PROJECT VENTURE FUND FOR SCHDULED CASTES

DEN Platform is making all out efforts to guide the Younger Perspective Entrepreneurs TO ESTABLISH  FACTORY/UNIT or existing industrialists to upgrade the unit. The information on venture capital funds given below shall be helpful  in deciding  the idea of establishing New projects with total investments Up to Rs 5.00Cr  or up gradation of existing unit.



​BACKDROP

• In order to promote entrepreneurship among the scheduled castes and to provide concessional finance to them, Government of India under the Ministry of social justice and Empowerment ,department of social justice and empowerment through
• IFCI has set up a venture capital fund for schedules castes. The initial capital of Rs 200 Cr was kept which can be supplemented every year.
• The scheme is of central sector scheme as such the government of India under SEBI regulation is ANCHOR INVESTOR and Nodal agency(Assets management company)  is IFCI VENTURE CAPITAL FUNDS Ltd.

Eligibility Criteria for setting up of unit with financial assistance upto Rs5.00cr.

• The projects/unit being set up in manufacturing and service sector ensuring assets creation out of the funds deployed in the unit shall be considered.
• While selecting the SC entrepreneurs, women SC entrepreneur would be preferred.
• Companies having 60% stake holding by SC entrepreneur for the last 12 months with management control is a mandatory condition, documentary proof to be submitted.
• Minimum 25% of total project cost must be financed by banks.

Other Requirements;-

Purpose: To provide concessional finance to SC entrepreneurs

Investment focus; The projects/unit being set up in manufacturing and service sector ensuring assets creation out of the funds deployed. Existing companies proposing capacity expansion and diversification projects are also eligible.

Nature of Financial Assistance; Equity, compulsorily convertible preference share (maximum up to 25% of the corpus), non-convertible debentures, Debt/Subordinate loans.

Tenor of Financial Assistance; up to 6 years in a company

Moratorium on principal ; on cases to case basis but not more than 36 months from the date of investment, interest shall be payable from the date of investment in the company at a regular interval.

Investment Size;Rs 50.00 Lacs to Rs 15.00 Cr, however aggregate assistance not more than 2 times the current net worth of the company.

Expected Returns through Investment;- Yields return on Equity 15%,Debt /convertible instruments=10%

Funding pattern: Financial assistance upto Rs 5.00 Cr- project maximum up to 75% shall be  funded and balance 25% shall be contributed by promoters.

Exit Mechanism; Exit through payments out of operations, buy back/redemption by promoters or through strategic investments or any other exit process.

Security; The assets of the project being funded/assisted under the scheme shall be mortgaged or charged to the bank. The project assets includes land, building, plant &machinery and rights on license/patents etc
In view of the foregoing an individual/Corporate/partnership concern can choose any of the following projects with total investments up to Rs 5.00 cr and fulfill the cherished desire of becoming a SUCCESSFUL ENTREPRENEUR.

DEN TEAM SHALL PROVIDE ALL POSSIBLE HELP TO PREPARE THE PROJECT PAPERS FOR GETTING THE FINANCIAL ASSISTANCE .
 
Note prepared by SATISH KUMAR SHERVAN-Ex Chief Manager

---