Venture Capital Fund for Scheduled Castes (VCF-SC)

Brief

Venture Capital Fund for Scheduled Castes (VCF-SC), a scheme launched by the Ministry of Social Justice and Empowerment (MoSJE), Government of India (GOI) was launched in January 2015 for promoting entrepreneurship and provide concessional finance to the companies promoted by Scheduled Caste entrepreneurs.

Eligibility

• The projects/units being set up in manufacturing, services, and allied sector, including start-ups and units being incubated in the technology business incubators, ensuring asset creation out of the funds deployed in the unit shall be considered.
• For Companies applying for assistance up to Rs. 50 lakh: Companies having at least 51% shareholding by Scheduled Castes entrepreneurs for the past 6 months with management control OR; a new Company provided that the new Company is a successor entity of a Proprietary Firm or Partnership Firm or One Person Company (OPC) or Limited Liability Partnership (LLP) or any other establishment incorporated under any law in force with sound business model which has been in operation for over 6 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.
• For Companies applying for assistance above Rs. 50 lakh: Companies having at least 51% shareholding by Scheduled Castes entrepreneurs for the past 12 months with management control OR; a new Company provided that the new Company is a successor entity of a Proprietary Firm or Partnership Firm or One Person Company (OPC) or Limited Liability Partnership (LLP) or any other establishment incorporated under any law in force with sound business model which has been in operation for over 12 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.

Fund / quantum

• Rs. 10 lakhs to Rs. 15 Crore. Aggregate assistance not more than two times the current net worth of the Company.
• Investment under the fund will be categorized as follows: 1. 2. Financial assistance upto Rs.5 Crore - Investment under this category shall be funded maximum upto 75% of the project cost and the balance 25% of the project cost will be funded by the promoters or through Govt subsidy under various schemes of central or state Govt.; Financial assistance above Rs. 5 Crore – Investment under this category shall be funded maximum upto 50% of the project cost. At least 25% of the project cost shall be funded by promoters or through Govt subsidy under various schemes of central or state Govt., and balance 25% of the project cost can be funded either by promoters or by the bank or any other Financial Institutions as the case may be. In cases where Govt. subsidy is available, the promoters will have to contribute at least 15% of the project cost.

Tenure

• Active

Benefit tags

• Funding

• Financial assistance from Rs. 10 lakhs to Rs. 15 Crore
• Coupon - 4% p.a. (3.75% for women/ Divyang SC entrepreneurs)
• Investment Period in Company – Up to 10 years including moratorium upto 36 months.

• The projects/units being set up in manufacturing, services, and allied sector, including start-ups and units being incubated in the technology business incubators, ensuring asset creation out of the funds deployed in the unit shall be considered.

• For Companies applying for assistance up to Rs. 50 lakh: Companies having at least 51% shareholding by Scheduled Castes entrepreneurs for the past 6 months with management control OR; a new Company provided that the new Company is a successor entity of a Proprietary Firm or Partnership Firm or One Person Company (OPC) or Limited Liability Partnership (LLP) or any other establishment incorporated under any law in force with sound business model which has been in operation for over 6 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.

• For Companies applying for assistance above Rs. 50 lakh: Companies having at least 51% shareholding by Scheduled Castes entrepreneurs for the past 12 months with management control OR; a new Company provided that the new Company is a successor entity of a Proprietary Firm or Partnership Firm or One Person Company (OPC) or Limited Liability Partnership (LLP) or any other establishment incorporated under any law in force with sound business model which has been in operation for over 12 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.

• Rs. 10 lakhs to Rs. 15 Crore. Aggregate assistance not more than two times the current net worth of the Company.

• Investment under the fund will be categorized as follows: 1.

1. Financial assistance upto Rs.5 Crore - Investment under this category shall be funded maximum upto 75% of the project cost and the balance 25% of the project cost will be funded by the promoters or through Govt subsidy under various schemes of central or state Govt.; Financial assistance above Rs. 5 Crore – Investment under this category shall be funded maximum upto 50% of the project cost. At least 25% of the project cost shall be funded by promoters or through Govt subsidy under various schemes of central or state Govt., and balance 25% of the project cost can be funded either by promoters or by the bank or any other Financial Institutions as the case may be. In cases where Govt. subsidy is available, the promoters will have to contribute at least 15% of the project cost.

• Active

Online / portal

Official application / information link: https://www.vcfsc.in/index.html

Source listing: https://www.startupindia.gov.in/content/sih/en/government-schemes.html