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QUALIFYING CRITERIA FOR PROJECTS |
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1. Project is dependent upon agricultural or allied produce.
2. Project provides direct access to producers (firm) like assured markets.
3. Project should encourage farmers to diversify into high value crops so as
to increase farm income.
4. Project is accepted by lending bank for grant of project loan after
satisfactory techno-economic commercial feasibility.
The amount of Venture Capital to be sanctioned to Qualifying projects shall be the lowest of the following:
(i) 10 % of the total project cost
(ii) 26 % of the project equity
(iii) or Rs. 75.00 lakhs.
Lending banks will examine the qualifying projects for techno-economic feasibility and recommend on a case-to-case basis, the quantum of Venture Capital assistance. For projects up to 10.00 crores, the lending banks are authorised to automatically negotiate and conduct the quantum of Venture Capital. For project above 10 crores, lending banks will refer them to Central SFAC. By suitable agreement with SFAC, participating lending banks will be provided with appropriate corpus by SFAC so that they can directly fund qualifying projects with Venture Capital Assistance.
The project has very good potential for increasing investment in the agribusiness sector, which is at present very meagre. The state having a diversity of crops, most of them commercial horticultural crops can benefit from the schemes.
State SFAC has already forwarded three projects under the programme to Central SFAC for sanction of Venture Capital Assistance.
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