Published By : 03 Dec 2015 | Published By : QYRESEARCH
As a measure of providing a boost to the domestic electronics manufacturing sector of India, the Indian government has established a special fund of Rs 10,000 crore, known as the Electronics Development Fund.
One of the nation’s oldest VC funds that was set up by a public sector unit, Canbank Venture Capital Fund, is put in charge of the management aspect of the current corpus. The unit is to ensure that the fund is utilized in the precise form. The fund is founded by Canara Bank and has currently invested in more than 112 companies, while exiting from 90 companies.
Canbank will be allotted an initial sum of Rs 2,500 crore to begin the process. Once initiated, it will shortly grow into a larger resource pool in multiple government sectors.
As stated by the managing director of Canbank S. Thiruvadi, they had initially expected to obtain a much slower response as the funds had been allocated to target only the electronics sector. The response, however, has been rather positive. He also said that they will leave it to the fund to decide on investments, equity stakes, and other details.
The announced for the funding was made by the Department of Electronics and IT secretary, JS Deepak. He was a speaker during the Design in India initiative by Qualcomm. According to him, the Rs 10,000 crore corpus in the EDF will provide an umbrella for funds, or a “fund of funds” in which the VCs are additionally investing in niche fields of technology and electronics will receive substantial support for the promotion of innovative efforts.