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SIDBI expert panel sanctions Rs 1,112 cr to funds for startups

An expert committee set up by SIDBI has sanctioned Rs 300 crore to fund managers who would invest in startups, taking the total sanctions so far this fiscal to over Rs 1,100 crore, the government said today.

business Updated: Feb 27, 2017 12:08 IST
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startups,SIDBI,Mohandas Pai
An expert committee set up by SIDBI has sanctioned Rs 300 crore to startups in 2015-16, the government said.(Livemint)

An expert committee set up by SIDBI has sanctioned Rs 300 crore to fund managers who would invest in startups, taking the total sanctions so far this fiscal to over Rs 1,100 crore, the government said today.

During fiscal year 2014-15 and 2015-16 sanctions were made to 11 funds (Rs 314 crores) and 16 funds (Rs 607 crores) respectively while the number during the current financial year has already crossed Rs 1,112 croresto 30 funds.

In its 7thmeeting on the February 11, VCIC examined requests from 11 fund managers and cleared sanction requests from 9 Funds aggregating Rs 300 crores.

“It is evident that there is a significant upsurge in the fund of funds operations if seen from the number of funds supported by SIDBI during the current fiscal,” Commerce Ministry said in a statement.

To promote startups, the Cabinet had last yearapproved the setting up of a ‘Fund of Funds for Startups’ with a corpus of Rs 10,000 crore at SIDBI (Small Industries Development Bank).

This money will be released spread over the 14th and 15th finance commission cycles ending 2025 based on progress under the Scheme.

“An amount of Rs 500 crorehas been released so far to SIDBI which is managing theprogramme,” the Ministry said.

SIDBI as manager of these Funds has constituted a Venture Capital Investment Committee (VCIC) which includes external experts -- MohandasPai, Sanjeev Bikchandani, Saurabh Srivastava, H K Mittal, ProfVaidyanathan andKiranKarnik.

Out of the those cleared earlier by VCIC, SIDBI has so far accorded formal sanction, for an aggregate contribution of Rs 1619.25croreafter undertaking detailed appraisal and due diligence, the Ministry added.

First Published: Feb 27, 2017 12:07 IST