shall address nascent and emerging FPCs, which have paid up capital not exceeding Rs. 30 lakh as on the date of application.
The Equity Grant Scheme enables eligible FPCs to receive a grant equivalent in amount to the equity contribution of their shareholder members in the FPC subject to a maximum of Rs. 10.00 lakh per FPC in two tranche.
Objectives of Equity Grant Fund Scheme
Equity Grant Scheme extends support to the equity base of Farmer Producer Companies (FPCs) by providing matching equity grants. The EGS shall operated by Small Farmers’ Agri Business Consortium (SFAC).
Enhancing viability and sustainability of FPCs Enhancing credit worthiness of FPCs Enhancing
the shareholding of members to increase their ownership and participation in their FPC.
Eligibility Criteria For FPCs
It is a duly registereFPC as define under Part IXA of the Indian Companies Act, 1956
It has raise equity from its Members as laid down in its Articles of Association/ Bye laws.
The number of its Individual Shareholders is not lower than 50 Its paid up equity does not exceed Rs.30 Lakh.
Minimum 33% of its shareholders are small, marginal and landless tenant farmers as defined by the Agriculture Census carried out periodically by the Ministry of Agriculture, GOI. Maximum shareholding by any one member other than an institutional member is not more than 5% of total equity of the FPC.
Maximum shareholding of an institutional member should not be more than 10% of total equity of the FPC.
It has a duly elected Board of Directors (BoD) with a minimum of five members, with adequate representation from member farmers and minimum one woman member.