SIDBI incubation centre at IIT-Kanpur

In collaboration with IIT-Kanpur (IIT-K), the Small Industries Development Bank of India (SIDBI) has kicked off the establishment of SIDBI incubation and innovation Centre for Small and Medium Industries at IIT-Kanpur, Shri Sanjay Dhande, Director, IIT-Kanpur, sees in this a process of confluence of the intellectual capital of IIT and the financial capital of the bank. 

Shri P.B. Nimbalkar, Chairman and Managing director, SIDBI said that this was a part of SIDBI’s wider plan to establish more such centres all over the country. Besides IIT-Kanpur, it is planning to establish a similar centre at BITS, Ranchi, during this year. 

SIDBI is contributing Rs.4.35 crore, of which Rs.2.3 crore is the corpus and the rest is for the building construction.  This may be located within the IIT-Kanpur campus, but the centre is open to all. 

Shri Dhande said it was their endeavour that IIT graduates would become entrepreneurs and job-givers, rather than job-takers. He said IIT had kept its focus on the emerging technology-driven start ups in informatics, mechatronics, intelligent devices and embedded systems, life sciences, nano technology, new materials, strategic electronics and e-services. 

National Venture Fund invests Rs.37 crore in 17 companies

The Rs.100 crore National Venture Fund for Software and Information Technology (NF-SIT), set up by the SIDBI, ministry of communications and information technology and the Industrial Development Bank of India (IDBI), has so far invested Rs.37 crore in 17 companies. 

“We have sanctioned Rs.37 crore, of which nearly Rs.23 crore has been disbursed”, said Rakesh Rewari, Chief Executive of SIDBI Venture Capital Limited, the asset management company of NFSIT.  NFSIT expects atleast 20 percent return from the investments. 

Nasdaq-type bourse vital

Shri P.B. Nimbalkar on 21.02.2002 mooted a proposal for a Nasdaq-type bourse for technology-oriented small companies to ensure a quick exit route and boost infusion of funds into the sector.   This alongwith other proposals, would be placed before the Task Force on SSIs, to be set up soon. 

Making a presentation at the Indiasoft 2002 international conference in New Delhi during the session on Venture Capital Availability and Funding of IT companies, Mr. Nimbalkar said there was urgent need for this as small companies funded by VCFs with capital less than Rs.10 crore find it difficult to list in bigger bourses like BSE and NSE.   He also stressed the need for tax exemptions on foreign investments made by VCFs. 

10 cr to fund infotech SMEs

Minister for communication and IT Shri Pramod Mahajan in February 2002 announced a Rs.10 crore corpus fund for IT companies in the SME segment to explore virgin markets like the Far East and Latin America.   Giving the veledictory address at the two-day Indiasoft 2002 he called upon the industry to work harder and increase share in the global market, through a strategy of developing alternative markets. The SME sector had been performing well over the past year and the number of SMEs had shot up from 1,700 to 2,433. He urged the industry to come up with a roadmap to face competition from other countries in the region.

Roadmap to boost IT SSIs

With knowledge-based industries expected to contribute 7.5 percent of the GDP by 2008, the ministry of small scale industry is to set up a taskforce to chart out a roadmap for the same as 90 percent of the companies are SSIs. 

SSI Minister, Smt. Vasundhara Raje today said the taskforce with a broad representation would chart out a roadmap to develop the sector over the next 5-10 years. It would comprise ministry officials, representatives from the sector and even banks.