Profile of OSFC

Particulars of the Organisation

NAME OF THE ORGANISATION:    Orissa State Financial Corporation (O.S.F.C).

The Orissa State Financial Corporation (OSFC) was established in 1956 under the State Financial Corporations Act, 1951 with the main object of providing loan assistance to the tiny, small and medium scale industrial concerns.

PURPOSE OF ASSISTANCE:

Loan assistance is provided for construction of factory building, purchase of plant and machinery, to meet electrification and installation expenses and for renovation and modernisation of existing units.

INDUSTRIAL CONCERNS ELIGIBLE FOR ASSISTANCE:

Industrial concerns engaged or proposed to be engaged in any of the following activities are eligible to avail of financial assistance from the Corporation.

1. Manufacture, preservation or processing of goods, assembling, repairing or packing of any article.
2. Mining, providing drilling facilities, heavy material handling equipment, cranes, earth moving equipment, road construction equipment.
3. Transport, weigh bridge facilities, industrial estates.
4. Power generation, providing telex/ telecommunication facilities, photocopying, computer.
5. Hotel, community centres, amusement parks and other tourism related activities.
6. Hospitals / nursing home.
7. Providing special or technical knowledge, or other services for the promotion of industrial growth etc., and
8. Such other activity as may be approved by Small Industries Development Bank of India (SIDBI).

CONSTITUTION OF INDUSTRIAL CONCERNS:

An industrial concern with any of the following constitution is eligible to avail of financial assistance from the Corporation.

1. Companies (both Public & Private Ltd.).
2. Cooperative Societies.
3. Partnership firms.
4. Proprietorship concerns.

LIMIT OF ACCOMMODATION:

The maximum loan that can be advanced to Companies and Cooperative Societies is limited to Rs.150.00 lakh while for proprietorship and partnership concerns the limit is Rs.90.00 lakh.  But, in consortium with IPICOL and Commercial Banks, loans above Rs.150.00 lakh can be sanctioned to a concern provided the project cost is up to Rs.10.00 crore.

The Corporation, however, has prescribed a floor level of Rs.10.00 lakh for availing of loan.

Fee Based Activities:
The Corporation has laid down emphasis to diversify the business activities to non-fund based area through better deployment of its existing human capital. The following new Fee Based Activities have been introduced by the Corporation.

1. Marketing of Life Insurance Products of M/s. HDFC Standard Life Insurance Company Ltd.
2. Marketing of General Insurance Products of M/s. ICICI Lombard Gen. Insurance Co. Ltd.
3. Valuation of assets.
4. Preparation of Project Profile for Micro & Small Enterprises.
5. Consultancy services under Rajiv Gandhi Udyami Mitra Yojna.

MANAGEMENT:

The general superintendence, directions and management of affairs and business of the Financial Corporation vests in the Board of Directors and the Board of Directors may exercise all powers and do all such acts and things as may be exercised or done by the Financial Corporation and are not by this Act expressly directed or required to be done by the Financial Corporation in general meeting.
The Board in discharging its functions under this Act shall act on business principles, due regard being had by it to the interest of industry, commerce and the general public.

The business which the Financial Corporation may transact are provided in Sec-25 and the business which the Corporation can not transact are provided in Sec-28 of the SFCs Act, 1951.  The Corporation can provide assistance to Industrial Concerns as defined under clause (c) of Section 2 of the said Act.