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.
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.
(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.
Financial Assistance of ICICI:
(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.
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.
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. 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.
(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.