Kalajhinin Mahila SHG It has been demonstrated that the provision of credit for the rural poor would result in significant productivity increases. The poor require a range of financial services, such as opportunities to safeguard earned income, or credit to enable them to maintain minimum levels of consumption throughout the year. The rural economies within which the majority of poor people live and work are characterized by numerous small transactions. Although the financial transactions are very small in magnitude (High frequency) for outsiders, they are an essential component of rural livelihoods. The innovation of Self Help Groups was not only to provide a range of financial products to the rural households but also to facilitate livelihood promotion and livelihood protection. To attain that level the Self Help Groups are to be empowered externally and internally. The empowerments of Self Help Groups are mainly dependent on the level of linkage with other institutions, organizations and individuals. The validity of this model of empowerment is demonstrated through Kalajhini Mahila Self Help Group of Mayurbhanja district of Orissa. Background Kalajhini Mahila Self Help group was formed in 18-02-2001 in Kalajini village of Kuabuda GP of Chandua block of Orissa. Motivated by Gramin Vikas Trust, twenty women came forward to form a group. All the members were Scheduled Tribe and married. With the common consent, Ms. Rukmini Nayak and Ms. Anusaya Nayak were chosen as president and secretary respectively. Though all members were from BPL families still they decided to save Rs. 10 per month as members monthly saving. The defaulters were fined Rs.1 for non-payment or absent from the monthly meeting. Status of the group by 31 Dec 2004 Cash in Bank Rs. 78485 Cash in Hand Rs. 2400
Total Group saving Rs. 20315 Interest on the loan from the group Rs. 6000 Principal Loan Recovery Rs. 20000 Other Source of Income Rs. 1019 Bank Loan Received by the Group Rs. 124790 Total Loan distribution by the Group Rs. 78000 Principal Loan Repaid to the Bank Rs. 20000 Linkage Building A way for Effective Empowerment The empowerment of Kalajhini Mahila Self Help Group was possible by its strong contact and linkage with other institutions and Govt. machinery. The group had shown tremendous interest for linkage with other which was realized through the intervention of Gramin Vikas Trust. Bank Linkage Kalajhini Mahila Self Help Group was first linked up with Baitarani Gramya Bank (apart from Gramin Vikas Trust) in Aug-2002. The group opened an account in Baitarani Gramya Bank to deposit its monthly saving and to withdraw when necessary. The bank transaction was regular and with in few months the group got a loan amounting Rs. 5000 as revolving fund. The bank loan was used for income generation activity. Members had started Sabai Grass (Golden Grass) trading with the bank loan and loan was repaid with in 5 months. Seeing the past repayment records and expected returns, Baitarani Gramya Bank again sanctioned a loan of Rs. 1, 19,790 (50 percent subsidy) for Sabai grass cultivation, processing and trading. Kalajhini Mahila Self Help Group was successfully entered in to Sabai Grass business and by the end of Dec 2004, the group repaid Rs. 20000 (principal) to the bank. Linkage with Govt. Machineries
Kalajhini Mahila Self Help Group had developed very good contact with the Block Development Officer. The group regularly visited to the block office to gather information. Many a times the BDO attended the functions conducted by Kalajhini Mahila Self Help Group. Also the group attends the programmes conducted by the block office. Kalajhini Mahila Self Help Group had received a loan of Rs. 10,000 from PD, DRDA for Sabai Grass Business. Regularly monthly report and action plan was given to DRDA Constant Interaction with GVT Gramin Vikas Trust had acted as a mentor and as a guide to Kalajhini Mahila Self Help Group. The members never hanged back to put the problems before Gramin Vikas Trust and with the discussion with it the group members tried to find out solutions to the problems. The members had shown sincerely in participation in the activities of Gramin Vikas Trust in Kalajhini village. Prior to get the bank loan for Sabai Grass Cultivation and processing, the members of Kalajhini Mahila Self Help Group were thoroughly trained by Gramin Vikas Trust following a grant of Rs.6000. First the members were trained and later they acted as trainer for the rest of the villagers. The members were also trained on the modern and improved methods of paddy and vegetable cultivation, mushroom cultivation, Fishery, poultry and veterinary services. The group had taken a pisciculture in a leased in pond. The materials and technical; know how were supplied by GVT. Livelihood Intervention A Positive Consequence With the bank loan from Baitarani Gramya Bank and Training and capacity building by GVT, the annual trading of Sabai Grass By Kalajhini Mahila Self Help Group was
around 60 Mahan (1 Manan is 40 Kg). Around 30 acres of barren land were covered under Sabai Grass. On an average 20 Mahan of Sabai Grass were processed into ropes monthly for 9 months (From October to June). The average annual yield of Sabai Grass from one acre of land was 25 Mahan ( 25X40 Kg) The Market price of 1 Mahan of Sabai Grass was Rs. 220 (just after harvesting in the village), Rs. 250 (after one month in near by Towns) and Rs.270 (After some months in Towns). The average Benefit from Sabai Grass Trading was Rs. 40 to Rs. 50 The Average benefit from Sabai Grass processing i.e., making ropes from Sabai Grass was Rs. 220 to Rs. 270. Before the intervention the villagers were ignored of the outside world, they were limited and contended with in them. Villagers were communicating among them through the tribal language. Migration was prevalent and inevitable. Now the group members understand Oriya, Hindi and English to some extent. Migration has totally stopped. The standard of living was increased due to increase in employment and income. The villagers were found concerned for health and sanitation of the village. Members of Kalajhini Mahila Self Help Group felt proud to be associated with the mainstream society and a part of it. i
i The Case Study is prepared by. The objective of the study is to understand the impact of SHG Revolution in Orissa.