AgriSURE fund || Alternative investment funds || IAS

Description

AGRI SURE Fund

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Context:

Union Minister for Agriculture and Farmers’ Welfare and Rural Development, launched the AgriSURE Scheme.

More in news

Apart from the launch of the scheme, the 2024 Greenathon award was also distributed.
The top three start-ups—Greensapio, Krushikanti, and Ambronics—were selected as the Winner, Runner-Up, and Second Runner-Up, respectively, from a total of 10 finalists.

Greenathon

It was launched on 12 July 2024 at Mumbai.
AgriSURE Greenathon Awards, is awarded to the most innovative start-ups developing tech-centric solutions to address challenges faced by farmers across various stages of the agri-value chain, from selection of input to marketing and value addition.
Award has a prize pool of ₹6 lakhs.

AgriSURE - Agri Fund for Start-ups & Rural Enterprises

It is an innovative fund to focus on technology-driven, high-risk, high-impact ventures in the agriculture sector in India.
It is designed to fuel growth and foster innovation in the agricultural and rural start-up ecosystem.

Funding:

A Blended capital fund of ₹750 crore with SEBI Registered Category II, Alternative Investment Fund (AIF).
Out of the total fund, contributions from the Government of India is ₹250 crore, NABARD is ₹250 crore, and ₹250 crore is being mobilised from banks, insurance companies, and private investors.
NABVENTURES a fully owned subsidiary of NABARD will act as the fund manager.

Focus areas:

Promoting innovative, technology-driven initiatives in agriculture, enhancing the farm produce value chain, creating new rural ecosystem linkages and infrastructure, generating employment and supporting Farmers Producer Organisations (FPOs).
The fund would boost entrepreneurship through IT-based solutions and machinery rental services for farmers, and drive sustainable growth and development in the agricultural sector.

Alternative Investment Fund (AIF)

Definition :

●Alternative investment funds (AIFs) are defined in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.

●It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP).

●Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India.

Categories of Alternative Investment Funds (AIFs)

As per Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Alternative Investment Funds shall seek registration in one of the three categories

●Category I: Mainly invests in start- ups, SME's or any other sector which Govt. considers economically and socially viable.

●Category II: These include Alternative Investment Funds such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other Regulator

●Category III : Alternative Investment Funds such as hedge funds or funds which trade with a view to make short term returns or such other funds which are open ended and for which no specific incentives or concessions are given by the government or any other Regulator.

Important articles for reference:

Agri Sure funds

Capital Gains Tax

Equalisation Levy

Corporate Taxes

Minimum taxes on big business

Sources:

https://pib.gov.in/PressReleasePage.aspx?PRID=2051466

https://www.bseindia.com/Static/about/alternative_investment_funds.aspx

PRACTICE QUESTION

Q. Match the following Categories of Alternative Investment Funds (AIFs) with their features:

AIF	Feature
Category I	Mainly invests in start- ups, SME's or any other sector which Govt. considers economically and socially viable.
Category II	These are funds which trade with a view to make short term returns
Category III	These include private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other Regulator.

How many of the above pairs is/are correctly matched:

A)Only one

B) Only two

C) All three

D) None

Answer:A

Explanation:

Statement 1 is correct:

As per Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Alternative Investment Funds shall seek registration in one of the three categories

●Category I: Mainly invests in start- ups, SME's or any other sector which Govt. considers economically and socially viable.

Statement 2 is incorrect:

●Category II These include Alternative Investment Funds such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other Regulator.

Statement 3 is incorrect: