Economic Empowerment Program
Aim: To bring villagers (primarily women) together, giving them the opportunity to access external finance to support a variety of productive activities or consumption needs.
Need: Increased capital for the SHGs, so that they do not have to revert to money lenders.
Our response: Economic empowerment at Seva Mandir is initiated through two conduits.
1. Self-help Groups
Self-help groups (SHGs) bring women together in savings and credit activities, eventually giving them the opportunity to access external finance to support a variety of productive activities or consumption needs.
2. Income-generation activities
The core work in promoting IGAs entails identifying suitable individuals and groups, providing the requisite training, linking with support institutions, and providing hand-holding support to ensure the success of these interventions. Two of the premiere income generation activities include
a) Ornamental fisheries project
Fishes kept in the aquariums for aesthetic purpose is called ornamental fisheries. The demand for such fishes has been continuously rising in the cities of Rajasthan. After discussions with the SHG women it was started in 2006 in a village called Kaya (20 Kms from Udaipur). 13 women showed interest in this activity and thus 13 ponds were constructed in the fields of these women in order to carry out this activity.
b) Soy processing micro enterprise
The steady rise of hotels and outside tourists has been continuously rising in Udaipur. With this intention in mind Seva Mandir in association with Yes Bank, Malnutrition matters Inc. and United Nations World development marketplace started a soy processing micro enterprise in Kaya village.
This food processing system operates manually without electricity. It creates products from cereals (soy), grains etc. It thus enables communities to increase food security, improve health and generate employment.
Current Situation:
Self Help Groups-
At present there are 493 SHGs with a membership of 7516. The records of these SHGs are maintained by 152 accountants. Till date accounts of 489 SHGs has been computerized.
The net owned fund of SHGs till September 10 is Rs. 1, 73, 08, 217. The total savings stands at Rs. 1, 38, 54, 243, cash at bank Rs. 44, 16, 187, cash in hand Rs. 8, 28, 853 and the loan outstanding Rs. 1, 24, 08, 863. The savings to loan ratio is almost 1:1 which indicates that members are rotating all their savings for credit
Impact:
The performance of SHGs on the basis of five main indicators – meeting regularity, savings regularity, attendance regularity, interest repayment, safe portfolio shows that Urban block outperforms other blocks in all indicators. Interest repayment rate is 100% in all blocks except in Jhadol and portfolio at risk is very high in all the tribal blocks especially in Kherwara and Jhadol.
After the audit in March 2010, for the first time, during April – June 10, profit distribution was done in all the SHGs. For this initially the criteria for profit distribution was discussed with the groups and it was decided that since it was being done for the first time, it should be based on total savings of members. The members received a profit of Rs. 23, 85, 169 from their SHGs.
The process of profit distribution has greatly contributed in strengthening SHGs by making them realize importance of financial discipline and increasing SHGs funds. 64 SHGs have raised their savings and 65 SHGs have raised their accountant’s honorarium.
Future Challenges:
Tackling the problems of lack of sufficient capital, and also the high percentage of cash in hand held by the SHGs.
Current Situation:
2. Income-generation activities-
a) Ornamental fisheries project
- We recently conducted a study on the present and past status of this project with the help of Mr. Mattias (a Norwegian intern).
- An exposure visit to Dr. A. K Jain’s farm (a Fisheries entrepreneur) was conducted in order to better understand its technical aspects.
- A 6 day training will be provided to these women on business viability, efficient use of natural resources, technical aspects of fisheries in the month of March.
b) Soya processing micro enterprise
- Flavored soya milk and Tofu is supplied to major customers like corporate hospital (GBH American), Five-star hotels (Trident), Seva Mandir training center and staff
- Planning to start with schools (CPS & Vidhya Bhavan)
Impact
a) Ornamental fisheries
Women are now able to negotiate the prices for their fishes in a better way. They are able to earn a good side income through this activity without investing any significant amount of time.
b) Soya micro-enterprises
- 500 liters of Soya milk and 105 kg of tofu supplied to big hotels and hospitals.
- This has helped in providing full time employment opportunity to two youths from the village.
- It is observed that after providing Soya milk to SM Children’s camp, children get less sick and improvements in their height and weight are visible
- Urja tofu is currently sold at 100 rupees / kg, which is considerably lower than the typical price of paneer, which is the closest substitute. Due to its high nutritional value and low price, Seva Mandir expects that the product will be attractive to many businesses and individuals.
Future Challenges:
a) Ornamental fisheries
Since the ponds are built in open fields, the reptiles pose a significant threat to these fishes. Lacks of technical know how is a major challenge.
b) Soya micro enterprises
The primary challenge lying ahead is to create more awareness on the product and establish consistent buyers for the product. For this various options like opening a stall in old city, tie ups with hotels, gyms, home stays, residential schools, training institutes etc. will be explored in the coming months.