The central government has launched Rs 10000 crore fund for the promotion of the country’s weakest but most urgent sector –electronics. Named as Electronic Development Fund (EDF), the money will provide risk capital to companies developing new technologies in electronics, non-electronics and information technology.
India’s electronics import is expected to reach200 billion by 225. At present the country is a major importer of electronics goods especially from East Asia.
Under the new scheme, government will provide Rs 2200 crore and the remaining fund will be procured from private entities.
Venture capital wing of Canara bank- Canbank Venture Capital Fund is the implementation agency for EDF. The Department of Electronics and Information Technology will be the anchor investor for the EDF.
Minister for IT Ravi Shankar Prasad said that the fund will also will be used to acquire foreign companies and technologies that have high tech capabilities in electronics.
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