A large industrial enterprise cans raise capital for financing modernisation and expansion from the following sources:

i. Industrial Finance Corporation of India- IFCI Ltd. was set up in 1948 as Industrial Finance Corporation of India, a Statutory Corporation, through The Industrial Finance Corporation of India Act, 1948’ of Parliament to provide medium and long term finance to industry. The primary business of IFCI is to provide medium to long term financial assistance to the manufacturing, services and infrastructure sectors.

ii. State Financial Corporation- State Finance Corporations (SFCs) are an integral part of institutional finance structure of a country. SEC promotes small and medium industries of the states and helps in ensuring balanced regional development, higher investment, more employment generation and broad ownership of various industries.

iii. Industrial Credit and Investment Corporation of India- Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 as a public limited company under Indian Company Act, for developing medium and small industries of the private sector. One of the important objectives of the ICICI is to provide loans to industrial projects in the private sector.

iv. Industrial Development Bank of India- Industrial Development Bank of India (IDBI) established under Industrial Development Bank of India Act, 1964, is the principal financial institution for providing credit and other facilities for developing industries and assisting development institutions. IDBI is the tenth largest bank in the world in terms of development. The National Stock Exchange (NSE), the National Securities Depository Services Ltd. (NSDL), Stock Holding Corporation of India (SHCIL) is some of the Institutions which have been built by IDBI.

v. State Industrial Developmental Corporations- State Industrial Development Corporations have been set up by the State Governments as companies wholly owned by them. SIDCs are not merely financing agencies, but are intended to act as instruments for accelerating the pace of industrialization in the respective States. Besides providing financial assistance to industrial concerns by way of loans, guarantees and underwriting of or direct subscriptions to shares and debentures, the SIDCs undertake various promotional activities such as conducting techno-economic surveys, project identification, preparation of feasibility studies, selection and training of entrepreneurs. They also promote joint sector projects in association with private promoters