Taking stock

Every passing budget makes Nabard's existence increasingly indispensable. Ms Ranjana Kumar, Chairperson and 'India's turn around queen', according to The Economist, outlines Nabard's success quotient in the last Financial year. TAJ presents excerpts of the interview

What has been the success rate of Nabard's activities with respect to credit linking of Self Help Groups (SHGs), as directed by last year's Budget?
The budget pronouncements on SHG Bank Linkage programme covered three aspects viz., credit linking 5.85 lakh SHGs in the ensuing three years (that is up to March 31, 2007), enabling SHG members to take up sustainable micro enterprises and providing financial services like insurance for SHG members. A strategy workshop convened at Nabard with IBA, Sidbi, SBI as a sequel to this announcement, interalia, recommended phasing the programme over three years with a goal to credit link about 1.85 lakh SHGs during the current year. As against this 2.16 lakh SHGs have already been credit linked to mainstream financial institutions with bank loans of Rs 1186.40 crore, as on December 31, 2004. As the programme aims at building the capacities of the poor, it needs lead-time and cannot be fasttracked. Also, in this regard, Nabard has been constantly endeavouring to enlist the support of new intermediaries to take up the task of building capacities of the poor and formation of the societal groups. Regarding graduation of matued SHGs to micro-enterprises, the institution has convened a National Level Consultation meet on the subject, involving major commercial banks/RRBs/reputed NGOs. It further plans to launch a pilot project in 10 select districts to facilitate graduation of members of matured SHGs to micro-enterprises. In context of introduction of a new Group Health Insurance Scheme through public sector non-life insurance companies for members of Self- Help Groups (SHGs), Nabard has initiated detailed discussion with representatives of four non-life insurance companies. IRDA has also drafted a concept note on regulatory framework for micro insurance and has sought our comments, which has been furnished to IRDA.

In the last Budget Nabard was asked to lend money on easy terms and by not charging any margin money to cover one-lakh irrigation units at an average cost of Rs 20,000 per unit. Has there been any progress in this context?
The Finance Minister announced the scheme for SC/ST farmers in the budget for 2004-05. The scheme envisages one-lakh irrigation structures for harvesting of rainwater. There are three models prepared by Nabard under this programme, one with Rs 30,000 outlay, other with Rs 20,000 and a third one with an outlay of Rs 12,000. The Ministry ...

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