ANNOUNCEMENT 06 Jan 2015
A policy for a Fund of Funds was announced to support projects in the electronics sector.
NUMBER OF INTERVENTIONS
Notification of the Ministry of Electronics and Information Technology - 6 January 2015
Government approves electronics development fund of Rs 6,831 crore - Economic Times - 10 February 2017
'22 Funds Selected And Approved Under Electronic Development Fund'
Businesswold - 28 April 2017
On 6 February 2015, the Ministry of Communications and Information Technology issued a Notification setting up an Electronics Development Fund (EDF) policy. The EDF will be set up as a Fund of Funds.
The objective of the fund is to support Daughter Funds such as Early Stage Angel Funds and Venture Funds in the fields of Electronics Systems Design and Manufacturing (ESDM), Nano-Electronics and Information Technology. Through this, the government aims to develop domestic design capabilities and reduce import dependence in the electronics sector. The funds will support companies that are engaged in R&D, product development and innovation. Acquisition of foreign technologies and companies will also come under its purview.
Daughter funds eligible to get support from the EDF must be registered in India and aim to achieve the above objectives. This policy announcement does not state the corpus of the fund and only mentions that the fund will take a minority participation in the daughter fund. Further, the responsibility of managing the operations of the daughter funds will entirely rest on the manager of the daughter fund.
The Policy provides for setting up Daughter Funds with 100% funding through the EDF if the products are of strategic importance and there is not enough commercial interest in the same or if full government ownership is required for strategic reasons.
Daughter Funds can apply for approval under the EDF until 31 March 2017.
On 12 February 2016, through an official press release it was announced that the EDF will be launched on 15 February 2016.
On 10 February 2017, the IT Minister Ravi Shankar Prasad announced that the government has approved a seed capital of INR 681 crore (~USD 101.9 million*) to build a total corpus of INR 6800 crores under the EDF.
On 28 April 2017, in an interview published by the Businessworld magazine, the Joint Secretary of the Department of Electronics informed that 22 funds had been selected and approved under the EDF with the government funding approximately INR 1000 crore (~USD 149.63 million*) for a corpus of INR 10,000 crore.
* INR to USD conversion as on 10 February 2017 - INR 66.83/USD