Indian government is setting up a $1 billion venture capital fund (Rs 6,200 crore) to encourage manufacturing of telecom equipment and devices, reports Hindu Business Line. The plan has been floated by National Manufacturing Competitiveness Council (NMCC) and it will soon be sent to Prime Minister Manmohan Singh for approval. According to the report, NMCC also plans to rope in Vinod Khosla, Sam Pitroda and Gururaj Deshpande to be part of the investment committee of the proposed fund, that will focus on technology innovation and not return on capital. The promoter of the company will have full control of management, subject to a review by the expert committee. However, the fund will maintain an equity holding above 51% to prevent any foreign entity from gaining control over the firm. Fear of the videsi haath (foreign hand) One point that sticks out in the whole proposal is…
