SFAC Presentation

on Venture Capital Assistance

SchemeScheme

Updated on 27.10.2014

About SFAC

• SFAC is a Society established by DAC, GOI,

chaired by Hon. Agriculture Minister

• RBI, NABARD, PSBs are original promoters of

SFACSFAC

• Notified as financial institution under RBI Act

• Mission: To link smallholders to investments,

technology and markets.

Venture Capital Assistance Scheme

(VCA)• VCA: It is an interest free loan provided by SFAC, always in

conjunction with a bank loan, for setting up of agribusinessprojects (including Dairy and Poultry) up to a project cost ofRs. 500.00 lakh.

• VCA Amount: 26% of promoter’s equity or Rs. 50.00 lakhwhichever is lowerwhichever is lower

• Minimum project size: Rs. 15.00 lakh in general areas andRs. 10.00 lakh in Hilly States & NER and backward districts

• Tenure: Same as that of Term Loan sanctioned by bank/FI

• Individual entrepreneurs, coops, FPOs, SHGs, companies etc. all eligible to apply

• Assistance to prepare DPRs through empanelled consultants of SFAC/State SFACs

QUALIFYING PROJECTS UNDER VENTURE CAPITAL

• Agriculture or allied sector/ related to agricultural services’ projectsincluding Dairy & Poultry

• Assured market to farmers/ producer groups.

• Encourage farmers to diversify into high value crops, to increase farmincomes

•

incomes

• Accepted by banks/financial institutions for grant of term loan.

• Projects must be in the range of Rs. 15.00 lakh to Rs. 5.00 Crore ingeneral area and Rs. 10.00 lakh to Rs. 10.00 Crore for North-EasternStates and backward districts.

Eligible Entities

• 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 agri-business projects.groups for setting up agri-business projects.

• For professional management and accountability, the groups

have to preferably form into companies or producer

companies under the relevant Act.

Eligible Lending Institutions

1. SBI and its subsidiaries

2. Nationalized Banks

3. RRBs

4. IDBI4. IDBI

5. SIDBI

6. NABARD

7. NCDC

8. NEDFi

9. Exim-Bank

10.State Financial Corporations

PROGRESS OF VCA SCHEME

250

300

350

400

450409

441

15

3.8

90

50

100

150

200

250

X Plan XI Plan XII Plan

103

23

.86

12

0.1

7

15

3.8

9

No. of Projects

VCA Amount in Crores

PERFORMANCE OF VCA SCHEME SINCE X PLAN

Plan Period Venture Capital

Assistance

Total Project Cost No. of

Projects

Rs. in Crore Rs. in Crore

X Plan (2002-2007) 23.86 262.51 103

XI Plan (2007-2012) 120.17 1461.02 409

XII Plan (2012-2017)

Up to 27.10.2014

153.89 2028.63 441

Total 297.92 3752.16 953

Total VCA sanctioned/disbursed Rs. 297.92 Crore, leveraging private &

institutional investment of Rs. 3752.16 benefitting approximately 124462

farmers and generating employment to 57147 persons in rural areas.

Maharashtra 224 Punjab 12

Uttar Pradesh 124 Manipur 10

Karnataka 104 Nagaland 09

Gujarat 81 Chhattisgarh 07

Tamil Nadu 69 West Bengal 05

Rajasthan 56 Arunachal Pradesh 04

State-wise break-up 953 Projects

Rajasthan 56 Arunachal Pradesh 04

Haryana 43 Telangana 04

Himachal Pradesh 43 Meghalaya 03

Kerala 36 Bihar 03

Jammu & Kashmir 36 Tripura 01

Uttarakhand 26 Goa 01

Madhya Pradesh 18 Jharkhand 01

Assam 16 Mizoram 01

Andhra Pradesh 15 Orissa 01

201

96

84

75 69

6260

80

100

120

140

160

180

Bank-wise VCA Sanctions of 953 projects

62

4235 37 34 24 21 31 18 16 20 25 12

11

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Cold storage 248 Bamboo 7

Misc. fruits & vegetables 181 Walnut 7

Mango 53 Aloe Vera 7

Cashew 59 Sago 6

Grapes/Raisin 57 Pulse Processing Unit 5

Onion & Garlic Dehydration 36 Ginger 4

Coconut 35 Ester/Bio Fuel 4

Poly house/Floriculture/Hor.) 32 Sweet/Baby Corn 4

Guar Gum 37 Honey 3

Mushroom 21 Patchouli (medicinal plant) 3

Activity-wise break-up 953 ProjectsTissue Culture Laboratory 2

Vanilla 2

Passion Fruit Processing 1

Poultry Farm 1

Lemon Grass 1

Rice Mill 2

Seabuckthorn Fruit 1Misc. Spices 14 Pomegranates 3

Pickles/Sauces/Jam 12 Chicory 3

Fisheries /Aqua Agriculture 12 Ginning & cotton seeds 3

Winery Unit 12 Vermi Compost 3

Herbal Extracts 11 Coconut shell charcoal 2

Peas 10 Lavender Oil 2

Potato chips 10 Nutmeg/Pepper 2

Banana Ripening 9 Anticancer drug /Menthol mint 2

Gherkins 9 Cardamom/Organic compost 2

Pineapple 8 Cattle Feeds 2

Seabuckthorn Fruit 1

Solid Fuel from Agri. Waste 1

Stevia 1

Sugar Beet 1

Tea 1

Bio-Diesel from Jatropha 1

Mnf. Of snack foods &

soyabadi

1

Reefer Van 1

Project Development Facility

SFAC will provide financial support to farmers, Producer

Groups, Agripreneurs, Units in Agri-Export Zones, and

Agriculture graduates (called beneficiary) in theAgriculture graduates (called beneficiary) in the

preparation of bankable Detailed Project Reports (DPR)

through empanelled consultants/institutions. SFAC

provides fee for preparation of DPR.

Frozen Peas IQF units (14)

Guar gum processing units (18)

Processing/Cold Storage units funded by SFAC under VCA scheme

Udham Singh Nagar

Jodhpur

Bhavnagar

Onion & Garlic dehydration units (32)

Haryana

Cold Storage units (106)

Cold Storage units (28)

Mango processing units (44)

Grapes export /raisin /winery (48)

Cashew nut processing units (36)

Coconut Processing(22)

Ernakulam, Kannur, Thrissur, Kanhangad,

Kottayam, Malappuram, Pathanamthitta,

Kozhikkode, Palakkad, Melattur, Meppayur

Nashik

Krishnagiri

Chittoor

Bhavnagar

Udupi

KAVIL (ORNAMENTAL FISH BREEDING) KERALA

Good Greens India Pvt. Ltd. Chennai,

Tamil Nadu

(Gherkin export)

Megha Cashew Pvt.Ltd., Meghalaya

(Cashew)

KD Agro Industries, Meghalaya

(Pineapple processing)

Thank You

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