The Venture Capital Assistance Scheme (VCA)

Posted 01/04/2023

Description	The main objectives of the Scheme are: (a) To facilitate setting up of agribusiness ventures in close association with all banks/ financial institutions notified by the Reserve Bank of India where the ownership of the Central/State Government is more than 50% such as Nationalized banks, SBI & its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, Exim Bank, RRBs & State Financial Corporations. (b) To catalyze private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income & employment. (c) To strengthen backward linkages of agribusiness projects with producers. (d) To assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through Project Development Facility. (e) To arrange training and visits, etc. of agripreneurs in setting up identified agribusiness projects. (f) To augment and strengthen existing set up of State and Central SFAC. Small Farmer’s Agri-Business Consortium (SFAC) has launched the Venture Capital Assistance (VCA) scheme for the welfare of farmer-entrepreneurs and to develop their agri-business. The scheme is approved by the banks and financial institutions regulated by the RBI. It intends to provide assistance in the form of term loans to farmers so that the latter can meet the capital requirements for their project's implementation. VCA promotes the training and nurturing of agri-entrepreneurs. The quantum of the loan will be 26% (40% for hilly regions) of the promoter’s equity. The maximum amount of loan provided under this scheme will be INR 50 lakhs.
Provider Type Central Govt / State Govt / Private Sector	Central Govt
Provider Name	The Small Farmer's Agri-Business Consortium (SFAC)
Amount	INR 50 lakhs
Grant Conditions & Qualifying Criteria	SFAC would provide Venture Capital to qualifying projects on the recommendations of the bank/financial institution financing the project. This venture capital will be repayable back to SFAC after the repayment of term loan of lending bank/financial institution as per original repayment schedule or earlier. 3.1.1 SFAC would provide venture capital to agribusiness projects by way of soft loan to supplement the financial gap worked out by the sanctioning authority of term loan under Means of Finance with respect to cost of project subject to the fulfillment of the following conditions: (a) Qualifying projects under Venture Capital: (i) Project should be in agriculture or allied sector or related to agricultural services. Poultry and dairy projects will also be covered under the Scheme. (ii) Project should provide assured market to farmers/producer groups. (iii) Project should encourage farmers to diversify into high value crops, to increase farm incomes. (iv) Project should be accepted by banks/financial institutions for grant of term loan. (b) The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following: 26% of the promoter’s equity `50.00 lakhs. Provided that for projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organisation, the quantum of venture capital will be the lowest of the following: 40% of the promoter’s equity `50.00 lakhs.
Focus Sector (Healthcare, Defense, Agriculture, etc.)
Provider Contact Email	NA
Provider Website URL	http://sfacindia.com/Procedure_For_VCA_Scheme.aspx
Type of funding (Grant, Loan or Equity)	Grant
Process	NA
Tips for Winning	NA
Provider Indian State	NA
Provider Contact Address
Is Active	"Yes"
Other Details