Mumbai: In a major boost to Scheduled Castes and Scheduled Tribes entrepreneurs, a 500 crore venture capital fund targeted at investing exclusively in such enterprises is set to be launched soon.

"At present, all government schemes are focused on generating self employment for the marginalised people. There is no thrust at entrepreneurship or scaling up," President of Dalit Indian Chamber of Commerce and Industry (DICCI) and promoter of the fund Milind Kamble told PTI over phone.

Finance Minister P Chidambaram will formally launch the fund, which received approval as a category I alternate investment fund from markets regulator Sebi last year, at a ceremony in the financial capital on Thursday, he said.

The overall size of the fund will be Rs 500 crore, he said, adding that the DICCI is planning to raise the first tranche of Rs 150 crore in a year's time from now.

"The fund will invest exclusively in enterprises promoted by scheduled caste and scheduled tribe entrepreneurs. Typically, an investment will be between Rs 5 crore and Rs 15 crore," Kamble said, adding DICCI is in talks with financial institutions and high net individuals for fund-raising.

The Small Industries Development Bank of India (SIDBI) has already committed Rs 10 crore to become the first investor in the fund, Kamble said, adding that insurance giant Life Insurance Corporation of India and infra lender IDFC are also expected to announce commitments to invest soon.

The idea of such a fund was first mooted by Planning Commission Deputy Chairman Montek Singh Ahluwalia during a consultative meeting with DICCI in the run up to the preparation of the 12th Five Year Plan in 2011, he said.

Ahluwalia had said the government will contribute thrice the amount which DICCI raises for the fund. DICCI took the help of KPMG, IL&FS and FinSec Law Advisors before applying to Sebi, which gave the go-ahead on October 1, 2012, Kamble said.

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