Maharashtra Defence and Aerospace Venture Fund (MDAVF), registered with SEBI and managed by IDBI Capital Markets & Securities (ICMS), has committed Rs 480 crore across 27 MSMEs so far, according to ICMS. This fund primarily focuses on missile systems, aerospace technologies, naval systems, and electronic warfare.
Out of the total investment around Rs 406 crore has been invested in 22 MSMEs, while exits both full and partial have been made from 12 companies, bringing in divestment proceeds of about Rs 281 crore. The fund was first registered as an alternative investment fund with SEBI in September 2018.
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ICMS highlighted that these investments have led to the creation of over 3,000 direct jobs and an estimated 10,000-15,000 indirect jobs across Maharashtra. A noteworthy aspect of the fund’s backing is that 13 out of the 27 companies supported by MDAVF are led by women entrepreneurs and promoters. This initiative aligns with the government’s ‘Make in India’ vision, emphasizing self-reliance in defence manufacturing.
According to Financial Express, ICMS stated, “MDAVF is well-positioned to take advantage of emerging opportunities in advanced technology and manufacturing. By providing a strong platform for sustainable growth, innovation, and self-reliance, we aim to support India’s expanding capabilities in nuclear solutions, UAV automation, marine technology, and aerospace advancements.”
Fund Manager Amey Belorkar reaffirmed this commitment, saying, “We are dedicated to supporting India’s vision of self-reliance in defence and aerospace. By strategically investing in high-potential ventures, we not only contribute to national security but also strengthen indigenous capabilities. MDAVF takes pride in playing a role in India’s defence ecosystem and in furthering the goal of Atmanirbhar Bharat.”
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The support given to MSMEs is particularly significant as the government is keen on making small businesses key beneficiaries of the Technology Development Fund (TDF) scheme. This scheme provides grants to MSMEs, startups, academic institutions, and scientific organizations for the development of defence and dual-use technologies that are not yet available in the Indian Defence Industry.
Since January 2022, 16 MSMEs and 20 startups have received support under this initiative, as confirmed by Minister of State for Defence Sanjay Seth in Parliament last year.
