Apart from providing financial assistance, KSIIDC also provides a package of services. These include : project conception to the post production stage.

Project identification
KSIIDC assists entrepreneurs in identifying suitable projects, keeping in view the availability of resources and the market demand. Technologies are procured for new projects. Entrepreneurs are assisted with techno-economic reports, feasibility studies and market surveys. Specialised consulting firms are commissioned wherever necessary.

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Direct Equity Participation
KSIIDC participates in direct equity share capital.The participation will be upto 11% of the paid - up equity share capital depending upon the merit of the project. In certain sectors the participation could be upto 26 %. The equity through such direct participation is expected to be disinvested by the corporation within a maximum period of 3 -5 years, on a mutually agreed disinvestments formula.

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Medium and Long Term Loans
KSIIDC provides medium and long term loans for projects planned in Karnataka. Loans are made available for setting up of new projects as well as for expansion, modernisation or diversification. It can also syndicate Term Loans under an arrangement with IDBI /SIDBI/ KSFC / Banks.

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Equipment Finance Scheme

Short Medium Term Loan Funds are provided quickly under a simplified procedure to well established small and medium scale industries for acquisition of indigenous as well as imported capital goods.

Following are the requirements:

1.They should have been in operation for atleast four years.
2. Have earned profits and / or declared dividends on equity for the preceding two years.
3. Not be in default to any leading institutions / banks in the payment of their dues.

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Term Loan For Procuring Diesel Generating Sets
  This scheme is operated on similar lines of existing normal term loan scheme. It is intended to finance procuring of DG sets and accessories by existing profit making companies. The applicant should have posted a net profit in the preceding financial year. A debt equity ratio of 2:1 for the scheme will be maintained.

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Deferred Payment Guarantees(DPG)
KSIIDC provides guarantees against deferred credit in respect of both indigenous and imported machinery. The facility would be considered to companies having a good track record and will be offered on selective basis.

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Equipment Leasing Schemes

KSIIDC offers Equipment Leasing Facility on a selective basis for established units having a good track record. The special features of this scheme are:

1. 100% of the equipment cost can be financed.
2. Sanctions and disbursements of funds are quick with simple formalities.

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Tourism Project
KSIIDC extends financial assistance for setting up star hotel projects, tourism related facilities such as setting up of amusement parks, cultural centers, convention centers etc.

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Hospitals/Nursing Home Finance Schemes
KSIIDC provides financial assistance for setting up modern hospitals, nursing homes and diagnostic centres.

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Corporate Loan
KSIIDC provides short - term loans (upto 30 months) to manufacturing companies for meeting working capital requirement / business development / promotion backed by adequate securities. This scheme is applicable to existing well established with good track record and profit making companies having no defaults to term lending institutions / banks, an average profit of Rs.25 Lakhs / year and turnover above Rs.200 Lakhs.

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Bill Discounting Scheme
KSIIDC provides financial assistance under the scheme (against puchase bills or supply bills) to well established, with good track record and profit making companies having no default to term lending institutions / banks.

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Subscription to Non - Convertible Debentures
  KSIIDC extends financial assistance by subscribing to non convertible debentures of well established companies making profits for the last three years with no defaults to term lending institutions / banks. The assistance will be backed by adequate securities.

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Merchant Banking Services
KSIIDC provides a package of Merchant Banking Services particularly in the areas like Issue Management, lead Managers and Co - Managers to the issue, syndication of loans, bought - out deals, advisor to the issue and opening letters of credit and guarantees. KSIIDC also provides advisory services to Public Sector Units and other companies for financial restructuring and disinvestment proposals.

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Nodal Agency for certain Mega Projects of the State
  KSIIDC is the nodal agency of the State Government to plan and formulate proposals for Infrastructure Development Projects after assessing the need in different sectors. It will identify suitable private sector agencies to undertake these projects on BOO / BOOT / BOLT concepts. At present, KSIIDC is the designated nodal agency for the following projects:

Airport of International standards at Bangalore,
Two mega steel plants in Bellary - Hospet region
Raichur Growth Center
Khanija Bhavan Export
Promotion Industrial Park,Mangalore
Development of Sea Ports and Minor Airports

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Foreign Direct Investments (FDI's)
  KSIIDC is the "Designated Agency" of the State to promote Foreign Direct Investments (FDI's). It maintains a database on the FDI's.

 

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