CHAPTER IV MICROFINANCE IN TAMIL NADU

Transcription

1 4.1 INTRODUCTION CHAPTER IV MICROFINANCE IN TAMIL NADU Tamil Nadu being a welfare State, the purposeful endeavours of the Government are aimed at the social, economic and political upliftment of the people in the rural areas. Rural development aims to improving the rural lives with the participation of the rural masses. The concept of rural development aims the social and economic development of the rural areas. Rural development in Tamil Nadu is concerned with the economic growth, social justice and improvement in the living standards of the rural people, by deploying an efficient delivery mechanism to provide adequate quality services and essential minimum needs. The primary motive of the Tamil Nadu Government is to provide basic infrastructure facilities and social services in the rural areas and assistance to the individual families and Self Help Groups, living below the poverty line. Elimination of poverty and delivery of high quality services are the basic premises upon which the planning of rural development is based and concerted efforts of Tamil Nadu Government have improved the living standards and set the benchmark for the quality of rural lives. So far, rural development planning to accomplish the above objectives was done at the Panchayat level, which is the basic structural unit of development process. But, rural people consider that the planning process should be done at the habitation level for fulfilling all their basic needs. To fulfill the people s expectation, Planning and Implementation of the rural development schemes were introduced at the level of habitation. Out of 12,620 Village Panchayats in the State, 96 Village Panchayats are merged with the Municipalities/Corporations. As such there are 12,524 Village Panchayats in the State, with 79,394 habitations and only a micro level planning at habitation level should pave the way for reducing the rural-urban divide. Further, the rate of increase in the percentage of urbanisation of rural Tamil Nadu over the past decade

2 indicates a blatant migration of people to the urban and semi - urban areas and this can be checked only if the amenities available in urban areas are provided in the rural areas. Tamil Nadu Government has introduced a new scheme where the planning will be taken to the habitation level and the requirements of the habitations shall be addressed on felt-need basis. This will be a paradigm shift in rural planning and implementation. The new scheme will be called as Tamil Nadu Village Habitation Improvement Scheme (THAI) affordable housing have been a critical issue of great challenge for the homeless, low- income rural masses. For the first time in the country, the Tamil Nadu Government introduced a free housing scheme to provide houses of 300 sq.ft., each to the eligible rural masses and these free dwelling units shall improve the welfare and livelihoods of the people living in the rural areas. Cost effective, fast track technologies and green technologies like Solar Home Lighting Systems will be used in the construction of the houses. Reductions of Poverty have been of paramount concern in the independent India. Basic human needs such as water, food, clothing, shelter, health care and education have not been available at socially acceptable levels. Affordability of the rural poor was the prime question, which has to be supplemented by the Tamil Nadu Government to ensure the basic minimum needs. Centre and State Governments introduced various schemes to reduce the poverty levels, Mahatma Gandhi National Rural Employment Guarantee Act was enacted as a law in the Parliament in 2005 to guarantee a minimum of 100 days manual labour to the rural people which has played pivotal role in addressing the rural poverty. Tamil Nadu Corporation for Development of Women Limited (TNCDW) with the object of overall development of women including education, upgradation of skills etc., to improve the quality of life of women. Tamil Nadu Government strived hard to ensure the gender equality within the frame work of a democratic polity. The Tamil Nadu Corporation for Development of Women has now evolved into a massive movement and has substantially empowered the women folk, especially in rural areas (Policy Note, ). 99

3 4.2 TAMIL NADU CORPORATION FOR DEVELOPMENT OF WOMEN Tamil Nadu Corporation for Development of Women started in 1983, implements Mahalir Thittam (Mathi), a scheme for empowerment of women fully funded by the State Government in partnership with Non Governmental Organisations (NGOs) and Banks. The activities of Tamil Nadu Corporation for Development of Women Ltd., (TNCDW) include formation of Self Help Groups (SHGs), providing Revolving Fund and Credit linkage to Self Help Groups, Capacity Building, Youth Skill Training, promotion of Economic Activities, Marketing Support and formation of Panchayat Level Federations (PLF) of Self Help Groups. Tamil Nadu Corporation for Development of Women also implements the Swarnajayanthi Gram Swarozgar Yojana (SGSY), the Centrally sponsored rural anti poverty programme ( 4.3 TAMIL NADU WOMEN S DEVELOPMENT PROJECT (MAHALIR THITTAM) Tamil Nadu Women s Development Project funded by International Fund for Agricultural Development (IFAD), initially started on an experimental basis during in Dharmapuri District was later extended to Salem, South Arcot, Madurai and Ramanathapuram Districts during the period from During , the project started gaining wide acceptance among women and was taken up as a model for future growth and extended to all other districts in a phased manner, targeting poor families and marginalised sections of the society as a State funded programme. Tamil Nadu Corporation for Development of Women became the focal point for women empowerment activities due to its key role as the prime organisation spearheading the Self Help Groups movement in the State. A small homogeneous group of poor women consisting of 12 to 20 members, for their development voluntarily formed to promote savings and mutually agreeing to contribute a common fund to be lent to its members as per the group s decision is called as Self Help Group. The members have to be in the age group of years. The members and office bearers of the Self Help Groups promoted by Mahalir Thittam are provided systematic training to bring about qualitative 100

4 changes in their attitude and to promote cohesion and effective functioning of the group (Policy Note, Op.cit.152). 4.4 ROLE OF NON GOVERNMENTAL ORGANISATIONS (NGOs) Mahalir Thittam is one of the project associated in partnership with Non Governmental Organisations (NGOs) and community based organisations such as Panchayat level federations which are affiliated to Tamil Nadu Corporation for Development of Women and extend support in the formation of Self Help Groups, organising training, guide and monitor their activities. The future plans include, enhancing the sustainability of Self Help Groups movement through intensifying the federation activities and grooming them into full fledged community based organisations and further expanding the Self Help Groups coverage to habitations and ward/slums in urban areas hitherto uncovered. So far, 452 Non Governmental Organisations have been affiliated with Tamil Nadu Corporation for Development of Women. The salient features of the Non Governmental Organisation agreement include performance based incentive with greater emphasis on quality, apart from providing an enabling environment for the growth of Panchayat level federations into Community Based Organisations (CBOs). Non Governmental Organisations are paid formation cost, monitoring cost and also incentive for enabling Self Help Groups to access bank credit by Tamil Nadu Corporation for Development of Women and are subjected to performance evaluation every year (Policy Note, Op.cit.154). 4.5 ACTIVITIES OF MAHALIR THITTAM The prime activities of Mahalir Thittam (Mathi) are includes Group Formation, Capacity Building, Revolving Fund to Self Help Groups, Credit Linkage to Self Help Groups, Youth Skill Training, Enterprise Development Training, Restructuring of Panchayat Level Federation, Formation of Slum Level Federation, Marketing Support and Sales Exhibition 101

5 4.5.1 Formation of New Self Help Groups The prime objective of Tamil Nadu Government is to extend its benefit to all the unreached population of the society and uncovered areas of the state with special focus on widows, destitute, transgender and other vulnerable and marginalised sections. During , formation of 65,000 new Self Help Groups will be taken up with a special focus on women The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) workers, urban slum dwellers and in rural areas where poor women are still outside the ambit of Self Help Groups coverage. Special groups will be formed to specifically cover Transgender, Differently abled, Human Immunodeficiency Virus (HIV) positive individuals etc. All possible efforts to revive the defunct groups and include all women Self Help Groups currently outside the purview of the Mahalir Thittam into its fold will be taken up, so that the intended benefits reach all poor and needy women. The table no. 4.1 gives the details of Self Help Groups formed up to the year 2011 in Tamil Nadu. Table No. 4.1 Details of Self Help Groups in Tamil Nadu, 2011 No. of SHGs 4,91,311 No. of SHG Members lakhs No. of Rural SHGs 3,32,092 No. of Members in Rural SHGs 51,77,028 No. of Urban SHGs 1,59,219 No. of Members in Urban SHGs 24,82,654 Total Savings Rs.2,973/- crores No. of SHGs credit linked 4,51,248 Total credit Rs.11,603.83/- crores Source: Mahalir Thittam, Government of Tamilnadu, The number of Self Help Groups formed in Tamil Nadu is 4,91,311, in that total members of the groups are lakhs. The total number of rural Self Help Groups are 3,32,092 and it constituted around 51,77,028 members. The total number of urban Self Help Groups formed up to 2011 are 1,59,219 and it constituted around 24,82,654. Total savings of the Self Help Groups are Rs. 2,973/- crores and total credit amount given to Self Help Groups are Rs.11,603.83/- crores. 102

6 4.5.2 Community Resource Persons (CRPs) As a measure of strengthening the Self Help Groups movement and to make it community oriented, Community Resource Persons (CRPs) were developed from among the Self Help Groups members. Community Resource Persons impart capacity building training to Self Help Groups including training of Social Audit Committee members of the Mahatma Gandhi National Rural Employment Guarantee Scheme and provide continuous hand holding support to the Panchayat level federations. They also act as messengers for creating awareness among Self Help Groups on various Government schemes Training for Self Help Groups Members/ Animator and Representatives Self Help Groups promoted by Mahlir Thittam and office bearers of the Self Help Groups are provided with systematic training in order to function as a cohesive group. All the Self Help Groups members are imparted training in 4 modules for 4 days. The office bearers of the Self Help Groups (Animator and Representatives) are given training in 3 modules for 6 days. The main objective of Self Help Groups members and Animator and Representatives Training is to enhance the leadership qualities, team building spirit and to build their capacity to maintain books of account. A sum of Rs.45/- is paid to each member as compensatory wage during the days of training Release of Revolving Fund to Self Help Groups Revolving Fund (RF) is provided to Self Help Groups who are in existence for at least six months and have passed the first credit rating. Revolving fund will augment the group corpus and is used by the Self Help Groups for internal lending for small income generation activities or as personal loans for health or education needs of Self Help Groups members. Self Help Groups have to make themselves credit worthy in the next six months to one year to get loan for economic activity. So far, 4, 47,081 Self Help Groups has been provided with Revolving fund. During this financial year, revolving 103

7 fund is given to 42,214 Self Help Groups with a subsidy of Rs.15,000/- each along with a bank loan of Rs.50,000/- (Policy Note, Op.cit.159) Formation of Transgender Self Help Groups The welfare of the transgender who were hitherto neglected in the society were also included in the Self Help Groups process. For the first time, the transgender Self Help Groups numbering 100 will be formed in The transgender Self Help Groups will be provided with training, revolving fund and economic assistance so as to improve their standard of living Loan with Subsidy to Transgender Self Help Groups As per the orders of the Government of Tamil Nadu loan upto Rs.15.00/- Lakhs with 25 Percent subsidy to eligible transgender Self Help Groups to start viable economic activity and thereby enhance their income and lead a respectable life in the society Loans for Economic Activity through Banks Self Help Groups fall into the clutches of money lenders and become indebted over a period of time. Providing credit to Self Help Groups through banks at nominal interest rates for income generation activities has led to economic empowerment of Self Help Groups. Banks extend loan to Self Help Groups, a minimum of Rs.50,000/- is given as first linkage which is increased to Rs.1.00/- lakh to Rs.1.50/- lakhs during the subsequent linkages. Repeat loans in the form of second and subsequent doses of credit linkages from the banks are essential for expansion and sustainability of the economic activity taken up by Self Help Groups. Cumulative credit linkage to Self Help Groups since inception accounts for Rs.11,603.83/- crores. An ambitious target of Rs.4,000/- crores have been fixed as credit linkage for the year

8 4.5.8 Enhanced Economic Assistance for Self Help Groups In the past, the Self Help Groups were provided with economic assistance under various schemes to a maximum of 5 lakhs with subsidy upto 50 Percent of the project cost or a maximum of Rs.1.25/- lakhs the Hon ble Chief Minister of Tamil Nadu has ordered to enhance the quantum of loan under economic assistance to the maximum of upto Rs.10.00/- lakhs with subsidy of 25 Percent Job oriented Youth Skill Training (YST) At present, there is huge demand for skilled manpower in the industrial sector particularly in manufacturing and service sectors, due to the industrial boom in the state. To exploit the opportunities offered by the growing economy and to make the unskilled and semi skilled youth employable, Youth Skill Training programme have been envisaged to impart specific job oriented skills to improve their employability and make them competitive in the job market to get gainful employment. So far 93,762 youth have been trained in various vocations and 60,408 youth have been placed in various firms, excluding those who are self employed. During the year , greater impetus will be given by Tamil Nadu Government to Youth Skill Training programme by imparting training to 25,000 youth at a cost of Rs.20.00/- crores Enterprise Development Training Programme (EDTP) Self Help Groups members who are interested in taking up economic activities particularly in urban areas are trained through reputed institutions and so far 12,329 members have been trained in various activities. During , 4,000 women will be given specific skill oriented training under Enterprise Development Training Programme by Tamil Nadu Government. Women in the age group of years belonging to Self Help Groups in Urban Areas are eligible, but preference will be given to those above the age of 35 years and below 50 years. 105

9 Stipend including conveyance charges is fixed at Rs.25/- per day per trainee Selection of trade and institution are decided by the District Level Committee based on the choice of courses by women. Enterprise Development training is given through reputed/recognised institutions specialised in giving self employment training with sufficient faculty support like procurement of raw materials, machinery, value addition, packaging, labeling, pricing, standards, certification etc., The trained women are provided with assistance to get loan from nationalised banks to establish production units. State and District level exhibitions are organised to popularise Self Help Groups products and enhance their market share (Policy Note, Op.cit.165) Panchayat Level Federation of Self Help Groups (PLFs) In order to strengthen the Self Help Groups movement and make it sustainable federations of Self Help Groups at Village Panchayat, Block and District level are formed. Panchayat Level Federation is a participatory platform for the Self Help Groups to share their experiences, voice their problems and find collective solutions. What individual Self Help Groups could not achieve, panchayat level federations can achieve by pooling their collective skills and resources and exploiting economies of scale both in production and marketing. Panchayat level federation can also guide and monitor the functioning of Self Help Groups and also form and train new Self Help Groups in rural areas. Strong and cohesive Panchayat level federations representing the common aspirations of its member Self Help Groups is the key for achieving sustainability in the long run. Capacity building of office bearers, providing seed money and giving awards to best Panchayat level federations pave the way for strengthening Panchayat level federations. Restructuring of Panchayat level federations with the objective of making them more inclusive, transparent and participatory and also to improve their governance and sustainability is very important. 106

10 In Tamil Nadu, till now 7,646 Panchayat level federations have been restructured out of 12,618 Panchayat level federations. During a total of 4,972 Panchayat level federations will be restructured and further strengthened by the Tamil Nadu Government by providing capacity building to the office bearers and members of both Panchayat Level Federations and Habitation Level Forums (HLF) on Governance and Finance Management modules. Tamil Nadu Corporation for Development of Women will provide greater thrust towards capacity building of the Panchayat Level Federation members and office bearers in areas like Social Audit, Identification of business opportunities, Value addition etc. Panchayat level federations are graded after the completion of six months against predetermined fixed indicators covering participation, inclusion, governance, transparency, credit discipline and community development initiatives Incentive to Restructured Panchayat Level Federations An incentive of Rs.1.00/- lakh is provided for each successfully graded Panchayat Level Federation to encourage the functioning of the Panchayat level federations. So far 2,825 successfully graded Panchayat level federations have been sanctioned an incentive of Rs.1.00/- lakh each. The interest accrued from the incentive fund is used by Panchayat level federations for administrative expenses. During , 3,000 eligible Panchayat level federations will be sanctioned with an incentive of Rs.1.00/- lakh each at an allocation of Rs.30.00/- crores Bulk Loan to Panchayat Level Federations One of the primary roles of Panchayat Level Federation is financial intermediation. Over a period of time, Panchayat level federations will evolve into community level financial institutions. Panchayat level federations who emerge successful after grading become eligible for financial linkage and can access bulk loan from the Banks and on-lend it to its members. On a pilot basis, in few districts bulk loans were sanctioned to the restructured Panchayat level federations. The experience of these 107

11 Panchayat level federations show, that Panchayat level federations could avail bulk loan from the banks, on lend the amount to member Self Help Groups and repay the loan with interest to the Banks without any default. So far 300 Panchayat level federations have been provided with a bulk loan of Rs.73.48/- crores by various banks. During focus of Tamil Nadu Government will concentrate on linking 400 Panchayat level federations with bulk loan Awards to best Panchayat level Federations and Self Help Groups In order to motivate and encourage the Self Help Groups and Panchayat level federations, Tamil Nadu Government will give awards at State and District level. Awards are presented to 5 best Panchayat level federations and 10 best Self Help Groups at the State Level. One best Panchayat Level Federation and 3 best Self Help Groups at the District level are given awards and one best Self Help Groups at the Block level is given a certificate. The awards have occupied a place of pride among the Self Help Groups and have been instrumental in motivating the Self Help Groups and Panchayat level federations to aim for better performance Awards to Bankers Banks are the most important partner of Tamil Nadu Corporation for Development of Women for the economic empowerment of women, who are extending credit to the Self Help Groups members for debt swapping, consumption needs and for productive purposes. A state level and district level award will be given to honour best performing banks and individual bank branches, which have shown outstanding performance in extending credit linkage to Self Help Groups. These awards will motivate the outstanding performers and also create a healthy competition among the Bankers. At State level, 3 best performing banks and 5 bank branches are given award. At District level, one bank and 3 bank branches will get the award. 108

12 Issuing Identity Cards to Self Help Groups Self Help Groups face a lot of problems and hardship during their interface with banks, government offices and other institutions. An Identity card will help Self Help Groups to gain recognition in society and also have easy access to Government offices and Banks. The Identity card will contain group details such as savings, credit rating status, loans as well as member details. The Identity cards also prevent duplication of members in more than one group. Action will be taken by Tamil Nadu Government to issue Identity cards to all functional and eligible Self Help Groups in Marketing of Self Help Groups Products Self Help Groups do not have adequate capacity in understanding marketing issues and do not possess negotiation skills to promote their products. Therefore, Tamil Nadu Government will take various initiatives to enhance the capacity of Self Help Groups and Panchayat level federations and ensure better convergence and greater coordination between different agencies in promotion of Self Help Groups products. A State level permanent marketing complex for Self Help Groups products is functioning in Annai Theresa Women Complex, Nungambakkam, Chennai for conducting exhibition cum sale of products produced by Self Help Groups. Similarly, to create better marketing facilities in rural areas, 86 Village Haats are under construction at the cost of Rs /- crores in 30 districts and will be completed during this year. To expand the market of Self Help Groups products in urban and semi-urban areas, a calendar of exhibitions have been prepared to conduct exhibitions at State, District and Block levels. During , 2 State level, 64 District level and 130 Block level exhibitions are planned Branding and Packaging of Self Help Groups Products Self Help Groups products, though of good quality and priced reasonably are not able to capture a considerable market share due to not having a common brand and less attractive packing. During the year , Tamil Nadu Corporation for Development 109

13 of Women will rope in training institutions who will enhance the capacity of marketing skills of Self Help Groups, Non Governmental Organisations (NGOs) and officials at District level and also identify a state level nodal agency to develop a brand with attractive design for packaging of Self Help Groups products. A five year plan for state and district level business development for Self Help Groups products will be prepared Micro Credit for Self Help Groups Training to Self Help Groups members are given to identify Income Generating Activities and bank linkages are facilitated by the Cluster Resource Centres. The District Implementation Office (DIO) in co-ordination with Cluster Resource Centres conduct sensitisation workshops to the bank staff and financial institutions. Exposure visits are arranged for the bankers, to understand the importance of timely credit assistance Employment Generation and Skill Training (a) Support to Self Help Groups A structured survey to assess the status of Self Help Groups, Non Governmental Organisations (NGOs) and Federations was undertaken, which indicated areas of weakness and has suggested measures to strengthen them. The facilitating Non Governmental Organisation, through the Cluster Resource Centre personnel undertake Capacity building training of weak Self Help Groups, promote credit linkages and formation of federations. (b) Types of Training The different types of training envisaged for different project participants are discussed in table no. 4.2, 110

14 Table No. 4.2 Different Types of Training Sl. Type No.of Days No. Modules 1. Self Help Groups Members Training Animators and Representatives Training Representatives Training (II Year Onwards) Cluster level Representatives Training Non Governmental Organisation Staff 7 14 Training 6. Bank Staff Training Project Implementation Unit Staff Training Project Management Unit Staff Training Training for Communication Teams Skill Training for Economic Activities 3 Based on activity Source: Rural Development Department Policy Note The different types of training for the Self Help Groups members are listed in the table no There are around ten types of training provided to the Self Help Groups members, in that each training has its own modules and period of training is also different for the training. The major training programmes are animators and representatives training has contained 12 modules and its duration is twenty four days and training for communication teams has a three modules and its duration is nineteen days Conduct of Exhibition To enable Self Help Groups to sell their products, 2 mandatory and 5 optional exhibitions are proposed to be organised during festival days. District level exhibitions during the festival days besides participating in regional exhibitions such as Coimbatore, Trichy, Madurai and in other State capitals like Hyderabad, Delhi are arranged. 111

15 Manimegalai Award To encourage the well functioning Self Help Groups and Panchayat level federations the Tamil Nadu Government announced Manimegalai award at State and District level in the year Awards are presented to 5 best Panchayat level federations and 10 best Self Help Groups at the State level. One best panchayat level federation and 3 best Self Help Groups at the district level are given Manimegalai awards and the best Self Help Groups at the block level is given a certificate. The awards have been presented for the last three years and have been instrumental in motivating the Self Help Groups and panchayat level federations to strive for better performance. The basic requirement for the award is the panchayat level federation should be at least 2 years old at the time of applying. All Mahalir Thittam Self Help Groups in the panchayats are registered as members in the panchayat level federation. 20 panchayat level federation meeting should have been conducted in 2 years. Application will be received from the panchayat level federations than from the received applications eligible panchayat level federation recommended to Tamil Nadu Government for consideration. The eligibility criteria for the award is, 90 Percent attendance Availability of training of trainers Raising bank loan (Min Rs.25,000/-) for in own activity and for benefit of member Self Help Groups Trainings undertaken Loan repayment Interest shown in social responsibilities Special innovative activities undertaken among others The Manimegalai Award money carrying Rs.3.00/- Lakhs for the best panchayat level federations at State Level and Rs.1.00/- Lakh for the best Self Help Groups at State Level as well as for the best panchayat level federation at District Level. The award money for the best Self Help Groups at District Level is Rs.25,000/- (Policy Note, Op.cit.174). 112

16 4.6 PROFILE OF THE KANCHIPURAM DISTRICT Kanchipuram District is one of the Historical Districts of Tamil Nadu. It is also consider as city of thousand temples. Kanchipuram district is situated on the northern East Coast of Tamil Nadu and is adjacent by Bay of Bengal and Chennai city and is bounded in the west by Vellore and Thiruvannamalai district, in the north by Thiruvallur district and Chennai district, in the south by Villupuram district in the east by Bay of Bengal. The district has a total geographical area of 4,43,210 hectares and coastline of 57 Kms. Kanchipuram, the temple town is the District head quarters. For administrative reasons, the district have been divided into 4 revenue divisions comprising of 10 taluks with 1137 revenue villages. For development reasons, it is divided into 13 development blocks with 648 Village Panchayats. 4.7 THE SILK CITY Now a days, apart from its temples, this town is also known for its thriving handloom industry. Kanchipuram town is also known as silk city since the main profession of the people living in and around is weaving silk sarees. The silk weavers of Kanchi settled more than 400 years ago and have given it an enviable reputation as the producer of the best silk sarees in the country. Woven from pure mulberry silk and have an enviable reputation for texture, luster, durability and finish. The sarees in dazzling colours are available in every imaginable design and variety, which can make the job of selection quite challenging. More than 5,000 families are engaged in this industry and their spectacular creations are marketed by a number of co-operative societies, located all over the state. The products of Kanchipuram silk sarees are in architectural techniques, by using standard quality of fine gold threads; thus they are worthy and good quality in nature to compare with other silk sarees, the Kanchipuram silk sarees are very famous in the world. 113

17 4.8 INDUSTRIAL SCENARIO IN KANCHIPURAM DISTRICT In Tamil Nadu, Kanchipuram District is considered as one of the largest industrial development area. It have the pride in being home to vital production bases of international industrial groups like Ford, Hyundai, Nokia, Samsung Saint Gobain as well as many export houses in and around the Madras Export Processing Zone. The reasons are not far to seek: Proximity to an international airport and two seaports at Chennai and Ennore Excellent connectivity through the world class East Coast Road and upcoming upgraded NH4 and NH45. Good industrial parks at Maraimalainagar, Alathur, Irungattukottai, Sriperumbudur, Siruseri, Oragadam and Paranur. Reasonably good power quality with the North Madras Power Station and Kalpakkam Atomic Power Station located in and around the district. Availability of skilled and highly qualified manpower at Chennai and suburbs with Indian Institute of Technology, Chennai and the Anna University. 4.9 NON GOVERNMENTAL ORGANISATIONS In Kanchipuram District the following 17 Non Governmental Organisations have been registered under Project Management Unit (PMU) and functioning on various spheres. 01 Agency for Rural Development Consultancy Services, Kolappakkam 02 Chengalpet Rural Development Society, Thimmavaram 03 Daughters of Mary Immaculate, Thirusoolam 04 Tambaram Community Development Society, Vandalore. 05 Arivoli Iyyakkam, Kanchipuram 06 Association for Community Development Service, Kelambakkam 07 Women's Education and Economic Development Society. Illedu. 08 Hand In Hand, Kanchipuram. 09 Community Association for Rural Development Society, Kanchipuram 114

18 10 Star Welfare of the Rural Development Trust, Kanchipuram 11 Naadu Awareness and Rural Development Organisation, Kanchipuram 12 PREPARE-India Rural Reconstruction and Disaster Response Service, Sriperumbudur 13 Nilavoli Pallikal, Kanchipuram 14 Institute for Rural Development Trust, Uthiramerur 15 Women's Education and Development Organisation, Ayanavaram 16 Asha Niwas Social Service Centre, Chennai 17 Suyam Trust, Medavakkam The 3 Panchayat Level Federations (PLF) have been recognized by the Project Management Unit to work as on par with Non Governmental Organisation. 1. Mudichur PLF, Mudichur 2. Urapakkam PLF, Urapakkam 3. Palavakkam PLF, Pallavakkam The Non Governmental Organisations have already organised Self Help Groups in the respective service area. The Self Help Groups so formed are functioning successfully and mobilised significant savings (District Profile, 2011). As on May 2011, including rural and urban areas of the Kanchipuram District total Self Help Group formation is 26,568 as detailed in table no.4.3. Table No. 4.3 Details of Self Help Groups in Kanchipuram District Total No. of SHGs Formation SC ST Transgender HIV +ve Differently Abled Others Source: District Profile May-2011 The Kanchipuram District profile shows that, the total number of the Self Help Groups in Kanchipuram District is 26,568, in that 7,406 are particularly scheduled castes groups, 490 groups are related to scheduled tribes groups, 2 groups are formed by 115

19 transgender, 31 groups are particularly started by differently abled persons and other 18,639 groups are general groups with all communities and religious peoples as their members. Table No. 4.4 Location wise Self Help Groups Details Sl. No. Panchayat/Town Panchayat/Municipalities Total No. of SHGs. (up to ) No. of Women SHGs No. of Youth SHGs. 1 SHGs in Panchayats areas SHGs in Town Panchayats areas Total Source: District Profile 2011 Self Help Groups are differentiated in to two by location wise in Kanchipuram district, viz., Panchayats areas and Town panchayats areas. The total number of Self Help Groups in Panchayats area is 17,775, in Town Panchayats area is 8,793 only. The number of women Self Help Groups are in panchayats area in compare to 8546 Self Help Groups in Town panchayats areas. 965 youth Self Help Groups are formed in panchayats and town panchayats areas CREDIT LINKAGE WITH BANKS On completion of the Six month, a team rates the groups, consisting of representatives of Mahalir Thittam, District Rural Development Agency (DRDA), concerned Bank officials and Voluntary Organisations (VOs) at Block Level Bankers coordination committee once in a quarter. The successful groups are financially assisted through various institutions. Credit facilities given to Self Help Groups as detailed in table no.4.5:- 116

20 Table No. 4.5 Credit Facilities Sl Scheme No. of Amount (Rs. No. SHG's in lakhs) 1 Revolving Fund to Urban Group-Mathi Direct Linkage SGSY Revolving Fund SGSY Economic Assistance TAHDCO Revolving Fund TAHDCO Economic Assistance Rastriya Mahila Kosh Swarna Jayanti Shahari Rozgar Yojana Total Others Grand Total Source: District Profile May-2011 There are various types of credit facilities to the Self Help Groups members such as Revolving Fund to Urban Group-Mahalir Thittam (Mathi), Direct Linkage, Swarnajayanti Gram Swarojgar Yojana (SGSY) Revolving Fund, Swarnajayanti Gram Swarojgar Yojana (SGSY) Economic Assistance, Tamil Nadu Housing and Development Corporation (TAHDCO) Revolving Fund, Tamil Nadu Housing and Development Corporation (TAHDCO) Economic Assistance, Rastriya Mahila Kosh, Swarna Jayanti Shahari Rozgar Yojana and other schemes. The total number of Self Help Groups benefited in the credit facilities are 43,660 and total money spent is Rs.37,955.69/- lakhs (District Profile, Op.cit.8) SELF HELP GROUPS/A & R TRAINING To make the project implementation more successful, training programmes are conducted with the help of resource persons to Animators and Representatives (A&R) and Self Help Groups members. For animators and representatives the training will be given in 3 modules covering 6 days and the resource persons will give Self Help Groups training in 4 modules covering 4 days. The training programme is entirely participatory and need based nature. A sum Rs.45/- have been disbursed to the Self Help Groups members as remuneration per day. 117

21 4.12 PROGRESS ON REVOLVING FUND Revolving funds to Self Help Groups at rate of Rs 10,000 subsidy each was provided for the first time in to help Self Help Groups take up small economic activities and also for internal lending among members. Table No. 4.6 Distribution of Revolving Fund Year No. of Members TOTAL Source: District Profile May-2011 The table no. 4.6 reveals that increasing the number of people in receiving the revolving fund. In the year about 225 members received the revolving fund. The remarkable progress was made in particular years i.e., In this particular year the number of beneficiaries under the revolving fund rose to the highest i.e., During last year the number of persons receiving the revolving fund is Generally it shows that an increasing trend. Though it declined during , it increased by the members in the next year it self PROGRESS ON ECONOMIC ASSISTANCE The Progress on Economic Assistance to Self Help Groups in Kanchipuram District is focused in the table no

22 Table No. 4.7 Provision of Economic Assistance Year No. of Members TOTAL 2656 Source: District Profile May-2011 The table no. 4.7 explains that progress of economic assistance to the members of Self Help Groups from to During the year it is started with 103 members and slowly it has increased to 373 members during the economic assistance is given to 373 members of Self Help Groups. The table shows that there is a fluctuation in the provision of economic assistance as it goes up to range of 313,387 and 373, but comes down to the range of 121, 109 and 180 in the following years YOUTH SKILL TRAINING Youth Skill Training is provided to impart marketable skills to unemployed youth through established industries and reputed institutions to get either wage employment or self-employment. Table No. 4.8 Details of Youth Skill Training Sl. No. Year No. of Members Source: District Profile May-2011 TOTAL

23 The table no. 4.8 explains the number of members benefited from the youth skill training in the Kanchipuram District. In the year , there were 438 youth were given training in the established industries and reputed institutions. In the year the number of members who got training is considerably increased to 700. It also shows increasing trends. Youth skill training includes the various fields such as, Masonry, Diploma in Air Conditioner and Refrigeration, Diploma in Electronics Servicing Technology, Light Motor Vehicles and Heavy Motor Vehicles, Bakery and Confectionery, Tailoring and Embroidering, Basic Knowledge of Mechanical, Welding Skills, Leather Goods and Garments Manufactures, Electrician, Automobile, Plumber, Carpenter, JCB Training, Crane Operation, Fork Lift Operation, Nursing Assistant, Lab Technician (District Profile, Op.cit.10) ENTREPRENEURS DEVELOPMENT TRAINING The details about the Entrepreneurs Development Training for Self Help Groups members are focused in the table no.4.9; Table No. 4.9 Details of Entrepreneurs Development Training Sl. No. Year No. of Members TOTAL 1100 Source: District Profile May-2011 The members who got entrepreneurs development training during were 170 only. In the next year it rose to 380, but during , it decreased to 200 members and the next two years the members who got such training were 175 only, again it shows a decrease in the members who got entrepreneurs development training. 120

24 Entrepreneurs Development Training includes various fields such as Painting Course (Interior Decoration, Bouquet Making and Glass Painting), Catering, Home Furnishing Products, Tailoring, Embroidering and Tailoring, Fashion Jewelers Making, Home Furnishing Products, Jute Bag Making. Table No Overall Progress Sl. No. Details Target Up to Last Month Achieve -ment Physical During the Month Achieve -ment Achieve -ment Financial (Rs. In Lakhs) Alloca -tion Expendi -ture Percent 1 Groups Formation Rural % Urban % Total % 2 SHG Training Rural % Urban % Total % 3 Economic Assistance 4 Youth Skill Training % % 5 EDT % 6 Credit % Linkage (in Crore) Source: District Profile May-2011 The over all progress of has been explained in the table no There are 2113 Self Help Groups are formed and Self Help Groups training gave to all the newly formed groups, economic assistance gave to 373 groups, and youth skill training is gave to 700 groups entrepreneur development training gave to 175 groups and credit linkage amount allotted to the groups are Rs /- crores (District Profile, Op.cit.11). 121

25 4.16 WOMEN SELF HELP GROUPS FORMATION Women belonging to Below Poverty Line families in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), villages in rural areas and rural priority areas and urban slum areas have been formed as groups. Table No Formation of Women Self Help Groups Sl. Category Target Achievement Percentage No 1 Priority MGNREGS Urban Total Source: Mahalir Thittam, Kanchipuram District, The target for is Kanchipuram District as detailed in table no Self Help Groups A&R Training So far 1,359 groups have been formed in The members and office bearers of the Self Help Groups promoted Mahalir Thittam are provided systematic training to bring about qualitative changes in their attitude and to promote cohesion and effective functioning of the Groups. The office bearers of the Self Help Groups (Animator and Representative) are given training in 3 modules for 6 days. The main objective of this training is to enhance the leadership quality, Team building spirit and to build their capacity to maintain books of accounts. The achievement made under this component is furnished in the table no.4.12:- Table No Details of Training Sl. No SHGs formed Schedule Approval Completed On going Percentage 1 1, % Source: Mahalir Thittam, Kanchipuram District, Member stipend per day is Rs.45/- Non Governmental Organisations cost per member per day is Rs.12.50/- and Community Resources Persons cost per member per day is Rs.10/-. The approved 506 Self Help Groups are given training programme. 122

26 Self Help Groups Member Training All the Self Help Groups members are imparted basic training in 4 modules for 4 days so as to enable them to lean the basic functioning and management the concept of Self Help Groups. The achievement made under this component is furnished in the table no.4.13:- Table No Details of Basic Training Sl. No A and R Training completed Schedule Approved Completed On going Percentage Source: Mahalir Thittam, Kanchipuram District, Member stipend per day is Rs.45/-, Non Governmental Organisation cost per member per day is Rs.12.50/- and Community Resources Persons cost per member per day is Rs.7.50/- for the Self Help Groups Training Expenditure. The A and R Training is given to 67 groups Revolving Fund The Self Help Groups who have passed the credit rating for six month after the formatting become eligible for revolving fund of Rs.65,000/- with Rs.15,000/- as subsidy, enabling them to take up small economic activity and also for internal lending among the group members. Sl. No Table No Details of Revolving Fund Category Target No.of SHGs Subsidy Released Total Amount Subsidy Released (Rs.in Lakhs) Percentage 1 Rural (SGSY) Pudhu Vazhvu Project 3 Urban Total Source: Mahalir Thittam, Kanchipuram District, The details of revolving fund are given in the table no The total amount subsidy released to the rural (SGSY) is Rs.79.50/- lakhs, for Pudhu Vazhvu project 123

27 is Rs.55.50/- lakhs and subsidy released to urban Self Help Groups is Rs.36.60/- lakhs. The total amount subsidy released is Rs /- lakhs Economic Activity Economic Assistance up to Rs.5.00/- Lakhs (Rs.1.25/- Lakhs as subsidy and Rs.3.75/- Lakhs as credit) is provided to undertake viable activity by the Self Help Groups under Swarnajayanthi Gram Swarozgar Yojana (SGSY). Sl. No Table No Details of Economic Assistance Category Target Subsidy Released Total Amount subsidy released (Rs. In Lakhs) Percentage 1 Rural (SGSY) Source: Mahalir Thittam, Kanchipuram District, The Economic Assistance under to Rural (SGSY) scheme target fixed is 365 but achieved is 120. The total amount subsidy released is Rs /- lakhs Restructuring of Panchayat Level Federations In order to ensure self sustainability ad to empower the Self Help Groups and also given them legal status, all the Self Help Groups which are functioning in a village Panchayat are to be amalgamated with the Panchayat level federations as a restructured body. Panchayat level federations already formed in 633 village panchayats are now being restricted and registered under Tamil Nadu Societies Registration Act, The Self Help Groups will be at two levels : 1. Each habitation with atleast 5 Self Help Groups will constitute a Habitation Level Forum (HLF) with representation from every credit rated Self Help Groups. 2. Each village Panchayat with atleast 10 Self Help Groups will have a Panchayat Level Federation. 124

28 Sl. No Table No Progress on Restructuring Panchayat Level Federation Scheme Total No.of Panchayats Target upto 1 st Quarter Mathi IFAD PVP Total Source: Mahalir Thittam, Kanchipuram District, PLF Restructured The table no.4.16 explains the progress on restructuring Panchayat Level Federation. The schemes are Mahalir Thittam (Mathi), International Fund for Agricultural Development (IFAD) and Pudu Vazhvu Project (PVP). The total number of panchayats selected is 633 for all the three schemes and the restructuring panchayats are only 458 in the Panchayat Level Federation Incentive Graded Panchayat Level Federation will be given an incentive, the incentive amount shall be utilised for inter lending of the federated Self Help Groups in the Panchayat Level Federation. Sl. No Table No Details about the Incentives Year Scheme No. of PLF eligible No.of PLF Graded Incentive Amount released (Rs.in Lakhs) Mathi PVP Mathi IFAD PVP Total Source: Mahalir Thittam, Kanchipuram District, The details about the incentives released to Panchayat Level Federations are explained in the table no In the year under Mahalir Thittam (Mathi) and Pudu Vazhvu Project (PVP) schemes the incentive amount released is Rs.12.00/- lakhs and Rs.62.00/- lakhs. In the year under Mahalir Thittam (Mathi), International 125

29 Fund for Agricultural Development (IFAD) and Pudu Vazhvu Project (PVP) schemes respectively Rs.39.00/-, Rs.21.00/- and Rs.86.00/- lakhs are released to Panchayat Level Federation. In the year the number of panchayat level federations eligible is 260 and graded is Panchayat Level Federation Bulk Loan While assessing the requirement for bulk lending the current outstanding of the Self Help Groups was taken into account and the net requirement alone is being consolidated at Panchayat Level Federation (PLF) level for bulk lending. Table No Details about the Panchayat Level Federation Bulk Lending Sl. No. Name of the PLF Name of Bank Amount Sanctioned (Rs.in Lakhs) Amount Disbursed/ date 1 Thiruppukkuzhi PLF Indian Bank / / P.V.Kalathur PLF Indian Bank / / & Mudichur PLF Indian Overseas Bank / / Nellikuppam PLF Primary Agricultural Cooperative Credit Societies / / Vengadu PLF Primary Agricultural Cooperative Credit Societies / / Edaiyathur PLF Primary Agricultural Cooperative Credit Societies / / Thimasamuthiram Kangra Central / /- PLF Cooperative Bank Source: Mahalir Thittam, Kanchipuram District, The details about the Panchayat Level Federation (PLF) bulk lending is explained in the table no The names of Panchayat Level Federations are such as Thiruppukkuzhi PLF, P.V.Kalathur PLF, Mudichur PLF, Nellikuppam PLF, Vengadu PLF, Edaiyathur PLF, Thimasamuthiram PLF. The amount sanctioned, name of the releasing bank and amount disbursed with date are explained in detail. 126