March 30, 2015
WB Govt to set up venture capital fund for MSMEs
West Bengal Government is setting up Rs 200 crore as venture capital fund for Micro, Small and Medium Enterprises (MSME) during the forthcoming fiscal year.
Bengal is number one in the MSME sector and this fund is being created to provide equity capital to start-ups with innovative business models or new products, services and technology. The key challenges the MSME start ups face is funding and with the creation of this fund, the Bengal Government wishes to address the issue. The enhanced equity base would now allow the small units to secure bank credit.
The Bengal Government is creating this fund in collaboration with Small Industries Development Bank of India (SIDBI).
The MSME section of the State Government has created an online platform through which business proposals shall be evaluated along with credit assessment and rating. It has tied up with the Indian Institute of Management, Calcutta (IIM-C) to conduct the assessments to assist with resources.