5. Role of Central SFAC

•  On receipt of Proposal from bank indicating sanction of term loan and requirement of VCA, SFAC will submit the proposal to its investment committee for approval after field visit and satisfying itself about the viability and linkages with farmers etc.

•  SFAC after seeking approval of its investment committee and sanction by its Managing Director will release VCS to the bank.

•  SFAC will seek approval of its executive Committee in cases where higher Venture Capital Assistance is proposed to be considered.

•  SFAC's Project Development Facility will investigate such proposals, which may include site visits, referred by bank needing clarification to determine if projects are qualifying or not and report to Bank within 30 days of receipt of reference.

•  In case SFAC receives proposals of PDF & VCA directly from intending groups, these will be directed to nodal officers of concerned bank.

•  Central SFAC will strengthen the State SFACs and assist them in undertaking promotional activities, campaigns, printing of guidelines in local language, identification of qualifying projects and in organising producer groups.

•  SFAC will have Memorandum of Understanding with all participating lending banks as per Indian Bank Association approved model, (Annexure II).

•  SFAC will have a separate agreement with the applicant for facilitating the recovery of its equity amount extended under Venture Capital assistance. (Annexure III)

6. Role of State SFACs

•  As extended arms, State SFACs as federal unit have been established in 17 States to aggressively promote agribusiness project development in their respective States. (Annexure IV)

•  State SFACs in consultation with Central SFAC will prepare a plan for agri-business project development in their respective States.

•  State SFACs after due diligence and ascertaining the backward linkages as per the objectives will recommend agri-business projects to Central SFAC for equity participation.

•  State SFACs with assistance under PDF facility will organize awareness and publicity campaigns, arrange training of entrepreneurs for setting up identified projects, publish guidelines of the scheme in local languages, undertake promotional activities and organize producer groups.

•  Help producer groups in framing pre-feasibility reports and facilitate interaction with local banks for their recommendation.

•  Function as repositories of information maintaining a data base of potential areas, producer groups and marketable surplus of various crops available.

•  Provide venture capital to small projects out of interest earned on the Corpus fund and refer large projects to Central SFAC.

•  As a Member of SLBC, raise the issues concerning agribusiness project development in their respective States during the SLBC meetings.

•  Monitor the projects through their implementation stage and developments / deficiencies will be reported to Central SFAC for initiating remedial action.

7. Role of Agripreneurs

For the success of the Venture, the agribusiness projects should be grounded within a predetermined time schedule as fixed in the sanction of term loan.

•  For the release of Venture Capital, agripreneurs will have to enter into a agreement with SFAC for the purpose of refund of equity fund and also transfer of charge on securities which would take place after the repayment of the term loan to the financing bank.

•  Agripreneurs will submit implementation schedule of the Project to SFAC and participating bank which will be closely monitored by SFAC.

•  Deviation, if any, in the implementation schedule should be immediately notified to the Bank and to SFAC.

•  Agripreneurs will submit utilization certificate of Venture Capital assistance in GER 19 A duly certified by Chartered Accountant to SFAC and the participating bank, at the end of each financial year. (AnnexureV)