CHAPTER - HV Institutional Support to Women Entrepreneurs in East Godavari District

We have so far discussed differknt personal aspects of select women

enh'e~reneur respondents in East Godavari district namely viz. Age, religion, caste

composition, educational qualifications, professional organisational membenhip,

previous experience in mnning business and industry, size of family, background of

business and induskial management, marital status, motivating factors, selection of

line of activity, purpose of establishing'the enterprise, duration of running the

existing enterprise, line of activity, owner's capital, borrowed capital, fixed capital,

working capital, total capital, sources of financing, types of business units, annual

average turnover, annual average profit, work force, marketing outlets, storage

facilities, participation of family members in running the enterprise, transport

facilities, participation in entrepreneurship development programme, participation

in exhibitions and fairs, assistance received from Government, Government

sponsored organisations, assistance received from voluntay organisations, sources

of pmrement of raw materials, sources of procurement of labour, assistance

received for conducting feasibility study of research, infrastrudural support from

Government and other institutions, change of line of activity, future plans of

modemisation, expansion and reorganisation, other interests (literary and cultural

activities etc.).

In the chapter that follows, chapter four, the various institutional supportive

measures that are available to women entrepreneurs are discussed.

INTRODUCTION:

Several deparhnents of Government of India as well as Government of

Andhm Pradesh and institutions/organisations/agencies sponsored by the Centrd

Government and State Govemment (i.e. Government of Andhra Pradesh) and

voluntary organisations functioning at NationaVState~egiona~i&ct/and local

levels launched up on a large number bf programmes/schemes of assistance and

provision of facilities, incentives and subsidies etc to the entrepreneurs in East

Godavari district, (the area chosen for a detailed study of the theme of this research

work). A fairly large number of programmes of assistancelsupport to entrepreneurs

are in fact available to several other entrepreneurs also in the state (i.e. Andhm

Pmdesh, and some throughout India). What is to be noted carefullv here is that

yen, few Drmmmes of suowrt are announced exclusivelv for women

entrepreneurs. Several of the institutional support prosrammes are meant for male

as well as women entrepreneurs, Whenever anv swcific or exclusive proarammes

of institutional support to women entrepreneurs are launched uwn, thev are

exDlained in detail in this chapter. It is only a brief account of the rest of the

programmes that is provided in this chapter. Apart from this, whenever details of

implementation of these programmes are available, they are provided in this

chapter, at relevant places. The researcher has provided all this wide information in

this chapter with a view to haw an idea of what a wide spectrum of supportive

measures that are available to the women entrepreneurs in East Godavari district,

for promotion, sustaining and development of these enterprises. It is another

matter that a fairly large number of women entrepreneurs in the district could not

actually avail these entire facilitie$ncentives etc due to various reasons/ problems

discussed in detail in chapter five "Problems" of this thesis. What is to be done to

enable the women entrepreneurs in the d i c t to reap maximum benefits from all

institutional supportive measures, more 'effectively, meaningfully, is d i i in

chapter six "condusions and suggestions" of thii thesis.

An earnest attempt has been made in this chapter to Dresent an outline of

t 'n D r i

gistrid and how for thev have taken advantaae .of the same. Due to v a r i o ~

reasons. several officials involved in the imolementation of these proQrammes of

institutional s u ~ w r t have not made available all the reauired data to the researcher

lconfidentialitv etc) .This serious paucity of data may have its own impact on the

quality of discussions on various matters included in this chapter. This is inevitable.

As suggested in a separate part of thii thesis (see "Limitations" and "Hints for

future researchers" in chapter two "Methodology of Research") more exhaustive

analysis of the institutional support can be provided by micro level studies that can

be taken up in future, in this regard.

NABARD and Self-Help Groups.

NABARD has introduced in 1992 a pilot project for linking banks with Self

Help Groups to encourage thrift and saving amongst the rural poor and to

supplement their credit needs through the Banking System. NABARD provides

100 per cent Refinance to Bank for their lending to self-help Groups under the

Pilot Project Scheme. The group size should preferably be between 10 and 20

members to enable effective individual participation in the Groups deliberations.

n e Group should preferably be formed in clusters for the convenience of

implementing and monitoring. The banks identify the groups and the areas based

on their experience. Commercial banks, regional rural banks and cooperative

banks* thmugh their ~~nce rned branch &ices provide credit in bulk diredly to the

groups, which in their turn under take do lending to their members. The groups

prepare simple credit plans for their members and the consolidated demand for

funds is presented to the concerned bank offices.

As an extension to the Pilot Project for linking bank with Self Help Groups,

IWBARD is extending refinance support to banks for providing credit support to

voluntary agencied NGOs, which act as financial intermediaries for meeting the

credit requirements of individuals or small groups which for one reason or the

other, are not formed in to Self Help Groups or where the NGOs require direct

support from NABARD. This scheme envisages provision of bulk IoansJo NGOs

by banks dully supported by NABARD refinance for on lending to the ruml poor

who would not otherwise be within the reach of the banking system. The object of

this scheme is to place larger amount of resources in to the hands of voluntary

organisations to meet the credit needs of the rural population. If the number of

loans is too large, banks often find it difficult to individually appraise, sanction,

monitor and recover loans due to their own man power and other constraints.

Hence this scheme proved to be vey useful in the matters of lending rural poor by

banks. NABARD charges an interest of 7 per cent per annum on the loans

sanctioned by it to banks under this scheme. Refinance is provided at 100 per cent

for the loan amounts disbursed to Self-Help Groups. The purpose for which the

Group will lend to its members will be decided by the group itself. As regards the

repayment of loans sanctioned to the banks by NABARD under this scheme,

normally a period of 3 to 10 years is allowed, depending upon the requirements of

each -. All commercial bank, Regional ruml banks and cooperative banks,

Primary Agricultural Credit Societies operating in the district are eligible to receive

refinance facilities under this scheme. The full detaii of the performance of Satf-

Help Groups in East Godavari d i i du+g the two years 1999-2000 to 2000-

2001 (up to 30-10-2001) are furnished in Table Number. 4.1 given below.

Table Number.4.1

Performance of Self Help Groups in East Godavari district during the two years period 1999-2001.

Source: Annual C d i t Plan 2080-2001 Andhra Bank, Lead Baok Office, Kakinada.

No. of Animators trained

No. of Bank Branches participated

No, of Groups assisted with RF and IRDP Subsidy No. of Groups which have availed second dose of finance from banks

As per the latest information made available by the Ruml Planning and

Credit Department, Reserve Bank of India, Central Office at Murnbai, there are

46,710 Self Help Groups with a membership of 6.072 lakhs in East Godavari

360

235

9116

2000

didrid (w on 10.1.2002). Among these, 7714 groups have been assisted with

Revolving Fund and IRDP subsidy and. 1985 groups have been assisted with

subsidy under SGSY scheme. The total amount of savings of the self-help Groups

in the d i i c t is reported to be Rs.49.67 crores. Ttw total amount of corpus fund of

the self-help Groups in the district is reported to be Rs.142.39 crores. 31.902 self

Help Groups are reported to be linked with banks under NABARD Refinance

scheme, in the first phase and 5451 groups in the second phase. A list of income

generation activities taken up by self-help Groups is provided below.

List of income generation activities taken up by Self-Help Groups

in East Godavari district.

NABARD and Small, Cottage, Tiny and Village Industries in the Rural

Non Farm Sector:

NABARD had conducted an extensive survey to identify the small, cottage,

village and tioy industries which have a great potential for development in future

which can be taken up by entrepreneurs in East Godavari district and broadly

classified all these indushies in to 22 groups.

Small service activities and NABARD in the -Rural Non Farm Sector:

Similarly, NABARD had identified a spectrum of small service activities in

the Rural Non Farm Sector in East Godavari district for which it had v~sualised a

bright future and which can be taken up by entrepreneurs.

Banking sector and Credit support to Entrepreneurship Development:

A fairly Qood account of the credit support extended to entrepreneurs in East

Godavari district by the Commercial Banks, District Central Cooperative Bank,

Godavari Grameena Bank (Regional Rural Bank), has been provided in chapter

one under the sub-heading "Banks and financial'institutions".

Banks and Self Help Groups:

Commercial Banks in East Godavari district have been playing a vital role in

the matter of providing financial assistance to the Self Help Groups, and there by

for the cause of entrepreneurship development in the district. Details of the Self

Help Groups for which credit support has been extended in East Godavari district

during the three years period 1998-99, 1999-2000 and 2000-2001 have been

furnished in Table Number 4.2 given Mow.

Table ~umber.4.2

Number of Self-Help ~ m u ~ s kt which Credit Support has been extended by Commercial Banks.

( TOTAL 1 4280 1 10760 1 15093 1

Source: NABARD Potential W e d Credit Plan. 2001-2002 East Godavari Dislzict, NABARD Regional Office. Hydierabad.

In terms of the number of self Help Groups financially assisted by different

commercial banks in the district during the year 199899, Andhra Bank (1517),

ranked first, followed by State Bank of lndia (983), and Corporation Bank to (267).

During the year 1999-2000 it is again Andhra Bank (3852) that ranked first,

followed by State Bank of lndia (2393) and Godavari Grameena Bank (607).

During the year 2000-2001 also Andhra Bank (5816) ranked first, foMowed by

State Bank of India (3707) and Bank of Baroda (820). It can be further observed

that during the three year period 1998-99 to 2000-2001, Andhra Bank followed by

State Bank played a leading role in the matter of providing credit support to self

Help Groups, in terms of total number of SGHs helped in East Godwari district.

Details of the amounts of disbursements of credit provided by different

commercial banks in East Godavari district to ihe self Help Groups have been

furntshed in Table Number.4.3 given below.

Table Number.4.3

Disbursements Under SHG by Commercial Banks (Rs. Lakhs)

Source: Potential linked Credit Plan. 2000-2001 East Godavari district NABARD Regional Office, Hyderabad.

It can be observed from the data furnished in Table Number.4.3 given

above, that the total amount of credit. support extended by different commercial

banks in Chk~~ari district increbd from Rs.713.82 lakhs in 1998-99 to

Rs.1743.17 lakhs in the year 1991-2080 and to Rs. 2213.67 lakhs in the year

2000-2001.ln t m s of the amount of credit support extended by different

commercial banks to the self Help Groups in the.distrid, Andhm Bank (R.244.90

lakhs) ranked first, followed by State Bank of lndia (Rs.157.71 lakhs), and

Godavari Grameena Bank (Rs.35.72 lakhs) during the year 1998-99.

During the year 1999-2000 also, Andhra Bank (Rs.596.85 lakhs) ranked

first, followed by State Bank of India (Rs.394.46 lakhs) and Bank of Baroda

(Rs.93.73 lakhs). In the succeeding year i.e. 2000-2001, same pattern followed.

During the year 2000-2001, Andhra Bank (Rs.859.66 lakhs) ranked first, followed

by State Bank of lndia (Rs.525.32 lakhs) and Bank of Baroda (Rs.141.91 lakhs).

It can be further observed from the data furnished above that Andhra Bank,

followed by State Bank of lndia played a leading role in terms of the amount of

credit support extended also, to the self Help Groups in East Godavari district

during the three year period 1998-99 to 2000-2001.

Informal Cwdit Delivery Systems:

In view of the implementation of the prudential norms in Indian Banking

Industry, a serious thought has been given to improve the recovely performance

under priority sector lending with a special emphasis on Government sponsored

programmes. A great need was felt in the banking circles to search for alternative

credit delivery mechanism in East Godavari district for promoting lending on

"Ground Mode" and also inculcating the habit of thrift among the poor

beneficiaries which has become a virtual necessity for reaching the uncovered

~ e & won@ the Poor. To make a good beginning in thii diection NABARD

(National Bank for Agriculture and Rural Development) has launched "self Help

Groups1 VW Clubn Schemes. There are about 34 voluntary organhtions actively

functioning in East Godavari district of which 8 voluntary agencies are engaged in

promoting SHGI Thrift cum Credit Groups vide details furnished below.

1. Sravanthi Association for Rural and Tribal Development, Rajahmundry.

2. Creators Charitable Organisation, ~ajahmundr~.

3. Maharshi Sarnbamurthi Institution of Development Studies, Kakinada.

4. St.Paul' Trust, Samalkot.

5. Scope Amalapumm.

6. Spandhana, Peddemallapuram.

7. Visakha Zilla Nirmana Samithi, Uppada, Kothapalli.

8. Sujana, Dharmavaram, Pathipadu.

These agencies have promoted around thousand groups with an

approximate membership of 8000 and mobolised thrift to an extent of Rs.100

crores. The DRDA (District Rural Development Agency) has promoted around

50000 groups with a membership of 4.86

lakhs. All the banks operating in the district, it is reported, during the year 1999-

2000 provided financial assistance of Rs.15 crores to 8000 groups. These

voluntary agencies in East Godavari district are helping the poor to organise

themselves in to groups, assist them in organisational, managerial and financial

matters and upgrading their skills. In a way, the voluntary agencies can be called

Self Help Promotion institutions" (SHPs) they are playing a crucial role in

organising the groups, ensuring their proper functioning and restraining them from

internal collapse.

A n d h Bank Institute of Rural Development, FbjahmunQy:

Andhra &Ink Institute of Ruml ~ k l o p m e n t , Rajahmundy, sponsored by

Andhra Bank Rural Development Trust, Hyderabad was established on 14'

November 1989. All Service area villages of Andhra Bank in the districts of East

Godavari, Srikakulam, Vijayanagaram, Visakhapatnam, West Godavari, Krishna

and Kharnmam and all service area villages of Godavari Grarneena Bank are

covered in the jurisdiction of operation of this institute.

One of the important objectives of this institute is to impart training to

farmers, rural women, artisans, youth and all sections of villagers in the area of its

operation to enable them to gain self-employment and increased' incomes.

Candidates in the age group of 18 to 35 years sponsored by Andhra Bank,

Godavari Grameena Bank branches, Govemment Organisations and Non

Government Organisations (Voluntary Organisations) are provided training in this

institute.

AU the training programmes conducted by this institute can be broadly

divided in to two categories as follows: 1) on. campus training; 2) off campus

training. Under both the categories, the following types of training is imparted by

the institute:

1. Training to farmers in horticulture, and plantation crops;

2. Training to farmers and village youth in activities allied to agriculture;

3. Skill development and capacity building to rural women.

4. Transfer of technology to artisans and farmers.

5. Training to PMRY (Prime Minister Rojgar Yojana) candidates.

6. Basic level orientation training' to members of women self Help

Groups(SHGs);and

7. Basic level orientation training to voluntary VW Clubs (Farmers Clubs)

Under "activities allied to agriculture" by following programmes have so far

been conducted by the Institute: 1. Dairy management 2. Poultry management 3.

Stall-fed goat rearing 4. Sericulture 5. Fresh water fish culture 6. Brackish water

prawn culture.7 Mushroom culture 8. Bee keeping 9. Vemi culture 10. Fresh water

prawn culture. The institute established a "Vemi Composting Unit" during the year

1997 which serves as a practical demonstration centre for imparting training in

vermiculture technology.

Under "Skill develo~ment for rural women" the institute has so far

conducted the following programmes. These programmes are helpful in enabling

the rural women to increase their levels of income by establishing small units or

pursuing these activities during leisure time. The Institute also renders advisory

services to these women groups to overcome the initial problems in establishing the

micro enterprises.

1. Preparation of articles with jute fibre

2. Preparation of artides with banana fibre

3. Preparation of articles with coconut fibre

4. Jams and juices making

5. Preparation of bakery items

6. Soft toys making

7. Fancy cloth bags making

8. Tailoring and dress making

9. Fabric Painting

Tie and Dye sari printing

Kalarnkari printing

Saree rolling and painting

Palm leaf artides

Laces making

Hand and machine embroidery

Cosmetics making

Phenyl and detergents making

Adda leaf plates making

Agarbathi making

Rexin bags making

Coir rope and door mats making

Papad making on machine

Candles making

Chalk crayons making etc

Details of the number of PMRY candidates trained under this programme

are noted below:

Source : Andhra Bank Institute ot nural uevelopment, najanmrmay. A note on the working of Andhra Bank Institute of Rural Development. Rajahmundy, 2001. page 21.

Year

1995-96 1996-97 1997-98

No. candidates trained

925 628 604

1998-99 1999-00 2000-01

444 390 199

Under "Transfer of technology .to artisans and farmen" new machinery

fabricated for reducing the drudgery of artisans and for increasing production was

taken b the villages and the artisans are encouraged to handle them.

Demonstration of the following machinery was uodertaken in the villages covered

by the institute.

1. Palm fibre extraction machine.

2. Coir rope making machine.

3. Adda leaf plates making machine.

Under "Training to P.M.R.Y. candidates" the Institute conducts training to

P.M.R.Y. candidates who have been sanctioned loans by all branches in the

revenue divisions of Rajahmundy and Rampachodavamm of East Godavari

district. Training is imparted to P.M.R.Y. candidates in the following aspects.

1. Entrepreneur development;

2. Salesmanship;

3. Marketing management;

4. Procedures for establishing small enterprises;

5. Legal and Tax matters;

6, Insurance coverage;

7. Accountancy and Book keeping;

8. Break even analysis; and

9. Repayment of bank loans.

The details of the training programmes organised by the Institute during the

period 1989-90 to 2000-2001 are furnished in Table Number 4.4 given below.

Table Numbu 4.4

Training Ro(gammea Organid by hdhra Bank lnstitute of Rural Kkwbpmmt, RaJrhmundry, durlng the period 1989-90 to 2000.2001.

P - No. of Programmes T - No. of Trainees

Source: Andhra Bank lnstitute of Rural Development, Rajahmundry. A note on the working of Andhm Bank Institute of Ruml Development. Rqyhmundry, 2001. Page 110.12.

It can be observed from Table Number 4.4 given above, that during the

period 1939-90 to 2000-2001, 188 programmes have been conducted exclusively

for the benefit of 4390 women trainees. This is really a commendable performance

on the part of the Institute in the matter of women entrepreneurship development.

It can be further observed that 90 programmes have been conducted during the

refed to in "activities allied to agriculturen and 3087 trainees have been

benefited from these programmes. In respect of PMRY, 76 progmmmes have been

c o w benefiting 3265 bpainees.

Apart from conducting training programmes, the Inrtitute braught out

awed brochure hwn time to time on various aspects, such as "Vermi cubew,

"Rearing of heifers" "Cosmetics making", "Women Self Help Groups" and

"Fkpmtion of articles using palm fibre". Mass cantact programmes of ex- trainees

are also conducted by the institute frequently to have a feed back from the trainees

over the efficacy of the training imparted by the Institute and to restructure and

design these programmes whenever ne'cessaty.

East Godavari District Scheduled Castes Co-operative Society Ltd.,

The East Godavari District Scheduled Castes Co-operative %ety

established in 1974 with an object of improving the means of livelihd of SC

families, living below the poverty line launched upon several programmes and

provided linancial assistance of Rs.%68.142 labs to 2,11,640 beneficiaries ti11 the

end of 2000-2001, for example horticulture, sericulhire, animal husbandry, ISB

sector programmes (industy and small business) Rural Artisans Assistance

Rogramrnes, Pisciculture and Training Programmes of varied types under different

schemes etc. Prominent among these are discussed in brief in the following

paragraphs:

Hortioulture (Maintenance) under this scheme maintenance cost including

cost of manure, is provided by the EGSCC society to the SC beneficiaries up to a

period of 5 to 7 years as per the guidelines and the nature of the crops and a h the

sunrival rep~ts received from the beneficiaries. The funding pattern under this

scheme is al follows:

1. SCSY subsidy 50 per cent. 2. NSFDC loan 50 per cent.

Pnrh plantation : EGSCC Society provides financial assistance by way of

sandon of loans for plantation of fruit t r k s and subsequent maintenance cost in

resped of Mango, guava, Citrus, Sapota, Coconut, Cashew plantations. The

funding pattern followed is 50 per cent subsidy and the balance of 50 per cent

NSFDC ban.

Youth Development Programmes: vouth Development Programmes assisted

by EGSCC Society can be broadly categorised under two heads as follows: I)

NSfWSbte Government assisted self-employment ii) Bank credit linked self

employment schemes.

i) NSFDU State Government assisted self employment schemes: The

broad objective of the implementation of NSFDC and State Govemment assisted

=If employment schemes is to enable easy access to cred~t with cheaper rates of

interest to the SC educated youth for setting up self employment units. In the total

prow cost of Rs.75,000, -MM loan component wiU be 20 per cent and N S W

State Government Loan will be 80 per cent.

ii) Bank credit Ilnked self-employment scheme: Under this scheme,

financial &stance is provided to those SC targeted beneficiaries who have passed

or f&d in SSC. They are encouraged to establish industrial, service and business

units with the assistance of the bank finance. In the total unit cost of the project of

Rs.20,000 MM loan component will be 20 per cent and bank loan component wiU

be 80 per cent.

There are two programmes sponsored for the economic rehabilitation of

scawngen (belonging to SC cadel

i) NSKFDC assistance programme

ii) Bank Credit linked scheme

i) NSKFDC Assisted Programme: Under this programme the pattern of

funding is as fdlaws. In a total project cost of Rs.75, 000, programme subsidy

component will be 50 per cent (subject to a maximum of Rs.10000) and MM

component will be 20 per cent and the remaining 30 per cent will be S W

conhibution component. Rnanaal assistance is provided to scavengers for the

economic rehabilitation of the scavengm under this programme.

ii) Bank Credit Unked Schemc: This scheme is sponsored with an object of

pmvlding financial assistance to X beneficiaries for theii economic rehabilitation.

The needy beneficiaries and viable projects are identified and assistance is

provided to the de se~ng candidates under this scheme. The maximum assistance

that is provided under this scheme is Rs.50000. In a total project cost of RS

50,000, Rogmmme subsidy component will be 50 per cent (subject to a maximum

of Rs.lOOOO) and MM component will be 20 per cent and the remaining 30 per

cent d be bank loan component.

Progammte for flayere end tanners:

Financial assistance is provided to flayers and tanners for I) setting up small

bus im units such as roadside service centres (cobbler unik); ii) upgradation of

shops cobblers units; iii) carcass &cowry and tanning unik. In the total

141

project cost of W.17000 pmgmme subsidy component will be 50 per cent

(subject to a maximum of Rs.8500), MM'component will be 20 per cent and the

bank loan component will be 30 per cent (or remaining amount).

Self Help Groups: Finandal assistance is also provided by the EGSC

cooperative society to Self Help Groups of SC caste members for the purposes of

formation, sustenance and development of economically viable enterprises.

District Industries Centre. East Godavari District. Kakinada (DICf

The District Industries Centre of M Godavari district, situated at Kakinada,

the district headquarters provides the following serviced facilitie* to the

entrepreneurs:

1) Supplying technical know how required for setting up industries;

2) Identifying the resources and demand for resources in the district and assisting

the prospective entrepreneun in setting up concerned industrial units.

3) Conducting awareness camps to entrepreneurs

4) Preparing comprehensive project profiles and project reports for industries in

the district

5) Helping the entrepreneun in oMaining necwary approvals, licenses for setting

up industrial units, from the concerned officials of various departments of

Central and State Government% thmugh single window system/ approval.

6) Providing a forum to the meetings of the District Industries Promotion &uncil

the Chairmanship of the D i c t Collector, discuss, review and take

BY action on the vwioue pending poposals from the entrepreneurs in

the district;

7) Helping the entrepreneurs in obtaining supplies of raw materials, coal, alcohd,

molasses, industrial oils, etc from the concerned suppliers, stockisWdealers and

relevant government organisations;

8) Providing marketing support to the.products of entrepreneurs of small-scale

industries;

9) Helping the eligible entrepreneurs in promring different incentives, subsides,

rebates I reliefs and other concessions from various Government departments

and Government sponsored organisations.

The General Manager. DIC at Kakinada is assisted by 8 industries promotion

officers (IPOs) functioning at 1) Kakinada (Urban) B)Kakinada(wral) 3) Tuni

4)Amalapurarn 5)Kothakot 6) Rajaslmundry 7)Ramachandmpumm 8) and

Kampachodavaram in providing uaried services/facilities to the entrepreneurs,

spread through out the district.

Perfonaance of DIC in East Godavari Distrirt :

The details of small-scale industrial units assisted, the number of artisans

assisted and the number of entrepreneurs assisted under TRYSEM (Training of

Rural Youth for Self Employment) Scheme by the District Industries Centre E.G.

Dist., during the period 1993-94 b 1999-2000 are provided in Table No.4.5 given

below.

Tabb No 4.5

Performance of DIC, E.G. dirtrict during the period 1993-94 to 1999-2000

Source: DIC (Govanment of An* Pndesh, Department of Industries) East G0d.d Met. Kaklnada.

It can be observed from table No. 4.5 given above that the DIC, East

Godavari district assisted in the matter of promotion of small-scale industrial units,

and generation of employment opportunities in the district. It has also assisted a

number of artisms in securing self-employment. It has provided training facilities to

the mml youth for self-employment. The deb& of targets and achievements of DIC %I

for these different activities during the period 1997-99 to 1999-2000 are furnished

in table 110.4.5 given above. It can be further observed that achievements are far

above the targets in certain years (e.g. 1993-94 and 1994-95, 1997-98) in the

matters of promoting SSI units, employment ~eneration. assistance to artisans and

p r w of training to rud youth at the same time for self employment. It must

abo brs admitted at the same time that it could not reach the tmg& in these m a w

in m years (e.g. 19%-97).

Andhra Radtrh State Financial Corporation (APSFC):

Andhm Pradesh State Financial Corporation set up in 1956 with the main

object of extending financial assistance for setting up industrial and service units in

tiny small scale and medium scale sectors. APSFC offers libend financial assistance

to the entrepreneurs (particularly in the small and medium scale industries) for

acquiring fixed asets, like land and buildings and machinery. It also offers various

other services to the entrepreneurs through different convenient and easily

repayable schemes to suit pa&ular requirements of individual / iriititutional

borrowen. A.P.S.F.C also undlertakes joint financing with other financial institutions

such as commercial banks, APIIDC, IFCI, ICICI, IDBI etc. sponsored by

Government of India and A.P. State Government.

A list of these various schemes is provided below.

Major schemes for financial assistance:

1. Geneml Loans Scheme; 2. Good Entrepreneurs Scheme; 3. Equipment

Refinance Scheme; 4. Modem'kation Scheme; 5. Schemes for Hotels/ Motels/

Restaurants; 6. Scheme for Tourism Related Facilities; 7. Acquisition of E1ech.o

M e d a and other Equipment; 9. Diesel Generator Sets Scheme; 10. Transport

Loam %me; 11. Borewell Drilling Rigs Scheme; 12. Road Laying and Earth

Moving Equipment Scheme; 13. Private Industrial Estates Scheme; 14. Qualified

Profa- Scheme; 15. Construction of Commercial Complexes Scheme; 16.

Mahila Udyam Scheme; 17. National Equity Fund Scheme; 18. Self Employment

Scheme for Ex servicemen (SEMFEX); 19. Single Window Scheme; 20. 'XO'

chm~ Sckn'w; 21. Refinance Schew for Technology Development and

l4cxhhdon for SSI Units (RTDM); 22. Refinance Scheme for Acquisition of

9000 SERIES Certification by SSI Units; 23. Composite Loans 24. Loans to

Physically handicapped; 25. Scheduled Cast4 Scheduled Tribes Entrepreneurs

Scheme, 26. Short Term bans; 27. Bill Discounting/ Public Issue Appraisals, 28.

Leasing; 29 H~re Purchase.

APSFC has a branch office at Rajahmundy, which will take care of all the

services to be rendered to the entrepreneurs in East Godavari district. The Zonal

affice of the corporation situated at Visakhapatnam will plan and monitor all the

services rendered by the branch office at Rajahmundry to the entrepreneurs in East

Codavari district also. AU the avowed benefits under the various schemes,

extended to the entrepreneurs, are applicable equally to women entrepreneurs

along with male entrepreneurs in East Godavari district. It is needless to emphasise

over this phenomenon any more here.

Prime Minister's Rojgar Yojana (PMRY)

The scheme was launched on 2"" October, 1993, the birth Anniversary of

Mahatma Candhi all over the country. The main objective of the PMRY scheme

was to provide easy subsidized financial assistance to educated unemployed youth

for starting their own enterprises in manufacturing, business and service and trade

sectors. Initially the scheme was aimed at providing self - employment to one

million educated employed youth in the counhy by setting up 7 lakh micro

enterprises through inducting service and business ventures over a period of 2 %

years. The scheme had a stupendous success and caught the imagination of the

youth. owwhalmed with the response and ever-increasing need, the Gowmnmt

has decided to make it a permanent schek and framed rn&ties and guidelines

for its successhtl implementation and to fulfil the pu- for which it is designed.

Sallent Featarts of PMRY Scheme: The salient features of the scheme are

summed up below:

1) This is a centrally sponsored scheme.

2) The Development Commissioner (Small - Scale Industries) under Ministry of

%all Scale, Ruml and Ago, Industries Government of India is the apex body

for this scheme.

31 The respective Commissioner1 Director of industries implements the scheme at

the State level except the four metropolitan cities, with an ovemll monitoring by

the concerned SecmMm of Industries.

4) The implementation agencies at the ~ m s s root level are District Industries

Centre (DIC) who would be inskumental for the grounding of the units.

5) Small Industries Serviw Institutes (SISI) located in the four Metropolitan cities of

Delhi, Kolkata, Mumbai, and Chennai are the implementing agencies of this

scheme.

6) The DCSSl has set up a special PMRY division in the headqwrters under the

able guidance of an IAS Officer. DCSSl formulates the rules, regulations and

guidelines instructions and provides clarifications on all matters pertaining to

PMRY &me. It has also devised a complete feedback information by means

d gsrtlng mntMy, wrhly and annual progress reports from all the states to

monltor the implementation and prqea of the scheme.

7) Simibrty at O\e state level, State Level PMRY Committee meetings monitors the

progress of the scheme every quarter.

8) The yearly targets for number of beneficiaries for each state are fixed by DCSSI.

The detaih of the performance of PMRY scheme in Andhra Pradesh during

the period 1993 - 94 to 2000-01 have been furnished in Table Number 4.6 given

below.

Table Number 4.6 :

Per fomce of PMRY in Andhra Pradesh since Inception

XS mbkhs :&bud nu 2520 14769 23677 21743 20724 I Per capits 0.60 0.50 0.56 0.55 0.55 I dtsbud I (Rs.i"lakhs) 1 I I I Trained -. ----- 1 3023 1 16472 1 27552 1 25918 1 18838

Source: FMRY Ro)ect 2000-2001 volume. Smcrll Industries Service Institute. Hyderahd.2001- page 14.

it be observed from the data furnished in Table Number 4.6 given

above, that on MI average every PMRY beneficiaty received a sum of Rs.67, 000

during the year 2 W l where as it was only Rs.60,000 in the year 1993-94. The

number of PMRY h h e s also increased frbm year to year.

Performance of PMRY In East Godavari DisMct:

Details of PMRY performance in East Godavari District during the period

1993-94 to 2002-2003 in terms of targets, sanctions, actual grounding of units and

the amount diibuned to the PMRY beneficiaries are furnished in Table No.4.7

given blow.

Figures for 2002-2003 relate to the performance of PMRY, up to the end of

August 2002 only(latest information available.).

Table No.4.7

Performance of PMRY In E.G. district during the period 1993-94 to 2002-03

*up to the end of August 2002 only

S-: DIG, (G-ment of Andhra Radesh. Departmust of Industries. E.G. district. KJtlaadr

It can be obeetved from Tabb No.4.7 given abow, that during the ten-year

period 1993-94 to 2002-2003, as against a target of 23,520 units, it is only 166300

units that are sandioned financially assistance under PMRY in East GodaMvi

district. Again, among the 16,630 units that have been sanctioned, it is only 11680

units that haw been actually grounded during the period referred to in the district.

A total amount of Rs.6446.48 lakhs has been paid to the PMRY beneficiaries

during the period referred to in the distriict.

It can be fu&r observed from the data furnished in Table No.4.6 given

at= that except for one year 1995-%, during the rest of the ten year period

ref& to, every year, the number of units sanctioned assistance PMRY in the

district, haw always been lesser than the targeted number of beneficiaries. Similarly

the actual number of units grounded under PMRY in the district during the ten year

period (induding 1995%) have atways been lesser than those sanctioned.

During the year 1995-%, as against a target of 2570 units, actually 2609

units haw been sanctioned financial assistance under PMRY. This is exceptional to

rhe normal performance of PMRY in the district, wherein we find the sanctions are

below the targets and the actual number of units grounded are below those

sanctioned. It is evident from what is reported above that the performance of

PMRY is far from satisfactory. It needs improvement. All the concerned officials and

non officials involved in the designing and implementation of PMRY scheme in

East Godavari Dislrict should take all conceivable steps to ensure that the targets

are rexhed every year and all those units which have been sanctioned financial

mistance under the scheme haw been Mtually grounded.

Chid X W k ' s Enapowerment of Youth (CMEY) Programme

The Chiif MinkWs Empowetmeni d Youth (CMf3) Programme has been

launched on 1" fhmnber, 19% to provide self empioyment group strategy to the

ywth of 18 to 35 years age group who hail from below poverty line (BPL) i.e.

below RS. 11,000 income per annum. The A.P. Govemment has revised the

C.M.E.Y guidelines in the year 2000-2001 and renamed it as "Yuvashakthi".

Accordingly, the new group should consist of a minimum 15 members and each

member should save Rs.60 per month and raise a minimum savings of Rs.5000

within a span of six monlhs, by internal lending. During the course of thrift, the

group should also undergo training spread over 6 months duration in, different

sub)ects such as leadership qualities, grwp dynamics, business management etc.,

and alx, actively participated in sdvlng the village problems of reconstruction.

Basing on the ranking of the gnwp, the State Govemment will provide

financial &stance to the First Rankers as foUows:

1 ) Revolving Fund: 100 times of the Group's savings (not exceeding Rs. 1,00,000)

2) Margin money : 50 times of he Group's savings (not exceeding Rs.50,000)

3) Bank lonn : Equal to the amount of margin money (not less than Rs.50,000)

4) Total financial assistance to the Group : Rs.2,00,000

5) The gnwp can take up one activity or different activities at a time as per its

convenience

6) Misutiliition of the resources made avadable under this scheme to a group will

be booked under Indian Pen& Code W o n 420 and the entire amount paid to

the goup will be recowred in lumpsum.

of the plokcts, which received financial assistance under this scheme

in - dwk4 iwhde i.) D A R h t of planwm ii.) Pd@ fm

iii.) Piggeries iv. Sheep breeding farms v.) Goat rearing farms vi.) Reparation of

agabtties vii.) W n g oil viii.) Aluminum vessel; ix.) Bakeries x. Handicmfts xi.)

Silk yam Kii.) Sericxrlture xiii.) Saaps xiv.) Washing powders xu.) Detergents xvi.)

Dairy indusbial unik xvii.) Forest based industrial unik xviii.) Rural industries xix.)

Transport business KX.) Retail trade xxi.) Fair price shops etc.

C.M.E.Y is regarded as an important entrepreneurship development

programme in Andhra M e s h State. Reading material is supplied to the

participants - trainees in these entrepreneurship development programmes. The

training pn>gmrnme is regarded as a key component in the C.M.E.Y programme.

The latest booklet brought out by the C.M.E.Y programme organisation on 8-7-

2002 and distributed to the C.M.E.Y progmmme trainees indude the following

items: i.) Anaiysls of business opportunities required ii.) b a t i o n of prqect

reports iii.) Obtaining loans from bankers iv.) Principles of marketing v.) F ing up

prices. Swami Ramanand Thirth Rural Institute, National Institute of Small

Industria Extension and Training and A.P. Productivity Council, will conduct the

training programmes under this scheme.

Performance of CMEY in East G o d a d district:

The detaits of number of CMEY Groups formed, number of members

enrolled in these groups, and the amount of financial assistance provided to these

goups by different institutions such as banks, and finance corporations etc., during

the period 1W98 to 2001-2002 are provided in table no.4.8 given below.

Table Number 4.8

CMEY women groups in E.G. dlctrict during the period 1996-98 to 220 1-02

Source: SFIRAJ, East Godavari district, Kakinada

We have sa far discussed the vadous measures of institutional support that

are extended to women entrepreneus in East Godavari district namely, viz the

contribution of NABARD and Self Help Groups, informal aedit delivery systems,

ABIRD-Rajahmundry, East Godavari district Scheduled Castes Co-operative

Society Ud., Ltd, A.P.S.F.C., Prime Ministers' Rojgar Yojana, CMEY.

11, the chapter that follows, chapter five, the various problems experienced

by sled women entrepreneur respondents in East Godavari district are discussed.