The Telangana government has tied up with investment funds and others for a commitment of ₹60 crore for a ₹600-crore private equity fund it is planning to set up.
Small Industries Development Bank of India will manage the fund that is being established under public-private partnership.
The PE fund is part of the government’s plan to build a start-up friendly ecosystem in the State. In the first phase, the government plans to build a corpus of ₹100 crore.
“The State government has put in ₹20 crore, with other investors agreeing to contribute the remaining ₹40 crore. We are in talks with other PE funds and financial institutions for the remaining ₹40 crore for Phase-I. We are confident of reaching the target in the next few weeks,” Telangana IT Secretary Jayesh Ranjan told
State IT Minister Rama Rao said the government will not interfere in the day-to-day functioning of the PE fund.
The government will also set up a rural arm of T-Hub (Hyderabd-based technology incubator) at Nizamabad with the help of Deshpande Foundation’s Sandbox.