.

3. Objectives:
The important objectives of the ICICI are as
follows:
• (i) To provide loans to industrial projects in
private sector.
• (ii) To stimulate the promotion of new
industries.
• (iii) To assist the expansion and modernization
of existing industries.
• (iv) To provide Technical and managerial aid to
increase production.

4. • Financial Assistance of ICICI:
To achieve its objectives, ICICI provides financial
assistance in various forms such as:
• (i) Long term and medium term loans both in
terms of rupee and foreign currency.
• (ii) Participating in equity capital and in
debentures.
• (iii) Underwriting new issues of shares and
debentures.
• (iv) Guarantee to suppliers of equipment and
foreign loaners.

5. Activities of ICICi
• 1. Project Finance:
• The project finance is provided to industries for the cost of establishment, modernization or
expansion of manufacturing and processing activities in the form of rupee and foreign loans,
underwriting, subscription to shares and debentures and guarantees to supply of equipment and
foreign donors.
• The rupee loan is given for the purchase of equipment and machinery, construction and preliminary
expenses. The foreign currency loans are provided for the purchase of imported capital equipment.
• 2. Leasing:
• The leasing operations of the ICICI commenced in 1983. Leasing assistance is given for
computerization, modernization/replacement, equipment of energy conservation, export
orientation, pollution control etc.
• 3. Project Advisory Services:
• The Project advisory services are provided to the Central and State Governments and public sector
and private sector companies. Advice to the governments is provided on policy reforms and on
value chain analysis and to private sector companies on strategic management.
• 4. Facilities for Non-resident Indians:
• The information regarding on facilities and incentives given by the Government of India to the non-
resident Indians for judicious investing in India are offered.
• 5. Provision of Foreign Currency Loans:
• The ICICI has a provision of foreign currency loans and advances to enable Indian Industrial
concerns to secure essential capital goods from foreign countries.

6. • 6. Other Institutions Promoted:
• (a) ICICI promoted the Housing Development Finance Corporation (HDFC)
to provide long-term finance to individuals in middle and lower income
groups, co-operations, etc., for the construction and purchase on
ownership basis of residential houses all over the country.
• ADVERTISEMENTS:
• (b) Credit Rating Information Services of India Ltd. (CRISIL) set up by ICICI
in association with Unit Trust of India (UTI) to provide credit rating services
to the corporate sector.
• (c) Technology Development and Information Company of India Ltd.
(TDICI), promoted by ICICI, to finance the transfer and Up gradation of
technology and provide technology information.
• (d) Programme for the Advancement of Commercial Technology (PACT) set
up with a grant of US $10 million provided by USAID (United States Aid) to
assist market-oriented R&D activity, jointly undertaken by Indian and US
companies, ICICI has been entrusted with the administration and
management of PACT.
• (e) Programme for Acceleration of Commercial Energy Research (PACER)
funded by USAID with a grant of US $ 20 million to support selected
research and technology development proposals in Indian energy sector
PACER was also launched by ICICI.