A STUDY REPORT ON

PROJECT FINANCING AND FINANCIAL ASSISTANCE IN RIICO

PRESENTED BY-:ASHISH MATHEW

JECRC,SITAPURA,JAIPUR

INTRODUCTION Rajasthan State Industrial Development and Investment

Corporation Limited (RIICO) Wholly owned Company of Government of Rajasthan. Inception in 28 March 1969 Changed in 1st January, 1980

Authorised capital

•2350 million

Paid up capital

•2102 million

Regional offices

•26 jaipur•1 delhi

MAIN ACTIVITIES

Infrastructure DevelopmentBusiness DevelopmentFinancial Assistance

OBJECTIVES OF THE STUDY

To study the financial assistance provided by RIICO to various industries in Rajasthan.

To study the contribution of RIICO in the infrastructure and industrial development in Rajasthan

RESEARCH METHODOLOGY

DURATION •45 days

RESEARCH DESIGN •Analytical

RESEARCH INSTRUMENT •Websites,Books,Interview,Discussions, case studies

RESEARCH ZONES

FINANCIAL ASSISTANCE

RIICO’s assistance to 1004 projects so far Investment to the tune of Rs. 69,986 millionEmployment for over 98000 persons2010-11, RIICO sanctioned term loans of Rs.141.19

crore to various projectsMore than 16,500 industries are in production

developed by RIICO in Rajasthan.

MAJOR PROJECTS More than 16,500 industries are in production within the Industrial

Areas developed by RIICO in Rajasthan.

They include some prominent projects set up with active financial and technical backing of the multi-national companies like:

Samcor Glass Ltd. (Corning, US and Samsung, Korea) Ericsson Telecom (LM Ericsson, Sweden) Indian Shaving Products (Gillette, UK) Bausch & Lomb (Bausch & Lomb, USA) Climate Control Ltd. (Ford Motor Co., USA) Sicpa Ltd. (Sicpa s.a., Switzerland) MICO Bosch

SCHEMES

Project loanEquipment finance schemeWorking capital term loanMedium term multi purpose loanFlexi loan for Hotels ,Hospitals and Nursing homesShort term loan to existing good borrowers. Etc

FINDINGS

For the year 2009-10loan sanctioned = 9822.5 (lakhs)

Investment curtailed = 14502.98 (lakhs)no. Of projects = 40no. of employees = 1031

For the year 2010-11loan sanctioned = 21244.04 (lakhs)

Investment curtailed = 53197.84 (lakhs)no. Of projects = 32no. of employees = 2398

It shows the increasing popularity of RIICO and its schemes.

More projects based on expansion are more common in recent years.

Less formalities would encourage more loan takers.

If interest rates are curtailed more loan takers will approach

If government imposes less rules in RIICO policies then RIICO would benefit more.

Persons at high level should comprise with more knowledge about project financing and should have commercial background.

ADVANTAGES

Strong recovery cell Efficiency of the people has increased Spread of network throughout raj RIICO being industrial catalyst has very good contacts

with industrialist and industrial houses Support from state and central government

LIMITATIONS

Non performing assets Industrial sickness Competition with banks Incomplete documentation Effects of globalisation & liberalisation Change in government policies Political reasons

CONCLUSION

RIICO has made remarkable achievements since its inception towards fostering industrialization in the State of Rajasthan in many facts like infrastructure development, providing financial assistance & providing consultancy & allied services, but now with the emergence of the private sector as well as to keep to pace with the rising competitiveness & to prove its worthiness in fostering industrialization in the changed scenario.

RECOMENDATIONS

Expansion of professional manpower Continuation of the scheme of rebate in interest rate

on timely payment Rules and regulations governing term landing activity

should be simplified to create hassle free environment for the entrepreneurs.

Should take effective steps towards reduction in overheads through adoption of computerized working

THANKS