Giving a major boost to impact investing & social entrepreneurship in India, the Cabinet has approved a proposal to set up the Rs 5,000 cr India Inclusive Innovation Fund to promote grass root innovations.
India’s Minister of State for Micro, Small & Medium Enterprises, K H Muniyappa said in a written reply to a question in the Lok Sabha yesterday
The India Inclusive Innovation Fund would back enterprises developing innovative solutions primarily for citizens who lie in the lower half of India’s economic pyramid, with limited physical and institutional access to basic services.
Earlier, we’d reported that the fund was nearing its first close with a total commitment of Rs 475 cr and a pipeline of over 300 potential investments. The proposed innovation fund is targeting a first close of Rs 500 cr with the government chipping in Rs 100 cr.
The fund which was proposed by the National Innovation Council was awaiting cabinet approval. The next step is to seek approval from the Securities and Exchanges Bureau of India (SEBI) to begin operations.
The council headed by the Prime Minister’s adviser Sam Pitroda, will focus on innovation that solves problems in Healthcare, Nutrition, Energy, Water, Livelihoods and other areas.