The government will soon launch the ‘Fund for Agricultural Innovation,’ a Rs 750 crore initiative aimed at bolstering agricultural innovation and supporting start-ups and rural enterprises.
About the fund:
- It aims to assist start-ups facing challenges in scaling operations due to limited access to equity and enhance investments in the agricultural sector and promote efficiency.
- Blended capital support, managed by Nabventures, a subsidiary of NABARD, will facilitate this initiative.
- The Ministry of Agriculture will roll out blended finance, strategically using development finance to mobilize additional funds for sustainable development in developing countries.
Objectives and Scope:
- The fund will support approximately 85 start-ups over the next 5 years, with individual investments up to Rs 25 crore.
- A distinct trust will be established within Nabventures to register the fund with Securities Exchange Board of India (SEBI) formally.
Allocation and Beneficiaries:
- Rs 250 crore each will be contributed by NABARD and the Ministry of Agriculture to the fund.
- Start-ups in agritech, animal husbandry, fisheries, food processing, and biotechnology sectors will get benefits.
NABARD’s Additional Fund:
- NABARD is also launching a Rs 1000 crore blended fund for agritech start-ups to bolster technology-driven solutions in agriculture and rural enterprises.
- The fund will address challenges such as limited access to equity and debt instruments.
Other key facts:
- Agritech start-ups offer services such as smart agriculture, farming as a service, and big data analytics to boost productivity and efficiency.
- Challenges faced include incubator competence, business model alignment, and lack of seed funding and mentorship.
- Various government initiatives like Digital Agriculture Mission (DAM), Innovation and Agri-Entrepreneurship Development Programme, and NIDHI Seed Support Program support innovation and entrepreneurship in agriculture.
Ref:Source
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