Venture Capital Funds for Scheduled Caste
The Government of India has launched the Venture Capital Fund for Scheduled Castes’ with initial capital of Rs. 200 crore. IFCI Ltd. will act as Sponsor, Settler and Asset Management Company (AMC) / Nodal Agency to operate the scheme. The IFCI Ltd. would contribute Rs 50 crore which would comprise Rs 5 crore as sponsor and Rs 45 crore as investor.
Under the scheme, financial assistance upto Rs.15.00 Crore for a period upto 6 years would be provided to the SC entrepreneurs.
The objectives of the Venture Fund are as follows:
- It is a Social Sector Initiative to be implemented nationally in order to promote entrepreneurship amongst the SCs who are oriented towards innovation and growth technologies.
- To provide concessional finance to the SC entrepreneurs, who will create wealth and value for society and at the same time will promote profitable businesses. The assets so created will also create forward/ backward linkage. It will further create chain effect in the locality.
- To increase financial inclusion for SC entrepreneurs and to motivate them for further growth of SC communities.
- To develop SC entrepreneurs economically.
- To enhance direct and indirect employment generation for SC population in India.
Investment under the fund will be categorised as follows:
- Financial assistance upto Rs 5 Crore - Investment under this category shall be funded maximum upto 75% of the project cost and the balance 25% of the project cost will be funded by the promoters;
- Financial assistance above Rs. 5 Crore
- Investment under this category shall be funded maximum upto 50% of the project cost. At least 25% of the project cost has to be financed by bank/other institutions. Balance 25% of the project cost will be funded by the promoters.
- The proposals forwarded by Banks or other financial institutions with sanction of 25% of the total project shall be considered. In this case, the projects shall have to be compulsorily.
- The projects/units being set up in manufacturing and services sector ensuring asset creation out of the funds deployed in the unit shall be considered.
- While selecting the SC entrepreneurs, women SC entrepreneurs would be preferred.
- Companies having at least 60% stake holding by Scheduled Caste entrepreneurs for the past 12 months with management control.
- Documentary proofs of being SC will have to be submitted by the entrepreneurs at the time of submitting the proposals.
- The SC promoters of Investee Company will not dilute their stake below 60% in the company till the exit under the scheme. However, in the event of any conversion of quasi-equity instrument under the scheme, strategic investments, buyouts etc, which result into dilution of stake of SC Entrepreneur, a prior written approval from Asset Management Company (AMC) would be required.
- The companies applying for assistance of more than Rs. 5 Crore, shall preferably get their project appraised by the banks / FIs before approaching for assistance under the scheme.
- For companies with sanctioned assistance of above Rs. 5 Crore, the money released by the Trust/ Fund Manager would be in proportion to the loan tranche released by the bank.
For more information, click here.
Green Business Scheme
NSFDC’s ‘Green Business Scheme’ for providing financial assistance has been launched keeping into the concern for the climate change. Under this Scheme, loan for unit cost upto Rs.1 lakh at concessional rate of interest will be provided to Scheduled Castes for activities such as e-rickshaw, Solar Pump and Solar energy powered implements, poly house etc.
- Online Application Form for availing financial assistance under 'Venture Capital Fund for Scheduled Castes'
- Frequently Asked Questions (FAQs) under Venture Capital Fund for Scheduled Castes
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