The Hindu Business Line : Tech board may take stake in three State Govt ventures

Kolkata, Nov 16 The Technology Development Board, a statutory organisation constituted under the Technology Development Board Act, 1995 may acquire an equity stake in three venture capital funds promoted by the state governments of Rajasthan, Gujarat and Maharashtra. TDB is likely to acquire 15-20 per cent stake in each of these funds.

“We may acquire 15-20 per cent stake in venture capital funds promoted by the Rajasthan, Gujarat and Maharashtra governments. The size of these funds is about Rs 50-100 crore. A final decision in this regard will be taken in the next six months,” Mr H Purushotham, Scientist “G”/Advisor, TDB told Business Line. He was speaking on the sidelines of a workshop on Venture Funding in Technology & Innovation organised jointly by the Confederation of Indian Industries and TDB.

TDB has already invested nearly Rs 130 crore in three venture capital funds including Rs 700 crore Ascent India Fund, Rs 115 crore UTI-ITUVS and Rs 150 crore APIDC Venture Capital Fund. Besides joining hands with venture capitalists to promote development and commercialisation of indigenous technology and adaptation of imported technology for wider application, TDB also uses other investment instruments including loan, grants and equity funding.

According to Mr Purushotham, nearly 68 per cent of TDB’s investments are in form of loans carrying interest at five per cent per annum. The company has so far funded 175 projects and has invested nearly Rs 800 crore. Nearly 30 per cent of TDB’s investment has been in healthcare and pharmaceutical sector followed by engineering, IT, road transport and others. On an average, the company invests nearly Rs 70-80 crore every year.

Among the States, nearly 31 per cent of TDB’s investment has been in Andhra Pradesh followed by Maharashtra and Karnataka. Only five per cent of the investment has been in West Bengal, which according to Mr Purushotham is due to lack of awareness about TDB in the State.

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