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Govt to revive ‘India Brand Equity Fund’; to sign MoU with CII
PTI - New Delhi

Almost six years after it unveiled a Rs 150 crore ‘India Brand Equity Fund Trust’ as an export promotion scheme, the government is now planning to infuse a fresh dose of life in the trust by asking an industry chamber to take on the day-to-day management of the fund.

A new format is being considered by the commerce ministry, under which the trust would be managed through a government-industry partnership. A draft of an MoU has been submitted by the CII to the ministry for consideration and the agreement is expected to be inked soon, official sources said.

Sources said under the new arrangement, the cost of management of the trust would be on a shared basis between the government and the CII. The fund would be headed by an official from CII. The chamber has been roped in after the government invited expressions of interest from industry chambers to manage the fund, sources said adding the chamber was also looking at means to enhance the corpus of the existing fund. The need to change the existing arrangement has been felt on account of the lukewarm response received by the fund trust established on July 11, 1996. Sources said it is expected that roping in an industry chamber will prove more effective in achieving the objective of the fund. Since 1996, loans have been granted to only eight companies amounting to around Rs 36 crore of which actual loan disbursed has been around Rs 14 crore.