K'taka makes rapid progress in giving credit to self help groups

Under the self help group (SHG) bank linkage programme (BLP), Karnataka has made good progress with the formation of 66,805 new SHGs and credit linkage of 61,730 fresh SHGs. This has led to the cumulative formation of over 3.03 lakh SHGs and credit linkage of 2.24 lakh SHGs.

All credit agencies have surpassed the SHG-BLP programme target for 2005-06, said B B Mohanty, chief general manager, National Bank for Agriculture and Rural Development (Nabard), Karnataka, while addressing the 97th State Level Bankers' Committee (SLBC) meeting held here on Monday. However, for repeat credit linkage, the target could not be achieved.

As against a target of 45,000 SHGs envisaged for 2005-06, about 31,888 SHGs were covered, he added.

A pilot project for promotion of micro-enterprise among members of the matured SHGs has been launched in Mysore in association with Myrada.

"I am optimistic that the bankers will come forward to encourage SHGs to take up the different types of income-generating activities and building the capacity of the poor to undertake micro-enterprises for their sustainability," he said.

There has been substantial progress under the Farmers' Club programme in the state. About 919 clubs have been launched against the target of 750, in 2005-06. With this, according to Mohanty, the number of clubs in the state is 2,852, which is the highest in the country.

"Nabard has been providing a promotional grant for launching clubs and supporting the activities during the initial three years. These clubs help in information dissemination, agri-extension, input supply, technology transfer, recovery efforts and marketing," said Mohanty.

He urged the state government to consider providing business opportunities under their existing extension programme by allocating free stalls at krishi melas/exhibitions organised by various agencies to farmers' clubs.

Bankers can make a sincere attempt to keep the clubs active through incentive mechanisms and a proper monitoring system.