Government appoints CVCFL as implementing agency for Electronics Development Fund

NEW DELHI: The government has appointed CANBANK Venture Capital Fund Ltd (CVCFL) as the agency to implement the Electronics Development Fund (EDF).

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 in the area of electronics, nano-electronics and Information Technology (IT), an official statement said.

The EDF would take minority participation in seed funds, angel funds and venture funds dedicated in this area, it added.

The statement said 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.

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 requests for seeking participation by EDF must be made on or before March 31, 2017.

As part of the 'Digital India' programme, it is envisaged to develop the Electronics System Design and Manufacturing (ESDM) sector to achieve 'net zero imports' by 2020.

Setting up of 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.