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.
- 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 unique feature of advancing loans from 10 lakhs to Rs. 15 Crore.
- 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.
- 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.
