The Hindu : National : Enrich self-help groups to make economy vibrant: Chidambaram

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Monday, Aug 29, 2005

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National

Enrich self-help groups to make economy vibrant: Chidambaram

Staff Reporter

Says the movement has fared well in Tamil Nadu

Photo: S. James

FILLIP TO RURAL DEVELOPMENT: Union Finance Minister P. Chidambaram inaugurating a federation of self-help groups at Sivaganga on Sunday.

SIVAGANGA: : Union Finance Minister P. Chidambaram on Sunday advocated enriching self-help groups, forming farmers' clubs and vigorous small-scale initiatives to make the rural economy vibrant.

Addressing a credit linkage function here, he said the SHG movement had helped rural women take up constructive activities that added to the economic growth.

Lauding the success of the concept in Tamil Nadu, Mr. Chidambaram said the members should enter the next level of activities. Forming farmers' club across the country would help disseminate modern farming techniques. The National Bank for Agriculture and Rural Development had extended loan to 847 clubs. The small and medium enterprises should be encouraged to speed up rural development.

Mr. Chidambaram said during the Congress Government in 1992, Dr. Manmohan Singh, who was then Finance Minister, started the movement. At that time, the AIADMK was in power in the State. Both the AIADMK and DMK Government had helped the movement flourish. The SHGs in Tamil Nadu were stealing a march over their counterparts in other States.

The number of SHGs in the country had increased to 16 lakhs from 10.7 lakhs during the last 14 months. A sum of Rs.1,700 crores was given to two lakh groups in the State and Rs.7,000 crores in loans was extended to the SHGs across the country. The beneficiaries should thank the Centre three times more than the State Government as 75 per cent of the subsidy was given by the Centre, he said.

Stressing the need for setting up SHGs in all villages across the country, Mr. Chidambaram complimented national and private banks on their commitment to the movement. He said though reforms were needed in all sectors, the Congress-led Government was against privatising public sector banks. "They will function as public sector undertakings as ever before. There is no doubt," he said.

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