The country could see its first Dalit venture capital fund of Rs 500 crore by August.
Dalit entrepreneurs are in the process of getting clearances from the Securities and Exchange Board of India for setting up the fund.
The fund is being registered under a special purpose vehicle of the Pune-based Dalit Indian Chamber of Commerce & Industry (DICCI).
Mr Milind Kamble, Chairman of DICCI, told media persons on the sidelines of DICCI trade fair on Friday that the fund would be set with contributions from established Dalit businessmen and corporate houses.
Currently, DICCI is seeking subscription from Indian companies but in future, foreign companies would also be able participate, he said.
“Business houses like Tata Group, Thermax, Godrej, and Forbes Marshall are keen to help DICCI in setting up the fund. The fund will provide financial support to companies who have new and innovative ideas. A number of companies including a pipe manufacturing unit have approached DICCI for funds,” Mr Kamble said.
Also addressing the media, Mr Adi Godrej, Chairman of the Godrej Group, said that the business development achieved by Dalit entrepreneurs is very impressive; they have a good momentum and it should be further encouraged.
Development of venture capital funds will help the Dalit businessmen in the long run, he said.
On the issue of reservation for Dalits in the private sector, Mr Godrej said the job reservation is not the solution. The best option is to let free enterprise grow.
The corporate social responsibility programmes of business house should be used for the development of the Dalits. “It will help achieve much more development than job reservations,” he said.