Guwahati : The Assam Rural Infrastructure and Agricultural Services (ARIAS) Society, an autonomous body under the Government of Assam signed a Memorandum of Understanding (MoU) with Caspian Impact Investment Adviser Private Limited for strengthening rural infrastructure and fostering agricultural productivity in the state of Assam.
Caspian Equity, a venture capital institution that invests in social impact enterprises. ARIAS will be the nodal agency for establishing and implementing a contributory and determinate investment trust - the Assam Agribusiness Investment Fund (AAIF).
ARIAS is designated as the anchor investor for the AAIF, which will be managed by Caspian Equity as the fund manager.
With anchor funding from the World Bank through Assam Agribusiness and Rural Transformation Project (APART), AAIF will operate as a Category II Alternative Investment Fund registered with the Securities and Exchange Board of India (SEBI).
Dr. Ashish Kumar Bhutani, IAS, Agriculture Production Commissioner, Government of Assam and Chairman, ARIAS Society, said that AAIF is a unique and first-of-its-kind State-led initiative that aims to address the critical gaps in value chain finance in the agriculture and allied sectors and help increase farmers' income.
Akash Deep, IAS, State Project Director, ARIAS Society, said that the partnership is aimed at identifying and addressing key challenges faced by the rural communities in Assam. It will open up new avenues for us to advance our efforts in rural development.
By leveraging our collective strengths and through targeted investments, the initiative will enable farmers and rural entrepreneurs of Assam to adopt sustainable agricultural practices and advanced technologies to enhance efficiency and reduce environmental impact.
Toshiaki Ono, Finance Sector Specialist, World Bank Group, said that the World Bank is committed to supporting food value chain development in Assam in response to the growing demand for high-value food products.
Agribusiness SMEs play a vital role in this transformation but external finance, especially long-term and patient capital for their growth is extremely limited. They are very much excited to launch the Assam Agribusiness Investment Fund with the Government of Assam, the ARIAS Society, and the Caspian Impact Investment Advisor.
They are confident that the Fund will support high-growth and high-impact agribusiness SMEs for vibrant and resilient agri-food value chains in Assam.
Saurabh Johri, Executive Director and Chief Executive Officer (CEO), Caspian Impact Investment Adviser Private Limited said that they are delighted to collaborate with ARIAS in our shared mission to catalyze the economic development of Assam's rural communities.
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