NIC and Union Ministry of MSME launched India Inclusive Innovation Fund

India Inclusive Innovation Fund (IIIF) was launched by the National Innovation Council (NIC) and the Union Ministry of Micro, Small and Medium Enterprises (MSME) on 27 January 2014. IIIF seeks to combine innovation and the dynamism of enterprise to solve the problems of citizens at the base of the economic pyramid in India.

Main characteristics of the IIIF

• IIIF will help create a new class of capital or venture capital to set up and scale entrepreneurial skills and innovation in the firms delivering goods and service to the poorest of the country.
• The Fund will invest in innovative ventures that are scalable, sustainable and therefore profitable.
• It will address social needs of less privileged citizens in areas such as healthcare, food, nutrition, agriculture, education, skill development, energy, financial inclusion, water, and sanitation and employment generation.
• It will also partner the entire ecosystem in this space, including incubators, angel groups, and also public R&D programmes and laboratories to support the commercialisation and deployment of socially relevant innovative technologies and solutions.
• The Fund will be registered under SEBI’s Alternative Investment Fund Category I guidelines.
• The initial corpus of fund is 500 crore rupees with the Union Ministry of MSME committing 20 percent and rest would be given by banks, insurance companies, overseas financial and development institutions. The Fund’s eventual aim is to expand the corpus to 5000 crore rupees in next two years.

The Government will set up Asset Management Company (AMC) to take the responsibility of day to day operations of the fund. The AMC will build a mentoring network, incubation and provide training and skills development programmes to entrepreneurs and IIIF assisted companies.

A Governing Council comprising government nominees as well as eminent persons from the fields of public service, industry, finance and entrepreneurship will provide oversight and ensure the purpose of the fund is maintained.