IT WAS a windfall five years ago that taught Panchali Satyavva the power of a lie. It happened one Monday afternoon in Someshwar village of Nizamabad district in Andhra Pradesh. It was raining in sheets and she had just placed a bucket under the steady trickle of water from the roof of her hut. Two men were at her door, holding umbrellas and offering her an unsolicited Rs. 5,000. They...

Kerala Chief Minister V.S. Achuthanandan on Tuesday announced a comprehensive package for relief and remediation of victims of the Endosulfan pesticide in the State. The package includes higher pensions, special education, housing, drinking water supply, rehabilitation, training and employment. Debt relief to the victims' families would also be considered. Mr. Achuthanandan made the announcement after a conference of officials, people's representatives and non-governmental organisations convened to discuss the plight of...

The Centre has nixed a demand from Delhi MLAs for a sharp 300 per cent salary hike. The Union government sent back the proposal saying a pay revision isn't due in Delhi until 2012 and the proposed conveyance allowances are way over the top for a small state like Delhi. Law and justice minister Mangatram Singhal confirmed that the Centre had indeed shot down the move.''The Centre has said a revision is...

India’s rapidly growing private microcredit industry faces imminent collapse as almost all borrowers in one of India’s largest states have stopped repaying their loans, egged on by politicians who accuse the industry of earning outsize profits on the backs of the poor. The crisis has been building for weeks, but has now reached a critical stage. Indian banks, which put up about 80 percent of the money that the companies...

Sample some data on the microfinance performance in India: According to the data provided by www.mixmarket.org, microfinance in India reached close to 270 lakh active borrowers in 2009, with the average loan size close to Rs 8,000. This translates into total borrowing to over Rs 20,000 crore. Though this number seems large, it represents only 0.3% of our GDP. Thus, large swathes of poor, both in our villages and urban...