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Volume-23

Communicate Minds
15 October 2005 FORTNIGHTLY

ADVISORS
Khirod Ch. Malick Pitabash Sethi Jogeswar Majhi Makardhawj Sahu Shiv Prasad Meher Aurobinda Mahapatra Pradeep Kumar Mohanty

BISWA micro-Finance: a Journey

Community development activities have taken different shapes and, have adopted different strategies to attain the laid down objectives over the decades, so more so in post- world war II global phenomenon pertaining to enhancing quality of human life in developing countries. Many innovative approaches have been identified in the process and have been experimented under diversified conditions with diverse communities. A major development in the south-east Asia was the Self Help Group model. Over two decades of its emergence, it has proved to be one of the most effective vehicles to carry messages, information and ideas; most effective tool for enhancing socioeconomic status of marginalized people, adding quality to human life. The uniqueness of this modality has been the ability to initiate group action resulting in a sense of social security, mobilization of a large part of the human resources: the women (though men are involved but the focus is on women) and above all the ability to create a capital base at the community level creating avenues and options for alternative livelihoods. Most of the developmental sectors viz. education, health, environment protection, economy, skill development, lobbying and advocacy etc have been effectively accommodated in the Self Help Group model. This model has been adopted across India by the NGOs as well as the State Governments. Though operational modalities have been slightly different from each other, the basic structure, aim and objectives are unaltered; initiating group action, thrift and credit, revolving loan fund to support their respective income generating activities and enhancing socioeconomic status of the women. This method has been able to minimize gender disparity, elevate social status of women, have helped them to gain access over resources (family and community). The physical and tangible development that is more or less obvious is the economic freedom enjoyed by the women. The SHG movement has helped them to identify potential local products, value addition, and access to markets and in many a places has restored many a traditional art and crafts. The products range from turmeric powder to brass and bell metal products, appliqu to agarbattis , mushroom to paddy & vegetables, terracotta to Dhokra, petty coat to carpets and so on. The range of products spread through out the State is innumerable, being marketed locally and also abroad. With reference to the vulnerability context whereas vulnerability implies the external environment that a person lives in, the livelihoods and the assets are fundamentally affected by critical trends as well as by shocks and seasonality over which they have no control, the SHG movement has influenced the assets creation,

In this Issue...
) Editorial )BISWA mF Journey )IFAD official visit )Other BISWA News

The Link
Chief-Editor Debabrata Malick Editor Guru Prasad Nahak

Contact :The Link BISWA At-Danipali P.o-Budharaja Dist-Sambalpur, PIN-768004 Tele fax- +91-663-2533597 FAX No.: +91-663-2402115
Email:biswamalick@rediffmail.com

kc_malick@yahoo.com www.biswa.org

15 OCTOBER
generated alternative livelihood options for over a million of people positively or negatively affecting economy of the states and the nation. The Self Help Group movement gained momentum during early nineties in India. It has provided the capacity to absorb shocks and identified seasonality in demand and supply of hundreds of products throughout the nation. Seasonal shifts in prices, employment opportunities, food security (availability) are some of the most enduring sources of peril in developing countries. National Bank for Agriculture and Rural Development (NABARD) took the first initiative in promoting Self Help Groups in Orissa simultaneously with the State Government promoting the muthia chaula (a handful of rice) through its block development offices. Whereas the initiative of the Government was less in pace and was limited only to promotion and formation of SHGs, NABARD encouraged income generating activities by directly funding the micro-enterprises by the SHGs in a very large scale, so more so for the artisans, traditional craftsmen and other segments/ industries. Non-Government Organizations (NGOs) played a role of carrier of the concept further both for the government and NABARD. At present the formal financing institutions including the private banking sector are imposed to invest in micro-financing in rural areas as a regulatory demand. Regional Rural Banking (RRB) emerged out of the absence of pro-poor attitude in the-then prevailing banking system and failure of RRBs to meet the demand with a holistic approach to enhance the repaying capacities of the creditors gave rise to the system of micro-finance, micro-enterprise and rural enterprises. Bharat Integrated Social Welfare Agency (BISWA) started its micro-Finance activities during the year 1996-97 in Sambalpur district, which later spread to cover all the state by 2004 and as on now the coverage extends to 7 states. So much so BISWA is appointed as the Nodal Agency for Rashtriya Mahila Kosh for Chhattisgarh State. As mentioned earlier the micro-Finance activities are carried out through the SHG model & the number of BISWA SHGs by the end of March 2005 stood at 4699, with total membership of 71,845 persons.The following table gives a brief picture of the micro finance growth of BISWA over the last six months.

BISWA has fixed a self target to promote at least 10,000 SHGs with a coverage of 1.5 lakh members in its micro Finance Mission. The very motto is to revive the roots of banking in such a way that credit is once again based on mutual relationship and trust. Ones creditworthiness should not be judged on his/her wealth and poverty, as practiced earlier. This is expected to build a real and lasting psychological, social & financial impact on the individual for further improvement. With such a noble mission BISWA carries out its micro Finance activities though the Self Help Group (SHG) model. The journey of this noble idea in almost a decade has achieved its goals in manifolds. It was not an easy task to reach the destination fixed by BISWA, but the advancement speaks volumes of it, which is not less then a revolution. It could be judged in the yardsticks of education, health, environment protection, economy, skill development, lobbying and advocacy, with many innovative approaches. Such an achievement always thrived by any development agency, who aspires to carve its identity in the social sector. It is also possible to promote empowerment of women through this movement and the result is in minimizing gender disparity with elevating the social status of women. It is a tangible development in the field of economic freedom enjoyed by women folk of the society, which is physically visible now. With this mission to carry on the campaign, BISWA has grown crossing the state boundaries and reaching out to many other states. So an agency with initiating as a district level organization has not only carved its identity as a state level organization but also aspires to be of national level. With such pace the national boundary is not far off to be crossed soon.

INDICATORS Outreach
No. No. No. No. No. of States of districts of villages of SHGs of members

AS ON 31ST MARCH 05
02 27 1909 4699 71845 15,864,140 INR

AS ON 30TH SEPTEMBER 05
07 47 2145 6315 96720 20,994,014 INR

Savings Mobilization of savings by the SHGs (N.B.: The saving of the SHGs are not utilized by BISWA) Credit No. of loans disbursed Amount of loan disbursed Amount outstanding Insurance Coverage under JBY scheme

2537 86,027,150 INR 50,455,124 INR 2314

3316 208,953,081 INR 13,769,1517 INR 7654

SELF HELP FEDERATION Besides SHG promotion BISWA is also promoting Self Help Group Federation in the operational area. Till date it has promoted 12 Self Help Group Federations, out of which 6 are promoted in the rural and 1 in the urban area. For the appropriate legal structure of those federation promoted, they are registered under Indian Trust Act as Mutual Benefit Trusts (MBTs), a sovereign body which has its own defined constitution. 6 federations are already registered under the above Act. For operation modalities of these federations, operational guidelines (loan policies/ saving policies/ HR policies etc.) are being prepared with expert opinion. THE ROAD AHEAD BISWA envisages to promote a Non Banking Financial Company. The proposed entity is to be registered as a Private Limited Company under the

Company Act,1956 and will be registered as a Non Banking Financing Company under Sub-section 1 of Section 45-IA of the RBI Act. Before commencing operations, it will obtain a certificate of registration from the Reserve Bank of India; and have Net Owned Funds (NOF) shareholder equity + internally generated reserves of Rs200 lakhs.The proposed company will strive to meet all Prudential and Non Prudential norms of the RBI for accepting public deposits. The promoters find that under the current regulatory mechanism, this the best suited to operate microfinance activities. Over a period of 10-15 years, the promoters have envisaged turning the NBFC in to a Bank after having fulfilled all regulatory requirements. There will be no transfer of assets and liabilities from BISWA to the proposed entity. The proposed entity will raise its financial resources through various

means as described in the business Plan and will use the service of MBTs and partner NGOs to form SHGs. The proposed entity will be focused as a financial facilitator. INSURANCE COVERAGE BISWA started Insurance as a product in the Microfinance program. BISWA is the corporate agency of LIC of India and insuring the members of SHGs in the Janashree Bima Yojana. In this policy, a member is paying Rs. 100/- for one year premium and in case of natural death the nominee of the member will get Rs. 20, 000/- and for accidental death of a member the nominee will get Rs. 50, 000/-. Besides this if the member will be partially disable in any acdient then will get Rs. 25,000/- and if complete disable will get Rs. 50,000/-. The premium will be valid for one year.

IFAD & SIDBI OFFICIALS VISITED BISWA

Mr. Isan Gill, Senior Portfolio Manager, International Fund for Agricultural Development (IFAD), paid an official visit to BISWA with Mr. Atul Rostogi, Assistant General Manager (AGM), SIDBI, Bhubaneswar, on 2nd October 2005. Mr. K.C.Malick, Chairman, BISWA, welcomed the guests and presented a brief introduction and activities of BISWA in a meeting at its central office. All the staffs introduced themselves before the guest. Mr. Gill interacted with our staffs regarding the Self Help Group concept and NBFC.

CLAIM SETTLED ON JBY SCHEME

BISWA organized a programme on Insurance where in Mr. Gupta, DO, LIC, handed over a cheque of Rs.20, 000/- to the nominee of late Kastu Biswal of Dhubulipathar village, Deogarh district in Janashree Bima Yojna (JBY) scheme as per claim settlement. In this programme Mr. Gupta, described the benefits of Janashree Bima Yojna (JBY) scheme. On this occasion Mr. S.Sahu, and Mr. Jogeswar Dalabehera, eminent social workers also emphasized the role of BISWA for empowering women folk in their socio-economic prosperity. Mr. Chandra Sekhar Pradhan, District Coordinator Deogarh, BISWA, coordinated this programme. *********

HEALTH CAMPS REPORT

A Mega Health Camp was organized by BISWA at Raital village of Deogarh district on September, 29th, 2005. where in Dr Anil Mishra and Dr. Barai treated about 800 patients. Medicines were freely distributed among the patients. The students of Jhargagua High School also participated in that camp. Peoples from nearby 12 villages were benefited from this camp. Villagers expressed their gratitude for availing such type of facility extended by BISWA. Another Mega Health Camp was also organized by BISWA at Thelkogudi of Kendeijuri Block in Deogarh district on September 30th, 2005. Sri P.Patel, inaugurated the camp, along with him two eminent person were present on that occasion. Health aspects of about 700 hundred person were checked by Dr. Anil Mishra and Dr. Barai. Sri Chandra Sekhar Pradhan, District coordinator, BISWA put his strenuous efforts for the success of these two camps. A team comprised of trained health workers of BISWA, took active participation in it.

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GENERAL MANAGER M.V.S.N VISITS BISWA

Mr. Manas Ranjan Rai, General Manager, Mahila Vikash Sambaya Nigam (MVSN), and his wife paid a cordial visit to the central office of BISWA on October 1st, 2005. Mr. K.C.Malick, Chairman, BISWA, welcomed the guest and presented a brief introduction and activities of BISWA. Prior to it all the staffs introduced themselves. Mr. Rai expressed his views on the concept of Self Help Group and Mission Shakti, which work for the upliftment of women and their empowerment. He also put his strong view on the role of women empowerment in Orissa. He emphasized on how the GO and NGOs are playing active role in the promotion of Mission Shakti. He expressed his view on the problems of marketing of the products which are made by the group members. He said that Mudhi, Badi, Sadhi, Pampad, which is the prime products of the SHGs and it would be marketed properly. Mr. Trivikram Sahu, DSWO, Sambalpur, was also present on the occasion. He gave his views on promotion of SHGs and market linkage of the products. Both Mr. Rai and Mr. Sahu assured us that they will provide the necessary support and assistance, whatever possible in their capacity. CDPOs and ICDS officials of Sambalpur district were also present on that occasion.

INAUGURATION OF SISAL FIBER WEAVING TRAINING PROGRAMME AT HATIBARI

A training programme on Sisal Fiber Weaving was inaugurated on October 5th 2005 at Hatibari. Mr. S.N.A. Jinha, DGM, NABARD, Bhubaneswar, inaugurated the training programme. Mr. P.K.Mohanty, Manager (Planning), BISWA, welcomed & introduced the guest. Mr. Jinha in his inspiring speech said that the efforts by BISWA on socialization of leprosy cured people is a good initiative. He wished all the success for socio-economic development of Hatibari Health Home inmates and promised to visit it again in post training period to see the inmates with their pleasant smile. Mr. S.P.Mahapatra, Manager NABARD, Bhubaneswar, Mr. P.K.Pradhan, GM-DIC, Sambalpur, Mr. B.K.Dash, AGM-NABARD, Sambalpur, also participated in this programme.

B I S W A

The Link
BISWA
At-Danipali P.O-Budharaja Dist-Sambalpur PIN-768004 Tele-fax- 0663-2533597(O) **********

Observing Gandhi Jayanti

The 137th birth day of Mahatma Gandhi, was observed at central office of BISWA on October, 2nd 05,On this occasion Mr. Isan Gill, Senior Portfolio Manager, IFAD, lighted the lamp before the portrait of Mahatma Gandhi. Mr. Atual Rostogi, AGM, SIDBI, K.C.Malick, Chairman, and all the staffs of BISWA were present.

Printed and Published by Debabrata Malick, Chief Editor. The Link, at BISWA Computer Section, Danipali, Sambalpur. PIN- 768150 Ph. No- 0663-2533597