Venture Capital Assistance
Small Farmers' Agri-Business Consortium (SFAC) would provide Venture Capital to qualifying projects on the recommendations of the bank/financial institution financing the project. This venture capital will be repayable back to SFAC after the repayment of term loan of lending bank/financial institution as per original repayment schedule or earlier.
Eligible Cost of Project
Higher Venture Capital Assistance can be considered by SFAC to deserving projects on merit provided:
The beneficiary wil repay the Venture Capital in lump sum to SFAC after full repayment of the bank's term loan as per the original schedule, or earlier.
Eligible Financing Institutions
All banks/financial institutions notified by the Reserve Bank of India where the ownership of the Central/State Governments is more than 50% such as nationalised banks, SBI & its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, RRBs & State Financial Corporations.
The Scheme will be implemented during 2012-17 in the XII Plan with a central assistance of Rs. 500.00 Crores.
The Scheme will be implemented by Small Farmers’ Agribusiness Consortium (SFAC), a registered society functioning under Department of Agriculture & Cooperation, Ministry of Agriculture.
In any case of dispute, if any, arising out of this MOU may be resolved through mutual consultation failing which it may be done by way of arbitration by a sole arbitrator chosen by the bank/FI and SFAC as per arbitration and conciliation Act, 1996 and venue of the Arbitration will be New Delhi.