Govt to launch VC Fund for textile SMEs, start-ups soon

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Saurabh Gupta | 25 Sep, 2014
Minister of State for Textiles (I/C), Santosh Kumar Gangwar has informed that the textile Ministry shall be launching soon a Tex-Venture Capital Fund in association with Small Industries Development Bank of India (SIDBI) with an initial capital of Rs. 35 crores to provide support to textile start-ups and small and medium enterprises (SMEs).

"To provide equity to the startup entrepreneurs, we shall be launching a Tex-Venture Capital Fund in association with SIDBI. The fund shall be started with an initial capital of Rs. 35 crores and shall be up scaled up further," the minister said while addressing a conference of State Textiles Ministers, held in New Delhi on Wednesday.

The primary objective of the fund will be to make early and growth stage investments in small enterprises.

The minister was He has further informed that the need of skilled manpower for achievement of growth and urged the State Govts. to work with Govt. of India for inclusive growth of textile industry and prove our supremacy in textiles to the world.

The other initiatives of the Ministry are launching of e-commerce with M/s Flipkart India Private Ltd. for handloom products to strengthen the existing primary cooperative societies, Synergy of handloom, handicraft with tourism is being worked out in consultation with Ministry of Tourism, development of traditional handloom weavers/ handicraft artisans villages as "Adarsh Gram" etc.

Ministry has announced a new scheme to help the textile industry by providing environmentally friendly processing technology. The IPDS would set up new processing parks as well as support upgradation of existing processing clusters specifically in the area of water and waste water management.

Under the Scheme the Government of India will provide financial support up to 50 percent of the project cost with a maximum ceiling of Rs 75 cr in case of Zero Liquid Discharge (ZLD) units and Rs 10 crores in case of Common Effluent Treatment Plant (CETP).

State will provide 25 percent of the project cost. Remaining funds will be mobilized by the SPV.

During the opening remarks, Secretary (Textiles) S.K. Panda, while addressing the gathering, highlighted the importance of such meeting when 12th Plan Schemes are placed for mid-term appraisal and prepare revised plans to achieve targeted growth in textiles.

He has highlighted about the scheme of Integrated Textile Park of the Ministry of Textiles which aims at assisting small and medium enterprises in the textile industry to clusterize investments in textile parks with Central and state Government support for building world class infrastructure.