Canara Bank subsidiary-managed electronic development fund now operational

The Canbank Venture Capital Fund, a Bengaluru-based subsidiary of state-run lender Canara Bank, has been appointed as the implementation agency for housing the electronics development fund (EDF), an official statement said on Monday.

"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)," said a communication and information technology ministry statement.

"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," it added.

Additional Secretary, Communications and Information Technology, Ajay Kumar had earlier said that the cabinet had given approval for the EDF which was being set up to support venture capitalists to fund electronic manufacturing in general and LED in particular.

He said that "a financial institution is being identified through which the EDF disbursements would be made".

The EDF, which is estimated to be around Rs.10,000 crore and operational now, would take minority participation in seed funds, angel funds and venture funds dedicated to electronic manufacturing.

The EDF will support both Indian and foreign funds which are registered in India and comply with the Securities and Exchange Board of India (SEBI) and other regulations in this regard.