Venture Capital Fund for Scheduled Castes: Objectives

Venture Capital Fund for Scheduled Castes: Objectives

Question - Good governance involves creation of equal opportunities for members of minority communities. Discuss the objectives of the Venture Capital Fund for Scheduled Castes recently launched by the Government of India.

• Ministry of Social Justice & Empowerment has launched the Venture Capital Fund for Scheduled Castes/SC

• IFCI is the nodal agency for this fund

Objectives

• This is a social sector initiative to be implemented on nationwide basis for promoting entrepreneurship among SC

• It also aims to promote innovation and growth technologies among SC entrepreneurs

• As per this scheme, SC entrepreneurs will be provided concessional finance to create wealth and promote profitable businesses

• Aim is to create forward/backward linkage leading to a chain effect in the community

• Scheme also aims to increase financial inclusion for SC entrepreneurs

• It aims to motivate these entrepreneurs for further growth of SC communities

• Economic development of SC entrepreneurial ventures is also envisaged

• Direct as well as indirect job creation for the Indian population is another objective of this scheme

Facts and Stats

• Women SC entrepreneurs will be give preference while selecting beneficiaries of the scheme

• Scheme aims to help companies with minimum of 60% stake holding by SC entrepreneurs for coming 12 months with management control

• Companies wanting assistance of more than INR 5 crore will be appraised by FIs/Banks

• For companies sanctioned assistance of more than INR 5 core, money released by trust or fund manager is equivalent to loan tranche by the bank