It is a facility funded by the government of India through various financial institutions to provide financial support for preparation of bankable Detailed Projects Reports (DPRs) of agri-business ventures. SFAC will provide financial support to farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, and Agriculture graduates (called beneficiary) in the preparation of bankable Detailed Project Reports (DPR) through empanelled consultants/institutions. SFAC will provide for the cost of preparation of DPR depending upon the financial status of the agripreneur, size, location, activity and coverage on a case to case basis.
The beneficiary desirous of seeking assistance for preparation of DPR can approach the nearest empanelled consultant of the district in consultation with bank/financial institution along with the details /pre-feasibility of the proposed project for the recommendation of the bank/financial institution or SFAC at the State or Central level. The amount for preparing bankable DPR through our empanelled consultant of SFAC under PDF Scheme would be in the range of Rs.25,000 to Rs.1.00 lakh.
The bank/financial institution on being satisfied about the feasibility of the intending project will recommend it to SFAC for providing financial assistance for the preparation of DPR. Intending projects must be over Rs.15 lakhs (Rs.10 lakhs in projects located in backward district of States notified by Planning Commission, North Eastern States and other hilly States i.e. H.P., & J&K, Uttarakhand) in size.
Based on the activity and location of the project, SFAC will entrust preparation of DPR to one of the consultants on its panel.
SFAC will release cost of DPR preparation to the empanelled consultant. Fee will be paid to empanelled consultants in three stages i.e. 20% at Stage-I for preparation of bankable DPR, 40% at Stage-II for sanction of term loan by bank/Financial Institution with VCA provision and 40% at Stage-III after sanction/disbursement of VCA by SFAC for projects categorized into 4 categories i.e. Category-I (Rs.10.00 lakh to Rs.25.00 lakh), Category-II (above Rs.25.00 lakh to Rs.1.00 Crore), Category-III (above Rs.1.00 Crore to Rs.3.00 Crore) & Category-IV (above Rs.3.00 Crore to Rs.5.00 Crore), fees being Rs.25000, Rs.50000, Rs.75000 and Rs.100000 respectively.
The DPR received from SFAC or directly from the consultant will be examined in detail by the lending bank/financial institution for sanction of term loan and release of venture capital. A copy of the term loan sanction advice to the borrower will also be addressed to SFAC for its record.
Financial assistance to State SFACs for undertaking promotional activities for agribusiness development, training and visits etc. of entrepreneurs setting up the identified Agribusiness projects will also be provided under PDF.
Project Development Facility may be utilized to engage the services of State SFACs, State Agricultural Universities and others and/or any other competent agency/firm/consultant to vigorously publicize the benefits of the Venture Capital Scheme to prospective entrepreneurs and producer organizations.