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CHAPTER 3

MAHILA ARTHIK VIKAS MAHAMANDAL (MAVIM)

3.1. INTRODUCTION

-Employed Women

mediating body between the self-employed poor women and the financial

institutions. This calls for the setting up of organisations like MAVIM as their

focus is on working at the grass root level for poor women. They are in a better

position than banks to understand the characteristics of local markets and clients

due to their intimate functioning with poor women. Such organisations can serve

an important influence on the access of financial services to low income group

exposure to external shocks and can also help to ease out their cash flows.

MAVIM, The Women Economic Development Corporation was founded on 25th

February 1975 with the aim of encouraging women to be financially independent

and self-reliant. Initially, it functioned through seven regional offices in Pune,

Aurangabad, Nashik, Amravati, Nagpur, Thane and Mumbai. During that period

its activities were mainly confined to introducing a few commercial schemes for

women. During the period from 1994 to 2002 an important programme, the

Maharashtra Rural Credit Programme (MRCP) was implemented. The

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Maharashtra Rural Credit Programme is a poverty alleviation programme

supported by the International Fund for Agricultural Development

After careful study of the programme, its usefulness and success, the Board of

Directors of MAVIM took a bold decision in September 2001 that MAVIM

empowerment programmes based on self-help groups. Considering the expertise

acquired by MAVIM in the area of SHG formation, MAVIM was given

recognition as the apex b

Maharashtra by its Resolution No: MAVIM -20m/lalka-la, dated January 20,

2003. MAVIM established its offices in all the districts of the State and expanded

y starting self-help groups through various

national and state level programmes in all districts of the State. MAVIM has been

declared as a Nodal agency by Government of Maharashtra on 20th January 2003

to implement various Women Empowerment Programmes through Self Help

Groups (SHGs). The head quarter of MAVIM is based in Mumbai. MAVIM has

offices in every district of Maharashtra to implement developmental schemes for

women in rural areas.

From 1975 to 1994 MAVIM was implementing programmes directed towards

promotion of self-employment among women with a view to ensuring their

economic development.

From 1993 to 2002, the Corporation implemented the Maharashtra Rural Credit

Programme (MRCP) through the medium of Self-Help Groups (SHGs). This

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proved to be a significant milestone in the Corporation s experience, which led to

the need for expanding a movement for women's empowerment through the

effective medium of Self Help Groups. The reorganisation of MAVIM emerged

from this process.

3.2 SALIENT FEATURES OF THE REORGANISATION OF MAVIM

The Corporation was re-organised according to GR No: MAVIM -2001/1O/ka-10

WCD Dept., dated 20.01.2003. This decision has historical significance as it has

brought an intrinsic difference in the functioning of MAVIM. Following decisions

were taken after the reorganisation of MAVIM

1. It was decided that MAVIM should close down all trading activities and take

up only those connected with women's development.

2. MAVIM was declared as the 'apex body' for undertaking varied activities for

women's development like initiating self-help groups, diverse training

programmes for women, forging market linkages and other related support

services for women's products etc.

3. It was decided that all departments of Government would design their

programmes to benefit self-help groups and hand over the programmes to

MAVIM for implementation. These Departments would make available

funds to the tune of `10,000/- per self help group for three years for the

development of SHGs. The Social Justice Department had made a provision

of ` 20.25 crores for three years and entrusted MAVIM with the task of

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building 20,250 savings groups.

4. The district-wise expansion of MAVIM was approved and 246 posts were

sanctioned for the head office and the district offices together.

5. It was also decided that from 2002-2003 MAVIM would be given an

administrative grant of up to one crore of rupees per year according to its

needs.

6. A decision was also taken to make available to MAVIM share capital

according to its needs.

The Board of Directors of MAVIM was expanded to include the secretaries or the

representatives of the Secretaries of the Planning, Rural Development, Social

Justice and Tribal Development Departments, as ex-officio Directors (MAVIM

Performance Report 2000-2003).

3.3 OBJECTIVES OF MAVIM

The present section discusses objectives of MAVIM which are as follows:

1. Building confidence in women

2. To build up capacities of women

3. Strengthening entrepreneurship among women

4. Building linkages between employment opportunities and market

possibilities

5. Increasing participation of women in education and in governance

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As can be seen from above, the objectives of MAVIM are self

explanatory. The focus of the programmes of the MAVIM is to build up

confidence in the poor women by developing supportive systems through

collective strengths. One of such mechanisms is formation of SHGs.

MAVIM undertakes SHG Concept Trainings. The second objective aims

at building capacities of the women through programmes in accountancy

training. It has been found that the women workers are forced to accept

exploitative conditions. Further, there is no livelihood security for them. In

view of this, MAVIM aims to develop entrepreneurship among such

women. This can be a step further towards women empowerment.

for livelihood opportunities available in the market. MAVIM also aims to

impart education to women in sanitation, hygiene and nutrition. And

finally, MAVIM also attempts to develop governance skills in women

through leadership training programmes and Panchayat Raj Institutions

(PRI) progrmmes giving information about the functioning of Panchayats.

3.4 FUNCTIONING

The present section throws light on the broad perspective of functioning of

MAVIM. The main functions of MAVIM are as follows:-

1. MAVIM functions as an apex body for various development schemes

promoted by the Central govt. and State govt. The major progrmmes initiated

by the Central govt. are Swarna Jayanti Gram Swarozgar Yojana (SGSY),

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Rashtriya Sam Vikas Yojana (RSY), Swayamsiddha Programme and the state

govt. has launched the Special Component Plan (SCP), Tejaswini Maharashtra

Rural Women Empowerment Programme and Maharashtra Rural Credit

Programme.

2. MAVIM organises training programmes on issues of wome s development

along the following lines:

a. Training in capacity building

b. Skills training and vocational training (based on agricultural and non-

agricultural activities)

3. It functions as a coordinating agency between the self-help groups, financial

institutions, voluntary organisations and the concerned government

departments.

3.5 ORGANISATIONAL STRUCTURE AND OUTREACH OF MAVIM

This section discusses the organisational structure of MAVIM. The Mahila Arthik

Vikas Mahamandal (MAVIM) has been registered under the Companies Act of

1956, and it has 34 district o

head office is situated in Mumbai and is headed by an officer from the Indian

Administrative Services (IAS) who is appointed as the Managing Director. The

Board of Directors of MAVIM comprises of members from government

departments as well as non-officials. The Chairperson of MAVIM is a non-

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3.5.1 STRUCTURE OF MAVIM

The present section discusses the structure of MAVIM

3.5.1.1 APPOINTMENT OF GOVERNMENT MEMBERS TO THE

BOARD OF DIRECTORS

The present section discusses the appointment of government members to the

board of directors of MAVIM. In accordance with GR No: MAVIM-1099/102/Ka-

2, Women and Child Development Department, dated 6th

Feb, 1999, the following

TABLE 3.1 APPOINTMENT OF GOVERNMENT MEMBERS TO

THE BOARD OF DIRECTORS

No. Name Post

1 Chief Executive Officer, Maharashtra State Khadi &

Village Industries Board, Mumbai

Director

2 Industries Commissioner, Mumbai Director

3 Secretary, Women & Child Development Deptt. Director

4 Managing Director, MAVIM Director

5 Secretary of Planning Department Director

6 Secretary of Rural Development Deptt. Director

7 Secretary of Social Justice Deptt. Director

8 Secretary of Tribal Development Deptt. Director

Source MAVIM Performance Report 2000-2003

Considering the expanding work of MAVIM, officials of various departments were

appointed as directors of MAVIM, vide GR No: MAVIM/2001/1O/ka-l0, WCD,

Department, Mantralaya. By 2003, MAVIM had eight Directors from government

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departments and six Directors who are non officials (including the Chairperson who is

non-official). This structure has continued till date.

3.5.1.2 HEAD OFFICE STRUCTURE

The head office of MAVIM is situated in Mumbai. The structure of head office is

attached as Appendix - 1.

3.5.1.3 ADMINISTRATIVE STRUCTURE OF THE DISTRICT OFFICE

The present section examines the administrative structure of the district office of

MAVIM.

TABLE 3.2 ADMINISTRATIVE STRUCTURE OF THE

DISTRICT OFFICE

Posts Number of persons

District Coordinating Officer 1

Assistant District Coordinating and

Monitoring Officer

1

Assistant Monitoring Officer 1

Accounts Assistant 1

Accounts Assistant 1

Driver 1

Peon 1

Total 6

Source : MAVIM Performance Report 2000-2003

The above table clearly depicts the administrative structure of MAVIM. Each

district office has six employees. As MAVIM has its district offices in 34 districts

in Maharashtra, it has a total staff of 204 and head office which is located in

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Mumbai has a staff of 42 which makes a total staff strength of 246 for MAVIM

(MAVIM Performance Report 2000-2003).

3.5.2 OUTREACH OF MAVIM

The map of Maharashtra given in the present section shows the spread of MAVIM in

34 districts.

FIGURE 3.1 OUTREACH OF MAVIM

Source: MAVIM Website 2012

Initially MAVIM functioned through seven regional offices in Pune, Aurangabad,

Nashik, Amravati, Nagpur, Thane and Mumbai. During the period from 1994 to

2002 an important programme, the Maharashtra Rural Credit Programme

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(MRCP) was implemented by MAVIM in 12 districts of Maharashtra, namely

Chandrapur, Yavatmal, Nanded, Pune, Amravati, Bhandara, Gadchiroli, Beed,

Dhule, Nandurbar, Jalgaon, and Thane. Since 2003, after the reorganisation,

MAVIM established its offices in all the districts of the State, namely

Chandrapur, Yavatmal, Nanded, Pune, Amravati, Bhandara, Gadchiroli, Beed,

Dhule, Nandurbar, Jalgaon, Thane, Nagpur, Sindhudurga, Kolhapur, Ratnagiri,

Satara, Raigad, Latur, Ahmednagar, Osmanabad, Washim, Akola, Parbhani,

Jalna, Gondia, Buldhana, Aurangabad, Hingoli, Nashik, Raigad, Ratnagiri,

Solapur and Mumbai. MAVIM has launched Tejaswini Project in 2007 to

establish SHGs in 12,000 villages in Maharashtra.

3.6 MAVIM AND SHGS

ed in 1994. Since then MAVIM

has been highly proactive in the formation and promotion of SHG based progrmmes

in Maharashtra. The present section examines the main programmes of SHG

promotion adopted by MAVIM.

3.6.1 MAHARASHTRA RURAL CREDIT PROGRAMME

The Maharashtra Rural Credit Programme (MRCP) is a poverty alleviation

programme supported by the International Fund for Agricultural Development. In the

first phase, from 1994 onwards, the programme was implemented in the four districts

of Chandrapur, Yavatmal, Nanded and Pune. Thereafter, from 1998 onwards eight

districts namely Gadchiroli, Bhandara, Amravati, Jalgaon, Dhule, Thane, Seed and

Nandurbar were added while organising rural women into SHGs. MAVIM ensured

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that along with their economic development, the political and social developmental

needs of the women were also addressed and a strong sense of 'self' was inculcated in

the women. Up to March 2007, 4516 SHGs had been formed and 64,423 women

were organised together under this scheme. In this project at the end of March 2007

the women had savings of `10.51 crores and ` 39.56 crores of internal lending. The

groups had accessed bank loans to the tune of `25.82 crores and 36,549 women

started their own business. After the women were organised through the SHGs, it was

essential to make them self-reliant, impart vocational skill training, and make

available to them backward/forward linkages for markets. Various organisations like

M.C.E.D (Maharashtra Centre for Entrepreneurship Development), MITCON

(Maharashtra Industrial and Technical Consultancy Organisation) Commercial and

Rural banks, DRDA (District Rural Development Agency), the Animal Husbandry

department, NABARD, and the Rural Development Department were implementing

organisations in the programme. M.C.E.D has been a pioneer in espousing social and

economic entrepreneurship since 1988. It is a training institute in the core area of

entrepreneurship development. It works as a facilitator and guide for the creation and

cultivation of the entrepren - The

District Rural Development Agency is visualised as a specialised and a professional

agency capable of managing the anti-poverty programmes of the Ministry of Rural

Development on the one hand and to effectively relate these to the overall effort of

poverty eradication in the District. The DRDA is the principal organ at the district

level to manage and oversee the implementation of different anti-poverty programmes

of the Ministry of Rural Development. There were 10 agencies from varied fields that

came together as expert organisations. These were the MCED, MITCON, Banks, the

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DRDA, the animal husbandry, NABARD etc. which worked as a team to implement

the project.

3.6.1.1 FEDERATION OF SELF-HELP GROUPS

The idea of promoting SHG federations was suggested to the groups as a way of

ensuring the sustainability and continuity of the SHGs. Federations promoted by

MAVIM are designed as a two tier model. Even after the time-bound programme like

the MRCP came to a close in 2002, the groups constantly felt the need of guidance

from the Sahayoginis.

Though the savings groups had strengthened the economic aspect of their lives, the

women felt that the dynamic support of the Sahayoginis was necessary to meet their

other SHG developmental needs. Hence they were ready to contribute towards part

payment of the Sahayoginis honorarium in return for having their services. In the

initial stages, the members did not easily accept that all groups could not come

together at the village level nor did they agree to nominate an executive committee

and have a federation at the cluster level. A series of meetings of all group members

from the villages were consistently held at every district where the importance of

each level of the federation was explained to the women.

To create a viable alternative to the role played by the Sahayoginis at the village

level, it was decided to strengthen the groups and form a combined committee of all

such groups at the village level so as to undertake the tasks of village development

and other social activities. This in turn led to the efforts of creating a comprehensive,

stronger unit at the cluster level in the form of a 'Federation'. Following are the

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1. The structure of the federation should arise from the needs and motivation of the

women and the emergence of such a structure is a step towards empowerment of

the women.

2. Such structures should primarily address training needs and of establishing

forward linkages for the SHGs.

3. Federation of such self-help groups should function as informal, financial

institutions. It is essential that their progress up to this stage be carefully

monitored.

4. In Maharashtra, SHG federations can be established through the old groups

formed under the MRCP.

5. The motivating agency should not be a part of the management especially, the

financial management- of the SHG federation, so as to reduce the dependency on

the motivating agency.

MAVIM followed a two tier model of SHG Federation.

i) Village Level Committee (VLC)

All savings groups established in the village together formed one committee, with

two representatives from each group. This committee had to facilitate the

establishment and guidance of new savings groups in the village, take up village

development activities, recommend deserving proposals of the group to the cluster

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federation, etc.

ii) Cluster Level Federation (CLF)

It was decided that such a federation will be formed from a maximum of 30 groups

from 5 to 6 villages in a radius of 12 to 16 kms. area. A maximum of 500 SHG

members could make up one federation. Each savings group member paid ̀ 30/- per

year towards registration fees. These federations opened accounts in the bank and the

registration process of the federation was carried out. MAVIM is committed to and is

making efforts to extend financial support to the savings groups through the

federations. Such financial support could be from various government and semi-

government financial institutions. Village Development Committees and Federations

were established in the 12 districts where the MRCP was implemented.

TABLE 3.3 DISTRICT WISE DISTRIBUTION OF VLCS AND CLFS

Sr.

No.

District No. of

Established

VLC

No. of Groups

included in

VLC

No. of

Federations at

cluster level

1 Chandarpur 67 292 12

2 Yavatmal 97 218 17

3 Gadchiroli 49 363 12

4 Bhandara 70 575 11

5 Dhule 44 201 03

6 Nandurbar 37 176 06

7 Thane 21 1181 01

8 Beed 43 219 07

9 Nanded 71 423 11

10 Pune 61 322 09

11 Amravati 68 617 22

12 Jalgaon 64 340 07

TOTAL 692 4927 118

Source MAVIM Performance Report 2000-2003

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By March 2003, Village Development Committees were established in 692 villages,

comprising of 4,927 groups and 118 federations had been formed at the cluster level.

MAVIM believes that federation is the most important step in the developmental

process of the self-help groups. Irrespective of which scheme an SHG may have

originated under if it has to sustain on its own strength after a limited period of

external support, then the formation of a federation is ideal.

Over the period it was realised by MAVIM that women members in the federations

were unable to cope up with growing volume of financial work and needed

professional help for these transactions. On the lines of DHAN Foundation and

MYRADA, MAVIM also started working on the concept of Community Managed

Resource Center (CMRC) i.e. to promote peoples institutions as a step further in the

0).

3.6.2 TEJASWINI MAHARASHTRA RURAL WOMEN EMPOWERMENT

PROGRAMME

MAVIM implemented Tejaswini Maharashtra Rural Women Empowerment

Programme is implemented in 2007 in 33 rural districts of Maharashtra covering over

12,000 villages supporting over 65,000 SHGs. Tejaswini programme is assisted by the

International Fund for Agricultural Development (IFAD). The target group for

Tejaswini is poor rural women especially from the Scheduled Castes and Scheduled

Tribes, woman headed households, widows, deserted women, divorcees, landless

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laborers, HIV affected women etc. Tejaswini Programme focuses on the following

thrust areas:

Institution building at the grass root level

Microfinance Services

Livelihood and Micro Enterprise development

Women Empowerment

The project began from July 2007 onwards and the duration of the programme is up to

the year 2015. The overall goal of the Programme is to enable poor women to make

use of choices, spaces and opportunities in the economic, social and political spheres

for their improved well-being. The goal is sought to be achieved by: (a) creating

access to microfinance services; (c) creating new and improved livelihood

opportunities; and (d) providing access to functional education, labor-saving

infrastructure, and participation in local governance.

During the year of 2008-2009 implementation focused on the following areas:-

Strengthening the grass root institutions

Making the CMRCs (Block level federations of SHGs) functional

Skill enhancement amongst women

More credit flow for the eligible SHGs

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Strategic convergence with line departments

Gender integration across all the work components

Tejaswini programme has conducted the Annual Monitoring Survey for sample

households for the period of 2008-2009.

The Tajaswini programme is operating through the concept of CMRC. The concept of

CMRC (Community Managed Resource Center) consists of people owned institutions

formed and managed by people on their own to agenda. One CMRC covers 200 SHGs

of 25 to 30 villages covering 15 to 20 km diametrical area. The people owned

institution is envisaged as a three tier structure; the first and the founding tier is SHG,

the second tier is Village Level Committee (VLCs) and the third tier is CMRC.

VLC is a forum having representation of all SHGs in a village. One member from

each group is identified as a representative. VLC works to achieve coordination

among different groups to develop them as a collective.

CMRC has to organise progrmmes for creating awareness among SHGs about

livelihood issues and the need for livelihood development (Sangati 2010).

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TABLE 3.4 GROWTH OF COMMUNITY MANAGED

RESOURCE CENTERS (CMRCS)

Sr.No. Name of the District Total CMRC promoted

by MAVIM up to July-2011

1 Thane 7

2 Raigad 3

3 Ratnagiri 5

4 Sindhudurg 5

5 Pune 6

6 Solapur 7

7 Sangli 6

8 Kolhapur 6

9 Aurangabad 7

10 Nanded 6

11 Labur 7

12 Osmanabad 6

13 Beed 6

14 Parbhani 7

15 Jalna 7

16 Amravati 10

17 Yavatmal 10

18 Akola 6

19 Washim 11

20 Buldhana 8

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Sr.No. Name of the District Total CMRC promoted

by MAVIM up to July-2011

21 Nagpur 7

22 Wardha 6

23 Chandrapur 11

24 Gadchiroli 11

25 Bhandara 8

26 Gondia 7

27 Nashik 8

28 Ahmednagar 8

29 Dhule 6

30 Jalgaon 5

31 Nandurbar 12

32 Satara 7

33 Hingoli 4

Total 236

Source: MAVIM Head office-2013

The above table provides information about CMRCs promoted by MAVIM up to

July, 2011. It can be seen that CMRCs are promoted by MAVIM in 33 districts of

Maharashtra under the Tejaswini Maharashtra Rural Women Empowerment

Programme. Highest number of CMRCs i.e. 12 is established in Nadurbar. This is

followed by 11 CMRCs in Chandrapur and Gadchiroli and 10 each in Amravati and

Yavatmal. There were eight CMRCs each in Buldhana, Nashik and Ahmednagar.

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Thane, Aurangabad, Parbhani, Jalna, Nagpur, Gadchiroli, Solapur, Gondia and Satara

had seven CMRC each, followed by six each in Pune, Sangli, Kolhapur, Nanded,

Osmanabad, Beed, Akola, Wardha and Dhule. There were four CMRCs in Hingoli

and five each in Ratnagiri, Sindhudurg and Jalgaon. The least number of CMRCs i.e

three were established in Raigad. It can be seen that there were 236 CMRCs

promoted by MAVIM. In addition to them there were 79 SHGs which were promoted

by MAVIM through Resource NGOs. Tejaswini programme is providing the room to

associate with Resource NGOs which can help MAVIM as a trainer, facilitator in the

area of institution building and microfinance. Presently MAVIM has selected three

RNGOs i.e DHAN Foundation, Chaitanya, National Institute for Women's, Child and

Youth Development (NIWCYD) all over the state who will demonstrate in the

process of CMRC building and help MAVIM to build the capacities of their staff in

specialised way.

In all there were 315 CMRCs promoted by July 2011 out of which 191 were already

registered.

3.6.3 SWARNA JAYANTI GRAM SWAROZGAR YOJANA (SGSY)

The Swarna Jayanti Gram Swarozgar Yojana (SGSY) is a Central Government

Scheme implemented through the District Rural Development Agency under the

Rural Development Department with the aim of alleviating poverty was initiated in

1999 but MAVIM has implemented the scheme in 2001.

The scheme was being implemented in 31 rural districts of Maharashtra. At the end of

March 2007, 10413 SHG groups were formed and 1,15,8284 women were organised.

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By the end of March 2007 the women saved `13.64 crores and generated internal

lending of ` 35.15 crores under this project. The women also obtained `35.15 crores

of bank loans and 45405 women started their own business.

3.6.4 SPECIAL COMPONENT PLAN (SCP) RAMAI MAHILA

SHAKSHAMIKARAN YOJANA

Under the Special Component Plan, the Department of Social Justice of the State

Government assigned MAVIM with the programme of formation of 20,250 self-help

groups of Scheduled Castes i.e. 3, 03,750 women throughout Maharashtra to cover

5920 villages within four years. Through this programme, training programmes were

arranged on gender equality, gender sensitisation, women's empowerment, social

awareness, functional literacy, entrepreneurship and other related capacity-building

aspects. MAVIM has been appointed as an implementing agency of the scheme and

`20.25 crores were sanctioned for the project as per GR No. MAVIM 2001/4/ KA/10

WCD Department, dated 15.2.2003. The scheme is implemented in 33 districts

directly by MAVIM Sahayoginis and through NGOs appointed by MAVIM. At the

end of March 2007, 20950 SHG groups were formed and 2, 53,092 women were

organised. Under this programme `22.10 crores were saved by the women and `34.33

crores were generated as internal lending. SHG members obtained bank loans of

`16.89 crores. Under this project 56,190 women started their own business. This is an

ongoing programme of MAVIM.

3.6.5 RASHTRIYA SAM VIKAS YOJANA (RSY)

The Rashtriya Sam Vikas Yojana of the Planning Commission was implemented in

the six districts viz. Gadchiroli, Bhandara, Nandurbar, Gondia, Dhule and

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Chandrapur. MAVIM had been entrusted the task of setting up 1000 SHGs in three

years (2003-2005) in each district. Components such as vocational training, revolving

fund, Management Information System (MIS) had been included in this programme.

It was also proposed that "MAVIM GHAR" should be built from this fund. At the

end of March 2007, 2213 SHG groups were formed and 27159 women were

organised in six districts. ` 1.99 crores were saved by SHGs and ` 3.29 crores were

given as internal lending. Under this project, 6479 women started their own business.

3.6.6 SWAYAMSIDDHA PROGRAME (2002-2007)

The Indira Mahila Yojana was implemented by the Central Government from 1994.

The Mahila Samruddhi Programme was merged with it and a revised Swayamsiddha

Programme was declared for implementation for five years from 2001 2002 onwards.

To implement the Swayamsiddha Programme

MAVIM was declared as the

Programme Implementation Agency (PIA) .The Women & Child Development

Department, Mantralaya, has declared MAVIM as the Apex Body for the same.

MAVIM implements the Swayamsiddha Programme in 19 districts and 36 Blocks in

Maharashtra. Out of 36 blocks, 21 blocks (old) of Indira Mahila Yojana and 15 new

blocks were selected. A target of forming 3,500 self-help groups by the end of 2006

was given in 19 districts where the programme operated.

Under this programme at the end of March 2007, 3943 SHG groups were formed and

50,066 women were organised. The SHG members saved ` 5.70 crores and generated

an internal lending of ` 10.31 crores. They obtained bank loans of `12.65 crores and

17,734 women started their own business.

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3.6.7 NABARD ADD-ON PROJECT (2003-2005)

Under this project, MAVIM was to form 1000 SHGs in 10 districts and 15,000

women were to be organised. MAVIM was to be given a promotion grant of `1,880/-

per SHG amounting to a total of `1, 88,000/- by NABARD.

The period of this project was of two years during which it was expected that the

emphasis will be primarily on establishing SHGs and making credit available to them.

As suggested by NABARD the 10 districts selected were Parbhani, Jalna, Washim

Latur, Beed, Hingoli, Nanded, Aurangabad Gondia and Kolhapur where the scheme

was implemented. At the end of March 2007, 1773 SHG groups were formed and

21263 women were organised. `2.85 crores were saved by the SHG members and

`5.39 crores were given as internal loans to members of the group. The women

obtained loans of `2.43 crores from banks. Under this project 4141 women started

their own business.

3.6.8 KRUSHI SAPTAK YOJANA (2003-2005)

The Krushi Saptak Yojana of the Agricultural Department was implemented by

MAVIM in 4 districts i.e. Washim, Nanded Parbhani and Sangli. Under this project

25 SHGs were to be formed in each of the above mentioned districts and 250 women

were to be organised. The training imparted was on Agricultural skills, Animal

husbandry, Dairy Development etc. The women trained in this field had to start

activities related to agriculture which would help them to earn their own income.

Qualified Sahayoginis have been appointed by MAVIM in order to train the SHG

women in agriculture related self employment activities. This scheme started in the

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year 2004-05. At the end of March 2007, 501 SHG groups were formed & 9441

women were organised. `49 Lakhs were saved and `1.02 crores were given as

internal lending. Bank loans of ` 44 Lakhs were obtained by women. Under this

project, 2628 women started their own business.

3.6.9 TRIBAL DEVELOPMENT PROJECT (TDP)

The Tribal Department sanctioned a Project to MAVIM to develop SHGs in eight

districts viz. Nasik, Nandurbar, Thane, Chandrapur, Gadchiroli, Gondia, Amrawati

and Yavatmal for the empowerment of Tribal Women. In this project 4600 SHGs are

to be formed within three years. The village survey and selection had been started in

eight rural districts. By March 2007, 2832 SHGs were formed and 33663 women

were organised. ` 41.58 crores were saved by women and ` 2.01crores was the

internal lending and ` 1.58 crores Bank Loan obtained by women. This is an ongoing

programme of MAVIM.

3.6.10 MINORITY WOMEN EMPOWERMENT PROGRAMME

In order to cater towards the problems of women from minority community and give

them proper handholding support, organize them together, train and motivate them to

become independent and self sufficient MAVIM had submitted a proposal to

Maharashtra State Minorities Commission, Mumbai and it is sanctioned by them.

Th

districts of Maharashtra i.e. Malegaon, Karanja, Bhiwandi, Nanded, Parbhani,

Aurangabad etc.

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MAVIM implements this programme through NGOs. One NGO is required to form

200 SHGs in Muslim pockets and these women are provided with basic trainings

input, functional literacy training programme, gender sensitisation awareness,

Entrepreneurship awareness programme, Entrepreneurship Development Programme

and village level committee etc. These activities lead to the empowerment of poor

women and they become self sufficient. The programme focuses on Grass root level

Institution Building, Women Empowerment and Social Equity, Women

Empowerment and Social Equity and Livelihood and Micro Enterprise Development.

3.6.11 OTHER INITIATIVES TAKEN BY MAVIM IN SHG MOVEMENT

SHG movement has spread to a wider scale in the state of Maharashtra from last

decade. However, the linkages of SHGs with banks, amount of bank loan by banks

and heavy interest charges on SHG loan are the key challenges before the movement.

Taking this into account, Government of Maharashtra has launched a scheme of

providing subsidised loan to women SHGs in the State (vide G.R. Number

NAVIM/2008/PK 130 /Desk 10 dated 8.10.2000). MAVIM has been declared as a

Nodal Agency to implement this scheme in the State. The scheme is applicable to the

non subsidised women SHGs formed by MAVIM and NABARD (under the schemes

sponsored by NABARD). The scheme is to promote the timely repayment habits

amongst the SHGs hence it does not provide upfront subsidy to SHGs. The SHGs

once linked to bank under this scheme needs to pay the bank loan (principal +

interest) every month and the interest subsidy up to 7% is debited in the SHG

accounts at interval of every six months. As per the design of the scheme the SHGs

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need to pay the interest at the rate of minimum 4% at least. Thus the interest subsidy

benefit is ultimately linked to the repayment performance by the SHGs which is a key

factor.

MAVIM has taken up steps to sensitise bankers over the issues such as increasing the

loan volume per SHG and as a result of this, State Bank of India has increased the

first dose of SHG linkage up to ` 50,000 second up to ` 1.00 lakh and third up to

`5.00 lakh which is a positive change at policy level. (Vide circular No. FRU/FM-

27/NGO MEETS/304 dated 19.03.2010).

3.6.12 GROWTH OF SHGs

Tables 3.5 and 3.6 give an account of the growth of SHGs promoted by MAVIM

TABLE 3.5 GROWTH OF SHGs UP TO OCTOBER 2012

Description Number

Total SHGs formed 65,901

Total SHG Members 8,63,076

Total SC Members 3,06,734 (36%)

Total ST Members 1,43,758 (17%)

Total No. of women who took internal Loan 6,90,577 (80%)

Total No. of women who could start IGA 38,572 (6%)

Source: MAVIM Head office, Mumbai 2013

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Table 3.5 depicts the growth of SHGs by October 2012. The total number of SHGs

formed by MAVIM were 65,901 with a total of 8, 63,076 membership. From the total

SHG members 3,06,734 (36%) were from schedule caste and 1,43,758 (17%) were

schedule tribe members. Total number of women who availed internal loan were 6,

90,577 i.e. (80%). Total number of women who started IGA was 38,572 i.e. (6%) of

the total SHG members.

TABLE 3.6 FINANCIAL GROWTH OF SHGs UP TO OCTOBER 2012

Description Amount in `

Per Head Saving (`) 2,235

Per Head internal Loan (`) 6,148

Total Saving of SHGs in (`) 192,88,11,512

Total internal Lending of SHGs in (`) 530,59,19,407

Total internal Lending Repayment in (`) 376,99,48,457

Source: MAVIM Head office, Mumbai 2013

The above table analyses the financial growth of SHGs promoted by MAVIM. The

total savings by October 2012 were `192,88,11,512. The per head savings was `2,235

and per head internal loan was `6,148. Total internal lendings of SHGs was

`530,59,19,407 and total internal lending repayment was `376,99,48,457.

3.7 MAVIM AND NON-SHG PROGRAMMES

The Mahila Swavalamban Nidhi and Mavim Mahila Prangan (MAVIM Ghar)

progrmmes are some of the initiatives taken by MAVIM as non-SHG based

programmes.

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3.7.1 MAHILA SWAVALAMBAN NIDHI (MSN)

The Mahila Swavalamban Nidhi - Fund was established under the Societies

Registration Act 1860 and the Co-operative & Trust Act vide No. F/19565 dated

11.6.1997. The financial institutions by and large do not extend loans to meet the

minor but essential credit needs of rural women. This situation is further compounded

by the fact that women cannot offer any appropriate guarantors for their loans. They

lack technical knowledge, and hence lack mobility, are overwhelmed by the perceived

burden of the loan and have to face a general apathy and lack of sensitivity on the part

of the bank officials. All these reasons converge to make it extremely difficult for

women to acquire loans from the established financial institutions.

The MSN is basically aimed at providing financial assistance easily and without too

many formalities to needy women. The rehabilitation of the women in the earthquake

area i.e. Latur and Osmanabad was done through the MSN scheme. A loan amount of

`1.40 crores were allotted through 280 SHG groups. `.0.86 crores was saved by

women and they generated ` 1.26 crores as internal lending through 6521 women.

3.7.2 MAVIM MAHILA PRANGAN (MAVIM GHAR)

MAVIM proposes to set up training-cum-production centers at the district level across

the state. These centers or MAVIM Ghar will work as residential training centers for

SHG members and also act as sales outlet for the items produced by them. MAVIM

Ghar thus will be an important step to provide backward and forward linkages for the

SHGs. The main target groups for this project are the economically weak, poor and

needy rural tribal and women laborers.

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3.8 FORMATION OF SHGs BY MAVIM IN MUMBAI

MAVIM started the formation of SHGs in Mumbai in the year 2003. The District

Coordinator supervises the overall functioning of SHG programme in Mumbai. His

office is located in Ghatkopar. Other than the office staff there are 12 social workers

Sahayoginis

of SHGs in Mumbai. The other staff includes one Assistant District Coordinating

Officer, one Monitoring Officer, two Accounts Assistants, one driver and one

peon.

The success of the entire programme mainly depends on the involvement of the

Sahayoginis who work at the grass root level with the women from the slums. They

act as liaisons between the Head Office and the SHG members. After their

appointment the Sahayoginis have to undergo rigorous training programmes. The

responsibilities of the Sahayoginis are given below:

Approaching the women in the slum areas to form SHGs

Conducting meetings with the women on regular basis

Informing the women about the benefits of SHGs

Informing the women about MAVIM

Helping the women in various documentation work in forming SHGs

Arranging various training programmes for the women after the formation of

SHGs

Helping the SHG members to open accounts with the banks

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Taking the bank officials to meet the members when the bank loan for the

group needs to be arranged

Arranging loans from NGOs like Rotary Club etc. for the SHGs

The social workers are allotted slum areas by the MAVIM office. They visit the

homes of women in slums and explain to them and their family members the

relevance of SHG formation. After initial few meetings, the groups comprising of 10

to 20 members are formed. Amongst the women the President, the Secretary and the

Treasurer are selected by consensus. Meetings in the locality are held at Bouddha

Vihars in the case of SHGs formed under the Ramai Mahila Sakshamikaran Rozgar

Yojana as it is a Special Component Programme catering especially to scheduled caste

the Minority Women Empowerment Programme (MWEP) started by MAVIM in 2006

to provide support to the women from minority community.

3.8.1 PROGRAMMES UNDERTAKEN BY MAVIM IN MUMBAI

SHG formation activity by MAVIM in Mumbai started in the year 2003 under the

following schemes:

1. Ramai Mahila Sakshamikaran Yojana (RMSY)

2. Swarna Jayanti Shahiri Rojgar Yojana (SJSRY)

3. Minority Women Empowerment Programme (MWEP)

By January 2007, around 300 SHGs were formed in Mumbai. By 2010 this number

increased to 450 in May, 2010. MAVIM has started the work of SHG formation to

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help poor and under privileged women in 52 slum localities spread over 14 wards in

Mumbai, From time to time these women members are given training on income

generating activities, social awareness, gender sensitization and functional literacy.

MAVIM also organises exhibitions for marketing the products of women members at

different places in Mumbai. In 2006, MAVIM started the formation of SHGs under

the Minority Women Empowerment Programme to provide economic support to the

women from minority community. The areas selected under the scheme are Govandi

(Chembur), Behrampada (Bandra) and Behrambaug (Jogeshwari).

MAVIM aims to build around 200 SHGs in these areas. Other than SHG formations,

various kinds of courses are also conducted by MAVIM for example, courses on

making of phenyl, washing powder, liquid Soap, chocolates, cakes, snacks, flowers

and jams. It also organises beautician

interested SHG members from time to time. Health Camps are also organised to

provide free checkups and make women aware about the vaccinations etc. (MAVIM

Sangati 2007).

3.9 SUMMARY

The present chapter discussed the establishment of MAVIM and its reorganisation as

a government body to promote SHG movement in Maharashtra. It functions through

the formation of SHGs, VLCs and the CMRC. MAVIM has made its presence felt in

34 districts of Maharashtra as a major government organisation to carry forward the

micro finance progarmme in the state. With the efforts of MAVIM, the awareness

levels of poor rural women in Maharashtra have increased and they are now

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considered as bankable clients.

Since 2003, MAVIM has also made an impact in the scenario of urban microfinance

by initiating its activities of SHG formation in the city of Mumbai. Though MAVIM

has been able to realise its goals, there are several challenges ahead. Maintaining

sustainability of SHG programme in Maharshtra is one of them. Convincing banks to

meet micro-credit is also a crucial task to be fulfilled by MAVIM. Building strong

network of partner NGO is also a complex task. Nevertheless, the challenges do not

undermine the achievements made by MAVIM in the poverty alleviation programme

which is not the ultimate goal of it but only a means to attain social mobilisation and

women empowerment.