Government of India has decided to appoint M/s CANBANK Venture Capital Fund Ltd. (CVCFL) as the implementation agency which will house the Electronics Development Fund.
The Electronic Development Fund (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 in the area of electronics, nano-electronics and Information Technology (IT).
The EDF would take minority participation in Seed Funds, Angel Funds and Venture Funds dedicated in this area.
The EDF shall invite requests from professionally managed private/public funds for its participation. EDF participation in a fund may vary depending on the nature of the fund and risk involved.
EDF will support both Indian and foreign funds which are registered in India and comply with SEBI and other regulations in this regard.
As part of the “Digital India” agenda of the Government, it is envisaged to develop the Electronics System Design and Manufacturing (ESDM) sector to achieve “Net Zero Imports” by 2020.
Setting up of Electronic Development Fund (EDF) is one of the important strategies which would enable creating a vibrant ecosystem of innovation, research and development (R&D) and with active industry involvement.
It is with this objective that an Electronic Development Fund (EDF) is set up to provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and Information Technology (IT).
With appointment of CVCFL as the agency to implement EDF, the EDF is now operational and start receiving requests for participation from Seed Funds, Angel Funds and Daughter Funds.
The role of the Fund Manager of EDF is to consider requests from applicant Venture Funds, Angel Funds and Seed Funds and make recommendations to the Department of Electronics and IT, Government of India.
The CVCFL will also be participating in the individual beneficiary Daughter Funds based on the approval of the Department of Electronics and IT.