Government to soon launch agri fund for start-ups & rural enterprises
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With an aim to foster innovation and sustainability in India's agricultural sector, the Government is poised to launch the 'Agri Fund for Start-Ups & Rural Enterprises' (AgriSURE) to support start-ups and agripreneurs through investments in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs), as well as direct equity support to start-ups working in Agriculture and allied sectors. A Rs 750 crore Category-II Alternative Investment Fund (AIF) will be set up which will offer both equity and debt support, specifically targeting high-risk, high- impact activities in the agriculture value chain.
The fund will be set up with an initial corpus of Rs 750 crore with Rs 250 crore each from NABARD and the Ministry of Agriculture, and Rs 250 crore from other institutions. The fund will focus on innovation in agriculture, enhancing the farm produce value chain, creating rural infrastructure, generating employment, and supporting Farmers Producer Organizations (FPOs).
The fund will also encourage IT-based solutions and machinery rental services for farmers. NABVENTURES, a wholly-owned subsidiary of NABARD, will be the Fund manager of AgriSURE. The fund is designed to operate for 10 years, extendable by two or more years.
