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Financial Institutional Assistance and Support to Small-scale Industries in Tamilnadu - A View

Selvaraj N* and Balajikumar P

The Small Enterprise Information and Research Centre Network (SENET), was launched in April 1997. SENET has been awarded the golden icon national award 2005 for “Best Documented Knowledge Resource” under professional category by the Department of Administrative Reforms and Public Grievances (DARPG), Government of India. In August 1984, the Government of India passed an Act converting the Industrial Reconstruction Corporation of India (IRCI). It is Industrial Reconstruction Bank of India (IRBI) the IRBI was established in March 1985 to take over the IRCI. The IRBI was to function as the principal all India credit and reconstruction agency for industrial revival, assisting and promoting industrial development and rehabilitating industrial concerns. The Tamil Nadu Investment Corporation Limited is an apex state level financial institution primarily intended for assisting the small and medium scale industrial units. Until the 1970’s conventional Development Finance Corporations were considered as a main vehicle for channeling loan funds to small industries. The Bank under study may have specialized branches in each district to the loan requirements of the small-scale industries. Adequate delegation of power at the branch level may be given so as to avoid several layers of hierarchy in granting loans to SSI units.