Question

Explain the role of State Industrial Development Corporations (SIDCs) in regional balance development.

Answer 1

The State Industrial Development Corporations have been set up by the State Governments as companies wholly owned by them. At present, 22 such SIDCs are functioning in India. SIDCs are not merely financing agencies, but are intended to act as instruments for accelerating the pace of industrialization in the respective States.

Besides providing financial assistance to industrial concerns by way of loans, guarantees and underwriting of or direct subscriptions to shares and debentures, the SIDCs undertake various promotional activities such as conducting techno-economic surveys, project identification, preparation of feasibility studies, selection and training of entrepre¬neurs. They also promote joint sector projects in as¬sociation with private promoters. In such projects SIDCs take 26% private co-promoter takes 25% of the equity, and the rest is offered to the investing public.

SIDCs also undertake the development of industrial areas, construction of sheds and provision of infrastructural facilities .and also the development of new growth centers. They also administer various State Government incentive schemes.

The IDBI grants refinance to SIDCs also against the term loans provided by them. SIDCs also borrow by way of bonds and from the Government and ac¬cept deposits to augment their resources.

Answer 2

Answer:

Financial institutions make up SIDC. They therefore serve as a tool to accelerate the industrialisation process in various states.

Explanation:

The various state governments are about to finish up the SIDC that they established. Additionally, their governments fully own the company. Financial institutions make up SIDC. They therefore serve as a tool to accelerate the industrialisation process in various states.

So they give loans, guarantees, subscriptions to shares, and other things to the firms in order to achieve this strategy. Along with providing loans to various businesses, SIDC also runs a variety of marketing campaigns that include project discovery, techno-economic surveys, the creation of feasibility studies, and coaching for budding entrepreneurs.

The construction of sheds, the growth of commercial areas, and the provision of a variety of infrastructure facilities are all priorities for SIDC. Additionally, they keep an eye out for other new growth hubs. They also keep an eye out for the emergence of other new growth centres.

FINAL ANSWER - Financial institutions make up SIDC. They therefore serve as a tool to accelerate the industrialisation process in various states

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