Venture Capital Assistance Scheme

  • Yes
  • No


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.

Qualifying Projects:

  • The project should be in agriculture or allied sector or related to agricultural services.
  • Poultry and Dairy projects are also covered under the scheme.
  • The project should provide an assured market to farmers/producer groups.
  • The project should encourage farmers to diversify into high value crops.
  • The project should be accepted by banks/financial institutions for grant of term loan.

Eligible Cost of Project:

  • Minimum  Rs. 10.00 lakh
  • Maximum upto Rs. 500.00 lakh

Higher Venture Capital Assistance can be considered by SFAC to deserving projects on merit provided:

  • Provision for higher VCA has been appraised and approved by the sanctioning authority of term loans, subject to a maximum of Rs. 3.00 crore.
  • The total cost of the project is not more than Rs. 10.00 crore.
  • The projects are located in the North Eastern Region (NER) and other pre-identified districts declared backward by the Backward Regions Grant Fund Scheme.

The beneficiary will 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.

Implementation Period:

The Scheme will be implemented during 2012-17 in the XII Plan with a central assistance of Rs. 500.00 Crores.

Implementation Agency:

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.

Apply for VCAS

List of documents required for processing the Venture Capital Assistance proposal:

  • Application on standard format available on our website.
  • Promoter's request letter addressed to the Managing Director, SFAC, New Delhi on original letterhead of firm/company.
  • Sanction letter of Sanctioning Authority addressed to recommending branch.
  • Bank approved appraisal/process note bearing signature of sanctioning authority.
  • Potential impact on small farmer producers  (a) Social impact (b) Environmental impact (c) Risk Analysis  (d) Replication Factor.
  • Specific recommendation with amount of VCA on Bank's Original letterhead with date and dispatch     number duly signed by the Branch Manager on each page.
  • Implementation Schedule confirmed by the bank.
  • Up-to-date statement of account of term loan and cash credit (if sanctioned).
  • Equity Certificate (a) CA Certificate in case of partnership or proprietorship firm (b) Form-2, Form-5 and   Form-23 filled with ROC for company.
  • List of farmers (backward linkage) confirmed by promoter and bank.
  • Affidavit of promoter that they have not availed VCA in the past from SFAC.
  • Field inspection report of bank official as on recent date.


Title Size Detail

PDF icon Application Form for VCAS

137.84 KB


Validity From
Validity To
Content Left Icon
general services