Gujarat govt likely to announce new MSME focused venture capital fund soon

Ahmedabad, DeshGujarat, 8 December 2014

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Gujarat Government is likely to announce a new MSME(Micro, Small & Medium Enterprise) focused venture capital fund to boost the highest employment providing sector after agriculture in state in the upcoming MSME industrial sector policy. It is likely to be announced in December end prior to the mega Vibrant Gujarat Global Investor Summit schedule in mid-January.

According to the sources close to the development the state government is planning to set aside more than Rs.750 crore dedicated venture capital fund for the MSME sector. The MSME fund will focus on funding new startups as well as existing units for their expansion plans. Priority sectors are likely to be engineering, pharma, automobiles, nano technology etc.,

The Gujarat Government is also reportedly planning a new Technology Acquisition Fund which will help the MSME sector in acquiring new foreign or Indian technology.

Present Rs.25 lakh Interest subsidy is also likely to be increased up to Rs.50 lakh. For MSME marketing has become the biggest challenge in the competitive market so the state Government may announce some incentives for marketing support also.

The Gujarat Industrial Development Corporation (GIDC) is also ready with a new policy for giving ready to use plots in vertical buildings in it’s estates as well as giving small reserve plots for new MSME projects.