explain state financial corporation & its function

1 Answers

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   A central Industrial Finance Corporation was set up under the Industrial Finance
   Corporations Act, 1948 in order to provide medium and long term credit to industrial
   undertakings which fall outside the normal activities of Commercial Banks. The State
   Governments expressed their desire that similar Corporations be set up in States to
   supplement the work of the Industrial Finance Corporation. State Government also
   expressed that the State Corporations be established under special statute in order to
   make it possible to incorporate in the Constitution necessary provisions in regard to
   majority control by the Government, guaranteed by the State Government in regard to
   the payment of principal. In order to implement the views expressed by the State
   Governments the State Financial Corporation Bill was introduced in the Parliament

   Answered by: kislay on Jun 29, 2012 Reply