(a) whether the Small Industries Development Bank of India (SIDBI) proposes to set up a national level growth fund;
(b) if so, the facts thereof;
(c) the projects/sectors proposed to be financed by the funds;
(d) the targets fixed by SIDBI during each of the last two years till date and
achievements recorded during the said period; and
(e) the increase in funds proposed by SIDBI afterfinaiisation of the said fund?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM):
(a) and (b) Small Industries Development Bank of India (SIDBI) has setup a national
level venture capital fund known as SME Growth Fund (SGF) with an initial corpus of
Rs. 100 crores subsequently to be enhanced to Rs. 500 crores. The SGF is being managed by
SIDBI Venture Capital Limited.
(c) SGF is a general fund and shall make investments in units operating in growth sector
such as life sciences, retailing, light engineering, food processing, information
technology etc.
(d) SGF was formally launched in October, 2004. It has sanctioned investment in two
companies and is expected to pickup momentum in the coming months. The funds corpus
is likely to be fully committed in the next 4-5 years.
(e) After finalisation of SGF, the fund is proposed to be increased to Rs. 500 crores.