The Electronics Development Fund (EDF) was launched by the Minister for Communications & Information Technology, Ravi Shankar Prasad, on the sidelines of the ongoing ‘Make In India Week’ in Mumbai.
The Indian Government has launched Rs 2,200 crore EDF as one of the key steps towards digital transformation of India.
Prasad on Monday launched the EDF to support early-stage, angel, venture and private equity funds focusing on electronics, nano-electronics and information technology.
The move is part of the EDF initiative launched by Prime Minister Narendra Modi during the inauguration of Digital India Week in July last year. The government has appointed Canbank Venture Capital Fund to house the Electronic Develop EDF as an initial corpus of Rs 2,200 crore. The EDF is set up as a ‘Fund of Funds’ to participate in ‘Daughter Funds’, which in turn will provide risk capital to companies developing new technologies.
These funds are aimed at providing risk capital to companies developing new technologies in the area of electronics, nano-electronics and Information Technology. The receivers of the funds will have to be registered and abiding by the relevant rules and regulations including the Securities and Exchange Board of India regulations on venture funds.
In addition, the government has also allocated funds in the form of letter of commitments ranging between Rs 10 crore and Rs 40 crore to Karnataka Information Technology Venture Capital Fund, Exfinity Venture Partners LLP, Forum Synergies and Endiya Partners. appointed Canbank Venture Capital Fund to house the EDF in 2015. The fund has an initial corpus of Rs 2,200 crore.