Camps to be held in Rajasthan from 6 to 16 March
Jaipur, 6 March: With an objective to further empower Farmer Producer Companies, the Small Farmers’ Agribusiness Consortium (SFAC) has announced the roll out of a new scheme called the Equity Grants and Credit Guarantee Fund Scheme (EGCGFS).
In order to generate more awareness about this scheme, SFAC will conduct camps in West Bengal, Karnataka & Rajasthan in the eighth quarter. These camps are being attended by Department of Agriculture, Department of Horticulture, Department of Animal Husbandry and some pharmacy producing companies with their respective research intuitions. Several banks like Bank of Baroda, State Bank of India and Punjab National Bank will also form a part of this camp.
The Equity Grant Fund Scheme enables eligible FPCs to receive a grant equivalent in amount to the equity contribution of their shareholder members in the FPC, subject to a cap of Rs 10.00 lakh, thus enhancing the overall capital base of the FPC. The Scheme shall address nascent and emerging FPCs, which have paid up capital not exceeding Rs. 30 lakh as on the date of application. It shall be cash infusion equivalent to the amount of share holder equity in the FPC subject to a cap of Rs.10 Lakh per FPC.
The Equity Grant Scheme aims at enhancing viability and sustainability of FPCs, increasing their credit worthiness and enhancing their shareholding of members to increase their ownership and participation in the FPC. The Equity Grant shall be a cash infusion equivalent to the amount of shareholder equity in the FPC subject to a cap of Rs 10.00 lakh per FPC and shall be directly transferred to the bank account of the FPC. The FPC will be required to issue additional shares to its shareholder members within 45 days of receiving the Equity Grant. The maximum grant per category of shareholder would be Rs 1000 for individual shareholders and a maximum of Rs 20,000 for a group of individual shareholders.
The Credit Guarantee Funds Scheme has been set up with the primary objective of providing a Credit Guarantee Cover to Eligible Lending Institution (ELI) to enable them to provide collateral free credit to FPCs by minimising their lending risks in respect of loans not exceeding Rs. 100.00 lakh. Under this scheme, Eligible Lending Institutions or ELIs will be given a maximum guarantee cover equivalent to 85 per cent of the eligible sanctioned credit facility or Rs 85 lakh, whichever is lower.
According to Mr. Sumanta Chaudhuri, Managing Director, SFAC, “The aim is to facilitate providing greater strength to FPCs by developing close associations with banks. This initiative aims at catalyzing private investments in promoting FPCs up and, thereby providing assured market to producers for increasing rural income and employment.”
Details of Camps to be held in Rajasthan
|Name of State
|Name of District||Category of camps||Block / Tehsil||Number of FPO/FPC||Number of FPO/FPC||FPO/FPC (NABARD and departments/Non SFAC)||Tentative dates for Organizing camps|
|Bhilwara||Block Level||1.Tal-Shahpura Bhilwara-1
3.Kotri – 3