Thursday, March 13, 2014: With the falling rupee, exports have been a capital waste since the same money can used to strengthen the domestic economy. Hence, the Indian government is setting up $1 billion venture capital fund to promote manufacturing of telecom equipment and devices.
According to a Hindu Business Line report, the fund plan is propagated by the National Manufacturing Competitiveness Council (NMCC). It will soon be sent to the prime minister for approval. Further, NMCC plans to join with veterans like Vinod Khosla, Sam Pitroda and Gururaj Deshpande for investment committee, who will focus on technology improvement.
As per this plan, the promoter of the company will have complete control of the management; however, the fund will uphold equity holding of above 51 per cent, to avoid any foreign body to gain control over it.
Earlier, GOI had even projected incentives for companies, who invested in electronics manufacturing in India. The incentives were given under the Modified Special Incentive Package (M-SIPS). After which it received proposals up to Rs 650 billion for manufacturing electronics in the country. Furthermore, GOI also set up Rs 300 billion amount to set up Electronic Manufacturing Clusters (EMCs), last year. As per DEITY’s official website, currently, there are 30 EMCs being set up in 13 states, in India.
