EQUITY GRANT SCHEME FOR FUNDING OF PRODUCER COMPANY
Equity Grant Scheme extends support to the equity base of Farmer Producer Companies (FPCs) by providing matching equity grants subject to a maximum of Rs. 15.00 lakh per FPC in two tranches within a period of 3 Years and to address nascent and emerging FPCs which have paid-up capital not exceeding Rs. 30.00 lakh with a view to the under noted primary objectives
a) Enhancing the viability and sustainability of FPCs.
b) Enhancing the creditworthiness of FPCs.
c) Enhancing the shareholding of members to increase their ownership and participation in their FPC.
Eligibility criteria for the scheme
An FPC shall be eligible to apply for Equity Grant under the Scheme based on its fulfilling the following criteria: i.
- It is a duly registered FPO.
- It has raised equity from its Members as laid down in its Articles of Association/ Bye-laws.
- The number of Individual Shareholders is not lower than 50.
- Its paid-up equity does not exceed Rs.30 Lakh.
- Minimum 33% of its shareholders are small, marginal, and landless tenant farmers as defined by the Agriculture Census carried out periodically by the Ministry of Agriculture, GoI.
- Maximum shareholding by any one member other than an institutional member is not more than 5% of the total equity of the FPC.
- The maximum shareholding of an institutional member is not more than 10% of the total equity of the FPC.
- It has a duly elected Board of Directors (BoD) with a minimum of five members, with adequate representation from member farmers and a minimum of one woman member.
- It has a duly constituted Management Committee responsible for the business of the FPC.
- It has a business plan and budget for the next 18 months that is based on a sustainable, revenue model as may be determined by the Implementing Agency.
- It has a Statement of Accounts audited by a Chartered Accountant (CA) for at least one full financial year. 6. Equity Grant Fund The Equity Grant Fund enable.
- Application on prescribed form duly signed by two Board Members/Authorised Representative of FPC on each page.
- category wise allotment pattern of shares of FPC and proposed computation of allotment of shares out of Equity Grant may be submitted on the lines of Annexure-I.
- Resolution of the FPC Board/Governing Council to seek Equity Grant, issue of shares to the shareholders against Equity Grant, and transfer of shares (issued against Equity Grant) in case of exit of any shareholder from FPC may be submitted on the lines of Annexure-II.
- The Resolution will be ratified in the next AGM of the FPC may be submitted on the lines of Annexure -III.
- Resolution(No appointment letter required) for the appointment of Chief Executive officer of Company
- Audited Financial Statements for the last financial year.
- Photocopy of Bank Account Statement for last six months duly authenticated by the Branch Manager of the Bank.
- KYC documents of only those Representatives/Directors authorized by the Board of FPC for executing and signing documents with SFAC.
- Certificate of incorporation/commencement of business, Memorandum of Association/Articles of Association.
- Business plan for 18 months
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