It is estimated that about 1.5 lakh self help groups ( SHGs) in Tamil Nadu would be empowered by state government’s revolving subsidy fund scheme to avail Rs 2,000-crore loan from the banks by the end of this financial year. The SHGs have already taken Rs 1,108.32 crore loan in the first seven months of 2008-09. So far 64,057 SHGs have obtained Rs 354.11 crore revolving subsidies and bank loans, an official release said here on Friday. The government has made a budgetary provision of Rs 150 crore for providing revolving subsidies to1.5 lakh SHGs in 2008-09.
In Tamil Nadu there are 3,78,564 SHGs with 60.63 lakh women members. Of these 2,64,165 groups are in the rural areas and 1,14,399 in urban areas. Up to March-end 2008 they have taken Rs 3163.39 crore bank loans.
The SHGs are able to get higher bank loans with the initial payment given to them as revolving subsidy from the state government. Earlier these groups were able to get only Rs 15,000 as bank loan with the Rs 10,000 as government subsidy. From 2008-09 onwards the loan amount has been increased to Rs 50,000 in the first term and to Rs 1 lakh and Rs 1.5 lakh in the second and third terms, respectively.
The groups are intended to work collectively for the betterment of the living standards of the members by taking up profitable employment programmes and small businesses. Originally only the rural SHGs were eligible for the subsidy scheme. Since 2006-07 it has been extended to the urban groups also.
In Chennai district it plans to give revolving subsidy to 8,000 SHGs in 2008-09.
In the first phase in August, 2008, Rs 27.36 crore was given to 2500 groups. In the second phase, Rs 35.09 crore would be given to 3000 SHGs on November 25, 2008 by chief minister, M Karunanidhi at a function here.
The chief minister would also distribute the State-level `Manimekala Award’ for the best-performing five Panchayat-level co-operative groups and 10 self help groups in that function, to be organised in the Centenary Hall of the Madras varsity.