MP to spend Rs 48 crore for poverty alleviation

The Madhya Pradesh government will pump in Rs 48 crore in the second phase of a World Bank-assisted project to eradicate poverty in 14 districts of the state.

Unlike the first phase of the project, the second phase will create only women-run self-help groups (SHGs). The World Bank (WB) has sanctioned Rs 480 crore ($100 million) for the second phase.

The state had earlier contributed Rs 100 crore in the Rs 500-crore first phase, financially assisted by the WB.

The demand from the state was $180 million as soft loan under the project known as district poverty initiative project (DPIP).

The first phase of the project started in 2001, covering 2,900 villages in 14 districts of the state with financial assistance of $100 million extended by the bank.

The second phase will cover 53 blocks in 14 districts. It will also include villages which were under Phase-I.

“It is likely to offer benefits to approximately 800,000 people. Under the second phase, common interest groups (CIGs) will be dissolved in SHGs, which will be managed by only women members of the society,” a senior government official said.

The DPIP also tried to rope in some corporate houses like ITC, Reliance, etc for procurement of produces of the project members.

“We formed producer companies of the poor farmers and yielded encouraging result,” the official said.

“The first phase covered more than 300,000 people (poor and ultra poor) through 50,000 CIGs,” he said.

“The WB may grant more funds if the state utilises 50 per cent of the grant within two-and-a-half years effectively,” the official added.

A Delhi-based agency New Concept had conducted a survey and found 65 per cent increase in total income, 70 per cent increase in man-days, 23 per cent increase in wages and 183 per cent increase in savings, of the beneficiaries of the schemes.