Small Farmers’ Agri-Business Consortium with a mandate to support innovative ideas for generating income and employment in rural areas by setting up various types of Agribusiness projects which includes all activities that take place in production, manufacturing, distribution, wholesale and retail sales of agricultural commodity has launched countrywide Venture Capital Investment Project with special emphasis in North Eastern States.
- Venture Capital: To promote investments in agri-business projects with the participation of nationalized banks, SBI and subsidiaries/IDBI.
- Venture capital for agri-projects upto 10% of the total project cost, or 26% of the Total project equity or Rs.75 lakhs whichever is lower. Provided that for projects located in North-Eastern and Hilly States (Uttarakhand, Himachal Pradesh, J & K), the quantum of Venture Capital will be the lowest of the following:
- 25% of the total project cost assessed by the bank
- 40% of the project equity
- Rs. 75.00 Lakhs whichever is lower
- In special cases, higher venture capital can be considered by SFAC to deserving projects on merit and to projects that are located in remove and backward notified districts, North-Eastern and Hilly States and in projects recommended by State agencies subject to maximum of Rs. 3 crores.