India, GCC nations hike corpus for mentoring firm
Wednesday, 30 May 2007, 07:00 Hrs
Mumbai: India and member countries of the Gulf Cooperation Council (GCC) have agreed to raise to $70 million the initial capital for a company that will extend help to small and medium enterprises of the two aides. The holding company to be set up with private and public sector participation in India and the GCC states will promote joint venture projects of small and medium enterprises on both sides, officials said Wednesday. The decision to set up the company with an initial capital of $50 million, subsequently revised to $70 million, was taken at the third meeting of the India-GCC Industrial Forum that concluded here after two days of talks. "Both India and the UAE have agreed to put in $10 million each," Oman's Commerce and Industry Minister Maqbool bin Ali bin Sultan said. "Now the onus is on the remaining five countries including Sultanate of Oman to chip in an equal amount." The subscription to the holding company will be open to all member countries and the new entity will play a major role in mentoring projects and assisting small and medium enterprises in their business propositions, officials said. "Large companies can take care of themselves. It is the small and medium ones that need assistance," said India's Industry Secretary Ajay Dua, adding that a panel will be formed immediately to facilitate the setting up of the company.