Poultry Venture Capital Fund Scheme
The poultry venture capital fund scheme is a scheme promoted by NABARD and Ministry of Micro, Small and Medium Enterprises for promoting poultry farming activity. The scheme envisages strengthening of the poultry industry by generating employment or entrepreneurship opportunities in backward areas. In this article, we look at the poultry venture capital fund scheme in detail:
Poultry Venture Capital Fund Scheme
The poultry venture capital fund scheme:
- Encourages poultry farming activity especially in non-traditional states and provides employment opportunities in backward areas;
- Improves production of poultry products which have ready market all over country;
- Improves productivity of unscientifically run units through technology upgradation;
- Provides quality meat to consumers in hygienic conditions, and improves hygienic sale of poultry meat and products in urban areas and neighbourhood societies through poultry dressing and marketing outlets;
- Improves productivity and facilitates rearing of other poultry species like quails, ducks, turkeys, which have good potential.
Assistance provided under Poultry Venture Capital Fund Scheme
The following assistance is provided under the Poultry Venture Capital Fund Scheme:
- Entrepreneurs contribution (margin) – for loans upto Rs.1 lakh, banks may not insist on margin as per RBI guidelines. For loans above Rs.1 lakh: 10% (minimum).
- Example: If a poultry business is to be setup with a total investment of Rs.10 lakhs, then the Entrepreneurs contribution or investment must be atleast Rs. 1 lakh.
- Back ended capital subsidy – 25% of outlay (33.33 % for SC/ST farmers and NE states including Sikkim)
- Explanation: In a back ended capital subsidy scheme, the Entrepreneur would have to avail and bank loan and pay the installments due. The final loan installments equal to 25% of the total investment amount would be adjusted as back ended capital subsidy.
- Effective bank loan (excluding eligible subsidy as above) – balance portion, minimum 40% of outlay
- Explanation: Bank loan must be obtained for a minimum of 40% of the total project cost to avail subsidy. Therefore, if the total project is Rs.10 lakhs, then the bank loan component must be atleast Rs.4 lakhs.
Who can apply for Scheme
The following entities can apply and obtain assistance under the poultry venture capital fund scheme:
- Farmers
- Individual Entrepreneurs
- NGOs
- Private Limited Company
- Cooperatives
- Groups of unorganised and organised sector
Where to apply
The poultry venture capital fund scheme is promoted by NABARD. National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India having headquarters based in Mumbai. The mission of NABARD is to promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives.
To start or manage a business in India, visit www.complianceindia.co.in.