National Industrial Development Corporation9th October 2022 0 By indiafreenotes
National Industrial Development Corporation Limited is one of the foremost of the public sector undertakings India. The National Industrial Development Corporation Limited was set up as a financial institution which was a part of the Ministry of Commerce and industry under the Government of India.
The National Industrial Development Corporation Limited functioned as a consultancy for the purpose of providing to the country’s industrialization requirements. The National Industrial Development Corporation Limited was phenomenon in the establishment of primary producing units in the public sector in India. NIDC is at present among the well known organizations of global standard. The National Industrial Development Corporation Limited also render services to global organizations such as UNICEF, World Bank, USAID, etc.
The MIDC was established on 20th October 1954 by the Central Government which has been regarded mainly as the instrument to achieve a balanced development of Industries in the private as well as the public sector.
The NIDC plans and formulates projects for setting up new Industries or for developing new lines of production. It undertakes establishment of such undertakings which in the opinion of the central government would contribute to the industrial development of the country.
The main objective of the corporation is promotion of industries rather than granting of finance. It builds up industrial schemes of its own or collaborates with the private industry. It can also render assistance for the modernization of industries.
The corporation was set up with the authorized capital of Rs. 1 crore out of which Rs. 10 lakhs have been issued and paid up by the government which was increased to 50 lakhs by the end of March 1963. It can also borrow from the government. It is also empowered to issue shares and debentures to enlarge its financial base.
The NIDC has been started for providing assistance to cotton, jute, and sugar industries for modernization. It has established a consultancy in private and public sector. In the year 1970 it rendered consultancy services worth Rs. 69 lakhs.
The services of the MIDC are being availed of by Indian and foreign entrepreneurs as well as by United Nations organisation. The management of the NIDC is entrusted to a board of directors consisting of 8 members including the chairman and a managing director. All the appointments are made by the central government.