NSDC to raise Rs 50 cr in Nirvana Fund

Kolkata, July 24 (IANS) The National Skill Development Corporation (NSDC) is aiming to raise Rs 50 crore in the next six months in the newly created Nirvana Fund to cater to entrepreneurs from the bottom rungs of society, a top official said here on Monday.

"We are targetting to collect Rs 50 crore from investors in the next six months," NSDC's MD and CEO Manish Kumar said.

It is an angel investment fund which will cater entreprenuers at the bottom rungs of the society, not towards the top of the society as they have access to the banks, he said.

"It is conceptualised in a way that the high net worth individuals will contribute to the fund as they are paying back to the society. Right now, we have created a small kitty and identified 10-12 entrepreneurs in Odisha," he said.

In disbursing funds to the potential entrepreneurs, the corporation will make sure that it would be soft and not to be burdensome to them, Kumar said.

According to him, the corporation would track the behavioural pattern of the entrepreneurs.

"In the first year, he or she has to return with zero per cent interest and in second year, the interest is going to be five per cent. What we will be tracking is entrepreneurs' behaviour. Suppose, he or she is not able to repay but his or her behaviour is good, we will refund. Even, if his or her behaviour is good and three years down the line, the entrepreneur fails, we do more funding to him," Kumar explained.

Speaking about how to identifying the potential entrepreneurs, he said the corporation would depend on "credible channel" consisting of individuals or NGOs.

"We will have check and balance but there could be example of misuse of the fund," Kumar said.

He said the ticket size of funding is about Rs 1-2 lakh to begin with, he added.

NSDC signed an Memorandum of Understanding with Bengal National Chamber of Commerce and Industry to collaborate each other on the skilling initiative as a part of National Skill Development mission.

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