(63 OF 1951)
[31st October, 1951]
 An Act to provide for the establishment of State Financial Corporations. 
Be it enacted by Parliament as follows :-

Short title, extent and commencement.-

    This Act may be called the State Financial Corporations Act, 1951.
    It extends to the whole of India 2[***].
    It shall come into force in any State on such date3 as the Central Government may, 
    by notification in the Official Gazette, appoint.
    In this act unless the context otherwise requires,-
      (a) "Board" means the Board of directors of the Financial Corporation; 
      4[(aa) "Development Bank" means the Industrial Development Bank of India 
      established under the Industrial Development Bank of India Act, 1964 (18 of 164);] 
      5[(b) "Financial Corporation" means a financial Corporation established under 
      Section 3 and includes a Joint Financial Corporation established under section 3A;] 
      6[c) "Industrial concern" means any concern engaged or to be engaged in-
          (i) the manufacture, preservation or processing of goods; 
          7[(ii) mining or development of mines;]
          (iii) the hotel industry;
          (iv) the transport of passengers or goods by road or by water or by air 
          8[or by ropeway or by lift];
1.This Act has been extended to Dadra and Nagar Haveli  by Reg. 6 of 1963, sec. 2 and Sch 1; 
to Pondicherry by Reg. 7 of 1963, sec. 3 and Sch 1; to Goa, Daman and Diu by Reg. 11 of 1963, 
sec. 3 and Sch. and to the State of Sikkim on 24.10. 1975, vide Notification No. S.O. 615(e), dated 
23rd October, 1975.
2. The words "except the State of Jammu and Kashmir" omitted by Act 62 of 1956, sec. 2 and Sch. 
3. 1st August, 1952 (in the whole of India except the State of Jammu and Kashmir) see Notification 
No. S.R.O.., 1317, dated the 28th July, 1952, Gazette of India, 1952, Pt. II, Sec. 3, p.1163. 7th 
November, 1959 (in the State of Jammu and Kashmir), see Notification No. S.O. 2439, dated 
the 29th October, 1959, Gazette of India, 1959, Pt. II, Sec. 3(ii), p.3073.
4. Ins. by Act 77 of 1972, sec. 2.
5. Subs. by Act 56  of 1956, sec. 2, for the original clause (b).
6. Subs. by Act 77 of 1972, sec. 2, for former clause (c).
7. Subs. by Act 43 of 1985, sec. 2, for sub clause (ii).
8. Ins. by Act 43 of 1985, sec. 2.
(v)the generation or distribution of electricity or any other form of power;(vi)the maintenance, repair testing or servicing of machinery of any description or vehicles or vessels motor boats or trailers or tractors;(vii)assembling, repairing or packing any article with the aid of machinery or power;
1[(viii)the setting up or development of an industrial estate;]
(ix)fishing or providing shore facilities for fishing or maintenance Thereof;2[***]
(x)providing special or technical knowledge or other services for the promotion of industrial growth;
3[(xi)  providing weigh bridge facilities;
(xii)   the research and development of any process or product in relation to any of the matters aforesaid; or
4[Explanation 1.-The expression "processing of goods" includes any art or process 
for producing, preparing or making an article by subjecting any material to a manual, 
mechanical, chemical, electrical 
or any other like operation.]

3[Explanation 2.-If any doubt arises as to whether a concern is an industrial concern or not, 
the same shall be referred to the Development Bank for its decision and the decision of the 
Development Bank thereon shall be final;]

(d) "prescribed' means prescribed by rules or regulations made under this Act;
(e)"Reserve Bank" means the Reserve Bank of India constituted under the Reserve 
Bank of India Act. 1934 (2 of 1934);
(f) "scheduled bank" means a bank for the time being included in the Second Schedule 
to the Reserve Bank of India Act. 1934 (2 of 1934);
5[(ff) "State co-operation bank" shall have the meaning assigned to it in clause (f) 
of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934)
(fff) "State Government", in relation to a Union Territory, means the Admini-strator 
(g) "underwriting" means contract, with or without conditions, to subscribe for stock,
shares, bonds or debentures of an industrial concern with a view to the resale of the 
whole or any part thereof.
1. Subs. by Act 43 of 1985, sec. 2, for sub clause (viii).
2. The word "or" omitted by Act 43 of 1985, Sec. 2.
3. Ins. by Act 4. of 1985, sec. 2.
4. Explanation renumbered as Explanation 1 by Act 43 of 1985, sec. 2. 
5. Subs. by Act 6 of 1962, sec, 2. for clause (ff).