SBICAP Ventures Ltd. (SVL), an Indian alternative asset manager, has signed a Memorandum of Understanding (MoU) with the Ministry of External Affairs (MEA) to create the Trilateral Development Cooperation Fund (TDC Fund) for joint projects with global partners.
- SVL is a wholly owned subsidiary of SBI Capital Markets Limited, which is in turn is a subsidiary of the State Bank of India (SBI), the largest Public Sector Bank (PSB) in India.
India would contribute approximately Rs. 175 crore (£17.5 million) to the Global Innovation Development Fund (GIP Fund) through the TDC Fund.
- According to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations [SEBI AIF Regulations], 2012, the TDC Fund would function as a “Fund of Funds.”
Note:
- SVL is presently actively managing three funds– Neev Fund, SWAMIH Investment Fund I and SVL-SME fund.
- MD & CEO of SBICAP Ventures Ltd (SVL) – Suresh Kozhikote
The Trilateral Development Cooperation Fund (TDC Fund)
The Trilateral Development Cooperation (TDC) Fund, a platform recently launched by the MEA, will integrate the public and private sectors with state support for large-scale investments in the Indo-Pacific region (which includes the tropical waters of the Indian Ocean, the western and central Pacific Oceans, and the seas connecting the two in the general area of Indonesia) and other regions.
- TDC is aimed at providing an alternative to the Chinese development partnership model, the Belt-Road Initiative (BRI), formerly known as One Belt One Road or OBOR for short, is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in nearly 70 countries and international organizations.
The Global Innovation Development Fund (GIP Fund)
Under the India-United Kingdom (UK) Global Innovation Partnership (GIP), the GIP Fund is intended to be established as an Alternative Investment Fund (AIF) in collaboration with the Foreign, Commonwealth and Development Office (FCDO).
- The GIP Fund will invest primarily in small and medium-sized enterprises (SMEs) in India that address development challenges in accordance with the goals and objectives of the GIP.
Specific Objectives:
i.The GIP Fund will target innovative Indian enterprises that are at an advanced stage but do not have access to funding for expansion to other developing countries.
ii.In addition to facilitating the GIP programme for MEA, SVL will serve as the TDC Fund’s administrator-cum-advisor (Investment Manager).
iii. Similar to the GIP Fund, established in collaboration with other partner nations under the TDC framework, MEA may in the future use the TDC Fund to contribute to AIFs.
iv.India aims to contribute to the GIP through the TDC Fund, which would globalise Indian start-ups and innovations through grants, development capital investment, and technical assistance.
Key Highlights:
i.MEA is dedicated to the growth and development of Indian businesses overseas, and GIP will aid in expanding the global reach of Indian innovations.
ii. The TDC Fund will demonstrate and reduce risk perception in the transfer of innovation.
iii.This partnership will serve as a foundation for structuring investments into innovative Indian enterprises, in addition to facilitating the further development, transfer, and scale-up of successful technologies to developing partner nations.
About Ministry of External Affairs (MEA):
Union Minister – Dr. Subrahmanyam Jaishankar (Rajya Sabha – Gujarat)
Minister of State (MoS) – V Muraleedharan (Rajya Sabha – Maharashtra); Meenakashi Lekhi (New Delhi, NCT of Delhi); Dr. Rajkumar Ranjan Singh (Inner Manipur, Manipur)
