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 Development

Business Development
Financial 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 Rajasthan

and

industrial

development

in

RESEARCH METHODOLOGY
45 days
DURATION

RESEARCH DESIGN

Analytical

RESEARCH INSTRUMENT

Websites,Books,Interview,Discussions, case studies

Project Risk Analysis

Project Identification Process

RESEARCH ZONES

Project Feasibility Study

Environmental Feasibility

FINANCIAL

ASSISTANCE

RIICOs assistance to 1004 projects so far

Investment to the tune of Rs. 69,986 million

Employment for over 98000 persons 2010-11, RIICO sanctioned term loans of Rs.141.19

crore to various projects More 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 loan

Equipment finance scheme

Working capital term loan Medium term multi purpose loan Flexi loan for Hotels ,Hospitals and Nursing homes Short term loan to existing good borrowers. Etc

FINDINGS
For the year 2009-10

loan sanctioned = 9822.5 (lakhs) Investment curtailed = 14502.98 (lakhs) no. Of projects = 40 no. of employees = 1031

For the year 2010-11 loan sanctioned = 21244.04 (lakhs) Investment curtailed = 53197.84 (lakhs) no. Of projects = 32 no. 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