A.P model of SHGs & Their Federations Indira kranthi patham

1. A.P model of SHGs & Their Federations Indira kranthi patham P. Usha Rani State Project Manager Society for Elimination of Rural Poverty Dept. of Rural Development, Govt. of A.P 13.11.08

2. Vision of A.P Each family in the state should be out of poverty, and, enjoy:- • Life with dignity, ‘voice’ • Intra family equity – equal status for women • Freedom from hunger • Decent Income: >Rs.5000 per month, 3 - 4 sources • Planned household expenditure • Risk management - life, health, assets and incomes • Education, health and shelter

4. Our core beliefs about poor • Poor have a strong desire and innate ability to come out of poverty • Poor have a strong sense of self-help and volunteerism Obstacles – psychological, social, economic, political - suppress their innate capability • Social mobilization to unleash their innate abilities • Poor can come out of poverty only through their own institutions • Social mobilization – not automatic, needs to be induced • Hence, need for sensitive support institutions for poor

5. Genesis of A.P programme • A long term strategy for poverty eradication • Women S.H.Gs in A.P–mass literacy campaigns from 1990 - 95 - initiative of District Collectors • Simultaneously N.G.Os fostering S.H.Gs • N.A.B.A.R.D directions to banks to finance S.H.Gs in 1992 • S.A.A.R.C Colombo Summit 1992 • First Independent South Asia Commission on Poverty Alleviation - 1993 (‘Meeting the challenges’) • S.A.A.R.C Dhaka Summit 1993

6. Critical role of Govt. of A.P • UNDP-SAPAP Project (1995 – 2000) • Scaling up SAPAP - World Bank fund support (2000 – continuing) • Setting up of S.E.R.P • District level initiatives of Collectors • Support from all line departments • Strong and sustained commitment of successive Chief Ministers of A.P to this process • Govt vision: to cover each and every poor family in the state

7. Roleof S.E.R.P • Sensitive support organization for the poor • Autonomous society, set up by Government in 2000 • Chief Minister – Chairman of General Body of S.E.R.P • Statewide mandate • firm conviction in the capability of poor, and, in organizations of the poor

8. S.E.R.P mission • To induce social mobilization • To provide facilitation support to institutions of poor • To sensitize all line departments to be inclusive of the needs of the poor • To sensitise banks, insurance companies, and other service providers

9. Social mobilization and empowerment Govt. departments Knowledge & awareness Organize rural women’s groups & their federations Fin. institutions Panchayat Raj institutions Investment support Markets and others Strategy

10. A.P Federation Model Z S 200,000 400,000 • E.C - 2 from each V.O, 5 Office bearers • Support to VOs • Secure linkage with Govt. Depts. fin institutions, markets • Auditing of the groups MMS • Micro Finance functions 4000 6000 • E.C - 2 from each S.H.G, 3 Office bearers - • Strengthening of SHGs • Arrange line of credit to the SHGs • Social action • Village development V.O • Marketing and food security • Support activists – 3 -5 150 - 200 • Thrift and credit activities • Monitoring member performance SHGs • Micro Credit Planning SHGs SHGs SHGs SHGs SHGs • Household inv plans 10 - 15 C.B.Os implement the project Zilla Samakhya Mandal Samakhyas and V.Os plan and implement the various project components • Each Mandal is divided into three Clusters of 10-12 habitations. • A development professional, called Community Coordinator (CC) is placed in each Cluster. S/he stays in her cluster. • SERP selects and trains them. After completion of training, they are contracted by the MS and are accountable to MS. • M.S responsible for social mobilisation, institution building and funding the microplans of S.H.Gs/V.Os from C.I.F • Micro credit plans are evolved by the S.H.Gs in each village. These plans are funded by their own savings, CIF fund and Bank Linkage. • V.Os responsible for appraising the microplans and recommending them to M.S for financing from C.I.F • V.Os appraise microplans and also finance them from the recycled C.I.F Mandal Samakhya Village Organization SELF HELP GROUPS

11. Rationale for promoting SHG Federations • Poverty elimination is the goal of the SHGs • Poverty is eliminated only through multi-pronged initiatives • SHGs individually can not handle the multi-pronged approach to poverty elimination • Hence the Federations

12. SHG Federations at a Glance in AP • 7.28 lakh SHGs covering 90.97 lakh women • SHGs federated into 34,236 Village Organisations (VOs) at village level • Village Organisations Federated into 1088 Mandal Samakyas at Mandal level • Mandal Samakyas federated into 22 Zilla Samakyas in each of the 22 Districts in AP SHG Federations actively involved in wide range of poverty elimination initiatives

13. Structure Of Village Organisation VO General Body VO ExecutiveCommittee President Secretary Treasurer VO Bookkeeper Functional Committees NREGS Monitoring Committee Bank Linkage Committee Asset Verification Committee Monitoring the issues of POP committee Monitoring Committee Social Issues Committee Legal Frame work: Village Organisations - registered as Primary Cooperatives under APMACs Act-1995

14. Activities of Village Organisation • Promotion of SHGs: • Identification of left over Poorest of the poor & Poor & Formation of new SHGs • Monitoring of the performance of SHGs • Supporting SHGs in Problem solving & Conflict resolution • Training SHG bookkeepers on Bookkeeping • Conducting Audit of SHG books of accounts • Till now 2.95 lakh new SHGs are promoted and 1.1 lakh SHG bookkeepers are trained by VOs

15. Activities of Village Organisation • Financial intermediation • Supporting SHGs in preparing Micro Credit plans • Prioritization of Loans • Disbursement and recovery of Community Investment Fund (CIF) • Establishment of Community Based Recovery Mechanism (CBRM) • Facilitates SHG bank linkage & ensures 100% repayment • 4,31,515 SHGs accessed bank loans – • Rs. 5,882.8 Crs in 2007-08

16. Activities of Village Organisation • Promotes Livelihood activities of the poor: • Management of food security activities through village procurement centers -21.1 lakh families in 13,379 VOs • Management of land purchase & access to land activities through land functional committeeat VO level - purchased 4,474 acres, 1.05 lakh poor persons land issues are resolved • Established farmers field schools for Non Pesticide Management - 3.94 hectares acres in 2007-08 in 2,095 villages– 2.9 lakh families

19. Activities of Village Organisation • Promotes Livelihood activities of the poor: • Establishment of Village milk collection centers for promotion of dairy activities & introduced new technologies viz., electronic milkotesters, price display boards - 5,760 Village milk collection centers in 2007/08 • Management of marketing activities through establishment of procurement committees & advisory committees - 63 commodities are procured and marketed in 3016 Procurement centers

20. Fat Testing

22. Activities of Village Organisation • Assists the SHGs in dealing with social issues • Management of Health savings, health risk fund, nutrition cum day care centers and pre-primary schools – 1.17 lakh members health savings : Rs. 78 lakh Rs. 18 crs as Health risk fund & established 200 nutrition and day centers • Organised 1,95,435 differently abled persons into 21,546 SHGs • Establishment of social action committees and family counseling centers for dealing gender issues – In 229 Family counseling centers 293 cases are dealt in 602 mandals

23. Process to establish Nutrition cum day care center Planning meeting Sharing Survey details Pregnant &lactating women Mother-in-laws’oath Mothers nutritional care Day care for children Fixed Nutrition and Health Day

24. Activities of Village Organisation • Enables SHGs to access all Govt Programs at village level • Creating awareness on NREGS among SHG members & wage labourers NREGS & in getting job cards, opening post office/bank accounts, submitting application for work • Developing labour demand & land development MCPs • Supporting SHG members in accessing Housing programe – facilitating Bank loans, provision of materials & ensuring the quality • Disbursement of pensions

25. MS General Body Community Facilitators Mandal Accountants MS ExecutiveCommittee President Vice President Secretary Joint Secretary Treasurer Functional Committees NREGS Monitoring Committee VO Monitoring Committee Monitoring the issues of POP committee Bank Linkage Committee Asset Verification Committee Social Issues Committee Legal frame work MSs are registered as federation of VOs under APMACs Act - 1995 Structure of Mandal Samakhya

26. Activities of Mandal Samakhya • Promotion of VOs: • Formation of VOs • Developing quality parameters & quality control of VOs • Capacity building of SHGs through Community Resource persons strategy & conducting structured trainings • Training the VO bookkeepers • Conducting Audit of VO books of accounts • Management of Mandal Training center

27. Activities of Mandal Samakhya • Financial intermediation • Support VOs in preparing Micro Credit plans • Prioritization of Loans • Disbursement and recovery of Community Investment Fund (CIF) • Establishment of Bank Linkage committees & asset verification committees, participating in Joint mandal level bankers meetings at Mandal level & placing of point persons & case managers for each bank branch • Mobilised own corpus of Rs. 3872.15 crs and received Rs. 1518.97 crs of grant from State Govt

28. Collaboration among CBOs- Financial Intermediation Mandal Samakhya Terms of Partnership (VO – MS) Repayment Period 100 - 120 Months Terms of Partnership (SHG – VO) Banks 40 - 60 months Terms of Partnership (Member – SHG) SHG SHG SHG Prioritization of Needs and Members 12-24 months Members Micro Credit Plan Village Organization

29. Activities of Mandal Samakhya • Promotes Livelihood activities of the poor: • Established Bulk Milk Cooling Centers for promotion of dairy activities & introduced new technologies viz., Computers - Procuring 1.64 lakhs of litres/day in 85 BMCUs. Targeted to establish 316 by 2008-09 • Supports VOs in management of Village procurement centers, farmer field schools, land purchase & access to land activities

30. Bulk Milk Cooling Unit

31. Activities of Mandal Samakhya • Assists the VOs in dealing with social issues • Support to persons with disability: • Financial assistance for creation of livelihoods • Community based assessment, treatment and rehabilitation services • Promotion of convergence with line departments • Child labour: • Identification of child labour, motivating parents and admitting them in bridge course camps

32. Activities of Mandal Samakhya Higher Education: • Providing education loans to members children • Partnership with corporate colleges – professional courses like engineering, medicine etc Gender: • Fighting against all forms of violence on women, HIV-aids, Jogini systems, women trafficking, child marriages, anti arrack, support to young widows and sex workers Enables VOs to access all Govt Programs at village level • Convergence with line departments, financial and non-financial institutions

34. ZS General Body ZS Manager ZS Accountants Computer Operators ZS ExecutiveCommittee President Vice President Secretary Joint Secretary Treasurer Functional Committees NREGS Monitoring Committee Ms Monitoring Committee Monitoring the issues of POP committee Bank Linkage Committee Asset Verification Committee Social Issues Committee Legal frame work ZSs will be registered as confederation of MSs under APMACs Act - 1995 Structure of Zilla Samakhya

35. Activities of Zilla Samakhya • Promotion of MSs: • Promotion of mainstream MSs and Exclusive MSs for vulnerable communities viz., Persons with disability, tribals, Chenchu, fishermen • Formulation of policies that promotes self-management and financial sustainability of CBOs • Capacity building of SHGs, VOs and MSs through CRP strategy • Monitoring of the performance of MSs • Training the mandal level CBO staff & leaders • Conducting Audit of MS books of accounts • Formed 158 exclusive MSs till now & trained 11,496 Community resource persons

37. Activities of Zilla Samakhya • Promotes Livelihood activities of the poor: • Land Purchase & Access to Land: • Identification of land issues of the poor & development of data base of physical inventory of lands at land cell • Working partnership with Revenue Department/LSAs, law colleges & institutions • Capacity building of CBOs through Land CRPs • There are 21 Legal Coordinators, 15 Land Managers, 403 paralegals and 540 Community surveyors • 4,795 POP & Poor purchased 4,474 acres costing Rs. 2,897.23 lakhs • So far 1.8 lakh poor persons land issues were identified and out of it 1.05 lakh poor persons land issues are resolved - 66,744 acres of land

38. Activities of Zilla Samakhya • Promotes Livelihood activities of the poor: • Jobs for Youth: • Collection ofeducated un-employed youth data and establishment of data base at ZS level through Job resource persons • Market scan for jobs, skills upgradation and placement services in partnership with private sector • 1,12,436 unemployed youth trained and placed in jobs in private sector Rs.120.0 cores • Major partners: G-4 Securitas, Dr Reddy’s Foundation, Team Lease, Reliance • Mentors/Employers: McDonald, Dell, Microsoft, Pizza Hut, Bajaj, Tata companies, Wipro, etc • Incomes: Districts – Rs.20,000 p.a. upwards • Metros - Rs.36,000 p.a upwards • Sectors: Services, security, IT, transport, agri-business, construction and textiles areas

40. Activities of Zilla Samakhya • Assists the MSs in dealing with social Security activities • Insurance: • Enrollment of beneficiaries through formation of village enrollment committees • Conducting gram sambas and finalizing the list • Establishment of call centers at ZS level, computerization of data and registration of claims at ZS level • Capacity building of CBOs through Bhima Mitras • Appointment of case managers in hospital for health insurance scheme • Collected premium of Rs. 15.37 crs and covered 27.97 lakh families under Community managed death and disability insurance • Enrolled about 38 lakh individual under Aam Aadhmi Bhima Yojana through CBOs • 82,422 families paid a premium of Rs. 3.01 crs and enrolled under health insurance scheme • Cattle insurance – in one ZS – 60,000 members enrolled

43. OPERATIONAL & FINANCIAL SUSTAINABILITY OF VOKatarupalli Village Gandlapenta Mandal, Anantapur District

44. OPERATIONAL & FINANCIAL SUSTAINABILITY OF MANDAL SAMAKHYAGandlapenta Mandal, Anantapur District Note: Income to MS implies the interest margin (6%) earned on Seed Capital Loan from VOs

45. Holistic Approach to Poverty Eradication • Comprenhesive food security : Covering 18 lakh families • Bank linkages:Rs.3063 crs in 2006/07 • Livelihood promotion Agri, dairy, Jobs • Social issues : Gender, H&N, Disability & Education • Land access & development • Accessing all anti-poverty programmes : housing, Pensions, NREGS

46. Key Strategies Adopted for Sustainability of CBOs • Community to community approach • Mechanism for continuous capacity building & facilitation support • Selection and Positioning of staff from local communities & their management by CBOs • Adopting principle of susidiarity • Autonomy & independence at every level • Interest spread at every level • Self-management & self-monitoring mechanisms

47. Key impacts Outreach • Programme present in every village • 90% of rural poor households organized • 87.5 lakhs women organised into 7.0 lakh S.H.Gs • 33,747 VOs, 1097 MSs and 22 Z.Ss formed • P.I.P – helps identification of poorest of poor in each village • Special efforts to ensure all are in groups • Special institutional structures for: vulnerable tribal communities, coastal fisher folk, persons with disability • Labelling of all S.H.Gs in the state: economic and social – to track targeting • Banks lending based on micro-credit planning

48. Key impacts Social capital development • 14,00,000 women leaders • 180,000 para-professionals working for S.H.Gs and V.Os • 12,000 community resource persons fuelling the social mobilisation process across the state • Intensive social mobilisation - strong institutions, and, champions from poor • C.R.Ps for scale up social mobilisation • Emergence of C.R.Ps from thematic areas

49. Key impacts Financial support to poor • CIF support to Mandal samakhyas • Project facilitated financial intermediation by federations – M.S – V.O – S.H.G – member • C.I.F (World bank project) and S.G.S.Y funds channeled to federations • Catalytic role of the fund: • Enable poorest of poor to get a sizeable loan and build their credit record • Innovate and develop new financial products: food security, marketing, health, education

50. Sustainability of the Federations • All 7.08 lakh SHGs are meeting their operational costs fully viz., meeting expenditure, bookkeepers honorarium and travel • Around 26% (9000) of Village organisations are meeting their operational costs fully viz., staff and meeting expenditure • Around 25% ( 257 MSs – Rs. 30,000/pm income) of MSs are meeting their operational costs fully • Around 21% (240 MSs – Rs. 20-30,000/pm income) of MSs are meeting their operational costs partially