The teething troubles for the much-publicised first ever venture capital fund promoted by industrial promotion agencies in Kerala, Kerala Venture Capital Fund, are hardly over even as one-and-a-half years have elapsed since the idea of setting up this fund was jointly mooted by Kerala State Industrial Development Corporation (KSIDC), Kerala Financial Corporation (KFC) and Small Industries Development Bank of India (Sidbi).Meanwhile, CEO of the venture V Krishnakumar, a professional who took charge in January, resigned a few months ago on personal grounds leaving for United States. Sources said that he was not quite happy with the progress of the venture fund with insufficient infrastructural support from the government.
Industry department sources said that so far no entrepreneur had been provided assistance although a number of applications were pending with the Fund. "Only two or three applications were processed, but no money has been disbursed so far," sources added.
A new CEO, Mr AO Joseph presently associated with Dalal Consultants Ltd in Chennai, is expected to assume charge here on Wednesday. An asset management company and a trust have been registered to undertake lending activities.
The future course of the maiden venture fund in the state is now in the hands of the CEO designate, they added. A non-cooperative bureaucracy, red tapism and insufficient infrastructure support from the government are cited as reasons for the Fund's failure to take off although many venture funds floated by industrial promotion agencies in other states have achieved reasonable success.
The Kerala Venture Capital Fund has contribution of Rs 5 crore each from KFC, KSIDC and Rs 10 crore from Sidbi. The proposal is to fund start-ups in information technology, biotechnology and high-technology sectors.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.