Scheme Objective

• (a) To facilitate setting up of agribusiness ventures in close association with all Notified 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.

Scheme Details

Farming is the single largest private sector economic activity in the country. The growth potential in this key sector is immense in view of the changes taking place in food consumption and there is growing demand for high value processed products. Successes in such endeavors will require innovations and partnerships. Private agribusiness provides a first point market for the farm sector and growth depends principally on private initiatives. A significant portion of agribusiness activity is the result of small and medium enterprises.

Such enterprises are necessarily widespread in location to capture opportunities that arise all along the farm to table supply chain. Key constraints that impede development of new agribusiness projects are access to information and access to credit. Agribusiness entrepreneurs are generally first generation who have business skills but their financial resources are limited for setting up units at the farm gate with backward linkages.

In order to facilitate agribusiness development in the country SFAC venture capital scheme will:

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

Key Benefits

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.

Scheme Applicable For

Assistance under the Scheme will be available to Individuals; Farmers; Producer Groups; Partnership/Proprietary Firms; Self Help Groups; Companies; Agripreneurs; units in agriexport zones, and 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.

Where to apply

http://sfacindia.com/VCA_Scheme.aspx