The Venture Capital Fund for Scheduled Tribes (VCF-ST) is a central government social sector initiative launched in February 2024 by the Ministry of Tribal Affairs (MoTA). The initial corpus earmarked for the Fund were Rs.50.00 crore out of which MoTA has released Rs.20 crore. An amount of Rs. 3.42 crore has been sanctioned till date out of which Rs.1.51 crore has been disbursed.
About Venture Capital Fund for Scheduled Tribes
| Objective | Promote entrepreneurship and financial inclusion within the ST community through concessional finance and incubation support |
|---|---|
| Launch Year | 2024 |
| Nodal Ministry | Ministry of Tribal Affairs |
| Managed By | IFCI Venture Capital Funds Ltd. |
| Financial Assistance (Overall) | The fund offers different types of financial instruments based on the stage of the business: |
| Equity and Debt Funding: Assistance ranging from ₹10 Lakhs to ₹5 Crores. | |
| Covers up to 75% of the project cost. | |
| Debt instruments include Non-Convertible Debentures (NCDs) and Optionally Convertible Debentures (OCDs) | |
| Incubation Funding: Up to ₹10 Lakhs per year for 3 years (total ₹30 Lakhs) for innovative start-up ideas in early stages. | |
| Interest Rates & Concessions | Standard Rate: 4% per annum. |
| Concessional Rate: 3.75% per annum specifically for women and disabled (Divyang) ST entrepreneurs. | |
| Funding Tenure | Up to 10 years, with a moratorium period of up to 36 months for debt instruments. |
| Eligibility Criteria | To qualify for funding, a business must meet the following primary requirements: |
| Ownership: At least 51% shareholding must be held by Scheduled Tribe (ST) entrepreneurs. | |
| Promoter Contribution: Promoters must contribute at least 15% of the project cost. | |
| Management Control: ST entrepreneurs must maintain management control of the company. | |
| Business Type: New or existing businesses in manufacturing, services, and allied sectors, including startups. | |
| Predecessor Status: Successor entities (like a company formed from a partnership) are eligible if they have been in operation for over 6 months with consistent ST ownership. | |
| Gender Target: At least 30% of the fund’s beneficiaries are preferred to be women entrepreneurs. |