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Small agri-biz consortium to become VC fund

Our Bureau

New Delhi , Nov. 5

REITERATING the Government's commitment to developing the rural economy, the Finance Minister, Mr P. Chidambaram, on Friday said the Government was taking steps to revamp the Small Farmers Agri-Business Consortium into a dynamic venture capital fund.

"Rural business goes far beyond agri-business. The UPA Government is committed to taking prosperity to rural India. We are taking steps to revamp the Small Agri-Business Consortium and convert it into a venture capital fund," Mr Chidambaram said.

The Minister also said the target for agri-credit has been doubled, and the Government was well on its way to meeting its targets in agri-credit. It has also set up a task force under Dr Vaidyanathan for reforms in co-operative credit structure.

Mr Chidambram said state governments have been asked to submit projects to avail themselves of the benefits of the Rs 8,000-crore rural infrastructure fund.

The Government is also in the process of creating a model for micro-finance. "We need to encourage micro-financing so that it is recognised, regulated and is available to the poor. The more fund is taken through micro-finance, the more business will take off," said Mr Chidambaram.

The Minister also mentioned the need to reach telecommunication services to the villages.

More Stories on : Rural Development | Venture Capital

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