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(SIPCOT)
INTRODUCTION

ƥ SIPCOT was set up in 1971 as a public limited company wholly

owned by the Government of Tamilnadu, with the specific objective
of playing a role in the promotion & development of medium &
major industries in the private sector & to hasten the industrial
dispersal in backward & under developed areas of the state.

ƥ The corporation commenced its activity in Jan 1972 with a

comprehensive promotional programme designed to stimulate
entrepreneurship.
PROMOTIONAL ACTIVITIES OF SIPCOT

ƥ Provision of financial assistance on liberal terms to

medium & major industries.

ƥ Implementation of a package scheme of incentive for the

benefit of entrepreneurs.

ƥ Development of potential growth centres & provision of

developed lands at reasonable cost on easy payment
terms.

ƥ Provision of various ancillary services for the

entrepreneurs.
SIPCOTƞS FINANCIAL ASSISTANCE

a) Term loan under IDBI Refinance scheme

b) IDBIƞs seed capital scheme
c) Underwriting the capital issues
d) Guarantee loans from commercial banks
Underwriting the capital issues is however,
normally restricted to projects to be set up in
the backward areas of the state. SIPCOT is the
2nd state level institution eligible for refinance
in Tamilnadu under the IDBI refinance
scheme.
Following arrangements evolved between Tamilnadu
industrial investment corporation limited (TIIC) & SIPCOT
in regard to lending term loans to industrial units under the
IDBI refinance scheme.
ƥ All SSI units will be within the purview of TIIC.
ƥ In respect of medium & major scale industries.

1) TIIC can be approached if the term loan requirement is

rs.30 lakhs or less in the case of companies with
limited liability,& if the term loan requirement is rs.15
lac or less in the case of proprietary or partnership
firm.

2) The SIPCOT will sanction the balance of loan, if the

requirement is above rs.30 lakhs in case of companies
with limited liability or above rs.15lac in the case of
proprietary or partnership concern.

3) If the paid up capital & reserves of the company are

more than rs.1 crore,they will apply only to SIPCOT.
 Project Identification & supply of
project profiles:
ƥ SIPCOT role is to fulfilling the objectives of rapid
industrial growth & industrial dispersal in backward
areas.
ƥ Recognising that identification of a profitable project is
the foremost step an entrepreneur has to take while
venturing into medium or major industry.
ƥ SIPCOT prepare project profiles giving sufficient details
to enable entrepreneur to take preliminary investment
decision.
ƥ SIPCOT prepared project profiles for a number of
feasible projects & made available to entrepreneur at a
nominal cost.
Entrepreneurial Guidance

ƥ SIPCOT has built up a data bank

containing classified information of various
procedures to be gone through, forms to
be filled up & compliance with assessing
the merits of alternative locations for the
proposed projects with reference to the
source of raw materials, market potential
& facilities available in particular areas.
Business Development:
ƥ The first step SIPCOT has taken in this regard is to bulid up & update the list of
entrepreneurs holding letter of intent & licences in the state. It contacts these
entrepreneurs regularly with a view to find out the stage of implementation.

ƥ It also identifies their problems & help to overcome these problems & go ahead with
implementation.

ƥ It provides guidance to new entrepreneurs on location of plant, economic size of the

unit, foreign collaboration etc.

ƥ The business development department guides entrepreneur in applying for licences

& registrations to the central Government, approval on collaboration, import licence,
allocation of scarce raw materials & clearance from local authorities or financial
institution.

ƥ It also helps entrepreneurs to get necessary commitment for supply of power

&construction materials for putting up the project.