(a) whether the Industrial Development Bank of India propose to set up a new venture
capital arm for investment in infotech sector;
(b) if so, the details thereof and the guidelines for disbursal of loan by new capital
arm; and
(c) the time by which it is likely to be constituted ?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL) :
(a) to (c) Yes, Sir. Industrial Development Bank of India (IDBI) has reported that the
Bank is in the process of setting up a dedicated Venture Capital Fund (VCF) for
infotech Sector. The modalities for setting up of dedicated VCF and the guidelines for
disbursements are being finalised However. in Ihe meantime IDBI continues to extend
assistance to infotech sector projects under its existing VCF Scheme. The proposed dedicated
VCF is expected to be operation-alised in three months.