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The government has announced a venture capital fund exclusively for the information technology industry.

This is an effort to further catalyse growth, especially in the small-scale sector.

Initially, the fund will be of Rs 1 billion. The Small Industries Development Bank of India has been asked to float a fully owned subsidiary trustee company to manage it.

T O D A Y

• Govt's venture cap fund • Aditi bets on e-service • MP unveils IT policy • Paging industry

Information and Broadcasting Minister Pramod Mahajan told reporters that the proposal was approved by the Cabinet Committee on Economic Affairs at its meeting chaired by Prime Minister Atal Bihari Vajpayee.

Mahajan said the aim of the fund is to provide startup capital to the entrepreneurs, especially software professionals, who do not have sufficient funds.

The software industry showed a growth of over 50 per cent until 1997-98. In the last financial year, it grew by 80 per cent. This is being credited to the special initiatives the government took for the IT industry over the last year.

The software industry grew to Rs 115 billion in 1998-99 from Rs 65 billion in the previous year.

The venture capital fund is expected to result in higher growth in the next few years, Mahajan promised.

Earlier:

• New Delhi is venture capital
  DoE is setting up a Rs 1 billion fund for the IT industry.

UNI

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