FOR PRIVATE CIRCULATION ONLY

Volume-17

Communicate Minds
FORTNIGHTLY

15 July 2005

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

MICRO- FINANCE AS A BOOSTER FOR DEVELOPMENT

The concept of micro-finance came into NABARD encouraged income generating existence as the most viable and effective activities by directly funding the micromeans to eradicate poverty from the society. enterprises by the SHGs in a very large scale, The available resource of the marginalized so more so for the artisans, traditional section is effectively mobilised to make a craftsmen and other segments/ small scale capital base at the grass-root level. It is now industries. Non-Government Organizations identified as a priority sector by the (NGOs) played a role of carrier of the concept Government of India. As such, the Union further both for the government and Finance Minister Mr. P. Chidambaram has NABARD. At present the formal financing allocated Rs. 200 crores in the recent budget institutions including the private banking to provide equity support to upcoming micro- sector are directed to invest in priority sector finance institutions. This action justifies the lending in which micro-finance to self help importance of micro-finance as resource group is considered the most important. mobilisation Regional activities. R u r a l Its an effort B a n k s The print media has a responsible role to propagate to reach out (RRB) developmental news in the larger inetrest of the society. a n d emerged mobilise Unfortunitely there is a slip noticed in an Oriya daily as the resources Odisha Bhasker on its July 20th issue under caption f r o n t for those runner out Runa Lagai Swechchha Sebi Sangathan Malamal who are of the published on page-4, wherein a biased view is placed. untouchable absence of Instead of delegating its social responsibility properly, by the p r o p o o r the coverage reflected a poor taste of journalism. Most f o r m a l attitude in probably the concerned reporter and the editor lacked financing the-then the basic idea on Micro Finance, that is why such a half institutions prevailing cooked story was served to the readers. It would have to cater their banking been better if the micro finance institution or related financial system. n e e d s , authority where consulted before writing the story. Bharat which are Integrated overlooked by them. To promote micro-finance Social Welfare Agency (BISWA) as a lead in the national scenario, there are mainly three NGO in the region is one of the main models being used: Self Help Groups (SHG), promoters of SHG movement. There are Joint Livelihood Groups (JLG) and Individual 5622 SHGs formed and promoted by Financing. Incidentally the SHG model has BISWA, wherein 75213 members are become a success and thus is widely accepted involved directly. Incidentally 98.5% of the across the country. members are women, which is an National Bank for Agriculture and achievement in any yardstick. A sum Rural Development (NABARD) took the first exceeding rupees 2 crores is mobilised as initiative in promoting Self Help Groups in savings of these members, which is safely Orissa simultaneously with the community deposited in the bank accounts of respective promoting the muthia chaula (a handful of SHGs. BISWA has extended an investment rice). The State government took initiative to to the tune of rupees 9 crores to the formed promote SHGs on a priority basis and created SHGs. This fund is optimally utilised to Mission Shakti. which was a turning point. promote advanced agri-horticulture, animal

In this Issue...
* Editorial * Micro finance as booster for develop ment. * Achievent of JBY * Participation in Consultative Meeting of FVTF * Other BISWA News

JAUNDICED VIEW

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

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15 JULY
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EDITORIAL
evelopmental programme is the order of the day for a region like ours, which is undeveloped in any scale. It is a collective responsibility of the society to pave way for such noble work. Without such a proper direction to the society, the present scenario may not change. Development could be a vision of the Government which may not materialize without help from all concern. Since there is a void in promulgating government programmes, so the role of NGOs is very much in demand these days. The role of NGOs has become so inevitable that there could be no alternative to it if the society vibes for its development. The Press, as identified as the fourth pillar of the democracy, cant shoulder off its responsibility and behave callously in this matter. The Press has a right to criticize, but the criticism should be in a constructive way to yield desired result. If one goes to criticize for the sake of criticism, it may go futile without any result. It is expected from a responsible Press to conserve its utility and utilize it for the good of the society. It is always better to support a right cause. So also expected that the Press and the NGOs sector should try to compliment each other, rather than confrontation.

husbandry, petty business, handicrafts, micro-enterprises, house building and meeting their household and daily needs. In promoting micro-enterprises, under the scheme, BISWA extends necessary training to the entrepreneurs and establishes backward and forward linkages for necessary finance and marketing of the produce. As a result of it, BISWA enjoys the credit in successfully providing self employment to 4259 entrepreneurs and employment to 596 wage earners along with creation of indirect employment opportunities for a population of 16693 in the rural sector. The credit activities of BISWA are regulated by a well defined lending policy. The finance for on-lending to the SHGs is made available from formal financing institutions at legally permitted rates of interest and is extended at rates of interest as permitted by law. As the buildingblock of the SHG/ Micro finance concept, the groups are encouraged for thrift and savings. The functioning of the SHGs are monitored for a period of six months and provided credit only after their proper gradation. It is needless to say that the group saving is safely deposited in the banks. Basing on the saving amount the groups can avail a loan as per the requirement. The loan attracts an interest @ 1.5% per month or 18% per annum as restricted by Rashtriya Mahila Kosh on reducing balance basis and is delivered at their doorsteps. BISWA encourages these groups to save to develop thrift among them but nowhere utilizes the saved amount. Unfortunately some people look upon it as a Mahajani Karobar by NGOs, which is a myth, of course. As the funding agencies such as CARE India (Orissa), Friends of WWB India, Rashtriya Mahila Kosh, The Bridge Foundation, State Bank of India, Bolangir Anchalik Gramya Bank, United Bank of India, ICICI Bank Ltd, ABN AMRO Bank, NABARD and other stakeholders provide funds to BISWA for the scheme as per the guidelines laid down by the Reserve Bank of India and the Ministry of Finance. BISWA acknowledges its gratitude for the generosity. In a nutshell, micro finance could be described as pro-poor financing activity that leads to boost pro-development schemes.

Achievement of Janashree Bima Yojna (JBY)

BISWA was appointed as the corporate agent for Life Insurance Corporation of India (LICI) on November, 15 2003. Since then it has been giving life insurance cover for the SHG members. It has been promoted and assisted by its external credits. It has insured 3356 lives till date and has expedited settling death claims of 7 insured members. Janashree Bima Yojana (JBY) is a group insurance scheme launched on 10.08.2000 by the Corporation for the benefit of the poor and disadvantaged people. In case of normal death, the nominee gets the assured sum of Rs. 20,000/- and in case of accidental death, or upon becoming fully handicapped, the nominee gets an amount of Rs. 50,000/* JBY (LIC) deposits and enrolment of fresh members during May 25th to June 25th, 05 is 294 members * Total claim settled during the period May 25th to June 25th, 2005 is 7 member * Total number of scholarship application for academic session 2005-06 is 68 scholar * Individual policy covered during the period May 25th to June 25th, 2005 is 91 members

TA B U L A R R E P R E S E N TAT I O N Renewal & Fresh Scheme of LIC

Name of the Block Dhankauda Maneswar Jamankira Rairakhol 20 Bamra Jujomura Naktideul Nill Sambalpur (M) TOTAL Renewed 71 92 Nill Fresh Nill 87 2 18 Nill 11 Nill 30 30

Block wise JBY deposits in the district.

Name of the Blocks Dhankauda Maneswar Rengali Jamankira Rairakhol member Bamra Jujomura Naktideul member Sambalpur (M) TOTAL Fresh 15 member 16 member 27 member Nill 10 11member Nill 10 20 member 109 members

JBY position in other districts

Name of the Districts Bargarh Sonepur Deogarh Jharsuguda Boudh Balangir TOTAL Members 1400 members 309 members 70 members 61 members 60 members 14 members 4892 members

Nill 39

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Participation in Consultative Meeting of FVTF, Bangalore

Functional Vocational Training Forum organised one consultative meeting at Ranchi on 24th and 25th June 2005. The venue was at the Social Development Center, Ranchi. This two-days programme was conducted by Mr. Joseph of FVTF, assisted by the consultant of FVTF Ms. Geeta Sinha. 13 participants from various parts of Orissa, West Bengal, Uttaranchal and Jharkhand attended the meeting which was actually a process for identifying consultants for the FVTF for various regions. Mr. Joseph sensitized the participants regarding their organisations, the purpose of the meeting. And in a series of group activities; the participants cooperated in the endeavour to identify potential consultants. Sri Arvind Mahapatra, on behalf of BISWA, participated in the programme.

3rd CARE-PINGO MEET

CARE-PNGO Orissa organized a 3 days CASHE partners meet from 28th to 30th June at hotel Toshali Sand Resort, Puri. The main objective of this meet was to review the performance of all the partners. The review was conducted in two ways i.e. activity and financial. The main focus was on sustainability of Micro Finance programme of each organization. Mr. Nilotpal, representative from M-Crill, conducted the financial review and the projection of cash flow statement was made by each organization for next six months, emphasizing on sustainability. The CEO and one key microfinance person from each partner organisation attended the meet. Mr. Khirod Chandra Malick, Chairman BISWA and Mr Ashish Kumar Sahu, Project Officer mF attended the above meet and added their valuable suggestions to solve problems.Other stakeholders like ICICI Bank Ltd., HLL, NABARD and ICICI-Lombard also participated in the meet to explain about their products and described how to incorporate all these in the field of micro-finance.

CASE STUDY Mrs. Subhasini Sasni

Mrs Mr s. Subhasini Sasni
BISWA SHG Khandam Gr.No.01

Mrs. Subhasini Sasni born in paternal property. Similar to his of Rs.1000/-from group. Out of a poor Brahmin family in the father-in-law he also worked as this loan amount she started a village of Athamallik under a Pujari (Lord Worshiper) in the small grocery shop at her Angul district, is the eldest local temple. The land yields house. There was an average among thee sisters and two only a single crop each year as sale of Rs.60/- to Rs.100/- per brothers. Her father own it depends upon monsoon only day and she earned a profit of owned 3 acres of land in which without any available irrigation Rs.30/- out of it. Her personal they cultivate rice. Her father facility. So he has to support his income was around Rs.900/also worked as Pujari (Lord family with what so ever he per month. She started Worshiper) in the local temple. earns from the local temple. supporting her husband in It was difficult to maintain a Mrs.Subhasini Sasni has maintaining the family with her large family with such a planed her family as she knew income. Gradually she was meager income. The poverty the demerits of a large family. able to repay her loan along made difficult for him to So they have two children, a with interest in six months. She provide good education to his son and a daughter. Her had a plan to extend her children. So after their business with availing formal education in the Name of the SHG: BISWA SHG Khandam Gr.No.01 more loans and her local primary school Name of the member: - Mrs. Subhasini Sasni husband agreed with they were deprived her. She also has an Age: - 32 years,Number of Children:- 02 further education, what ambitious plan for her Category: - General to talk about higher children to provide Block: - Rairakhol, District: - Sambalpur education for them. them higher education, which was Being the eldest among participation in an SHG group deprived. As her personal the children Subhasini got begins during August2003, married at a younger age and when she came to know about observation she confessed as went to Khandam, the native its merits. She joined a group, being immensely benefited village of her in-laws. Situated identified as BISWA-SHG- from her SHGs. It not only made in Rairakhol block, the village Khandam Gr.No.01, on dt. 18- her financially sound but also developing her is surrounded with dense forest. 09-2003. And since then she helped personality. She is thankful to started thrift saving and Staying separated form the SHG system for showing her a joint family, her unit family owns attending their group meetings. 2 acres of land, which is When her saving swelled up to way to become self sustainable inherited by her husband as a Rs.380/- , she took her first loan and independent.

15 JULY
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TRAINING ON FUNDAMENTALS OF ACCOUNTING FOR MFIs

A four days training programme on Fundamentals of Accounting for MFIs was conducted by FWWBI, India from 12th to 15th July 2005 at Hotel Swasti Plaza, Bhubaneswar. It was organized for the FWWBI partner organisations in Orissa & West-Bengal. Mr.Asish Ku. Sahu project officer micro finance and Mr. Subal Ku. Sahu district coordinator -Bargarh represented BISWA in the programme. After attending the programme and course successfully, they were awarded with certificates. The training session was conducted by three experts from CGAP & EDA Rural Systems Pvt Ltd.

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NATIONAL WORKSHOP CUM TRAINING PROGRAMME ON ORGANIC FARMING A national level workshop cum training programme on organic farming was organized from July 9th to 14th, 2005 by Agragamee, Kashipur, in Rayagada district, which was supported by Sanjojana, Bhubaneswar. Mr.D.Padhy Programme Director inaugurated the training programme & Mrs. Bidya Das graced the occasion as the chief guest. Mr.Bikash Chaddha, Chief Consultant, SATAVIK FARMS, Hyderabad was the resources person in this workshop. Forty two participant from various organisations participated in the workshop. The main objective of this training programme was to promote organic farming, particularly in hills and upland agriculture. The programme emphasized on the benefits of organic farming. It was explained that with organic farming there will be no environment pollution, the quality of food will be enhanced, soil health will be more sound, soil and water conservation will be more cost effective. It will usher biodiversity in the farm and minimize the use of chemicals as pesticide or fertilizer. It will help in sustainable hills and upland agriculture, reducing soil erosion, soil and water conservation in farms. In such a system the cover crops act as a mulch and use of organic materials to cover and improve the soil fertility. In organic farming Panchagavya is an age-old liquid manure, being used since Vedic era. It benefits in better flowering, quality product, keeping quality and better rooting etc. As an organic agent compost manures provide balanced and varied nutrition; improve soil health and also beneficial to microorganism. In organic farming the pest and disease management is done by using botanical pesticides such as Neem cake, Neem leaves, cow urine, leaves and cow urine, spices and cow urine, garlic and cow urine, garlic- ginger and chillies. The participants were largely benefited in this programme by getting some inputs in awareness towards organic farming.

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PRINTED MA TTER MATTER

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

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