The Small Industries Development Bank of India (SIDBI) will launch a Rs 500 crore venture capital fund with participation from commercial banks targeting at small- and medium-sized enterprises (SMEs) this month-end.
SIDBI chairman and managing director VK Chopra said that the fund, to be operational by this month-end, had commitment of Rs 200 crore and that several banks have given in principle approval to partner SIDBI in the fund.
"The intention of the venture capital fund will be to fund projects for the SMEs," he said.
Chopra said SIDBI and Punjab National Bank have each committed Rs 100 crore in the fund, while Bank of India had agreed to invest a similar amount. An existing venture fund had funded Rs 484 crore into SMEs for expansion of their different projects.
