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Punjab Agro Industries Corporation Limited




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Punjab Small Farmers' Agri-Business Consortium

Small Farmers’s Agri-Bussiness Consortium (also called Central SFAC) is a Society under Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India to implement the schemes of projects development facility and venture capital assistance for development of agribusiness in the country in association with commercial banks.

Punjab Small Farmer’s Agri Business Consortium (PSFAC) is a  registered  Society under the Societies Registration Act, 1860 on the pattern of Central SFAC to facilitate setting up of agri-business ventures in close association with banks, catalyze private investment in setting up of agri-business projects and thereby providing assured market to producers, strengthen backward linkages of agri-business projects with producers, assist farmers, producer groups, and Agriculture graduates to enhance their participation in value chain through Project Development Facility and arrange training and visits, etc., of agri-preneurs for setting up of identified agri-business projects.

Venture Capital
Under this scheme Venture Capital Assistance is being provided by Government of India through PSFAC in the form of equity on the recommendations of the bank financing the project. This equity capital will be repayable back to SFAC after the project has repaid the term loan of the financing bank. SFAC will ordinarily provide Venture Capital Assistance, which will be the lowest of the following:

  • 26% of the promoter's equity;
  • Rs. 50.00Lakhs.

Eligible Projects
The project should be in agriculture or allied sector or related to agriculture services. Poultry and dairy projects are also covered under the Scheme. Further the Project should provide assured market to farmers/producer groups should encourage farmers to diversify into high value crops to increase farm incomes and the Project should be accepted by banks for grant of term loan.

Proceedure to avail Higher Venture Capital Assistance
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 loan, subject to maximum of Rs. 3.00 Crore. Total Cost of projects is not more then Rs.10 Crore.


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