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LATEST NEWS UPDATES | Kudumbashree, National Rural Mission to sign pact for services

Kudumbashree, National Rural Mission to sign pact for services

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published Published on Sep 26, 2011   modified Modified on Sep 26, 2011

-PTI

 

Kerala-based, all-women micro-lender Kudumbashree will soon sign a pact for providing consultancy services to the National Rural Livelihood Mission with the objective of scaling up this flagship programme of the Rural Development Ministry.

Under the soon-to-be-inked agreement with the National Rural Livelihood Mission (NRLM), a flagship programme of the Rural Development Ministry, Kudumbashree will offer its micro-enterprise consultancy services to the mission.

"Kudumbashree will soon be signing a Memorandum of Understanding with the NRLM of the Union Rural Development Ministry. Under this, we will be offering our micro-enterprise consulting services to the mission," Kudumbashree Executive Director Sarada Muraleedharan told PTI over the phone from Thiruvananthapuram.

"Kudumbashree has been asked to function as a resource agency for scaling up the NRLM initiative and an MoU is being entered into between the mission and us shortly to take this programme to other states," she explains.

The micro-lender, credited for revolutionising Kerala's rural economy in 90s, is involved in rural economy development, one of the core principles of Gandhian philosophy, which envisages every village being a self-sustained unit.

It was launched in 1998 as a joint programme of the Kerala government and the National Bank for Agriculture & Rural Development to remove absolute poverty through concerted community action under the leadership of local self-government bodies.

It is one of the largest women-empowerment projects in India today, with four million women members, and covers over 50 per cent of Kerala households.

Kudumbashree runs 2.3 lakh neighbourhood groups. Each group has 10-20 poor women as its members and an average Rs 40 is collected every week from each of them.

In Malayalam, Kudumbashree means prosperity (shree) of the family (Kudumbam).

Total savings by neighbourhood groups stood at Rs 1,549.5 crore as of January, 2011, and the internal loans generated since inception stood at Rs 4,372 crore.

In 2010-11, total thrift collected by the organisation stood at Rs 178 crore and the internal loans generated at Rs 459 crore, while in the previous fiscal, total thrift collections touched Rs 198.6 crore and internal loans disbursed by the organisation totalled Rs 893 crore.

Built around three critical components -- micro-credit, entrepreneurship and empowerment -- the Kudumbashree initiative is implemented through community development societies.

It has succeeded in addressing the basic needs of less privileged women, thereby providing them a more dignified life and a better future, says Muraleedharan.

She further said the micro-credit enterprises (MEC) model of Kudumbashree was recently visited by the representatives of the NRLM, who felt this was a model that should be made available in other states as a best practice that can be replicated.

Pointing out the challenges she faced in scaling up the MCE model, Muraleedharan said micro-enterprises have many challenges to overcome with respect to scaling up their activities and access to technology, credit and markets, among other things.

The Economic Times, 25 September, 2011, http://economictimes.indiatimes.com/news/economy/policy/kudumbashree-national-rural-mission-to-sign-pact-for-services/articleshow/10115959.cms


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