The Venture Capital Assistance Scheme – Benefits, Eligibility, Procedure

Venture Capital Assistance is financial support to meet shortfall in the capital requirement for implementation of the project. The support was in the form of an interest free loan provided by SFAC to qualifying projects.

Benefits

The venture capital scheme will:

  • Assist agripreneurs to make investments in setting up agribusiness projects through financial participation
  • Provide financial support for preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF)

Eligible Beneficiaries

  • Farmers
  • Producer Groups
  • Partnership/Proprietary Firms
  • Self Help Groups;
  • Companies
  • Agripreneurs
  • units in agriexport zones,
  • Agriculture graduates Individually or in groups for setting up agribusiness
  • projects.

For professional management and accountability the groups have to preferably form into companies or producer companies under the relevant Act.

Implementing Agency

The Scheme will be implemented by Small Farmers’ Agribusiness Consortium (SFAC), a registered
society functioning under Department of Agriculture & Cooperation, Ministry of Agriculture.

Procedures

  • Promoter’s request letter addressed to the Managing Director SFAC, New Delhi
  • Sanction letter of authority
  • Bank’s approved Appraisal/Process note bearing signature of sanctioning authority with terms of sanction of term loan
  • Up-to-date statement of account of sanctioned Term loan and Cash Credit
  • Equity Certificate:
  • Farmer’s list/backward linkage duly supported by agreement
  • Affidavit of promoters that they have not availed VCA in the past
  • Unsecured loans raised by the promoters (If any). CA Certificate to be enclosed
  • Copy of last Bank’s inspection report
  • Bank’s confirmation that they will not release primary & collateral security without SFAC consent
  • Justification for margin on working capital taken in the project cost

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