Financial Daily from THE HINDU group of publications
Tuesday, Jun 18, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jun 18, 2002 |
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Industry & Economy
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Infrastructure APIDC to establish biotech fund; plans equity divestment Our Bureau
HYDERABAD, June 17 THE Andhra Pradesh Industrial Development Corporation (APIDC) has initiated steps to establish Rs 45-crore biotech fund, rightsize the organisation and it has also firmed up plans to establish a special task force for recovery of loans and divestment of equity. The corporation has targeted total business of about Rs 50 crore and has drawn up plans to disinvest about Rs 5 crore as a part of its strategy for the year 2002-2003, according to Mr S.M. Balasubramanyam, Vice-Chairman and Managing Director of APIDC. The State-owned corporation has, thus far, promoted 791 units which involves a total outlay of Rs 4,834 crore and has played a pivotal role in local entrepreneurial developmental activities supporting the small and medium sectors. While initiating efforts to streamline the functioning of the corporation, it had been decided to reduce overheads and rightsize the corporation, Mr Balsubramanyam said. A voluntary retirement scheme covered about 101 employees and the overall strength was reduced to about 118 this year. In order to give a new direction to industrial development in the State and factor in the current business trends, the corporation is now zeroing on biotechnology-related projects. Towards this end, a biotech venture capital fund of Rs 45 crore is being set up, with the State Government contributing about Rs 15 crore. The corporation is negotiating with SIDBI and other agencies to raise further funds over a three-year period. The fund size might be further raised to about Rs 90 crore, the MD said. It has diversified into funding operations and plans to gradually extend working capital loans, corporate loans and bill discounting facilities. It has also created a new cell — ENTIRE — to provide consultancy services to entrepreneurs right from identification to implementation of projects. With enture capital playing a vital role in entrepreneurship building, the corporation has promoted two funds already — the APIDC Venture Capital Fund and the Hyderabad Information Technology Venture Fund (HIVE Fund). The APIDC Venture Fund was established with World Bank participation, with about 26 projects assisted so far involving total distribution of Rs 21 crore. On the other hand, out of the Rs 15-crore HIVE Fund, so far about Rs 4.30 crore has been disbursed. This fund has participation from SIDBI and APIIC.
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