TECHNOLOGY SUPPORT SYSTEMS

TECHNOLOGY SUPPORT SYSTEMS:
Technology support systems in India includes following instititutions:
· IFCI- Industrial finance Corporation of India
· ICICI – Industrial Credit & Investment Corporation of India.
· IDBI – Industrial Development Bank of India.
· RCTC- (promoted by ICICI) Risk Capital &Technology Finance corporation Ltd.
· SIDBI- Small Industries Development Bank of India.
· NRDC- National Research Development Corporations of India.
· BCIL- Biotech consortium India Ltd.
· TDICI- Technology Development and Investment Corporations of India.
· SFC- State Finance Corporation.
· SIDCO- State Industries Development Corporation.

Institution providing technology finance:
There are two types of financial considerations while extending financial support by these institutions.
1) Funds for setting up new units/industrial diversification.
2) Funds for R&D activities and R&D infrastructure.

There are number of venture capital fund companies in the public and private sector, they also have state finance corporation.
VENTURE CAPITAL:
In the budget for 1986-87 govt of India decided to impose 5% levy on all technology import payments to create funds to be operated by IDBI, known as the venture capital fund of IDBI. Since then, a number of specialized financial institutions have been promoted by the major all India financial institutions.
EX. RCTC promoted by IFCI
VECAUS III promoted by IFCI and UTI
TDICI promoted by ICICI and UTI
In addition the following organizations also entered the field one is ‘SBI capital market’ (venture capital fund of SBI’s merchant banking decision)
India investment fund (GRINDLAYS Bank)
Can bank financial services
Credit Capital Financial Corporation
India Venture Capital Fund
RCTC:
It is a public limited company incorporated in Jan 1988, it provides:
a) Risk capital to first generation entrepreneurs to setup industrial units in medium and medium large sectors (project cost 2-10 crore )
b) Finance for technology development particular for advancement of R&D, it provides funds by

1. Equity participations
2. Loans
n Conventional (low interest rate)
n Conditional (interest free loans but profit sharing when a company earns profits)

Venture capital fund of IDBI:
It is designed to promote adoption of domestic technology to encourage adapt ion of imported technology for:
1) Setting up of pilot or demonstration plans.
2) Development of product/process for import substitution or up gradation.
3) Reducing material consumption, savings in energy etc.
4) Assistance in the form of conventional loans (5-25 lakhs)

Venture Capital scheme of TDICI:
It extends financial assistance to projects involving commercialization of new technology, indigenous technology or imported innovative technology transferred from an external source. Assistance available for initial aggregate investment up to 2 crore. Assistance may be in equity investment, condition and conventional loan.
PACT (Programme for advancement of commercial technology)
It envisages technical developments not technical transfer through INDO-US joint ventures in R&D.

To eligible for PACT support, a project should
a) Involve the development through R&D efforts, of an innovative product or process which promises tangible benefits to the Indian economy.
b) Be proposed by an Indian company and US company as a team, with each member having a specified role in the development and commercialization programme.
c) Have potential for commercialization in three years.
d) involve technology development and not just technology transfer and
e) Not be related to defense. Weather modification or abortion-related equipment or services.

RISK FINANCE BY NATIONAL RESEARCH DEVELOPMENT CORPORATION (NRDC)
NRDC, New Delhi, a Government of India enterprise in the Department of Scientific and Industrial Research (DSIR) is charged with the objective of commercial sing research carried out in national laboratories. It provides risk finance for technology development both by way of equity participation in companies set up for the first commercialization of NRDC know-how and also provides development loans for setting up of pilot plants.