Question
Certain industrial units face difficulty in procuring finance from traditional sources because of the risk associated with them. Name such units. Specialised financial institutions were established to meet the long-term financial requirements of such enterprises on economic and social grounds. What values are conveyed by the government on establishing SFI?

Answer

Industrial units which face difficulty in procuring finance from traditional sources because of the risk associated with them are:
  1. small and medium sized concerns.
  2. new concerns set-up by new entrepreneurial group.
  3. specific industries, which require funds for modernisation.
  4. enterprises involved in innovation and new technological developments.
  5. enterprises requiring extra-ordinarily large amounts of finance with a longgestation period.
  6. ventures in backward regions.
Values conveyed by the Government by establishing specialised financial institutions are:
  1. promoting social and economic welfare.
  2. sensitivity towards the underprivileged sections of the society.

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