EDP Notes

It came into existence in the year 1953. It provides financial assistance for starting of new
industrial units, expansion, diversification or Modernization of existing units...
FUNCTIONS
1) To grant long term loans to new and existing SSI units. Maximum amount of loan is Rs 60 lakhs
subject to the condition that the project cost does not exceed Rs.3 crores.
2) Underwriting of shares and debentures floated in the open market.
3) Guaranteeing deferred payments to machinery suppliers for indigenous machinery purchased by
borrowers in Kerala.
4) Guaranteeing the loans raised by the industrial concerns in public market or from scheduled
banks or state Co-operative Banks.
It has introduced the following schemes:
 Techno crafts Assistance: KFC has introduced this scheme to provide liberalized financial
assistance to entrepreneurs. Any person with a degree or diploma in Engineering,
Technology is eligible for assistance
 Assistance to SC/ST Entrepreneurs: The corporation gives 90% of the cost of fixed assets
for loans not exceeding Rs.50,000 per person and Rs.1lakh if there is more than one.
 Single Window Scheme: The single window scheme is fir grant of term loan and working
capital to new micro and small units whose project cost does not exceed Rs.20lakhs and
total working capital requirement is within Rs.10 lakhs. The repayment period is between 5
and 10 years.
 Special Capital Assistance: It has created a special capital fund with the object of
providing equity type of assistance for soft terms for entrepreneurs who have necessary skill
and experience but lack of financial sources to set up SSI units. It has introduced special
schemes for professionals, ex-servicemen, women entrepreneurs etc. KFC has introduced
another scheme called quality certificate scheme. The object of this scheme is to help the
SSI units in securing the certificate of International Standards Organization (ISO).