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Odisha appoints GVFL as advisor to Venture Capital Fund

It has now initiated steps to sign a MoU with GVFL to assist it in this endeavour

BS Reporter  |  Bhubaneswar 

The state government has appointed Gujarat Venture Finance Ltd (GVFL), one of the leading venture financing companies, as advisor to Odisha Venture Capital Ltd (OVCL).

The state government has mooted a Venture Capital Fund mainly to boost start ups in the MSME (micro, small & medium) sector. It has now initiated steps to sign a MoU with GVFL to assist it in this endeavour.

"The MSME department has been pleased to appoint GVFL as an advisor to OVCL and you are requested to kindly proceed with the issues relating to regulatory, legal aspects and other formalities for creation of the Venture Capital Fund. You may kindly consider to prepare draft MoU to be signed between GVFL and MSME department on behalf of the Odisha government at the earliest," F M Naik, additional secretary (MSME) wrote to managing director, GVFL.

GVFL ushered in the dawn of venture capital in India. Founded in 1990 at the initiative of World Bank, GVFL has supported ventures working on cutting edge technology as well as encouraged entrepreneurs with innovative ideas.

Over the past two decades, GVFL has spawned seven funds which have supported 81 companies.

Re affirming its focus on the MSME sector, the Odisha government has unveiled a Rs 1,600-crore investment plan aimed at creation of 32,000 new units in the MSME (micro, small & medium enterprises) sector in the 12th Plan period (2012-17).

In a bid to incentivise new industrial units in MSME sector, the state government in its revised Industrial Policy Resolution (IPR) has offered VAT (value added tax) reimbursement of up to 50 per cent. The VAT reimbursement will be valid for a period of five years from the date of starting commercial production and would be limited to 100 per cent of fixed capital investment.

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First Published: Mon, April 07 2014. 20:05 IST