Special Correspondent

THIRUVANANTHAPURAM: Finance Minister T.M. Thomas Isaac on Friday said that he proposed to create a Rs. 100-crore venture capital fund to support the establishment of innovative small and medium industries.

Delivering his budget speech in the Assembly, Dr. Isaac said he had earmarked Rs. 10 crore for the proposed fund, to be known as Kerala Entrepreneurship Fund.

The fund will be open for subscription to KSFE and KSIDC and NRKs. This will facilitate commercialisation of new technologies developed by engineering colleges, universities and research institutions as well as nurturing of a new generation of entrepreneurs. Rs.10 crore is set apart as equity for the proposed fund. This fund will be professionally managed by a public sector bank.

In the background of the economic slowdown, a loan package of Rs.500 crore will be implemented through Kerala Financial Corporation (KFC) to support the small and medium industries.

The company will get Rs. 130 crore as equity from the government under the supplementary demand for grants for the year 2008-09.