The Venture Capital Fund Company created to help start ups in the state will now be run by department of Micro, Small and Medium Industries (MSME). Shivraj Singh Chouhan had announced the setting up of Venture Capital Fund in 2015. The government had said that the fund will help young entrepreneurs in their start ups.
About a year- and- a- half after chief minister's announcement, a company called MP Venture Capital Fund Limited was formed under the Directorate of Institutional Finance, which works under finance department. The move comes in the wake of performance by the venture capital fund company wherein no young entrepreneur or start up received help of this fund or company in past five years.
Considering the past experience, Shivraj government has finally handed over the company from finance department to MSME department, to provide venture capital to the youth. This company will now be run by MSME department. In this company, the MSME department will spend a total of Rs 7 crore.
For this, the government has also made a provision in his budget. Out of this amount, Rs 5 crore have been kept under investment head in the company. Now, the commissioner will take budget and administrative control from institutional finance and hand it over to MSME department. Officials will take help of experts on how to effectively run the company so that objectives of establishing the venture capital fund company can be achieved.
A provision of Rs 1 crore has been made in the general budget for maintenance and repair of industrial areas that fall under MSME department. This is a new head of expenditure and the department will make a plan for how this amount will be spent. Besides, a provision of Rs 91 crore has been made for development of infrastructure of MSME industries. This amount was Rs 70 crore last year. A total of 187 industrial units are functioning under MSME department in the state.