A. Botoking
Dimapur | May 25
The Centre is planning to set up 2000 Self Help Groups (SHGs) in Nagaland within the next years. Ram Muivah, the Joint Secretary (Banking Division) to the Government of India, Ministry of Finance, Department of Economic Affairs, who is here on a visit to Nagaland informed this to The Morung Express. On anw official visit to attend the Special State Level Banking Meeting in pursuance of the workshop held in January at Kohima under the aegis of DONER, Ram Muivah said that a number of recommendations have been made in the process of the earlier meeting and he is here to review the follow – up action being carried out by the banks and other public sector utilities.
In a candid interview at Hotel Saramati, Ram Muivah spoke on the need to focus on the financial empowerment of the state of Nagaland. In this regard, he said that the aim is to set up 2000 Self Help Groups (SHGs) in Nagaland within the next years. He elaborated on the subject that the decision had been arrived at by studying and assessing the viability and success of the ground realities in Nagaland. With the land holding system in Nagaland having its own peculiar characteristics, he said that the normal way of entrepreneurship as conceived in mainland India will not be applicable in Nagaland, at this juncture. This is where SHGs can play an important role in the financial health of the state as they do not need any physical liabilities apart from the bank accounts in the banks. Under the SHGs, different types and varieties of schemes can be taken up including money lending, though the disbursement of loans to the SHGs will be done at the discretion of the respective branch managers.
Presenting an example, he stated that SHGs have been highly successful in the south Indian states of Tamil Nadu and Kerala. India has a total of 18 lakh SHGs in India. Nagaland has only 1000 SHGs. Thus, the aim in Nagaland is to set up 970 in 2006 and 1030 in 2007. This is already in the works and is being implemented by the various agencies, both and governmental and non- governmental.
The main agencies which will play vital roles in the success of the SHGs will be the banks, the government agencies, the NGOs and NABARD. In this issue, NABARD has the role of sensitizing the various bank officials on the SHGs and mobilize the government and the NGOs. NABARD will also provide intensive and extensive training to the various SHGs before the loans are forwarded to them. With this regard, the mapping of all the NGOs, government agencies and SHGs is already being carried out. “Nagaland greatly needs entrepreneurs who will be able to bring prosperity to themselves and the people”, the Joint Secretary said.
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