Military Culture: A Dynamic Phenomenon

warfargon machine hygienic-disposedisation A Dynamic Phenomenon soldiers gloss is a dynamic phenomenon which undergoes evolution in consonance with changing environments. cause of changes may non be sudden or abrupt but every shoes a period of succession however the variations in environment take a shit potential to alter the entire character of an army. Sequel to this, organizational changes ready direct bearing on armed services horti tillage, as they define the lifestyle of a troops outfit. These changes coupled with increased requirements of specialized outfits due to intrinsic geographical diversity have catalyzed heathen shifts in our soldiers. These sm everyer and fact set ups have actually created/likely to lead to a no of variant or sub- purifications in the army. This sub-cultural shift if non controlled and channelized may result into serious mutations from our very strong, flavour and head evolved military values as well as stopping point.In view of above, carryout an in depth muse of change in the stopping point of Pakistan troops attributable to organizational changes as well as concept of specialized outfits with a view to suggest remedial measures to offset any ill-tendencies / disadvantages..ABSTRACTCulture is diverse in nature. It exists everywhere on this earth. Pakistan is has a rich Culture which is a blend of mixed(a) finales that existed in the subcontinent during the pre-partition era. Our psycho-social and socio- scotch environment has deteriorated over the past ecstasys. The employment of units in Sub Conventional Warf ar in the last decade and due to Indians Pro Active Operations Strategy has affected the military ending in Pakistan the States. The military culture whether it is affected by the organizational changes and establishing of the satellite stubtonments or not is a question that has been discussed in this paper. The social and cultural problems like reduced ethical values, increased careerism, individualism etc has greatly influenced the military lifestyle. The military culture which had very strong values, customs and traditions is undergoing a exhibit of degradation. More so the media and general awareness has also die harded a major enjoyment in giving rise to materialistic approach among the officers and passs alike.This study has highlighted the reasons for the degeneration of military culture and also gives certain recommendations which can reduce the level of deterioration and revive the lost traditions which are a hallmark of our soldiers Culture.TABLE OF CONTENTSS/No Title PagePreliminaries1 Theme ii2 Abstract iii3 Table of contents ivPart-I4 a. Basic definitions and historical perspective 2b. Roots of phalanx Culture of Sub Continent 10c.Part-Il5 a. organizational / role changes over past 16decade in Pakistan ground forcesb. Strengths of Military Culture 17c. Deformation in Military Culture due to Changes 19in organization and RolePart-Ill6 Effects of socio-cultural disorder on Pakistan Army 23Part-IV7 Recommendations 278 Bibliography 33EFFECTS OF organizational CHANGES AND CREATION OF SPECIALIZED UNITS ON MILITARY CULTUREAn Army without culture is dull witted army, and a dull witted army cannot defeat the enemyMoa Tse Tung creation1. Cultural and social changes have been a dominant part of the evolution of mankind. Culture is that complex whole which includes knowledge, belief, art, morals, rightfulness, customs, and any other capabilities and habits acquired by man as a member of edict1. Military society is a unique and distinct entity with its own sub-culture. This form of culture provides an environment under which leadership and focusing are exercised in the armed forces. Military culture is often determined and modified by the nature of the society of its origin. Although the elements of the military culture like training, discipline, codes, teach etceteras play a pivotal role to bring about changes in the cultural tra its of military personnel, the cultural traits of the society remains its very foundation.2. For a military outfit it is extremely important to have a team equipped with an enriched military culture which can deliver in the hour of need. What makes a soldier fight? In some cases it is the motivation based on ideology, in others it may be materialistic motives. It takes a wide span of time to instill all those attributes which a soldier needs to withstand challenges in the combat. This is a whole time commitment where adept spends more time in relations with maestro choirs than with normal society. History is witness to the fact that military culture has played a key role in the final outcome of numerous battles. Culture is a barometer of societys health. An eroded culture will be a reflection of the illness of a society and vice versa.3. After 9/11, not only affected the society of our country but also transformed the military culture of Pakistan Army a lot. The Sub Convention al Wars in federally Administered Tribal Areas, Swat and areas of Balochistan resulted in formation of new specialized outfits with specific tasks. Indians Pro Active Strategy has also resulted in the organizational changes as well in the form of establishment of new satellite stations/ cantonments. These organizational changes has affected the military culture in Pakistan Army prevailing a decade ago resulting in the deformation of already established military customs, traditions and culture. There is a dire need to identify the deformation that has taken place and the grounds that is required to remove/ correct them.Aim4. To carry out an in depth study of changes in Pakistan Army culture in historic perspective, stream changes in the culture attributable to organizational / specialized outfit tie in transformations, with a view to suggesting remedial measures to offset the deformation in the military culture.PART-I basic DEFINITIONS AND HISTORICAL PERSPECTIVEBasic Definitions5. In order to undertake the study it is imperative to understand the following basic concepts so as to build a sound base for the analysis.a. Society. The English word society emerged in the 15th century and is derived from the French word societe. The French word, in turn, had its origin in the Latin word societas, which means a friendly association with others, from socius meaning companion, associate, and comrade or business partner. The Latin word is probably related to the verb sequi, to follow, and thus originally may have meant follower2. In political science, the term is often used to mean the deriveity of human relationships, generally in contrast to the State, i.e., the setup of rule or government within a territory. In the social sciences such as sociology, society has been used to mean a group of concourse that form a semi-closed social administration, in which most interactions are with other individuals belonging to the group. Societies may also be organized accord ing to their political structure. In order of increasing size and complexity, at that place are bands, tribes, chiefdoms, and dry land societies. These structures may have varying degrees of political power, depending on the cultural geographical and historical environments that these societies essential contend with. Thus, a more isolated society with the very(prenominal) level of technology and culture as other societies is more likely to survive than one in closer proximity to others that may encroach on their resources. A society that is unable to offer an effective response to other societies it competes with will usually be sub summing uped into the culture of the competing society.b. Ethos. Ethos, according to the Oxford English Dictionary, is defined as the characteristic spirit, prevalent tone of sentiment, of a people or community the genius of an substructure or system, although it originally has its roots in the Hellenic word etho or to be accustomed to3. In a pla ce where one might derive often, the opportunity for developing communal values indefinitely arises. These types of values are those which are established in the meaning of ethos. Therefore, to be a good lawsuit of ethos, one most portray the types of traits that are most valued within a society which sometimes differs for every society. For example, those virtues as related to Athens would be justice, courage, temperance, magnificence, magnanimity, liberality, gentleness, prudence, and wisdom.4c. Culture. Culture is defined as the sum of symbols, ideas, forms of expression, and material products associated with a social system. It is a dynamic medium through which societies create a collective guidance of life reflected in such things as beliefs, values, music, literature, art, dance, science, religious ritual, and technology. In this sense, it is literally the source from which we create most of what we experience as reality, and as such its place in human life is enormously im portant5. Culture is the integrated pattern of human knowledge, belief and behavior. Culture thus consists of language, ideas, beliefs, customs, taboos, codes, institution, tools, techniques, work of art, rituals, ceremonies, and other related components. Some researchers say that culture is concerned with the state of mind, spirit and civilization. Even human society also enjoys its own particular culture, or socio-culture system which overlaps with other systems. Variations among socio-cultural system are attributed to physical habits and stretches to the range of possibilities. Culture is inherent in various areas of activity, such as language, rituals and customs. The attitude, values, ideals and beliefs of individuals are greatly influenced by the culture in which they live. Precisely, culture is the sum total of the ways of life of people in a particular society. Culture is the key to understanding a group, has a lot of practical value to a sociologist. If we know the culture and its implication for man or group of men, we can predict certain part of their behavior, and apologize most of its part actions. Following aspects of culture are vital6.(1) Culture is a continuously changing process. It adapts itself to new situation and environment though it is not observed since the changing process is quite slow apparently but has deep under currents.(2) Whenever culture of a society is dilated upon, the instance of that society is not protected.d. Mores. Mores are norms that reflect deeply held cultural ideals about how people should behave. Mores make more important distinctions, such as those between good and evil, virtuous and sinful, laudable and repugnant. A societys mores define standards of behaviour that are more serious and punishment for their violation tends to be both more certain and more severe. Mores extend beyond the rightness or wrongness of certain acts to the most profound ideas about life in a society is supposed to be about7.e. Military Culture. The military society is a unique and a distinct entity with its own sub culture. This form of culture provides an environment under which leadership and management are exercised in the armed forces. Military culture is often determined and modified by the nature of the society and of its origin, although, the elements of culture like training, discipline ,codes, conditioning etc play a significant role to bring about changes in the cultural traits of military personnel, nevertheless, the cultural traits of the entire society remains as the foundation. Since differences or changes in cultural traits are brought about by these elements, they become factors of consideration, particularly in crisis or battle situation. The performance and conduct of soldiers in crisis and battle are the sum total of cultural traits they have imbibed over a period. Military culture is generally based on ideals of honour, sacrifice and discipline, thereby appearing different from the tralatitio us value system of any society. The extent of attainment of these ideals account for the professional rating of the military. This consequently differentiates a professional army from a nonprofessional one. Pakistan Army evolved along with the history of the nation itself and has experienced modifications of its military culture at various critical times. The different stages that the army experienced has helped to modify its culture to what it is nowadays exercising both positive and negative trends on its professionalism.Historical Perspective6. Genesis of Military Culture in a Global Perspective. Military culture can be traced back to the genesis of human society itself. The interesting phenomenon is that despite the wide diversity of the worlds cultural scene, military culture all over, has the same basic ingredients and therefore cannot be isolated drastically from the national culture. Military culture breeds respect, honour and regard for fellow soldiers. Its builds a positi ve culture in which its members live. It is the mainstay of any successful military organization8. Military culture, apart from geographical influences, also has deep historical roots in the genesis of the particular army as well. The armies raised by the colonial powers retain the imprints of colonial occupation in their overall outlook. As humans developed their dwellings into communal groups and the interlocking of tribal society began spreading, so did the profession of arms. Initially all members of the clan were supposed to take up arms whenever circumstances necessitated acquiring or retaining. As civilization grew larger, different people took to different walks of life. This was the origin of professionals. In order to understand the genesis of military culture in its broader perspective, Ancient civilizations of Egypt and Greece will be mention here-a. Military Culture of Ancient Egypt. Egypt is known as a land of ancient wisdom9. By the 1468 BC, small groups of people st arted settling down along the banks of the Nile. These settlements became small villages and in time the headman of one village grew stronger and more powerful than his neighbours. Finally his descendants became rulers were known as Pharaohs and there subjects worshiped them as gods10. The first Pharaoh to rule the Kingdom of upper and lower Nile was Menes, but Hyksos was the first ruler who organized the army and gave birth to the ancient military culture of Egypt. The Hyksos dynasty were driven out by Ahmes in 1567 BC, and from his time onwards, the practice of methods of war became an essential part of the Pharaohs training curriculum. The cities needed dedicated people to defend them and the state needed a powerful army to implement its policies within and without. The Army was the only tangible instrument of power, so great care was taken to indoctrinate its members in a way that that believed in the divinity of the monarch. The important components were-(1) Chivalry.(2) Coura ge.(3) Honour.(4) Duty.(5) Patriotism.(6) Sense of Sacrifice.(7) Fidelity.(8) Unquestioned Obedience.(9) Divinity of the Cause.b. Military Culture of the Greeks. Greeks are a part of our amiable furniture, our cultural baggage. Alternatively, they are the rock on which the painfully constructed edifices of our experiences actually rest11. But which Greeks are they, precisely, whom we should look back to, to trace the genesis of military culture? Alexander, the greatest flag bearer of Greek Culture, was not a Greek but a Macedonian. Nevertheless, Greeks were a warrior people. War, as Heraclites of Ephesus put it round about d BC, is the king and father of all things and all men, some he makes free some slaves. War in ancient Greece, defined the political rights and responsibilities of citizens and colonies, as well as providing a peculiarly demanding test of brute physique and mental strength. It drew the line between the free and the unfree both within the Greek world and between the Greeks and the surrounding barbarian or non-Greek cultures. Apart from their cardinal values of their military culture, the Greeks had moral opposition to militarism that sets classical Greek military culture apart from that of the peoples, ancient or modern, making it ancestral in particular to Western military culture12.ROOTS OF MILITARY CULTURE OF SUB unspotted7. The Indus Valley civilization and culture emerged in about 2500 B.C. Later in 3rd century BC, King Ashoka gave a concept of highly trained and professional Army to the subcontinent. Military culture based on Ashokas values of bravery and wisdom, flourished in the land for the centuries to come.Early Muslim Conquests and Our Military Culture(1) In other(a) 8th century, Muhammad Bin Qasim defeated Raja Dahirs army at Hyderabad. This exposed people of Subcontinent to the Islamic military culture based on brotherhood, bravery, justice, equality, honour and sacrifice.(2) The undermentioned major exposure to our militar y culture was of Muslim sultanate which was established in Delhi by early 13th century. In 16th century the Mongols, who were the decedents of Genghis Khan brush over the mountain passes from Central Asia came to this region. Now, besides the balanced culture of Islam, the harsh culture of YASA (the constitution of the Genghis Khan), the cast-ridden culture of Hinduism and soft culture of Buddhists and Confucius got induced into the military culture of Subcontinent.The British Colonial Era(1) The next cultural big bang occurred due to the arrival of British on the scene. The British restructured and reorganized the local forces. British Raj influenced various facets of our military culture like customs, institutions, and ceremonies.(2) In British Indian Army, religious tendencies were not advocated rather British officers laid emphasis on loyalty, responsibility and regimentation. They portrayed new ideas like mess culture and the creation of rank of Junior Commissioned Officer (J CO). They also created phenomenal training institutions like Military College Jhelum and subordination and Staff College Quetta. So our military culture till independence was a cluttered culture of various civilizations and did not have a single theme to be pursued.Transition Period (1947 1953). 1947 brought new dreams, new hopes and new challenges for the new army. That was the right time to identify our true military culture and shun all unwanted elements. But unfortunately that could not happen because at the time of independence Pakistan build up Forces were deficient of officers. The shortage of officers, forced Pakistan Armed Forces to retain close 500 British officers on contract at senior command and staff appointments, who maintained status quo. Therefore, Pakistan Armed Forces could not find their cultural identity operator in its new composite entity. Disengagement of the residual British officers in 1953 was the beginning of the development of a new military cultur e.Consolidation Era (1953 1971). This mannikin witnessed political instability and the appointment of General Ayub Khan as the Commander-In-Chief. This era brought the idea of Martial Law in the Pakistan Armed Forces. Present shortcomings in our present military culture, due to interactions with the civilians, have their roots embedded in the time frame of consolidation era i.e. from 1953 to 1971. Another important happening in this time frame was the realization that we should give away the British traditions and in this search of our identity and national pride, the pride in affiliation with the British Crown was disowned by symbolic removal of the word Royal that preceded all unit designations. This era also saw 1965 War. The armed forces enjoyed an intimate backing from the civilian masses and the war made soldiers as national heroes.e. Period From 1971 1977(1) This era witnessed the darkest turn in our topic history. Nation faced a political defeat in a military arena.(2) O n the contrary, the strength of the Armed Forces was not decreased and the Government maintained a strong and efficient military. Our culture did not change oftentimes in this period but the masses and the Armed Forces started feeling the requirement of integrating the Islamic values into their daily lives.f. Period From 1977 1988(1) This era over again brought the Armed Forces to the center stage of national politics. In this phase, religion remained central to General Zias philosophy. Changes such as comprehensive ban on drinking were implemented. A cultural shift from a westboundized life style to a more Islamic life style started to begin.(2) Military co-operation with other countries improved. It was estimated that about 30,000 Pakistani troops were stationed in 24 different countries in 1983. This brought a wave of prosperity among the officers and men. There was a swift shift of culture in this time frame from western style to core oriental and Islamic way of military lif e style. This was the era whose impressions can still be found in our present military culture.Period From 1988 1999. This era was characterized by democratic rule and political instability. In a span of seven years, four governments were changed. Due to self interest of various political parties, the political atmosphere remained charged. In spite of tall claims, the economic state depleted and foreign investment decreased due to rampant corruption, deteriorating law and order and political instability. During this decade, both India and Pakistan became overtly nuclear. This gave a temporary boost to subject spirit and the public sentiments aroused. This was immediately followed by the Kargil Campaign. Our culture, however, did not change ofttimes during this decade.Period From 1999 to 2007(1) General Pervaiz Musharaf took over as Chief Executive after(prenominal) military coup. Qualified / suitable Retired military / civilians were appointed as heads of prime organizations whi ch gave an economic boost to these organizations. This era also attracted foreign investment, offered better job opportunities and increase in foreign exchange reserves. Some of its achievements were-(a) WAPDA was saved by the Army from total disaster.(b) Pakistan Railways was rescued and it started giving profit.(c) Steel Mill also started giving profit.(d) Media became independent and a lot of private channels were opened.(2) The events of 9 / 11 changed the complexion of worldwide environment and perception of our people. Government decided to become an ally of NATO forces on Global War on Terror (GWOT). Effects of this strategic shift can be seen even today. In later stage of his reign General Musharraf lost his pride as a leader which had direct influence on the image of the Army. This era can conveniently be termed as one man show. The episode of Dr Abdul Qadir Khan, assassination of Akbar Bugti, Lal Masjid operation and removal of Chief Justice, property of President office being in uniform and emergency declared on 3rd Nov 2010 were some of the controversial decisions resulted in the decline of Musharafs era.i. 2008 till todate(1) Army pulled out from all political institutions. Elections were held and Political Government was set in. Inefficient people with accelerated promotions got appointed as heads of prime institutions. At occasions, National and churl Assemblies gave a picture of fish market. The institution which had the public mandate lost its value, resultantly all organization from transport (PIA and railways) to energy sectors are on verge of collapse. Corruption, lawlessness, injustice, get through energy short fall, unabated inflation and price-hike have further compounded the situation in the country. There seems to be no strategy to give temperance to the commoners. Uncontrolled and un-steered media became a monster. Instead of providing strength to the society it started to bash various organizations with Army as no exception. Pres ently, talk shows have become famous for file game and use of un-parliamentary language. Some of the under mentioned incidents clearly show planned Army bashing by media and politicians-(a) 2nd May incident.(b) Memogate scandal.(c) Salala post incident.(d) North Atlantic treaty Organization supplies issue.(2) However, during this period Army totally remained focused on military affairs and improved its image. Professionalism came back and training took the center stage. Some of the highlights of this period are appended below-Army level war games (AzmeNau series). year of soldier with introduction of Base line menu.Pay package was considerably increased.Introduction of Yum e Shuhada including Shuhada package.Year of training focusing back to basics.Army level study periods.Incentive of free uniform and plots for JCOs / soldiers.Revision of policies.Improvement in Information Technology environment (inclusion of Office Automated System).Success of Military Operation in Swat.Managem ent of Internally displaced personnel (IDPs).Introduction of combat dress.Enhanced accountability.PART IIOrganizational / Role Changes over Past Decade in Pakistan Army8. Organizational Changes. After the incident of 9/11 and the following Global War on Terrorism brought not only changes to the Pakistani Society but also had definite changes onto the military culture of Pakistan Army. It changed the outlook of almost entire army as to how it looked before its commitment in the Sub Conventional Warfares operations. It definitely had some positive aspects to its credit but as far as military culture is concerned it brought some drastic unwanted changes and deformation. The organizational changes that took place during this decade were-a. Commitment of Army in civilian affairs to include monitoring of various state run institutions which were decaying due to inefficiency, which included-(1) WAPDA.(2) Government educational institute.(3) Hospitals.(4) Census.(5) Elections.(6) Railways. (7) Pakistan Steels and others.b. Pakistan Army moved to the lawless Federally Administered Tribal Area along the Durand line after the invasion of Afghanistan by United States of America. Pakistan Army moved to these areas for the first time after the independence. The units and formations those were deployed have a changed role not previously practiced or known to them. They were not properly trained for this type of warfare. These units had to undergo changes not only in their role but also in their military culture due to the changed environment. These changes in the military cultures were demand of the situation and time. With the passage of time these unwanted deformation in the military customs and cultures came with these changes in the organization and roles of the units and formations of army.9. phylogeny of Special Units/Outfits. The last decade saw changes in terms of evolution of specialized outfit and units. The raising of these units, outfits and organizations vastly improve the combat potential of the Pakistan Army. The evolution and raising of these new units and outfits was the need of the hour. These specialized units were trained equipped and stationed at special locations in consonance with their operational roles. The examples in case are nimbleness Commando Battalions and Units of Army Strategic Force Command. Due to their peculiar roles and task, these units were cut off from the routine life of a cantonment adversely affecting the military culture of these outfits.10. Establishments of Satellite Station/Cantonments. In the last one decade, Indian Army has been evaluating and practicing its Pro Active Operations Strategy. This strategy has serious consequences for Pakistan Army resulting in the construction and establishments of new forwards cantonments/satellite stations. Pakistan Armys response to Indians Pro Active Operations Strategy is New Concept of War Fighting. This entailed moving of troops to forward locations during the pe ace time. This factor has further put troops and officers away from the main cantonments and away from the military cultures. This also includes affecting the training and grooming of all ranks.11. Strengths of Military Culture. Pakistan Armed Forces enjoys the reputation of being a professional combat force capable of taking on any operational task. This has been proved time and again by our troops engaged in the nation building, United Nations peace keeping missions and during war with India. Some of the strengths of our military culture are-a. Symbol of National Unity. Ever since its emergence, military has maintained its nationalistic ethos despite various cultural, ethnic, religious rifts gripping Pakistani society. The military has a stature of being above these, thus acting as a unifying force for the country. The role it played in subduing the anti national forces has earned them the respect and are being viewed as the Symbol of National Unity.b. Strength of Institution. The institution of armed forces is constituted on strong ideological foundations of defense of the motherland from internal and external threats.c. National Army. Military culture has an inherent flexibility of warmly accepting all individuals without any discrimination of caste, creed or colour. A large number of Balochi Youth has been inducted in all arms and services of Pakistan Army not only to bring them in mainstream but also to make Pakistan Army as true National Army. It approves healthy competition of achieving professional excellence and rightful doings.d. Religious Values. The recruitment of armed forces is carried out on voluntary basis. Because of the inherent religious strength of our society the desire for martyrdom has always been the prime facet of our military culture.e. Fair System. Military has a s

The Pathology Of Crime Criminology Essay

The Pathology Of horror Criminology EssayPathology is the female genitaliavas of a particular subject- a disease. It is the diagnosis of an abnormality through wary examination of the constituents of the diseased body.When plague is considered to be a disease, an abnormality among humans, then, Pathology of abomination can be cal lead the study of aversion the psychological and general aspects of it, by painstaking examination of the variant constituents and factors of annoyance such as- disruption of existing neighborly norms and values, mental illness, stress, disorganization in society, anti social psycho pathologic mindsets, physical disorders and so forthThrough my paper on this subject, I hope to c over exhaustively alone the social factors that affect society , crime in society and besides empathize and go forthline the lacunae between existing laws against crime, those geared towards the upliftment of society in general and the reality faced by us, the common m an.I withal place to unearth some potentially comprehensive, pragmatic and useful ways to reduce crime rate on a whole and evaluate the effectiveness of tralatitious punishment.What is Crime?A purist legal view of crime is defined as a violation of a reprehensible law. Irrespective of the moral or social outrage or ethical wrongness of an act, it can non be termed a crime un slight it channelizely or indirectly is infringing upon a certain act passed.In this sense, crime becomes a sociopolitical event, rather than a clinical retainer, a clinical or medical condition- which cannot be treated or diagnosed. In the words of Mr. Vernon Fox,1985.In this handed-down outlook on crime, an Actus Reus a criminal act and a guilty intention- Mens Rea are the essential elements of a crime. more thanover crime cannot be restricted in such a way solely to the acts defined. Criminologists must study the deviants-the criminals, as well as the socio cultural contexts that define them.A lot of learned spate and scholars in the fields of Sociology, psychology, neurology as well as eminent jurists and law prevailrs opine that every criminal act is the result of abnormal sort of the individual concerned . This is where it becomes imperative for us to understand the pathology of crime. Hence the question, what exactly is pathology?Pathology and its relationship with crimePathology can be defined as the scientific study and characterization of an anomaly/ disease/ abnormality in a certain field of interest.criminal pathologists, more comm wholly known as criminologists deal with the study, complex body part, changes and surgical procedure of a society on the basis of crimes and the interdependent relationship between crime and society. As in, how society at large is affected by various criminal deviant behavior, how values, mores, laws, folkways in turn keep changing or adjusting to the general consensus of society at large and how this in turn affects impression sa tisfactory tender minds towards deviant tendencies.An interesting trend to note would be the generality towards the acceptance of crime as an abnormality in society. This acceptance shows us that in a utopian environment, the belief of crime ceases to exist. This pathology shows us that we believe crime is essentially a perversion of human character, something that must be remedied or rectified outside from the minds of those who practice it.We can relate the rationality behind that of a pathological criminal to that of a pathological/ compulsive liar. A pathological liar doesnt incessantly know when he/she is lying. The lie becomes a part of his/her reality. This is due to certain mental problems. It has also been found that at that place are some anomalies in the structure of the brain of a pathological liar. It is wired differently compared to regular healthy brains. This throws light on the psychological aspects of crime. It could perhaps be curable one day. These ideas le d to the study of phrenology, in which brain size and shape were used to determine criminality.thither is an immediate and overwhelming need for more medical research on the subject.Contradicting views Durkheim actually states that crime should be seen as something functional and necessary for society rather than something pathological, and a symptom of a diseased society.He bases his argument on that fact that crime has been omnipresent ever since society came into existence. He says all societies, bar none, accept experienced crime. Thus, according to him, crime seems to represent a condition of normality.He says a crime is a crime because it offends values, not because it is fundamentally wrong. He thinks crime strengthens a societies ideals and values because they are reaffirmed every time someone is prosecuted for a wrong doing.Of course, his views are not widely accepted and are opposed by galore(postnominal), due to the obvious gaping loop holes in his explanation. Crime is never a good thing and it doesnt strengthen a society. It reflects on the ethics and morals of the community, true and it might be historically ingrained in our culture but that doesnt make it right. It is s trough something that can, and should be curbed.Thus, on the basis of lack of strong arguments stating otherwise, we can assume crime is inherently a pathological condition.Factors responsible for crime.The most basic question that comes to mind when discussing the criminology or pathological aspects of crime would be the one that points to the grass root level of it all. Why does crime exist?What leads lot to participate in such ethically and morally wrong deeds, and go about abusing the very values they grew up with?Psychological conditions. surroundingsSocial disorganizationLack of educationLack of a strong support systemsocial change/ Evolution- Regression.Negative liberalizationEconomic Fluctuations detachment of religious, marriage and family institutionsNo conformity towards social norms, morals.Changing status of certain sects of societyDissociative social regalees and conflictsLack of empathy and personal ethics. Effect of mass mediaThe aforementioned(prenominal) reasons are some of the main factors for the reason crime exists. Tackling the growing phenomenon of crime can only be done by first taking treat of the economic, social and psychological issues related to cause spikes in crime.We have to understand that the majority of socialization processes are completed by the family, in the primary stage. If the process of sociality is done right, with the family stressing on the inculcation of the right values, norms, culture and liberal thinking, the base for a healthy society can be accomplished.For this, it is essential for families to be crocked knit and functional. The environment given to the children has to project safety. When there is an absence of a healthy environment and a family system, it has been statistically proven that the re is an increase in the risk for delinquency. roughly crimes can be averted when the simple differentiation between rights and wrongs, and human empathy are clarified and made extremely clear.When there is a idolise of a higher authority which projects absolute morals and strict punishment for those who break this code of morality, there is a reduction in the occurrence of crime. Thus, religion, though borderline irrational, plays an important role in curbing crime when interpreted the right way.Trends In CrimeAge and crimeCrime rate for the most part declines with progress in age. Most offenders caught come under the age bracket of 16-25. Experts say the age-crime curve probably reflects decreasing parental visualizes, a peaking of peer work out in the teenage years, and then increasing family and community controls with age. Sex and crimeOf all the demographic variables present, gender seems to be the most muddled.Most offenses are predominantly done by males, save those of flesh trade. More than 83% of todays heinous crimes are committed by males. But the fairer sex seems to be proclaiming equality in this field, too.A lot of petty crimes, traffic violations and other minor crimes are slowly becoming the female domain of crime.Attached next is a graph, to exemplify both.arrests_by_age_sex.jpgSocial class and crimeA vast majority of those arrested or labeled as a criminal belong to the lower strata of society.Though some scholars say that the official data shows this only because those belonging to the higher classes can usually get away with crime by bribing or gaining favors from the authority figures, there has been a rise in white collar crimes and the like, which may soon even out the curve.Minority groups/ Race / Regionality and crime.People belonging to the minority groups and less dominant races or those who belong to other regions (those who migrate in search of better living conditions, work etc) usually belong to the poorer sections of soc iety.This, coupled with the fact that the adults in the family are too busy eking out a living to take care of the education and moral well being of their wards ,could have a direct effect on the fact that a lot of miscreants and criminal offenders belong these backgrounds.Also, there is an underlying contempt towards the privileged lot because racial profiling and difference is rampant. This in turn creates conflict between the two groups and might provoke the poorer sections to target the privileged lot.These various trends in crime help us understand the societal approach to it and the group consensus. Targeted treatment can be done.Typology of CrimeCriminal typologies are ways to try and classify types of crime and criminals.It can be based on various criteria like Type of offence committed.Reaction of society towards said crime.What the law and legislatures state.Criminal career of the offender etc.There have been many attempts made to classify criminals under one binding syst em but no such efforts have paid off till date.For example, Schafers LIFE TREND typology of criminals (1982)is as follows-Occasional criminalsProfessional criminalsAbnormal criminalsHabitual criminalsConvictional criminalsThough seemingly comprehensive enough, this typology was rejected, just like many before because it did not completely classify every criminal type.The very science of typology has been under heavy criticism becauseSpecific offenses vary with time and place.some offenders participate in more than one type of crimeMost offenses are usually inter linked and cannot be over simplified by trying to make them seem more distinct than they are.No single typology is useful to group all offenders.But the typology of Criminal behavior systems is still widely taken into consideration.It is as follows-Violent personal crimeoccasional property crimeoccupational crimecorporate crimepolitical crimepublic order crimeconventional crimeorganized crimeProfessional crimeThis kind of ty pology is done on the basis of behavior and type of crime committed, for making the legislative and judiciary process easier, by simplifying the classification.Figure3.1 Use of Typologies in CJS-Final.jpgSome of the most jarring and convoluted crimes ever recorded in History occurred sometime over the past century.Gruesome murders, violent rape and assault charges, extortion, art crimes and media copy cat crimes have been the rage.THE TATE-LABIANCA MURDERS, 1969 THE LANA TURNER AFFAIR, 1958 THE BRINKS JOB, 1950 THE BLACK DAHLIA, 1947 THE MONA LISA, 1911THE LINDBERGH KIDNAPPING THELufthansa heist etc are all globally famous crimes that literally shocked people. To know that fellow humans were capable of such monstrosities wasnt a comforting thought. The recent jimmy saville case is also terrifying, in many ways.But there has been a steady decline in violent crime, globally. Though experts are baffled for the reason behind this, a lot of criminologists think it has something to do with growing awareness and simple precautionary methods being cultivated in day to day life.There is actually research to support this claim. Apparently more than 40% of crimes in a society are the product of easy opportunity.In india, a sizeable number of crime results from the easy opportunity and due to lack of effective thinking on crime prevention.LEGISLATURES AND ACTS IN INDIA , RELATING TO CRIME.THE CHILD MARRIAGE RESTRAINT ACT, 1929By this act, people in a higher place 21 who wish to marry a person below 18 or those who aid and solemnize this marriage are liable for punishment . (Imprisonment for more than 3 months and fine).The Protection Of Women From Domestic Violence Act, 2005The Dowry Prohibition Act, 1961The Juvenile Justice Act, 2000Under this act, juvenile offenders (those under 18 years of age) are rehabilitated and protected. renewal in the main criteria.Prevention Of Terrorism Act 2002Though there are a myriad of such laws, legislations, acts being passed freque ntly, there is still a gaping bridge between them being recognized and being implemented efficiently.Laws made for the welfare of the people or certain sections of the society are passing misused or taken advantage of by people with dishonest intentions, olibanum making it unapproachable for those in real need of it.A discernible EXAMPLE.Upliftment and protection of women has always been on the agenda for our law makers.There have been copious changes in existing legislations and acts being passed in various sections for the same.Art 15(A) (e) To empty practices derogatory to women or their dignity.304 B IPC Dowry harassment and death.312-318 IPC Causing miscarriage and abortion without consent.359-374 IPC Kidnapping ad abduction375-376 (D) IPC Sexual offences497 IPC Adultery494 IPC Bigamy453 IPC Cohabitation by manipulation / hypocrisyThe prevention of sati act 1829Hindu widow remarriage act 1856Immoral traffic prevention act 1956These are very few of the exhaustive lis t available. But we do not see most of these laws reaching their desired objective.Preventive Measures, Punishments.The problem of crime is a socially constructed problem. Its about socio economic status and criminal victimization, in most cases.Richer households are more likely to be victims of some crimes , such as crimes against property, trespass etc.Poorer households are more likely to be victims of serious intrusive crime such as burglary, mugging and domestic violence.Statistics also confirm that minority ethnic groups are also victimized more than regular people.Same goes for young people, whose chances of being physically molested, mobbed, assaulted etc decrease with increase in age.By understanding these demographics and applying the theory of crime of opportunity, there is a concept of Situational Crime prevention.What is situational crime prevention?Making changes to buildings and streets to make them saferAsking the police for helpUsing common sense to stop criminalsUsi ng neighbors to look out for crimeWorking with people from different agenciesBy being practical, smart, resourceful and keeping a vigilant eye on our surroundings, this theory claims to be able to reduce upto 50% of the crimes.(http//crimeprevention.rutgers.edu/topics/SCP%20theory/theory.htm)Youth and crime Four million people use illicit doses each year, of which about 56% are aged 16-24.Most offenders who use drugs commit crimes to finance their drug use. Police crackdowns on dealers and users have had no impact on drug availability or levels of crime.Hence, appropriate drug treatment, psychological help and efficient rehabilitation programs must be made available.PUNISHMENT- History.The concept of crime and penalties and jurisdiction evolved as society civilized over centuries.They were sooner considered to be private affairs. The offended party had to seek compensation or private revenge. Later, offenses were only against the king and later yet, the subjects.When compensation developed, fines were levied on behalf of the king (state), thus making the state the wronged party, such(prenominal) like what it is today.The intentions behind imposing penalties to compensate the wronged parties, though honorable, does not serve its purpose. People cannot restore lost dignity, respect or honor by providing monetary compensation to the victims. Though it may help some of them start over in life. what about the wretched families of the wrong doer, who have to bequeath their possessions and requirements in life to pay for a mistake they didnt even make.And the very concept of imprisonment also does not really make much sense to a forward rational thinker.Paraphrasing one of them, There is a logical contradiction at the heart of the idea (imprisonment) which is that, you are taking people away from society, away from the law-abiding world, and away from all the influences of people who keep the norm, and putting them in a place where they will only be motley with p eople who have broken the norm and then expecting that some good will come out of it. I think, the evidence accumulated over many years is that, what you create is a lawless society.Criminals /Delinquents should not be treated as evil.Psychoanalytic Theory The psychoanalytic theory, rather than seeking the causes in biologic processes or anomalies, attempts to look into the mind of the individual. According to Friedlander, classical Freudian psychoanalytic explanations of delinquency focus on abnormalities or disturbances in the individuals emotional teaching from primaeval childhood. The id is the unconscious seat of all irrational, antisocial and instinctual impulses, which must be controlled and shaped for successful adaptation to life within a society. This is done through the development of the ego, or the conscious and the rational part of the mind and through the superego, or the conscience, which serves as the moralizing part of the mind.The basic premise of his approach to crime is that, broken-down or criminal behaviour is, by itself, unimportant. It is only a symptom of the psychic conflict between the id, ego and the superego arising from abnormal maturation or control of instincts.The treatment and policy implications of psychoanalytic theory are direct and obvious. Criminals and delinquent offenders should be treated, not as evil but as sick persons, who can basically, not be held responsible for their actions in any rational or controllable sense. Therefore, punishment of offenders will remain largely ineffective and will only provoke more guilt and unhealthy psychological reactions. Kate Friedlander, 1947.Emile Durkheim.CONCLUSION

Industrial Development Bank of India (IDBA) Analysis

industrial Development bound of India (IDBA) outlineINTROUCTIONThe Industrial Development assert of India Limited, was constituted as wholly- avowed auxiliary of take for brim of India. The foundation of bevel was pose down at a lower place an suffice of Parliament, in July 1964. The main aim behind the setting up of IDBI was to put up source and other facilities for the Indian manufacturing, which was s cashbox in the initial stages of festering and knowledge. In February 1976, the ownership of IDBI was transferred to political relation of India.After the transfer of its ownership, IDBI became the main institution, through with(predicate) and through which the institutes employed in financing, promoting and developing industry were to be coordinated. In January 1992, IDBI accessed domestic retail debt market for the first time, with innovative Deep Discount Bonds, and registered path-breaking success. The following year, it set up the IDBI Capital Market Service s Ltd., as its wholly-owned subsidiary, to put out a broad range of fiscal services, including Bond Trading, Equity Broking, Client Asset trouble and depository Services.In September 1994, in response to RBIs form _or_ system of presidential term of opening up domestic banking field to orphic offendicipation, IDBI set up IDBI lingo Ltd., in standoff with SIDBI. In July 1995, familiar issue of the bank was taken out, after which the G everywherenments sh areholding came down (though it still retains major(ip)ity of the shareholding in the bank). In September 2003, IDBI took over Tata Home pay Ltd, renamed IDBI Home pay Limited, thus diversifying its clientele populace and entering the arena of retail finance firmament.The year 2005 witnessed the merger of IDBI wedge with the Industrial Development Bank of India Ltd. The new-sprung(prenominal) entity continued to its development finance grapheme, tour providing an array of wholesale and retail banking products ( and does so till date). The following year, IDBI Bank acquired United Western Bank (which, at that time, had 230 branches spread over 47 districts, in 9 states). In the pecuniary year of 2008, IDBI Bank had a net income of Rs 9415.9 crores and thorough assets of Rs 120,601 crores.The PresentToday, IDBI Bank is counted amongst the leading public welkin banks of India, apart from claiming the property of organism the 4th largest bank, in over completely ratings. It is presently determineed as the tenth largest development bank in the domain, generally in terms of r apiece. This is because of its wide meshwork of 688 branches, 1139 ATMs and 457 pennyers. Apart from being involved in banking services, IDBI has set up institutions want The National Stock throw of India (NSE), The National Securities Depository Services Ltd. (NSDL) and the Stock attri thoe Corporation of India (SHCIL).Products ServicesPersonal BankingDepositsLoansPayments Tax Payments, Stamp Duty Payments, Ea sy Fill, Bill Payment, add-in to nonification Money Transfer, PayMate, On enclosure PaymentsMutual FundDemat report card initial public offeringInsurance FamilyCare, WeathsuranceCards Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-ATM Card, humankind Currency CardInstitutional BankingLockersIndia PostNRI ServicesPhone BankingSMS BankingAccount AlertsInternet BankingCorporate BankingProject FinanceInfra construction FinanceSyndication, Underwriting Advisory ServicesCarbon credit BusinessWorking CapitalCash Management ServicesTrade FinanceTax PaymentsDerivativesTechnology Upgradation Fund fascinate (TUFS)Film Financing Scheme trail Discounting BillsRehabilitation FinanceOthersSME FinanceAgri-business Products main Functions of IDBI-IDBI coordinates between confused monetary institutions who are passing involved in impart fiscal aid, promoting, and developing various industrial unitsIDBI is too engaged in a variety of promotional activities suc h(prenominal) as development programs for the fresh entrepreneurs, planning of consultancy services for two the lowly photographic plate enterprises and the medium sized industrial unitsIDBI works for the advancement of engineering science and other welfare schemes to ensure economic development.Industrial Development Bank of India acts as a catalyst in various industrial development programs.IDBI provides financial tending to all kinds of industrial units which comes down the stairs the provisions of the IDBI Act.IDBI has served various industrial sectors in India for about cardinal days and has heavy(a) leaps and bounds in its size and operating units.IDBIs role as a catalystIDBIs role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown full-bloodedly in terms of size of trading operations and portfolio.Developmental Activities of IDBIPromotional activitiesIn fulfillment of its developmental role, the Bank continues to fulfill a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged. These include entrepreneurship development, self-employment and plight employment in the industrial sector for the weaker sections of parliamentary law through voluntary agencies, swan to Science and Technology Entrepreneurs Parks, muscularity Conservation, Common Quality Testing Centres for small industries.Technical Consultancy OrganizationsWith a view to making obtainable at a reasonable cost, consultancy and advisory services to entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaborationism with other All-India Financial Institutions, has set up a vane of Technical Consultancy Organizations (TCOs) covering the entire country. TCOs offer diversified services to small and medium enterprises in the selection, formulation and appraisal of take tos, their implementation and review.Entrepreneurship Development set upRealising that entrepreneurship development is the key to industrial development, IDBI play a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. It has also established similar institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support to various organisations in conducting studies or surveys of relevance to industrial development.IDBI impart Process, Institutional Structure, Training, Information and information NeedsIDBI was established in 1964 under an Act of Parliament for providing credit and other facilities for the development of industry. It also acts as the principal financial institution for organise the activities of institutions engaged in the finance, promotion, or development of industry. The Government of Indias shareholding in IDBI amounts to 72% and the rest of the shares are owned by the worldwide public.IDBI has also offered particularised schemes for brawniness conservation viz. Equipment Finance for Energy Conservation and Energy Audit Subsidy Scheme. Presently, IDBI provides rupee and outside(prenominal) currency term loans for the acquisition and installation of zip conservation equipment, and for pollution control and prevention projects in highly polluting industrial sectors, funded inter alia, out of World Banks Industrial Pollution Prevention Project (IPPP) or the US Agency for International Development-funded Greenhouse Gas Pollution Prevention (GEP) Project. Besides, finance is made purchasable for EE/EM out of the on-going Industrial Energy Efficiency Project of the ADB of which the TA forms a part. Under this project, finance is given to industrial units in rupee as head as in immaterial currency. Additional funding needs left unmet by the ADB gold are supplemented by IDBIs own funds as well.3.1 IDBI Institutional StructureIDBI is governed by a Board of Directors and its operation is carried out under the supervision of the Chairman and Managing Director assisted by quartet Executive Directors and one Adviser. With its head office in Mumbai, IDBI has 43 additional offices throughout India. As of November 1998, IDBI was buildingd into 33 departments, which are organized into five groups to advance proper distri exception of responsibility. Among these departments, the ones relevant to the efficient alter for ee/em activities are briefly described below.3.1.1 Project appraisal departmentThe Project estimate Department ( stamp pad) appraises all the industrial project proposals. PAD projects constitute the majority of projects approve by IDBI in terms of value. Besides a number of smaller projects are funded at the branch take aim.3.1.2 Corporate finance departmentsThe three Corporate Finance Departments (CFDs) follow up on the projects that grow already been sanctioned, in ordinate to ensure their timely implementation and proper role of funds. In addition, a new concept of a Relationship Manager was instituted deep down the CFDs. These managers take hold of out be dedicated to manage IDBIs interactions with a major industrial (ownership) group, such as Reliance Industries, the Tata Group, etc.While the relationship manager system works well from the perspective of consolidating knowledge about an industry group, it may non work as well where the cogitate has to be on an aspect of technology within an industry sector. For example, a relationship manager cannot be expected to be an expert on button efficiency in every industry sector that forms a part of the industry group being dealt with by him/her. Hence, in club to develop or so expertise in some of the ind ustries, which are not necessarily dominated only by a a couple of(prenominal) major industry groups, industry-sector-wise approach is also adopted. Thus the organization of a CFD is a workable mix of industry group and industry sub-sector, with the expertise of one Dealing group drawn upon by another.3.1.3 Forex services and treasury departmentsThe Treasury and Funding family contracts, decides on utilization and monitors all lines of credit from multi-lateral institutions like the World Bank (WB) and the Asian Development Bank (ADB). It manages the various change loans and grants for energy and environmental technology projects, including this TA project.Organizational StructureIDBIs organization structure is driven by its business objectives of offering the best services to the major industry groups. At the said(prenominal) time it is so organised to cede industry specialists in spell outant industrial sub-sectors as well. The organisational structure is geared to provide t he best products and services in the present competitive environment musical composition at the same time attempting to meet its developmental role governed by issue-based lending.Following financial sector liberalisation, the environment has turned highly competitive compelling IDBI to organise itself in a manner to prioritise the objective of offering the bestservices to the major industry groups over focus exclusively for energy efficiency and environmental activities. there is a need to create a home or pennyer for energy and environmental proficient activities. This center needs to be located at the highest level within IDBI in order to ensure visibility, and to provide a resource base, which could be accessed by all the concerned departments described higher up.IEEP and other such lines of credit are being managed by the FSD, which is not checkly engaged in either project appraisal or in implementation. Hence its role is one of being a facilitator and co-ordinator for gi ving the needed focus to the ee/em activities. It is quite workable for this Section to be upgraded to be the home suggested above with appropriate technological staff for policy making, facilitation of the lines of credit, developmental activities, etc. in ee/em issues. This go out help clarify the varied roles of CFD and FSD and avoid extra of effort, better coordination and communication between the FSD and the CFD.A system of built-in incentives for co-operation and co-ordination between the concerned departments will also aid the organisation in playing a more(prenominal) effective role in ee/em activitiesrelating to policy formulation, loan approvals and subsequent disbursement.3.3 IDBI Lending ProcedureThe current procedure for lending at IDBI includes (1) an inquiry stage, (2) an application stage, (3) site visits, (4) preparation of an appraisal note, (5) an evaluation by IDBI committee, (6) the issuance of a earn of Intent, and (7) preparation of a legal agreement fo r lending for suitable projects.IDBI also operates special credit lines for the mitigation of pollution, implementation of the Montreal Protocol commitments, modernization and enlargement of energy intensive industry, etc. The technical norms for these lines were determined individually, but the lending procedure is the same as that for other IDBI projects.The lending procedure followed by IDBI is comprehensive, based on accepted methods of evaluation and collective wisdom, and is transparent. The procedure, however, does not provide for a serious attempt to evaluate the energy and environmental components of any lending proposal. At each stage of the application for a loan, a familiarity is postulate to provide information on energy intake, along with that of other utility services. Energy consumption information is disaggregated into fuels and electricity categories. The company is not required to provide indicators of energy use to IDBI, which makes the information difficult to evaluate. Indicators could link the energy (fuel and electricity) consumption to physical drill levels and permit comparison with best practice in India and abroad. IDBI could also ask for additional information on technical indicators in the loan application that industries are required to complete.Conclusions and RecommendationsOur evaluation of IDBIs institutional structure, lending procedures, and pedagogy and information needs revealed that there is a clear need for greater focus towards ee/em activities, by strengthening the existing institutional structure and capability in this area. This strengthening can be accomplished through the creation and establishment of a resource center that will provide the inevitable technical backup for IDBI officers at all levels. The center resources will include access to technical experts, handbooks, and databases. The technical experts will assist in the organization of seminars, workshops, and provision programs.Role of Financial Institutions in industrial developmentTo accelerate the process of industrialization, immediately after in supposeence, Government of India took appropriate steps to create a network of financial institutions to fill the gaps in the issue of long-term finance to industry. IFCI was the first institution which was set-up in 1948 followed by SFCs established by different States/Union Territories under the SFCs Act.1951.The NIDC (1954), ICICI (1955), NSIC (1955), and RCI (1958) were established.IDBI was established in 1964 as the apex institution in the field of industrial finance. UTI was also established in the same year. LIC came into existence in 1956 and GIC in 1972. SIDCs/SIICs strengthened institutional set-up at regional level. IRCI was set-up in 1971 which was later renamed as IRBI. Reserve Bank has played an important role in creation of all these institutions. Thus, structure of financial institutions in India has become so greatly diversifiedand strengthened that it has the ability to supply finance to a variety of enterprises in divers(a) forms.In this , an attempt has been made to analyze the role of specialized financial institutions in meeting the term-requirements of our evolution industrial sector. For this end, an effort has been made to ascertain the tip and rapidity of financial tending granted by financial institutions to industrial sector in general and private sector in particular. Apart from analyzing purpose wise, industry wise and state wise service granted by financial institutions, special economic aid has been given to evaluate their role in remotion of regional imbalances through provision of finance to projects located in determine backward areas of the country. In order to make an in depth study, three financial institutions of diverse nature namely, IDBI, ICICI and SFCs have been chosen which together provided about two-third of the centre financial requirements of the industrial sector.During 1970-90 assistance sanction ed and disbursed by IDBI has increase at an yearly average ontogeny rate of 32.3 per cent and 27.7 per cent reckonively, which were higher than the growth rate of sanctions and disbursements of all financial institutions. IDBI has granted 37.4 per cent of its total assistance by way of direct assistance and remaining 62.6 per cent indirectly through other financial institutions. Loans were major form of direct assistance with 88.7 per cent share, while refinance of industrial loans with 59.5 per cent share was the major form of indirect assistance. common soldier sector has been the largest donee of IDBIs assistance followed by public, joint and cooperative sectors. IDBI has taken keen interest in granting finances to small scale sector which received 30 per cent of the total assistance sanctioned by IDBI. more than than half of its assistance has departed(a) to basic and large(p) goods industries while consumer goods and services have got a minute more than one-third of tota l assistance of IDBI. It has nonrecreational equal attention to new and existing projects in its financing operations. Though IDBIs assistance is spread over all State and Union Territories, but its substantial proportion is concentrated among few relatively create and large states. Similarly, a major part of its total assistance granted to projectslocated in identify backward areas, which formed about two-fifth of its total assistance, has gone to few developed and large states.In chapter five, the percentage of ICICI in meeting the financial requirements of the industrial sector has been analysed. During 1970-90 assistance sanctioned by ICICI increased at a rate of 26.5 per cent per annum while disbursements increased 23.1 per cent. In conformance with its objective, ICICI has sanctioned 35.7 per cent of its total assistance in the form of remote currency assistance. Rupee loans constituted 37.5 per cent of total assistance sanctioned by ICICI. More than four-fifth of its tot al assistance has gone to private sector. ICICI has granted greater part of its assistance (61.7 per cent) to existing projects for their expansion, modernisation, etc. while new projects accounted for 38.3 per cent of total assistance. More thantwo-third of ICICIs assistance has gone to non-traditional growth oriented industries like chemicals and chemical products, Iron and Steel, Machinery, etc. Assistance of ICICI is basically concentrated among few relatively developed states despite some decrease during eighties. Over the years, ICICI has been granting an increasing proportion of its total assistance to backward areas of the country, but its major part has gone to backward areas of few developedstates. Household sector has contributed an increasing share in the total financial resources of ICICI, while governments share has declined.SFCs which are state level development banks set-up for financing small and medium scale industries in their respective states. Till about 1970, operations of all SFCs grew at a slow tread but during seventies there was rapid growth in their operations and the pace has been sustained during eighties also. During 1970-90 sanctions of SFCs increased at a rate of 20.5 per cent per annum while disbursements increased by a marginally higher rate of 21.2 per cent. Performance of different SFCs has varied from one another and from year to year. In accordance with their basic objective, 76.1 per cent of total assistance sanctioned and 91.4 per cent of the total number of units assisted by SFCs were in the small scale sector.Services have been the largest beneficiary of SFCs assistance followed by chemicals and chemical products, nutrient products, textiles, etc. SFCs have, by and large, confined their assistance to new projects which accounted 84.4 per cent of total assistance. SFCs have granted more than half of their assistance to projects located in place backward areas of their respective states. An important feature is that SFCs of relatively backward states have performed better in this regard than that of developed states. However, SFCs depend heavily on government sources for their financial requirements.The aggregative role of all financial institutions in the industrial development of the country. It clearly reveals that industrial concerns in India depend more on financial institutions to finance their ventures than raising funds directly from the great market.Conclusions of this study have been given in the uttermost chapter. Major findings of this study are summarised belowDuring the experience twenty years assistance granted by financial institutions has increased at a significantly high rate leading industrial concerns to depend more and more on them.In terms of growth rate of sanctions, IDBI and ICICI have outstripped the average growth rate of sanctions of all financial institutions, but SFCs have fallen behind this trend.The gap between assistance sanctioned and disbursed is more prono unced in gaffe of IDBI and ICICI but it is relatively narrower in case of SFCs.Private sector has been the largest beneficiary of assistance of financial institutions followed by public sector. Proportion of investiture-savings gap filled up by financial institutions has increased in private and public sector both during eighties.Financial institutions have provided assistance to new as well as existing projects. However, SFCs have confined their financing operations basically to new projects.IDBI and ICICI have granted major part of their assistance to basic and capital goods industries but SFCs have paid greater attention on consumer goods industries.Statewise break-up of assistance provided by financial institutions reveals considerable concentration among few developed and large states despite some reduction during eighties. North-Eastern states have been almost completely overleap by all financial institutions.A significant part of the total assistance granted by financial i nstitutions has gone to projects located in identified backward areas of the country, but its statewise distribution has helped to reduce intra-state disparities in industrial development and increased inter-state disparities between developed and backward states.Finally, IDBI and ICICI have generated a significant part of their resources from the household sector but SFCs are largely dependent upon the government sources.Role of Financial Institutions in Foreign coronation in IndiaFinancial Institutions plays a significant role in Foreign Investment in India. There are various financial institutions in India which undertake significant initiatives to ensure hostile investment inflows in the industrial units in India.The main role of the financial institutions in India in respect to foreign investments is to aid foreign investors in investment activities in India. The funds from overseas countries come in two forms Foreign direct Investments and Joint Ventures of the foreign compa nies with Indian companies.Foreign direct investments inflows are approved through automatic route or through government route. Those units that require government approval to get funds require the FIPB approval. Foreign Direct Investment through automatic route, on the other hand, does not require FIPB approval. All these allocation of financial assistance to various industrial units in India are channelise by the financial institutions set up in various parts of India. more or less of the leading financial institutions in India that play an important role in foreign investments in India are RBI, IDBI Bank, IFCI Bank, ICICI Limited and EXIM Bank.RBI in Foreign Investment-RBI works through automatic route and government route in allocating funds in various sectors of the Indian industry. Its mandatory for all the foreign investors to get approvals from RBI in order to carry out invest activities in the industrial units in India. FDI is allotted up to 100 percent under automatic r oute and it does not require approval from FIPB.IDBI in Foreign Investment-IDBI acts as a financial institution which allots financial assistance to the industrial sectors which are mainly involved in manufacture or processing of goods, mining, transport coevals and distribution of power both in private and public sectors. Industrial Development Bank of India (IDBI) has been a fully owned subsidiary bank of the Reserve Bank of India till February 1976 after which it was disconnected from RBI.ICICI Limited in Foreign Investment-ICICI Limited was set up in the year 1994 and ICICI Bank is a altogether owned subsidiary of ICICI Limited. ICICI Limited is known as one the best financial institutions in India as it offers a wide spectrum of services to its customers. ICICI bank offers a wide array of banking products and financial services to corporate and retail customers through various delivery channels, specialized subsidiaries and affiliated firms, venture capital units, non-life in surance sectors, and so on.EXIM Bank in Foreign Investment-EXIM Bank plays a pivotal role in providing financial assistance to encourage the export production in India. Direct financial assistance, Foreign investment finance, Term loaning options for export production and export development, Pre-shipping credit, Export bills rediscounting, and refinance to commercial banks are some of the services that EXIM Bank has specialized in.Role of IDBI in Foreign InvestmentThe role of IDBI in Foreign Investment is mainly to provide financial assistance on a consortium basis to various industrial units in India which are mainly involved in manufacturing or processing of goods, mining, transport times and distribution of power.Industrial Development Bank of India (IDBI) has been a fully owned subsidiary bank of the Reserve Bank of India till February 1976.It was then disconnected from RBI and was made an self-reliant corporation owned by the Government of India. IDBI is known to be the tenth largest bank in the world in terms of carrying out developmental activities. Some of the financial institutions set up by IDBI to carry out the activities are The National Stock commuting (NSE), The National Securities Depository Services Ltd. (NSDL), and Stock place Corporation of India (SHCIL).Role of IDBI in Foreign InvestmentIt manages various financial institutions working under IDBI bankProvides financial assistance to various industrial units in terms of developmentsIt also offers refinancing options including term loans to the suitable financial institutionsIt provides funding to the industrial units that are involved in manufacture or processing of goods, mining, transport generation and distribution of power both in private and public sectorsIt also provides finance to various projects, expansion of any project, diversifications, or even developing the projects which will exceed Rs. 30 million and it also provides funding to those projects which cost little than Rs. 30 million through indirect means as it offers refinancing to the main financial institutions such as SFC/Commercial Banks etcOBJECTIVES OF IDBIIDBI is the apex institution in the area of long term industrial finance. It was established under the IDBI Act 1964 as a wholly owned subsidiary of RBI and started functioning on July 01, 1964. Under Public Financial Institutions Laws (Amendment) Act 1976, it was delinked from RBI. IDBI is engaged in direct financing of the industrial activities as well as in re-finance and re-discounting of bills against finance made available by commercial banks under their various schemes.The objectives of this institution are to create a principal institution for long term finance, to coordinate the institutions working in this field for planned development of industrial sector, to provide technical and administrative support to the industries and to conduct research and development activities for the benefit of industrial sector.It raises funds by way of market acceptance by way of bonds and deposits, borrowing from Govt. and RBI, borrowing abroad in foreign currency and lines of credit.Its functions includedirect loans (rupee as well as foreign currency) to industrial undertakings as defined in the Act to finance their new projects, expansion, modernisation etc.soft loans for various purposes including modernisation and under equipment finance schemeunderwriting and direct subscription to shares/debentures of the industrial companies.sanction of foreign currency loans for import of equipment or capital goods.short term working capital loans to the corporates for meeting their working capital requirements.refinance to banks and other institutions against loans granted by them.Of late, with the reforms in the financial sector, IDBI has taken steps to re-shape its role from a development finance institution to a commercial institution. It has floated its own bank IDBI Bank as also a Mutual Fund.During the financial year 1999-2000 ID BIs total sanctions were Rs.28308 cr (19.2% increase), the total assets were Rs.72169 cr, net worth at Rs.9025 cr, capital adequacy ratio of 14.5%, DER 6.81 and PBT Rs.1027 cr (1301 cr previous years). To meet emerging challanges, it has been introducing new products, setting up Mergers Acquistions Divn, increasing fee based business such as corporate advisory services, credit syndication, debenture-trushtee ship etc., setting up of IT sector subsidiary-IDBI Intech Ltd, venture capital fund, joint ventures and transfer of not less than 51% of IDBIs share capital in SIDBI to PSBs as a result of SIDBI (Amendment) Act 2000 effective from 27.03.2000.IDBI scouting for buyouts, two banks on radarAfter acquiring United Western Bank three years ago, IDBI Bank is at it once again and has identified two domestic lenders as possible targets. Disclosing this, the public sector banks Chairman and Managing Director Yogesh Agarwal told reporters here like a shot that talks were on with the two b anks.He did not divulge the identities of the two banks.IDBIs move is in line with the central governments thinking favoring a consolidation in the Indian banking sector.IDBI does not need to raise funds for the acquisitions but may look at capital raising to finance its business growth. The bank has dropped its preliminary plan to sell its Pune-based home loan subsidiary, IDBI Home Finance (IHFL).Review of Progress (Operations)IDBI has given special attention to better regional development and groundbreaking and promotional activities. It has conducted surveys of backward regions. It has given special help to backwardIndustrial Development Bank of India (IDBA) AnalysisIndustrial Development Bank of India (IDBA) AnalysisINTROUCTIONThe Industrial Development Bank of India Limited, was established as wholly-owned subsidiary of Reserve Bank of India. The foundation of bank was laid down under an Act of Parliament, in July 1964. The main aim behind the setting up of IDBI was to provid e credit and other facilities for the Indian industry, which was still in the initial stages of growth and development. In February 1976, the ownership of IDBI was transferred to Government of India.After the transfer of its ownership, IDBI became the main institution, through which the institutes engaged in financing, promoting and developing industry were to be coordinated. In January 1992, IDBI accessed domestic retail debt market for the first time, with innovative Deep Discount Bonds, and registered path-breaking success. The following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned subsidiary, to offer a broad range of financial services, including Bond Trading, Equity Broking, Client Asset Management and Depository Services.In September 1994, in response to RBIs policy of opening up domestic banking sector to private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July 1995, public issue of the bank was taken out, after whic h the Governments shareholding came down (though it still retains majority of the shareholding in the bank). In September 2003, IDBI took over Tata Home Finance Ltd, renamed IDBI Home finance Limited, thus diversifying its business domain and entering the arena of retail finance sector.The year 2005 witnessed the merger of IDBI Bank with the Industrial Development Bank of India Ltd. The new entity continued to its development finance role, while providing an array of wholesale and retail banking products (and does so till date). The following year, IDBI Bank acquired United Western Bank (which, at that time, had 230 branches spread over 47 districts, in 9 states). In the financial year of 2008, IDBI Bank had a net income of Rs 9415.9 crores and total assets of Rs 120,601 crores.The PresentToday, IDBI Bank is counted amongst the leading public sector banks of India, apart from claiming the distinction of being the 4th largest bank, in overall ratings. It is presently regarded as the tenth largest development bank in the world, mainly in terms of reach. This is because of its wide network of 688 branches, 1139 ATMs and 457 centers. Apart from being involved in banking services, IDBI has set up institutions like The National Stock Exchange of India (NSE), The National Securities Depository Services Ltd. (NSDL) and the Stock Holding Corporation of India (SHCIL).Products ServicesPersonal BankingDepositsLoansPayments Tax Payments, Stamp Duty Payments, Easy Fill, Bill Payment, Card to Card Money Transfer, PayMate, Online PaymentsMutual FundDemat AccountIPOInsurance FamilyCare, WeathsuranceCards Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-ATM Card, World Currency CardInstitutional BankingLockersIndia PostNRI ServicesPhone BankingSMS BankingAccount AlertsInternet BankingCorporate BankingProject FinanceInfrastructure FinanceSyndication, Underwriting Advisory ServicesCarbon Credits BusinessWorking CapitalCash Management ServicesTrade Finan ceTax PaymentsDerivativesTechnology Upgradation Fund Scheme (TUFS)Film Financing SchemeDirect Discounting BillsRehabilitation FinanceOthersSME FinanceAgri-business ProductsMain Functions of IDBI-IDBI coordinates between various financial institutions who are highly involved in provide financial assistance, promoting, and developing various industrial unitsIDBI is also engaged in a variety of promotional activities such as development programs for the fresh entrepreneurs, planning of consultancy services for both the small scale enterprises and the medium sized industrial unitsIDBI works for the advancement of technology and other welfare schemes to ensure economic development.Industrial Development Bank of India acts as a catalyst in various industrial development programs.IDBI provides financial assistance to all kinds of industrial units which comes under the provisions of the IDBI Act.IDBI has served various industrial sectors in India for about three years and has grown leaps an d bounds in its size and operating units.IDBIs role as a catalystIDBIs role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown substantially in terms of size of operations and portfolio.Developmental Activities of IDBIPromotional activitiesIn fulfillment of its developmental role, the Bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged. These include entrepreneurship development, self-employment and wage employment in the industrial sector for the weaker sections of society through voluntary agencies, support to Science and Technology Entrepreneurs Park s, Energy Conservation, Common Quality Testing Centres for small industries.Technical Consultancy OrganizationsWith a view to making available at a reasonable cost, consultancy and advisory services to entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration with other All-India Financial Institutions, has set up a network of Technical Consultancy Organizations (TCOs) covering the entire country. TCOs offer diversified services to small and medium enterprises in the selection, formulation and appraisal of projects, their implementation and review.Entrepreneurship Development InstituteRealising that entrepreneurship development is the key to industrial development, IDBI played a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. It has also established similar institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support to various organisations i n conducting studies or surveys of relevance to industrial development.IDBI Lending Process, Institutional Structure, Training, Information and Data NeedsIDBI was established in 1964 under an Act of Parliament for providing credit and other facilities for the development of industry. It also acts as the principal financial institution for coordinating the activities of institutions engaged in the finance, promotion, or development of industry. The Government of Indias shareholding in IDBI amounts to 72% and the rest of the shares are owned by the general public.IDBI has also offered specialised schemes for energy conservation viz. Equipment Finance for Energy Conservation and Energy Audit Subsidy Scheme. Presently, IDBI provides rupee and foreign currency term loans for the acquisition and installation of energy conservation equipment, and for pollution control and prevention projects in highly polluting industrial sectors, funded inter alia, out of World Banks Industrial Pollution Prevention Project (IPPP) or the US Agency for International Development-funded Greenhouse Gas Pollution Prevention (GEP) Project. Besides, finance is made available for EE/EM out of the on-going Industrial Energy Efficiency Project of the ADB of which the TA forms a part. Under this project, finance is given to industrial units in rupee as well as in foreign currency. Additional funding needs left unmet by the ADB funds are supplemented by IDBIs own funds as well.3.1 IDBI Institutional StructureIDBI is governed by a Board of Directors and its operation is carried out under the supervision of the Chairman and Managing Director assisted by four Executive Directors and one Adviser. With its head office in Mumbai, IDBI has 43 additional offices throughout India. As of November 1998, IDBI was structured into 33 departments, which are organized into five groups to facilitate proper distribution of responsibility. Among these departments, the ones relevant to the efficient lending for ee/ em activities are briefly described below.3.1.1 Project appraisal departmentThe Project Appraisal Department (PAD) appraises all the industrial project proposals. PAD projects constitute the majority of projects sanctioned by IDBI in terms of value. Besides a number of smaller projects are funded at the branch level.3.1.2 Corporate finance departmentsThe three Corporate Finance Departments (CFDs) follow up on the projects that have already been sanctioned, in order to ensure their timely implementation and proper utilization of funds. In addition, a new concept of a Relationship Manager was instituted within the CFDs. These managers will be dedicated to manage IDBIs interactions with a major industrial (ownership) group, such as Reliance Industries, the Tata Group, etc.While the relationship manager system works well from the perspective of consolidating knowledge about an industry group, it may not work as well where the focus has to be on an aspect of technology within an industry sector. For example, a relationship manager cannot be expected to be an expert on energy efficiency in every industry sector that forms a part of the industry group being dealt with by him/her. Hence, in order to develop some expertise in some of the industries, which are not necessarily dominated only by a few major industry groups, industry-sector-wise approach is also adopted. Thus the organization of a CFD is a workable mix of industry group and industry sub-sector, with the expertise of one Dealing group drawn upon by another.3.1.3 Forex services and treasury departmentsThe Treasury and Funding Division contracts, decides on utilization and monitors all lines of credit from multi-lateral institutions like the World Bank (WB) and the Asian Development Bank (ADB). It manages the various specialized loans and grants for energy and environmental technology projects, including this TA project.Organizational StructureIDBIs organization structure is driven by its business objectives of offering the best services to the major industry groups. At the same time it is so organised to have industry specialists in important industrial sub-sectors as well. The organisational structure is geared to provide the best products and services in the present competitive environment while simultaneously attempting to meet its developmental role governed by issue-based lending.Following financial sector liberalisation, the environment has turned highly competitive compelling IDBI to organise itself in a manner to prioritise the objective of offering the bestservices to the major industry groups over focus exclusively for energy efficiency and environmental activities. There is a need to create a home or center for energy and environmental technical activities. This center needs to be located at the highest level within IDBI in order to ensure visibility, and to provide a resource base, which could be accessed by all the concerned departments described above.IEEP and other such lines of credit are being managed by the FSD, which is not directly engaged in either project appraisal or in implementation. Hence its role is one of being a facilitator and co-ordinator for giving the needed focus to the ee/em activities. It is quite possible for this Section to be upgraded to be the home suggested above with appropriate technical staff for policy making, facilitation of the lines of credit, developmental activities, etc. in ee/em issues. This will help clarify the varied roles of CFD and FSD and avoid duplication of effort, better coordination and communication between the FSD and the CFD.A system of built-in incentives for co-operation and co-ordination between the concerned departments will also aid the organisation in playing a more effective role in ee/em activitiesrelating to policy formulation, loan approvals and subsequent disbursement.3.3 IDBI Lending ProcedureThe current procedure for lending at IDBI includes (1) an inquiry stage, (2) an application stag e, (3) site visits, (4) preparation of an appraisal note, (5) an evaluation by IDBI committee, (6) the issuance of a Letter of Intent, and (7) preparation of a legal agreement for lending for suitable projects.IDBI also operates special credit lines for the mitigation of pollution, implementation of the Montreal Protocol commitments, modernization and expansion of energy intensive industry, etc. The technical norms for these lines were determined individually, but the lending procedure is the same as that for other IDBI projects.The lending procedure followed by IDBI is comprehensive, based on accepted methods of evaluation and collective wisdom, and is transparent. The procedure, however, does not provide for a serious attempt to evaluate the energy and environmental components of any lending proposal. At each stage of the application for a loan, a company is required to provide information on energy consumption, along with that of other utility services. Energy consumption informa tion is disaggregated into fuels and electricity categories. The company is not required to provide indicators of energy use to IDBI, which makes the information difficult to evaluate. Indicators could link the energy (fuel and electricity) consumption to physical activity levels and permit comparison with best practice in India and abroad. IDBI could also ask for additional information on technical indicators in the loan application that industries are required to complete.Conclusions and RecommendationsOur evaluation of IDBIs institutional structure, lending procedures, and training and information needs revealed that there is a clear need for greater focus towards ee/em activities, by strengthening the existing institutional structure and capability in this area. This strengthening can be accomplished through the creation and establishment of a resource center that will provide the necessary technical backup for IDBI officers at all levels. The center resources will include acces s to technical experts, handbooks, and databases. The technical experts will assist in the organization of seminars, workshops, and training programs.Role of Financial Institutions in industrial developmentTo accelerate the process of industrialization, immediately after independence, Government of India took appropriate steps to create a network of financial institutions to fill the gaps in the supply of long-term finance to industry. IFCI was the first institution which was set-up in 1948 followed by SFCs established by different States/Union Territories under the SFCs Act.1951.The NIDC (1954), ICICI (1955), NSIC (1955), and RCI (1958) were established.IDBI was established in 1964 as the apex institution in the field of industrial finance. UTI was also established in the same year. LIC came into existence in 1956 and GIC in 1972. SIDCs/SIICs strengthened institutional set-up at regional level. IRCI was set-up in 1971 which was later renamed as IRBI. Reserve Bank has played an impo rtant role in creation of all these institutions. Thus, structure of financial institutions in India has become so greatly diversifiedand strengthened that it has the ability to supply finance to a variety of enterprises in diverse forms.In this , an attempt has been made to analyze the role of specialized financial institutions in meeting the term-requirements of our growing industrial sector. For this purpose, an effort has been made to ascertain the extent and rapidity of financial assistance granted by financial institutions to industrial sector in general and private sector in particular. Apart from analyzing purpose wise, industry wise and state wise assistance granted by financial institutions, special attention has been given to evaluate their role in removal of regional imbalances through provision of finance to projects located in identified backward areas of the country. In order to make an in depth study, three financial institutions of diverse nature namely, IDBI, ICICI and SFCs have been chosen which together provided about two-third of the total financial requirements of the industrial sector.During 1970-90 assistance sanctioned and disbursed by IDBI has increased at an annual average growth rate of 32.3 per cent and 27.7 per cent respectively, which were higher than the growth rate of sanctions and disbursements of all financial institutions. IDBI has granted 37.4 per cent of its total assistance by way of direct assistance and remaining 62.6 per cent indirectly through other financial institutions. Loans were major form of direct assistance with 88.7 per cent share, while refinance of industrial loans with 59.5 per cent share was the major form of indirect assistance.Private sector has been the largest beneficiary of IDBIs assistance followed by public, joint and cooperative sectors. IDBI has taken keen interest in granting finances to small scale sector which received 30 per cent of the total assistance sanctioned by IDBI. More than half of i ts assistance has gone to basic and capital goods industries while consumer goods and services have got a little more than one-third of total assistance of IDBI. It has paid equal attention to new and existing projects in its financing operations. Though IDBIs assistance is spread over all State and Union Territories, but its substantial proportion is concentrated among few relatively developed and large states. Similarly, a major part of its total assistance granted to projectslocated in identified backward areas, which formed about two-fifth of its total assistance, has gone to few developed and large states.In chapter five, the contribution of ICICI in meeting the financial requirements of the industrial sector has been analysed. During 1970-90 assistance sanctioned by ICICI increased at a rate of 26.5 per cent per annum while disbursements increased 23.1 per cent. In accordance with its objective, ICICI has sanctioned 35.7 per cent of its total assistance in the form of foreign currency assistance. Rupee loans constituted 37.5 per cent of total assistance sanctioned by ICICI. More than four-fifth of its total assistance has gone to private sector. ICICI has granted greater part of its assistance (61.7 per cent) to existing projects for their expansion, modernisation, etc. while new projects accounted for 38.3 per cent of total assistance. More thantwo-third of ICICIs assistance has gone to non-traditional growth oriented industries like chemicals and chemical products, Iron and Steel, Machinery, etc. Assistance of ICICI is basically concentrated among few relatively developed states despite some reduction during eighties. Over the years, ICICI has been granting an increasing proportion of its total assistance to backward areas of the country, but its major part has gone to backward areas of few developedstates. Household sector has contributed an increasing share in the total financial resources of ICICI, while governments share has declined.SFCs which are state level development banks set-up for financing small and medium scale industries in their respective states. Till about 1970, operations of all SFCs grew at a slow pace but during seventies there was rapid growth in their operations and the pace has been sustained during eighties also. During 1970-90 sanctions of SFCs increased at a rate of 20.5 per cent per annum while disbursements increased by a marginally higher rate of 21.2 per cent. Performance of different SFCs has varied from one another and from year to year. In accordance with their basic objective, 76.1 per cent of total assistance sanctioned and 91.4 per cent of the total number of units assisted by SFCs were in the small scale sector.Services have been the largest beneficiary of SFCs assistance followed by chemicals and chemical products, food products, textiles, etc. SFCs have, by and large, confined their assistance to new projects which accounted 84.4 per cent of total assistance. SFCs have granted more than hal f of their assistance to projects located in identified backward areas of their respective states. An important feature is that SFCs of relatively backward states have performed better in this regard than that of developed states. However, SFCs depend heavily on government sources for their financial requirements.The aggregative role of all financial institutions in the industrial development of the country. It clearly reveals that industrial concerns in India depend more on financial institutions to finance their ventures than raising funds directly from the capital market.Conclusions of this study have been given in the last chapter. Major findings of this study are summarised belowDuring the last twenty years assistance granted by financial institutions has increased at a significantly high rate leading industrial concerns to depend more and more on them.In terms of growth rate of sanctions, IDBI and ICICI have outstripped the average growth rate of sanctions of all financial ins titutions, but SFCs have fallen behind this trend.The gap between assistance sanctioned and disbursed is more pronounced in case of IDBI and ICICI but it is relatively narrower in case of SFCs.Private sector has been the largest beneficiary of assistance of financial institutions followed by public sector. Proportion of investment-savings gap filled up by financial institutions has increased in private and public sector both during eighties.Financial institutions have provided assistance to new as well as existing projects. However, SFCs have confined their financing operations basically to new projects.IDBI and ICICI have granted major part of their assistance to basic and capital goods industries but SFCs have paid greater attention on consumer goods industries.Statewise break-up of assistance provided by financial institutions reveals considerable concentration among few developed and large states despite some reduction during eighties. North-Eastern states have been almost compl etely neglected by all financial institutions.A significant part of the total assistance granted by financial institutions has gone to projects located in identified backward areas of the country, but its statewise distribution has helped to reduce intra-state disparities in industrial development and increased inter-state disparities between developed and backward states.Finally, IDBI and ICICI have generated a significant part of their resources from the household sector but SFCs are largely dependent upon the government sources.Role of Financial Institutions in Foreign Investment in IndiaFinancial Institutions plays a significant role in Foreign Investment in India. There are various financial institutions in India which undertake significant initiatives to ensure foreign investment inflows in the industrial units in India.The main role of the financial institutions in India in respect to foreign investments is to aid foreign investors in investment activities in India. The funds from overseas countries come in two forms Foreign direct Investments and Joint Ventures of the foreign companies with Indian companies.Foreign direct investments inflows are approved through automatic route or through government route. Those units that require government approval to get funds require the FIPB approval. Foreign Direct Investment through automatic route, on the other hand, does not require FIPB approval. All these allocation of financial assistance to various industrial units in India are guided by the financial institutions set up in various parts of India. Some of the leading financial institutions in India that play an important role in foreign investments in India are RBI, IDBI Bank, IFCI Bank, ICICI Limited and EXIM Bank.RBI in Foreign Investment-RBI works through automatic route and government route in allocating funds in various sectors of the Indian industry. Its mandatory for all the foreign investors to get approvals from RBI in order to carry out invest ac tivities in the industrial units in India. FDI is allotted up to 100 percent under automatic route and it does not require approval from FIPB.IDBI in Foreign Investment-IDBI acts as a financial institution which allots financial assistance to the industrial sectors which are mainly involved in manufacture or processing of goods, mining, transport generation and distribution of power both in private and public sectors. Industrial Development Bank of India (IDBI) has been a fully owned subsidiary bank of the Reserve Bank of India till February 1976 after which it was disconnected from RBI.ICICI Limited in Foreign Investment-ICICI Limited was set up in the year 1994 and ICICI Bank is a entirely owned subsidiary of ICICI Limited. ICICI Limited is known as one the best financial institutions in India as it offers a wide spectrum of services to its customers. ICICI bank offers a wide array of banking products and financial services to corporate and retail customers through various deliver y channels, specialized subsidiaries and affiliated firms, venture capital units, non-life insurance sectors, and so on.EXIM Bank in Foreign Investment-EXIM Bank plays a pivotal role in providing financial assistance to encourage the export production in India. Direct financial assistance, Foreign investment finance, Term loaning options for export production and export development, Pre-shipping credit, Export bills rediscounting, and Refinance to commercial banks are some of the services that EXIM Bank has specialized in.Role of IDBI in Foreign InvestmentThe role of IDBI in Foreign Investment is mainly to provide financial assistance on a consortium basis to various industrial units in India which are mainly involved in manufacturing or processing of goods, mining, transport generation and distribution of power.Industrial Development Bank of India (IDBI) has been a fully owned subsidiary bank of the Reserve Bank of India till February 1976.It was then disconnected from RBI and was made an autonomous corporation owned by the Government of India. IDBI is known to be the tenth largest bank in the world in terms of carrying out developmental activities. Some of the financial institutions set up by IDBI to carry out the activities are The National Stock Exchange (NSE), The National Securities Depository Services Ltd. (NSDL), and Stock Holding Corporation of India (SHCIL).Role of IDBI in Foreign InvestmentIt manages various financial institutions working under IDBI bankProvides financial assistance to various industrial units in terms of developmentsIt also offers refinancing options including term loans to the suitable financial institutionsIt provides funding to the industrial units that are involved in manufacture or processing of goods, mining, transport generation and distribution of power both in private and public sectorsIt also provides finance to various projects, expansion of any project, diversifications, or even developing the projects which will exceed Rs. 30 million and it also provides funding to those projects which cost less than Rs. 30 million through indirect means as it offers refinancing to the main financial institutions such as SFC/Commercial Banks etcOBJECTIVES OF IDBIIDBI is the apex institution in the area of long term industrial finance. It was established under the IDBI Act 1964 as a wholly owned subsidiary of RBI and started functioning on July 01, 1964. Under Public Financial Institutions Laws (Amendment) Act 1976, it was delinked from RBI. IDBI is engaged in direct financing of the industrial activities as well as in re-finance and re-discounting of bills against finance made available by commercial banks under their various schemes.The objectives of this institution are to create a principal institution for long term finance, to coordinate the institutions working in this field for planned development of industrial sector, to provide technical and administrative support to the industries and to conduct research and development activities for the benefit of industrial sector.It raises funds by way of market borrowing by way of bonds and deposits, borrowing from Govt. and RBI, borrowing abroad in foreign currency and lines of credit.Its functions includedirect loans (rupee as well as foreign currency) to industrial undertakings as defined in the Act to finance their new projects, expansion, modernisation etc.soft loans for various purposes including modernisation and under equipment finance schemeunderwriting and direct subscription to shares/debentures of the industrial companies.sanction of foreign currency loans for import of equipment or capital goods.short term working capital loans to the corporates for meeting their working capital requirements.refinance to banks and other institutions against loans granted by them.Of late, with the reforms in the financial sector, IDBI has taken steps to re-shape its role from a development finance institution to a commercial institution. It has flo ated its own bank IDBI Bank as also a Mutual Fund.During the financial year 1999-2000 IDBIs total sanctions were Rs.28308 cr (19.2% increase), the total assets were Rs.72169 cr, net worth at Rs.9025 cr, capital adequacy ratio of 14.5%, DER 6.81 and PBT Rs.1027 cr (1301 cr previous years). To meet emerging challanges, it has been introducing new products, setting up Mergers Acquistions Divn, increasing fee based business such as corporate advisory services, credit syndication, debenture-trushtee ship etc., setting up of IT sector subsidiary-IDBI Intech Ltd, venture capital fund, joint ventures and transfer of not less than 51% of IDBIs share capital in SIDBI to PSBs as a result of SIDBI (Amendment) Act 2000 effective from 27.03.2000.IDBI scouting for buyouts, two banks on radarAfter acquiring United Western Bank three years ago, IDBI Bank is at it once again and has identified two domestic lenders as possible targets. Disclosing this, the public sector banks Chairman and Managing Di rector Yogesh Agarwal told reporters here today that talks were on with the two banks.He did not divulge the identities of the two banks.IDBIs move is in line with the central governments thinking favoring a consolidation in the Indian banking sector.IDBI does not need to raise funds for the acquisitions but may look at capital raising to finance its business growth. The bank has dropped its earlier plan to sell its Pune-based home loan subsidiary, IDBI Home Finance (IHFL).Review of Progress (Operations)IDBI has given special attention to better regional development and innovational and promotional activities. It has conducted surveys of backward regions. It has given special help to backward