Odisha launches MSME Fund for small, medium unit development

To promote micro, small and medium industries in the state, the Odisha government has launched a Venture Capital Fund worth Rs 100 crore.
An MoU was signed yesterday for the purpose between Odisha government's MSME department and GVFL, Ahemedabad, in presence of Chief Secretary Gokul Chandra Pati here.
Pati said the 'Odisha MSME Fund' would provide marketing and infrastructural developmental support to MSMEs in Odisha. Registration work would complete within six months.
While Odisha government as sponsor of the Fund would invest around Rs 50 crore, balance Rs 50 crore would be raised from banks, insurance companies, financial institutions, Centre and others.

Under this platform, a new asset management company would be created to manage venture capital funds in the state.
This new Asset Management Company would be named as 'Odisha Alternate Asset Management Company' or any other suitable name and it would be a SEBI registered professionally managed company, Dash said.

The first such fund which would be created and managed by this company would be 'Odisha MSME Fund'. It will be a close-ended fund with a life of six years or so and the fund would invest in equities and equity linked instruments in sectors like IT/ITeS, Biotech, Clean Energy, Clean Tech, Healthcare, Education and others.

Normal ticket size of investment would be Rs 5-10 crore. However, smaller and bigger ticket size investment depending on the need would be considered, Patnaik.
GVFL would provide consulting services like formation of different companies, trust, SEBI registration, preparation of various legal documents, initial functioning of Asset Management company to Odisha Government through this MoU, he added.