Objectives of Equity Grant Fund
- The Equity Grant Fund has been set up with the primary objectives of:
- Enhancing viability and sustainability of FPCs;
- Increasing credit worthiness of FPCs;
- Enhancing the shareholding of members to increase their ownership and participation in their FPC.
An FPC shall be eligible to apply for Equity Grant under the Scheme based on its fulfilling the following criteria:
- It is a duly registered Farmer Producer Company.
- It has raised equity from its Members as laid down in its Articles of Association.
- The number of its 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, Government of India.
- Maximum shareholding by any one member other than an institutional member is not more than 5% of total equity of the Farmer Producer Company.
- Maximum shareholding of an institutional member is not more than 10% of total equity of the Farmer Producer Company.
- It has a duly elected Board of Directors (BoD) with a minimum of five members, with adequate representation from member farmers and minimum one woman member.
- It has a duly constituted Management Committee responsible for the business of the Farmer Producer Company.
- It has a business plan and budget for next 18 months that is based on a sustainable, revenue model as may be determined by the Implementing Agency.
- The FPC has an Account with a “Bank”.
- It has a Statement of Accounts audited by a Chartered Accountant (CA) for at least one full financial year.