The government today said that a Rs 5,500-crore India Inclusive Innovation Fund is likely to be set up by April, with a view to encourage research and development activities in small and medium enterprises.
The ministry of micro, small and medium enterprises (MSME), which has taken the initiative in consultation with the National Innovation Council to set up the fund, has circulated a Cabinet note for consultations to the concerned ministries in this regard.
It (Cabinet note) will soon go to the Cabinet for its consideration and the fund is expected to be in place by April, secretary in the MSME ministry Vivek Rae told reporters.
The scheme would promote innovation which is aimed at improving the competitiveness and efficiency of small and medium enterprises.
Of the total fund amount, 20% funding would come from the government and the remaining from banks, financial institutions and multilateral agencies, Rae said. The fund would be in two phases.