The National Innovation Council (NInC) on 20 November 2013 got approval of 75 percent of the 500 crore rupees initial corpus of the upcoming India Innovation Fund (IIIF), which is an Indian model of innovation.
IIIF will have contributions from Ministry of Finance, public sector banks (PSBs) and multilateral agencies and is being mobilized by NInC. The main objective of IIIF is to finance Enterprises focusing on the bottom of the pyramid that is, firms delivering goods and services to the poorest of the country. Multilateral agency, PSBs and financial institutions already gave commitment of 375 crore rupees and additional commitments to council, which mentioned in NInC annual “Report of the People 2013”. The launch date not yet decided though it is in its final stage of launching the fund.
Minimum 50 percent of advances from the fund would be to micro, small and medium enterprises (MSMEs) in the first close. The fund will not invest more than 15 percent of the corpus in any single company to ensure spread of investment. The fund intends to partner with public R&D programmes and laboratories to support the commercialization and deployment of socially relevant technologies and solutions.
The fund would be registered with Securities and Exchange of India (SEBI). A pipeline of the potential investment prospects has been identified. A specialised core team is also expected to be in place before the first closure. It is expected that the fund would be operational by the beginning of 2014. The fund may increase eventual size of 5000 crore rupees in the long term.
About National Innovation Council (NInC)
The National Innovation Council (NInC) was set up by the Prime Minister under chairmanship of Sam Pitroda, an adviser to PM on public information infrastructure and innovations (PIII).
NInC will provide mutually reinforcing policies, recommendations and methodologies to implement and boost innovation performance in the country.
The task of the National Innovation Council include formulating Roadmap for innovation for 2010-2020 and creating framework for evolving an Indian model of innovation, with focus on inclusive growth, encouraging central and state governments , universities and R&D institutions to innovate and to encourage the multi-displinary and globally competitive approaches for innovations and others.
The Council will also promote the setting up of State and Sector Innovation Councils to help implement strategies for innovation in Stated and Specified sectors.
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