VENTURE CAPITAL FUND FOR SCHEDULED TRIBES (VCF-ST)

Brief

Venture Capital Fund for Scheduled Tribes (VCFST), a scheme was launched on February 10, 2024 by Hon’ble Union Minister for Tribal Affairs (MoTA), Government of India (GoI) Shri Arjun Munda in the gracious presence of Hon’ble President Smt. Draupadi Murmur. The scheme Venture Capital Fund for Scheduled Tribes (VCFST) is launched to promote entrepreneurship and to support innovative ideas through Technology Business Incubators by providing concessional finance to the companies promoted by Scheduled Tribes entrepreneurs.

Eligibility

• The projects/units being setup in the 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 units shall be considered.
• A. For Companies applying for assistance up to Rs.50 lakh: Companies having :
• i. at least 51% shareholding by Scheduled Tribes entrepreneurs for the past 6 months with the management control OR;
• ii. a new Company provided that the new company is a successor entity of Proprietary Firm or One Person Company (OPC) or Limited Liability (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 Tribes entrepreneurs with management control.
• B. For Companies applying for assistance above Rs.50 lakh: Companies having :
• i. At least 51% shareholding by Scheduled Tribes entrepreneurs for the past 12 months with management control OR;
• ii. a new Company provided that the new company is a successor entity of Proprietary Firm or One Person Company (OPC) or Limited Liability (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 Tribes entrepreneurs with management control.
• For Technology Oriented Innovative Projects:
• A. Eligibility Criteria for technology oriented innovative projects Innovative ideas selected by Technology Business Incubators (TBIs) for incubation funding to cover the cost of carrying out innovation projects subject to a ceiling of Rs.10 lakhs on an average year for a period of three years aggregating Rs.30 lakhs subject to satisfactory progress. Or;
• B. New Companies having at least 51% shareholding by first time Scheduled Tribes entrepreneurs who have been working in technology oriented innovative projects:
• i. With the support of incubation centers at IITs, NITs, Premier Business Schools, Universities, Institutions, Medical Colleges, NSTEDB under Department of Science & Technology (DST) or supported by corporates, with good potential of commercialization and project is at implementation stage.
• ii. Projects sanctioned by Departments/Ministries of Government of India after due appraisal.

Fund / quantum

• The initial corpus to begin the scheme is Rs.21.50 crore with Rs.20 crore contribution by Ministry of Tribal Affairs, Government of India and Rs.1 crore contribution by Tribal Cooperative Marketing Development Federation of India.

Tenure

• Active

Benefit tags

• Funding

• Funding assistance from Rs.10 lakh to Rs.5 crore
• Funding of up to Rs.30 lakhs over a three-year period as equity (Technology Oriented Projects)
• Coupon - 4% p.a. (3.75% for women/ Divyang ST entrepreneurs)
• Investment Period in Company – Up to 10 years including moratorium upto 36 months.

• The projects/units being setup in the 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 units shall be considered.

• A. For Companies applying for assistance up to Rs.50 lakh: Companies having :

• i. at least 51% shareholding by Scheduled Tribes entrepreneurs for the past 6 months with the management control OR;

• ii. a new Company provided that the new company is a successor entity of Proprietary Firm or One Person Company (OPC) or Limited Liability (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 Tribes entrepreneurs with management control.

• B. For Companies applying for assistance above Rs.50 lakh: Companies having :

• i. At least 51% shareholding by Scheduled Tribes entrepreneurs for the past 12 months with management control OR;

• ii. a new Company provided that the new company is a successor entity of Proprietary Firm or One Person Company (OPC) or Limited Liability (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 Tribes entrepreneurs with management control.

• For Technology Oriented Innovative Projects:

• A. Eligibility Criteria for technology oriented innovative projects Innovative ideas selected by Technology Business Incubators (TBIs) for incubation funding to cover the cost of carrying out innovation projects subject to a ceiling of Rs.10 lakhs on an average year for a period of three years aggregating Rs.30 lakhs subject to satisfactory progress. Or;

• B. New Companies having at least 51% shareholding by first time Scheduled Tribes entrepreneurs who have been working in technology oriented innovative projects:

• i. With the support of incubation centers at IITs, NITs, Premier Business Schools, Universities, Institutions, Medical Colleges, NSTEDB under Department of Science & Technology (DST) or supported by corporates, with good potential of commercialization and project is at implementation stage.

• ii. Projects sanctioned by Departments/Ministries of Government of India after due appraisal.

• The initial corpus to begin the scheme is Rs.21.50 crore with Rs.20 crore contribution by Ministry of Tribal Affairs, Government of India and Rs.1 crore contribution by Tribal Cooperative Marketing Development Federation of India.

• Active

Online / portal

Official application / information link: https://vcfst.in/

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