The State Industrial Development Corporations (SIDCs) are government enterprises controlled by the state that work to develop and promote medium and big businesses. The state industrial corporations engage in the development of financial support as well as create industrial infrastructures such as industrial parks and estates. They establish industrial ventures either in partnership with private enterprises or on their own, along with setting up subsidiaries. They offer loans to a variety of industrial units in the medium and big sectors, with interest rates ranging from 13.5 percent to 17 percent, depending on the loan amount.

A few of the SIDCs are:  

Below mentioned are a few of the State Industrial Development Corporations:

  • Jammu and Kashmir State Industrial Development Corporation
  • Delhi State Industrial and Infrastructure Development Corporation
  • Haryana State Industrial and Infrastructure Development Corporation
  • Tamil Nadu State Industrial Development Corporation
  • Kerala State Industrial Development Corporation

SIDCs Aims:

The key aims of state industrial development corporations are as follows:

  1. The state industrial corporations engage in the development of micro, small, and medium-sized businesses.
  2. It assists in the formation of entrepreneurship and the development of skills.
  3. It aids in the development of industrial infrastructure.
  4. Its goal is to help businesses with publicity and marketing.

SIDCs Responsibilities include:

The activities that all SIDCs engage in are not the same. Because the real range of services conducted by an individual SIDC is dependent on the specific obligations allocated by the respective state, there is substantial variability in the tasks performed by them. But some of the functions are as follows:

  1. The state industrial corporations engage in the development and provide loans, stock subscriptions, and guarantees to a variety of businesses in diverse industries.
  2. They help to speed up the process of industrialisation in the Indian states where they operate. 
  3. They support financially by loans, underwriting or direct subscriptions to debentures and shares, guarantees, and other ways.
  4. They run a variety of promotional initiatives, such as entrepreneurship training and project discovery. 
  5. They get rare raw materials from both the domestic and foreign markets and make them available to small-scale companies in need, according to their specifications.
  6. SIDCs make advance payments to get orders and distribute them across numerous small scale enterprises.
  7. When industrial entities supply items to government departments, payments are frequently delayed. As a result, SIDCs discount invoices drawn on government departments to minimise such delays.
  8. SIDCs use a variety of programmes to give effective marketing support to diverse industrial units. SIDCs are invited to bid on tenders issued by state government departments.
  9. It aids in the resolution of various industrial units’ working capital issues.
  10. SIDCs assist the establishment of skill development centres, which teach people a variety of skills and industrial operations. This is to guarantee that skilled labourers are available for diverse small-scale companies.
  11. It assists small-scale businesses in participating in international trade shows so that their products can be shown.
  12. The state industrial corporations engage in the development and also support industrial businesses run by women.

About the Council of State Industrial Development and Investment Corporations of India (COSIDICI):

COSIDICI (Council of State Industrial Development and Investment Corporations of India) is a national organisation founded in 1976. It is in charge of overseeing and managing the State Financial Corporations (SFCs), State Industrial Development Corporations (SIDCs), and State Infrastructure Development Corporations (SIDCs). The COSIDICI includes 56 state-level institutions as members as of 1999. There are 18 SFCs, 28 SIDCs, and 10 State Infrastructure Development Corporations among the 56 institutions.

COSIDICI has the following functions:

  • COSIDICI offers low-interest loans.
  • They assist in the provision of industrial sheds at the state-run corporation’s industrial estates.
  • They support industrial units in the development of project reports with technical assistance.
  • They provide particular incentives accessible for the establishment of industrial units, which are supplied by the individual state governments.

Conclusion:

As mentioned, SIDCs was formed in the 1960s and early 1970s as wholly-owned State Government ventures to promote economic growth under the Companies Act of 1956. The state industrial corporations engage in the development of businesses. There are now 28 SIDCs operating in India. SIDC stands for industrial development corporation in its entire form. The major goal of founding SIDC was to accelerate India’s industrialisation progress. It is also regarded as one of the first financial institutions to open in India.