Bundelkhand - Shg Ppt (21

Self Help Groups and Development Alternatives in Bundelkhand

Dr. S. N. Pandey Development Services Branch 21st June 2008

1 Development Alternatives

Bundelkhand Region – here We are!

UTTAR PRADESH

BUNDELKHAND REGION MADHYA PRADESH

2 Development Alternatives

Streams of activities Community Institution Building Natural Resource Management Livelihood Enterprises Networking and Convergence Capacity Building Leading to …. informed and empowered communities….. dignified and viable income generation opportunities….. clean and healthy environment 3 Development Alternatives

Approach Participatory – not BENEFICIARIES but STAKEHOLDERS Inclusive – one and all Stakeholding – development partnerships

4 Development Alternatives

What is an SHG? Self Help Groups (SHGs) are one kind of Community Institution that are small informal associations of women created at grassroots level for the purpose of enabling members to benefit through mutual help, solidarity and joint responsibility. The members are expected to make small savings and pursue group enterprise activities. The group-based approach enable the poor to accumulate capital by way of small savings and help them to have easy access to formal credit facilities.

5 Development Alternatives

Essential features of an SHG S.No

Features

Particulars

1

Organization

Homogeneity in terms of socio economic status caste, age group,common identitity of activities etc

2

Nature of target group

Generally poor and weaker section of socity in rural area, particularly women

3

Management

Selected/elected leaders or facilitator, holds meeting regularly, and maintain records

4

Common fund

Created out of saving,interest earned on loan, donation,fees etc

5

Saving mobilization

As per capacity of member Regular and fixed rate of saving

6

Loaning

Decided by the purpose,purpose of loan for individuals include consumption, clearing outside debts,social,business ,agriculture etc,and loan for common production activities

7

Repayment period

Generally lower than prescribed by the bank

8

Rate of interest

Varies from 12 to 48%, interest rate determined by the members

9

Linkage with Banks

Banks treats SHG as a borrowers. 6

Development Alternatives

Growth Path of SHGs 0-6 Month

7-12 Month

More than 80% meeting take placeat fixed time & place 80% members attend every group meeting 80%members save regularly SHGs open saving bank account Their account books are maintained regularly Majority of members are aware of all rules of group Majority of members understand programmes philosphy &its objectives Some community action is started by SHGs Members start taking internal loans from SHGs, members show preference for small loans which are for consumption purpose Few SHGs obtain bank loan/CCL facility Some members are taken loans for small IG activities Group accounts are managed by SHG members/facilitator SHG participate in few government schemes Informal networks of SHGs start emerging (Cluster, federation) 7

Development Alternatives

SHGs in Bundelkhand : Status and Potential About 12-15000 SHGs in Bundelkhand (both UP and MP part with membership of about 144000-180000 and cumulative credit linkage of INR 7-8 cr. Most of the SHGs are at imbecile state without any assured handholding. Potential of about 50,000 more SHGs with credit absorption potential of 450 Cr.

8 Development Alternatives

DA’s take on SHGs Formation and nurturing of SHGs in direct geographical areas of operation Support formation and nurturing of SHGs in partnership with other CSOs in other parts of Bundelkhand.

9 Development Alternatives

SHGs – Direct Areas of Operation Through … Three institutional clusters: TARAgrams – Orchha, Pahuj and Datia Four operational clusters: Niwari, Orchha, Pahuj and Datia

In … 3 districts – Tikamgarh, Jhansi and Datia 4 blocks – Niwari, Badagaon, Babina and Datia 115 villages (Niwari: 85, Badagaon:11 Babina:4 Datia:15) 10 Development Alternatives

Status of SHGs across clusters Niwari

Orchha

Pahuj

Datia

Number of SHGs (413)

229

55

82

46

Membership (4454)

2428

616

836

506

Savings (Rs. 44.64 Lac)

Rs. 33.94 Lac Rs. 3.66 Lac

Rs.3.84 Lac

Rs. 3.20

Credit from Banks (Rs. 53.43 Lac)

Rs. 49.49 Lac Rs. 3.74 Lac

-

Rs. 0.20 Lac

11 Development Alternatives

Supporting Projects TEJSWANI: Location

: Niwari & Orchha (Tikamgarh district)

Duration

: 8 years (initial contract for 3 years)

No. of SHGs : 400 (includes strengthening of old SHGs), 300 new to be formed Cost

: Rs. 40.92 lac (Rs. 13.64 lac pa)

NABARD: formation of 250 SHG in Jhansi district Location

: Baragaon & Babina (Jhansi District)

Duration

: 2.5 years

No.of SHGs : 250 (82 formed, 168 remaining) Cost

: Rs. 7.5 Lakh 12

Development Alternatives

3 years hence……….. SHG Growth Trajectory: 2008-2011

1000 900

Number of SHGs

800 700 600

971

500 400 300

700

793 593 413

200 100 0

Current

2009

2010

2011

Planned 2011

Year

Current

2009

2010

2011

Planned 2011 13

Development Alternatives

3 years hence : visible shifts 971 SHGs with membership of about 10,500 members Cumulative savings of about INR 1 Cr and bank credit of INR 3.5 – 4 Cr.

14 Development Alternatives

SHG promotion in Partnership Proposal submitted to NABARD for formation of 7000 SHGs (in 2 years time) in partnership with 14 CSOs (also PACS partners) in all the 7 districts of Bundelkhand from UP NABARD approved formation of 1000 SHG (Rs. 35 Lac), proposals for other districts under consideration 14 CSOs will be BDC partners from UP, moving up the BDC strength from 5 to 19.

15 Development Alternatives

2 years hence……….. SHG Growth Trajectory : 2008-2010 (In Partnership)

10000 9000

Number of SHGs

8000 7000 6000

9139

5000 4000

5639

3000 2000 1000

2139

0

Current

2009

2010

Year

16 Development Alternatives

2 years hence : visible shifts 9139 SHGs with membership of about 1.20 Lac members Cumulative savings of about INR 5.76 Cr and bank credit of about INR 10 Cr.

17 Development Alternatives

Thanks

18 Development Alternatives