Scheme of Venture Capital Fund for Scheduled Castes

Scheme of Venture Capital Fund for Scheduled Castes Latest News

The Scheme of Venture Capital Fund for Scheduled Castes is enabling Scheduled Caste entrepreneurs to establish technology-driven manufacturing enterprises, generate quality employment and contribute to India’s vision of self-reliance.

About Scheme of Venture Capital Fund for Scheduled Castes

• It was launched in 2014-15 by the Ministry of Social Justice and Empowerment.
• Purpose: To provide concessional finance to SC entrepreneurs and priority is given to Women/Disabled SC Entrepreneurs
• Initial Capital: Initial Capital of the Fund was Rs. 200 crore, which is to be supplemented every year.
• Structure of the scheme: The Fund has been set up and registered under AIF regulations 2012 under SEBI, with GoI as the Anchor investor and IFCI Ltd. as Sponsor investor.
• It has the unique feature of advancing loans from Rs. 10 lakhs to Rs. 15 Crore.
• Funding pattern
  • Financial assistance upto Rs 5 Crore – Investment under this category shall be funded maximum upto 75% of the project cost and the balance 25% of the project cost will be funded by the promoters;
  • Financial assistance above Rs. 5 Crore: Investment under this category shall be funded maximum upto 50% of the project cost. At least 25% of the project cost has to be financed by bank/other institutions. Balance 25% of the project cost will be funded by the promoters.

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Objectives of the Venture Fund

• It is a social sector initiative to be implemented nationally in order to promote entrepreneurship amongst the SCs who are oriented towards innovation and growth technologies.
• To provide concessional finance to the SC entrepreneurs, who will create wealth and value for society and at the same time will promote profitable businesses.
• To increase financial inclusion for SC entrepreneurs and to motivate them for further growth of SC communities.
• To develop SC entrepreneurs economically.
• To enhance direct and indirect employment generation for SC population in India.

Source: PIB