45

CHAPTER III

OVERVIEW OF DHARMAPURI DISTRICT

AND SELF-HELP GROUPS

Dharmapuri earlier known as Tagadur is bestowed with the bountiful

Western Ghats. The total geographical area of Dharmapuri district is 4497.77

sq.km. This accounts for 3.46 per cent of the geographical area of Tamil Nadu.

Geographical Coverage

Dharmapuri district, which came into existence on 02.10.1965 is situated in

the North Western Corner of Tamil Nadu and is bounded by Tiruvannamalai and

Villupuram Districts on the East, Salem District on the South, Krishnagiri District

on the North and Kaveri river on the West. It is located between latitudes N 11 47‟

and 12 33‟ and longitudes E 77 02‟ and 78 40‟. The average annual rainfall of the

district is 857 mm. The major source of irrigation is by way of dug wells.

Demographic Profile

Population density of Dharmapuri district is 332 per Sq.Km as per census

2011. The sex ratio was 946 female for 1000 male. The male and female

population are 7, 72,490 (51.4 per cent) and 7, 30,410 (48.6 per cent) respectively.

The literacy rate in Dharmapuri District is 64.71 per cent, that is male 69.16 and

female 60.03 per cent as per census 2011.

46

Population census

A census is undertaken for once in ten years. This shows the upward or

downward trend in the human capital stock of a nation. This determines the

eligible workforce of a nation, its market and competitive advantage in the

international labour market.

Table 3.1

Population Census - 2011

Sex

Population

Percentage

Region

Population

Percentage

Male

7,72,490

51.4

Rural

12,42,519

82.7

Female

7,30,410

48.6

Urban

2,60,381

17.3

Total

15,02,900

100

Total

14,82,900

100

Source: www.dharmapuri.tn.nic.in/profile.htm

Table 3.1 indicates that 82.7 per cent of population of Dharmapuri district

lives in rural areas. This is the clear proof of the need for SHGs and Micro-

enterprises to increase the living conditions of the poor.

ADMINISTRATIVE SETUP

There are 29 District Panchayats, 385 Panchayat Union Councils and

12,618 Village Panchayats in the State, Town Panchayats from Urban Local

Bodies (ULBs) being Special Village Panchayats (SVPs). This modification has

47

brought in two categories of Gram Panchayats in Tamil Nadu, the Gram

Panchayats and Special Village Panchayats.

Dharmapuri District

District Panchayat

(29)

Panchayat Union Councils

(385)

Village Panchayats

(12,618)

There are 8 blocks in Dharmapuri District, namely Dharmapuri,

Karimangalam, Nallampalli, Pappireddipatty, Harur, Morappur, Palakkodu and

Pennagaram. There are 251 village panchayats and 10 town panchayats in the

district (Pennagaram, Paprapatti, Kadathur, Kambainallur, Pappireddipatty,

B.Mallapuram, Palacode, Marandahalli, Karimangalam and Harur.)

48

Figure 3.1

Dharmapuri District Map

Source: www.tn.maps.tn.nic.in/blocks.php

49

Table 3.2

Geographical Area

S.No.

Taluk Name

Geographical Area

In Hectares

Percentage

1

Dharmapuri

78,451

17

2

Pennagaram

1,13,027

25

3

Palacode

73,267

16

4

Harur

1,10,354

25

5

Pappireddipatti

74,678

17

Total

5,62804

100

Source: www.dharmapuri.tn.nic.in/profile.htm

The district has been divided into five taluks, the biggest one being

Pennagaram, followed by Harur. Pennagaram block has the highest area

(1, 13,627) under its courage. Palacode has the lowest area (73,267 Hec.)

Agriculture

The district economy is mainly agrarian in nature. Nearly 70 per cent of

the workforce is dependent on agriculture and allied activities. The district is one

among the most backward and drought prone areas in the state.

50

Agriculture Crops in Dharmapuri District

Each area has a district soil type and biome, in general. As Dharmapuri is

water-scarcity area and most of the lands are major (rain fed crops), the small

grains are suitable crops to be cultivated in this region. Now-a-days, there is a

shift towards increasingly use of small grains in food. This is expected to boost

the agrarian economy, if care would be provided to this segment.

Table 3.3

Agriculture Crops

1. Area under Paddy (Hectare) In hect. Percentage

Sornavari / Kuruvai / Kar 2726 01.60

Samba / Thallady / Pisanam 5533 03.30

Navarai / Kodai 1206 00.70

Total (A) 9,465 05.60

2. Millets (Ragi) 18,243 10.80

3. Other Minor Millets 69,162 40.90

4. Pulses 40,441 23.90

5. Sugar Cane 11,971 07.10

6. Mango 6,506 03.80

7. Coconut 7,037 04.20

8. Tamarind 1,197 00.70

9. Other Crops 5,067 03.00

51

Total (B) 1,59,624 94.40

Total Cropped area (A+B) 1,69,089 100.00

A) Net Area Sown 1,53,322 90.70

B) Area sown more than once 15,767 09.30

Source: www.dharmapuri.tn.nic.in/profile.htm

Table 3.3 illustrates the various agricultural crops raised in Dharmapuri

district. Paddy cultivation is only 5.6 per cent of total crop cultivation. Millets

(Ragi), other mionor millets and pulses account for 75.6 per cent.

History of Dharmapuri District1

It is one of the ancient parts of the Kongu Nadu kingdom. The earliest

known chieftain, who ruled Tagadur (present Dharmapuri) during the Sangam era,

was Adyaman Naduman Anji, whose patronage helped the famous poetess

Avvaiyar.

The forts of the greatest strategic importance held by the Gathi Mudaliars

were Omalur and Attur. Several places in Coimbatore were taken by Kantirave

Narasa Raja of Srirangapatinam from Gathi Mudaliars in 1611. After 11 years, he

seized Baramahal including Viralahadradurg, Pennagaram, Dharmapuri and

Denkanikotta in 1654. He took over Hosur from Chandra Sankar Dodda Devaraju,

the king of Mysore wrested Omalur from the Gathi Mudaliars and thus erased

1 www.en.wikipedia.org./wiki/dharmapuri

52

them out of political scene. The aggression of Marattas, however, checked the

power of the Mysore Kings. For a time Baramahal and Talaghat passed into the

hands of Marattas.

The present Dharmapuri district was then a part of the Salem district.

During the British rule in the country and up to 1947 Dharmapuri was one of the

Taluks of Salem District. The Dharmapuri district was formed as a separate

district on 02/10/1965 with its headquarters at Dharmapuri located in Northern

Tamil Nadu. Dharmapuri town is historically called "Thakadoor".

Horticulture

Dharmapuri district forms a major horticultural belt in the state. As the area

is drought prone, it has become essential to switch over to cultivation of drought

tolerant perennial fruit crops in this district. Mango being the main horticulture

crop of the district has the highest area under the cultivation of fruit crops. The

district accounts for nearly one-third area under mango and nearly one-half of the

mango yield in the state. Palacode and Pennagaram areas are known for

cultivation of tomato and chilli respectively.

Mineral Resources

Dharmapuri district is endowed with sizeable reserves of granite. High

quality black granite is available in Pennagaram, Harur and Palacode

blocks. Quartz is available at Kendiganapalli Village of Pennagaram Taluk,

A.Velampatti of Harur taluk and Pethathampatti of Pappireddipatti Taluk. Another

high value mineral Malibdinum available here is at Harur.

53

Mahalir Thittam

Mahalir Thittam 2

scheme has envisaged 17 NGOs for formation and

nurturing of SHGs in the district. These NGOs are very active in nurturing the

groups and providing credit link to bolster economic activities. Most of the bank

branches are financing SHGs. Indian Bank, the Lead Bank of the district, has

opened micro satellite branch and credit counseling centre at Dharmapuri.

Micro finance profile in the District

Micro finance is the small amount of finance allotted to a particular group

for its successful operation or running of a business. Self-Help Group, being the

carrier of economic and social independence, is provided micro-finance by

various banks and NGOs are keen in SHG‟s getting this fund. This may

strengthen the self-reliance of people of Dharmapuri. SHGs have to be linked to

a bank branch for receiving continuous patronage from the banks.

The following table gives some statistics regarding profile of Micro-Finance in

the study area.

2 Source: Potential linked Credit Plan 2012-13, pp. 68 – 69

54

Table 3.4

Micro Finance Profile

1 Total number of blocks in the district 8

2 No. of blocks where SHGs exist 8

3 No. of blocks where SHGs are credit linked 8

4 No. of NGOs in the district NA

5 No. of NGOs participating in the linkage

Programme

125(approx)

6 No. of additional NGOs to be roped in

during the year

5

7 Total No. of bank branches in the district 100

8

Of which No. of branches participating in

the linkage Programme

82

9

No. of additional branches participating in

the linkage programme

5

10 No. of Govt./post offices/other agencies

participating

-

11 No. of Govt. /post offices/other agencies

likely to participate

2

12 No. of SHGs in the district 16,000

13 No. of SHGs savings linked in the district 16,000

14 No. of SGS credit linked 16,000

15 No. of SHGs taken up micro enterprises 1,200

Source: Potential linked Credit Plan, 2012-13, pp. 68 – 69.

55

Table 3.4 shows that approximately 125 NGO‟s participate in the micro-

finance profile in Dharmapuri district. 82 bank branches actively engage in the

linkage programme 16,000 SHGs are linked to credit in this district. Only 1,200

SHGs have taken up micro-enterprising activities.

Credit Disbursed to Self-Help Groups

In Dharmapuri district, SHG-Bank linkage is taking place in all the eight

blocks and all the banks except District Central Co-operative Bank (DCCB).

Table - 3.5

Micro-Finance Credit Disbursed to Self-Help Groups

Year

No. of SHGs Credit Disbursed

(Rs. In lakhs)

Per group average

loan (Rs. In lakhs)

2004-05 4858 5,192.28 1.069

2005-06 5016 6111.98 1.218

2006-07 6495 10030.89 1.544

2007-08 7504 13043.96 1.738

2008-09 9228 14189.04 1.573

2009-10 8516 17993.78 2.11

2010-11 9607 24582.41 2.56

Source: NABARD, Potential linked credit Plan, 2005-2012, p. 10

Table 3.5 presents the position of 4858 SHGs in 2004-05 with the credit

disbursal of Rs. 5192.28 lakhs. There has been a four times increase in the credit

disbursed (Rs. 24582.41 lakhs) in 2010-11.

56

Overview of SHG in Tamil Nadu State

Tamil Nadu3

is ranked the second in the country, after Andhra Pradesh,

in SHG-Bank linkage Programme. Wide Network of NGOs, encouraging

support of banks and government agencies helped wide spread expansion of the

programme in the state. Regular savings, maintenance of books and accounts

and internal lending are the major factors determining the credit absorption

capacity of the groups.

During 2008-09, 161069 SHGs have been credit linked with a bank

loan of Rs.1,419.68 crores in the State. The cumulative number of SHGs credit

linked potential was Rs. 6,603.05 crore. Mahilir Thittam is a socio-economic

empowerment programme for women implemented by the Tamil Nadu

Corporation for Development of Women Ltd., Mahilir Thittam is based on

SHG approach and it has been implemented in partnership with community

based NGOs. As on 31st March 2009, there were 391927 SHGs under Mahalir

Thittam with a total savings of Rs. 2,211.12 crore.

During 2010-11, 98,992 SHGs have been credit linked with a bank loan

of Rs. 989.66 crores in Tamil Nadu. The cumulative number of SHGs credit

linked in Tamil Nadu as on 31st

March 2011 stood at 9,51,783 with an

aggregate bank loans of Rs. 10,384.36 crore. 251 programmes for Rs. 61.80

lakhs were sanctioned, taking the cumulative sanctions to 1444 MEDP (Micro

3 Potential linked credit plan, NABARD, 2010-11, and 2012-13, pp. 62 and 67

57

Enterprise Development Programme) with an assistance of Rs. 292.76 lakhs for

training over 32,000 matured SHG members in 2010-11.

Micro finance profile

NABARD4 has been the leader in the microfinance programme for the

past many years. It has been acting as a catalyst for the banking system for the

country to join hands with informal delivery channels to give SHG-bank linkage

programme the required momentum.

Under Micro Enterprise Development Programme (MEDP),

NGO/Voluntary agencies can be reimbursed for conducting remunerative skill

development programmes which could be upto a maximum duration of 13 days.

The maximum grant available is Rs. 30,000. Tamil Nadu is the leading state in

the country for the conduct of MEDP. During 2006-07, 173 MEDP were

sanctioned to the tune of Rs. 42.13 lakhs. In all the training programmes viz.,

Micro Enterprise Development Programme (MEDP), Small Development

Institutions (SDI) the preference was given to women beneficiaries.

The micro finance programme in India has emerged as not only the largest

in the world having covered about 9.7 crores poor households as on 31st

March

2010 but also the main contributor towards financial inclusion in the country. In

fact, the informal system has been recognized as a mass movement and the

synthesis between the formal system and the informal sector. It has also become

4 Potential linked credit plan, NABARD, 2008-09, p- 65

58

the common vehicle for development process, converging all developmental

programmes.

Apart from inculcating normal banking practices among the poor, this

movement has also taught the poor about the ethics of saving, maintenance of

books and accounts, internal lending, repayment ethics, led to an overall increase

in credit absorption capacity of the rural clientele, and helped in strengthening the

Small micro enterprise sector (SME). As on 31st March 2010, there were 69.53

lakhs saving linked SHGs, of which more than 48.51 lakhs groups are credit

linked with an outstanding bank loan of Rs. 28,038.28 crores in the country.

As on 31st

March 2011, an amount of Rs. 51.06 crores was released to

various Self - Help Promoting Institutions (SHPIs) resulting in formation of 4.01

lakhs SHGs. Five hundred crores corpus fund created as Women SHGS

Development Fund‟ would be maintained by National Agricultural Bank for Rural

Development (NABARD). This is used to refinance bank for lending to women

SHGs.

MFI - Bank Linkage

There are four Micro Finance Institutions, namely, Sangamitra, Udjeevan,

Gramavidyal and Kaveri credits functioning in Dharmapuri district. Sangamitra

promoted by Mysore Resettlement and Development Authority (MYRDRA)

works in Pennagaram, Palacode and Dharmapuri blocks. It also extends financial

assistance to the SHGs promoted by MYRDRA and other NGOs. Sangamitra has

extended financial assistance to Rs. 15 crores to SHG members in unbanked areas.

59

Means for Expansion of Linkage programme

As per the Management Information System (MIS) report of Mahalir

Thittam (MATHI), only 228 out of 374 total SC/ST habitations and only 14,457

SC/ST members out of the total population of 3,95,144, have so far been covered

under SHG in the district, indicating the gap and scope for group formation and

linkage. Further, it is reported that only 2,111 habitations/wards in the district are

covered by SHGs.

In Dharmapuri district, the linkage with 2,912 SHGs was worth Rs. 25.11

crores during 2003-04, which improved to 4,858 SHGs and Rs. 51.92 crores

during 2004-05. This further increased to the linkage of 5,016 SGHs with Rs. 61

crores during 2005-06, indicating the growth over the previous years.

Every year, NGO and their staff have to be trained to equip them to guide

the SHGs properly. If bank branches function as SHPIs, (Self-Help Group

Promoting Institutions) the SHG linkage programme will be more sustainable and

successful in all aspects. But in the present context of acute staff problem the

branches are constrained to function as SHPI.

The existing rating norms are adequate to select the SHGs for different

linkage. For SGSY, linkage ratings are done at block level by District Rural

Development Agency, (DRDA) Mahalir Thittam bank, (MATHI) and Non-

Government Organizations (NGO) representatives. For direct linkage, the

concerned branch manager is conducting the rating on a regular basis. The rating

alone is not sufficient but regular desk and field monitoring can further groom the

SHGs to perform in an efficient way and get easy credit access and other supports.

60

Status of women

During the early period of development planning, a woman as a group has

not been given any importance and they were more or less neglected. Since the

Sixth Five Year Plan empowerment of women has been high on the development

agenda of both the State and Central Governments. To empower is to allow

participation and give equal power in decision-making to all the women,

especially to those who have traditionally been kept out of business and

entrepreneurial activities.

Financing Activity Based on SHG

The SHG movement has emerged as “the largest and the fastest growing

micro-credit programme in the world”. The basic elements of SHG concept are

promotion of thrift, granting of loans among the group members and recovery

thereof. It instills in them the requisite banking habits. Various studies have shown

that promotion of SHGs not only helps the banks in reducing their transaction

costs but also improves the recovery performance.

Self-Help Group – Bank Linkage

The SHG-Bank Linkage Programme is one of the major initiatives of

NABARD, which has made a difference in the lives of millions of poor in the

country contributing to the process of economic growth in the rural areas. Today,

this unique initiative in India, with more than 2,800 partners, has blossomed into

the fastest growing and the most cost effective micro finance initiative in the

world, enabling 70.1 million poor households to have access to sustainable

61

financial services from the banking system, through a network of over 50.09 lakhs

SHGs. The banks have now recognized SHG Bank linkage as a new dimension of

quality lending and apart from banks; other institutions like post offices associate

themselves with this movement.

NABARD has formulated a scheme that integrates the multi-departmental

efforts to support activity-based groups to help formation and nurturing of groups

engaged in similar economic activities to improve the efficiency of their

enterprises and for getting better terms from the market through economics of

aggregation and scale.

The scheme envisages grant cum loan component wherein the loan

component can be considered for developing common infrastructure. The salient

features of the scheme have been circulated. Policy Initiative of State

Government includes that Self Help Groups willing to undertake income-

generating activities for transgender will be provided its loans upto Rs. 1.5 lakhs

with subsidy component of 25 per cent.

Financing Joint Liability Groups of Tenant Farmers / Micro

entrepreneurs

Financing of Joint Liability Groups (JLGs) is an effective credit product for

the mid segment group i.e. Small and Marginal Farmers, Tenant Farmers, Share

croppers, Oral Lessees, Micro entrepreneurs and artisans. The Joint Liability

Group (JLG) is an informal group comprising of 4 to 10 individuals coming

together for availing bank loan on individual basis or through group mechanism

against mutual guarantee. Generally, the members of a JLG would engage in

similar type of economic activity in the agriculture and allied Sector.

62

The members would offer a joint undertaking to the bank that enables them to

avail loans. NABARD in association with RBI has formulated and circulated the

guidelines for financing JLGs of tenant farmers/micro entrepreneurs.

Entrepreneurial Activitie

For the first time, two projects based Micro Enterprise Development

Programme (MEDPs) viz., Native Bee keeping in Tuticorin District and Sanitary

Napkin Making in Madurai district were sanctioned..

Mahalir Thittam, NABARD, THADCO and other institutions are

conducting special training programmes for Skill Development/Skill Up

gradation for SHGs to equip them to set up micro enterprises. Under SGSY Infra

scheme, few SHGs got assistance for infrastructure and marketing support.

State Bank of India proposes to open a microstate branch at Palacode to

extend micro credit to SHG members. Vanavil farmers clubs formed 2 SHGs,

NABARD, MATHI and THADCO organize skill development trainings for

SHGs to equip the SHGs to set up micro enterprises. The Non-Performing Assets

in SHG‟s portfolio are also increasing gradually. It is mainly due to dual or

multiple membership and availing micro credit from various sources by one

individual and used the credit for consumption purposes only.

63

HISTORY AND SELF-HELP GROUP MOVEMENT IN INDIA

Self-Help Groups (SHGs) was first created in MYRADA project of 1985.

In 1986-87, there were some 300 SHGs in MYRADA‟s projects. Many SHGs had

emerged from the breakdown of the large cooperatives organized by MYRADA.

In these areas, a number of members asked MYRADA to revive the credit system.

The groups are formed in the range of 15-20 members. When reminded of the

loans they had taken out from the cooperative, they offered to return them to

MYRADA, but not to the cooperative, which in their experience was dominated

by a few individuals. MYRADA staff suggested that they returned the money to

themselves.

The first SHG was started in 1985 to the inclusion of the SHG strategy in

the annual plan for 2000-01 (Government of India, 2000). Several important steps

were taken by the National Bank for Agriculture and Rural Development

(NABARD), the Reserve Bank of India (RBI) and leading NGOs and multilateral

agencies, particularly IFAD (International Fund for Agricultural Development.

The SHG strategy is an important component of the Government having overall

thrust to mitigate poverty and has been included in every annual plan since 2000.

This period of 20 years can be divided broadly into two phases.

During this phase largely omitted in recent studies, NABARD focused on

supporting NGO initiatives to promote SHGs and on analyzing their potential and

performance. In 1987, NABARD first put funds into the SHG movement (in

response to a proposal from MYRADA submitted in 1986). In 1987, it provided

MYRADA with a grant of 1 million Indian rupees to enable it to invest resources

64

to identify affinity groups, build their capacity and match their savings after a

period of 3-6 months. The grant was based on MYRADA‟s experience in

promoting SHGs since 1985 and the initiative of the NABARD chairperson at that

time, Shri P.R. Nayak. As a result, the feedback from this initiative, in 1989

NABARD launched an action research project in which similar grants were

provided to other NGOs.

SHG Strategy – An Alternative Credit Model

After an analysis of this action research, and owing to the efforts of

successive NABARD, chairpersons and senior management, in 1990, RBI

accepted the SHG strategy as an alternative credit model. NABARD (1992) issued

guidelines to provide the framework for a strategy that would allow banks to lend

directly to SHGs. Based on these initial experiences, the SHG-Bank Linkage

Programme was launched in 1992. Since then, based on its extensive network of

officers NABARD has promoted and monitored the SHG programme, provided

funds for capacity building and innovation, and helped change policy to create an

enabling environment.

Women Empowerment Project

The Tamil Nadu Women Empowerment Project, an IFAD-supported

project implemented through the Tamil Nadu Women Development Corporation,

was the first project in the country, in about 1990, to incorporate the SHG concept

into a state sponsored programme. MYRADA is expected to play a lead role in

Dharmapuri District. This was a year or more before the launch of the SHG-Bank

Linkage Programme. The empowerment of women was sought through SHG

65

strengthening, with capacity-building modules, and through the provision of credit

for income-generating activities.

MYRADA (Mysore Resettlement and Development Authority)

MYRADA was originally the acronym of the Mysore Resettlement and

Development Agency, but now the official name is now MYRADA. It is a large

NGO with 487 staff working directly with 1.5 million poor people. “Building Poor

People‟s Institutions” is its short mission statement. It manages 15 major projects

in three Indian states and has major involvement in three others, where it has

seconded staff to government and conducts regular training and visits. MYRADA

has founded a Micro-Finance Institution (MFI) called Sanghamithra.

NGO Initiatives

Taking into consideration, the failure of various attempts by formal credit

unions, cooperatives and the RRBs, and the plight of the rural poor, as far as credit

needs are concerned, NGOs started organizing them into community based

organizations known under different names, like credit unions, Mahila Mandals

and Mahila Samajams. Experience shows that the key to success of these groups

and organizations lies in ensuring full cooperation and participation of people at

the grassroots level.

Under various poverty alleviation/eradication efforts, these days, both by

the Governments as well as NGOs, several types of community based

organizational structures have come up throughout the country enabling the poor

women to get out of the clutches of moneylenders.

66

The grassroots level women‟s collectives, better known these days as the

SHGs, are the primary unit, common to most of the NGOs in terms the

„empowerment wing‟ of the women‟s movement. The women‟s collective role has

been accepted by NGOs as a standard entity at the village level, consisting of 10 or

even as many as 60 women.

Some of the Women‟s NGOs who had taken initiatives in this field were

Cooperative Development Foundation (CDF), Andhra Pradesh; Working Women's

Forum (WWF), Tamil Nadu; Self Employed Women's Association (SEWA),

Gujarat; and Women's Development Programme (WDP), Rajasthan. Besides the

above NGOs, there were others like the Mysore Resettlement and Development

Agency (MYRADA) in Karnataka; the Professional Assistance for Development

Action (PRADAN) in Tamil Nadu; the Rayalseema Seva Samithi (RASS) and

Youth Charitable Organization (YCO) in Andhra Pradesh; the Utkal Mahila

Sanchaya Vikas (UMSV) under the aegis of People's Rural Education Movement

(PREM); the Gram Vikas in Orissa. This initiated the self-help dynamics in their

social development activities. There is several other NGOs in letter followed suit

throughout the country.

Indian system of SHG model

The SHG system in India is much more than a micro-credit concept. There

is a marked difference between the concepts of SHGs, as it exists in India and

Bangladesh. The SHGs in India, as developed by NABARD starts with saving and

then to credit however, the SHGs of Bangladesh starts with credit and then saving.

67

One of the fastest growing sectors of India, microfinance, is spearheading

intense competition among the largest players. By the end of March 2007,

microfinance institutions expanded their outreach to 50 million households and

about 36.8 million borrowers. These institutions are organized under three models:

SHG, Grameen model/Joint liability groups and Individual banking groups as in

cooperatives.

NON-Government Organizations/Voluntary Agencies (NGO/VAs)

There are about 17 major NGOs /VA (Voluntary Agencies) approved by

Mahalir Thittam, functioning in the district involved in the formation and

maintaining SHGs and taking up other activities such as health, sanitation,

watershed and literacy. Apart from these NGOs, there are about 100 NGOs not

approved by Mahalir Thittam also functioning in the district. They take up group

formation, credit linkage and address other social issues also.

The block wise details of NGOs functioning in the District and the number

of SHGs credit linked during 2010-11 are as under:

68

Table 3.6

Details of Functioning of NGO’s

Name of

NGO

Area of

operation

Expertise Service

provided

Infrastructure

available

DEEPS

Pennagaram

and Palacode

Address

social issues

and soil and

waters

conservation

Watershed

development

SHG Bank

linkage

Own office with

required

infrastructure

four wheeler

SEEDS

Nallampalli

and

Pennagaram

Address

social issues

and soil and

waters

conservation

Watershed

development

SHG Bank

linkage

Office in rented premises with

required

infrastructure

four wheeler is

available

MYRADA

Dharmapuri, Pennagaram

and kadathur

Micro-credit

SHG Bank

linkage

Office in rented

premises

POWER

Dharmapuri and

Kambainallur

Micro-credit

SHG Bank

linkage

Office in rented

premises

VPDP

Dharmapuri

and

Pennagaram

Micro-credit

SHG Bank

linkage

Office in rented

premises

DRCS Pennagaram and Dharmpuri

Micro-credit SHG Bank linkage

Office in rented premises

PPDC

Dharmapuri and

Karimangalam

Micro-credit

SHG Bank

linkage

Office in rented

premises

SPEED

Dharmapuri

Micro-credit SHG Bank linkage

Office in rented premises

IRDT

Palacode

Micro-credit SHG Bank linkage

Own building

DEEPAM

Harur

Micro-credit SHG Bank

linkage Office in rented premises

69

IVDP

Palacode

Health Education

and Micro-

credit

SHG Bank

linkage,

watershed

Own office and training centre

at Hanumantha

puram

SEARCH

Karmangalam

Health THAI project

Own office at Karimangalam

Source: Potential Linked Credit Plan NABARD 2008-09, p. 141

Table 3.6 portrays the expertise service, provided and the actual physical

infrastructure available, Deeps and seeds have developed an expertise in watershed

development and SHG Bank linkage. MYRADA, power and DRCS have

developed SHG Bank linkage.

A farmers Club mobilized local support and brought a High School to their

village.

Following are the brief accounts of major NGOs functioning in the district.

Table- 3.7

Functioning of Major NGO’s

Name of

NGO

H.Q

Expertise in

Service

Provided

Infrastructure

MYRDRA

Hosur

SHG, Health

and Education

Watershed

SHG linkage, training, MFI,

cluster

promotion

Own building

training facility

vehicle PCs

IVDP

Krishnagiri

SHG, Rural Housing

Sanitation and

watershed

SHG linkage, social

mobilization,

cluster activity

Training facility

vehicle PCs

AID

Pappireddipatty

SHG and

Health

SGH linkage

Own building with training

facility

IRDT

Papparappatty

SHG, Health and organic

farming

AHG linkage, organic

agriculture

Own building and a model

farm PC

SPEED B. Agraharam SHG SHG linkage Vehicle and PC

70

DEEPS

Pennagaram

SHG,

watershed,

health, female

infanticide and

literacy

SHG linkage,

social

mobilization

and training

Training

facility, trained

man power and

PCs vehicles

DHARMAS

Palacode

SHG, Health, literacy and

watershed

SHG linkage and social

Mobilization

Training facility and PCs

vehicles

POWER

Dharmapuri

SHG, Health,

Literacy,

SHG linkage and Social

Mobilization

PC and Vehicle

DEEPAM

Harur

SHG

SHG linkage, Social

Mobilization

PC and Vehicle

MSET

Harur

SHG

SHG linkage, Social

Mobilization

PC and Vehicle

RDS

Kadathur

SHG, Health

SHG linkage, Social

Mobilization

PC and Vehicle

SEEDS

Nallampalli

SHG, Health

SHG linkage, Social

Mobilization

PC and Vehicle

IED

Dharmapuri

Entrepreneurshi

p Development

SHG linkage, Social

Mobilization

Training facility

and PC

RIDS

Karmangalam

SHG, Health,

Watershed and

Education

SHG linkage,

Social

Mobilization

Training facility

and PC

BSVD

Palacode

SHG, Health,

Watershed and

Education

SHG linkage,

Social

Mobilization

Training facility

and PC

VPDP

Dharmapuri

SHG, Health

SHG linkage, Social

Mobilization

Training facility

and PC

Source: Potential Linked Credit Plans, NABARD, 2012-13, p.71

71

Table 3.7 contributes that various NGOs specialized in SHG, health,

education and entrepreneurial development have promoted SHGs and in addition,

they have rendered valuable services in terms of training to Self-Help Group

members. The infrastructures created by them were of under the satisfactory level.

Dharmapuri is one of the backward districts of Tamil Nadu and the Self-

Help Groups have played a lead role in the rejuvenation of women and the

regeneration of the economy of the district. In a nutshell, SHGs have become the

change agents of the lives of thousands of people in this study area.

OVERVIEW OF SHGS AT TAMIL NADU LEVEL

Tamil Nadu has a detailed road map for the development of Self-Help

Groups and strengthening the state economy. It firmly believes that this model

would serve as a successful alternate model for targeting the poverty. The plan

should materialize into action. This would facility into a stronger region with

huge market potential for the development momentum to move on.

Table 3.8

Plan of New Group Formation

S.No District No. of New

Groups to be

formed

No. of New

Groups

formed

Percent of

Achievement

1 Kancheepuram 600 1297 216

2 Thiruvallur 325 804 247

3 Vellore 550 384 70

4 Thiruvannamalai 250 260 104

5 Dharmapuri 250 341 136

72

6 Krishnagiri 175 174 99

7 Salem 825 889 108

8 Namakkal 475 585 123

9 Erode 1325 2032 153

10 Coimbatore 1300 1599 123

11 The Nilgiris 275 536 195

12 Cuddalore 400 605 151

13 Villupuram 375 704 188

14 Thanjavur 550 966 176

15 Nagapattinam 200 522 261

16 Thiruvarur 175 409 234

17 Thiruchirapalli 425 418 98

18 Perambalur 150 180 120

19 Pudukkottai 200 175 88

20 Dindugal 600 1318 220

21 Karur 275 364 132

22 Madurai 300 172 57

23 Theni 550 316 57

24 Ramanathapuram 175 92 53

25 Virudhunagar 225 257 114

26 Sivaganga 300 136 45

27 Tirunelveli 900 1340 149

28 Tuticorin 475 1230 259

29 Kanyakumari 1400 3349 239

Total 14025 21454 153

Source: – http://www.tamilnaduwomen.org/statusreport.php

73

Table 3.8 provides the new group formation and the percentage of

achievement. There has been overwhelming response in many districts. A very

few districts lay behind in the execution due to varied socio-economic factors

operating in those areas. An awareness campaign may encourage the women to

join SHG and would lead to the formation of more SHGs in our state. This may

be way out for the people reeling under absolute poverty.

DHARMAPURI BLOCK WOMEN SELF SELF HELP GROUP

Members of Naga Sakthi women forum at Pidamenari was started on 24-8-

2011. It has been developed by adhiyaman community development society

(ACDS), pidemaneri, Dharmapuri district. It is linke with Lakkayampatti primary

agricultural credit society, Dharmapuri.

74

Photo Gallery: Mahalir Thittam 8 blocks in Dharmpuri District

75

HARUR BLOCK

Saraswathi Magalir Mandram in Harur block

MORAPPUR BLOCK

Workmen Self-Help Groups, Morappur

76

PAPPIREDDIPATTI BLOCK

Mullai Magalir Mandram in Pappireddipatti Block

NALLAMBALLI BLOCK

Arivoli Muthamil Mandram Jettyhalli to form at women Self-Help Groups

Receiving loan from Primary Agricultural Credit Society, A.Jettyhalli,

Nallamballi block

77

PALACODE BLOCK

Vepilaikari Women Mandram at Palacode Block

Women Self-Help Group Members receiving a check from Co-operative

credit society for their achievement

KARIMANGALAM BLOCK

Kumbarahalli Mahalir Mandram - Karimangalam

Sanctioning the loan in Kumbarahalli Women Self-Help Group Members

Receiving from Primary Agricultural Co-operative Credit Society.

78

PENNAGARAM BLOCK

Women Self-Help Group members in pennagaram block

a) Sakthi Mahalir Mandram, Indoor- Pennagaram block

b) Self-Help Group Meeting

The deliberation about SHG activities and its future is on progress

79

Dharmapuri economy is agrarian in nature. It shares its border with

Karnataka Hokkanakkal, the famed waterfalls located in Dharmapuri district,

which is on the border of Karnataka state. Many a men migrate to Bangalore in

Karnataka eyeing on the green pastures on the other side. Even after twelve five

years plans rolled over taming of the grass root problem of poverty and

empowering women remain elusive.

Rural Dharmapuri is the home for many people in this district. The real

development of a nation is possible only with balanced regional growth as

propounded by Prof. Nurkse, the great economist of yester years. Of the various

development models, Self-Help Group model proves to be an effective one in

addressing the socio-economic issues of concern of a civilized society aimed at

development.