Extract from State Focus Paper for Meghalaya 2006–07
prepared by NABARD, Regional Office, Shillong
are a large number of NGOs in the State, the number of NGOs working in the areas
of Self Help Group formation, training for income generation and conduct of
Rural Entrepreneurship Development Programme etc are very few in number.
Profiles of some of the major NGOs, which have been supported by NABARD,
are given below:
a. Women for Integrated Sustainable Empowerment (WISE)
The Agency was established in the
year 2000. The Agency is engaged in
charity and relief work for economic and development of the poor with special
focus on women and children. The NGO
has its Head Office at Shillong. Major
activities of WISE are promotion of Self Help Groups, Conduct of skill-oriented
programmes for women and conduct of REDPs. The
agency has so far provided training to over 1000 persons.
In collaboration with Catholic Relief Association, WISE has taken
initiatives in three villages in East Khasi Hills District. The NGO is also
closely associated in the implementation of SGSY.
b. NAMRHEN Association
The Agency was registered in the
year 1999. The agency has its
operation covering Jaintia Hills District. The
major activities of the NGO are
conduct of REDPs; Self help Groups promotion, conduct of awareness programmes
c. Bosco Reach Out (BRO)
Bosco Reach Out is the Social
Development Wing of Selesian of Don Bosco in
e. Bethany Society
Society was established in the year 1981. The
NGO has their Headquarter in Tura, West Garo Hills district.
The main objectives of the Agency are to provide support to disabled
persons, rehabilitation of the poor, organize training programmes and create
sustainable livelihood for rural poor. The Agency is also actively involved in
promotion of Permaculture.
is the development wing of the FMA of Shillong province run by Selesian sisters.
The Agency was set up in the Year 2000.
The Agency is actively involved in empowerment of tribal women through
SHG formation and conduct REDPs for self-employment.
The have set a target of assisting 4000 women below poverty line through
g. Farmers Clubs
Farmers club programme was launched by NABARD in 1982. The main functions of Farmers clubs are
Meghalaya as on
h. Indian Council for Agriculture Research
In order to have adequate research back up for agricultural development in the North Eastern Hill Region of the country, the Indian Council for Agriculture Research established the first major agricultural research institute for the region known as ICAR Research Complex for North Eastern Region in the year 1975. The Headquarter of the Institute is located in Meghalaya (Umiam). The basic objective of the set up is to generate location specific technologies for different agroclimatic zones of the region. The Institute has also set up a Potato Research Station and six Krishi Vigyan Kendras in Meghalaya.
North Eastern Region Community Resource Management Project for
North Eastern Region Community Resource Management Project for Upland Areas
is a joint initiative of the Government of India (GOI) and the International Fund
for Agricultural Development (IFAD). The
overall objective of the project is to improve the livelihood of vulnerable
groups in a sustainable manner through improved management of their resource
base in a way that contributes to protecting and restoring the environment.
project targets about 1,000 villages and 42,000 households. The project is
operational in the States of Assam, Manipur and Meghalaya.
In Meghalaya West Khasi Hills and West Garo Hills are covered.
The specific objectives of the project are:
j. Meghalaya Rural Development Society
International Fund for Agriculture Development (IFAD)is
implementing jointly with the Government of India, “The Livelihoods
Improvement Project for the
the Appraisal Report a tentative list of 9 blocks have been selected for the
first two years of project implementation and an additional 5 blocks will be
selected in the 3rd year. The
end of the project would cover an estimated 570 villages.
During the first 2 years, villages will be selected from the following
Joint Liability Groups – Means to Better Access to Credit
k. Joint Liability Groups – Means to Better Access to Credit
of adequate security sometimes creates a major hurdle for small and marginal
farmers and other poor section people in securing loans.
The inability to provide collateral often excludes them from the purview
of credit. Keeping this in view a
pilot project on financing Joint Liability Groups (JLGs) was initiated by NABARD
for developing effective credit products for mid segment clients, which reduce
risk and transaction costs for the bank and also introduce a greater degree of
flexibility for the credit user to determine credit needs and parameters.
Joint Liability Group will be an assembly of 5-10 member clients (new or
existing) informally recognized by bank as a Group.
A group serves as collective guarantor for loans extended to individual
members. Although there is good scope, Banks in the State are yet to finance
Micro-finance - Union Budget has proposed to enhance the annual target of credit linkage to 2.5 lakh SHGs during 2005-06. NABARD and banks have set a target of linking additional 5.85 lakh SHGs to banks by end-March 2007. In order to give further fillip to micro-finance movement, the following measures have been initiated:
Micro-finance - The Micro Finance Development Fund
(MFDF) set up in
the NABARD re-designated as the Microfinance Development and Equity Fund (MFDEF)
and its corpus increased from Rs.100 crore to Rs.200 crore.
The Internal Group (Chairman: Shri H.R. Khan) constituted by the Reserve Bank to examine issues relating to rural credit and micro-finance submitted its report in July 2005. Important recommendations of the Group include providing comprehensive financial services in rural areas encompassing savings, credit, remittance, insurance and pension products and establishing linkages between banks and external entities based on two broad models viz., business facilitator model and business correspondent model. The recommendations of the Group are under examination.
Micro Finance Development and Equity Fund - The Micro Finance Development
Fund (MFDF) re-designated as the Microfinance Development and Equity Fund (MFDEF)
and its corpus increased from Rs.100 crore to Rs.200 crore
Farmers' Club - Revised policy guidelines issued in respect of
"Farmers' Club" programme to make it sustainable and more vibrant.
Increase in refinance quantum - Quantum of NABARD refinance
increased from 80% to 100% of bank loan provided to MFIs at the interest rate of
6 % with the stipulation that interest charged by banks from mFIs not to exceed
9 % p.a.
Increase in grant assistance - The maximum grant assistance
to NGOs for promotion and nurturing of groups enhanced from Rs. 2000 to Rs.3000
per SHG, to be released over a period of three years instead of two years. The maximum grant assistance to RRBs and Co-operatives
for promotion and nurturing of groups enhanced from Rs. 1000 to Rs. 1500 per
SHG. The incentives for Individual Rural Volunteers (IRVs)
revised from Rs.700 to Rs. 1200 per SHG.
Rating of mFIs - A new scheme introduced for one year for financial
assistance to banks for rating of mFIs. NABARD to bear 75% of the rating charges
by CRISIL and the concerned mFI to bear the balance 25%.
SUPPORT FOR GOVERNMENT SPONSORED PROGRAMMES
salient features of credit linked subsidy schemes being implemented are given
Capital Investment Subsidy Scheme (CISS) for
Construction, Modernisation and Expansion of Cold Storages and Storages for
the importance of reducing post harvest losses, the Government of India had
introduced the scheme in 1999 for implementation through NABARD/National
Horticulture Board. The Scheme
intends creation of new 12 lakh tones and renovation of 8 lakh tones of cold
storage capacity. The rate of subsidy is 33.33% of the project cost with maximum
of Rs.60 lakh per project.
Capital Investment Subsidy Scheme for
Construction/Renovation of Rural Godown
our country is self sufficient in food grain production, lack of scientific
storage facilities very often leads to distress sale by farmers.
In order to provide farm community with scientific storage facilities,
Government of India had formulated the Captioned Scheme.
Directorate of Marketing and Inspection,Dept. of Agriculture & Co-operation,Ministry
of Agriculture, NABARD and National Co-operative Development Corporation (NCDC)
are the implementing agencies. The
scheme also aims at creation of new 32 lakh tones capacity and renovation of 4
lakh tones of rural storage capacity. The
maximum and minimum capacity ranging from 25 MT to 10000 MT.
The subsidy pattern for NE States is 1/3 of the project cost or Rs.50
lakh whichever is less.
3. Back ended Credit Linked Subsidy Scheme for Promotion of Tree Borne Oilseeds
The tree borne oilseeds can be grown and established in the wastelands and varied agro-climatic conditions and have immense domestic and industrial utility such as in agriculture, cosmetics,pharmaceutical, bio-diesel, substitute to cocoa butter, etc. The estimated requirement of jatropha/honge oil, as a source of bio-diesel for 20% blending with HSD, alone is expected to 13.8 MMT by the year 2011-12 in the country.
with a view to promoting the commercial cultivation of these tree species as
also to provide forward and backward linkages for promotion of the TBOs, the
Govt. of India has launched the Back ended Credit Linked Subsidy Scheme for
promotion of Tree Borne Oilseeds (TBOs).
scheme is implemented through National Oilseeds and Vegetable Oil Development (NOVOD)
Board, under the Ministry of Agriculture, Govt. of India.
Under the scheme the eligible activities are establishment of seed
procurement centers, installation of multipurpose pre-processing and processing
facilities, installation of oil expeller and nursery raising
and commercial plantation. The
scheme provides 30% back ended subsidy. 100%
refinance eligible to the banks from NABARD.
Centrally Sponsored Rainwater Harvesting Scheme
for SC/ST farmers
the need to create additional water bodies through harvesting of rainwater, for
irrigation and other alternative uses, such as recharging of ground water, fish
culture, stopping wasteful flow of rain water etc, the concept of rain water
harvesting structures has been evolved. In
order to support the SC/ST farmers to create such water bodies, the Government
of India has announced a special scheme in the Union Budget namely, Rain Water
Harvesting Scheme for SC/ST farmers for achieving the accelerated growth of
irrigation potential, thus improving the per capita income of these farmers in
the country. All the States and
It is proposed
to set up one-lakh rain water structures during the remaining X Five Year Plan
(2004-05 to 2006-07). 50% of he
refinance will be provided from Government of India which will be through
NABARD. There is no down payment or
margin money under the scheme. All
individual SC/ST farmers will be eligible under the scheme.
5. Central Sector Plan Scheme “Dairy/Poultry Venture – Capital Fund”
Nearly 70% of
milk production in
upgradation to handle the milk on a commercial scale using modern equipments and
management skills is also warranted in the dairy sector.
inspite of well-developed Poultry Sector in the country, a considerable segment
in the sector is still unorganized and the spread is uneven and scattered.
Training and marketing continue to be the weakest links in the facet of
various poultry development programmes. Due
to these limitations, poultry development particularly in the North Eastern
States is still at a very primitive stage. Even
though the productivity of the layer farmers is comparable with those in
advanced countries, we are unable to become competitive in the global market due
to qualitative and quantitative considerations.
In order to
bring in a planned development aimed at exports as also to give a fillip to the
unorganized sectors in the dairy and poultry development, the Department of
Animal Husbandry, Ministry of Agriculture, Govt. of India is
implementing the”Central Sector Plan Scheme Dairy and Poultry Venture
Capital Fund”, to provide technical and financial assistance.
The assistance will be provided to the rural beneficiaries through
scheme the entrepreneurs contribution will be 10% and 40% is bank loan.
The remaining 50% is provided as interest free loan.
In respect of bank loan 50% of the interest will be provided as subsidy.
6. Capital Investment Subsidy Scheme for Commercial Production Units of Organic Inputs under “National Project on Organic Farming”
In order to
arrest deterioration of soil health due to increasing and indiscriminate use of
synthetic fertilizers/pesticides, emphasis is being given world-over to promote
organic farming which is the holistic production management system, based on
basic principle of minimizing the use of external inputs, avoiding the use of
synthetic fertilizers and pesticides. In
the context of the global thrust on organic farming practices and environmental
safety, it is imperative to augment the production of quality organic inputs to
meet the growing demand of plant nutrients in the country.
Accordingly, Capital Investment Subsidy Scheme for Commercial Production
units for Organic Inputs under “National project on Organic farming” has
been introduced by the Government of India for implementing during Tenth Five
Year Plan period, with effect from 15.02.2005.
Bio fertilizers, Vermiculture hatcheries, Fruit & Vegetable waste compost
unit are eligible for assistance under the scheme.
The subsidy of 25% is provided under the scheme.
The margin money and term loan are 25% and 50% respectively.
The subsidy is released by NABARD to the eligible banks.
7. Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, grading and Standardization
collection/assembling, drying, cleaning, grading, standardization, sanitary
& phytosanitary (SPS)measures and quality certification, labeling, packing,
ripening chambers, retailing and wholesaling, value addition facilities(without
changing the production form), etc, excluding transport facilities, Market user
common facilities like shops/offices, platforms for loading/unloading/assembling
and auctioning of produce, parking sheds, internal roads, garbage disposal
arrangements, boundary walls, drinking water, sanitation arrangements, weighing
and mechanical handling equipments, etc. are eligible for assistance.
CHAPTER – VIII-B
NABARD’s debut in micro Finance a decade and half ago, it has been catalyzing
the banking system in the country to join hands progressively with informal
delivery channels to give SHG-Bank Linkage the necessary momentum.
During 2004-05, this has resulted in 5,39,365 new SHGs being credit
linked with mainstream banks thus registering a 49% growth over the previous
year increasing the cumulative number of SHGs credit linked with banks to
16,18,456. The active participation
of women (90%), and timely loan repayment (95%) continue to be prominent
features of the programme. The year
witnessed an all round growth in the SHG-Bank Linkage programme in many States.
Proactive measures such as enlisting partnerships, capacity building of partner
agencies, etc., served to expand the programme.
The programme thus enabled an estimated 24.3 million poor households in
the country gain access to micro Finance from the formal banking system.
been instrumental in facilitating the formation and nurturing of SHGs, involving
all possible partners in the arena. Realizing
the task involved to be process oriented, NABARD has cautiously involved
voluntary agencies, bankers, socially spirited individuals, other formal and
informal entities and also government functionaries to promote and nurture such
groups. The focus was on building
capacities of the partners and providing assistance in meeting the incremental
costs of nurturing of SHGs. Bank also extended extensive support for arranging
and conducting awareness creation and capacity building programmes for the SHG
members in association with identified resource NGOs.
programme of linking Self Help groups (SHGs) with the banking system has emerged
as a major finance programme in the country.
Accordingly, the Union Budget for 2005-06 proposed to enhance the annual
target of credit linkage to 2.5 lakh SHGs during 2005-06 from 2 lakh SHGs.
Micro Credit in Meghalaya
micro credit initiatives have taken place in the State with the involvement of
NGOs both under Government sponsored schemes and outside.
Most of the larger NGOs in the State have a good track record and are
involved in formation of SHGs. These
NGOs are basically church-based and had been undertaking social activities
(literacy, health, sanitation etc.) and
have, in the last couple of years, also involved themselves in promoting Self
Help Groups. There are many areas in
the State where due to absence of good working NGO, SHG linkage has been very
SHG programme had a slow start but has gradually picked up and as on date there
are around 3954 SHGs promoted under SGSY as also 2564 SHGs outside
government sponsored programmes.
The important NGOs
which are engaged in promotion, nurturing and upscaling of Self Help Groups in
the State are Bosco Reach Out, Women
for Integrated Sustainable Empowerment (WISE), FMA-Outreach for Underprivileged
Women and Children (FMA-OUWC), New
Rompa Mebit Club. A good number of
SHGs are also promoted under the North Eastern Region Community Resource
Management Project supported by IFAD. In
addition Department of Horticulture and Department of Soil Conservation of State
Government are also promoting Self Help Groups.
The DRDA is arranging training
to their staff through SIRD, Umiam.
The important NGOs which are engaged in promotion, nurturing and upscaling of Self Help Groups in the State are Bosco Reach Out, Women for Integrated Sustainable Empowerment (WISE), FMA-Outreach for Underprivileged Women and Children (FMA-OUWC), New Rompa Mebit Club. A good number of SHGs are also promoted under the North Eastern Region Community Resource Management Project supported by IFAD. In addition Department of Horticulture and Department of Soil Conservation of State Government are also promoting Self Help Groups. The DRDA is arranging training to their staff through SIRD, Umiam.
Finance to SHGs since inception (Rs.
about fifteen NGOs actively participating in Self Help Group promotion. The
total number of SHGs promoted by these agencies stood at 1695 groups.
The DRDA has promoted about 3954 groups with the help of various agencies
under SGSY. The agency-wise district-wise position of promotion of SHGs in the
State is given below :
Inspite of a
good number of SHGs promoted and saving linked with formal institutions, credit
linkage is very poor. This may be due to lack of awareness among the members of
SHGs regarding the benefits of credit from the formal credit institutions.