Assam signs MoU with Caspian Impact Investment Adviser to launch an SME Investment Fund for agricultural growth

GUWAHATI, 27 June 2023: The Government of Assam, through the Assam Rural Infrastructure and Agricultural Services (ARIAS) Society, has signed a Memorandum of Understanding (MoU) with Caspian Impact Investment Adviser (Caspian Equity) to establish an investment fund aimed at enhancing agricultural growth and employment opportunities in the state.

The collaboration between the government body and the venture capital institution marks a significant step towards strengthening rural infrastructure and fostering agricultural productivity.

The partnership entails the establishment and implementation of the Assam Agribusiness Investment Fund (AAIF), a contributory and determinate investment trust. ARIAS will act as the nodal agency for the fund, while Caspian Equity will serve as the fund manager.

The AAIF, with an initial corpus of INR 250 crore, will primarily focus on investing in small and medium enterprises (SMEs) within the agribusiness and allied sectors, aiming to achieve accelerated growth.

The World Bank, through the Assam Agribusiness and Rural Transformation Project (APART), will provide anchor funding for the AAIF. As a Category II Alternative Investment Fund registered with the Securities and Exchange Board of India (SEBI), the AAIF represents a unique sector-specific fund initiated by a state government in India, with the objective of boosting agricultural productivity and generating employment opportunities.

Akash Deep, IAS, State Project Director of ARIAS Society, expressed his optimism about the partnership, stating that it will address key challenges faced by rural communities in Assam.

By leveraging the collective strengths of the government and Caspian Equity and through targeted investments, the initiative aims to enable farmers and rural entrepreneurs in Assam to adopt sustainable agricultural practices and advanced technologies, leading to enhanced efficiency and reduced environmental impact.

Toshiaki Ono, Finance Sector Specialist at the World Bank Group, emphasized the bank's commitment to supporting the development of the food value chain in Assam. He noted that agribusiness SMEs play a crucial role in this transformation but often face limited access to external finance for their growth.

He expressed enthusiasm for the launch of the Assam Agribusiness Investment Fund, which he believes will support high-growth and high-impact agribusiness SMEs, contributing to vibrant and resilient agri-food value chains in Assam.

Saurabh Johri, Executive Director and CEO of Caspian Impact Investment Adviser Pvt. Ltd., expressed delight over the collaboration with ARIAS and their shared mission to catalyze the economic development of rural communities in Assam. He emphasized the goal of making a sustainable impact and empowering individuals to thrive.

Ravi Narasimham, Investment Director at Caspian, will lead the fund, and Johri looks forward to building on the partnership with ARIAS to create a prosperous and empowered rural community. He added that the AAIF Fund aligns with Caspian's vision to work at the grassroots level and make a deep impact toward achieving the UN Sustainable Development Goals.

The launch of the Assam Agribusiness Investment Fund represents a significant milestone in the government's efforts to boost agricultural growth, strengthen the rural ecosystem, and create employment opportunities in Assam.

With strategic investments and collaboration between the public and private sectors, the fund aims to drive sustainable development and contribute to the economic prosperity of the state's rural communities.

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