SFAC VCA Guidelines-Hindi-English31!03!2014

5/24/2018 SFAC VCA Guidelines-Hindi-English31!03!2014

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ckjgoha ;kstuk 2012&2017

FOR

AGRIBUSINESS DEVELOPMENT

OPERATIONAL GUIDELINES

XIIth Plan (20122017)


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2 Operational Guidelines Venture Capital Assistance Scheme for Agribusiness Development

AGRIBUSINESS DEVELOPMENT THROUGH

VENTURE CAPITAL ASSISTANCE ANDPROJECT DEVELOPMENT FACILITY

1. INTRODUCTION1.1 Farming is the single largest private sector economic activity in the country. The growth

potential in this key sector is immense in view of the changes taking place in foodconsumption and there is growing demand for high value processed products. Successes

in such endeavors will require innovations and partnerships. Private agribusiness provide

rst point market for the farm sector and growth depends principally on private initiatives.

A signicant portion of agribusiness activity is the result of small and medium enterprises.

Such enterprises are necessarily widespread in location to capture opportunities that

arise all along the farm to table supply chain. Key constraints that impede development

of new agribusiness projects are access to information and access to credit. Agribusiness

entrepreneurs are generally rst generation who have business skills but their nancial

resources are limited for setting up units at the farm gate with backward linkages.

In order to facilitate agribusiness development in the country SFAC venture capital

scheme will:

(a) Assist agripreneurs to make investments in setting up agribusiness projects through

nancial participation, and

(b) Provide nancial support for preparation of bankable Detailed Project Reports (DPRs)

through Project Development Facility (PDF).


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Operational Guidelines Venture Capital Assistance Scheme for Agribusiness Development3

2. OBJECTIVES2.1 The main objectives of the Scheme are:

(a) To facilitate setting up of agribusiness ventures in close association with all NotiedFinancial Institutions notied by the Reserve Bank of India where the ownership of

the Central/State Government is more than 50% such as Nationalized banks, SBI& its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, Exim Bank, RRBs & StateFinancial Corporations.

(b) To catalyze private investment in setting up of agribusiness projects and therebyproviding assured market to producers for increasing rural income & employment.

(c) To strengthen backward linkages of agribusiness projects with producers.

(d) To assist farmers, producer groups, and agriculture graduates to enhance their

participation in value chain through Project Development Facility.

(e) To arrange training and visits, etc. of agripreneurs in setting up identied agribusiness

projects.

(f) To augment and strengthen existing set up of State and Central SFAC.

3. SALIENT FEATURES OF THE SCHEME

3.1 Venture Capital Assistance

SFAC would provide Venture Capital to qualifying projects on the recommendations of theNotied Financial Institution nancing the project. This venture capital will be repayableback to SFAC after the repayment of term loan of lending Notied Financial Institutionas per original repayment schedule or earlier.

3.1.1 SFAC would provide venture capital to agribusiness projects by way of soft loan tosupplement the nancial gap worked out by the sanctioning authority of term loan

under Means of Finance with respect to cost of project subject to the fulllment ofthe following conditions:

(a) Qualifying projects under Venture Capital:

(i) Project should be in agriculture or allied sector or related to agriculturalservices. Poultry and dairy projects will also be covered under the Scheme.

(ii) Project should provide assured market to farmers/producer groups.

(iii) Project should encourage farmers to diversify into high value crops, toincrease farm incomes.

(iv) Project should be accepted by Notied Financial Institution for grant ofterm loan.

(b) The quantum of SFAC Venture Capital Assistance will depend on the projectcost and will be the lowest of the following:

26% of the promoters equity

` 50.00 lakhs.

Provided that for projects located in North-Eastern Region, Hilly States(Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any partof the country where the project is promoted by a registered Farmer ProducersOrganisation, the quantum of venture capital will be the lowest of the following:


` 50.00 lakhs.


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The cost of proposed agribusiness project would have to be `15 lakh & above, subject toa maximum of `500 lakh. However, projects valuing `10 lakh and above, proposed to belocated in backward districts as notied by Planning Commission, hilly and North-EasternStates could also be considered for PDF and VCA.

(c) The Executive Committee of SFAC will have the power to consider projectsfor higher Venture Capital Assistance provided :

1. Provision for higher VCA has been appraised and approved by sanctioningauthority of term loan subject to maximum of `3.00 Crore.

2. Total cost of the project not more than `10.00 Crore.

3. Projects are located in the North Eastern Region (NER) and other difcultpre-identied districts declared backward by Planning CommissionsBackward Regions Grant Fund Scheme.

(d) Beneciary will submit the project proposal in the form of DPR to area lendingNotied Financial Institution.

(e) On receipt of project proposal, Notied Financial Institution will appraise,assess and sanction requisite amount of term loan/working capital requiredby the beneciary for execution of the project.

(f) Notied Financial Institution will also work out the amount of Venture Capital,as per criteria laid down at para 3.1.1. (a, b & c) and communicate it to SFACwith its recommendation.

(g) SFAC will make said amount available to the recommending Notied FinancialInstitution on case to case basis for disbursement to the beneciary eitherin lump sum or in stages, as may be considered appropriate by the NotiedFinancial Institution.

(h) Term Loan/working capital and loan amount from SFAC as Venture Capitalwill be extended to the beneciary through a single-window by the projectnancing Notied Financial Institution.

(i) Due date for refund of VCA to SFAC and end date of term loan as per originalrepayment schedule xed by the bank at the time of sanction of term loan

remains the same e.g. in case bank xes end date of its term loan as 31.03.2020then VCA will also be due for refund on the same date i.e. 31.03.2020.

(j) In case the borrower is unable to repay the Venture Capital amount in lump sumimmediately after repayment of banks term loan, he/she will have the option torepay the entire amount of VCA together with accrued amount of interest in 4quarterly instalments within a year from original due date. The rate of interest inthis regard will be the same as charged by the lending bank on its term loan.

(k) During the pendency of loan, the Notied Financial Institution will have chargeover the primary/collateral securities (including FDR) available with thebeneciary and the said securities will not be released by bank to beneciaryor other institutions till full refund of VCA to SFAC.

(l) The Notied Financial Institution will provide SFAC with full details of the terms

and conditions under which the term loan is sanctioned including a copy ofprocess/appraisal note duly signed by sanctioning authority of term loan andrepayment schedule xed for the term loan.

(m) The Notied Financial Institution will also keep SFAC posted of the progress inimplementation of the project and repayment of its term loan from time to timeand its performance on yearly basis after the project becomes operational.

(n) The funds received from SFAC will be kept in a separate account by the NotiedFinancial Institution and released to promoters for the project implementation,as and when required.

(o) Agribusiness promoters may also avail Venture Capital Assistance for secondtime after refund of rst Venture Capital Assistance as per original schedule.

However, second time VCA will be for creation of additional capacity in thesame activity or for a different activity.


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3.2 Project Development Facility(a) SFAC will provide nancial support to farmers, Producer Groups, Agripreneurs, Units

in Agri-Export Zones, and Agriculture graduates (called beneciary) in the preparation

of bankable Detailed Project Reports (DPR) through empanelled consultants/

institutions. SFAC will provide for the cost of preparation of DPR depending upon

the nancial status of the agripreneur, size, location, activity and coverage on a case

to case basis.(b) The beneciary desirous of seeking assistance for preparation of DPR can approach

the nearest empanelled consultant of the district in consultation with Notied Financial

Institution along with the details /pre-feasibility of the proposed project for the

recommendation of the Notied Financial Institution or SFAC at the State or Central

level.

(c) The Notied Financial Institution on being satised about the feasibility of the intending

project will recommend it to SFAC for providing nancial assistance for the preparation

of DPR. Intending projects must be over `15 lakhs (`10 lakhs in projects located in

backward district of States notied by Planning Commission, North Eastern States

and other hilly States i.e. H.P., J&K and Uttarakhand) in size.

(d) Based on the activity and location of the project, SFAC will entrust preparation ofDPR to one of the consultants on its panel.

(e) SFAC will release cost of DPR preparation to the empanelled consultant.

(f) The schedule of fee payable to empanelled consultants under Venture Capital

Assistance Scheme for Agribusiness Development is summarized below:

Category-I :(Project size between `10.00 lakh to `25.00 lakh)

Total fee :`25000.00 (Rupees Twenty Five Thousand Only).

Category-II :(Project size above `25.00 lakh and upto `1.00 Crore)

Total fee :`50000.00 (Rupees Fifty Thousand Only).

Category-III :(Project size above `1.00 Crore and upto `3.00 Crore) Total fee :`75000.00 (Rupees Seventy Five Thousand Only).

Category-IV :(Project size above `3.00 Crore and upto `5.00 Crore),

Total fee :`100000.00 (Rupees One Lakh Only).

Terms of payment of all Categories:The fee will be paid to empanelled consultants

in three stages:

(i) 20% after submission of DPR and other documents to the bank.

(ii) 40% after sanction of term loan by Notied Financial Institution with provision

of VCA.

(iii) 40% after sanction and disbursement of VCA by SFAC.

(g) The DPR received from SFAC or directly from the consultant will be examined in

detail by the lending Notied Financial Institution for sanction of term loan and release

of venture capital. A copy of the term loan sanction advice to the borrower will also

be addressed to SFAC for its record.

(h) Financial assistance to State SFACs for undertaking promotional activities for

agribusiness development, training and visits etc. of entrepreneurs setting up the

identied Agribusiness projects will also be provided under PDF.

(i) Project Development Facility may be utilized to engage the services of State SFACs,

State Agricultural Universities and others and/or any other competent agency/rm/

consultant to vigorously publicize the benets of the Venture Capital Scheme to

prospective entrepreneurs and producer organizations.


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4. ELIGIBLE PERSONSAssistance under the Scheme will be available to Individuals; Farmers; Producer Groups;

Partnership/Proprietary Firms; Self Help Groups; Companies; Agripreneurs; units in agri-

export zones, and Agriculture graduates Individually or in groups for setting up agribusiness

projects.

For professional management and accountability the groups have to preferably form intocompanies or producer companies under the relevant Act.

5. ROLE OF CENTRAL SFAC(a) On receipt of proposal from Notied Financial Institution indicating sanction of term loan

and requirement of VCA; SFAC will submit the proposal to its Investment Committee for

approval. Field visits shall be conducted by SFAC or its authorized representatives for

evaluation and linkages with farmers etc.

(b) SFAC after seeking approval of its Investment Committee and sanction by its Managing

Director will release VCA to the Notied Financial Institution.

(c) SFAC will seek approval of its Executive Committee in cases where higher Venture

Capital Assistance is proposed to be considered.

(d) Project Development Facility could be utilized to inspect such proposals, which may include

site visits, referred by Notied Financial Institution needing clarication to determine

if projects are qualifying or not and report back to Notied Financial Institution within

30 days of receipt of reference.

(e) Central SFAC will strengthen the State SFACs and nancially assist them in undertaking

promotional activities, campaigns, printing of guidelines in local languages; identication

of qualifying projects and in organizing producer groups.

(f) SFAC will have Memorandum of Understanding (MOU) with all nancial institutionsnotied by the Reserve Bank of India where the ownership of Central/State Government

is more than 50% such as Nationalized banks, SBI & its subsidiaries, IDBI, SIDBI,

NABARD, NCDC, NEDFi, Exim Bank, RRBs & State Financial Corporations.

(g) SFAC will have a separate agreement with the applicant for facilitating the recovery of

its loan amount extended under Venture Capital assistance.


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[k viuh fuos'k lfefr lslgefr rFkk izca/k funs'kd lsLohfr dsi'pkr~ ,l,Q,lh vfklwfprfokh; laLFkk dksm|e iwath tkjh dj nsxkA

x ,slsekeysftuesavf/kd m|e iwath lgk;rk ij fopkj djusdk izLrko j[kk x;k gks] ,l,Q,lh

dsfy, viuh dk;Zdkjh lfefr dh Lohfr ysuk vfuok;ZgksxkA?k vfklwfpr fokh; laLFkk }kjk lanfHkZr oSlsizLrko ftudslaca/k esa;g lqfuf'pr djusdsfy,

dh ifj;kstuk,sa vgrZrk j[krh gS;k ugha] Li"Vhdj.k vko';d gks] dh tkap dsfy;sifj;kstukfodkl lqfo/kk dk mi;ksx fd;k tk ldrk gSvkSj lanHkZizkIr gksusdsckn 30 fnuksa ds Hkhrjvfklwfpr fokh; laLFkk dks fjiksVZnsuh gksxhA

dsUnzh; ,l,Q,lh jkT;ksadh ,l,Q,lh dksetcwr cuk,xh rFkk mUgsalao)ZukRed xfrfof/k;ksa]vfHk;kuksa] LFkkuh; Hkk"kk esafn'kk&funsZ'kksadk eqnz.k] vgrZifj;kstukvksadh igpku rFkk mRiknd

lewgksads laxBu vkfn gsrqfokh; lgk;rk nsxhA

p ,l,Q,lh dk Hkkjrh; fjtoZ cSad }kjk vf/klwfpr ,slh lHkh fokh; laLFkkvksa ds lkFk ,d

le>kSrk Kkiu ,evks;w gksxk ftlesa dsanz@jkT; ljdkj ds 50 izfr'kr ls vf/kd dk LokfeRogks tSls fd jk"Vh;r cSad] ,lchvkbZ vkSj blds lgk;d cSad] vkbZMhchvkbZ] flMch] ukckMZ],ulhMhlh] ,ubZMh,QvkbZ] ,fDte cSad] vkjvkjch rFkk jkT; fokh; fuxe vkfnA

N ,l,Q,lh m|e iwath lgk;rk dsvUrxZr nh xbZviuh _.k jkf'k dh olwyh dsfy, vkosnddslkFk vyx ls,d djkjukek djsxhA


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6. ROLE OF STATE SFACs(a) To aggressively promote agribusiness project development in their respective States as

an extended arms of Central SFACs.

(b) State SFACs in consultation with Central SFAC will prepare a plan for agribusiness project

development in their respective States.

(c) State SFACs after due diligence and ascertaining the backward linkages as per theobjectives will recommend agribusiness projects to Central SFAC for venture capital.

(d) State SFACs, with the assistance under PDF facility from Central SFAC, will organize

awareness and Entrepreneurship Training & Development Camps, Publicity Campaigns,

for setting up identied projects. State SFACs, will undertake promotional activities

and organize producer groups seminar/meeting etc. State SFACs may get published

guidelines, brochures, pamphlets and posters etc. of VCA scheme in local languages.

They may use other means of advertisement to get wider publicity for the scheme at the

cost of Central SFAC.

(e) Help producer groups in framing pre-feasibility reports and facilitate interaction with local

Notied Financial Institutionsfor their recommendation.(f) Function as repositories of information maintaining a data base of potential areas, producer

groups and marketable surplus of various crops available.

(g) Provide venture capital to small projects out of interest earned on the Corpus fund and

refer large projects to Central SFAC.

(h) As a member of SLBC, raise the issues concerning agribusiness project development

in their respective States during the SLBC meetings and organize awareness camps in

coordination with local Banks/State Government.

(i) Monitor the projects assisted through VCA facility in implementation stage and intimate

developments/deciencies to Central SFAC for initiating remedial action.

(j) The State SFAC in coordination with the State agencies and lending banks shall assist

Central SFAC in recovery of VCA in cases where the beneciaries of VCA have not

refunded the venture capital as per the original schedule.


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6- jkT;ksa dh ,l,Q,lh dh Hkwfedkd vius&viusjkT;ksaesadsanzh; ,l,Q,lh dslg;ksxh dsrkSj ij f"k O;kikj ifj;kstukvksadksrsth

lsc


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7. ROLE OF AGRIPRENEURSFor the success of the Venture, the agribusiness projects should be grounded within apredetermined time schedule as xed in the sanction of term loan:

(a) The entrepreneur/promoter will provide an undertaking to the Notied Financial Institutionto hold charge on the primary and collateral securities including FDRs till full repayment ofVCA to SFAC. The entrepreneur/promoter will also enter into an agreement with SFAC for

extending charge in favour of SFAC on all the securities (primary and collateral includingFDRs) charged by the Notied Financial Institution against their term loan/other facilitiesafter repayment of their Term Loan till full repayment of VCA to SFAC.

(b) Agripreneurs will submit implementation schedule of the Project to SFAC and participatingNotied Financial institution which will be closely monitored by SFAC.

(c) Deviation, if any, in the implementation schedule should be immediately notied to theconcerned lending Notied Financial Institution and to SFAC.

(d) Agripreneurs will submit Utilization Certicate of Venture Capital Assistance in GFR 19 Aduly certied by Chartered Accountant to SFAC and the participating Notied FinancialInstitutions.

(e) Agripreneurs will submit yearly physical progress reports, yearly balance conrmation,

audited accounts and balance sheet to SFAC and the participating Notied FinancialInstitutions.

(f) The agripreneurs while availing venture capital will have to provide an afdavit to SFACthat they have not availed of VC earlier in any capacity.

8. ELIGIBLE FINANCING INSTITUTIONSAll Notied Financial Institutions notied by the Reserve Bank of India where the ownership of theCentral/State Government is more than 50% such as nationalised banks, SBI & its Subsidiaries,IDBI, SIDBI, NABARD, NCDC, NEDFi, RRBs & State Financial Corporations.

9. MONITORING AND REPORTINGWith a view to minimize paper work and ensure that SFAC is provided with all the relevantdetails of individual projects nanced by the Notied Financial Institutions with Venture Capitalsupport provided by SFAC, units assisted for preparation of DPR, and also progress in projectimplementation from time to time, the following reporting schedule will be observed:

(a) Report on Utilization of Venture Capital (VC)/Project Developmen tFacility (PDF)

The Notied Financial Institution will report each disbursement made by them in respect ofVC out of the funds received from SFAC. A report on progress in project implementationvis a vis utilization of venture capital fund already given to the party through NotiedFinancial Institution under VC would also be sent to SFAC.

(b) Report on the working of assisted unitsThe Notied Financial Institution will submit a report on the working of the units nancedby them under VC to SFAC on a half yearly basis indicating whether the operationsare in line with the projections and whether the borrowers are adhering to repaymentcommitments.

(c) Reporting of Exceptions

The Notied Financial Instituition will also keep SFAC informed of any proposal ofrephasement of their Term Loan and will seek SFAC consent before implementing suchrephasement. However, any proposal for rephasement of Banks Term Loan and VCAsimultaneously, SFACs prior permission is mandatory. The entrepreneur will not be

eligible for any rephasement of VCA at a later date in case permission has not been soughtby bank at the time of rephasement of term loan. However, the request for rephasementof VCA can be exercised by Notied Financial Institution/Promoters only once.


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7- f"k m|fe;ksa dh Hkwfedkm|e dh lQyrk ds fy,] f"k O;kikj ifj;kstuk dks lkof/kd _.k dh Lohfr esa fu/kkZfjrle; lhek ds Hkhrj LFkkfir fd;k tkuk pkfg,%d m|eh@izorZd bl ckr ds fy, cpuc) gksxsasa fd ,l,Q,lh dks ohlh, ds iw.kZ Hkqxrku gksus

rd ,QMhvkj lfgr izkFkfed rFkk tekurh izfrHkwfr;k sa dk vf/kdkj vfklwfpr fokh; laLFkkvksa

ds ikl jgsxkA m|eh@izorZd] ,l,Q,lh ds lkFk ;g djkj Hkh djsaxs fd ohlh, dh ,l,Q,lhdks muds lkof/k _.k ds iw.kZ Hkqxrku rd muds lkof/k _.k@vU; lqfo/kkvksa ds izfr vfklwfprfokh; laLFkk }kjk izHkkfjr lHkh izdkj dh izfrHkwfr;ksa izkFkfed rFkk ,QMhvkj lfgr tekurhizfrHkwfr;ka ,l,Q,lh ds i{k esa gksaxhA

[k f"k m|fe;ksadks ifj;kstuk dh dk;kZUo;u ;kstuk ,l,Q,lh rFkk lgHkkxh cSad@_.knkrk laLFkk dslEeq[k izLrqr djuh gksxh ftl ij ,l,Q,lh dM+h fuxjkuh j[ksxhA

x dk;kZUo;u&;kstuk esacnyko] ;fn dksbZgSrks] dsckjsesa_.knkrk vfklwfpr fokh; laLFkk rFkk,l,Q,lh dks vfoyac lwfpr djuk gksxkA

?k f"k m|fe;ksadkspkVZM ,dkmVsaV ds}kjk fof/kor~izekf.kr th,Qvkj 19&, izi= esam|e iwath lgk;rkdk mi;ksx izek.ki= ,l,Q,lh rFkk lgHkkxh vfklwfpr fokh; laLFkk dslEeq[k izLrqr djuk gksxkA

f"k m|fe;ksadks,l,Q,lh rFkk lgHkkxh vfklwfpr fokh; laLFkk dslEeq[k okf"kZd vk/kkj ijHkkSfrd izxfr fjiksV~Zl] lkykuk 'ks"k izek.khdj.k] vadsf{kr ys[kk rFkk rqyu i= izLrqr djusgksaxsA

p m|e iwath izkIr djrsoDr f"k m|eh bl vk'k; dk 'kiFk i= ,l,Q,lh dks nsaxsfd mUgksausbldsm|e iwath izkIr ughadh gSA

8- ;ksX; fokh; laLFkk,alHkh vfklwfpr fokh; laLFkkvksaftUgsaHkkjrh; fjtoZcSad }kjk vf/klwfpr fd;k x;k gksvkSj ftuesadsanz@jkT; ljdkj dk 50 izfr'kr lsvf/kd LokfeRo gkstSlsjk"Vh;r cSad] ,lchvkbZvkSj bldslgk;d cSad]vkbZMhchvkbZ] flMch] ukckMZ] ,ulhMhlh] ,ubZMh,QvkbZ] ,fDte cSad] vkjvkjch rFkk jkT; fokh; fuxe

vkfnA

9- fuxjkuh rFkk izfrosnudkxth dkjokbZdksde lsde djusrFkk ,l,Q,lh dksvfklwfpr fokh; laLFkk }kjk fokiksf"kr],l,Q,llh lsm|e iawth izkIr izR;sd ifj;kstuk] Mhihvkj dh rS;kjh gsrqlgk;rk izkIr bdkbZ;ksarFkkle; ij ifj;kstuk f;kUo;u dh izxfr lslacaf/kr vko';d fooj.kksadh miyfC/k lqfuf'pr djokusgsrqfuEufyf[kr izfrosnu dk;Ze dk vuqikyu fd;k tk,xk%

d m|e iwath ohlh@ifj;kstuk fodkl lqfo/kk ihMh,Q ds mi;ksx ij izfrosnu

,l,Q,lh lsizkIr gksusokysdks"kksesalsm|e iwath dsizR;sd forj.k dh fjiksVZvfklwfpr fokh;

laLFkk nsxkA ifj;kstuk dk;kZUo;u esaizxfr dslkFk&lkFk m|e iwath dsvUrxZr vfklwfpr fokh; laLFkkdsek/;e lsikVhZdksigysnh x;h m|e iwath jkf'k dsbLrseky ij fjiksVZHkh ,l,Q,lh dksHksthtk,xhA

[k lgk;rk izkIr bdkb;ksa dh dk;Z iz.kkyh ij frosnu

vfklwfpr fokh; laLFkk m|e iwath dsvUrxZr muds}kjk fok&iksf"kr bdkb;ksadh dk;Ziz.kkyhij v)Z&okf"kZd vkkkj ij ,l,Q,lh dksfjiksVZizLrqr djsxh ftlesabl ckr dk mYys[k gksxkfd izpkyu iwoZ&fukkZfjr dk;Ze dsvuqlkj gksjgk gS;k ugharFkk _.kh iwoZHkqxrku izfrc)rkdsvuqlkj Hkqxrku dj jgsgSa;k ughaA

x vioknksa dh lwpuk

vfklwfpr fokh; laLFkk viuslkof/k _.k dsizkoLFkk fjQstesaV dsfdlh izLrko dsckjsesa,l,Q,lh dksHkh lwfpr djsaxh rFkk ,slhsfdlh izkoLFkk dks f;kfUor djusdsiwoZos,l,Q,lh


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(d) Project Specic Information

In addition to the above standard reporting by Notied Financial Institution, it would alsoprovide SFAC with project specic information, if any, sought by it from time to time.

(e) Field Visits

As part of due diligence, SFAC will through its ofcials or authorized representativesundertake eld visits to ascertain backward linkages with the farmers, feasibility of thesite, availability of raw material, etc.

SFACs Ofcers/representatives will undertake eld visits independently or in associationwith the lending Notied Financial Institution or State Government/State SFAC to monitorthe implementation of the project.

(f) Change of Bank during currency of VCA

Entrepreneur through their Lending Notied Financial Institution will obtain prior permissionfrom the SFAC for change of bank. This facility can be availed by the promoter only oncein the tenure of the Venture Capital Assistance.

(g) Monitoring performance of the Scheme at DAC level

SFAC will submit to DAC a statement twice every year, giving a summary account of i)year-wise total number of projects and VCA amount sanctioned so far; ii) total numberprojects including the total amount of which recovery of VCA has become due and actualrecovery as against the due amount of recovery; iii) details of default cases and theamount involved including action taken for recovery in such cases as also action takenfor write off in critical cases, if any.

10. IMPLEMENTATION PERIODThe Scheme will be implemented during 2012-17 in the XII Plan with a central assistance

of `500.00 Crores.

11. IMPLEMENTING AGENCYThe Scheme will be implemented by Small Farmers Agribusiness Consortium (SFAC), a registered

society functioning under Department of Agriculture & Cooperation, Ministry of Agriculture.

12. GENERAL AWARENESS, PUBLICITY AND TRAINING

PROGRAMMEServices of Notied Financial Institutions will also be engaged for sensitizing the ofcialsof the Notied Financial Institutions and other functionaries about the Scheme. SFAC willundertake publicity through multiple media format to generate mass awareness about theScheme, especially in States and regions which were under-served in the XI Plan.

Services of banking institutions will also be engaged for sensitizing the Branch Managersand other functionaries about the Scheme.

13. POWER TO MAKE AMENDMENTS TO THE SCHEMEWithin the overall nancial ceiling of the Venture Capital Scheme, modication in operating

procedures that are not of a nancial nature may be made by DAC.


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lsijke'kZysaxhA rFkkfi] cSad lslkof/k _.k dsizkoLFkk rFkk ohlh, dksmlh le; ysusdsfdlh izLrko ij ,l,Q,lh dh iwoZvuqefr ysuk vfuok;ZgSA m|eh ckn dh frfFk esaohlh, esafdlh izdkj dk ifjorZu ekU; ughagksxk ;fn lkof/k _.k dsifjorZu dsle; cSad }kjk bldhvuqefr ughayh xbZgksA gkykafd] vfklwfpr fokh; laLFkkvksa@izorZdksa}kjk ohlh, dsifjorZu ds

fy, flQZ ,d ckj vuqjks/k fd;k tk ldrk gSA

?k ifj;kstuk&fo'ks"k ds ckjs esa lwpukvfklwfpr fokh; laLFkk mi;qZDr ekud fjiksfVax dsvfrfjDr] ,l,Q,lh dksle; ij mlds

}kjk ekaxstkusij fdlh ifj;kstuk fo'ks"k dsckjsesaokafNr lwpuk ;fn dksbZgksrksiznku djrhjgsxhA

QhYM nkSjsfof/kor rRijrk dsrkSj ij ,l,Q,lh dsvf/kdkjh ;k vf/kr izfrfuf/k foi.ku lqfo/kk,a cSdokMZfyadst] dk;ZLFky dh O;ogk;Zrk] dPpseky dh miyC/krk vkfn dks lqfuf'pr djusds fy,fdlkuksadsQhYM dk nkSjk djsaxsA

ifj;kstuk ds dk;kZUo;u dh fuxjkuh gsrq ,l,Q,lh ds vf/kdkjh Lora= :i ls vFkok_.knkrk vfklwfpr fokh; laLFkk ;k jkT; ljdkj@jkT; ,l,Q,lh ds lg;ksx ls [ksrksa dk

Hkze.k djsaxsAp ohlh, ds tkjh jgus ds nkSjku cSad dks cnyuk m|eh viusdtZnkrk vfklwfpr fokh; laLFkku dsek;e lscSad dkscnyusdsfy, ,l,Q,lh

ls iwoZvuqefr kIr djsxkA m|e iwath lgk;rk dh vofk esa orZd }kjk bl lqfokk dkmi;ksx flQZ,d ckj gh fd;k tk ldrk gSA

N Mh,lh Lrj ij ;kstuk ds dk;Z&fu"iknu dh fuxjkuh,l,Q,lh] ,d o"kZesanks ckj fuEukuqlkj [kkrsdk lkjka'k nsrsgq, Mh,lh dks ,d fooj.kLrqr djsxhA i ifj;kstukvksadh o"kZ&okj dqy la[;k vkSj vc rd Lohr ohlh, jkf'k]

ii ifj;kstukvksadh dqy la[;k ftlesaohlh, dh olwyh dh dqy jkf'k tksfd ns; gksxbZgSrFkk olwyh dh ns; jkf'k dsfo:) okLrfod olwyh vkSj iii vnk;xh esapwd okysekeyksadk

C;kSjk vkSj mudh jkf'k ftlesa,slsekeyksaesaolwyh dsfy, dh xbZdkjokbZrFkk xaHkhj ekeyksaesajkbV vkWQ gsrqdh xbZ dkjokbZA

10- dk;kZUo;u vof/kbl ;kstuk dks`500-00 djksM+ dh dsanzh; lgk;rk lsckjgoha;kstuk esa2012&17 ds nkSjku f;kfUorfd;k tk,xkA

11- dk;kZUo;u djus okyh ,tsalh ;g ;kstuk f"k ea=ky; ds f"k ,oa lgdkfjrk foHkkx ds vUrxZr iathr laLFkk y?kq "kd

f"k O;kikj la?k ,l,Q,lh }kjk dk;kZfUor dh tk,xhA12- lkoZtfud tkx:drk] izpkj rFkk izf'k{k.k dk;Ze

vfklwfpr fokh; laLFkkvksadh lsokvksadksvfklwfpr fokh; laLFkkvksadsdkfeZdksarFkk vU; dk;ZdrkZvksadksbl ;kstuk dsckjsesalaosnu'khy cukusdsfy, Hkh mi;ksx esayk;k tk,xkA ,l,Q,lh fofo/k izdkjdsehfM;k izk:iksadsek/;e lsbldk izpkj djsaxsrkfd ;kstuk dsckjsesaO;kid tkx:drk iSnk dhtk lds] fo'ks"kdj mu jkT;ksavkSj {ks=ksaesatgkaX;kjgoha;kstuk esabl ij iw.kZ/;ku ughafn;k x;kA

13- ;kstuk esa la'kks/ku djus dk vf/kdkjm|e iwath ;kstuk dh laiw.kZfokh; lhek dsHkhrj ,slh lapkyu izf;k,atksfd fokh; izdkj dh

ughagSa] esaMh,lh }kjk la'kks/ku fd, tk ldrsgSaA


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This MOU is signed on the ________ day of __________ month__________ year at _________ by

Small Farmers Agribusiness Consortium (a Society Registered under Registration of Societies Act1860) registered ofce at NCUI Auditorium Building, 5th Floor, 3 Siri Institutional Area, August Kranti

Marg, Hauz Khas, New Delhi - 110 016, which includes its successors/ assigns etc., hereinafter

called SFAC on the rst part and ____________ Bank/Financial Institution (hereinafter referred

to as Notied Financial Institution which expression that unless repugnant to the context herein

shall mean and include its assigns and successors) with registered ofce at______________ on

the other part.

1. SFACs focus is to attract private investment for setting up of projects that will link farmers& producer groups to markets, thereby substantially enhancing the opportunities for growth

through commercial business activity.

2. The objective sought to be achieved by SFAC in discharging its duties are _______________Venture Capital Assistance and Project Development Assistance to qualifying projects through

participating Notied Financial Institution.

3. This agreement for SFAC Venture Capital Assistance operations with participating lendingNotied Financial Institution will synergize their functions, competencies and projected sector

development.

4. Whereas the Notied Financial Institution, in furtherance of its desire to play an active role inparticipation and promotion of investments in qualifying agribusiness projects and to coordinate

the related activities with SFAC, is prepared to make available term loans/ working capital

(Model Format)Memorandum of Understanding between

Small Farmers Agribusiness ConsortiumNew Delhi

(Department of Agriculture & Cooperation Ministry ofAgriculture) and the Notifed Financial Institution


19/52


;g le>kSrk Kkiu&&&&&&&&&fnu&&&&&&ekg&&&&&&o"kZ&&&&&& dksy?kq"kd f"k O;kikj la?k lfefr;kvfkfu;e] 1860 dsvUrxZr ,d iathr lfefr] ftldk iathr dk;kZy;] ,ulh;wvkbZlHkkxkj Hkou] ikapokary] 3 fljh vkS|ksfxd {ks=] vxLr kafr ekxZ] gkSt [kkl] ubZfnYyh & 110016 esa fLFkr gSrFkk ftlesbldsmkjkf/kdkjh@lEcn~/k vkfn lfEefyr gSa] rFkk ftlsbldsi'pkr ,l,Q,lh dgk tk,xk Fke i{k ds:i esarFkk&&&&&&&cSad@fokh; laLFkk ftlsvc ^vfklwfpr fokh; laLFkk* dgk tk,xk] ftllsvfHkizk;%mlesalfEefyr lEcn~/k rFkk mkjkf/kdkjh gksaxs ftldk iathr dk;kZy;&&&&&&&fLFkr gS] nwljk i{k gSA

1-,l,Q,lh dk eq[; dsUnzfcUnqifj;kstuk,aLFkkfir djusdsfy, futh fuos'k dksvkdf"kZr djuk gStks "kdksao mRiknd lewgksadks cktkj lstksM+sxh ftllsokf.kfT;d O;kikj xfrfof/k dsek/;e lsfodkl dsvoljksadksc


20/52


to qualifying agribusiness projects and also facilitate extension of SFACs Venture Capital Assistance

(VCA) and Project Development Assistance (PDA) through a single window approach.

5. For the purpose of synergizing the efforts of SFAC for Promoting agribusiness Developmentin the country with the Notied Financial Institutions expertise in extending loans to viable

agri- projects, SFAC and the Notied Financial Institution do hereby agree to cooperate with

each other, for the development of agribusiness Sector and related areas and enter into this

Memorandum of Understanding (MOU).

6. Whereas SFAC and the Notied Financial Institution are desirous of establishing a formaloperational framework to achieve the objectives of agribusiness.

7. Whereas SFAC, in order to achieve its objective desired to associate with the Notied FinancialInstitution for disbursement of VCA and PDA (for preparation of DPR by SFAC empanelled

consultants) to agribusiness projects and to attract private investment for setting up of projects

that will link farmers and producers groups to markets, thereby substantially enhancing the

opportunities for growth through commercial business activity which in turn will generate ample

employment opportunities for rural unemployed and the Notied Financial Institution agreed

to disburse the same and to provide term loans/ working capital to such qualied agribusiness

projects and serve as a single window facility on the following terms and conditions:

The Abbreviations and Terms Used in MOU

Qualifying project for VCA -Project qualifying for Venture Capital Assistance (VCA) provided

by SFAC would be one which (a) is dependent upon agriculture or allied sector or related to

agricultural services. Poultry and dairy projects will also be covered under the Scheme (b)

provides assured market to farmers/producer groups (c) encourages farmers to diversify into

high value crops aimed to increase farm incomes and (d) is accepted by the Notied FinancialInstitution for grant of project term loans after satisfactory techno- commercial feasibility.

Qualifying project for PDF-A project qualifying for assistance from the PDF will be qualifying

project for VCA set up by producers groups/agribusiness groups with minimum project cost of `15

lakhs (`10.00 lakhs in case of North-Eastern and Hilly States (Uttarakhand, Himachal Pradesh,

Jammu & Kashmir)) and which has been accepted in principle for considering sanction of term

loan by a Notied Financial Institution on the basis of Pre- feasibility report.

Project Development Facility (PDF)of SFAC maintains a pool of qualied skilled consultants to

render services at low cost to producer groups/agribusiness groups.

Project Development Assistance (PDA)is a scheme under which nancial support is providedto producer groups/agribusiness groups for preparation of DPR by SFAC.

Detailed Project Report (DPR)is the document providing all necessary details and projections

relating to the project, which would enable Notied Financial Institutionto evaluate viability of

the project.

Venture Capital Assistance (VCA)is the nancial support provided by SFAC for qualifying projects

to meet shortfall in the capital required for implementation of the project. VCA will be treated as

part of equity during the currency of the bank loan and thereafter converted to a loan based on an

agreement to be executed between SFAC and the borrower.


21/52


5-O;ogk;Zf"k ifj;kstukvksadks_.k nsusesavfklwfpr fokh; laLFkkvksadh fo'ks"kKrk dslkFk ns'k esaf"k O;kikj ifj;kstuk fodkl dksckSrk Kkiu esa bLrseky fd, x, laf{kIr 'kCn o 'kCnkofy;kohlh, gsrq ifj;kstuk dh vgZrk ;k ik=rk% ,l,Q,lh }kjk lqyHk djk;h tkusokyh m|e iwathlgk;rk ohlh, dsfy, vgZrk izkIr ifj;kstuk og gksxh tksd ohlh, gsrq ifj;kstuk dh vgZrk ;kik=rk mlds d`f"k ;k mlls tqM+s {ks=ksa ;k d`f"k lsokvksa ls lacaf/kr gksuh pkfg,A bl ;kstuk ds rgreqxhZikyu iksYVh rFkk Ms;jh ifj;kstuk,a Hkh 'kkfey gksaxhA [k os ifj;k stuk, a tks fdlkuksa@mRikndlewgk sa dks lqfuf'pr cktkj iznku djrh gksa bl ;kstuk esa 'kkfey gksaxhA x fdlkuksadksf"k vk; c


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8. RESPONSIBILITIES OF THE NOTIFIED FINANCIAL

INSTITUTION

Project Development(a) The Notied Financial Institution has branches and operations in different parts of the

country and they are closely linked and accessible to producers and entrepreneurs in

the areas covered by their branch network. The producer groups/ entrepreneurs/trainedagribusiness graduates/ units in Agricultural Export Zone (AEZ) (called applicant) desirousof seeking PDA can approach nearest branch of the Notied Financial Institution alongwith pre- feasibility report or such other documents giving details of the proposed projectfor the consideration of the Notied Financial Institution. Such persons may also directlyapproach SFAC seeking assistance for preparation of DPR under PDA scheme.

(b) The Notied Financial Institution will examine the pre- feasibility report and on beingabout the background of the promoters and prima facie acceptability of the project, willrecord their observations and direct the proposal to SFAC for assistance in preparationof DPR by one of the consultants in their panel. The Notied Financial Institution mayalso directly forward the case to SFAC empanelled consultant for taking up the study

on the terms and conditions stipulated by SFAC under advice to SFAC.(c) In respect of cases referred to a consultant directly by the Notied Financial Institution,

payment will be made from the funds received from SFAC for preparation of DPR asper the terms and conditions specied by SFAC.

(d) The Notied Financial Institution will release the cost of preparation of DPR to thoseprojects found viable depending on the size, location, and linkage issues on a case-to-case basis from the SFAC fund. Intending projects must be over `15 lakhs ( `10 lakhsin case of NE States and other hilly areas) in size.

(e) The schedule of fee payable to empanelled consultants under Venture CapitalAssistance Scheme for Agribusiness Development is summarized below:

Category-I :(Project size between`

10.00 lakh to`

25.00 lakh) Total fee :`25000.00 (Rupees Twenty Five Thousand Only).

Category-II :(Project size above `25.00 lakh and upto `1.00 Crore)

Total fee :`50000.00 (Rupees Fifty Thousand Only).

Category-III :(Project size above `1.00 Crore and upto `3.00 Crore)

Total fee :`75000.00 (Rupees Seventy Five Thousand Only).

Category-IV :(Project size above `3.00 Crore and upto `5.00 Crore)

Total fee :`100000.00 (Rupees One Lakh Only).

Terms of payment of all Categories:The fee will be paid to empanelled consultants inthree stages:

(i) 20% after submission of DPR and other documents to the bank.(ii) 40% after sanction of term loan by Notied Financial Institution with provision of

VCA.

(iii) 40% after sanction and disbursement of VCA by SFAC.

(f) Agribusiness projects will need to be directly linked to the bank to avail project termloans. The Notied Financial Institution will have the exibility to syndicate any part ofthe project term loan to other Notied Financial Institution.

(g) The DPR received from SFAC or directly from the consultant will be examined in detailby the Notied Financial Institution for sanction of term loan and release of venturecapital. A copy of the term loan sanction advice to the borrower will also forwarded toSFAC for their record.

(h) The Notied Financial Institution will maintain separate account for SFAC funds.


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8- vfklwfpr fokh; laLFkk dk mkjnkf;Roifj;kstuk fodkld vfklwfpr fokh; laLFkk ns'kHkj ds fofHkUu Hkkxksaesaviuh 'kk[kkvksarFkk izpkyu gksrsgSarFkk os

fudVre :i lslacfkr gksrsgSaA osviuh 'kk[kkvksadh lajpuk ds }kjk lacaf/kr {ks=ksa esamRikndksavkSj m|fe;ksadh igqp esagksrs gSaA ihMh,Q bPNqd mRiknd lewg@m|eh@izf'kf{kr f"k O;kikj

Lukrd@f"k fu;kZr {ks= esabdkb;kftUgsa vkosnd dgk x;k gS cSad dh fudVre 'kk[kk lslaidZdj ldrsgSaA os cSad ds fopkjkFkZizLrkfor ifj;kstuk dh iwoZ&laHkkO; fjiksVZ;k ifj;kstukdk fooj.k n'kkZusokysnLrkost izLrqr dj ldrsgSaA ;g O;fDr ihMh,Q ;kstuk dsvarxZrMhihvkj rS;kj djusdsfy, lgk;rk izkIr djusgsrq ,l,Q,lh lslh/ksHkh lEidZLFkkfir djldrsgSaA

[k vfklwfpr fokh; laLFkk iwoZ&laHkkO;rk fjiksVZ dh leh{kk djsxk rFkk izeksVlZdh i`"BHkwfe oifj;kstuk dh rkRdkfyd Lohfr dsckjsesalarq"V gkstkusds ckn] og viuk er ntZdjsxkvkSj izLrko dks,l,Q,lh dsikl mldslwphc) ijke'kZdksaesa lsfdlh ,d lsMhihvkj rS;kj

djokusgsrqHkstsxkA vfklwfpr fokh; laLFkk ekeysdks,l,Q,lh }kjk of.kZr fu;e o 'krksZaijv/;;u djusdsfy, ,l,Q,lh dslwphc) ijke'kZd dsikl lh/ksHkh Hkst ldrk gSftl

dh lwpuk og ,l,Q,lh dksHkh Hkst nsxkAx vfklwfpr fokh; laLFkk }kjk ekeyksadkslh/ksijke'kZd dksHkststkusij] Mhihvkj rS;kj djusdsfy,

,l,Q,lh lsizkIr dks"kksals] ,l,Q,lh }kjk fufnZ"V fu;e o 'krksZadsvuq:i] Hkqxrku dj nsxkA?k vfklwfpr fokh; laLFkk izR;sd ekeys dsvk/kkj ij Mhihvkj rS;kj djusdh ykxr mUgha

ifj;kstukvksadks,l,Q,lh dks"k ls tkjh djsxk tksvkdkj] txg vkSj tqM+ko tSlseqn~nksaijO;ogkFkZik, tk,axsA ifj;kstuk,a vkdkj esa`15 yk[k #i;siwoksZkj jkT;ksao vU; ioZrh; {ks=ksadsekeyksaesa `10 yk[k #i;s lsvf/kd dh gksuh pkfg,A

f"k O;kikj fodkl dsfy, osapj dSfiVy lgk;rk ;kstuk dsrgr iSuy esa'kkfey lykgdkjksadksns; 'kqYd dh vuqlwph la{ksi esafuEu gSa%

Js.kh&I%10-00 yk[k ls`25-00 yk[k rd dh ifj;kstuk dsfy,dqy 'kqYd%`25]000-00 :i, iPphl gtkj dsoyA

Js.kh&II%25-00 yk[k lsvfkd rFkk `1-00 djksM+rd dh ifj;kstuk dsfy,dqy 'kqYd%`50]000-00 :i, ipkl gtkjA

Js.kh&III%1-00 djksM+ lsvfkd rFkk `3-00 djksM+ rd dh ifj;kstuk dsfy,dqy 'kqYd%`75]000-00 :i, ipgkj gtkj ek=A

Js.kh&IV%3-00 djksM+ lsvfkd vkSj ` 5-00 djksM+ rd dh ifj;kstuk dsfy,dqy 'kqYd%`100]000-00 ,d yk[k :i, dsoyA

lHkh Jsf.k;ksa dks Hkqxrku dh 'krs%iSuy lykgdkj dks'kqYd rhu pj.kksaesaHkqxrku fd;k tk,xk%

i cSad dksMhihvkj vkSj vU; nLrkostksadksLrqr djusdsckn 20 fr'kr HkqxrkuAii ohlh, dskokku lfgr vfklwfpr fokh; laLFkk }kjk fe;knh _.k dh eatwjh dsckn 40 fr'krAiii _.k dh eatwjh rFkk ,l,Q,lh }kjk ohlh, dsforj.k dsckn 40 fr'krA

p ifj;kstuk lkof/kd _.kksadksizkIr djusgsrqf"k O;kikj ifj;kstukvksadkscSad dslkFk izR;{kr% tksM+uk vko';dgksxkA vfklwfpr fokh; laLFkk dsikl ifj;kstuk dslkof/kd _.k dsfdlh Hkh Hkkx dksvU; cSadksadksla/khr djusdk izko/kku gksxkA

N lkof/kd _.k Lohr rFkk m|e iwath dkstkjh djusdsfy, vfklwfpr fokh; laLFkk }kjk ,l,Q,lh ;k ijke'kZd lslh/ksizkIr Mhihvkj dh foLrr tkap dh tk,xhA _.knkrk dksfn, x, lkof/kd _.k Lohfrdsi= dh ,d izfr] fjdkMZgsrq ,l,Q,lh dksHkh vxzlfjr dh tk,xhA

t ,l,Q,lh fuf/k dsfy, vfklwfpr fokh; laLFkk vyx ls[kkrk j[ksxkA


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9. VENTURE CAPITAL ASSISTANCE9.1 As part of term loan appraisal in respect of proposals received from the entrepreneurs or

agriculture producer groups for sanction of agricultural term loans. The Notied FinancialInstitution will indicate the amount of venture capital support from SFAC while workingout the funding pattern for qualifying projects. Projects qualifying for venture capitalassistance from SFAC:

Are dependent upon agricultural or allied produce

Provide direct access to producers as assured markets

Encourage farmers to diversify into high value crops aimed to increase farmincome

Are accepted by the Notied Financial Institution for grant of project term loans aftersatisfactory techno- commercial feasibility.

9.2 The quantum of SFAC venture capital assistance will depend on the project cost andwill be the lowest of the following:


` 50 lakhs

9.3 Higher venture capital assistance can be considered by SFAC to deserving projects onmerit and/ or to projects that are located in remote and backward areas, northeasternand hilly States and projects promoted by States/State SFACs.

9.4 For qualifying projects conforming to the criteria mentioned under Para 9.1 above,Notied Financial Institution while considering sanction of term loan for projectimplementation and tying up the means of nance to meet the total project. TheNotied Financial Institution will evaluate the quantum of VCA required keeping in viewthe stipulations contained in Para 9.2 and 9.3., the Notied Financial Institution willwrite to SFAC giving details of the project, its cost and indicating the quantum of VCArecommended for tying up means of nancing. The Notied Financial Institution will

also indicate when the venture capital funds will be required for project implementation.SFAC will place the proposal before its investment committee and communicate tothe Notied Financial Institution the quantum of VCA approved for the project.

9.5 In case any clarication is needed to determine if projects are qualifying projects or not,the Notied Financial Institution can refer them to SFACs Project Development Facility,Division of SFAC & PDF Division, who will investigate such proposals which may includesite visits and respond to the Notied Financial Institution within 30 days.

9.6 The Notied Financial Institution will provide SFAC with full details of the terms andconditions under which the term loan is sanctioned including repayment scheduled xedfor the loan. The bank will also keep SFAC posted of the progress in implementation ofthe project from time to time after the project become operational. The Notied Financial

Institution will keep SFAC posted of the performance of the unit on an yearly basis andkeep SFAC informed of any unsatisfactory features noticed in the working of the projectas and when it occurs. SFAC will have no charge during the currency of the term loan.Once the term loan is fully repaid, the Notied Financial Institution will advise SFAC ofthe position to enable them to convert their venture capital funding into a loan repayableas per the agreement entered by SFAC with the promoters. During the pendency of loan,the Notied Financial Institution will have charge over the primary/collateral securities(including FDR) available with the beneciary and the said securities will not be releasedby bank to beneciary or other institutions till full refund of VCA to SFAC.

9.7 The Notied Financial Institution will release the term loan in one go or as per the progressin the project implementation after completion of documentation formalities. The funds

received from SFAC will be retained in a separate account and released for the projectimplementation as and when requested by the applicant.


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9- m|e iwath lgk;rk9-1 f"k lkof/kd _.kksa dksLohfr dsfy, m|fe;ksa;k f"k mRiknd lewgksals izkIr izLrkoksads

laca/k esalkof/kd _.k ewY;kadu dsfgLlsds:i esa] vgrZrk izkIr ifj;kstukvksadsfy, fokiks"k.k dsrjhdsdh :ijs[kk cukrsle;] vfklwfpr fokh; laLFkk ,l,Q,lh lsfeyus okyh m|eiwath lgk;rk dh jkf'k dk mYys[k djsxkA ,l,Q,lh lsm|e iwath lgk;rk dh vgrZrk izkIr

djusds fy, ifj;kstuk dks%osf"k ;k bllslEc) mRikn ij vkfJr gksaAfuf'pr cktkj ds:i esamRikndksa dkslh/ksigqp lqyHk djkrh gksaAfdlkuksadksmudh f"k vk; ckSrsesamYys[k gSaA _.k dsyafcr jgusdsnkSjku ykHkkFkhZdsikl miyC/k

izkFkfed@_.kk/kkj izfrHkwfr;ksa,QMhvkj lfgr ij vfklwfpr fokh; laLFkk dk vfkdkj gksxk rFkkohlh, dh ,l,Q,lh dksiwjh jkf'k dh okilh rd bu izfrHkwfr;ksaflD;qfjVht dksykHkkFkhZ;k

vU; fdlh laLFkk dsuke ij tkjh ughafd;k tk ldsxkA


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9.8 In case of the failure of the project, the Notied Financial Institution may opt for acompromise settlement or resort to legal recourse for recovery of their dues as per thepolicy of the bank. While, the Notied Financial Institution will be free to take any suchdecisions without seeking the concurrence of SFAC, SFAC will be informed of any suchdecision taken to safeguard its interest.

9.9 The Notied Financial Institution will appoint a nodal ofcer for corresponding with SFAC

in all matters relating to sanction and release of assistance under venture capital or forthe preparation of DPR. The Notied Financial Institution may also provide SFAC with alist of its regional/ Zonal ofces for forwarding proposals received by SFAC and its statefunctionaries/ state level SFACs for their consideration.

10. RESPONSIBILITIES OF SFAC(a) SFACs Project Development Facility (PDF) will maintain a pool of pre- qualied skilled

consulting rms and individuals with specic skills to render services at low cost toentrepreneurs and to lending Notied Financial Institution. SFACs PDF will addressgaps if any in agribusiness enterprise skills in an active hand holding manner. SFAC willalso look to take assistance of specialized agribusiness groups if some Notied Financial

Institution have the capability to undertake PDF role in line with the PDF and VentureCapital Scheme.

(b) SFACs PDF is a generator of potential agribusiness projects which can attract investmentthat will benet the rural community through increased employment and incomes whichcan be referred to the Notied Financial Institution.

(c) SFAC may assign the services of agri business specialists from SFACs PDF from timeto time to associate with periodic progress evaluation of SFACs VCA projects.

(d) SFAC will forward proposals received from state level functionaries/ state level SFACsto the nodal ofcer of the Notied Financial Institution or regional/ zonal ofces of theNotied Financial Institution for their consideration.

(e) The PDF of SFAC will arrange to have DPR prepared by a consultant in its panel promptlyon receipt of request from the Notied Financial Institution after satisfying about pre-feasibility report.

(f) SFAC will arrange to remit funds required for preparation of DPR under PDA immediatelyon receipt of request from the Notied Financial Institution in respect of cases directlyreferred to a consultant by them.

(g) On receipt of communication from Notied Financial Institution giving details of thequalifying project for VCA, SFAC will place the proposal for VCA before its investmentcommittee and communicate sanction to the Notied Financial Institution and the borrowerSFAC will make VCA funds available for the project implementation through the NotiedFinancial Institution immediately on receipt of the communication from the Notied

Financial Institution giving details of term loan/ working capital proposed to be sanctionedby them.


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9-7 vfklwfpr fokh; laLFkk lkof/kd _.k dsifj;kstuk dh izxfr dsvuqlkj forj.k dsckn] ,l,Q,lhlsohlh, ds:i esaizkIr jkf'k dks,d vyx [kkrsesaj[ksxh rFkk nLrkostksadh vkSipkfjdrkvksadsiwjk gksusij _.kh dks,deq'r vFkok ifj;kstuk dh izxfr dsvuqlkj _.kh dsekaxusij ifj;kstukdsdk;kZUo;u dsfy, tkjh djsxhA

9-8 ifj;kstuk dsfoQy gkstkusdh fLFkfr esa] vfklwfpr fokh; laLFkk viuh uhfr dsvuqlkj viuhysunkjh dh olwyh dsfy, ;k rksdkbZfuiVku dj ldrh gS;k dkuwuh rjhdksadk lgkjk ysldrsgSaA

vfklwfpr fokh; laLFkk ,l,Q,lh dh iwoZuqefr dsfcuk ,slk dksbZHkh fu.kZ; ysusdsfy, Lora= gksxh],l,Q,lh dks] mudsfgrksadh j{kk djusdsmn~ns'; ls] ,slsfu.kZ; lslwfpr dj fn;k tk,xkA9-9 m|e iwath dsvarxZr lgk;rk dh Lohfr dstkjh djusvFkok Mhihvkj dh rS;kjh dsfy,

,l,Q,lh dslkFk lHkh ekeyksagsrqgksusokysi=kpkj dsfy, vfklwfpr fokh; laLFkk ,duksMy vf/kdkjh dh fu;qfDr djsxhA vfklwfpr fokh; laLFkk ,l,Q,lh vkSj bldsjkT;ksadsvf/kdkfj;ksa] jkT;&Lrjh; ,l,Q,lh }kjk fopkjkFkZizkIr izLrkoksadksvxzlhr djusds fy, vius{ks=h; eaMy dk;kZy;ksadh lwph Hkh ,l,Q,lh dkslqyHk djk,xhA

10- ,l,Q,lh ds mkjnkf;Rod ,l,Q,lh dh ifj;kstuk fodkl lqfo/kk ihMh,Q ,slsiwoZ&;ksX;rk izkIr dq'ky ijke'kZd QeksZavkSj

O;fDr;ksadk ,d fudk; j[ksxk ftudsikl m|fe;ksao _.knkrk vfklwfpr fokh; laLFkkvksadksdeewY; ij lsok,ansusdh fof'k"V dq'kyrk gksxhA ,l,Q,lh dk ihMh,Q ,d lf; ,oafo'oLrrjhdslsf"k O;kikj m|e dh dq'kyrk esaik, tkusokysvarjksaij fo'ks"k /;ku nsxkA ;fn dqNvfklwfpr fokh; laLFkkvksadsikl ihMh,Q o m|e iwath ;kstuk dh Hkkafr ihMh,Q dh Hkwfedk fuHkkus

dh {kerk gksxh rks,l,Q,lh fo'ks"kK f"k O;kikj lewg dh lgk;rk ysusdk Hkh iz;kl djsxkA[k ,l,Q,lh dk ihMh,Q f"k O;kikj ifj;kstukvksadh lgk;rk djusdk fudk; gStksfuos'k dks

vkdf"kZr dj ldrk gSA ;sfuos'k jkstxkj vkSj vk; esaof) dsek/;e lsxzkeh.k leqnk; dksykHk igqpk,axsrFkk bUgsavfklwfpr fokh; laLFkk dsikl vxzsf"kr fd;k tk ldsxkA

x ,l,Q,lh viuh ohlh, ifj;kstukvksadh izxfr dsewY;kadu dslkFk tqM+usdsfy, le;ij ihMh,Q ls f"k O;kikj fo'ks"kKksadh lsok,aysldrh gSA

?k ,l,Q,lh viusjkT;Lrjh; vf/kdkfj;ksa@jkT; Lrjh; ,l,Q,lh lsizkIr izLrkoksavfklwfpr fokh;laLFkk dsuksMy vf/kdkjh rFkk vfklwfpr fokh; laLFkk ds{ks=h; eaMy dk;kZy;ksadksmudsfopkjkFkZvxzlfjr djsxhA

iwoZ&laHkkO;rk fjiksVZdsckjsesavk'oLr gkstkusdsckn vfklwfpr fokh; laLFkk lsvuqjks/k dh izkfIr ij,l,Q,lh dk ihMh,Q viuslwphc) ijke'kZd lsMhihvkj rqjar rS;kj djokusdh O;oLFkk djsxhA

p tksekeyslh/ksgh vfklwfpr fokh; laLFkk }kjk ijke'kZd dksHkststk,axsmudsckjsesacSad lsvuqjks/k dh izkfIr dsrqjar ckn] ihMh,Q dsvarxZr Mhihvkj dh rS;kjh gsrq,l,Q,lh dsizfrizs"k.k

dh O;oLFkk djsxhAN vfklwfpr fokh; laLFkkvksalsohlh, dsfy, vgrZrk izkIr ifj;kstuk dsckjsesafooj.kksadh izkfIr

ij] ,l,Q,lh viuh fuos'k lfefr dslEeq[k ohlh, dsfy, izLrko dksj[ksxh rFkk vfklwfprfokh; laLFkk o _.knkrk dksLohfr dh lwpuk HkstsxhA vfklwfpr fokh; laLFkk lslkof/kd _.k

dk;Zxr iwath dh izLrkfor Lohfr dsfooj.k izkIr gksusdsrqjar ckn] ,l,Q,lh ifj;kstuk dk;kZUo;udsfy, ohlh, dks"kksadh vfklwfpr fokh; laLFkk dsek/;e lsmiyC/krk lqfuf'pr djsxhA


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11. REPORTING AND EXCHANGE OF INFORMATIONWith a view to minimize paper work and ensure that SFAC is provided with all relevant details

of individual projects nanced by the Notied Financial Institution with Venture Capital support

provided by SFAC and also units assisted for preparation of DPR, and also progress in project

implementation from time to time, the following reporting schedule will be observed.

(a) Report on utilization of Venture Capital Assistance (VCA)/Project Development

Assistance (PDA)

The Notied Financial Institution will report disbursement made by them in respect of

VCA/PDA against funds received from SFAC every time a payment is made. In respect

of VCA along with the report on utilization of funds, a report on progress in project

implementation would also be sent to SFAC. Such periodical reporting will be sent to

SFAC until the project is fully implemented and commercial operations are started. In

respect of PDA, the Notied Financial Institution will report if after examining the DPR,

a decision is taken by the Notied Financial Institution not to sanction term loan on

assessment that the project is not viable.

(b) Report on the working of assisted units

The Notied Financial Institution will submit a report on the working of the units nanced

by them under VCA to SFAC on a half yearly basis indicating whether the operations

are in line with the projections and whether the borrowers are adhering to repayment

commitments.

(c) Reporting of exceptions

The Notied Financial Institution would also keep SFAC informed of any signicant

developments with regard to operation of the projects, its implementation and

unsatisfactory features if any noticed by them. The Notied Financial Institution will also

keep SFAC informed of any recovery action initiated by them in the event of failure of

the unit to perform or inability of the borrowers to meet nancial commitments.

(d) Project Specic Information

In addition to the above standard reporting by the Notied Financial Institution the Notied

Financial Institution would also provide SFAC with project specic information, if any,

sought by it from time to time.


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11- lwpukvksadh fjiksVZHkstuk rFkk mudk vknku&iznkudkxth dk;Zokgh dks de djusrFkk ,l,Q,lh }kjk lqyHk djkbZxbZm|e iwath lgk;rk dksvfklwfprfokh; laLFkk dh fok&iksf"kr izR;sd ifj;kstukvksa lslacaf/kr fooj.k ,l,Q,lh dkslqyHk djkus]Mhihvkj dh rS;kjh esalgk;rk djusokyh bdkb;ksarFkk le; ij ifj;kstuk dk;kZUo;u esa izxfrdh iwjh tkudkjh j[kusdsmn~ns'; ls fuEukafdr jiV&izs"k.k dk fu/kkZj.k fd;k x;k gS%

dm|e iwath lgk;rk chlh,@ifj;kstuk fodkl lgk;rk ihMh, ds mi;ksx dh fjiksVZ tc Hkh ,l,Q,lh lsizkIr ohlh,@ihMh, dsfy, jkf'k dslaca/k esadksbZHkqxrku fd;k tk,xk]

vfklwfpr fokh; laLFkk ,sls forj.k dsckjs esalwfpr djsxkA m|e iwath ds laca/k esa] dks"kksadsmi;ksx dh fjiksVZdslkFk] ifj;kstuk dk;kZUo; esaizxfr ij Hkh ,d frosnu ,l,Q,lh dksHksthtk,xhA ifj;kstuk dslaiw.kZdk;kZUo;u rFkk okf.kfT;d izpkyu izkjaHk gkstkusrd blh izdkj dk,l,Q,lh dksvkof/kd jiV&izs"k.k tkjh jgsxkA ihMh, dslaca/k esa] ;fn Mhihvkj dh tkap dsckn vfklwfpr fokh; laLFkk ;g fu.kZ; ysrh gSfd ifj;kstuk vO;ogk;Zgksus dsdkj.k lkofkd_.k dh Lohfr u nh tk, rksbldsckjsesavfklwfpr fokh; laLFkk frosnu HkstsxhA

[k lgk;rk izkIr bdkbZ;ksa ds dk;Zdykiksa ij fjiksVZ

vfklwfpr fokh; laLFkk m|e iwath dsvUrxZr vius }kjk fok iksf"kr bdkbZ;ksa dsdk;Zdykiksa ijNekgh vk/kkj ij ,l,Q,lh dh fjiksVZHkstsxh ftlesa;g n'kkZ;k tk,xk fd D;k iwoZ&fukkZfjr;kstukuqlkj izpkyu py jgsgSa;k ugharFkk D;k _.knkrk f"k vknk;xh dh izfrc)rk dsvuqlkjHkqxrku dj jgsgSa;k ughaA

x vioknksa dh lwpuk nsuk

,l,Q,lh dksifj;kstuk dsizpkyu bldsf;kUou dslaca/k esafdlh Hkh egRoiw.kZ?kVuk rFkkbldh lwpuk esa ikbZxbZfdlh vlarks"ktud igywdsckjsesa Hkh voxr djkrsjgsaxsA vfklwfprfokh; laLFkk bdkb;ksadh vlQyrk ;k dtZnkjksa }kjk viuh fokh; izfrc)rk dksiwjk djusesafoQyrk dh fLFkfr esavfklwfpr fokh; laLFkk }kjk mBk, x, olwyh dsfdlh Hkh dne dsckjsesa,l,Q,lh dkslwfpr djrh jgsxhA

?k ifj;kstuk ls tqM+h lwpuk

cSad mi;qZDr ekud fjiksfVZax dsvfrfjDr ,l,Q,lh dks le; ij mlds}kjk ekaxstkusij fdlh ifj;kstuk dsckjsesaokafNr lwpuk nku djrh jgsxhA


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12. PARTIES NOTIFICATIONEach of the parties hereto shall promptly inform the other of any of the following events:

(a) Any event of which such party becomes aware which, in the opinion of the party, is

likely to interfere materially with, or seriously hinder or impair; the implementation of the

project, or to interfere adversely and materially with the performance by:

(i) The borrower of its obligation under the Facility Agreement with such party.

(ii) The guarantor of its obligation under the guarantee given in favor of such party.

(b) Any notice given by the borrower to prepay the whole or any part of the loan disbursed

pursuant to the Agreement with such party and any amount thereof actually prepaid.

(c) In certain circumstances it might become necessary for the Notied Financial Institution

to call up the loan and initiate recovery proceeding against the borrower and guarantors

if any. The Notied Financial Institution would take all such measures required to protect

its interest as well as that of SFAC. While, it may not be considered prudent to consult

SFAC before taking such action, SFAC will be informed of the action taken by the Notied

Financial Institution at the earliest.

13. WRITTEN CONSENT PRIOR TO AMENDMENT

SFAC and Notied Financial Institution shall not agree to any amendment that will affect the

right or responsibilities of the other with regard to disbursement or procurement or that may

affect the right to recover the money advanced as per the original authorization schedule

without the prior written consent of the other.

14. PARTIES INDEPENDENT DECISIONS

Except as otherwise provided in this MOU, each party agrees that all its decisions, includingdecision to take or refrain from taking action concerning the project or a loan agreement

to which it is a party, shall be based exclusively on its own judgment, independently of the

information provided by, or excepted from, the other party or the views expressed by such

other part.


31/52


12- i{kksa dh vf/klwpuknksuksagh i{k fuEukafdr fLFkfr;ksaesarRdky ,d nwljsdkslwfpr djsaxs%

d ,slh dksbZHkh ?kVuk ftldsckjsesafdlh Hkh i{k dksirk pyk gksfd ml i{k dsutfj, esa;g ifj;kstuk dsdk;kZUo;u esaHkkSfrd :i lsgLr{ksi dj ldrh gS] ;k xaHkhj :i ls:dkoV;k gkfu igqpk ldrh gSvFkok fuEukafdr dsdk;Zfu"iknu ij foijhr vkSj okLrfod vlj Mky

ldrh gS%(i) ml i{k ds lkFk gq, lqfo/kk djkj ds v/khu of.kZr _.k izkIrdkkZdh ftEesnkjhA(ii) ml ikVhZdsi{k easnh xbZxkjaVh esa n'kkZbZxbZxkajVhdkkZdh ftEesnkjhA

[k fdlh i{k ds lkFk gq, djkj }kjk fn, x, _.k ds laiw.kZHkkx ;k va'k dsiwoZHkqxrku dsckjsesa_.k izkIrdkkZ}kjk nh xbZlwpuk rFkk rn~uqlkj iwoZ Hkqxrku dh xbZjkf'kA

x dqN fuf'pr ifjfLFkfr;ksaesa] vfklwfpr fokh; laLFkk dsfy, ;g vfuok;Zgksldrk gSfd og _.kokil ysysarFkk _.knkrk o xkjaVhdkkZ] ;fn gksrks] dsfo:) olwyh dh dk;Zokgh izkjaHk djsaAvfklwfpr fokh; laLFkk viusrFkk ,l,Q,lh nksuksagh i{kksadsfgrksadh j{kk djusdsfy, dne

mBk ldrh gSA ;nfi dksbZdne mBkusdsiwoZ,l,Q,lh lse'kfojk fy, tkusdh t:jr ughagSrFkkfi cSad }kjk mBk, x, dneksadslaca/k esa,l,Q,lh dks;Fkk'kh?kzlwfpr fd;k tk,xk A

13- la'kks/ku ls iwoZ fyf[kr lgefr,l,Q,lh rFkk vfklwfpr fokh; laLFkk ,d nwljslsfyf[kr lgefr izkIr fd, fcuk] ,slsfdlh Hkhla'kksku tksfdlh Hkh ,d i{k dsvf/kdkjksao mkjnkf;Roksaij izHkko Mkyrk gksvFkok tksewyvf/kr rkfydk dsvuqlkj vfxze jkf'k dh olwyh dsvf/kdkj dksizHkkfor djrk gS] dksLohdkj

ughadjsaxsA

14- nyksa ikfVZ;ksa ds Lora= fu.kZ;bl le>kSrsdsKkiu ,evks;w esa;fn vU;Fkk mfYyf[kr u gksrksizR;sd i{k bl ckr lslger

gSfd bldslHkh fu.kZ;] ftlesaifj;kstuk lslacaf/kr fu.kZ; vFkok ,d _.k djkj ftlesa;g ,dny ikVhZ gSij dkjZokbZdjus;k mlsughadjusdk fu.kZ; Hkh lfEefyr gS] bldsviusfoosdij vkkkfjr gksxk tks vU; i{k }kjk iznk ;k mllsvisf{kr lwpuk ;k vU; i{k }kjk vfHkO;Drn`f"Vdks.k lsLora= gksxkA


32/52


15. ARBITRATIONIn any case of dispute, if any, arising out of this MOU may be resolved through mutual

consultation failing which it may be done by way of arbitration by a sole arbitrator chosen by

the Notied Financial Institution and SFAC as per arbitration and conciliation Act, 1996 and

venue of the Arbitration will be New Delhi.

16. CHANNEL OF COMMUNICATION AND NOTICES(a) For the purpose of this MOU, the representative of the parties shall be:

i. For SFAC : Managing Director

ii. For the Notied Financial Institution: Chief General Manager/ General Manager

Agribusiness Group/ Priority Sector (to be indicated by the Notied Financial

Institution)

(b) Either party may, by notice in writing to the other party, designate additional representative/s

or substitute other representative/s for those designated in this Article.

(c) Any notice or other communication under MOU shall be in writing and shall be deemedto have been duly given or made when it has been delivered by hand, mail, e-mail, cable

or tele fax, as the case may be, by either party to the other at the appropriate address

specied below or such other address as either party may hereafter notify in writing to

the other party:

For SFAC: Mailing Address:

NCUI Auditorium, Vth Floor,

August Kranti Marg, Hauz Khas,

New Delhi.

Telephone:_________________ Fax:________________ E-mail:_________________________

For the Notied Financial Institution Mailing Address: __________________________________

Telephone: _________________ Fax: _______________ E-mail: _______________________


33/52


15- iap&fu.kZ;bl le>kSrk Kkiu lsmBs fdlh fookn dh fLFkfr esa] ijLij ckrphr lslqy>k, tk ldsaxsA blesafoQy gksusij] e/;LFkrk rFkk le>kSrk vf/kfu;e] 1996 ds vuqlkj vfklwfpr fokh; laLFkk ,oa,l,Q,lh }kjk p;fur ,dek= e/;LFk }kjk e/;LFkrk dsek/;e ls fookn lqy>k, tk,axs rFkke/;LFkrk dk LFkku fnYyh gksxkA

16- lapkj vkSj lwpukvksa dh .kkyhd bl le>kSrk Kkiu dsmn~ns'; gsrqfuEukafdr i{kksadsizfrfuf/k gksaxs%

(i) ,l,Q,lh dsfy, % izca/k funs'kd

(ii)vfklwfpr fokh; laLFkk dsfy, % eq[; egkizca/kd@egkizca/kd f"k O;kikj lewg@izkFkfedrk{ks= vfklwfpr fokh; laLFkk }kjk crk;k tkuk gSA

[k dksbZHkh i{k bl /kkjk esa euksuhr fd, tkus dsfy,] vU; i{k dksfyf[kr lwpuk nsrsgq,]

vfrfjDr izfrfuf/k;ksa;k vU; oSdfYid izfrfuf/k;ksadksinukfer dj ldrk gSAx le>kSrk Kkiu dsvUrxZr dksbZlwpuk vFkok lans'k fyf[kr esagksxk rFkk ;g fof/kor~ fn;k gqvk

ekuk tk,xk ;k O;fDrxr :i lsfn, tkusij blsfn;k gqvk le>k tk,xkA esy] bZ&esy] dsoy];k Vsyh QSDl] tSlh Hkh ekeyk gks] fdlh Hkh i{k ds}kjk fuEuor~ fofuZ"V mfpr irsij] tSlkfd vU; i{k dksfyf[kr esalwfpr fd;k x;k gks] Hkststk,axs%

,l,Q,lh ds fy,% Mkd irk%,ulh;wvkbZlHkkxkj] ikapokary]vxLr kfUr ekxZ] gkSt [kkl] ubZfnYyhA

VsyhQksu%------------------------------ QSDl%-------------------------------bZ&esy%-----------------------------------------------

vfklwfpr fokh; laLFkk ds fy, Mkd irk%-----------------------------------------------------------------

VsyhQksu%---------------------------------QSDl%------------------------------bZ&esy%-----------------------------------------------


34/52


17. FINAL PROVISIONS1. The Memorandum of Understanding (MOU) shall come into force upon its signature by

the authorized representatives of the parties hereto and far a term of 10 years.

2. The parties to this MOU shall before expiry of its term review the result achieved under

this MOU and consult with each other with a view to deciding whether to extend the

term of this MOU. Any extension of the term of this MOU, as aforesaid, may be affectedthrough a simple exchange of letters between the parties.

3. The parties of this MOU may amend any of the provisions of this MOU or enter into

supplementary arrangements designed to extend the scope of the present MOU.

4. Either party may terminate this MOU by giving not less than six (6) months advance

notice, in writing, to the other party; provided that such termination shall become effective

only on the date specied in the termination notice, and provided further that termination

as aforesaid shall not, unless that parties otherwise agree, effect any non-cancelable

commitments entered into under this MOU with a third party prior to the date of the

termination notice. In the event of termination by either party, both parties shall co-operate

to ensure that all arrangements made hereunder are settled in an orderly manner. In theevent of the agreement being terminated the amount already sanctioned and released

to the Notied Financial Institution will continue to be operated by the Notied Financial

Institution as if this agreement was still operative.

The focal points/contact persons under this MOU will be_____________________________ on

the _____________ in New Delhi.

For Notied Financial Institution For Small Farmers Agribusiness Consortium

CEO of the Notied Financial Institution Managing DirectorAddress: Address:

Witness:(Name & Address)


35/52


17- vafre izko/kku1- le>kSrk Kkiu i{kksadsvf/kr izfrfuf/k;ksa}kjk gLrk{kj fd, tkusij izHkkoh gkstk,xk rFkk

10 o"kZdh vof/k dsfy, izHkkoh gksxkA

2- bl le>kSrk Kkiu dslHkh i{k bldh vof/k lekfIr lsiwoZblds vUrxZr izkIr ifj.kkeksa dh

leh{kk djsaxs rFkk bldsfu.kZ; gsrqijLij fopkj&foe'kZdjsaxsfd D;k le>kSrk Kkiu dh vof/kckSrk Kkiu dslHkh i{k] le>kSrk Kkiu dsfdlh Hkh izko/kku dks la'kksf/kr dj ldrsgSarFkk orZeku le>kSrk Kkiu ds{ks= dksckSrkKkiu dksjn~n dj ldrk gS] fdUrq;g lekiu mlh fnu lsizHkkoh gksxk ftl frfFk dsckjsesalekiu lwpuk esafufnZ"V fd;k x;k gks] rFkk ;g Hkh fd tc rd nksuksai{k izko/kku u djsa]vU;Fkk mijksDrkuqlkj lekiu lslekiu lwpuk dh rkjh[k dsiwoZbl le>kSrk Kkiu dsrgr

fdlh rhljsi{k dslkFk dh xbZdksbZvLFkxuh; izfrc)rk izHkkfor ughagksxhA fdlh i{k ds}kjk lekiu fd, tkusdh fLFkfr esanksuksai{k blds rgr dh xbZO;oLFkkvksadk mfpr jhfrlsfuiVkjk lqfuf'pr djusdsfy, lg;ksx djsaxsA le>kSrk lekIr dj fn, tkusdh fLFkfr esavfklwfpr fokh; laLFkk dksigyslsgh izko/kkfur vkSj iznk jkf'k dk vfklwfpr fokh; laLFkk

}kjk bl rjg lsizpkyu fd;k tkrk jgsxk tSlsfd le>kSrk vc Hkh f;k'khy gksA

bl le>kSrk Kkiu dsvUrxZr eq[; dsUnzfcUnq@lEidZO;fDr&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&gksaxsaA

,rn~ }kjk&&&&&&&&&&&&&&&&&&&dksubZfnYyh esavius gLrk{kj djrsgSaA

vfklwfpr fokh; laLFkk ds fy, y?kq "kd f"k O;kikj la?k ds fy,vfklwfpr fokh; laLFkk dseq[; dk;Zdkjh vf/kdkjh izca/k funs'kd

irk% irk%

xokg%uke o irk


36/52


This agreement is executed on this.. day of Two thousand and (....20...) between

M/s. ., a Company incorporated under the Indian Companies Act 1956, having its place

of business/Registered Ofce at, and factory/processing unit at,

hereinafter called the BORROWER (which included his/her/its heirs, executors, administrations,

successors and assignees) as rst party & Small Farmers Agribusiness Consortium (SFAC), a

Society registered under Societies Registration Act 1860, having its Registered Ofcer at NCUI

Auditorium Building, 5th Floor, 3, Siri Institutional Area, August Kranti Marg, Hauz Khas, NewDelhi-110016 hereinafter called SFAC (which includes their assignees, attorneys and successors

in title) as Second Party.

Whereas the rst party is setting up.... and is in need of Venture Capital amount

which will be deemed to be a loan after recovery of term loan of Leading Bank..,

hereinafter called the Bank (which includes its successor banks). The Venture Capital Assistance

amount will be refundable prior to due date or on the scheduled end date of their term loan

whichever is earlier. At the request of rst party vide their application dated.. received

directly or through SFAC has considered and sanctioned Venture Capital amount of

` lakh (Rupees only) to the First party. The rst party will refund the amount of VentureCapital granted by SFAC in lump sum on liquidation of Notied Financial Institution term loan as

per original schedule of repayment, which is . as advised by Notied Financial Institution.

The borrower will tender a post dated cheque dated . for the amount of Venture Capital

Assistance amount for this purpose.

AND

Whereas in consideration of the above promises The First Party, . offered as security

by way of equitable/registered mortgage on agricultural land and appurtenants/building thereto as

required by SFAC as per details given in Annexure A and will also hypothecate movable assets like

plant & machinery/vehicles/equipment/raw materials. etc., as per details given in Annexure B,

AGREEMENT BETWEEN SFAC AND

THE BORROWER


37/52


;g djkjukek fnukad --------------------- fnu ---------------- o"kZ------------------ 20--------- dkse/;

eSllZ --------------------------------------------------------------------------------------] Hkkjrh; dEiuh ,DV 1956dsvarxZr fuxfer ,d dEiuh ftldk O;kikfjd LFky@iathr dk;kZy; ----------------------------------------vkSj fuekZ.k'[email protected] bdkbZ@-------------------------------esa gSaftldks;gkaij _.k izkIrdrkZ dgk x;k gSftlesamldk@mldh@mldk okfjl] dk;Zdkjh] iz'kkld] mkjkf/kdkjh fu;r fd;k x;k vkfn lfEefyr gS izFke

i{kdkj rFkk y?kq"kd f"k O;kikj la?k ,l,Q,lh tkslfefr iath;u vfkfu;e 1860 dsvarxZr iathr,d lfefr gSftldk iathr dk;kZy;] ,ulh;wvkbZ^lHkkxkj* Hkou 5okary] 3 lhjh baLVhV~;w'kuy ,fj;k]

vxLr kfUr ekxZ] gkSt [kkl] ubZfnYyh&110016 esagS] dse/; fu"ikfnr fd;k x;kA ;gkaij ,l,Q,lhftlesamldk fu;rd vke eq[rkj@mkjkf/kdkjh vkfn lfEefyr gS f}rh; i{kdkj dgk x;k gSA

tcfd izFke ikVhZ-----------------------------------dh LFkkiuk dj jgh gSvkSj mlsbldsfy, m|e iwath jkf'kdh t:jr gSftls_.knkrk cSad dslkof/k _.k dh olwyh dsIk'pkr _.k ds rkSj ij ekuk tk,xk ftlsbldsckn lscSad dgk tk,xk ftlesa bldsmkjkf/kdkjh cSad Hkh 'kkfey gSaA m|e iwath lgk;rk jkf'kdksns; frfFk ;k mudslkof/k _.k dh fu;r vafre rkjh[k dsigysokil djuk gksxkA izFke ikVhZdsvkosnu fnukad---------------------------tksfd lh/ks;k -------------------------dsekQZr izkIr gqvk gSdsvuqjks/k

ij ,l,Q,lh usbl ij fopkj fd;k rFkk izFke ikVhZdks`-----------yk[k :Ik, ----------------ek= m|e

iwath jkf'k dsrkSj ij Lohd`r fd, gSaA izFke ikVhZvfklwfpr fokh; laLFkk ds}kjk nh xbZlykg dsvuqlkjtksbl izdkj gS----------------------------------,l,Q,lh }kjk Lohr m|e iwath dh jkf'k dks vfklwfpr fokh;laLFkk dslkof/k _.k dksiquHkqZxrku dsewy le;&lkfj.kh vuqlkj ,d eq'r :Ik esaokil djsxkA _.khbl mn~ns'; dsfy, m|e iwath lgk;rk dh jkf'k gsrq,d iksLV MsVsM pSd fnukad-------------------------izLrqrdjsxkA

rFkk

,slh voLFkk esamijksDr oknksaij fopkj djrsgq;sizFke i{k] f"k Hkwfe rFkk vuqyXu oLrq@Hkou ij bfDoVh;ksX;@iathr ca/kd ,l,Q,lh dh vko';drkuqlkj tSlk fd layXud&Iesa fooj.k fn;k x;k gS] tekur

ds:i esansxk rFkk pylEifk tSlsdkj[kkuk@e'khusa@okgu@;a=@dPpk eky vkfn Hkh tSlk fd layXud&IIesa

,l,Q,lh rFkk _.k izkIr drkZ ds chp djkjukek


38/52


and accepted by SFAC. The other terms and conditions as agreed upon between rst party and

SFAC are as follows:

1. The CEO of the Borrowing unit must be a professionally qualied person.

2. That the lending Notied Financial Institution will hold charge on the assets (movable/immovable)

of the unit till full repayment of their term loan as per original prescribed schedule.

3. That the Venture Capital amount will automatically be deemed to be a loan from the date the

Lending Bank has actually recovered its term loan or on the schedule end date of term loan,

whichever is earlier. It may, however, be claried that in the event of re-schedulement of the

banks term loan, the entrepreneur is required to refund the Venture Capital amount as per

the original prescribed schedule because Venture Capital amount of SFAC is interest free and

nancial assistance is to be given to other eligible entrepreneurs for setting up of agribusiness

projects. However, if lending Notied Financial Institution make SFAC a party while discussing

possibility of rescheduling banks term loan, SFAC may consider request of the borrower for

rescheduling of VCA on case to case basis.

4. That Borrower has the option to refund the Venture Capital amount granted by SFAC evenprior to the due date of repayment of Term Loan.

5. That the deemed loan of SFAC as referred to above will remain secured by creation of charge

(mortgage & hypothecation) in favour of SFAC on the project assets previously held by the

Lending Notied Financial Institution and till such times as the deemed loan and interest

accrued thereon are entirely refunded to SFAC.

6. That the Borrower hereby undertakes to utilize the Venture Capital amount granted by SFAC

for the purpose for which it was granted. In the event of diversion/misutilization, SFAC reserves

the right to recall the entire amount of Venture Capital in lump sum.

7. That in case the Borrower is unable to repay the Venture Capital amount in lump sumimmediately after repayment of Notied Financial Institutions Term Loan, it will have option

to repay the entire amount of l

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SFAC VCA Guidelines-Hindi-English31!03!2014

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