When it comes to agriculture, the venture capital assistance program has been a godsend.
The agricultural sector in India is the largest private sector in the country. As people’s eating habits shift across the country, there is a great need for reasonably priced food products, which means that the industry has a great deal of room to expand.
The agricultural industry in India is a success thanks to the way it was framed. India’s economy relies heavily on agriculture. The agricultural sector provides income for more than 70 per cent of rural households. The agricultural industry in India is vital to the country’s economy. About 60% of the workforce and 17% of GDP come from agriculture. As a result, the Indian government has a pressing obligation to support the agricultural sector in every possible way.
What exactly is a Venture Capital Assistance Scheme?
Scheme administered by the Small Farmers Agri-business Consortium; also known as the Venture Capital Assistance Scheme. The success and prosperity of farmers and their agricultural enterprises are the intended outcome of this plan. Loans to farmers whose projects meet the criteria set out by the Venture capital assistance scheme will help them acquire the necessary funds to see those projects through to fruition. It’s one of the country’s finest initiatives to promote agricultural entrepreneurship. To make up for funding shortfalls, the program provides zero-interest loans to the agricultural sector.
A program like this is a huge boon to people and communities that want to pursue agriculture as a profession and launch their businesses. With the help of the scheme, agribusiness entrepreneurs can get financial backing for their ventures. With the help of the Project Development Facility, potential investors can get the funding they need to create detailed project proposals that can be taken seriously by financial institutions.
Who Can Apply?
The following individuals are eligible to receive funding from the Venture Capital Assistance scheme:
- Partnership/ Proprietary firms.
- Producer Groups.
- Self-help Groups (SHG)
- Agri-export units.
- Agriculture graduates taking up agri-business projects.
Institutions Eligible for Financing in Venture Capital Assistance Scheme
Nationalised banks, SBI & its Subsidiaries, IDBI, SIDBI, NABARD, NCDC, RRBs, and other State Financial Corporations are all examples of banks and financial institutions regulated by the Reserve Bank of India that have more than 50% ownership by the Central or State Government.
Goals of the Venture Capital Assistance Scheme
The scheme’s primary goals in providing funding for startups are as follows:
- To assist and aid entrepreneurs in establishing an agribusiness venture that is acceptable to banks and other financial institutions.
- With the right policies in place, we can help steer agricultural entrepreneurship in the right direction.
- To entice private Venture Capital Assistance Scheme into agribusiness endeavors.
- Facilitate agribusiness initiatives’ backward linkages.
- To schedule training sessions and guarantee regular visits from Agribusiness owners.
- The current state and national SFAC must be fortified.
- The Project Development Facility is being used to encourage farmers to form SHGs.
The purpose of the Venture Capital Assistance Scheme is to help agribusinesses across the country succeed. Farmers must be prioritized for the time being, and they must be given every chance to improve their situation so that they can help the agricultural sector and the Indian economy as a whole. All that needs to be done is for people to learn about these scams. We at Egniol are committed to assisting you with everything you need to avail the benefits of the venture capital assistance scheme because our team of experts is just a click away.