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Odisha Venture Finance Ltd (OVFL), an asset management company has been formed to manage the venture fund called 'Odisha MSME Fund'. The fund would have a contribution of Rs 50 crore from the Odisha government. While the Government of India is expected to pitch in Rs 50 crore, the balance Rs 50 crore is likely to be raised from banks.
The state government is set to make a Budgetary provision of Rs 50 crore for the fund in the Budget for 2015-16.
To facilitate registration of the fund with marker regulator Securities & Exchange Board of India (Sebi) required under Sebi (Alternative Investment Funds) Regulations 2013, the Odisha government will provide a token commitment of Rs five crore. This token amount will be disbursed by March 2015. The residual amount of Rs 45 crore is expected to be disbursed between April 2015 and March 2016. The fund is aimed at providing seed funding to start-ups in the MSME sector.
The state MSME department has already signed a memorandum of understanding (MoU) with Gujarat Venture Finance Ltd (GVFL), a Gujarat government undertaking with 24 years of experience in venture finance. GVFL has been roped in as the partner and consultant for creation of the fund. The onus will be on GVFL to take care of the regulatory, legal aspects and other formalities.
As per the MoU, the proposed authorized share capital of GVFL is Rs one crore.
GVFL has completed all the formalities and paperwork regarding the incorporation of OVFL. A bank account is required to be opened for OVFL. It has been decided to open the account with State Bank of India (SBI).
OVFL is being structured as a public limited company. The state government has nominated two directors in the board of the company- Panchanan Dash, secretary, state MSME department and Bibhuti Bhusan Behera, managing director, Odisha Small Industries Corporation (OSIC).
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