implementation of ‘udyogini’ - … of udyogini, ... there are a variety of personal, economic,...

Fiscal Policy Institute

Internship Report

BUDGETARY ALLOCATION AND

IMPLEMENTATION OF ‘UDYOGINI’

Submitted as part of summer internship

By

Mantasha Husain

National Law School of India University, Bengaluru

2

LETTER OF TRANSMITTAL

Place: Bangalore Date: 20th December, 2016

Smt. Prachi Pandey

IA & AS

Director

Fiscal Policy Institute,

Finance Department,

Government of Karnataka.

Dear Ma’am,

I am pleased to submit herewith the report titled ‘Budgetary Allocation and Implementation of

Udyogini’. I hereby declare that this is an original work done by me at FPI, Bangalore and the

findings of this work have not been previously submitted for any publication. Credit, where

due, has been aptly given.

Mantasha Husain

Summer Intern

National Law School of India University, Bengaluru

Batch of 2017

4

ACKNOWLEDGEMENTS

I am deeply indebted to Smt. Prachi Pandey, Director, Fiscal Policy Institute, Bengaluru, under

whose guidance this study was conducted.

I would like to also thank Shri K.K. Sharma, Adviser, Fiscal Policy Institute, for his support

and guidance.

I would also like to extend a heartfelt gratitude to Smt. Soumya Ponnappa, Special Officer,

Fiscal Policy Institute, for her valuable suggestions, generous help and direction during all

phases of the study. Without her help and guidance, the study could not have been completed

successfully. Her feedback was crucial and I am grateful to her for lending me time from her

busy schedule to help in this study.

I am thankful to Shri Ravi Kumar B., Research Consultant and Shri Shivakumar, Research

Consultant, for their tremendous support and guidance during this study.

I want to thank Dr. Sarasu Esther Thomas, Associate Professor, Co-ordinator, Centre for

Women and the Law, National Law School of India University and Mrs. Anita V. Nazare,

Deputy Director, Department of State Education, Research and Training (DSERT),

Department of Public Instruction, for their advice with regards to this study.

I am deeply thankful to Namrata Kumar, my fellow intern and classmate from National Law

School of India University, Bengaluru, for her help and support at every juncture.

I want to thank Fiscal Policy Institute, Finance Department, Government of Karnataka, for

giving me the opportunity to intern and providing me with a comfortable and friendly

environment to work in.

I would also like to thank the following officials:

i. Shri Vijay Prakash, IAS, Managing Director, Karnataka State Women's Development

Corporation (KSWDC)

ii. Smt. Vijaylakshmi, District Development Officer, Bengaluru Urban District.

iii. Shri Mahadeshwara, First Divisional Assistant, KSWDC.

iv. Shri Nagaraj, Bank Manager, Syndicate Bank, Ramohalli Branch, Bengaluru.

v. Shri N.R. Gowda, Banking Correspondent.

5

TABLE OF CONTENTS

Title Page Number

Letter of Transmittal……………………………….…………………………………….……2

Certificate of Internship……………………………………………………………………….3

Acknowledgements………………………………………………….………………………...4

Table of Contents………………………………………………..…………………………….5

Abstract………………………………………………………..………………………………6

Executive Summary…………………………………………………………………...………7

List of Abbreviations…………………………………………………………………………..8

List of Tables…………………………………………………………………………………..9

List of Figures……………………………………………………………………….……......10

1. Introduction………………………………………………………………..……………..11

2. Women in Karnataka……………………………………………….…………………….15

3. Background of Udyogini Scheme………………………………..….……………………16

3.1. Objectives of the Scheme……………………………………………………………16

3.2. Details of the Scheme………………………………….…………………………….17

3.2.1. Implementation Method…………………………………...…………………17

4. Objective of the Study……………………………………………………………………19

5. Need for the Study………………………………………………………………………..19

6. Research Methodology…………………………………………………………………...19

6.1. Primary Survey………………………………………………………………………19

6.2. Secondary Survey……………………………………………………………………20

6.3. Research Design……………………………………………………………………..20

6.4. Tools of Study…………………………………………………………...…………..20

6.5. Collection of Data……………………………………………………………………22

6.6. Limitations of the Study……………………………………………………….…….22

7. Findings of the Study……………………………………………………………………..22

7.1. Government Office………………………………………………………………..…22

7.2. Case Study of Syndicate Bank, Ramohalli Branch…………………………………..23

7.3. Case Study of Beneficiary……………………………………….…………………..24

8. Findings Based on Data Analysis…………………….......................................................25

9. Recommendations……………………………………………………………………………..32

10. References………………………………………………………………………………..36

Annexures……………………………………………………………………………….…...37

6

ABSTRACT

The paper attempts to analyse the impact of Udyogini scheme, which is specifically designed

for women so that they can achieve economic and social empowerment. The main aim of the

study was to analyse the budgetary allocation of the scheme for various districts for a period

of three years and to assess the impact of this allocation on the intended objectives of the

scheme. The scheme works through disbursement of loans via banks so that the women can

start their own enterprises. The study was conducted in Bangalore, with the Bangalore Urban

district taken as a special case study to understand how much the target population is benefiting

from the scheme and in what ways the scheme can be improved. Interviews were conducted

with various stakeholders like banks managers, one beneficiary, and the state level officials

overseeing this scheme to know implementation problems and also to get feedback on the

success of the scheme. The implementation method and other details of the scheme were

studied to gain an understanding of how things should work at the grassroots level and whether

the correct procedure was being followed in sanctioning loans to the beneficiaries.

The study highlights the loopholes in implementation of this scheme and also gives suggestions

to improve upon the current state of affairs. It tries to know the fundamental process involved

in getting access to the scheme, and the subsequent problems which the beneficiaries face.

The flow of subsidies was analysed and major discrepancies were found in the target set for

the district and the actual achievement by a district. Some districts were found to be under-

utilising the given amount, whereas some used the leftover funds from previous years to go

above and beyond the set targets. Similar patterns were found in physical targets. The

recommendations for improving upon the scheme and helping deeper penetration of the same

have also been provided.

7

EXECUTIVE SUMMARY

The study given in the report was conducted to find out the ground realities in the

implementation of Udyogini, a scheme specifically designed for women by the Government of

Karnataka (GoK). This scheme comes under the Gender Budgeting process of the government.

The purpose of gender budgeting is to monitor expenditure and public service delivery from a

gender perspective, as a means of mainstreaming women's concerns in all activities and

improving their access to public resources.

The report discusses the present national and international initiatives taken by the various

governments to safeguard the economic rights of women. Nationally, India has many schemes

for the same. Further the need for gender budgeting and the condition of women in Karnataka

is explored. The report further focuses on the Udyogini scheme of the Karnataka government,

and gives its objectives and implementation method.

After articulating the objectives and methodology of the study, the findings of the study (based

on interviews conducted and data analysis) are presented. The report concludes with giving

recommendations concerning the head office, district office, banks and beneficiaries, so that

improvements may be made to truly achieve the intended objective of the scheme.

8

LIST OF ABBREVIATIONS

APMC- Agricultural Products Marketing Committee

CDPO- Child Development Planning Officers

DI- District Inspector

DIO- District Implementation Officers

DTI- District Training Institute

GBC- Gender Budget Cell

GoI- Government of India

GoK- Government of Karnataka

GRB- Gender Responsive Budgeting

KSWDC- Karnataka State Women's Development Corporation

MFI- Microfinance Institution

MSDE- Ministry of Skill Development & Entrepreneurship

MSME- Micro, Small and Medium Enterprises

NABARD- National Bank for Agriculture and Rural Development

NPA- Non-Performing Asset

PIA- Project Implementing Agencies

PMKVY- Pradhan Mantri Kaushal Vikas Yojana

RRB- Regional Rural Bank

SC- Scheduled Caste

SHG- Self Help Group

SSC- Sector Skill Council

ST- Scheduled Tribe

TC- Training Centre

9

LIST OF TABLES

Table Page

Number

Table 1: Proportion of Women Employed in the Organised Sector in

Karnataka

13

Table 2: Employment of Women in the Organised Sector in Karnataka, as a

Percentage of Total Workforce; and the Growth rate of Employment of

Women for each Successive Year

14

Table 3: Number of disabled persons in Karnataka

15

Table 4: Number of Women Running each Type of Business in each Age

Category (Syndicate Bank, Ramohalli Branch, Financial Year 2015-16)

24

Table 5: Financial Targets and Achievement (In Rs. Lakhs)

26

Table 6: Number of Districts under each Range of Percentage Actual

Economic Achievement for all 3 Years

28

Table 7: Physical Targets and Achievement

30

Table 8: Number of Districts under each Range of Percentage Actual

Physical Achievement for all 3 Years

32

10

LIST OF FIGURES

Figures Page

Number

Figure 1: Age wise distribution of widows in Karnataka-Rural and urban

comparison

15

Figure 2: Age wise Distribution of destitute women in Karnataka

16

Figure 3: Flow of Funds (Subsidy) from the KSWDC to the Beneficiary

23

Figure 4: Target vs Actual Financial Achievement 2013-14

27


27


28

Figure 7: Target vs Actual Physical Achievement 2013-14

31

Figure 8: Target vs Actual Physical Achievement 2014-15 31


32

11

1. INTRODUCTION

Women have been excluded from both social as well as economic progress since ages and

remain one of the marginalised sections of the society. They have very little financial power

and remain dependent on their husbands, fathers, brothers or sons for their financial needs.

They are mostly limited to working at home, hence, having very little to no economic freedom

in their hands.

Women entrepreneurs occupy an important role in the economy of a country, mainly due to

low investment requirement in their businesses, high potential for employment generation, and

dispersal of such industries both in the rural as well as urban areas which leads to an almost

equal progress. Economic growth of a country is dependent on its economic, natural and human

resources. Even if one of them remains untapped, then it is a huge loss in terms of potential for

growth. The objective of any country must be to ensure that all their resources are utilised

optimally. It therefore becomes very important for both men and women to take up a

profession, either as salary earners or entrepreneurs, to help the country in its path towards

development.

It has been observed that women have some difficulty in obtaining access to finance for their

businesses. Women from backward castes, handicapped women and destitute women further

face many hurdles in obtaining credit for their business ventures, as they might be both

economically and socially backward. Though the potential exists, very few women are

choosing entrepreneurship as a career. There are a variety of personal, economic, legal, social,

resources and support system constraints that restrict women from entering the field of

entrepreneurship. Sengupta found in her study (Singh et al 1986) that the profile of women

entrepreneurs was not dominated by education, or the lack of it. It could be because of

experiences and circumstances, which are a key to entrepreneurship. Pillai and Anna (1990)

have examined the stimulating factors which lead women to take up enterprise. They reported

that independent economic status was the foremost ambition which led women to open up their

own businesses.

Western economies have greatly benefited from the huge success of women entrepreneurs,

especially small and medium scale women-led business ventures. Notably, the Government of

India (GoI) has in place various institutions and mechanisms to promote women

entrepreneurial activities. A wide range of incentives exist to promote entrepreneurship

amongst women.

Empowering women is key to not only the well-being of individuals, families and communities,

but also to overall economic productivity, given women’s large presence in the workforce of

the country, especially in the MSME (Micro, Small and Medium Enterprises) sector.

Empowering women with a weak economic background remains a challenge, but small

businesses may be a potent tool for women empowerment in India. It is not only to increase

national productivity or to generate new employment, but also essential to women’s economic

independence, to improve women’s leadership qualities, and independence in decision making.

12

Keeping the above in mind, the Ministry of Women and Child Development (GoI) has in place

the National Mission for Empowerment of Women, 2001, Poverty Alleviation and Economic

Empowerment of Women, to ensure socio-economic equality of women.

The Government of India (GoI) has various schemes in place like Rajiv Gandhi National

Crèche Scheme for the Children of Working Mothers and Rashtriya Mahila Kosh to aid women

become financially independent.

India has also ratified various international Conventions and Human Rights Instruments

committing to secure equal rights of women. Key among them are as under:1

Mexico Plan of Action, 1975

Nairobi Forward Looking Strategies 1985 called for Recognition of women’s unpaid

work.

Convention on Elimination of All forms of Discrimination against Women (CEDAW),

1993

Beijing Declaration as well as Platform for Action 1995-Strategic objectives included

review, adopt and maintain macro-economic policies and development strategies that

address the needs of women in poverty; revise laws and administrative practices to

ensure women’s equal rights and access to economic resources; provide women with

access to savings and credit mechanisms and institutions; and develop gender-based

methodologies and conduct research to address the feminization of poverty.

The World Summit for Social Development, Denmark March, 1995- Talks about

Poverty Alleviation and expansion of productive employment.

Gender Budgeting as a tool for Economic Empowerment of Women:

Gender budgeting is a powerful tool for gender mainstreaming to ensure that the benefits of

development reach both men and women equally. As a response to challenges of development,

India adopted ‘gender-responsive budgeting’ (GRB) in 2005. Put simply, GRB is a method of

planning, programming and budgeting that helps advance gender equality and women’s rights.

It also serves as an indicator of governments’ commitment to meeting those objectives.

Ministries and Departments also have specialised Gender Budget Cells (GBCs). Table 1 shows

the number of women employed in the organised sector in Karnataka. Table 2 also gives a

picture of the growth rate of women participation in the organised labour force. It can be clearly

seen that in some years there has been an appreciation in the growth rate, yet, some years have

witnessed a depreciation in the growth rate. The number is very low, hence special measures

must be taken to ensure that they have greater access to organised employment. Self-

employment seems to be the easiest way for women to gain economic freedom as it does not

depend on their qualification. A basic capital amount and knowledge is necessary to be

successfully self-employed.

1 http://www.nmew.gov.in/index1.php?lang=1&level=0&linkid=19&lid=31&ltypeid=2&domid=8

http://wcd.nic.in/schemes/rajiv-gandhi-national-creche-scheme-children-working-mothers-0

http://wcd.nic.in/schemes/rajiv-gandhi-national-creche-scheme-children-working-mothers-0

http://www.nmew.gov.in/index1.php?lang=1&level=0&linkid=19&lid=31&ltypeid=2&domid=8

13

Table 1: Proportion of Women Employed in the Organised Sector in Karnataka

14

Table 2: Employment of Women in the Organised Sector in Karnataka, as a Percentage

of Total Workforce; and the Growth rate of Employment of Women for each Successive

Year

Employment in Organised Sector in Karnataka (in

thousands)

Year Total Women Women as

a

Percentage

of Total

Growth

Rate

(in %)

1992-93 1501.0 280.7 18.70 -

1993-94 1530.4 306.4 20.02 9.15

1994-95 1578.2 329.0 20.84 7.36

1995-96 1759.3 472.8 26.87 43.70

1996-97 1815.6 506.3 27.88 7.08

1997-98 1843.0 531.6 28.84 4.99

1998-99 1849.0 545.1 29.48 2.53

1999-00 1864.0 561.8 30.13 3.06

2000-01 1879.7 568.7 30.25 1.22

2001-02 1855.9 576.0 31.03 1.28

2002-03 1850.4 581.0 31.39 0.86

2003-04 1820.3 564.3 31.00 -2.87

2004-05 1862.0 578.2 31.05 2.46

2005-06 1915.5 591.1 30.85 2.23

2006-07 2035.8 652.1 32.03 10.32

2007-08 2152.3 715.9 33.26 9.78

2008-09 2234.5 729.6 32.65 1.91

2009-10 (up to Sept. 2009) 2256.4 742.2 32.89 1.72

2010-11 2294.5 755.5 32.92 1.79

2011-12 2348.2 758.6 32.30 0.41

2012-13 2348.9 764.5 32.54 0.77

2013-14 (up to Sept. 2013) 2346.4 756.8 32.25 -1.00

Source: Planning, Programme Monitoring and Statistics Department, Government of Karnataka

In 2006-07, the Government of Karnataka (GoK) created a separate cell in the Finance

Department to identify the quantum and resource allocation and expenditure for women and

proper translation of policy commitments. Accordingly, in the year 2007-08, the first ever

Gender Budget document was presented at the Legislature with a hope to improve the

sensitivity to address the issues which concerns women.

One of the schemes implemented by GoK is Udyogini which aids women in having access to

affordable credit facilities so that they can be financially independent.

15

2. WOMEN IN KARNATAKA

Women have been at a disadvantage in many spheres of economic development. Literacy rate

in Karnataka has seen an upward trend and is 75.36 percent as per 2011 population census. Of

that, male literacy stands at 82.47 percent while female literacy is at 68.08 percent. In 2001,

literacy rate in Karnataka stood at 66.64 percent of which male and female were 76.10 percent

and 56.87 percent literate respectively. The following tables and figures give an overview of

the condition of the women in the state.

Figure 1: Age wise distribution of widows in Karnataka-Rural and urban comparison

Source: Karnataka Census, 2011

Table 3: Number of disabled persons in Karnataka


0

50000

100000

150000

200000

250000

300000

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

-64

65

-69

70

-74

75

-79

80

+

Urban

Rural

16

Figure 2: Age wise Distribution of destitute women in Karnataka


3. BACKGROUND OF UDYOGINI SCHEME

Due to inadequate exposure to institutional capital, women are unable to ascertain the right

business enterprises for self-employment. Widowed, handicapped, minority, Scheduled Caste

and Scheduled Tribe women are disadvantaged both socially and economically in the

developing countries. It is obvious that they cannot adopt industrial approach to any enterprise

because of lack of proper knowledge or training and resources. Udyogini gives adequate

opportunity to such women to help them be self-employed.

Started in the year 1997-1998 (and amended in the year 2004-2005), Udyogini is an innovative

scheme sanctioned by the Government of Karnataka to assist women in gaining self-reliance

and economic independence through self-employment, mainly through trade and service

sector. It also provides for a subsidy on loans from the Karnataka State Women’s Development

Corporation for undertaking business activities/ micro enterprises through banks and other

financial institutions. Loans are disbursed through financial institutions like commercial banks,

district co-operative banks and Regional Rural Banks (RRBs). In absence of a structured credit

system, women would take loans from private borrowers and end up paying a high rate of

interest. Hence, there was felt a need to have in place formal channels of credit which are

accessible to women.

Profitable business activities are approved and supported under this scheme. They maybe book

binding and note books manufacturing, chalk and crayon manufacture, jam, jelly, pickles

manufacture, papad manufacture, saree and embroidery works, printing and dyeing of clothes,

woollen weaving, amongst others.

3.1 Objective of the Scheme

The aim of the scheme is to help women attain socio-economic empowerment by providing

them with subsidies on loans for enterprises. These loans are provided at a reasonable rate of

0

100000

200000

40

-44

45

-49

50

-54

55

-59

40

-44

45

-49

50

-54

55

-59

Rural Urban

Marital status of Destitute Women

Never Married

Widowed

Separated

Divorced

17

interest so that the women are not exploited by the local moneylenders. The rate of interest

usually varies by what each bank charges its ordinary customer. Usually it is at the current

Bank Rate+1%. The scheme also aims to help widows and handicapped women to become

financially independent by providing them with financial assistance without any impediments.

3.2 Details of the Scheme

The scheme sets out to give subsidies to women entrepreneurs. The Karnataka State Women's

Development Corporation (KSWDC) approves the applicants and gives the subsidy amount to

the bank which is disbursed to the beneficiary along with the loan.

Women in the age group of 18-45 years whose family income does not exceed Rs. 40,000/- per

annum are eligible to avail assistance under this scheme. There is no income limit for widows,

physically handicapped and destitute women. The women belonging to special categories

(widows, SCs, STs, destitute women, physically handicapped, etc.) are provided Rs. 10,000/-

or 30% of the planned expenditure on the project (whichever is less). The women belonging to

general category are provided with Rs. 7,500/- or 20% of the planned expenditure on the project

(whichever is less). This is given as a subsidy on the loan that they avail from the bank. This is

a one-time disbursement only. Figure 1 and Figure 2 shows the number of widows and destitute

women in Karnataka, and Table 3 shows the number of disabled persons in Karnataka. The

KSWDC provides this assistance through the District Implementation Officers (DIOs) by

releasing the subsidy money to the related banks. The remaining amount is loaned by the banks

to the beneficiaries. There is no maximum limit to the loan that a woman can avail. If the bank

manager approves the loan, the bank can disburse any amount of loan. There is of course a

limit on the subsidy amount, as mentioned above.

Before applying, the candidate must submit her income certificate signed by the Tehsildar.

Loans are usually given through nationalised banks, cooperative banks, district cooperative

banks and women cooperative banks. According to the scheme guidelines, the subsidy loans

must be only disbursed for new business ventures, and not to expand existing ones.

The scheme Rules and Regulations must be displayed on the notice board of offices of Women

and Child Development Officer, Deputy Director and Joint Director.

Applicants are required to fill a form for applying to this scheme (Annexure 1)

3.2.1. Implementation Method:

In each taluka, Child Development Planning Officers (CDPO), Women and Child

Development Officers (WCDO) work as Implementation Officers. Advertisement about the

scheme is done through radios and newspapers, employment exchanges, Tehsildar office,

District Broadcasting office amongst others. Anganwadi workers of the district also help to

spread awareness and help the women in filling of the form. Applications are given directly to

18

eligible beneficiaries, or to the CDPO to be distributed amongst the beneficiaries. After the

application is received (at the village level), it is scrutinised by the following officers:

1. Deputy director/assistant director (District Level), Women and Child Welfare

Department

2. Lead Bank Manager and members (District Level)

3. Concerned service area bank manager and members will be conveners in each district,

Block Level Bankers’ Committee (BLBC) people will be members.

4. National Bank for Agriculture and Rural Development (NABARD) representatives and

members (District Level)

5. Child Development/Welfare Officer – Member Secretary (District Level)

The scheme document sets out the following rules in regards to ‘Udyogini’:

Applications of the beneficiaries’ recommended by the selection committee (as

mentioned above) shall be sent to respective area banks for sanctioning of the loan.

Once the loan is sanctioned, the Assistant Director/Deputy Director shall release the

financial assistance to the banks directly.

The KSWDC gets the funds for the scheme from the state government and then

distributes them to the districts for release to the respective banks and ultimately to the

beneficiaries.

The monthly progress report of ‘Udyogini’ scheme, must be submitted to the KSWDC

before 5th of every month by the District Inspector (DI) helped by the CDPO.

In order to identify beneficiaries of ‘Udyogini’, in the place where enterprise/business

is established it is mandatory to put a board, “This enterprise is established by

Karnataka State Women’s Development Corporation under Udyogini scheme.”

Under the Corporation’s women training programme; beneficiaries who are trained

under Lambani embroidery programme will be given preference for loan sanctioning.

Once every six months, a meeting of all beneficiaries under this programme will be

held under the leadership of block/taluk level CDPOs where any issues related to delay

in disbursement of loan or repayment of loan will be discussed and resolved in the

presence of concerned Bank representatives. Success stories of women benefited under

this programme, if any, shall be reported to the commission.

The following instructions shall be followed while sanctioning financial assistance under

Udyogini scheme.

1. According to the amount sanctioned by the bank, for General category women 20%

of the plan expenditure or not exceeding maximum of Rs.7500, whichever is less,

has to be disbursed. For special category women (SC, ST, widows, physically

challenged, destitute women) an amount of 30% of planned expenditure or not

exceeding maximum of Rs.10000, whichever is less shall be disbursed. Banks shall

ensure that the loan is completely disbursed to the beneficiary. Banks should

19

consider the financial assistance as “Backend Subsidy”. Banks shall release an order

regarding sanctioning of loan and recover the loan in 36 monthly instalments.

2. Once the loan is approved from the bank: Before the disbursement of the loan, all

the applicants whose loan is approved should receive a 3 day business

improvement training from a specified training centre. This training is called

Entrepreneurship Development Training. It is a bank sponsored training

programme. The KSWDC pays for 6 days of training (Rs. 520 per day if it is

residential or Rs. 450 per day if it is non-residential). This is a mandatory training

and loans should be disbursed only after the training. This examination should be

done by the Deputy Director /Assistant director. The training has a common

syllabus which trains the women in record keeping, money management, business

development and marketing. They may also have training in common skills like

animal husbandry or tailoring, but more specific skill training is not usually

provided.

(Further instructions as given in the official Information booklet for Udyogini are

attached in Annexure 12)

4. OBJECTIVE OF THE STUDY

i. To analyse the trends in budgetary allocation for the scheme over a period of 3 years.

ii. To study the variances between the budget allocation and the actuals incurred over a

financial year and to assess the impact of these variances on achieving the intended

objectives of the scheme.

iii. To examine the implementation issues of the scheme.

iv. To assess the factors for effective utilisation of the funds allocated.

v. To study the economic impact of the scheme on the target beneficiaries.

5. NEED FOR THE STUDY

Udyogini is a scheme which is developed specifically for women. It is a unique scheme

where a small investment leads to the transformation of women’s lives and makes them

self-sufficient hence, the study was conducted to find out what actual effect the scheme is

having on the beneficiaries’ lives. There is also a need to know the actual implementation

problems on the ground so that the scheme can achieve its intended benefits.

6. RESEARCH METHODOLOGY

6.1 Primary Survey

The researcher undertook visits to the following places and participated in discussions with the

officials of:

i. KSWDC- Karnataka State Women's Development Corporation

20

ii. Women and Child Development Office, Bengaluru Urban District

iii. Syndicate Bank, Ramohalli branch.

Discussed on:

Gender Based legislations with Dr. Sarasu Esther Thomas, Associate Professor, Co-

ordinator, Centre for Women and the Law, National Law School of India University.

The methodology and possible questions of research with Mrs. Anita V. Nazare, Deputy

Director, Department of State Education, Research and Training (DSERT), Department

of Public Instruction.

The benefits of the programme and problems encountered in gaining access to the

scheme with a beneficiary (as a special case study) in Syndicate Bank, Ramohalli.

6.2 Secondary Survey

Data of previous 3 years with regards to the scheme was taken from KSWDC. This data

consisted of statistics of physical and financial targets and achievements of the scheme. An

effort was made to understand why there are variances in budgetary allocation of funds, release

of funds, and their utilisation. Various officials and one beneficiary were also interviewed.

6.3 Research Design

Descriptive Research- This included surveys and fact finding enquiries. The major purpose of

descriptive research is description of the state of affairs as it exists at present. This can also be

called an Ex post facto research. Various government officials, bank officials and a stakeholder

were asked about the current status of Udyogini, implementation issues, loopholes in

implementation, etc.

6.4 Tools of Study

Mostly interviews were conducted with bank officials and government officials to collect

information. This was done with the help of an interview schedule.

Budget Statistics- Obtained from the Annual Budget Statement of the Government of

Karnataka.

Secondary Data- Collected from the Department of Women and Child Development

(Bangalore Urban District) and KSWDC.

Interviews- They were conducted at 2 levels:

1. Beneficiary level - The actual benefits from the scheme, difficulty in accessing the

scheme, use of funds for the specific purpose provided in the scheme, etc.

2. Officials level (Department of Women and Child Development and KSWDC) –

Allocation versus release, release versus non-expenditure and possible reasons for the

same. Interviews of Releasing Authority and Implementation Authority.

21

3. Bank Level- A special case of Syndicate Bank (Ramohalli taluka, Bangalore Urban

district) was taken. The researcher paid a visit to their office and talked about the

general issues related with the scheme

Interview Schedule: There were three separate interview schedules for officials of Department

of Women and Child Development (Bangalore Urban District) and KSWDC, the bank officials,

and the beneficiaries themselves.

The following information was sought from the Government officials:

The number of applications received in the past financial year

The physical target of beneficiaries in the past financial year

Loans that were actually sanctioned by the banks in the past financial year

What happens to those applications which cannot be granted loans due to budget

constraints?

Endowment from the state per year.

The procedure to apply for a loan (first step to last step).

The reasons due to which an application is rejected.

What kind of training is provided to the beneficiaries in the area of their business?

Information on promotion/advocacy of the scheme.

Requirement of security against the loans

Type of businesses which are popular amongst the women entrepreneurs

Most successful type of businesses.

The following information was sought from the Bank officials:

The number of applications received annually

The average processing time required to pass a request for a loan

Recovery percentage of loans

Enterprises that give bad debts

The rate of interest on loans disbursed

If collateral security required for the loans then is it possible for women to give collateral?

Timing of disbursement of loan amount (monthly, quarterly, etc.)

The entry point and end point of the transaction of loan.

The authority who approves the loan.

Repayment time for loans

Whether the unpaid interest get cumulated to the principal each year.

Release of subsidy from KSWDC to the bank and whether it is done on time.

The questionnaire for the beneficiaries was divided into the following sections:

1. General information

2. Administrative aspect: Pre-enrolment and Post-enrolment

3. Repayment

22

4. Problems in access to the scheme

5. Financial independence gained, and other personal effects due to the scheme

6.5 Collection of Data

Data was collected by going to the office of the Department of Women and Child Development.

Interviews (of both the Department’s officials and the beneficiaries) was conducted in person.

The respondents were briefed about the purpose of the study before the interviews were

conducted. Help of the interview schedule was taken to ask questions.

6.6 Limitations of the Study

i. Lack of information about beneficiaries- Only one beneficiary was accessible for the

research. The details of the beneficiary were confidential to the bank, hence, one

beneficiary was used as a special case for the purpose of the research. She voluntarily

chose to participate in the study.

ii. Time limitation- Due to constraints of time, a thorough picture of the whole Karnataka

state was not possible. The researcher had limited time and resources on her hands,

hence, only a study of the Bangalore Urban district was possible. Many banks could

also not be covered. Only one bank, Syndicate Bank (Ramohalli district) was selected

for the study.

iii. Language limitation- The researcher was not well versed with Kannada language, and

some of the department officials were not well versed with English language. Hence,

there may be certain opinions/facts which were interpreted in a different manner than

what they were intended for.

7. FINDINGS OF THE STUDY

7.1 Government office

The KSWDC gets limited funds from the State government. Hence, not all women who apply

for subsidies on their loans are able to gain the benefits of the scheme. Many of them are

rejected after subsidies are granted on priority basis. These women still apply for loans to start

their enterprises, or apply for the subsidy again next year. The demand for the scheme is ever

increasing as more and more women feel the need to become financially independent. In

Bangalore Urban district, for the year 2015-2016, the number of applications received under

this scheme was 3980, and the number which bank sanctioned was 1767. This means that

around 44.40% of the total applications received in Bangalore Urban district (for the year 2015-

2016) were sanctioned. As stated, this was because of the lack of funds.

The KSWDC transfers the subsidy funds to the respective districts each year according to the

targets set. Many a time, the banks in each district may not sanction such amounts of loan so

as to utilise the whole of the subsidy amount stipulated for that financial year. Hence, the

23

unutilised amount remains at the district office and is rarely returned to the state head office.

This results in accumulation of idle money over the years. As will be seen subsequently in the

report, this idle money is used to provide subsidies for the succeeding years in case the demand

for the scheme exceeds than anticipated.

Figure 3: Flow of Funds (Subsidy) from the KSWDC to the Beneficiary

The subsidy amount is released to the bank (by the district office) only after approval of the

loan, but the subsidy amount is transferred to the district office (by the KSWDC) even before

sanction of the loan. This may also give rise to idle money in the district office.

The scheme document requires a meeting, once every six months, of the beneficiaries under

this programme to know their issues or success stories. On talking to an official, it was found

that this is currently not happening regularly. The follow-up for these meetings is also poor.

The businesses which are successful and are high in demand amongst the beneficiaries are

animal husbandry, tailoring, and beauty parlours (See Annexure 11 for other 89 businesses

allowed under the scheme)

7.2 Case study of Syndicate Bank, Ramohalli Branch

The following points came to the fore on discussion with the bank manager:

o Unpaid interest of the previous term becomes cumulated to the principle for the next

term.

o Collateral for the loans is not required to be given by the women.

o Applications for the loans are received in the bank office during September-October. It

approximately takes 1 year for the application to be processed and the loan to be finally

disbursed to the beneficiary along with the subsidy.

o Hon’ble Chief Minister of Karnataka, Siddaramaiah announced in his budget speech

for 2015-16 that the subsidy amount will be increased for the beneficiaries. This

increased amount would be a maximum of Rs. 15,000 for the general category and

maximum of Rs. 20,000 for the special category. This has not been implemented yet.

o When applications are received, the bank does a Pre-Inspection before approving the

application. This is to see if the business actually has some space for the establishment

of the shop, or has the potential to run. If this is found to be unsatisfactory, the

application is rejected.

KSWDC

District (Deputy Director)

Bank (Bank Manager)

Beneficiary

24

o After the approval of the application and before the sanction of the loan, there is also a

Post-Inspection by the bank manager to see if the potential still exists. The loan only

gets sanctioned after this exercise.

o 50-60 applications (in the financial year 2015-2016) were sent by the Bangalore Urban

District office of Women and Child Development. Out of these, around 30 were

sanctioned by the bank manager. Usually, the bank manager assesses the

creditworthiness of the borrower and looks at how profitable the business venture will

be in the future before sanctioning the loan amount.

o The bank manager can reject an application even if it has been approved by the officials

of the KSWDC and Department of Women and Child Development. The KSWDC

releases the subsidy to the bank only after the loan is sanctioned by the bank manager.

o Loans are disbursed on a lump sum basis (it is a one-time release).

o The rate of interest on these loans is Bank Rate+ 1%

o Around 50% of the loans disbursed become bad debts as the beneficiaries default on

repayment. This is because the beneficiaries feel that they need not really repay the loan

as it is a government scheme and that the government will take care of the same. Such

loans are categorised as Non-Performing Assets (NPAs). Usually, no collateral is

required.

o The kind of businesses which usually default on repayment are petty business,

vegetable vendors, flower sellers, cloth cut piece centre and puja item sellers.

o The repayment time of these loans is usually 3 years.

o Women from almost all age groups (19 years to 45 years) applied to be beneficiaries,

and there was no concentration of a particular age group of applicants.

Table 4: Number of Women Running each Type of Business in each Age Category

(Syndicate Bank, Ramohalli Branch, Financial Year 2015-16)

7.3 Case Study of Beneficiary

o The age of the respondent was 38 years. She is married and her education had been up

to high school.

Total

18 to 25 26 to 35 36 to 45

Type of Business

Tailoring nil 3 1 4

Hotel nil 1 3 4

Provision Store 4 6 7 17

Textile 1 2 1 4

Tailoring and Textile nil nil 1 1

Stationery nil nil 2 2

Computer nil 1 nil 1

Jewellery 1 nil nil 1

Bakery 1 2 1 4

Fancy Store nil 1 1 2

Flour Mill nil nil 1 1

Total 7 16 18 41

Age Group

25

o She was informed about the scheme through an Anganwadi worker.

o According to her, the authorities are usually accessible in case of any help needed with

respect to the scheme and the support from officials had been good for her.

o In case of her business, no training specifically was provided to her and no handholding

was done by the officials in this regard.

o The loan amount was not sufficient for her to run the enterprise and she faced some

difficulty on that front.

o The beneficiary became financially independent after starting her own enterprise (a

textiles business) and started taking financial decisions at home also.

o She was able to repay the loan on time, but the profit of her enterprise after loan

repayment was insufficient to keep the enterprise running.

o One problem that she faced was that it took too much time for the loan to get sanctioned.

o She suggested for the procedure (of applying for the subsidy) to be simplified, time

taken in sanctioning the loan to be reduced, increasing the subsidy amount, and

reducing the number of documents which are to be attached to the application form.

o The beneficiary was able to handle the business transactions on her own. She perceived

a change in her personality and confidence levels after starting her business and

managing its financial matters.

8. FINDINGS BASED ON DATA ANALYSIS

Financial Achievement:

As seen in Table 5, in 2013-2014, 2014-15, and 2015-16, the financial target for the state was

Rs. 144.45 lakh, Rs. 176.2 lakh, Rs. 188.37 lakh whereas the actual achievement was Rs.

126.19 lakh, Rs. 170.25 lakh, Rs. 178.3 lakh respectively . It is observed that the allocated

funds have been consistently higher than the funds actually utilised. There has been gross

underutilisation of funds. Bijapur was able to utilise only 22.81% of the funds allocated to the

district (Table 5).

Sometimes if the loan requirement for each of the applicants is small, then the district achieves

the physical target but fails in financial achievement as the cumulative amount adds up to less

than the financial target allotted for that year.

In 2013-14, the districts of Bangalore Rural (Rs. 25.36 lakh as against Rs. 16.21 lakh) and

Koppala (Rs. 55.38 lakh as against Rs. 22.18 lakh) have been able to utilise a higher amount

of funds than those allocated (Figure 4). This is because the number of actual beneficiaries in

these districts is also considerably higher than the targeted number of beneficiaries. In 2013-

14, it can be seen in the case of Bangalore Rural district, where the target was 182 and the

achievement was 302. Many a times, the districts do not return the unutilised amount of the

previous year to the KSWDC. Hence, this amount keeps on accumulating over the years and

the districts use these additional funds over and above the funds allocated to them in case the

demand for the scheme is very high and the number of beneficiaries goes beyond the target

number of beneficiaries. In such a case, it becomes useful for the district to give subsidies to

the beneficiaries from the unutilised subsidy amount of the previous years.

26

Table 5: Financial Targets and Achievement (In Rs. Lakhs)

2013-2014 2014-2015 2015-2016

District Name Target Achieve

ment

Percentage

Achievement Target

Achieve

ment

Percentage

Achievement Target

Achieve

ment

Percentage

Achievement

Bangalore

Urban 125.57 109.98 87.58 156.33 150.32 96.16 166.94 156.9 93.99

Bangalore

Rural 16.21 25.39 156.63 16.44 29.18 177.49 17.5 20.49 117.09

Belgaum 75.43 41 54.36 80.46 14.37 17.86 85.8 76.12 88.72

Bijapur 34.02 7.76 22.81 36.51 29.66 81.24 39 30.47 78.13

Bagalkot 30.01 30.1 100.30 32.24 34.46 106.89 34.34 32.27 93.97

Bellary 40.08 24.56 61.28 42.89 41.48 96.71 45.92 48.95 106.60

Bidar 26.54 25.31 95.37 28.52 21.57 75.63 30.4 30.03 98.78

Chamarajnagar 16.48 7.45 45.21 17.31 14.38 83.07 18.49 20.47 110.71

Chitradurga 18.08 15.51 85.79 28.09 29.17 103.84 30 28.16 93.87

Chikamagaluru 18.26 14.97 81.98 19.44 17.26 88.79 20.9 20.09 96.12

Chikballapur 20.48 21.44 104.69 21.14 22.84 108.04 22.47 22.73 101.16

Davanagere 31.79 23 72.35 32.66 35.83 109.71 35.03 32.82 93.69

Dakshina

Kannada 33.84 16.2 47.87 36.09 27.4 75.92 38.3 31.59 82.48

Dharwad 29.03 16.78 57.80 31.2 25.08 80.38 33.18 30.3 91.32

Gadag 16.83 14.55 86.45 17.93 17.9 99.83 19.31 14.9 77.16

Kalburgi 41.86 32.02 76.49 42.97 36.75 85.52 46.11 42.83 92.89

Hassan 28.5 31.06 108.98 30.64 29.63 96.70 32.46 33.37 102.80

Haveri 25.12 17.43 69.39 26.64 30.4 114.11 28.47 25.01 87.85

Kolar 24.94 26.4 105.85 26.02 26.4 101.46 28 28.03 100.11

Koppala 22.18 55.38 249.68 23.53 19.59 83.26 25.31 29.8 117.74

Kodagu 8.91 8.2 92.03 95.87 9.93 10.36 10.25 12.3 120.00

Mandya 28.95 25.31 87.43 30.83 21.9 71.03 32.83 27.69 84.34

Mysuru 48.45 41.12 84.87 50.9 43.83 86.11 54.21 61.33 113.13

Raichur 30.73 33.97 110.54 32.66 33.74 103.31 35.14 31.95 90.92

Ramanagara 12.38 16.5 133.28 18.38 17.45 94.94 19.44 18.41 94.70

Shivamogga 28.23 22.8 80.77 29.93 24.47 81.76 32.03 35.4 110.52

Tumakuru 42.57 35 82.22 45.38 45.04 99.25 48.47 45.22 93.29

Uttar Kannada 22.71 16.03 70.59 24.35 17.77 72.98 26 24.36 93.69

Udupi 18.08 16.63 91.98 21.14 13.08 61.87 22.47 8 35.60

Yadagir 18.88 16.21 85.86 19.87 19.93 100.30 21.43 21.4 99.86

27


Source: Data provided by KSWDC



0

20

40

60

80

100

120

140

Ban

galo

re U

rban

Ban

galo

re R

ura

l

Bel

gau

m

Bija

pu

r

Bag

alko

t

Bel

lary

Bid

ar

Ch

amar

ajn

agar

Ch

itra

du

rga

Ch

ikam

agal

uru

Ch

ikb

alla

pu

r

Dav

anag

ere

Dak

shin

a K

ann

ada

Dh

arw

ad

Gad

ag

Kal

bu

rgi

Has

san

Hav

eri

Ko

lar

Ko

pp

ala

Ko

dag

u

Man

dya

Mys

uru

Rai

chu

r

Ram

anag

ara

Shiv

amo

gga

Tum

aku

ru

Utt

ar K

ann

ada

Ud

up

i

Yad

agir

Target vs Actual Financial Achievement(All figures in lakhs): 2013-14

Target Economic Achievement Economic

0

50

100

150

200

Ban

galo

re…

Ban

galo

re R

ura

l

Bel

gau

m

Bija

pu

r

Bag

alko

t

Bel

lary

Bid

ar

Ch

amar

ajn

agar

Ch

itra

du

rga

Ch

ikam

agal

uru

Ch

ikb

alla

pu

r

Dav

anag

ere

Dak

shin

a…

Dh

arw

ad

Gad

ag

Kal

bu

rgi

Has

san

Hav

eri

Ko

lar

Ko

pp

ala

Ko

dag

u

Man

dya

Mys

uru

Rai

chu

r

Ram

anag

ara

Shiv

amo

gga

Tum

aku

ru

Utt

ar K

ann

ada

Ud

up

i

Yad

agir



28



Table 6: Number of Districts under each Range of Percentage Actual Economic

Achievement for all 3 Years

Achievement

Percentage →

Below

10%

10%

to

30%

31%

to

50%

51%

to

70%

71%

to

90%

90%

to

100%

> 100%

Total

Districts

Year ↓

2013-2014 nil 1 2 4 12 3 8 30

2014-2015 nil 2 nil 1 12 6 9 30

2015-2016 nil nil 1 nil 6 13 10 30

In the year 2014-15 (Figure 5), it can be clearly seen that Kodagu district did not manage to

utilise a considerable amount of the money allocated (Rs. 9.93 lakh as against the allocated Rs.

95.87 lakh were utilised, a utilisation of 10.35%). Belgaum could only utilise Rs. 14.37 lakh of

the Rs. 80.46 lakh allocated to them (a utilisation of 17.85%). Yadagir utilised almost 100% of

its allocated funds (Annexure 6). Some of the reasons for low level of utility could be that there

were not sufficient number of beneficiaries applying for this scheme, the loan amount that they

would take is low hence subsidy is also low, low level of awareness, etc. the factors may differ

from district to district.

In the year 2015-16 (Figure 6), the utilisation percentage (utilisation as a percentage of

allocation) seems to have improved considerably for most districts. It was 117.08% for

020406080

100120140160180

Ban

galo

re U

rban

Ban

galo

re R

ura

l

Bel

gau

m

Bija

pu

r

Bag

alko

t

Bel

lary

Bid

ar

Ch

amar

ajn

agar

Ch

itra

du

rga

Ch

ikam

agal

uru

Ch

ikb

alla

pu

r

Dav

anag

ere

Dak

shin

a K

ann

ada

Dh

arw

ad

Gad

ag

Kal

bu

rgi

Has

san

Hav

eri

Ko

lar

Ko

pp

ala

Ko

dag

u

Man

dya

Mys

uru

Rai

chu

r

Ram

anag

ara

Shiv

amo

gga

Tum

aku

ru

Utt

ar K

ann

ada

Ud

up

i

Yad

agir



29

Bangalore Rural district, 117.74% for Koppala district, 113.13% for Mysuru, and 110.52% for

Shivamoga district (Annexure 7).

Physical Achievement:

For 2013-2014, in terms of physical achievement of targets (Figure 7), the target set for the

state was 1622 beneficiaries, whereas the actual achievement was 926 beneficiaries. This is an

achievement percentage of 57%. Bangalore Urban district (1410 beneficiaries was the target

and the achievement was 731 beneficiaries) (Percentage of achievement was 51.84%) and

Belgaum (847 beneficiaries was the target and the achievement was 493 beneficiaries)

(Percentage of achievement was 58.24%) were not able to achieve their targets. They

prominently stand out amongst other districts, even though a lot of them were not able to fulfil

their physical targets.

Koppala district’s achievement was 252.6% as compared to the target set for the district

(Annexure 2). The demand for this scheme was clearly high in this district. Other districts who

did considerably well in achievement of their targets are Bangalore Rural (302 beneficiaries as

against a target of 182 beneficiaries or 165.93% achievement), Chikballapur (252 beneficiaries

as against a target of 230 beneficiaries or 109.56% achievement), and Ramanagara (197

beneficiaries as against a target of 139 beneficiaries or 141.72% achievement).

In 2014-2015, the target set for the state was 1984 beneficiaries, whereas the actual

achievement was 1985 beneficiaries. Here, the achievement exceeded the target set. Bangalore

Urban and Yadagir were able to achieve their target 100% (1760 and 225 beneficiaries

respectively) (Figure 8). Most of the districts were able to go above and beyond the physical

targets by utilising the funds judiciously and/or using funds accumulated from the previous

years (Annexure 3).

In 2015-2016, the target set for the state was 2129 beneficiaries, whereas the actual

achievement was 2005 beneficiaries. This is an achievement percentage of 94%. All the district

improved upon their percentages from the previous years. They were able to almost meet their

targeted number of beneficiaries, or even more in some cases (Bangalore Rural had 243 actual

beneficiaries as against a target of 198, leading to an achievement percentage of 122.72%,

Shivamogga had 443 actual beneficiaries as against a target of 362, leading to an achievement

percentage of 122.37%) (Annexure 4).

30

Table 7: Physical Targets and Achievement

2013-2014 2014-2015 2015-2016

District Name Target Achieve

ment

Percentage

Achievement Target

Achieve

ment

Percentage

Achievement Target

Achieve

ment

Percentage

Achievement

Bangalore

Urban 1410 731 51.80 1760 1760 100 1887 1764 93.50

Bangalore Rural 182 302 165.90 185 325 175.70 198 243 122.70

Belgaum 847 493 58.20 906 1410 155.60 970 865 89.20

Bijapur 382 94 24.60 411 355 86.40 440 366 83.20

Bagalkot 337 344 102.10 363 400 110.20 388 383 98.70

Bellary 450 388 86.20 483 550 113.90 519 579 111.60

Bidar 298 284 95.30 321 312 97.20 343 349 101.70

Chamarajnagar 185 84 45.40 195 165 84.60 209 232 111.00

Chitradurga 203 180 88.70 316 337 106.60 339 323 95.30

Chikamagaluru 205 173 84.40 219 202 92.20 236 231 97.90

Chikballapur 230 252 109.60 238 252 105.90 254 254 100.00

Davanagere 357 271 75.90 368 435 118.20 396 380 96.00

Dakshina

Kannada 380 314 82.60 406 377 92.90 433 392 90.50

Dharwad 326 209 64.10 351 308 87.70 375 363 96.80

Gadag 189 100 52.90 202 213 105.40 218 176 80.70

Kalburgi 470 387 82.30 484 434 89.70 521 491 94.20

Hassan 320 379 118.40 345 247 71.60 367 390 106.30

Haveri 282 212 75.20 300 371 123.70 322 295 91.60

Kolar 280 305 108.90 293 300 102.40 315 313 99.40

Koppala 249 629 252.60 265 240 90.60 286 359 125.50

Kodagu 100 105 105.00 108 121 112.00 116 151 130.20

Mandya 325 306 94.20 347 298 85.90 371 333 89.80

Mysuru 544 477 87.70 573 509 88.80 613 702 114.50

Raichur 345 420 121.70 368 426 115.80 397 486 122.40

Ramanagara 139 197 141.70 207 212 102.40 220 216 98.20

Shivamogga 317 275 86.80 337 303 89.90 362 443 122.40

Tumakuru 478 422 88.30 511 520 101.80 548 529 96.50

Uttar Kannada 255 219 85.90 274 226 82.50 294 308 104.80

Udupi 203 206 101.50 238 161 67.60 254 103 40.60

Yadagir 212 195 92.00 224 225 100.40 242 241 99.60

31





0

200

400

600

800

1000

1200

1400

1600

Ban

galo

re U

rban

Ban

galo

re R

ura

l

Bel

gau

m

Bija

pu

r

Bag

alko

t

Bel

lary

Bid

ar

Ch

amar

ajn

agar

Ch

itra

du

rga

Ch

ikam

agal

uru

Ch

ikb

alla

pu

r

Dav

anag

ere

Dak

shin

a K

ann

ada

Dh

arw

ad

Gad

ag

Kal

bu

rgi

Has

san

Hav

eri

Ko

lar

Ko

pp

ala

Ko

dag

u

Man

dya

Mys

uru

Rai

chu

r

Ram

anag

ara

Shiv

amo

gga

Tum

aku

ru

Utt

ar K

ann

ada

Ud

up

i

Yad

agir

Target vs Actual Physical Achievement: 2013-14

Target Physical Achievement Physical

0200400600800

100012001400160018002000

Ban

galo

re U

rban

Ban

galo

re R

ura

l

Bel

gau

m

Bija

pu

r

Bag

alko

t

Bel

lary

Bid

ar

Ch

amar

ajn

agar

Ch

itra

du

rga

Ch

ikam

agal

uru

Ch

ikb

alla

pu

r

Dav

anag

ere

Dak

shin

a K

ann

ada

Dh

arw

ad

Gad

ag

Kal

bu

rgi

Has

san

Hav

eri

Ko

lar

Ko

pp

ala

Ko

dag

u

Man

dya

Mys

uru

Rai

chu

r

Ram

anag

ara

Shiv

amo

gga

Tum

aku

ru

Utt

ar K

ann

ada

Ud

up

i

Yad

agir



32



Table 8: Number of Districts under each Range of Percentage Actual Physical

Achievement for all 3 Years

Achievement

Percentage →

Below

10%

10%

to

30%

31%

to

50%

51%

to

70%

71%

to

90%

90%

to

100%

> 100%

Total

Districts Year ↓

2013-2014 nil 1 1 4 11 3 10 30

2014-2015 nil nil nil 1 9 5 15 30

2015-2016 nil nil 1 nil 4 14 11 30

11. RECOMMENDATIONS

Head Office:

Need analysis must be done by the department after gauging demand from each district

and then a proposal for sufficient amount of funds must be presented to the higher

officials in the GoK. The process must flow bottom-up so that there no excess or lack

of funds with each district. It was observed that the demand for the funds was usually

more than the supply hence, a proper need analysis will be of great help to iron out any

shortfalls in funds distribution.

Mechanisms for proper follow up of the business (in the form of meetings with the

beneficiaries every 6 months) exist, but the implementation is poor. Beneficiaries must

be given incentives to attend such meetings and officials must be monitored so as to

ensure that such meetings are held as stipulated in the scheme document.

0

500

1000

1500

2000

Ban

galo

re…

Ban

galo

re R

ura

l

Bel

gau

m

Bija

pu

r

Bag

alko

t

Bel

lary

Bid

ar

Ch

amar

ajn

agar

Ch

itra

du

rga

Ch

ikam

agal

uru

Ch

ikb

alla

pu

r

Dav

anag

ere

Dak

shin

a…

Dh

arw

ad

Gad

ag

Kal

bu

rgi

Has

san

Hav

eri

Ko

lar

Ko

pp

ala

Ko

dag

u

Man

dya

Mys

uru

Rai

chu

r

Ram

anag

ara

Shiv

amo

gga

Tum

aku

ru

Utt

ar K

ann

ada

Ud

up

i

Yad

agir



33

There are too many bureaucratic channels through which an applicant has to go through.

The application itself is referred and passed by a large number of officials. Hence, it is

recommended that there must be a single window system so that the whole application

process becomes easier.

Training to the beneficiaries is provided in account keeping, marketing, business

development and common skills like tailoring and animal husbandry, but not in other

specific enterprises. Other skill training must be provided to them in courses like

beautician course, travel agency business, agarbatti making by tying up with District

Training Institutes (DTIs), non-governmental organisations (NGOs) or self-help groups

(SHGs). A need analysis can also be taken up where it is determined which are the other

kinds of skills in which the beneficiaries require training. This maybe done district-

wise.

The scheme is meant only for setting up new business, but in the study it was found

that the loan amount granted under this scheme was used to expand already existing

businesses. Hence, the government can start other schemes which will help existing

business to expand.

Tie ups can also be done with Central Government schemes. Pradhan Mantri Kaushal

Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development

& Entrepreneurship (MSDE). Under this Scheme, Training and Assessment fees are

completely paid by the Government. There are PMKVY Training Centres (TCs) which

impart training in Soft Skills, Entrepreneurship, Financial and Digital Literacy. There

are Project Implementing Agencies (PIAs), such as Sector Skill Councils (SSCs) all

over India which can also become partners in the for the Udyogini scheme.

Marketing outlets for Udyogini along with other schemes presently exist. More

exposure maybe given to these products by organising melas at the taluk level

frequently and at the State level whenever possible so that the entrepreneurs under this

scheme do not suffer from losses due to unsold products. A set up similar to

Agricultural Products Marketing Committees (APMC) can be established so as to give

specialised emphasis on the marketing and sale of such products.

District Office:

Ground level officials must be given proper training so that they can help out the

beneficiaries when the need for such a help arises.

It was observed that some districts consistently failed to meet targets (both in financial

as well as physical terms). Some steps are clearly needed to ensure that the targeted

women are benefited from the scheme. Greater awareness about the scheme, making

field level officers approachable, ease in filling the form of the scheme, reduced time

duration between application of loan and actual disbursement of loans are some of the

reforms that must happen so that women can make use of the scheme and districts are

able to meet targets.

The idle money (as discussed earlier) that lies with the district office must be returned

to the state head office each year so that it is not left idle and interest can be accumulated

34

on it. It is a financial loss if the money collects no interest over a period of one year. It

may also be re-appropriated to those districts where the demand is high.

The districts can make arrangements to have special meetings with the beneficiaries,

especially in the 1st year of the start of the enterprise. This should be done to ensure that

any initial problems are solved quickly, and they are not compounded into bigger

problems in the future. These meetings must also involve experts and maybe held

quarterly, or whenever it is feasible to seek expert help.

Bank:

Loans (along with the subsidy amount) are sanctioned only when the bank manager

visits the site of the proposed business and checks whether there is a potential to run

the business or not. This is a Pre-Inspection. It creates a problem for the entrepreneurs

as they are not yet sure of receiving the subsidy amount and the loan from the bank, yet

they need to prove that their business can become operational. Sustainability of

projecting the operational capacity is tough as it takes nearly a year for the actual

sanction of loan, which is also not guaranteed. Since the loan is not meant for existing

businesses, this Pre-Inspection requirement can be dropped.

The time frame in which the application for the loan gets approved is too long. It almost

takes around 1 year from the time an application is submitted for the first time for

sanctioning of the loan, till the loan is actually disbursed to the beneficiary. Efforts must

be made to reduce this time frame and expedite the process as the business can be started

only after the loan amount is sanctioned. It may also happen that the beneficiaries may

drop the idea of the business in case they do not get funds on time as sustenance of the

business for 1 year without the bank loan may become difficult.

The banks who disburse such loans often suffer from losses as most of these loans

become NPAs. The beneficiaries do not repay the loan as they feel that they need not

bother paying up since it is a government scheme. It may also happen that the borrowers

do not make enough profit out of their ventures so as to enable repayment of the

borrowed money. In this case, the government must step in to compensate banks for the

bad debts.

It has been long argued that microfinance helps in improving the status of women by

providing them with initial capital so that they can support their existence independent

of men. Experts believe microfinance greatly helps starting up microenterprises. Banks

these days simply do not extend loans to everyone who is in need of one. As seen in the

case of Udyogini as well, banks have a discretion to reject applications. The principle

of microfinance believes that even small amounts of credit are sufficient to end the

cycle of poverty. Therefore, Microfinance Institutions (MFIs) can be engaged by the

government to extend loans in case the beneficiary is not able to show sufficient

creditworthiness.

If the women beneficiaries are members of self-help groups (SHGs), then these groups

can be linked to the lending banks under the Self-Help Group Bank Linkage Model.

The SHGs help the poor to access formal systems of savings and credit and also

35

considerably minimise transaction costs of the bank. One of the distinctive features of

this model is that the programme has very high on-time recovery of loans. Since the

non-repayment of loans by the beneficiaries was a major concern of the banks, this

model may help to improve the existing problems of bad debts due to the scheme. Banks

like ICICI Bank and NABARD are active participants of this model.

Beneficiary:

There must be a programme to change the beneficiaries’ attitude towards the repayment

of the loan as they think that since it is a government scheme they won’t be held liable

for the payback. This in turn leads to losses for the banks giving the loans under this

scheme.

Beneficiaries (especially in remote villages) must have contact details of officials in

case they need help or face a problem with regards to the scheme.

12. REFERENCES

36

Anna V. and Pillai N.C. 1990. Women Entrepreneurs in Kerala. Social Change. Vol. 20. 2nd June, 1990.

Devadas, B. and Sikidar, S. 1990. Development of Small and Medium Enterprises: Need for Entrepreneurial

Structure in a Developing Economy. Proceedings of Eighth National Commission of Women

Entrepreneurs. Organised by National Alliance of Young Entrepreneurs. New Delhi.

Information on Gender Budget in Karnataka. http://www.finance.kar.nic.in/bud2009/gbwu-eng.pdf. Accessed on:

5th August, 2016.

Lahiri, A., Chakraborty, L., Lahiri, A., Bhattacharya, P.N., Mukhopadhyay, H., and Bhasin, A. 2003. Gender

Budgeting in India. National Institute of Public Finance and Policy. February 2003.

http://www.nipfp.org.in/media/medialibrary/2014/11/GENDER_BUDGETING_IN_INDIA_1.pdf.

Accessed on: 4th August, 2016.

Karnataka State Women's Development Corporation website:

http://www.karnataka.gov.in/kswdc/Pages/Udyogini-Scheme.aspx. Accessed on: 5th August, 2016

National Mission for Empowerment of Women website: http://www.nmew.gov.in/ . Accessed on: 2nd August,

2016

Singh, N.P., Sehgal, P., Tinani, M. And Sengupta, R. 1986. Successful Women Entrepreneurs – Their Identity,

Expectations and Problems: An Exploratory Research Study. Research Report Serial Two, National

Institute for Entrepreneurship and Small Business Development / Management Development Institute

Collaboration. New Delhi.

Yadav, H. 1998. Problems in Women Entrepreneurship in Eastern Madhya Pradesh.in C. Swarajya Laxmi (ed.)

Women Entrepreneurship in India: Problems and Prospects. New Delhi: Discovery Publishing House.

ANNEXURES

http://www.finance.kar.nic.in/bud2009/gbwu-eng.pdf

http://www.nipfp.org.in/media/medialibrary/2014/11/GENDER_BUDGETING_IN_INDIA_1.pdf

http://www.karnataka.gov.in/kswdc/Pages/Udyogini-Scheme.aspx

http://www.nmew.gov.in/

37

Annexure 1: Form to be filled by Udyogini Applicants

42

Annexure 2: Physical Target vs Achievement 2013-2014

Source: Data provided by KSWDC, Percentage computations done by the author.

District Name Target Physical Achievement Physical Percentage Achievement

Bangalore Urban 1410 731 51.84397163

Bangalore Rural 182 302 165.9340659

Belgaum 847 493 58.20543093

Bijapur 382 94 24.60732984

Bagalkot 337 344 102.0771513

Bellary 450 388 86.22222222

Bidar 298 284 95.30201342

Chamarajnagar 185 84 45.40540541

Chitradurga 203 180 88.66995074

Chikamagaluru 205 173 84.3902439

Chikballapur 230 252 109.5652174

Davanagere 357 271 75.91036415

Dakshina Kannada 380 314 82.63157895

Dharwad 326 209 64.11042945

Gadag 189 100 52.91005291

Kalburgi 470 387 82.34042553

Hassan 320 379 118.4375

Haveri 282 212 75.17730496

Kolar 280 305 108.9285714

Koppala 249 629 252.6104418

Kodagu 100 105 105

Mandya 325 306 94.15384615

Mysuru 544 477 87.68382353

Raichur 345 420 121.7391304

Ramanagara 139 197 141.7266187

Shivamogga 317 275 86.75078864

Tumakuru 478 422 88.28451883

Uttar Kannada 255 219 85.88235294

Udupi 203 206 101.4778325

Yadagir 212 195 91.98113208

2013-2014

43



District Name Target Physical Achievement Physical Achievement Percentage

Bangalore Urban 1760 1760 100


Belgaum 906 1410 155.6291391

Bijapur 411 355 86.37469586

Bagalkot 363 400 110.1928375

Bellary 483 550 113.8716356

Bidar 321 312 97.19626168

Chamarajnagar 195 165 84.61538462

Chitradurga 316 337 106.6455696

Chikamagaluru 219 202 92.23744292

Chikballapur 238 252 105.8823529

Davanagere 368 435 118.2065217


Dharwad 351 308 87.74928775

Gadag 202 213 105.4455446

Kalburgi 484 434 89.66942149

Hassan 345 247 71.5942029

Haveri 300 371 123.6666667

Kolar 293 300 102.3890785

Koppala 265 240 90.56603774

Kodagu 108 121 112.037037

Mandya 347 298 85.87896254

Mysuru 573 509 88.83071553

Raichur 368 426 115.7608696

Ramanagara 207 212 102.4154589

Shivamogga 337 303 89.91097923

Tumakuru 511 520 101.7612524

Uttar Kannada 274 226 82.48175182

Udupi 238 161 67.64705882

Yadagir 224 225 100.4464286

2014-2015

44



District Name Target Physical Achievement Physical Percentage Achievement

Bangalore Urban 1887 1764 93.48171701


Belgaum 970 865 89.17525773

Bijapur 440 366 83.18181818

Bagalkot 388 383 98.71134021

Bellary 519 579 111.5606936

Bidar 343 349 101.7492711

Chamarajnagar 209 232 111.0047847

Chitradurga 339 323 95.28023599

Chikamagaluru 236 231 97.88135593

Chikballapur 254 254 100

Davanagere 396 380 95.95959596


Dharwad 375 363 96.8

Gadag 218 176 80.73394495

Kalburgi 521 491 94.24184261

Hassan 367 390 106.26703

Haveri 322 295 91.61490683

Kolar 315 313 99.36507937

Koppala 286 359 125.5244755

Kodagu 116 151 130.1724138

Mandya 371 333 89.7574124

Mysuru 613 702 114.5187602

Raichur 397 486 122.418136

Ramanagara 220 216 98.18181818

Shivamogga 362 443 122.3756906

Tumakuru 548 529 96.53284672

Uttar Kannada 294 308 104.7619048

Udupi 254 103 40.5511811

Yadagir 242 241 99.58677686

2015-2016

45

Annexure 5: Economic Target vs Achievement 2013-2014

(Figures in Lakhs)


District Name Target Economic Achievement Economic Percentage Achievement

Bangalore Urban 125.57 109.98 87.58461416

Bangalore Rural 16.21 25.39 156.6317088

Belgaum 75.43 41 54.35503115

Bijapur 34.02 7.76 22.8101117

Bagalkot 30.01 30.1 100.2999

Bellary 40.08 24.56 61.27744511

Bidar 26.54 25.31 95.36548606

Chamarajnagar 16.48 7.45 45.20631068

Chitradurga 18.08 15.51 85.78539823

Chikamagaluru 18.26 14.97 81.98247536

Chikballapur 20.48 21.44 104.6875

Davanagere 31.79 23 72.34979553

Dakshina Kannada 33.84 16.2 47.87234043

Dharwad 29.03 16.78 57.80227351

Gadag 16.83 14.55 86.45276292

Kalburgi 41.86 32.02 76.49307215

Hassan 28.5 31.06 108.9824561

Haveri 25.12 17.43 69.38694268

Kolar 24.94 26.4 105.8540497

Koppala 22.18 55.38 249.6844004

Kodagu 8.91 8.2 92.03142536

Mandya 28.95 25.31 87.42659758

Mysuru 48.45 41.12 84.87100103

Raichur 30.73 33.97 110.5434429

Ramanagara 12.38 16.5 133.279483

Shivamogga 28.23 22.8 80.76514346

Tumakuru 42.57 35 82.21752408

Uttar Kannada 22.71 16.03 70.58564509

Udupi 18.08 16.63 91.9800885

Yadagir 18.88 16.21 85.85805085

2013-2014

46


(Figures in Lakhs)


District Name Target Economic Achievement Economic Achievement Percentage

Bangalore Urban 156.33 150.32 96.15556835

Bangalore Rural 16.44 29.18 177.4939173

Belgaum 80.46 14.37 17.85980611

Bijapur 36.51 29.66 81.23801698

Bagalkot 32.24 34.46 106.8858561

Bellary 42.89 41.48 96.7125204

Bidar 28.52 21.57 75.63113604

Chamarajnagar 17.31 14.38 83.073368

Chitradurga 28.09 29.17 103.8447846

Chikamagaluru 19.44 17.26 88.78600823

Chikballapur 21.14 22.84 108.0416272

Davanagere 32.66 35.83 109.7060625


Dharwad 31.2 25.08 80.38461538

Gadag 17.93 17.9 99.83268265

Kalburgi 42.97 36.75 85.52478473

Hassan 30.64 29.63 96.70365535

Haveri 26.64 30.4 114.1141141

Kolar 26.02 26.4 101.4604151

Koppala 23.53 19.59 83.25541861

Kodagu 95.87 9.93 10.35777616

Mandya 30.83 21.9 71.03470645

Mysuru 50.9 43.83 86.11001965

Raichur 32.66 33.74 103.3067973

Ramanagara 18.38 17.45 94.94015234

Shivamogga 29.93 24.47 81.75743401

Tumakuru 45.38 45.04 99.25077126

Uttar Kannada 24.35 17.77 72.97741273

Udupi 21.14 13.08 61.87322611

Yadagir 19.87 19.93 100.3019628

2014-2015

47


(Figures in Lakhs)


District Name Target Economic Achievement Economic Percentage Achievement

Bangalore Urban 166.94 156.9 93.98586318

Bangalore Rural 17.5 20.49 117.0857143

Belgaum 85.8 76.12 88.71794872

Bijapur 39 30.47 78.12820513

Bagalkot 34.34 32.27 93.97204426

Bellary 45.92 48.95 106.5984321

Bidar 30.4 30.03 98.78289474

Chamarajnagar 18.49 20.47 110.7084911

Chitradurga 30 28.16 93.86666667

Chikamagaluru 20.9 20.09 96.12440191

Chikballapur 22.47 22.73 101.1570984

Davanagere 35.03 32.82 93.6911219


Dharwad 33.18 30.3 91.32007233

Gadag 19.31 14.9 77.16209218

Kalburgi 46.11 42.83 92.88657558

Hassan 32.46 33.37 102.8034504

Haveri 28.47 25.01 87.84685634

Kolar 28 28.03 100.1071429

Koppala 25.31 29.8 117.7400237

Kodagu 10.25 12.3 120

Mandya 32.83 27.69 84.34358818

Mysuru 54.21 61.33 113.1341081

Raichur 35.14 31.95 90.92202618

Ramanagara 19.44 18.41 94.70164609

Shivamogga 32.03 35.4 110.5213862

Tumakuru 48.47 45.22 93.29482154

Uttar Kannada 26 24.36 93.69230769

Udupi 22.47 8 35.60302626

Yadagir 21.43 21.4 99.86000933

2015-2016

48

Annexure 8: Interview Checklist for District Office and KSWDC

Q1 What is the number of applications received in the past financial year?

Q2 What was the physical target of beneficiaries in the past financial year?

Q3 How many loans were actually sanctioned by the banks in the past financial year?

Q4 What happens to those applications which cannot be granted loans due to budget constraints?

Q5 What was the endowment from the state?

Q6 Who decides the endowment to be given to each district each year?

Q7 What is the procedure to apply for a loan (first step to last step)?

Q8 What are the reasons due to which an application is rejected?

Q9 What kind of training is provided to the beneficiaries in the area of their business?

Q10 Who is responsible for promotion/advocacy of the scheme?

Q11 Is there any security required against the loans?

Q12 What are the type of businesses which are popular amongst the women entrepreneurs?

Q13 Which businesses are the most successful?

49

Annexure 9: Interview Checklist for Bank

Q1 What is the number of applications received annually?

Q2 What is the average processing time required to pass a request for a loan?

Q3 What is the recovery percentage of loans?

Q4 What kind of enterprises give bad debts?

Q5 What is the amount of loan disbursed to each type of enterprise?

Q6 What is the rate of interest on loans disbursed?

Q7 Is collateral security required for the loans? If yes, then is it possible for women to give

Q8 How the loan amount is disbursed (monthly, quarterly, etc)?

Q9

What is the entry point and end point of the transaction? Where does the

application process begin and where does it end?Q10 Who approves the loan?

Q11 What is the repayment time for loans?

Q12

Repayment of principle plus interest is demanded at the same time? Or payment of the

interest amount in the first instance is considered sufficient?

Q13 Does the unpaid interest gets cumulated to the principle amount?

Q14 Does the KSWDC pay the subsidy to the bank on time?

50

Annexure 10: Questionnaire for Beneficiary

Sr. No. Questions Option 1 Option 2 Option 3 Option 4

1 General Information1 (a) Age of the respondent

1(b) Marital status married unmarried divorced widowed

1 (c ) Literacy level none primary High School higher

1 (d)

How many women members do you have in

your family?

1 (e)

Are the other women members enrolled too?

Nos. enrolled who are above 18 yes no

2 Administrative AspectPre Enrollment:

2(a) How did you get to know about the scheme?

awareness

campaign

(Anganwadi

workers) word of mouth advertisement

other (please

specify)

2(b) If somebody told you, is that person enrolled? yes no

2(c ) How much time did it take to get enrolled? 1-2 months 2-3 months 3-4 months 4 and above

2(d)

Could you follow the procedure to apply for the

scheme ? yes no

Post Enrolment:

3 (a)

How much time does it take for you to get to

the authorities in case of any problem?

3(b) How has the support been from the oficials? poor average good

havent had an

experience yet

3 (c)

Is proper handholding done by the department

officials to make the enterprises run efficiently? yes no

3 (d)

Is any training provided to you in the area of

your business? yes no

3 (d)

What is the average time period between you

applying for a loan and actually reaceving the

money?

3 (e) Who takes the financial decisions at home? self husband elders and family others ( specify)

3 (f)

Is the loan amount sufficient to run the

enterprise? yes no

3 Repayment4 (a) Is the repayment possible on time? yes no

4 (b)

Is the profit after repayment of loan sufficient to

keep the enterprise running? yes no

4

What are the problems you face while

approaching the authority In case of any

problem?Don’t know who

to go to

authorities are

uninterested

long waiting time

affects works hours others ( specify)

5

What changes should be made to make the

scheme more effective

51

Annexure 11: Businesses Permitted under the Udyogini Scheme

1 Book binding and note books manufacturing 2 Old paper marts

3 Chalk crayon manufacture 4 Papad manufacture

5 Jam, Jelly & Pickles manufacture 6 Sari & Embroidery works

7 Woollen weaving 8 Printing & Dyeing of clothes

9 Bedsheet & towel manufacture 10 Silk weaving

11 Ribbon making 12 Bakeries

13 Dry fish trade 14 Dairy & Poultry related trade

15 Footwear manufacture 16 Silk worm rearing

17 Wet grinding 18 Vegetable & Fruit vending

19 Shops & Establishments 20 Canteen & catering

21 Dry cleaning 22 Cut piece cloth trade

23 Newspaper, weekly & monthly magazine vending 24 Crèche

25 Tailoring 26 Readymade garments trade

27 Mat weaving 28 Leaf cups manufacture

29 Shikakai powder manufacture 30 Flour mills

31 Woollen garments manufacture 32 Tutorials

33 Cane & Bamboo articles manufacture 34 Job typing & photocopying service

35 STD booths 36 Handicrafts manufacture

37 Bottle cap manufacture 38 Plastic articles trade

39 Ink manufacture 40 Phenyl & Naphthalene ball

manufacture

41 Soap oil, Soap powder & Detergent cake

manufacture

42 Fax paper manufacture

43 Cotton thread manufacture 44 Nylon button manufacture

45 Vermicelli manufacture 46 Corrugated box manufacture

47 Match box manufacture 48 Jute carpet manufacture

49 Pottery 50 Agarbatti manufacture

52

51 Quilt & Bed manufacture 52 Travel agency

53 Security service 54 Audio & Video cassette parlour

55 Radio & TV servicing stations 56 Library

57 Real estate agency 58 Photo Studio

59 Diagnostic lab 60 Stationery Shop

61 Beauty parlour 62 Bangles

63 Gift Articles 64 Fish Stalls

65 Flower Shops 66 Chappal Manufacture

67 Mutton Stalls 68 Coffee & Tea Powder

69 Pan & Cigarette Shop 70 Tea Stall

71 Edible Oil Shop 72 Fair-price Shop

73 Fuel Wood 74 Silk Thread Manufacturing

75 Typing Institute 76 Milk Booth

77 Pan Leaf or Chewing Leaf Shop 78 Cleaning Powder

79 Condiments 80 Energy Food

81 Ragi Powder Shop 82 Tender Coconut

83 Eat-outs 84 Household articles retail

85 Banana Tender Leaf 86 Ice Cream Parlour

87 Sweets shop 88 Clinic

89 Gym Centre

Source: http://www.karnataka.gov.in/kswdc/Pages/Udyogini-Scheme.aspx

http://www.karnataka.gov.in/kswdc/Pages/Udyogini-Scheme.aspx

53

Annexure 12: Some implementation guidelines for Udyogini:

There should be proper checking on whether the loan amount is used for the said

business/industry mentioned in the application. This checking is done by the bank.

CDPO should get the certificate indicating the ‘usefulness of the money disbursed’

from the bank and the certificates should be mandatorily submitted to the office.

Deputy Directors/Assistant directors should check whether all the people who got the

loan have created any assets out of it by visiting the field and also verify whether the

loan is used dutifully or not and a report should be submitted.

If the loan amount is misused, measures should be taken to collect back the amount.

Measures should be taken that very poor, widows, women in distress, handicapped and

skilled workers, SHG’s associated with Streeshakti and Swashakti programmes take

advantage of this scheme.

Child Welfare Officers, Deputy Director/Assistant Director should take personal

responsibility to ensure this scheme is followed and implemented as per the rules.

The loan application amount of Rs. 5 should be collected and the collected amount

should be paid by September of each year.

Age of the applicants has to be between 18-45.

Income group – Applicant’s (women) annual income should not exceed Rs. 40,000/-

per annum and the relevant income certificate from the Tahsildars office to be verified.

There is no income limit check for women in distress, handicapped women and widows.

Application for loans for already existing businesses/industries is not to be made under

the scheme. They are rejected.

The income certificate should be classified on category as General, SC/ST which should

be certified by the concerned Tahsildars. There is no need to submit income certificate

for women in distress, widows and handicapped women. But there should be a

confirmation certificate saying the woman is in distress or a widow or a handicapped

woman. A recent photograph must also be submitted along with the form.

Very poor, widows, women in distress, handicapped women and skilled workers are

given priority in this scheme. Also the candidates who have taken training from this

department or any other professional/skill development authority, will be given priority.

The others who are given priority are the women enrolled under the Swashakti scheme

which is being implemented from this corporation and the Streeshakti scheme which is

being implemented from the respective state department. Both the schemes are operated

with the help of World Bank to strengthen the development of women with the help of

Self Help Groups (SHGs).

implementation of ‘udyogini’ - … of udyogini, ... there are a variety of personal, economic,...

Documents