In an effort to make the information technology industry self sufficient, the government is planning to create a research fund to reduce dependence on foreign manufacturers for development of essential equipment.

The fund will address intensive research in the field of logistics. Speaking at a seminar on 'Winning Strategies of Supply Chains, organised by the Associated Chambers of Commerce and Industry   minister of state for Communications & IT, Shakeel Ahmed said his ministry was in the process of drafting a Cabinet note for the setting up of the fund to aid in the research on leading-edge supply chain issues, provide consultancy services to industry and offer education and learning programmes for offering accreditation in supply chain management and logistics.

Ahmed said the ministry was moving to create the fund with a large capital base as early as possible.

He, however, refused to divulge the details and the terms and conditions under which the proposed research fund is expected to be created.

Despite strides in mobile telephony, the minister expressed concern over the fact that the country had failed to produce a single mobile manufacturer resulting Indian companies offering Rs 600 crore (Rs 6 billion) annually as technology fees to foreign mobile manufacturers.

Ahmed called upon industry to invest over Rs 1,60,000 crore (Rs 1600 billion) to enable rural India access telecom services. The government alone could not accomplish the target of providing 200 million phones to the country by 2007, he said.