The Department of Electronics & Information Technology (DeitY), an arm of the ministry of communication & information technology, has appointed CanBank Venture Capital Fund (CVCFL) as the fund manager to house and manage the R2,200-crore electronics development fund (EDF).
EDF as a ‘fund-of-fund’ will participate in ‘daughter funds’, which, in turn, will provide risk capital to companies developing new technologies in electronics, nano electronics & information technology. The move is part of the government’s Digital India initiative.
The EDF corpus of Rs 2,200 crore is to be committed in select daughter funds by March 31, 2017.
At the event, JS Deepak, secretary at DeitY, said the initiatives were aimed at promoting manufacturing in the electronics sector. Demand for electronics is estimated to be at $400 billion by 2020. The government is focused on reducing reliance on imports in this sector by promoting indigenous manufacturing.