INTERIM ASSESMENT REPORT ON FUNCTIONING OF WOMEN SELF HELP GROUPS IN ORISSA Submitted to : Department of Women and Child Development Government of India (Research Unit) Jeevan Deep Building Sansad Marg, New Delhi - 110001 Prepared by : The Organisation for Women and Rural Development. (TowarRD) 225, Saheed Nagar, Bhubaneswar - 751 007, Orissa.CONTENTS Section Introduction Self Help Groups in Orissa ; An outline Self Help Promoting Institutions in Orissa. The present Study, its Objectives and Methodology General Findings on the Functioning of SHGs in Orissa Annexure -(I to VIL)SECTION -1 INTRODUCTION 1A BACKGROUND: Since independence the notion of ‘Participation and development’ has been receiving much attention among the policy makers, administrators, academecians and other concerned agencies engaged in development of Progrmines. The focus is mainly on how to imbibe the spirit of Self-goverance, Self-reliance, empowerment, conscientisation, mobilisation, and organisation of the disadvantaged groups for elimination of poverty, social inequality and unemployment, Particularly in last two decades, these issues have gained much momentum. Following the success of GRAMIN BANKS in Bangaladesh, many NGOs, in India specially after 1980s, have started Self Help Groups (SHG) in saving and credit activities among the disadvantaged sections of society. The basic objectives address for the needy and poor people who seek small but urgent loans for consumption, production etc, Further, in their day-to-day life, credit delivery institutions like : Banks, Co-operatives etc, fail to fulfill their credit requirements in time due to certain rigid institutional procedures. Therefore, there is growing opinion that the banking system is not geared to cater to the needs of disadvantaged groups. Hence SHG is designed to act as an alternative credit system to cater for urgent credit requirements of common people. 1.2.SELF HELP GROUP: Self Help Group is an association of people having common goal of socio- economic sustainable development. People are organised co-operatively and function as groups to address their needs and problems. It is an unique institution in which benefactors and beneficiaries are one and the same people. It is an unique institution where the members apply their common wisdom and resolve their problems and meet their needs through appropriate participatory decision making. Though similar groups have been operating in rural India since long in different forms i.e, : Water User Groups, Fodder Groups, Grain Golas etc., the SHGs are different because, under this approach the group members save money compulsorily and lend it among themselves. The SHGs can be exclusively for male, female or mixed, However, majority of the SHGs are purely female SHGs. 13. WOMEN SELF-HELP GROUPS : In the context of empowerment and given the vulnerability and helplessness of the individual women in the existing socio-economic setup, ‘SHG’ strategies acquire greater relevance. The formation of small informal functional groups of women wouldgive them ‘visibility’ and create micro level power pockets. Further grouping would initiate a learning process through sharing of ideas, skills and interactive capacity and in course of time women would learn to articulate their needs resulting in more appropriate, participatory way at the grassroot level. SHG is a viable organised set-up to disburse micro credit to the rural women for the purpose of making them enterprising. Credit oriented rural-women-led SHGs have successfully demonstrated how to mobilise and manage thrift, appraise credit needs, maintain linkages with the banks and enforce financial self-discipline. In this context, the Government of India is committed to enable poor women in rural and urban areas to have access to economic and social resources and thereby empower women through a number of Women targetted programmes such as : DWCRA, NABARD’s linkage programme for women SHGs. SHGs have been promoted by “Rastriya Mahila Kosha’ (RMK), NABARD through NGOs, Mahila Sanchaya Yojana, SIDBI Foundation for Micro-Credit, etc.SECTION - 2 SELF HELP GROUPS IN ORISSA : AN OUTLINE This part of the Interim Assessment report deals with SHGs in Orissa. The State of Orissa is considered to be one of the poorest states in India and it has the highest proportion of rural people below the poverty line, The NSSO estimates (1993-94) suggests that this figure was 49.72% for Orissa as against 37.27% ofall India average. The actual figure of rural people below the poverty line has been estimated as high as 60% in some micro studies. Further, females constitute 49.26% of the state population of 31.66 lakhs. The ‘Sex Ratio standing at 972 is not in favour of female population. Again, female population in the rural Orissa are more vulnerable on the ground of health, education and economic independence. Apart from that, rural women in comparison to urban population are less empowered politically, socially and economically. In this background, particularly in the last two decades a number of women Self Help Groups have emerged due to the active intervention of numerous Self Help Promoting Institutions mainly NGOs. Now-a-days SHGs are being increasingly considered as a right forum to safeguard the many sided problems around women. Inrecent years, particulary after early 1990s, the concept of SHG has gained much momentum in the poorer states including Orissa. SHG as a moneylender, development bank, co-operative or as a voluntary organisation operating at the informal sector, contributes immensely to women development as well as social development. It can be described as an effective delivery vehicle of social and economic development programmes targetted at the poor. While discussing SHGs it is quite essential to describe Self Helf Promoting Institution (HPI). Actually these are the catalysts in promoting due enthusiasm and encouragement among the SHGs to be emerged successfully. SHPI may be Government, Semi Government Agency, Corporation, NGO, the branches of Commercial Banks, RRBs and Co-operatives or any Charitable Organisation. The details about functioning of Self Help Groups promoted by various Self Help Group promoting Institutions has been delt in section - 3.SECTION 3 FUNCTIONING OF DIFFERENT SELF HELP GROUP PROMOTING INSTITUTION IN ORISSA In Orissa there are number of Self Help Group Promoting Institutions functioning. The details of which are analysed in this section, Self Help Promoting Institutions Operational Area DWACRA (replaced by Swarna Jayanti Gram Swarozgar Yojana (SGSY) ~ Inall the districts. Indira Mahila Yojana ~ In selected six districts, Self Help Group Linkage Programme of NABARD - inall the districts. Small Industries Development Bank of India _- in selected districts. Mahila Sanchayika Sangha (MASS) - Promoted by District ‘Administration in Ganjam. ICDS promoted Mahila Mandals, ~ Selected districts. Rastriya Mahila Kosh ~ Inselected districts. Nehru Yuba Kendra ~ Inselected districts. Non-Governmental Organisations ~ Inall the districts. Vikas Volunteer Vahini Club - Inselected districts Though there are numerous SHPIs, promoting SHGs in Orissa, following SHPIs described below are considered on the ground of their better peformance in making SHG programme more successful. SHGs PROMOTED BY DWACRA (NOW CONVERTED TO SGSY) = DWACRA is a sub-scheme of IRDP. It was started in 1982-83 ona Pilot Project basis in 50 selected districts but has now been extended to all districts of the country. The basic objective of the programme is to provide income generating skills and activities to poor women in rural areas, thereby improving their social and economic status. DWACRA is being implemented by the DRDA. To facilitate the implementation of the scheme a post of Asst. Project Officer (APO Women) has been sanctioned at the block level to look after the activities of the Groups. This is in addition to the two Gram Sevikas in the normal block pattern, The APO and three Gram Sevikas form a team to help in the implementation of DWACRA.At present about 11,000 women groups are operating in ORISSA under DWACRA. scheme. Maximum number of DWACRA groups are operating in the districts of Sambalpur,Sundargarh, Kalahandi and Kendrapara etc. Districtwise functioning of DWACRA groups is as shown in Annexure - I Some Highlights on “DWACRA” Operatoins: In Ganjam district, as per the initiative of DRDA and involvement of BDOs, few SHG groups have been converted into DWACRA groups Similarly as per the instance of DRDA, Chatrapur the CDPOs working at Chatrapur, Khailikote, K.S. Nagar, Kukudakhandi, Chikiti, Patrapur, Bhanjanagar, Buguda, Jaganath Prasad have been involved in the formation of at least 40 SHGs each ORMAS at the State level, launched a special initiatives to market the rural products produced by DWACRA groups like consumable items like rice, Haldi, Chilli, Mustard Oil, Pickles, Badi pampad andutility items like coir mats, sisalmats, goldengrass mats, wooden telephone mats, Office stationaries like bamboo waste box, paper weights, wooden/bamboo pen stands and minor forest products like Jbuna, Palua, Lac through different Bhanjaprabha outlets of Orissa. As per the instruction of DRDA, few DWACRA groups have been registered during 1998-99 onwards. The objective is to get group financial assistance from the banks. SWARNA JAYANTI GRAMYA SWAROJGAR YOJANA (SGSY) © —_ Swarnajayanti Gramya Swarojga Yojana (SGSY) an alternative to earlier setf- employment and allied programmes was launched on April 1, 1999 with the exclusive objective of establishing a large number of micro-enterprises in the rural areas building upon the potential of the rural poor. Funds required under the SGSY is being shared by the Central and State Governments in the ratio of 75:25. The SGSY is being implemented by the DRDAs through thepanchayat Samities. Salient Features of SGSY © —_ SGSY is conceived as a holistic programme of micro entreprises covering all aspects of self-employment, viz., organisation of the rural poor into self-help groups and their capacity building, planning of activity clusters, infrastructure build up, technology credit and marketing. SGSY lays emphasis on activity clusters, 4-5 key activities will be identified for each block based on the occupational skills of the people and availability of markets.SGSY lays emphasis on activity cluster, 4-5 key activities will be identified for each block based on the resources occupational skills of the people and availability of markets. Selection of key activities will be with the approval of the panchayat samities at the block level and the District Rural Development Agency (DRDA)/Zila Parisad (ZP) at the district level. e SGSY Focuses on Group approach. This would involve organisation of the Poor into SHGs and their capacity building efforts would be made to involve women members in each SHG. SGSY is a credit-cum-subsidy programme. Credit appers to be the critical component in SGSY, subsidy being only an enabling element. e SGSY promotes multiple credit rather than a one-time credit ‘injection’. e Special emphasis is laid on skill development of the Swarojgonies through well designed training courses tailored to the activities selected At present SGSY is in vouge in all the districts of the state. A districtwise list of SHGs for micro enterprises under SGSY is furnished in Annexure - IT 2. INDIRA MAHILA YOJANA AND SHG : The Indira Mahila Yojana (IMY), a centrally sponsored scheme launched in 1995 aims at co-ordinatingand integrating sectoral Programmes relevant to women like. health, education, water, sanitation, housing and others at local, block and district level and increasing their awarenesses and income through group activities and participation with the aim of empowering women. IMY successfully works in6 districts of the State, with the involvement of NGOs. A district-wise list of working of IMY alongwith the names of NGOs identified therein and the number of SHGs formed under this scheme is furnished in Annexure - IU SHG LINKAGE PROGRAMME OF NATIONAL BANK OF AGRICULTURE AND RURAL DEVELOPMENT. (NABARD) IN ORISSA: NABARD being an apex level financial institution occupies an unique place with a mandate to promote integrated rural development. Since February 1992, it has successfillly developed and operationalised the concept of linking SHGs with banks asa supplementary mechanism of saving and credit where a large number of NGOs and Banks are participating, In addition, NABARD also supports various other credit dealinginnovationsthat are being experimented in different parts of the country, suchas : “Grameen. Bank” replication, NGO networking, SHG Federation, Credit Unions etc., NABARD launched a pilot project in February 1992 for linking 500 SHGs with Banks. The objectives of the Programme were: @ encouraging banking, thrift and credit among the rural masses, © Evolving supplementary credit storages for meeting the credit needs of the poor, @ Building mutual trust and confidence between the bankers and rural poor. The RBI institutionalised the SHG linkage programme in April 1996 as a normal lending activity of the banks under priority sector and service area approach. Thus, the pilot project became a mainline activity and entered the expansion phase in 1996. There has been substantial progress in linking SHGs with banks over the years. Starting from a modest number of 255 groups linked by March 1993, the cumulative number of SHGs linked by March, 98 stood at 14317, with the involvement of 2500 branches of 150 banks through 291 NGOs in 19 states and 2 Union Territories andby March, 2000 this cumulative number of SHGs spectacularly increased to 1, 13,263. A COVERAGE IN THE STATE OF ORISSA ‘The number of groups formed in the State of Orissa under the SHG linkage programme till March, 2000 is 4039. A district wise list of no. of SHGs coming under SHG linkage programme is furnished in Annexure - IV, B. SHG MODEL: Under NABARD SHG linkage programme, the following types of models are noticed. The change in process under each model is stated therein. Model-1 The bank is providing credit in bulk directly to the Group which may be informal or formal (je, registered body). The group in turn is undertaking on-lending to its members on terms agreed upon mutually among themselves. The quantum of credit given to the group should be in proportion to the savings mobilised by the group, savings credit ratio varying from 1:2 to 1:3 inthe study areas. Model-2 If the bank does not have adequate trust andfaith on a particular SHG, then through NGOs credit is extended to the SHGs. This type of model is also noticed in our ongoing work.Model-3 In this type of model, provisions are there that individual members having bulk credit Fequirements can receive micro credit from the linked bank directly subject to the consent of the concerned SHG. But till now, we have not been reported any such case in our present study. CQ INNOVATIVE STEPS UNDERTAKEN BY NABARD. IN ORISSA As per direct assistance and Supervision of NABARD, a ‘Centre for Micro Finance’ has been formed at XIMB, Bhubaneswar. The main objective of this centre is to provide training and other guidelines to the SHGs, members of the SHGs, different NGOs, bank and other agencies who are involved in the task of forming SHGs. © NABARD has arranged all types of technical assistance and encouragement to the RRBs operating in the districts of Bolangir, Dhenkanal, Kalahandi and Koraput. @ — Ithas made its special target of forming atleast 5000 SHGs in the backward KBK districts of the State. It has facilitated Vikas Volunteer Vahini (VVY) clubs at the grassroot level. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) AS A SELF HELP PROMOTING INSTITUTION : Small Industries Development Bank of India (SIDBI) introduced the Micro Credit Scheme (MCS) in 1994, Assistance is extended under this programme through 125 Pilot accredited NGOs covering over 1,23,000 poor women members, yielded satisfactory results, This has encouraged SIDBI to meet the challange by taking proactive steps to enhance the flow of institutional funds to this sector. Keeping in view the tremendous Potential of reaching cut to milians of rural entrepreneurs a further impetus in development of micro-credit is essential at this stage. With this background, SIDBI launched a Rs.100 Crore SIDBI foundation for Micro credit (SMFC) in November 1998. The SIDBI operation would make use of ‘multi channel credit dispensation routes to extend micro-credit to poor people. The SIDBI foundation would also focus on encouraging micro finance product innovations. The renewed approach focuses on identifying major (nodal) Micro Finance Institutions (MFIs) as long term partners and providing credit support for theirmicro finance initiatives. These MFIs, which inter alia includes NGOs and community-based Organisations, would beselected on the basis of their credibility, track record, professional expertise, management practices and organisational capabilities, growth potential etcSIDBI foundation would simultaneously help these MFIs by way of need based loans and grants to strengthen their management capabilities. They will act as the strong, intermediaries in the informal credit segments. MAHILA SANCHAYIKA SANGHA (MASS) : (Promoted by District Administratin Ganjam) In some districts the district administration is playing an important role in promoting women self help group. Mahila Sanchayika Sangha (MASS) a federation of SHGs introduced by the district administration in Ganjam district deserves some explanation here due to its outstanding progress in a very short span of time Mahila Sanchayika Sangha (MASS), a district level federation SHGs was created on2Ist. October, 1998 with the encouragement of district administration and local Bank authorities. Initially there was only 62 member SHGs and nowiit stands at 253 and the number of SHGs taking loan from MASS stand at 147. Total individual members happen at 2436, Due to Mass only development programme through SHGs runs in full swing in GANJAM district. MASS is perhaps the best SHPT in the district Progress of MASS: Total savings of all SHGs promoted by MASS stands at Rs. 21,73,362.00 and the savings made by the women Members in Mass happens at Rs, 40,726.00. : There are 6000 SHGs promoted by MASS operating in 22 blocks of Ganjam district. ‘The working capital of MASS comprise of ) Theentry- Fee given by the Member SHGs. ii) Loans taken from Rushikulya Gramya Bank and other Banks. iti) Grants and financial aid received from different agencies like : DFID, CARE & District Administration. iv) _ Interest received on loans given by MASS to different SHGs. REGIONAL RURAL BANKS (RRBs) : As per the provision of Bank Linkage Scheme of the SHGs, very recently the RRBs have started promoting the Self Help Groups (SHG) since 1995-96NGOs AS SELF HELP PROMOTING INSTITUTION : Different NGOs (as their number is too large) operating in different districts are promoting SHGs in Orissa. As Chief facilitators, for the concemed SHGs, their activities include : Attend every meeting initially for about a month. Do not interfere in group decisions, ‘Teach the group about standard practices, ensure that decissions are promptly taken. Assist to maintain proper records Ensure that involvement of the group in any scheme shall be thoroughly discussed by the group. Encourage every member to share views in the meeting. Do not promise any benefit. Ensure that income generation activities to be thoroughly discussed by the groups before taking up such activities, ‘The activities of NGOs can be better assessed from the specimen NGO of “Vikas Niketan’ operating at Muniguda under Rayagada District. Activities of Vikas Niketan (NGO) as SHPT The idea of promoting SHGs was started in the year 1997, The primary objective for the promotion of SHGs was the economic empowerment of the poorest of the poor by creating easy access to credit for productive and quick profit making enterprises/ income generating activities from which they could meet their consumption needs and also create assets. Present Status : The status of the SHGs formed by Vikas Niketan (VN) as on 31st, March 1999 is given below @ ) © @) @ @ () Operational Area + Muniguda, Bissam Cuttack and Chandrapur blocks of Rayagada District of Orissa. Villages Covered : 102 tribal villages under 11 GPs. Total SHGs formed : 184 (Men-78, Women-106) Total Members : 2270 (Men-863, Women-1407) Total Savings Mobilised : Rs.4,83,080.00 (deposited in the account of ‘Vikas Self-Help Federation) Men SHGs : Rs. 184,080.00 Women SHGs : Rs. 2,99,008.00METHODOLOGY/ NORMS: (@ Group Size Meeting Frequency Saving Rate Saving Management Interest on Savings Loan Disbursement Ratio Collateral Taken if any Loan Term Interest Rate % of Recovery Major Purpose of Loan Bank Linkage No. of SHGs which have taken loan Total amount of loan disbursed Total Repayment Outstanding Loan % of Recovery SHG with maximum savings Highest amount ofloan disbursed 10 to 20 Weekly, Fortnightly or Monthly as decided by group (minimum once in a month) : Minimum Rs. 51.00 Maximum no Limit : Saving from all the SHOs is pooled into one account, which is operated by VIKAS SELF HELP FEDERATION (VSHF), the apex level federation of all the SHOs promoted by VN. : 7% per annum, provided by VSHE. + 1:2 (Twice of the savings). : Loan is given against the savings and the group Guarantee/ Resolution passed by all the members. 6-12 months. + 12% frp, SIG to VSHF/ NGO (VN) and Members. to Group 24-36%. : 100% : Purchase of agricultural produce (during the harvest season and selling at higher rate during lean season, purchase of agricultural inputs and other agricultural activities, purchase of cows, running community shops, lending to Non-members for paddy husking, purchase of siali leafs for making leaf plates etc.) : NABARD through Indian Overseas Bank. 7 : Rs. 7,32,190,00 Rs. 4,67,392.00 Rs. 2,64,798.00 + 100% + Rs, 20,838.00 : Rs. 36,000.00RECORDS MAINTAINED BY SELF HELP GROUPS Group level Membership Register. Individual Pass Book/ Group Pass Book. Savings Register. Account Book (Printed). Visitor's Register. Meeting/Resolution Register. Loan Register, Federation Level Application for the formation of new Self Help Groups. Membership Register/Savings Register. Loan Register/Loan application. SHG-wise Register. Bank pass book of the Federation. Fixed Deposit Receipts. ‘Various Monitoring Formats. Receipt Book, Vouchers, and Account Books etc. SERVICE PROVIDED BY VIKAS NIKETAN : Help in the formation of new SHGs, Group facilitation, Monitoring Record Maintenance, Capacity Development, training/Exposure, Exchange, Liasioning, Skill upgradation, linkages, Marketing etc. EXPERIENCE OF VIKAS NIKETAN IN THE FORMATION OF SHG: Successful record of forming 184 SHGs within 2 years, Mobilising savings upto Rs.5,00,000/- and disbursing loans up to Rs.7,00,000/- and systematising with requisite records and registers. PROBLEMS AND CHALLENGES : @ i) wi Ww) Direct and Indirect attack from the vested interest groups. NGOs working in the same area of operation with spoonfeeding and welfare approach. Non-availability of timely and sufficient credit from the financial Institutions. Negligible interest margin in the refinincing programmes sponsored by NABARD.() _Lack of financial resources for the capacity building/training and other operational expenses. VIKAS SELF HELP FEDERATION (VSHF): The Vikas Self Help Federation (VSHF) was established during 1996, by Vikas Niketan. It is a Federation of SHGs promoted by the said NGO. VIKAS VOLUNTEER VAHINI CLUB (VVV CLUB) A Club of Farmers VVYV Clubs as an informal organisation of farmers and artisans, operating at the village level has emerged as one of the SHPIs in recent times. The idea of forming VVV club at the village level was introduced by NABARD with the objectives like @ = To propagate the mission of development through credit. @ — Tomake awareness among rural people about bank credit . @ = Toassist bankers for mobilising savings and recovery of loans. @ = Toendeavour to the cause of all rural development of the area of its jurisdiction, Some SHGs formed by VVV Club in Ganjam District is shown in Annexure V. oeSECTION -4 THE STUDY: At the instance of the Department of Women and Child Development, Ministry Human Resources Development (HRD), Government of india, this Project has been undertaken to highlight the different aspects of the “functioning of Women SHGs in Orissa OBJECTIVES OF THE STUDY : ‘The major objectives of the ongoing study are i} Totracethe historical, social and cultural factors related to the development of the Self Help Groups in Orissa. To study the organisational structure and pattern of the women Self Help Groups in Orissa. To examine the role of Voluntary Organisations/Government Agencies in the formation of the Self Help Groups. To determine the membership profile of the Self Help Groups. To assess the acivities and functioning of Groups in terms of their operations, activities, problems and future scope. To ascertain the impact of the Self Help Groups on Credit availability to the members. To find out the kind of linkages established by the Self Help Groups with Banks/Financial institutions. To examine the role of Self Help Groups in encouraging thrift and credit among the poor Women in rural areas. To highlight a few success stories (case studies) from among the Women Self Help Groups in Orissa. “To suggest steps, measures and changes in Self Help Groups for sustaining and strengthening towards greater future viability and positive impact on Micro- credit availability to the rural poor. METHODOLOGY: Keeping in view the objectives of the study following procedure has been adopted. A Collection of Data : The present study has been developed with the aid of primary data as well as secondary data. Secondary data like the list of SHPIs and SHGs formed under different SHPIs are obtained from the district level offices like NABARD, DRDA, State level offices like SIDBI, Regional office, NABARD, Centre for Micro Finance, XIMB.B, Sample Design : Asagreed to a total no. of 150 Women SHGs were selected with the help of stratified random sampling as there are numerous SHPIs, each group of SHGs promoted by a given SHPlis considered as a stratum. C. _ Selcetion of Sample Districts : Asthe required sample size is 150 women SHGs, therefore, 25 women SHGs were selected from each district of Ganjam, Gajapati, Phulbani, Kalahandi, Keonjhar and Rayagada While sclecting districts, 5 districts like Gajapati, Phulbani, Rayagada, Kalahandi and Keonjhar, importance was given to tribal concentration in the district population. Ganjam district was selected on the ground of concentration of SC population Again as SC / ST population constitutes a significant chunk of State’s population and they are economically more backward, therefore in order to examine them in the light of SHG programme, 20% of the sample size in each district was made reserved for SC/ST women SHGs. That means the study reserved 20% of ts total sample size for SC/ST women run SHGs. Thus in this study, 30 SC/ST women SHGs (5 from each district) were studied D. Selection Sample SHGs : The 150 SHGs were selected so as to get a representative sampling covering each type of SHPI. Though stratified proportionate sampling may hold good as sampling strategy, but dueto the non-availability of sufficient data base as to the exact number of SHGs promoted by different SHPIs, therefore, keeping in view, the SHGs promoted by different SHPIs, a tailor-cut strategy was adopted to get required sample from each district. In this process with the aid of stratified Random Sampling an attempt was made to choose different type of women SHGs promoted by different SHPIs in 5 selected districts. Further according to the leading SHPIs in the respective districts, required sample size of 150 women SHGs were obtained. ER Description of selected SHGs in Sample Districts ; e In Ganjam district, 25 SHGs including 5 SC SHGs were selected from Mahila Sanchayika Sangha (MASS) a federation of SHGs at the district level, promoted by the District Administration. . e In Gajapati district, 25 Women SHGs including 5 ST goups exclusively promoted by PREM (an NGO) and Gram Vikas (An NGO) were selected for the purpose of study. e In Phulbani district, 25 Women SHGs promoted by Samanwita, a local NGO, were selected, Samanwita happens to be a pioneer in the formation of SHGs in this district, The rest 15 were taken from the SHGs promoted by Nehru Yuva Kendra. © —_InRayagada district, out of 25 Women SHGs selected, 10 SHGs are promoted by Panchabati Gramya Bank, 5 are promoted by different branches of commercial banks andthe rest 15 are from the Women SHGs promoted by Vikas Niketan, a Muniguda based NGO. ° In Kalahandi district, 15 homogenous groups (SHGs) including SC/ST SHGs were elected from Indira Mahila Yojana, 5 from SHGs promoted by Kalahandi Gramya Bank, 2 from SHGs promoted by SGSY, 3 from SHGs promoted by commercial banks, InKeonjhar district, 25 Women SHGs including 5 ST Women SHGs, were selected from DWACRA Group. G. Selection of Members from SHGs As per the requirements of this study, 300 members were selected from 150 women SHGs with 2 members from each SHG.SECTION -5 GENERAL FINDINGS ON THE FUNCTIONING OF SHGS IN ORISSA Like any other state, in Orissa SHGs are organised by any SHPI (Self Help Promoting Institution) such as Govemment, Co-operatives, Commercial Banks and RRBs, NGOS and other Voluntary Organisations. As per the availability of statistics from NABARD office, Bhubaneswar, majority of SHGs are concentrated in few districts like Ganjam, Gajapati, Phulbani, Kalahandi and Koraput. Further the share of SHGs promoted by NGOsis about 60% and these SHGs are more effective and stabilised. Therefore majority of NGO formed sample SHGs have been considered in this study Taking 25 women SHGs and 50 SHG members from each district, as per the above mentioned methodology the following findings are drawn : 1 In Orissa a majority of SHGs were formed during mid 1990s and NGO activities in promoting SHGs count maximum. District Administration also plays a positive role in the formation of SHGs. In Ganjam district the role of Mahila Sanchayika Sangha (MASS) is championing in thedistrict, about 60% are facilitated by MASS. 2. Though at the formation stage the number of membership in the SHG is usually higher but gradually it declines, Less than 10 members are reported in about 30% of SHGs and 11-15 members are found in 5% of SHGs. 3. Majority of the members, about 60%, don’t take it seriously. Rather they look att very casually. Therefore, economic upliftment of the poor in the group takes place at a snail’s pace. 4. Again, the training programme conducted by sponsoring NGOs and commercial banks and other banks is not encouraging. The members don’t get sufficient benefit out of this training programme. Therefore, in about 55% of SHGs only very traditional activities have been reported. 5. Futher the commitment of NGOs promoting staffs in various stages of SHG operation and motivaton of members participation, though marked positive, often found elusive in making the programme successful. The lacunae lies in NGOs’ own management system as well as the apathy of the members towards the new emerging, results in bringing least succes in SHGs. 6. Besides, SHG promoting staffin common are not well equipped with knowledge and training on promotion of people’s participation, This is distinctly visible in almost all SHGs operational areas, especially more in backward districts like Gajapati and Kalahandi,7. Majority of members in the SHG carry out different activities independently and it is observed that they are less successful, 8 Regarding the participation of membership it has been observed that 60% of them had low, 10% of them high and 20% of them are medium participants. Further this low participation is often marked more prominently in backward tribal districts like Kalahandi, Phulbani and Rayagada, precisely because of acute poverty where people use to live from hand to mouth. They are also often impatient and disinterested to wait for benefits to flow from SHGs asit takes some time to accomplish the goal. Equally they are also suspicious about the misutilisation of their hard earned money. All these, however, deter them to be involved actively in the process of SHG. 9 It has been observed that a good deal of SHGs have been formed and soon after their formation they don’t have any activities, That means, in the formation stage > itself, they have been inactivated, therefore SHGs forming agencies have not come forward to stimulate the members of SHG. In Ganjam district, CARE an important NGO have formed 32 SHGs but none is linked with bank and their activities are nil, 10, Bank loan received by the members are not utilised purposefilly. It is noticed that few members utilise the loan to pay offold debt. On this ground SHG objectives are is no way greater than the bank finance under different poverty alleviation schemes. i. Collection of membership fees is not regular in 50% of SHGs. Thus working of SHGs becomes difficult. Again mobilisation of savings from the members becomes difficult. 12. _ It is found that, majority of SHGs are found incompetent in maintaining records due to the low level of literacy among the members. 13, It was also observed among many SHGs that the interests of the members in SHG activities is more at the preliminary stage and gradually it diminishes. 14. Inmajority of SHGs members are found to be non-homogeneous, particularly in SHGs promoted under DWACRA and SGSY schemes. The reason is that the members in the group are selected from BPL category in consultation with village committee (Gram Sabha), Generally these persons happen to be political and very often they include members from APL category which result in the loss of homogencity in the SHG. Asa result the very purpose of SHG is defeated. 15. Though regular meeting at some fixed time interval strengthens the effectiveness of SHGs and its members, but it has been reported that majority of members in majority of SHGs don’t think it seriously. The reason is that members in the women SHGs give more time to houshold chores.16. After refering to the minute books of majority of women SHGs, it canbe stated that the women members who remain present in the meeting take some valuable decisions as to the commercial viability of the micro enterprises, possibilities of good marketing, better price for the products produced and ensuring quality in the product, profit maximisation of the members etc.. 17. Of course in the decision making process on an average 30 percent of members only are found active. 18, The decisions as to the disbursement of credit some times happens on the ground of favouritism to few members asit has been reported in our survey. 19. Interest rates charged on different loans vary according to the source of borrowing and the need for the loan. 20. As most of the members are illiterate women, about 40% of the members can’t easily recognise the purpose of the SHG. ooeANNEXURE - I DISTRICT-WISE LIST OF DWACRA GROUPS District Angul Balasore Bargarh Bhadrak Balangir Boudh Cuttack Deogarh Dhenkanal Ganjam Gajapati Jagatsinghpur Jajpur Jharsuguda Kalahandi Kendrapara Keonjhar Khurda Koraput Malkangiri Mayurbhanj Nowapara ‘Nawarangpur ‘Nayagarh Phulbani Puri Rayagada Sambalpur Sonepur Sundargarh Total No, of DWACRA groups 149) 429 127 No of SHGs availing credit from DWACRA fund 0 0 BANNEXURE - II DISTRICT-WISE LIST OF SHGS FORMED UNDER SGSY Districts ‘Number of SHGs formed under SGSY Angul Balasore Bargarh Bhadrak Balangir Boudh Cuttack Deogarh Dhenkanal Ganjam Gajapati Jagatsinghpur Jajpur Tharsuguda Kalahandi Kendrapara Keonjhar Khurda Koraput Malkangir Mayurbhanj Nowapara Nawarangpur Nayagarh Phulbani Puri Rayagada Sambalpur Sonepur _ Sundargarh TotalName of the | District a) ANNEXURE - IIT SELF HELP GROUPS FORMED UNDER INDIRA MABILA YOJANA Name of the Project @) NGO identified @) No. of Homogenous groups formed (4) Kalahandi Koraput Nawarangpur Nuapada Rayagada Balangir = do - 1M. Rampur 2. Narayanpatna 3. Nwarangpur 4, Boden 5, Gudari 6, Saintala 7. Belpada FARR AWKURAN Rural Development Society Dharam Jagaran GM. Pathagar -do- 241 50 TOTALANNEXURE-IV DISTRICT-WISE LIST OF SHGS FINANCED BY BANKS UNDER SI. No. NKAGE PROGRAMME Name of the District Number Angul 22 Balasore 79 Bargarh 41 Bhadrak 19 Balangir Deogarh Dhenkanal Gajapati Ganjam Jajpur Tharsuguda Jagatsinghpur Kalahandi Kandhamal Kendrapara Keonjhar Khurda Koraput Mayurbhanj Nuapada Nayagath Puri Rayagada Sambalpur Subamapur Sundargarh Cuttack Malkangiti Nabarangpur Boudh TotalANNEXURE-V BANK-WISE VVV CLUBS AND NO. OF SHGS FORMED BY THEM IN GANJAM DISTRICT, Bank wise VVV Clubs No obSHGs| No of SHGs (vvvc) formed _}linked to the bank VVVC under Andhra Bank 26 Nil VVVC under Bank of Baroda 3 2 VVVC under Indian Bank 2 2 VVVC under Rusikulya Gramya Bank 7 Nil Total 4Sample Design ANNEXURE- VI Districts .|_ Selected ‘Name of the SHPI consided No of Women SHGs in Sampling Design ST. General] Total Garjam Rayagada 1) Mahila Sanchayika ‘Sangha (MASS) (5 from Bethampur Municipality) 1) PREM (NGO) 2) Gram Vikas (NGO) 1) Samanwita (NGO) 2)Nehru Yuva Kendra 1) Panchabati Gramya Bank 2) Commercial Bank 3) Vikas Niketan (NGO) 1) Indira Mahila Yojana 2) Kalahandi Gramya Bank 3) SGSY 4) Commercial Banks 1) DWACRA 20 25 TotalANNEXURE - VII PROFILE OF THE SELECTED DISTRICTS FOR THE PURPOSE OF STUDY Particulars Geographical Area Subdivisions Tahasils CD Block Grampanchayata Villages (@) Inhabited (b) Uninhabited Total Population Male Population Female Population Sex Ration. (Female Per 1000 male) Percentage of ST Population to the Districts total Population Percentage of SC Population to the District total Population