SIDCs were incorporated under the Companies Act, 1956 in the sixties and early seventies as wholly owned State Government undertakings for promoting industrial development. At present there are 28 SIDCs in the country.
Functions of State Industrial Development Corporation
(i) To provide risk capital to entrepreneurs by way of equity participation and seed capital assistance.
(ii) To provide financial assistance in the form of term loans, under writing direct subscription to shares/debentures and guarantees.
(iii) To administer incentive schemes of Central/State Governments.
(iv) To undertake promotional activities like preparation of feasibility reports, conducting industrial potential surveys, entrepreneurship development programmes and developing industrial estates.
(v) Some SIDCs offer a package of developmental services such as technical guidance, assistance in plant locations and coordination with other agencies.
(vi) In tune with the changing environment, many SIDFs are making efforts to diversify and entering into the fields of equipment leasing, merchant banking, venture capital and mutual funds.
The activities undertaken by all the SIDCs are not the same. There is considerable diversity in the activities performed by them, since the actual range of activities being undertaken by an individual SIDC depends upon the specific responsibilities entrusted by the respective state.