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Sunday, 26 February 2012


I. Second Asian Ministerial Conference on Disaster Risk Reduction (New
Delhi, November 7-8, 2007):
1. Prime Minister's Address to the Conference:
Need to Work Together to Deal with Man-Made Disasters:
Addressing the 2nd Asian Ministerial Conference on Disaster Risk Reduction, Prime Minister Manmohan Singh stressed that modern societies must prepare to come to deal with man-made disasters - be they industrial disasters or disasters caused by terrorists attacks.
Terrorism Could Trigger Disasters Across Borders:
Dr. Singh warned that the threat of terrorism looms large in many parts of the region
and could trigger disasters across the border. Pakistan, blamed for launching a proxy war on India by sponsoring terrorism, is going through a crisis and has witnessed some of the worst terrorist attacks in the region.
Need for Asian Countries to Cooperate in Finding Solutions to the Challenges Posed by Disasters:The Prime Minister emphasised that the Asian nations need to cooperate to find collective solutions to the challenges that face them. He cited the example of health disasters like HIV and avian influenza that can play havoc across borders. Earthquakes, floods, cyclones and tsunami have caused disasters across Asia and hence Asia as a region needed more bilateral and regional cooperation to make effective use of each nation's capabilities, according to Dr. Singh.
Need to Replicate the Regional Cooperation in the Tsunami Early Warning System:
The Prime Minister asked the Asian nations to replicate the regional cooperation extended in the creation of a Tsunami Early Warning System.
2. Delhi Declaration Adopted:
A 26 action point Delhi Declaration was adopted at the conclusion of the conference.
Call to Take Specific Measures for Reducing the Risk of Disasters:
The Declaration called upon national governments and other stakeholders to take specific measures for reducing risks of disasters in Asia and its different sub-regions.
Call for taking action along the Hyogo framework:
The Declaration called for taking action along the Hyogo framework, mainstreaming
disaster risk reduction, early warning and preparedness, climate change, integration of disaster risk reduction into recovery and reconstruction, partnerships and regional mechanisms.
Biennial Asian Ministerial Conference Would be Expanded into a Regional Platform for Disaster Risk Reduction:
The Declaration affirmed that the biennial Asian Ministerial Conference, which started
in Beijing in 2005, would be expanded into a regional platform for disaster risk reduction, with participation by the national governments, regional and sub-regional organisations, UN agencies, international financial institutions and other stakeholders including civil society, scientific and technical organisations, private sector and the media.
3. Conference by Rotation to Review the Action Taken by National Governments:
The conference would be held once in two years by rotation in different Asian countries to review the action taken by the national governments and other stakeholders for implementing the Hyogo framework for action, take stock of initiatives taken in various sub-regions for promoting and enhancing cooperation among the nations within and outside the governments for disaster risk reduction.
4. The next conference would be held in Kuala Lumpur.
5. Significance of the Asian Ministerial Conference on Disaster Risk Reduction:
Brought Countries of the Region on One Platform to Share their Views on Disaster Risk Reduction: Analysts opine that the very fact that delegates from 50 countries participated in the conference points out that the multilateral body has brought countries from the region on one platform to share their views on disaster risk reduction in Asia and its different sub-regions.
Holding of the Conference an Indicator of the Willingness to Cooperate in Combating Disasters:
Analysts point out that the holding of the conference itself was good sign of the willingness of the countries of the region to cooperate in combating disasters.
Declaration Refers to Both Natural and Man-Made Disasters:
The Delhi Declaration adopted at the end of the Conference refers to both natural as well as man-made disasters, the latter referring to terrorism.
II. Conclusion:
1. Need to Find Collective and Cooperative Solutions to the Challenges Posed by Disasters:
Addressing the UN General Assembly in November 2007, India's delegate Prabha Thakur pointed out that all countries were vulnerable to disasters. She stressed that nations must find collective and cooperative solutions to the challenges that disasters represented.
2. Need for Better Disaster Mitigation Efforts:
India stressed on the need for the use of latest technologies, bilateral, regional and international cooperation as well as providing insurance at affordable rates in vulnerable areas to mitigate the effects of disasters. India also emphasised that better efforts were required for disaster prevention, risk reduction and early warnings so as to save the lives lost due to disasters.
3. Disaster Management a Major Discipline:
According to Vinod Chandra Menon, a member of the NDMA, disaster management was emerging as a major discipline involving the administration of emergency medicine, search and rescue, remote sensing, institutional networking and gender issues.
4. Strengthening the Monitoring System by Operationalising the Tsunami Early Warning System:
The Centre has emphasised that the disaster monitoring system would be strengthened by the Operationalisation of the Tsunami Early Warning System in November 2007.
5. New Integrated Operations Centre:
The Union Home Ministry's new Integrated Operations Centre is now equipped with latest satellite communication equipment, digital maps, laptops with LAN network and video conference facility with links to all State and district control rooms in the country. This has been done to avoid wastage of crucial time in crisis management.
6. Disaster Management and Mitigation Policy to Turn Disasters Into Opportunities for Development:
The Union Defence Minister Pranab Mukherjee, announced that the Government's proposed Disaster Management and Mitigation Policy would focus on a new orientation to turn disasters into development opportunities rather than focussing on relief and rehabilitation.
The policy would ensure that structures are developed from top to bottom with great stress being laid on the involvement of district administration, panchayati raj, municipalities and nagarpalikas so that these local bodies are directly help responsible for managing and mitigating disasters and turning them into developm


OPEC :A.Origin : The Organisation of Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organisation which was formed at the Baghdad Conference of September 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. 

B.Members : Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates, Algeria and Nigeria. Saudi Arabia is the biggest producer of oil and the dominant partner in the cartel.

C.40% Share in Global Oil Supplies :The OPEC supplies over 40 per cent of the world|s oil need. Between them the OPEC members have around three-fourths of the World|s proven oil reserves. Excluding Iraq OPEC has a total production capacity of 28.7 million barrels per day (Mb/d). The global demand for oil is around 80 Mb/d.

D.OPEC's Control of Global Oil Prices : Controlling Oil Prices by Restricting Production: Analysts point out that OPEC tries to control global oil prices by restricting the production. When the cartel feels that the oil prices are low, the Oil Ministers of OPEC nations impose production ceilings. Lower supplies send oil prices up. In 1973, OPEC|s squeeze on supply of oil quadrupled oil prices almost overnight.

E.OPEC's Price Band Mechanism : The OPEC introduced a price band mechanism that targeted a price range of $22-28 per barrel for the OPEC basket, with automatic adjustments to quotas if the range was breached. Over the last one year, the OPEC basket price has remained well above its stated price limits.

F.OPEC a Divided House : OPEC has been a divided house with a big gap between advocates of production cuts and higher prices and moderates advocating high production and low prices.

G.Limitations of OPEC|s Control Exposed : The spurt in global oil prices exposed the limitations of the OPEC. Several members of the OPEC could barely manage their quotas, let alone increase production to stabilise the spurt in the oil prices.

2. Non-OPEC Oil suppliers :

A.Countries with Substantial Reserves : Russia, Mexico, Angola, Oman, Norway and Britain.

B.Russia the Largest Non-OPEC Oil Producer : Since 1997, when Russian crude production began to pick up and its exports into global markets began picking up, non-OPEC producers have made inroads into OPEC|s global market share. Russia is one of the largest producers of oil outside OPEC in the world.

3. Spurt in International Oil Prices :

A.Large Increase in International Crude Oil Prices : There has been a sharp increase in the prices of crude oil in the last few years. Annual average crude oil prices have increased from $21.74 in 2002 to around $ 72 in 2007. Currently the price of crude oil is hovering around $120 per barrel.

B.Reasons for Increase in the Oil Prices :

a.Increase in Demand from the US and China : The major factors behind the increase in global demand for oil was the increase in consumption levels in the US and China. The booming economy of China was the key factor for increased consumption of oil by China.

b.Weak Dollar : Analysts point out that oil prices are benchmarked in US dollars which has been depreciating. The fall in the value of dollar robbed it of its purchasing power which encouraged the OPEC to take a relaxed view about the situation as the cartel|s revenues are pegged to the dollar.

c.OPEC|s Refusal to Increase Production : 
One of the reasons for increase of crude oil prices in 2007 was the refusal by OPEC to increase production to meet the rising demand.

d.Speculation : Analysts point out that speculators made big bets on the future delivery of oil which was one of the causes of the sharp increase in global oil prices.

e.Investment Flows into Oil : 
Analysts point out that the flow of investments from pension and hedge funds into commodities including oil have increased leading to the surge in crude oil prices.

f.Concern over Supply Disruptions from Iran : Oil consumers are concerned about the supply disruptions from Iran which is locked in a confrontation with the West over its nuclear programme.

g.Poor Supply from Iraq : The oil industry in Iraq is still struggling to reach peak production after decades of war, sanctions and under investment.

h.Cut in Supply from Nigeria :Crude oil production has been cut in Nigeria since February 2006 due to militant attacks on the country|s oil industry.

4. Global Economic Impact of the Rise in Oil Prices :

A.Increase in Inflationary Pressures : According to analysts the increase in global oil prices added to the inflationary pressures in various countries.

B.Increase in Interest Rates : Economists point out that a mismatch between global oil price and domestic selling price can push up the subsidy from the government and public debt which in turn can put pressure on interest rates and reduce the capital available to more productive borrowers.

C.Slowdown in Economic Growth : Increase in oil prices coupled with inflationary pressures will slowdown the economic growth in these countries. The World Bank has already revised the economic growth projections in these countries by reducing one percentage point.

D.Not a Full-fledged Oil Crisis : Analysts point out that the current rise in oil prices is not a full-fledged oil crisis on the lines of the 1970s and 1980s. The reasons being the developed countries are now less dependent on oil than they were in 1979. Adjusted for inflation the crude oil prices are still below the $101.70 peak reached in 1980, a year after the Iranian revolution.

5. OPEC to Keep the Crude Output at Current Levels:Despite pressure from the US and other countries to increase production, the OPEC special meeting in Vienna in February 2008 decided to keep the crude oil production at the current levels of around 30 million barrels a day.

6. Conclusion :
A.Equilibrium between Demand and Supply Key to Price Stabilisation : Analysts point out that global oil prices are affected by long-term factors one of which is the equilibrium between supply and demand. Analysts point out that the oil demand has not been responsive to prices.

B.Stabilising the Oil Prices is in the Interest of OPEC :Finally, analysts point out that it is in the interest of the OPEC countries to keep the global oil prices at manageable levels as higher prices will push the consuming countries into recession, leading to reduced demand for oil and a price crash.

Genetically Modified (GM) Foods

 Genetically Modified (GM) Foods ::.

IntroductionThe Term "Genetically Modified (GM) foods" refers to crops produced for human or animal consumption using the recombinant DNA techniques. The world population is growing in a fast pace such that it is expected to double in the next 50 years. Supplying food to this growing population is a major challenge. GM foods can be considered as the major solution for the food security. These foods are produced by the modification of crop plants in the laboratory to enhance desired traits, mainly biotic and abiotic stress tolerance, improved nutritional content, etc. These traits were earlier carried out through conventional plant breeding, but these breeding methods are very time-consuming and often not very accurate. However, with recombinant DNA technology, plants with the desired traits can be produced, very rapidly and with greater accuracy.

ProcessRecombinant DNA technology begins with the identification and isolation of a gene which expresses a desirable trait, with the aid of restriction enzymes. Then a recipient plant or animal is selected, and the gene is inserted and incorporated into its genome through a vector such as agrobacterium, through a gene gun shooting an elemental particle covered in plasmid DNA, electro oration, or a virus. Once part of the recipient, the newly inserted gene becomes part of the genome of the recipient and is regulated in the same way as its other genes.

For example, we can isolate a gene responsible for conferring drought tolerance, introduce that gene into a plant, and make it drought tolerant. Crops can also be transformed using non-plant genes such as the use of Bt genes, in cotton and many other crops. Bt, or Bacillus thuringiensis, is a naturally occurring bacterium that produces crystal proteins that are lethal only to insect larvae. Bt crystal protein genes have been transferred into cotton, soya, corn, brinjal, enabling the plants to produce its own pesticides against insects such as the American bollworm, European corn borer. Bt genes are lethal only in the acidic medium, insect gut environment and do not get activated in an alkaline environment, prevalent in humans and other animals that feed on these plants.


Drought tolerance/salinity tolerance:
As the world population grows and more land is converted for housing instead of food production, farmers need to grow crops in non-arable land, previously unsuited for plant cultivation. Creating plants that can withstand long periods of drought or high salinity in soil and groundwater will help people to grow crops in large, barren wetlands/dry lands in our country.

Pest resistance: 
Insect Pests are causing devastating financial loss for farmers, sometimes starvation. Indiscriminate use of pesticides is also a potential health hazard, and the run-off of agricultural wastes from excessive use of pesticides and fertilizers poisons the water supply and harms the environment.

Ex: Growing GM foods such as Bt brinjal helps reduce the application of pesticides substantially, as 80 per cent of brinjal crop are infested with pests.

Disease resistance: There are many viruses, fungi and bacteria that cause plant diseases and thereby contribute to yield loss. Plant biologists are working to create genetically engineered plants with resistance to these diseases.

Ex: Developing sheath blight resistance in rice.

Cold/heat tolerance:
Farmers are facing the vagaries of weather, like unexpected frost or excess heat due to climate change. Researchers have identified an antifreeze gene from cold-water fish and introduced it into plants such as tobacco and potato to study the efficacy of the plant to withstand extreme temperatures. Also, research is on to identify plants that can survive excess heat, submergence tolerance etc.

People in our country suffer from various nutrient deficiency diseases due to malnutrition. Most of the people rely on rice as a major staple food. But rice does not contain adequate amounts of all necessary micro and macronutrients. If rice could be genetically engineered to contain additional vitamins, iron and/or minerals, nutrient deficiencies could be alleviated. For example, MSSRF (M.S.Swaminathan Research Foundation) are working on improving the iron content.

Soil and groundwater pollution continues to be a problem in many parts of the world.Plants such as poplar trees, brassica spp are being genetically engineered to clean up heavy metal pollution from soil contaminated with metals like lead, arsenic, and cadmium.


Most concerns about GM foods fall into three categories

Environmental hazards:
Unintended harm to other organisms; reduced effectiveness of pesticides; gene transfer to non-target species are some of the concerns of the environmental concerns of GM crops.

Human health risks:
Allergenecity, unknown effects on human health are some of the main health concerns.
For example, Pioneer Hi-Bred tested the allergenicity of a transgenic soybean that expressed a Brazil nut seed storage protein in hope that the seeds would have increased levels of the amino acid methionine. The tests (radio allergosorbent testing, immunoblotting, and skin-prick testing) showed that individuals allergic to Brazil nuts were also allergic to the new GM soybean.

Economic concerns Environmental activists, religious organizations, non-governmental organizations have criticized agribusiness for concentrating on profits through GM Foods without concern for potential hazards. They also criticized the government for failing to start a regulatory body. All GM crops should be subjected to thorough regulatory processes and toxicology and allergenicity tests data needs to be shared with the regulatory authorities prior to commercialization.

Government RoleMany new plant genetic engineering technologies and GM plants have been patented, and patent infringement is a big concern of agribusiness. So, bringing GM food to market is a lengthy and costly process. This is a genuine concern and therefore it is important for the government to fund and support public sector research in reputed universities or agriculture institutes to ensure quality research and also keep prices under check.

ConclusionGovernment should check all the hazards, environmental, health and economic concerns and then decisions should be taken to commercialize a GM product. Though ambiguity during the process, once they get regulatory approve, it implies that they have been subjected to stringent scrutiny and are safe for commercial release. So, the governments around the world are hard at work to establish an effective regulatory process to monitor the effects of and approve new varieties of GM plants.

According to M S Swaminathan, the chairman of the National Commission on Farmers, GM foods have the potential to solve many of the world's hunger and malnutrition problems, and can protect and preserve the environment by increasing yield and reducing reliance upon chemical pesticides. Yet there are many challenges ahead for governments, especially in the areas of safety testing, regulation, international policy and food labeling.

Tuesday, 21 February 2012


There are two important development agencies constituted at which provide financial assistance for setting up of industrial project small and medium‑scale sector. These institutions also part modernisation, expansion and diversification programmes of existing units. The area of operation of these state level institutions is limited respective state.

State Financial Corporations have been established under the Financial Corporation Act, 1951. At present there are 18 SFCs operating states as per list given in Appendix 9.I State Financial Corporation,, provide long‑term finance for setting up of the smaller projects within their region.

The State Financial Corporations (SFCs), operating as development are state‑level financial institutions, playing a crucial role in the level small and medium enterprises in the states in tandem with the national

The SFCs provide financial assistance by way of term loan, subscription to equity/debentures, guarantees, discounting of bills of and seed/special capital. The SFCs operate a number of schemes of and equity type assistance on behalf of IDBI/SIDBI, in addition to the schemes for artisans, and special target groups such as SC/ST, women, ex-servicemen and physically handicapped.

The SFCs (Amendment) Act, 2000 which became effective in 2000, provide greater flexibility to the SFCs to cope with the challenges by the deregulated financial system.

The State Industrial Development Corporations (SIDCs) were c under the Companies Act, 1956 as wholly owned undertakings of the governments with the specific objectives of promoting and developing and large industries in their respective states/union territories. These cc extend financial assistance in the form of rupee loans, underwriting subscriptions to shares/debentures, guarantees, inter‑corporate de also opens letters of credit on behalf of its borrowers. SIDCs undertake of promotional activities including preparation of feasibility reports, conducting industrial potential, surveys entrepreneurship training & development programmes and developing industrial areas/estates. Some SIDCs also offer a package of developmental services that include technical guidance, assistance in plant location and co‑ordination with other agencies. With a view to providing  infrastructural facilities for the establishment of industrial units, SIDCs are involved in the setting up of industrial growth centres. To keep pace with the hanging economic environment, SIDCs have initiated various measures to expand the scope of their activities and have entered into various fee‑based activities.

Of the various SIDCs in the country, those in Andaman & Nicobar, Arunachal Pradesh, Daman & Diu and Dadra & Nagar Haveli, Goa, Manipur, Meglalaya, Mizoram, Nagaland, Tripura, Pondicherry and Sikkim also act as SFCs to provide assistance to small and medium enterprises and act as promotional agencies for this sector.

State Industrial Development Corporation operate at slightly higher level than SFCs though these institutions are also primarily working as development banks promoting industrial projects in small and medium scale. A list of SIDCs  given in Appendix 9.II.


SFCs/SIDCs do not generally have large resources to meet the growing demand of industry within their regions. They raise resources by issue of share capital, issue of bonds and debenture guaranteed by State Governments. Additional resource are raised by accepting deposits from public and by borrowings from State Governments

Other main resource available to these state level institutions is refinance from Industrial Development Bank of India/Small Industries Development Bank of India.

Liberal refinance facilities ranging from 75% to 100% of the loans granted by these institutions to various borrowers under different schemes are available. The funds thus available from IDBI/SIDBI help these institutions to play an effective development role in promoting industries within their regions.

Small Industrial Development Bank of India provides refinance under two different schemes knowing as normal scheme and automatic refinance scheme. Automatic refinance scheme is applicable to loans granted for smaller projects and for composite loans to SC/ST and physically handicapped entrepreneurs etc. Individual approval of each project under the automatic scheme is not required. Under the normal scheme, each project is required to he approved from SIDBI for availing refinance.

IDBI/SIDBI have set out guidelines for these institutions under different schemes and SFCs/SIDCs have to disburse the facilities to the borrowers of the terms and conditions as stipulated in these guidelines. These guideline are, however, quite flexible and allow almost a free hand to these state level institutions to deal with their customers.

An important point, however, be noted here that the intending borrower have to deal only with primary lending institutions who will be completing the detailed appraisal of the project and sanctioning financial assistance for the project. These institutions will be then taking up the matter of refinance from IDBI/SIDBI on their own. It, therefore, does not make any difference, a least operationally, to the borrowers whether refinance against a particular project is obtained by the lending institution(s) or not.

SFCs and SIDCs confine their activities in promoting the industrial projects in small‑scale and medium‑scale sectors and projects costing up to Rs. 10 crore can normally be financed by these institutions. Projects where cost exceeds Rs. 10 crore are required to approach all India institutions for financial assistance.

The term loans sanctioned by SFCs were restricted to Rs. 90 lacs previously but now the assistance has been enhanced. In the case of Limited Companies, either Private or Public, SFCs can assist in the form of Term Loans upto Rs 240 lacs while in the case of proprietary concerns o partnership concerns, the limit is Rs. 120 lacs.

SIDCs can expose themselves to a bigger limit and accordingly can grant term loans upto Rs. 250 lacs. The assistance may be for a new project and also for diversification, modernisation and expansion of existing units, which are doing well. On a selective basis, SIDCs can provide assistance upto Rs 400 facs also.

SFCs and SIDCs avail refinance from IDBI and the limits are as under:
SFCs ‑ Rs. 90 lakh
SIDCs ‑ Rs. 150 lakh

The cost of project of the assisted unit should not exceed Rs. 5 crore and it should be medium scale industrial unit.

The facility of line of credit (LOC) is also available to SFCs/SIDCs from IDBI and the limits are as under
SFCs ‑ Rs. 150 lakh
SIDCs ‑ Rs. 250 lakh

(65% of above mentioned amount)

If the units, under medium scale industry is assisted by SFCs, the COP should not exceed Rs. 500 lakh and if the assistance is through SIDCs, the COP should not exceed 10 crore.


As stated earlier the promoter has to submit the loan application along with project report and other relevant papers directly to concerned SFC/SIDC. The application form has not been standardised and must be obtained from the concerned SFC/SIDC. The application form will, however, not be materially different than the common loan application form adopted by all India financial institutions and promoter can visualise with confidence the type of information that would normally be required to complete the application form.

The detailed appraisal of the project with also likewise be carried by the concerned institutions almost in the same manner and the viability of the project will be critically examined from all aspects. The norms of debt equity ratio, promoter's contribution etc. is equally applicable in these cases as well. Processing of application would, therefore, not be in a different manner and the promoter must ensure that relevant information must be provided in the first instance itself so that the project stands scrutiny and is approved. After the project has been approved, a letter of sanction will be issued by the lending institution and documentation will have to be completed as per its requirement.

Besides financial assistance by way of loans, SFCs/SIDCs also grant the following types of facilities to the project financed by them

(i)         Underwriting of shares/debentures.
(ii)        Guarantees including deferred payment guarantees.

Application for sanctioning of the above facilities may also be made simultaneously along with the loan application so that a package approval may granted by the financial institutions.

Salient features of important lending schemes which are common to both SFCs and SIDCs are given in the following paragraphs.


The primary objective of State level financial institution is to help setting p of small‑scale industrial units in their respective regions. Preferential treatment would be given by these institutions to grant assistance to small‑scale units on liberal terms. The general terms and conditions of financial assistance under the above schemes are as under :

Quantum of assistance : No minimum or maximum quantum of assistance has been stipulated except the upper ceilings as already discussed which are not relevant in case of small‑scale units.

Debt‑Equity ratioA debt‑equity ratio of upto 2: 1 may be approved under he scheme.

Promoter's contribution : A minimum promoter's contribution ranging from 10% to 25% depending upon the location of project and category of entrepreneur has been prescribed under the scheme.

Repayment period The repayment period is fixed after taking into consideration the profitability and debt service capacity of the project. No repayment period is normally fixed beyond 10 years.

Rates of Interest : The rates are subject to revision from time to time and correct information in this regard must be obtained from respective SFCs/SIDCs.

Commitment charges

For loans up to Rs. 5.00 lacs                                                      Nil
For other projects                                                                      1% p.a.

The commitment charges are payable only after 12 months from the date sanction has expired. It may be added that rates of interest and other terms conditions of sanction including rates of commitment charges may vary from state to state and exact‑position should be ascertained from respective SFC/SIDC.


The terms and conditions of term loans sanctioned to medium‑scale units are as under:

Quantum of assistance:
No minimum or maximum amount of assistance has been stipulated except the upper ceiling of the term loan that can be grant by concerned state level institution.

Debt Equity ratioThe debt equity ratio is generally permitted in the region of 1.5 : 1 but not normally allowed to exceed 2 : 1.

Promoter's contributionA minimum promoter's contribution rang from 10% to 25% depending upon the location of the project and category entrepreneur has been prescribed under the scheme.

Repayment periodThe maximum repayment period is permitted upto years. The repayment period is, however, fixed on case to case basis depending upon the profitability and debt service capacity of the project.

Rates of InterestTo be ascertained from respective SFCs/SIDCs

Commitment Charges: Commitment charges at the rate of 1 % p.a. payable. However, the commitment charges are levied after allowing initial grace period of 6 months from the date of sanction.

It may be added here that rates of interest and other terms and condition including rates of commitment charges may vary from State to State and exact position has to be ascertained from respective SFC/SIDC.


Andaman & Nicobar Islands Industrial Development Corporation (ANIIDCO)

ANIIDCO is a state financial corporation providing financial assistance under following schemes :

(1) Loan to tiny and cottage industrial projects.
(2) General Scheme
(3) Credit Guarantee Scheme


Andhra Pradesh Industrial Development Corporation

The corporation provides Term Loan Assistance under the following schemes:
1)      Term Loan
2)      Medium Term Loan
3)      Short Term Loan
4)      Loans Acquiring Pre‑existing Productive (LAPPA)
5)      Equity Participation
6)      Bill Discounting Scheme
o        Assistance to the companies for meeting gaps in working capital
o        Discounting of LC bills
o        Discounting of capital goods bills
o        Rediscounting of bills discounted by NBFCs.


Assam Financial Corporation

Schemes of assistance are as under:

1)   Long term loan
2)   Foreign currency loan under World Bank Credit (not in operation for the time being)
3)   Loan in collaboration with other financial institutions
4)   Soft loan on equity participation under special capital scheme
5)   Underwriting of issue of stock, shares by industrial concerns
6)   Deferred payment guarantee
7)   Technical and medical graduate scheme
8)   Loan for schedule caste/schedule tribe entrepreneurs
9)   Modernisation Scheme.

Special Schemes of Assistance of the Corporation are as under:

1)   Scheme for technical entrepreneurs and medical graduates
2)   Composite Loan Scheme
3)   Seed Capital Scheme
4)   Special Capital Scheme
5)   Small Loan Scheme
6)   Equipment Finance Scheme
7)   Modernisation Scheme
8)   Scheme for SCIST entrepreneurs
9)   Single Window scheme for fixed and working capital


Bihar State Financial Corporation

The Corporation provides assistance in the form of term loan, deferred payment guarantee and underwriting of public issue of shares. The purpose of given by the corporation is for acquisition of fixed assets only in the form of land, building, machinery etc. for setting up of new industrial units or for expansion modernisation, diversification or rehabilitation of existing units.


Delhi Financial Corporation

The corporation advances loans to small and medium scale industries which are technically feasible and financially viable. The projects may be set up  Delhi or Chandigarh and promoted as public limited company, private limited company, co‑operative society, partnership units or proprietorship units. For financing medium scale industry in Delhi, a clearance is required from Delhi Administration. The Project for loan assistance should be in accordance with the Industrial Policy of Delhi/Chandigarh as the case may be.

Loan assistance is provided for creation of fixed assets such as purchase land, construction of building thereon and purchase of plant & machinery, World Bank loans are also provided for the import of machinery. Loans are provided for:
‑           Setting up a new industrial project,
‑           Renovation of existing plant & machinery,
‑           Expansion or diversification,
‑           Shifting of existing unit from non‑conforming to conforming areas

Criteria for Loan

Loans are granted to the industries which are generally engaged or propose to be engaged in any of the following industrial activities:

(1)        Manufacture, preservation or processing of goods.
(2)        Hotel Industries
(3)        Maintenance, repair, testing or servicing of machinery of any description
(4)        Assembling, repairing or packing any article with the aid of machine & power.
(5)        Providing special or technical knowledge or other services for the promotion of industrial growth


EDC Ltd. operates following schemes of financial assistance:

(1)        General term loan
(2)        Equipment Finance Scheme
(3)        Acquisition of DG Set
(4)        Pollution Control Equipments
(5)        Acquisition of Computers
(6)        Quality Control facilities
(7)        Indigenisation or import substitution
(8)        Mfg. and installation of renewable energy/energy savings systems
(9)        Hotels/restaurant projects
(10)      Tourism related activities
(11)      Hospitals/Nursing Homes
(12)      Acquisition of electro medical and other equipments
(13)      Scheme for qualified professionals
(14)      National equity fund scheme
(15)      Mahila Udyam Nidhi Scheme
(16)      Single Window Scheme
(17)      Scheme for marketing organisation.


Gujarat Industrial Investment Corporation Ltd.

            Various schemes of assistance provided by the Corporation are as under:

            (1)        Mini/Computer loan Scheme
            (2)        New Entrepreneurs Scheme
            (3)        Scheme for Doctors
            (4)        Scheme for Hospital/Nursing Homes
            (5)        Scheme of SC/ST Entrepreneurs
            (6)        Single Window Scheme
            (7)        Scheme of quality control facilities
            (8)        Scheme of Ex‑servicemen
            (9)        Scheme of Women Entrepreneurs
            (10)      Scheme for Hotels
            (11)      Integrated finance/Advance Scheme
            (12)      General Scheme
            (13)      Captive Power Units Scheme
            (14)      Special Captive Scheme
            (15)      Seed Capital Scheme
            (16)      Equipment Finance Scheme
            (17)      Concessional Assistance in Backward districts
(18)      Assistance to a group of entrepreneurs in unbanked rural areas
(19)      Modernisation Scheme
(20)      Foreign Exchange Loan Scheme


Haryana Finance Corporation

The Haryana Financial Corporation provides financial assistance to industrial concerns and others through its following Schemes.

(1)        Term Loans
(2)        Equipment Refinance Scheme
(3)        National Equity Fund Scheme
(4)        Technology Development and Modernisation Scheme
(5)        Technology Upgradation Fund Scheme for Textile Industry
(5)                Scheme for Financing Vocational Training Institute
(6)                Scheme for Commercial‑Complexes, Sales Outlets, Departmental, & Shopping Malls
(7)                Scheme for Financing Projects for Computer Software Development E‑Commerce

Haryana State Industrial Development Corporation

The scope of financial services provided by HSIDC has been enlarge the year keeping in view the ever‑growing needs of industrial sector. The services now being provided include
(1)        Term Loan
(2)        Equipment Finance
(3)        Equipment Leasing
(4)        Working Capital Term Loan
(5)        Line of Credit
(6)        Loan for Commercial Complexes


Himachal Pradesh Financial Corporation

The following schemes of HPFC provide financial assistance.

(1)        National Equity Fund Scheme
(2)        Technology Development & Modernisation Fund Scheme
(3)        Technology Upgradation for Textile Industries
(4)        Working Capital Term Loan
(5)        Transport Loan Schemes
(6)        Credit Linked Capital Subsidy Scheme

Himachal Pradesh State Industrial Development Corporation Ltd.

HPSIDC is the major State Level Financial Institution and provide term loans for industrial projects. The important schemes are

1)         Long‑term loans
2)         Bridge Loans
3)         Equipment Finance


J & K State Industrial Corporation

J&K State Industrial Development Corporation offers following financial services in the State.

(1)        Enters into joint ventures with private companies with an arrangement to sell off its shares to the partner over an agreed period.
(2)        Equity Assistance
(3)        Seed Capital Assistance
(4)        Underwriting a public issue


Karnataka State Financial Corporation

The following schemes of the Karnataka State Financial Corporation operation at present
(1)        Technicians Scheme
(2)        Seed Capital Scheme
(3)        Special Capital Scheme
(4)        Composite Loan Scheme
(5)        Scheme for educated unemployed
(6)        Finance to Tourism related facilities


Kerala Financial Corporation

A. Normal Term Loan Scheme

·         General Scheme for SSI Units
·         General Scheme for MSI Units
·         Single Window Scheme
·         National Equity Fund (NEF) Scheme
·         Finance to Hospitals and Nursing Homes
·         Scheme for Assistance for Veterinary Clinics
·         Scheme for Financing Activities relating to Marketing of SSI Products.
·         Scheme for Assistance to Information Technology and Software development Sector.
·         Scheme for Assistance for Pharmacies.
·         Scheme for Assistance for Mobile Catering.
·         Scheme for Assistance to Tourism Related Activities.
·         Finance to Hotels, Motels and Tourism
·         Scheme for Acquisition of Computers
·         Scheme for Acquisition of Generator Sets
·         Transport Loan Scheme
·         Scheme for Qualified Professionals
·         Working Capital Finance
·         Short Term Loans
·         ISI 9002 Service Certification Assistance Scheme for SSI Units.
·         Technology Development and Modernisation
·         Transport Loan Scheme
·         Shopping Complex/Commercial Complex
·         Community Hall/Kalyanamandaparn
·         Tourism Scheme for Modernisation and Upgradation
·         Scheme for Funding for Acquisition of existing assets
·         Short Term loan for TV Serial Production
·         Financial Assistance for Infrastructure Projects
·         Scheme for Modernisation and Upgradation of Hospitals, Clinics, Diagnostic Centres and Health Clubs
·         Financial Assistance for Marketing of SSI Products.
·         Credit Linked Capital Subsidy Scheme for Technology Upgradation of Small Scale Industries.

B. Special Schemes

·         Technology Development and Modernization
·         Guidelines for Special Share Capital
·         Scheme for ISO 9000 Series Certification

C. Schemes for Existing Well Run Profit Making Enterprises

·         Equipment Leasing Scheme
·         Hire Purchase Scheme
·         Working Capital Term Loan Scheme
·         Scheme for Assistance for Market Research Advertisement, Product Launching, participation in Trade / Fairs Exhibition etc.
·         Bill Discounting Scheme
·         Access (Short Loan Scheme).


Madhya Pradesh State Financial Corporation

MPSFC provides assistance under its following schemes

(1)        Term loan for the purpose of creation of fixed assets (such as land, factory building, plant and machinery, electrical, etc.), modernisation diversification, expansion and/or replacement of equipments in existing units.
(2)        Equipment finance for acquiring identifiable and new items of plant and machinery, equipments etc.
(3)        Asset credit for purchase of equipments; for the purpose of expansion modernisation, diversification, and/or for the replacement of the equipments.
(4)        Short term loan to meet short-term requirement of funds for work capital purposes.
(5)        Working capital loan to put finance long term/medium. term work capital requirements of the industrial units.
(6)        Electro‑medical equipments finance scheme.
(7)        Hospital finance for establishment of new hospital/nursing home
(8)        Finance for professionals.
(9)        H.P. Portfolio management for providing hire purchase loans against motor vehicles.
(10)      Loan replenishment for purchase of further machineries and extension of  factory building for the existing line of activity.
(11)      DG Set Finance.
(12)      Finance for Marketing activities.
(13)      Equity participation.
(14)      Soft loan
(15)      Composite Loan for procurement of equipments, or working capital, or both.
(16)      Closed Units purchase.
(17)      Commercial complex
(18)      Fast track scheme in the form of small loans to service units or Small Industrial Establishments.
(19)      IT Venture Capital Scheme.
(20)      Credit Linked Capital Subsidy for SSI.


Maharashtra State Financial Corporation

The following schemes are operated by the Maharashtra State Financial Corporation

(1)        General Loan Scheme
(2)        Equipment Finance Scheme
(3)        Scheme for Assistance to Medical Practitioners
(4)        Development Finance Scheme
(5)        Scheme for Modernisation
(6)        Term Loan in lieu of Central Subsidy/State Subsidy
(7)        Bridge Loan


Orissa State Financial Corporation

Orissa State Financial Corporation (OSFC) provides loan assistance to the tiny, small and medium scale industrial concerns under following schemes:

1.                   Professional Scheme for qualified professionals in Management, Accountancy, Engineering, Architecture, Medicine, etc.
2.                   New Scheme for
-           commercial complexes, show rooms and sales outlets independent of Hotel business.
-           establishment of departmental stores, shopping malls and tourist homes.
3.         Special schemes for ‑
-           Employment
-                      Hotel
-                      Hire Purchase
-                      Poultry
-                      Medical
-                      Ex‑servicemen
-                      Quality Control
-                      Lease Finance
-                      Equity Fund
-                      Tourism
-                      Women
-                      Single Window Scheme for Tiny and Small units
-                      Equipment Finance.


Punjab Financial Corporation

The Punjab Financial Corporation provides loan on easy terms and condition to new as well as existing concerns for acquisition of capital assets in the form of land, building, plant and machinery through its following schemes.

(1)        General Loan Scheme
(2)        Scheme for Technololgy Development Modernisation
(3)        Loans to transport industries
(4)        Composite Loan Scheme
(5)        Assistance to Scheduled Castes/Scheduled Tribes entrepreneurs
(6)        Single window scheme for financing of fixed assets and working capital to tiny and SSI Units.
(7)        Mahila Udyam Nidhi Scheme
(8)        National Equity Fund Scheme
(9)        Scheme for Acquisition of ISO 9000 Series
(10)      Scheme for Textile Industry under Technology Upgradation
(11)      Quick Finance Scheme
(12)      Scheme for Short Term Assistance
(13)      Scheme for Financing Commercial Complexes
(14)      Scheme for Financing Workhouses/Plinths
(15)      Scheme for Assistance to Information Technology & Software Development Sector.
(16)      PFC ‑ Line of Credit Scheme.


Rajasthan Financial Corporation

The following schemes of financial assistance are available at the Rajasthan Financial Corporation.

(1)        Term Loan Scheme
(2)        Scheme for Medical Practitioners
(3)        Tourism Related Activities
(4)        Composite Loan Scheme
(5)        Single Window Scheme
(6)        National Equity Fund
(7)        Qualified Professionals
(8)        Transport Loan
(9)        Technology Upgradation Fund Scheme (TUF) for Textile Indus
(10)      Scheme for Technology Development & Modernisation (RTDM)
(11)      Scheme for Certification of ISO 9000
(12)      Construction of Commercial Complexes, Shopping Malls and Sales Outlets.
(13)      Information Technology Scheme
(14)      Scheme for Mining Activities
(15)      Working Capital Bridge Loan Scheme
(16)      Assets Financing Scheme
(17)            Fast Track Loan Scheme
(18)            Scheme for Financial Assistance to Industrial concerns involve Commercial Construction Activities for Development of Reside Houses/Flats/Housing Complex.
(19)            Scheme for working capital term loan with the facility of deposit and withdrawal through pass book.
(20)      Scheme for financing against assets.
(21)      Others
(a)                Scheme for Dhaba
(b)                Scheme for Financial Activities Relating to Marketing of Products
(c)                Assistance to Units intending to Switch‑over their Loan Accounts, from Banks and other financial institutions to RFC.


Tamil Nadu State Industrial Investment Corporation

TIIC provides long and medium term financial assistance under following schemes
(1)        Term Loan
(2)                Term Loan and Working Capital Assistance under the Single Window Scheme.
(3)                Lease Financing for Machinery/Equipments.
(4)                Hire Purchase Financing for Machinery/Equipments.
(5)                Merchant Banking & Other Financial Services.
(6)                Soft Loan.


Uttar Pradesh Financial Corporation

The UPFC provides financial assistance through its following scheme
(1)        Composite Loan Scheme
(2)        Handloom Weavers Loan Scheme.


List of State Financial Corporations

  1.       Andhra Pradesh State Financial
          5‑9194, Chirag Ali Lane
          P.B. No. 165.

9.  Karnataka State Financial
         Building (5th Floor)
         25, Mahatma Gandhi Road
         Bangalore‑560 001

2.      Assam Financial Corporation
           Vittiya Bhawan,
            Paltan Bazar,
            Guwahati-781 008
10.  Kerala Financial Corporation
      Thiruvananthapuram 695 033

3.      Bihar State Financial Corporation
          Frazer Road
          Patna-800 001
11.  Madhya Pradesh Financial
      Finance House
      Bombay‑Agra Road
      Indore‑452 001.

4.        Delhi Financial Corporation
          Saraswati Bhawan
          'E' Block
          Connaught Place
          New Delhi‑ 110001.

12.  Maharashtra State Financial
      New Exercelsior Building
      (7th, 8th & 9th Floor)
      Arnrit Keshav Nayak Marg
      Mumbai‑400 001

5.       Haryana Financial Corporation
          Bays Nos. 17, 18 and 19
          Sector 17A,
         (Opp. LIC Building)
         Chandigarh‑160 017.

13.  Orissa State Financial
      Corporation OMP Square
      Cuttack‑753 003.

6.      Gujarat State Financial Services Ltd.
        62, 6th Floor,
        City Centre,
        Near Swastik Char Rasta,

14.  Punjab Financial Corporation
      S.C.O. 95‑98,
      Bank Square, Sector 17‑B,
      Chandigarh‑160 017

7.    Hirnachal Pradesh Financial Corporation
       New Himrus Bldg.,
      Circular Road,
       Simla‑ 171 001

15.  Rajasthan Financial Corporation
      Udyog Bhavan,
      Tilak Marg, C‑Scheme,
      Jaipur‑302 005.

8.    Jammu & Kashmir State Financial Corporation,
       SFC House,
      Augaf Building,
      VirmargJammu‑180 001.

16.  Tamil Nadu Industrial
      Investment Corporation
      Limited, Old No. 16C,
      New No. 37C, II Floor
      Whites Road,
      Chennai 600 014.

 18. West Bengal Financial Corpn.
      4 Kiran Sankar Roy Road
 Calcutta 700 100
17. Uttar Pradesh Financial Corpn.
      14/88 Civil Lines,
      Kanpur‑208 001


List of State Industrial Development Corporations

1.                   Andhra Pradesh Industrial Development Corporation Ltd. Parishrama Bhawan, 5‑9‑58/13, Fateh Maidan Road Hyderabad‑500 004.
2.                   Arunachal Pradesh Industrial Development and Financial Corporation Ltd. C‑Sector, Itanagar‑791 111.
3.                   Assam Industrial Development Corporation Ltd. RGB Ro, Guwahati‑781 024.
4.                   Bihar State Credit and Investment Corporation Ltd. Jeewan Jyoti Bhawan, S.P. Verma Road, Patna‑800 001.
5.                   EDC Ltd. Dr. Atmaram Borkar Road, Panaji, Goa 403 001.
6.                   Gujarat Industrial Development Corporation Ltd. Udyog Bhawan, 4th Floor, Block No. 3, Sector 11, Gandhinagar‑382 011.
7.                   Haryana State Industrial Development Corporation Ltd. Plot No. 13 -14, Sector 6, Panchkula‑ 134 109.
8.                   Himachal Pradesh State Industrial Development Corporation Ltd New Hirnrus Bldg., Circular Road, Simla‑ 171001.
9.                   Industrial Promotion and Investment Corporation of Orissa Ltd. 3A Satya Nagar, Bhubaneshwar‑751 007.
10.               Jammu and Kashmir State Industrial Development Corporation Ltd., Drabu House,  Rambagh, Srinagar, J&K-90 001, Shere Kashmir Bhavan, Vir Marg, Jammu, J&K‑ 180 00 1.
11.               Karnataka State Industrial Investment and Development Corporation Ltd. Hari Niwas, 36 Cunningham Road, Bangalor6560 052.
12.               Kerala State Industrial Development Corporation Ltd. TC 10/402­ Keston Road, Kawadiar, Trivandrum‑695 003
13.               Madhya Pradesh Audyogik Vikas Nigarn Ltd. 2nd Floor, Panchaman Bhawan, Malviya Nagar, Bhopal 402 003.
14.               Maharashtra Industrial Development Corporation. Udyog Sarathi, Mahakali Sarathi, Mahakali Caves Road, Andheri (E), Mumbai 400 09
15.               Meghalaya Industrial Corporation Ltd. Meghalaya Additional Secretariat Building, Third Floor, Room No. 413, P.B. No. 9, Shillonj
16.               Mizoram Small Industrial Development Corporation Ltd. Aizawl.
17.               Nagaland Industrial Development Corporation Ltd. P.B. No. Dimapur‑797 119.
18.               Pondicherry Industrial Promotion Development and Investment Corporation Ltd. 38, Romain Rolland Street. Pondicherry‑605 001
19.               Punjab State Industrial Development Corporation Ltd. Udyog Bhavan 18, Himalaya Marg, Sector 17, Chandigarh‑160 017.
20.               Prodeshiya Industrial and Investment Corporation of Uttar Pradesh Ltd. Jawahar Bhawan, Ashok Marg, Lucknow 226 001.
21.               Rajasthan State Industrial and Mineral Development Corporation Ltd. Udyog Bbawan, Tilak Marg, C‑$cheme, Jaipur 302 005.
22.               Sikkim Industrial Development and Investment Corporation Ltd Gangtok, Sikkim.
23.               Tamil Nadu Industrial Development Corpn. Ltd. 19‑A, Rukman Lakshmipathy Salai, Egmore, Chennai‑600 008.
24.               Tripura Industrial Corporation Ltd. Agartala.
25.               West Bengal Industrial Development Corporation Ltd. 23A, Netaji  Subhash Marg, Calcutta‑700 001.