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VC Fund for SCs Empowers SC Entrepreneur in Electronics Manufacturing

UPSC / SSC current affairs note · Economy

Social JusticeEconomy

Why in news

The Ministry of Social Justice and Empowerment highlighted the success of Smart-Waves Technologies, an SC entrepreneur's electronics manufacturing firm, enabled by the Venture Capital Fund for Scheduled Castes (VCF-SC). This showcases the scheme's impact in fostering tech self-reliance and inclusive growth.

Background

The Venture Capital Fund for Scheduled Castes (VCF-SC) is a central sector scheme under the Ministry of Social Justice and Empowerment, providing concessional finance to SC entrepreneurs. It aims to promote entrepreneurship and economic empowerment among Scheduled Castes.

Key facts

in5points

  1. Smart-Waves Technologies Pvt Ltd, founded by Mallikarjuna Rao Yeliseela, an SC entrepreneur, is based in Hyderabad.

  2. The company received financial assistance of ₹4.98 crore from VCF-SC in 2018 as equity and optionally convertible debentures.

  3. The company operates in electronics manufacturing services (EMS), designing, developing, testing, assembling, and distributing electronic circuit boards for defense, aerospace, industrial products, automobiles, electric vehicles, and consumer electronics.

  4. Over 50% of the company's workforce are women.

  5. The company has provided employment to 128 people, including 40 SC employees and 88 non-SC employees.

  6. It has built assets worth ₹8.41 crore, earned annual revenue of ₹18.87 crore, and strengthened net worth to ₹22 crore.

  7. The company has established business relationships with HAL, BEL, ISRO, and several reputed clients in defense and aerospace sectors.

  8. The assistance helped set up the first EMS unit, purchase specialized equipment, strengthen R&D, hire skilled engineers, and expand operations.

  9. It also facilitated setting up a second manufacturing unit with higher production capacity in Hyderabad.

Prelims pointers

  • VCF-SC: Venture Capital Fund for Scheduled Castes
  • Ministry of Social Justice and Empowerment
  • Hyderabad, Telangana
  • HAL, BEL, ISRO
  • Electronics Manufacturing Services (EMS)
  • Equity and optionally convertible debentures

Mains angles

  • Discuss the role of targeted financial support in promoting entrepreneurship among marginalized communities.
  • Examine the impact of VCF-SC in achieving inclusive industrial growth and technological self-reliance.