Scheme of 'Venture Capital Fund for Scheduled Castes' for Entrepreneurs
“Entrepreneurship” means to entrepreneurs managing businesses which are oriented towards innovation and growth technologies. The spirit of the above-mentioned fund is to support those entrepreneurs who will create wealth and value for society and at the same time encouraging profitable business.
This scheme aims to promote entrepreneurship among the scheduled castes and to provide concessional finance to them, Industrial Finance Corporation of India(IFCI) will set up a Venture Capital Fund for Scheduled Castes and to provide an initial capital of Rs. 200 crore, which can be supplemented per year
Under the scheme, The financial assistance is given up to Rs.15.00 Crore for a period up to 6 years would be provided to the SC entrepreneurs.
This scheme aims to achieve following goals:
- To promote entrepreneurship among the scheduled caste population in India.
- To Promote entrepreneurship amongst the Scheduled Castes who are oriented towards innovation and growth technologies in India
- To provide concessional finance to the scheduled caste entrepreneurs, who will avail the benefit of wealth and value for society and at the same time will promote profitable businesses. The assets so created will also create forward/ backward linkage. It will further create chain effect in the locality.
- To increase financial inclusion for SC entrepreneurs and to motivate them for further growth of SC communities.
- To develop SC entrepreneurs economically strong. So that they can enhance their business furthermost.
- To enhance direct and indirect employment generation for SC population in India
To avail the benefits of this scheme, student should fulfill the following conditions:
- The projects/units being set up in manufacturing and services sector ensuring asset creation out of the funds deployed in the unit shall be considered;
- While selecting the SC entrepreneurs, women SC entrepreneurs would be preferred.
- Companies having at least 60% stake holding by Scheduled Caste entrepreneurs for the past 12 months with management control
- Documentary proofs of being SC will have to be submitted by the entrepreneurs at the time of submitting the proposals
- The SC promoters of Investee Company will not dilute their stake below 60% in the company till the exit under the scheme. However, in the event of any conversion of quasi-equity instrument under the scheme, strategic investments, buyouts etc, which result in dilution of stake of SC Entrepreneur, a prior written approval from Asset Management Company (AMC) would be required
- The companies applying for assistance of more than Rs. 5 Crore, shall preferably get their project appraised by the banks / FIs before approaching for assistance under the scheme.
- For Companies with sanctioned assistance of above Rs. 5 Crore, the money released by the Trust/Fund Manager would be in proportion to the loan tranche released by the Bank.
Entrepreneurs belonging to Scheduled Castes.
The benefits of this scheme are as following:
|1.||Name of Sponsoring Agency||Department of Social Justice and Empowerment, Ministry of Social Justice and Empowerment.|
|2.||Size of the Scheme||Initial Capital of Rs. 200 Crore, which can be supplemented every year.|
|3.||Nature of Scheme||Central Sector Scheme|
|4.||Structure of the scheme||The scheme would be setup as a fund registered under AIF regulations 2012 under SEBI with GoI as the Anchor investor and IFCI Ltd. as Sponsor investor.|
|5.||Name of Asset Management Company (AMC) / Nodal Agency||IFCI Venture Capital Funds Ltd.|
|6.||Duration of the fund||10 years from the date of implementation with provision of 2 years as extension.|
|7.||Closings under the fund||Closing under the fund shall not be more than six months from the date of in-principal approval under AIF regulations of SEBI and before the registration of the Fund with SEBI. In case, some investors commit funds after the registration of fund, an amendatory Trust deed would be again submitted to the SEBI for approval for accommodating commitments of these investors.|
|8.||Drawdown period:||The capital contributions towards corpus of fund can be drawn upto 5 years from the date of Closing|
|9.||Investment Period||5 years from the date of Closing.|
|10.||Cost involved in the Scheme||1. Expenses of fund: 2% (One time) of the fund corpus,
to be expended over the life of the fund.
2. Management fees to AMC: A management fee @ 1.5 % p.a. of the aggregate Capital Commitment during the commitment period (up to drawdown period) and thereafter management fees will be @ 1.5% p.a. of the outstanding Capital Contributions.
|11.||Return to the Investors of the fund||
|12.||Approximate number of projects to be Financed||It is assumed that about 32*no. of projects shall be assisted out of Rs. 200 Crore. The above-mentioned expenses and management fees shall also be drawn out of Rs. 200 Cr. The assumptions made for achieving the above no of deals is as below: 1. Financial assistance up to Rs. 5 Crore - 12 deals*; 2. Financial assistance above Rs. 5 Crore – 20 deals*. 3. Further, the no of investee companies in case of fund corpus of Rs. 250 Cr., Rs. 350 Cr. And Rs. 500 Cr. (*The figures may change & vary depending on the quality and suitability/viability of cases)|
|13.||Alterations||On any suggestions from GOI, requirements of SEBI, legal and tax related issues etc. the above conditions terms/structure may vary, may get modified /amended from time to time.|
How To Apply
Contact to any of the followings:
- Student can approach to Dalit Indian Chamber of Commerce & Industry (DICCI) and its various chapters. Or
- By Approaching institutions under Ministry of Social Justice and Empowerment such as National Scheduled Castes Finance and Development Corporation (NSFDC) and other State Finance Institutions for Schedule Castes.Or
- For more information, Students can attend Trade Fair/ Exhibitions/Seminars.Or
- Contact to The Technical Consultancy Organizations (TCO) promoted by IFCI and other institutions, whose primary objective is to give Technical consultancy to new entrepreneurs, shall also be advised and engaged to source the proposals from the SC entrepreneurs. They will also popularize the fund and help the entrepreneurs.
Central Government of India
Ministry of Social Justice and Empowerment
Date of Launch
Business, Education, Entrepreneurship
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