Objectives & Functions of SIDCs
- The State Governments established State Industrial Development Corporations, which are completely owned corporations. Currently, 22 such SIDCs are operational in India. SIDCs are designed to operate as vehicles for quickening the pace of industrialization in the different states, rather than just as financial organizations.
- In addition to providing financial assistance to industrial concerns through loans, guarantees, and underwriting or direct subscriptions to shares and debentures, SIDCs engage in a variety of promotional activities such as conducting techno-economic surveys, project identification, feasibility studies, and entrepreneur selection and training. They also promote joint-sector initiatives in collaboration with private promoters. In such ventures, SIDCs own 26% of the stock, the private co-promoter owns 25%, and the remainder is available to the investing public.
- SIDCs also develop industrial sites, build sheds, and provide infrastructural amenities.Additionally, new growth hubs are being developed. They also manage many State Government incentive programs.
- SIDCs’ key functions are as follows: