Venture Capital Fund for Scheduled Castes 2026

The FOCUS Scheme in Meghalaya aims to empower farmer groups by boosting their production and improving market Read More... access, ultimately leading to higher incomes. Read less

Details

Farmers in Meghalaya looking to scale up their production and find better markets now have a dedicated scheme to help them. The Government of Meghalaya has launched the FOCUS Scheme, which stands for Farmer’s Collectivization for Upscaling Production and Marketing Systems.

What Is The FOCUS Scheme?

This is a key initiative by the Planning Department of the Meghalaya Government. It's designed to support groups of farmers and those involved in allied agriculture activities. The goal is to make their collective efforts stronger, increase what they produce, and connect them to better markets.

Who Can Benefit From This Scheme?

The scheme specifically targets Producer Groups (PGs). These groups should comprise farmers who are working together in agriculture or related fields within the same village. The idea is to bring together individuals with similar income-generating activities to achieve more together.

Why This Scheme Is Important

By providing direct financial support and facilitating access to loans, the FOCUS Scheme helps farmers overcome common challenges. It allows them to invest in better farming practices, expand their production capacity, and reach wider markets, which is crucial for increasing their overall income and improving their livelihoods.

Objective

The FOCUS Scheme in Meghalaya aims to empower farmer groups by boosting their production and improving market access, ultimately leading to higher incomes.

Benefits

Size of Financial Assistance

Financial assistance available ranges from ₹10,00,000/- (minimum) to ₹15,00,00,000/- (maximum).

Aggregate financial assistance must not exceed two times the current net worth of the Company.

Funding Tenure

The maximum tenure for financial assistance is up to 10 years, including the moratorium period in the case of debentures.

In the case of equity, the decision for exit would be taken on a case-to-case basis, with a maximum tenure up to 10 years.

Returns/Coupons/Interest Rate

For debt/convertible instruments, the interest/coupon rate is 4% per annum.

For Scheduled Caste women entrepreneurs and disabled entrepreneurs accessing debt/convertible instruments, the interest/coupon rate is 3.75% per annum.

In equity investment, the return at the time of exit by way of buyback, strategic investment, or Initial Public Offering (IPO) shall be 8% per annum or as per the valuation, whichever is higher.

Working Capital Gap Funding

The fund offers working capital gap funding, where a maximum of 20% of the total financial assistance should be earmarked for this purpose for the next 10 years.

The quantum of such assistance shall be approved by the Investment Committee as per the requirement of the project, on a case-to-case basis.

Technology Business Incubator (TBI) Funding

Innovative ideas selected by Technology Business Incubators (TBIs) may receive funding to cover the cost of operation and maintenance.

This funding is subject to a ceiling of ₹10,00,000/- on an average per year for a period of three years, subject to satisfactory progress.

Moratorium Period for Principal Redemption

In the case of debentures, the moratorium period for the redemption of the principal is on a case-to-case basis, but not more than 36 months from the date of investment in the Company.

Cost Bearing for Documentation

The fees for the Valuer and the Lawyer for conducting valuation and title search of the property(ies) shall be borne by the Venture Capital Fund for Scheduled Castes (VCF-SC) for the first time.

Disbursement

For financial assistance up to ₹5,00,00,000/-, investment shall be funded maximum up to 75% of the project cost, and the balance 25% must be funded by the promoters or through Government subsidy under various schemes.

For financial assistance above ₹5,00,00,000/-, investment shall be funded maximum up to 50% of the project cost.

For financial assistance above ₹5,00,00,000/-, at least 25% of the project cost shall be funded by promoters or through Government subsidy under various schemes, and the balance 25% can be funded either by promoters, a bank, or any other Financial Institution.

For companies with sanctioned assistance of above ₹5,00,00,000/-, the money released by the Trust/Fund Manager would be in proportion to the loan tranche/promoter’s contribution released by a Bank/department of Government of India, except in cases supported under the Innovative ideas category selected by Technology Business Incubators (TBIs).

The investment disbursement shall be made in tranches.

The disbursement shall be made post execution of the complete legal documents.

Disbursement is subject to the completion of the sanctioned terms, pre-disbursement conditions, and the successful completion of Valuation and Title Search Report (TSR).

Conditions

Interest/Coupon payment shall commence from the date of investment in the Company.

Interest payments will be made quarterly by the company to Venture Capital Fund for Scheduled Castes (VCF-SC).

The shareholding of Scheduled Castes entrepreneurs (at least 51%) has to be maintained till the assistance under this fund is present in the company.

If working capital assistance is extended to existing beneficiaries, the account must be standard.

If working capital assistance is extended to existing beneficiaries, the beneficiary company should have applied to nationalized/private/cooperative Banks for working capital assistance.

In cases where Government subsidy is available, the promoters will have to contribute at least 15% of the project cost.

If any modification is requested by the Company/Promoters for change in the property after the first valuation/title search, the fees for the Valuer and Lawyer shall be borne by the Company/Promoters.

Sources and references

Scheme Brochures

Who Can Apply for FOCUS Scheme?

To be eligible for the FOCUS Scheme, Producer Groups (PGs) and their members must meet the following conditions:

The Producer Group must consist of 10 to 20 members, all residing in the same village.
Members should be involved in the same or similar agricultural or allied sector activities that have good potential for generating income.
The group needs to be formally registered as a Producer Group (PG) as per the scheme's guidelines.
Every member must possess a valid Family ID or Citizen ID issued by the Government of Meghalaya.
Each member must belong to a different household.
Every member must have a unique Family ID.

How to Apply for the FOCUS Scheme

To apply for the FOCUS Scheme, Producer Groups (PGs) need to follow these steps:

Gather all the necessary details for your Producer Group, including the PG name and the names and designations of its members.
Ensure each member has their valid Family ID and Citizen ID. You can download the format from the official link: Download Family ID/Citizen ID Link.
Collect the bank account details for the Producer Group, including the Bank Name, IFSC Code, Branch Name, and Account Number.
Prepare the Memorandum of Association for your group. A download link is provided for your reference: Download Memorandum of Association Format.
Submit the complete application form along with all required documents. (Note: Specific submission location/method is not detailed in the provided input, please refer to official notifications for the exact process).

Documents You Need to Submit

When applying for the FOCUS Scheme, Producer Groups (PGs) must submit the following documents:

Details of the FOCUS Producer Group (PG), including its name and the names and designations of all members.
Valid Family ID and Citizen ID for each member. You can find a download link for the format here: Download Family ID/Citizen ID Link.
The Producer Group's bank account details: Bank Name, IFSC Code, Branch Name, and Account Number.
Memorandum of Association (MOA) for the group. A download link is available here: Download Memorandum of Association Format.

FAQ’s

What is the main purpose of the FOCUS Scheme in Meghalaya?

The FOCUS Scheme aims to help farmer groups in Meghalaya become stronger, produce more, and access better markets to increase their earnings. It's a major initiative by the state's Planning Department.

Can an individual farmer apply for the FOCUS Scheme?

No, the FOCUS Scheme is designed for groups. Only formally registered Producer Groups (PGs) with 10 to 20 members engaged in similar agricultural or allied activities are eligible.

How much financial assistance can a Producer Group get each year?

Each eligible Producer Group can receive an annual cash benefit of anywhere between ₹50,000 and ₹1,00,000, which helps them in their production and marketing efforts.

What is the process for receiving the financial benefit?

The financial benefits are transferred directly to the Producer Group's bank account using the Direct Benefit Transfer (DBT) system, ensuring transparency and quick delivery.

What portion of a project's cost does the Meghalaya Government cover upfront?

The Government of Meghalaya is quite supportive, covering 80% of the total project cost upfront for eligible Producer Groups.

How is the remaining 20% of the project cost handled?

The remaining 20% is arranged as a bank loan. Of this loan amount, the entrepreneur contributes 5%, and the government supports the other 75%.

Which financial institutions are involved in disbursing funds?

The subsidy amounts are channeled and disbursed through financing partners that have been approved by the scheme.

What is the maximum duration for repaying the bank loan taken under the scheme?

Beneficiaries have a flexible repayment period of up to 15 years for the bank loan taken as part of the scheme.

Is there a penalty if we want to pay back the loan early?

No, you don't need to worry about extra charges. The scheme allows for pre-closure of the loan without any penalties.

What are the basic requirements for members of a Producer Group?

Members must all be from the same village, belong to different households, and each must hold a unique Family ID or Citizen ID issued by the Government of Meghalaya.