A cabinet meeting chaired by Chief Minister Shri Shivraj Singh Chouhan here today decided for institutional arrangement of venture capital fund to meet share capital needs for establishment of innovative entrepreneurship.
All formalities for institutional arrangement will be completed through constitution of Assets Management Committee under Finance Department. The committee will constitute a public limited company with a similar other name approved by Madhya Pradesh Venture Finance Limited or Registrar of Companies.
For institutional arrangement of Venture Capital Fund, formalities will be completed to constitute a private limited company to function as trustee of funds under Finance Department. Under it, a public limited company will be formed by a similar other name approved by Madhya Pradesh Venture Finance Limited or Registrar of Companies.
After constitution of Assets Company and Trustee Company, the companies will make banks, financial establishments, corporates etc. as shareholders, who may hold minimum 51 percent shares. Registration certificate will be sought from SEBI for Venture Capital Funds in accordance with SEBI Alternative Investment Funds Regulation, 2012. For operating it, a fund will be constituted under provisions of Indian Trusts Act 1882 under a name approved by Madhya Pradesh MSME Fund or Registrar, Firms and Societies. It will collect and invest funds in accordance with Investment Policy.
The state government will make a Rs. 5 crore preliminary investment in the fund as per provisions of SEBI Alternative Investment Funds Regulation, 2012. Additional funds will also be invested if needed.
- The cabinet decided to provide to Madhya Pradesh Finance Corporation additional funds as share capital equal to amount of guarantee fee paid/to be given by it. The corporation gives loans to small and medium entrepreneurs. As a result of this decision, the corporation will be able to extend low-interest loans to entrepreneurs of backward areas.
- The cabinet decided to extend duration of Rs. 1868.81 crore guarantee on loan taken from Rural Electrification Corporation by power distribution companies for implementing feeder separation scheme upto December 31, 2015 or till amendment in escrow cover for Sasan project, whichever is earlier.
- The cabinet decided to cancel notification dated October 4, 2011 for management of government land available for establishment of power plants with private capital with effect from May 20, 2013.
- The cabinet decided to extend till December 31, 2015, the duration of Rs. 1388.23 crore security on loans sanctioned to Rural Electrification Corporation to power distribution companies for R-APDRP Part-B Scheme.
- The cabinet decided to revise cost of Shri Singaji thermal power project’s first phase (2X600 MW) of Madhya Pradesh Power Generating Company from Rs. 6750 crore to Rs. 7820 crore and that of Satpura thermal power station’s extension units 10 and 11 (2X250 MW) from Rs. 3032 crore to Rs. 3514 crore.
- The cabinet decided to give 3-year government security to Madhya Pradesh State Cooperative Bank Limited in favour of NABARD to acquire Rs. 416.27 crore from it for conversion of short-term to 3-year medium-term, the loans taken from cooperative banks by farmers affected by natural calamities during Rabi 2012-13, Kharif 2013 and Rabi 2013-14. Besides, it would be exempted from security fee. Apart from government security, it was also decided to give loan subsidy on additional Rs. 71.19 amount of short-term to medium-term conversion of loan given by primary agriculture credit cooperative societies linked with District Cooperative Central Banks in 10 districts during Kharif-2013 and state government’s 15 percent share will also be provided.
- The cabinet accorded consent to extend from March 31, 2016 to September 31, 2019, the time-limit for government security for resetting under Sagar Municipal Corporation’s schemes. Besides, it also gave consent to replace 12.50 percent interest rate by floating rate 10.75.
- The cabinet endorsed Chief Minister’s order to extend term of Union Carbide Poisonous Gas Leak Enquiry Commission Bhopal till February 24, 2015.