Executive Summary:
The Ministry of Tribal Affairs launched the Venture Capital Fund for Scheduled Tribes (VCFST) on February 10, 2024, with a corpus of Rs. 50 crore to promote entrepreneurship among STs. A symposium was organized on January 28, 2025, to discuss strategies for uplifting tribal entrepreneurs and catalyzing investments. The fund is implemented through IFCI VCF Ltd.
Key Points / Main Content:
Venture Capital Fund for Scheduled Tribes (VCFST):
* Launched on February 10, 2024, with a corpus of Rs. 50 crore.
* Aims to promote entrepreneurship among Scheduled Tribes (STs) across the country.
* Floated as Alternative Investment Fund (AIF) Category-II under SEBI as debt oriented.
* Implemented through IFCI VCF Ltd.
* Rs. 8.41 crores have been sanctioned to two tribal companies: one in Telangana (Rs. 5.00 crores) and one in Chhattisgarh (Rs. 3.41 crores).
Symposium on Startup Ecosystem:
* Organized by IFCI VCF Ltd. on January 28, 2025.
* Invited major Venture Capitalists and Impact Investors.
* Focused on actionable strategies to uplift tribal entrepreneurs and catalyze investments.
* Participants included representatives from Indian Angel Network, Info Edge, IVCA, Aavishkaar Capital, GrowthCap Ventures, Villgro, SKI Capital, IFCI Venture, and former officials of SIDBI.
Key Recommendations from the Symposium:
* Building quality tribal enterprises.
* Targeted capacity-building programs at the village level.
* Identifying specific industries with high potential for tribal empowerment and innovation (e.g., agriculture, handicrafts, and sustainable development).
* Promoting Fund of Funds (FOF) models to channel investments into innovative and impactful sectors.
Impact Analysis:
Scheduled Tribes (Entrepreneurs):
* Impact: Potential access to funding, training, and resources to start and grow businesses. The fund aims to uplift tribal entrepreneurs and promote inclusive growth.
* Action Required: To explore opportunities for funding and support through the VCFST and participate in relevant training programs.
IFCI VCF Ltd.:
* Impact: Responsible for implementing the VCFST scheme.
* Action Required: Continue to identify and support promising tribal ventures, manage the fund effectively, and organize events to promote entrepreneurship among STs.
Venture Capitalists and Impact Investors:
* Impact: Invited to invest in tribal-led startups and contribute to inclusive growth.
* Action Required: Consider investment opportunities in tribal enterprises and support the development of the tribal startup ecosystem.
Key Entities Referenced
Ministry of Tribal Affairs: The Indian government ministry responsible for the welfare and development of Scheduled Tribes.
Scheduled Tribes: Indigenous communities in India recognized by the Constitution as historically disadvantaged.
Venture Capital Fund for Scheduled Tribes: A financial scheme launched by the Ministry of Tribal Affairs to promote entrepreneurship among Scheduled Tribes.
Rajasthan: A state in India with significant Tribal population.
Madhya Pradesh: A state in India with significant Tribal population.
Maharashtra: A state in India with significant Tribal population.
Telangana: A state in India with significant Tribal population.
IFCI VCF Ltd: The implementing agency for the Venture Capital Fund for Scheduled Tribes (VCFST).
GOVERNMENT OF INDIA
MINISTRY OF TRIBAL AFFAIRS
LOK SABHA
UNSTARRED QUESTION No. 3048
TO BE ANSWERED ON 07.08.2025
SYMPOSIUM ON START-UP ECOSYSTEM
3048. Shri Bhojraj Nag:
Smt. Sandhya Ray:
Dr. Hemant Vishnu Savara:
Smt. Himadri Singh:
Shri Mahendra Singh Solanky:
Shri Basavaraj Bommai:
Shri Chhatrapal Singh Gangwar:
Shri Rodmal Nagar:
Shri Godam Nagesh:
Ms Kangna Ranaut:
Shri Chandra Prakash Joshi:
Shri Mukesh Rajput:
Shri Naba Charan Majhi:
Will the Minister of TRIBAL AFFAIRS be pleased to state:
(a) the objectives of the symposium organised on development of Startup Ecosystem for Scheduled
Tribes (STs);
(b) the total amount and structure of the newly formed Venture Capital Fund for ST entrepreneurs
and its allocation;
(c) the names of the institutions consulted to prepare strategies to promote entrepreneurship at the
tribal level;
(d) the key recommendations of the symposium including steps proposed to strengthen supply
chains, ensure grassroots-level training and enhance access to public markets for tribal startups;
(e) the details of the plan to develop a startup ecosystem in TSP areas of Rajasthan, Madhya
Pradesh, Maharashtra and Telangana;
(f) the details and the names of the schemes through which the Government has extended benefits
in the said States during the last five years, district-wise;
(g) the details of the people belonging to Scheduled Tribes benefitted under startup schemes in the
said States, district-wise;
(h) whether the Government proposes to conduct such events or incubation drives in ST-dominated
blocks of the Dewas–Shajapur Constituency and if so, the details thereof; and
(i) the measures being taken to ensure access to funding, training and digital infrastructure for ST
entrepreneurs in this region?
ANSWER
MINISTER OF STATE FOR TRIBAL AFFAIRS
(SHRI DURGADAS UIKEY)
(a) to (i) The Ministry had launched the scheme of ‘Venture Capital Fund for Scheduled Tribes’
(VCF-ST) on 10th February, 2024 with a corpus of Rs. 50 crore to promote entrepreneurship
among STs across the country including Rajasthan, Madhya Pradesh, Maharashtra and Telangana.
The fund is floated as Alternative Investment Fund (AIF) Category-II under Securities andExchange Board of India (SEBI) as debt oriented. The scheme is implemented through IFCI VCF
Ltd. So far, an amount of Rs. 8.41 crores have been sanctioned to two tribal companies – one in
Telangana (Rs. 5.00 crores) and one in Chhattisgarh (Rs. 3.41 crores).
Under the scheme, IFCI VCF Ltd. organized a Symposium on 28th January, 2025 wherein
major Venture Capitalists and Impact Investors were invited to deliberate on actionable strategies
aimed at uplifting tribal entrepreneurs, catalyzing investments in tribal-led startups and fostering
inclusive growth. The participants included representatives from Indian Angel Network, Info
Edge, IVCA, Aavishkaar Capital, GrowthCap Ventures, Villgro, SKI Capital, IFCI Venture and
former officials of SIDBI. The key recommendations from the symposium included building
quality tribal enterprises, targeted capacity-building programs at village level, identify specific
industries with high potential for tribal empowerment and innovation, such as agriculture,
handicrafts, and sustainable development and promote Fund of Funds (FOF) models to channel
investments into innovative and impactful sectors.
*****