In view of a lackluster performance of the Venture Capital Fund for Scheduled Castes launched four years ago by the UPA regime, the NDA Government is conducting a pan-India study to assess its performance. Just around 50 Scheduled Caste entrepreneurs have so far availed benefits
The proposed study comes ahead of the NDA Government plans to widen the ambit of the Centre Capital Fund for SCs to include OBC entrepreneurs as well.
Under the scheme, Dalit entrepreneurs are given Rs 15 lakh to Rs 5 crore loans at low interest rates. The Government owned IFCI funds the projects.
The objective of the study is to find whether the scheme has achieved its targets and goals; what has been the pay back capacity of the beneficiaries; whether the coverage of the scheme is adequate — whether it has covered areas dominated by SC entrepreneurs; has the scheme resulted in generating employmentIJ And also if the IFCI has succeeded in meeting the objectives of the scheme, said a senior official from the Union Social Justice and Empowerment Ministry which is overseeing the programme.
Beneficiaries representing from 15-16 states in the country, with major ones being Maharashtra, Telangana, Uttar Pradesh, Andhra Pradesh, Punjab, Gujarat, Haryana and Kamataka will be covered.
Even as the agency is yet to be finalised to conduct the study, the Ministry has already moved a proposal to the Finance Ministry for creation of such a fund for OBC entrepreneurs and directed the National Backward Classes Finance and Development Corporation to report on whether it can fund such a scheme by raising money from the market.
The IFCI is funding the entrepreneurs under the Venture capital fund for SCs. However, there have been complaints against the IFCI for keeping stringent eligibility criteria.
In his February 2014 Budget speech, the then Finance Minister P Chidambaram had announced setting up of the Venture Capital Fund for SCs. Almost a year later, the NDA Government launched its version of the scheme providing Dalit entrepreneurs with funding for their business ventures — in manufacturing, retail, or service sectors — at interest lower than the prevailing market rate. Women and disabled SC entrepreneurs are provided loan at 7.75 per cent interest.
