*Assistant Professor, Department of Economics, L.C.B. College, Guwahati, Assam, India
**Associate Professor, Department of Economics, Handique Girls‟ College, Guwahati, Assam, India
The functional role of two regional level development banks, namely Assam Financial Corporation (AFC) and North East Development Finance Corporation Limited (NEDFi) is studied presently in the light of the procedures of term financing and the impact cast by them in the process of industrialization of Assam. Here, a comparative study is undertaken of the functional role of AFC and NEDFi with that of other term financing institutions functioning in the state. In the light of the present discontinuation of development banking network, it is indeed justified to evaluate if AFC and NEDFi, two important development banks of Assam have any proactive role in the state. Accordingly, the present study attempts to examine whether AFC and NEDFi provide any procedural advantage in term loan financing for industrialization. The present study also attempts to analyze their impact upon industrialization in Assam. Significant ‘impact’ would indeed justify the continuation of such institutions. The functional role of AFC and NEDFi is studied for the five year period 2005–06 to 2009–10. However, the study finds that the two regional level development banks studied provides no procedural advantage in their term loan assistances. Also that, AFC and NEDFi fails to exercise any significant impact upon industrialization in the state.
AFC, NEDFi, Industrialization, Assam, term finance, development banks
