Scheme of Venture Capital Fund for Scheduled Castes

The Venture Capital Fund for Scheduled Castes (VCF-SC) is supporting SC entrepreneurs in establishing technology-driven manufacturing enterprises, generating quality employment and contributing to India’s vision of self-reliance.

About the Scheme

The scheme was launched in 2014–15 by the Ministry of Social Justice and Empowerment. Its primary objective is to provide concessional finance to Scheduled Caste entrepreneurs, with priority given to Women and Disabled SC entrepreneurs.

The Fund was initially established with a capital of ₹200 crore, which is supplemented periodically.

Institutional Structure

The Fund has been established and registered under the SEBI Alternative Investment Fund (AIF) Regulations, 2012. The Government of India acts as the Anchor Investor, while IFCI Ltd. is the Sponsor Investor.

A key feature of the scheme is its ability to provide financial assistance ranging from ₹10 lakh to ₹15 crore.

Funding Pattern

For projects up to ₹5 crore:
The Fund can finance a maximum of 75% of the project cost, while the remaining 25% must be contributed by the promoters.

For projects above ₹5 crore:
The Fund can finance a maximum of 50% of the project cost. At least 25% must be financed through banks or other financial institutions, while the remaining 25% is contributed by the promoters.

Objectives

The scheme aims to promote entrepreneurship among SCs, particularly entrepreneurs focused on innovation and growth-oriented technologies. It seeks to provide concessional finance to viable SC-owned businesses, promote wealth and value creation, increase financial inclusion, and encourage the economic development of SC communities.