by Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to qualifying projects to meet shortfall in the capital requirement for implementation of the project.
The Small Farmer’s Agri-Business Consortium (SFAC) has launched the scheme named Venture Capital Assistance (VCA) Scheme for the welfare of farmer-entrepreneur to develop their agri-business. This scheme intends to assist in the form of the term loan to the qualifying projects of the farmers to meet their capital requirements for the implementation of the project.
Th primary aim of the scheme is to target Agri-business entrepreneurs through financial participation. It targets following people:
- Farmers
- Self Help Groups
- Producer Groups
- Companies
- Agriculture Exporters
- Units in agriexport zones
- Agriculture graduates either individually or collectively to start a agribusiness projects.
- Partnerships or Proprietory Firms.
List of Qualifying Projects:
(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 Notified Financial Institution for grant of term loan.
Objectives of the Scheme
- To help farmers, producer groups, and agriculture graduates to participate in the value chain through the Project Development Facility.
- To support the entrepreneurs in setting up an agribusiness venture which is approved by the banks, financial institutions regulated by the RBI.
- To strengthen the previous stages of state and central SFAC.
- To promote training and visits of agri-entrepreneurs in setting up agribusiness projects.
- To assist the backward linkages of agribusiness projects with producers.
- To provide assured markets to the producers to increase rural income and employment.
