Lok Sabha Question No. 2505 (UNSTARRED), answered on 2025-03-13
Subject: Financial Assistance to ST Entrepreneurs
Ministry: TRIBAL AFFAIRS
Asked by: Shri G Kumar Naik

## GOVERNMENT OF INDIA MINISTRY OF TRIBAL AFFAIRS

## LOK SABHA UNSTARRED QUESTION No. 2505

TO BE ANSWERED ON: 13.03.2025

## FINANCIAL ASSISTANCE TO ST ENTREPRENEURS

## 2505. SHRI G KUMAR NAIK:

Will the Minister of TRIBAL AFFAIRS be pleased to state:

(a) the details of eligibility criteria fixed under the Venture Capital Fund for Scheduled Tribes (VCF-STs) for ST entrepreneurs and updates to selection requirements thereof;

(b)  the  details  of  applications  received  and  the  selection  process  executed  during  the  last  five years including timelines and procedures followed therefor;

- (c) the details of companies approved for financial assistance during the said period, State-wise;

(d) the financial assistance provided to ST-owned companies including interest rates and returns on investment;

- (e) the details of awareness initiatives for ST entrepreneurs via print and electronic media; and

(f)  the  details  of  efforts  being  made  to  increase  the  scheme's  budget  allocation  for  ST entrepreneurs across the country?

## ANSWER

## MINISTER OF STATE  FOR TRIBAL AFFAIRS (SHRI DURGADAS UIKEY)

(a)         The  details  of  eligibility  criteria  under  the  Venture  Capital  Fund  for  Scheduled  Tribes (VCF-STs) for ST entrepreneurs is available at https://vcfst.in/index.html.

(b)        Subsequent to the launch of the scheme on 10 th February 2024, a total of 17 applications have been received by IFCI VCF Ltd. online. As per the scheme guidelines, the applications are processed through two level of committees viz. Screening Committee & Investment Committee. All the applications received are considered at Screening Committee and the applications which are  recommended  from  the  Screening  Committee  are  presented  in  the  subsequent  Investment Committee.

- (c)        The details of the companies approved for financial assistance under the scheme so far is given below:
- (d)         As  per  the  scheme  guidelines,  the  financial  assistance  provided  to  companies  under VCF-ST are between Rs.10.00 Lakh to Rs.5.00 Crore.  The financial assistance is provided at a concessional  rate  /  returns  on  investment  @  4%  p.a.  (3.75%  for  women/  Divyang  ST entrepreneurs).
- (e)         Regular awareness efforts are carried out amongst ST entrepreneurs about the fund by way of publicity in media through advertisements as well as by holding various conferences/meets, connecting entrepreneurs through social media and through webinars. Some of such efforts made so far are cited as below:

|   S. No. | Company name                | Industry        | State            | Sanctioned Amount (₹ Cr.)   | Sanction Year   |
|----------|-----------------------------|-----------------|------------------|-----------------------------|-----------------|
|        1 | Hemal Food Products Pvt Ltd | Food Processing | Chhattisgarh3.41 |                             | 2024-25         |
|        2 | Harleys India Pvt Ltd       | Food Processing | Telangana        | 5.00                        | 2024-25         |

## Webinars

- i. Conducted with 22 TBIs across 11 states to disseminate the scheme information amongst the prospective Scheduled Tribes (STs) within their incubation centre / innovation park.
- ii. Conducted with 4 State Agencies to create awareness amongst the prospective Scheduled Tribes (STs) through their State Channelising Agencies.
- iii. Conducted with 4 Industrial Bodies to disseminate the scheme guidelines and create awareness.
- iv. Conducted with training centres at Northeastern State.

## Physical Outreach

- i. 6 physical meeting have been attended / conducted with Ministry of MSME & NSIC, NSSH and Industry bodies incl. CII and DICCI.
- ii. 2 events have been conducted with Startup India Chapters incl. Start Up Tamil Nadu.
- iii. Organizing various webinars to inform the entrepreneurs about the scheme, doubt clearing sessions and handholding for application filing.
- iv. IFCI Venture is enabling programs / symposium in collaboration with Ministry of Tribal Affairs (MoTA) by inviting Venture Capitalists and Private Equity Investors in order to
5. bring together major Venture Capitalists and Impact Investors to discuss strategies for empowering tribal entrepreneurs and fostering inclusive growth.
- v. Participation in various events like Startup Mahakumbh, Advantage Assam 2.0, etc. to provide awareness about the scheme and simultaneously connecting with the ST entrepreneurs.

## Social Media Front

- i. Various Social Media posts including static posts, learning & educational contents were posted in various handles with support of an external agency.
- ii. The scheme was also registered with Investors connect portal of the Start Up India and the multiple posts were published through the forum.
3. (f)        The approved outlay of Rs. 50.00 crores for VCF-ST scheme is sufficient enough to cater the present requirements.

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