Scheme 1 : Equity Grant and Credit Guarantee Fund Scheme for Farmer Producer Companies
Objectives of Equity Grant Fund
The Equity Grant Fund has been set up with the primary objectives of:
i. Enhancing viability and sustainability of FPCs;
ii. Increasing credit worthiness of FPCs;
iii. Enhancing the shareholding of members to increase their ownership and participation in their FPC.
Eligibility Criteria for FPCs
An FPC shall be eligible to apply for Equity Grant under the Scheme based on its fulfilling the following criteria: i. It is a duly registered FPC as defined in 3 (vii) above. ii. It has raised equity from its Members as laid down in its Articles of Association/ Bye laws. iii. The number of its Individual Shareholders is not lower than 50. iv. Its paid up equity does not exceed Rs.30 Lakh.
Equity Grant Fund
The Scheme shall address nascent and emerging FPCs, which have paid up capital not exceeding Rs. 30 lakh as on the date of application.
Scheme 2: Agribusiness Development Through Venture Capital Assistance And Project Development Facility
The main objectives of the Scheme are: (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.
The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following: 26% of the promoter’s equity `50.00 lakhs. Provided that for projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organisation, the quantum of venture capital will be the lowest of the following: 40% of the promoter’s equity `50.00 lakhs.