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Venture Capital Assistance: A financial aid for agriprenures

Venture Capital Assistance is financial assistance in the form of an interest-free loan to qualifying projects to help them achieve their capital requirements for project implementation. To aid agribusiness growth in the country, the SFAC venture capital plan will provide financial support for the compilation of bankable Detailed Project Reports, as well as assist agripreneurs in making investments in setting up agribusiness enterprises through financial participation (DPRs) by utilising the Project Development Facility (PDF).

The Scheme has the following objectives:

(a) To facilitate the establishment of agribusiness ventures in close collaboration with all Notified Financial Institutions notified by the Reserve Bank of India. The Central/State Government owns more than 50% of the company, such as Nationalized banks, SBI & its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, Exim Bank, RRBs & State Financial Corporations.

(b) To encourage private investment in agribusiness projects, thereby providing producers with a secure market and increasing rural income and employment.

(c) To strengthen agribusiness projects’ backward links with growers.

(d) To use the Project Development Facility to help farmers, producer organisations, and agriculture graduates improve their participation in the value chain.

(e) Arrange for agripreneurs to receive training and visits in order to start up identified agribusiness projects.

Facility for Project Development 

  • Farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, and Agriculture graduates (referred to as beneficiaries) will receive financial assistance from SFAC through empanelled consultants/institutions in the compilation of bankable Detailed Project Reports (DPR). On a case-by-case basis, SFAC will fund the cost of preparing a DPR, according on the agripreneur’s financial situation, size, location, activity, and coverage.
  • A beneficiary seeking assistance with the preparation of a DPR can contact the district’s nearest empanelled consultant, who will consult with the Notified Financial Institution and submit the details/pre-feasibility of the proposed project for the Notified Financial Institution’s or SFAC’s recommendation at the State or Central level.
  • If the Notified Financial Institution is convinced that the proposed project is feasible, it will recommend it to SFAC for financial help in the production of the DPR. Intending projects must be larger than ’15 lakhs (’10 lakhs in backward districts of States declared by the Planning Commission, North Eastern States, and other mountainous States such as H.P., J&K, and Uttarakhand).
  • (d) SFAC will entrust the preparation of the DPR to one of the consultants on its panel, depending on the project’s activity and location.
  • (e) SFAC will reimburse the empanelled consultant for the cost of preparing the DPR.
  • The following is a summary of the fee structure for empanelled consultants under the Venture Capital Assistance Scheme for Agribusiness Development:

Category I (Projects worth between ‘10.00 lakh and ‘25.00 lakh)

Total fees: 25000.00 (Rupees Twenty-Five Thousand Only).

Category II (Projects worth more than ‘25.00 lakh but less than ‘1.00 crore)

Fee total: 50000.00 (Rupees Fifty Thousand Only).

Category III (Projects worth more than ‘1.00 crore but less than ‘3.00 crore)

Total fees: 75000.00 (Rupees Seventy-Five Thousand Only).

Category IV (Projects worth more than ‘3.00 crore but less than ‘5.00 crore),

Total fee: 100000.00 (Rupees One Lakh Only).

Payment terms for all categories: The fee will be paid in three instalments to empanelled consultants

(i)20% when the bank has received the DPR and other papers.

(ii) 40% after a Notified Financial Institution has approved a term loan with a VCA provision.

(iii) 40% once SFAC has approved and disbursed the VCA.

Eligibility Criteria-

  • Individuals, Farmers, Producer Groups, Partnership/Proprietary Firms, Self-Help Groups, Companies, Agripreneurs, units in Agri-export zones, and Agriculture graduates will all be eligible for assistance under the Scheme to start agribusiness initiatives, either individually or in groups.
  • The organisations should ideally incorporate into businesses or production firms under the applicable Act for professional management and accountability.

How to Apply for VCA-

It’s quite easy to use VCA from SFAC. Immediately after the bank/financial institution has sanctioned the Term Loan, the promoters may submit a VCA application form to SFAC, either directly or with the assistance of any SFAC-empanelled adviser. After receiving the application and conducting a preliminary review of the documents, SFAC will send an acknowledgement letter with the proposal registration number to the bank, promoter, and consultant (if any), as well as request any additional documents, information, or clarification needed to complete the proposal. For future details visits website

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