SFAC 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.
SFAC
would provide Venture Capital to
qualifying projects on the recommendations of the Notified Financial
Institution financing the project. This venture capital will be repayable back
to SFAC after the repayment of term loan of lending Notified Financial
Institution as per original repayment schedule or earlier.
SFAC would provide venture capital to
agribusiness projects by way of soft
loan to supplement the financial gap worked out by the sanctioning
authority of term loan under Means of Finance with respect to cost of project
subject to the fulfillment of the following conditions:
(a)
Qualifying projects under Venture
Capital:
(i) Project should be in agriculture or
allied sector or related to agricultural services. Poultry and dairy projects will also be covered under the
Scheme.
(ii) Project should provide assured market
to farmers/producer groups.
(iii) Project should encourage farmers to
diversify into high value crops, to increase farm incomes.
(iv) Project should be accepted by Notified
Financial Institution for grant of term loan.
(b) 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.
Eligible Persons
Assistance under the Scheme will be available to:
>Individuals.
>Farmers.
>Producer Groups.
>Partnership/Proprietary Firms.
>Self Help Groups.
>Companies.
> Agripreneurs.
>Units in agri-export 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
For Exmaple
A project of a perticular project is 40 lakhs in this case
the SFAC Soft loan is available to the cleint is as below.
|
Sr. No.
|
Particulars
|
Percentage Available
|
Amount
|
|
1.
|
Project Cost
|
100 %
|
40,00,000 /-
|
|
|
|
|
|
|
2.
|
Bank Funding
|
Upto 75 %
|
30,00,000 /-
|
|
3.
|
Owners Equity
|
Remaining 25 %
|
10,00,000 /-
|
|
|
|
|
|
|
4.
|
SFAC Soft Loan
|
26 % of Owners Equity
|
2,60,000 /-
|
