Union unveils Venture Capital Funds to fuel Tribal Startups

By Team Startupcity  |  Monday, 12 February 2024, 08:43 IST

Union unveils Venture Capital Funds to fuel Tribal Startups
The Centre inaugurated the scheme 'Venture Capital Fund for Scheduled Tribes', with the aim of fostering entrepreneurship among tribal communities. This unique initiative seeks to provide support to tribal entrepreneurs across various sectors such as manufacturing, allied industries, start-ups, and technology incubation units, thereby promoting asset creation. The application portal is now live, and officials have commenced on-the-ground outreach efforts in tribal areas.
President Droupadi Murmu launched this Venture Capital Fund (VCF) for tribals during the esteemed tribal festival, 'Aadi Mahotsav,' held at the Major Dhyan Chand National Stadium in Delhi. Under this scheme, beneficiaries will have access to investments ranging from 10 lakh to 5 crore for a period of up to 10 years, with concessional finance available at 4 percent per annum. Notably, women and disabled individuals will benefit from a reduced rate of 3.75 percent. President Murmu highlighted the potential of tribal entrepreneurs to bolster India's self-reliance.
Furthermore, the Ministry of Tribal Affairs established an IFCI Venture Capital Funds stall at the event to provide guidance to interested tribals on leveraging the VCF-ST scheme. Managed by IFCI Venture, a subsidiary of IFCI Ltd, a Government of India undertaking, the VCF is a SEBI registered venture capital initiative. The Ministry of Tribal Affairs and the Tribal Cooperative Marketing Development Federation of India (TRIFED) are the primary investors in the VCF-ST Scheme.
President Murmu underscored the importance of embracing tribal lifestyles in the face of climate change, emphasizing the need to learn from tribal communities to coexist harmoniously with nature. She noted the detrimental effects of modernization on the environment and stressed the potential for tribal communities & startups to benefit from new technologies for sustainable development.
Speaking to this, the President added, "But now many traditional skills are dying out. This knowledge tradition is in danger of extinction. Our effort should be to accumulate this invaluable fund and also use it properly as per today's need. Technology can play an important role in this effort also".

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