Boosting Entrepreneurship Among Tribals: Centre Launches Venture Capital Fund
New Delhi – In a bid to promote entrepreneurship among tribal communities, the Centre has introduced the ‘Venture Capital Fund for Scheduled Tribes’. This first-of-its-kind initiative aims to provide financial support to tribals involved in various businesses, including manufacturing, allied sectors, start-ups, and technology incubation units. The scheme, which offers concessional finance at a reduced interest rate, aims to ensure asset creation and self-reliance among tribal entrepreneurs.
Financial Assistance for Tribal Entrepreneurs
Beneficiaries of the scheme will have access to investments ranging from Rs 10 lakh to Rs 5 crore for a duration of up to 10 years. The concessional finance, with an interest rate of 4% per annum, aims to encourage entrepreneurship. Women and disabled individuals will have the opportunity to avail concessional finance at an even lower interest rate of 3.75%.
Government’s Initiative to Support Tribal Entrepreneurs
The President of India, Droupadi Murmu, inaugurated the ‘Venture Capital Fund for Scheduled Tribes’ during the tribal festival called ‘Aadi Mahotsav’ at Major Dhyan Chand National Stadium in Delhi. The Ministry of Tribal Affairs has set up an IFCI Venture Capital Funds stall to assist tribal individuals who wish to benefit from the scheme. The initiative is jointly managed by IFCI Venture, a subsidiary of IFCI Ltd, and the Tribal Cooperative Marketing Development Federation of India (TRIFED).
Monitoring and Outreach of the Scheme
To ensure effective implementation of the ‘Venture Capital Fund for Scheduled Tribes’, the government plans to establish an advisory committee responsible for monitoring the outreach and execution of the scheme. This committee will play a crucial role in guiding and assisting tribal entrepreneurs throughout the process.
Celebrating Tribal Culture and Artistry
The tribal festival at Major Dhyan Chand National Stadium is a platform that showcases the rich cultural heritage of tribal communities. Over 1,000 artisans from across states are participating in the event, along with approximately 300 stalls featuring tribal art, handicrafts, natural products, and cuisine. The festival will be open to the public until February 18, providing an opportunity for visitors to experience the diversity and beauty of tribal life.
Preserving Traditional Knowledge for Sustainable Development
In her address, President Droupadi Murmu emphasized the importance of preserving traditional skills and knowledge amidst the challenges of climate change. She highlighted the need to learn from tribal communities and their harmonious way of living with nature. The President also stressed the potential of technology in preserving and utilizing traditional knowledge for sustainable development.
Analyst comment
Positive
As an analyst, the introduction of the ‘Venture Capital Fund for Scheduled Tribes’ is expected to have a positive impact on the market. This initiative will boost entrepreneurship among tribal communities and provide financial support to tribal entrepreneurs in various businesses. It will encourage asset creation, self-reliance, and economic growth among tribal entrepreneurs. The concessional finance and lower interest rates offered under the scheme will further incentivize entrepreneurship and promote inclusivity. Additionally, the government’s commitment to monitoring and outreach of the scheme ensures effective implementation and success. Overall, this initiative will contribute to the development and empowerment of tribal communities in India.
