FINAL REPORT

ON EXTERNAL INSPECTION OF WOMEN

BENEFICIARIES/ UNITS FINANCED BY NSFDC ((Study of Beneficiaries benefitted in

2010-11 & 2011-12)

IN THE STATE OF

MAHARASHTRA

Prepared for :

NATIONAL SCHEDULED CASTES

FINANCE AND DEVELOPMENT

CORPORATION (NSFDC)

DELHI

(2012-2013)

Submitted by :

HARDICON

HARDICON Limited

(A Joint Venture of IFCI Ltd., SIDBI, SBI, PSU Banks & State Financial Corporations)

D-28, Flatted Factories Complex, Jhandewalan, New Delhi 110055

www.hardicon.co.in hardicon@yahoo.co.in

INDEX

Chapter Particulars Page

Executive Summary 1

Chapter 1 Introduction 8

Chapter 2 Maharashtra – SC Profile 23

Chapter 3 Profile of Women Beneficiaries 30

Chapter 4 Project Details 39

Chapter 5 Project Performance 47

Chapter 6 Success Stories 62

Annexures

LIST OF CHARTS

Particulars Page

Age wise Distribution of beneficiaries 31

Distribution by previous activity 34

Operational Units 47

Problems in Getting loan 57

ACKNOWLEDGEMENTS We are grateful to National Scheduled Castes Finance and Development Corporation, (NSFDC), New Delhi in particular to The Chairman and Managing Director, NSFDC for entrusting us the Impact Assessment Study of Women Beneficiaries financed under NSFDC schemes in the state of Maharashtra. We are also thankful to the officials of NSFDC, Mahatama Phule Backward Classes Development Corporation (MPBCDC), Sant Rohidas Leather Industries & Charmkar Development Corporation (LIDCOM) and Lokshahir Annabhau Sathe Development Corporation (LASDC) for providing valuable insight and data on implementation of the schemes. Last but not the least, we acknowledge our sincere thanks to all the women beneficiaries of NSFDC schemes, who extended full co-operation and assistance during the course of field survey. Managing Director HARDICON Limited Dated : 30.03.2013

EXECUTIVE SUMMARY

This chapter provides a summary of the major findings and

conclusions derived from the data presented in the foregoing

chapters and the suggestions with respect to improving the

implementation of the schemes.

Survey Findings

1. As per the details provided by NSFDC, approximately 3962 Women

Scheduled castes were extended financial assistance under NSFDC

schemes in the State of Maharashtra during the period 2010-11 and

2011-12. The women beneficiaries to whom the loans have been

disbursed by the Mahatama Phule Backward Classes Development

Corporation (MPBCDC), Sant Rohidas Leather Industries &

Charmkar Development Corporation (LIDCOM) and Lokshahir

Annabhau Sathe Development Corporation (LASDC) in the state of

Maharashtra are spread across the State. However, the sample size

considered is 6% of the total units of Women Beneficiaries as

indicated by NSFDC for Regular Schemes (1174 nos.), Micro Credit

Finance (243 nos.) Mahila Kisan Yojana (115 No.) and Mahila

Samriddhi Yojana (2430 nos.). The sample has been considered in

the districts of Pune, Nashik, Wardha, Jalgaon, Aurangabad,

Buldhana, Jalna, Mumbai, Nagpur and Akola having large

concentration of beneficiaries in order to elicit representative

outcome of the entire schemes vis-a-vis beneficiaries. Keeping in

view the actual funding by SCA under various schemes, the sample

beneficiaries visited / contacted in the State under Regular, MCF,

MKY & MSY were 63 Nos., 1 No., 7 No. and 166 Nos. respectively.

2. The financial assistance has been provided under three schemes

of NSFDC viz. Regular, Mahila Samriddhi Yojana (MSY), Mahila

Kissan Yojana (MKY) and Micro Credit Finance (MCF). The

assistance extended to each beneficiary under MCF and MSY

Schemes is upto Rs.0.30 lakh, upto Rs. 0.50 lakh under MKY and

that under General Scheme ranges between Rs. 0.40 lakh to Rs.

5.00 lakh.

3. The age of beneficiaries at the time of survey ranged between 19

years to 60 years. Maximum number i.e. 48% of the beneficiaries

are in the age group of 36-50 years followed by 38% in the age

group of 26-35 years. The maximum age of beneficiary with 52 years

was provided assistance under the scheme. (Refer Para 3.1)

4. 100% of the units are operated from premises owned by the family

of women beneficiaries. 38% units are set-up in rural areas and

remaining 62% units are set-up in semi-urban and urban areas.

(Refer Para 4.2)

5. Only 5% of beneficiaries are either graduates or post graduates.

19% of the beneficiaries are having qualification between 1st to 5th

standard, 43% between 6th to 10th standard, 11% are having plus

two qualification and remaining 22% have no formal education.

Preference has been given to beneficiaries having formal education

which is due to considerable literacy level among schedule castes in

Maharashtra. ( Refer Para 3.3 )

6. 84% of women beneficiaries are married, 12% of women

beneficiaries are un-married and remaining 4% of women

beneficiaries are Widow. The average family size of the beneficiary

is 5 persons. ( Refer Para 3.2 )

7. 96% of women beneficiaries were house-wives /unemployed

/student before availing financial assistance, whereas only 4%

beneficiaries in one way or other were already involved in casual

employment on daily wages before availing loans under NSFDC’s

schemes. (Refer Para 3.5 )

8. Nearly 62% of women beneficiaries’s family monthly income was

less than Rs.2000/- before availing financial assistance under

NSFDC schemes where as 32% had family earnings around Rs.

3000/- per month. ( Refer Para 3.6 )

9. The living conditions of the beneficiaries at the time of survey, in

terms of condition of house, source of water, toilet facility, medical

facilities, etc are found to be satisfactory. ( Refer Para 3.7 )

10. Retail trading, Agricultural & Allied Activities and Service emerged as

the major activities selected by the beneficiaries, with 62%, 17% and

11% respectively opting for the same. The Manufacturing and other

sectors accounted for 7% & 3% respectively. Majority (100%) of the

units are set up in their owned shops/premises. ( Refer Para 4.1 )

11. The entire beneficiaries (100%) have ownership as sole

proprietorship. ( Refer Para 4.2 )

12. On an average, the loan component accounted for 85% of the

project cost. The remaining funds were provided to the beneficiaries

by SCDC and also arranged by promoter’s contribution. SCA is

disbursing subsidy to the beneficiaries after liquidation of term loan.

13. The average project cost per unit works out at Rs 0.75 lakh for

regular schemes, upto Rs. 0.30 lakh for MCF and MSY Schemes

and upto Rs. 0.50 lakh under MKY. 14% of units are in range less

than 0.25 lakh. 61% of the units are in the range of Rs 0.26 to Rs

0.50 Lakh. 11% of units are in the range of Rs. 0.76 to Rs. 1.00 lakh

and 14% have loan between Rs. 1.00 lakh to Rs. 5.00 lakh. (Refer

Para 4.3).

14. 8% of the beneficiaries were sanctioned loan in less than two

months from the date of application, 10% between 2 months to 3

months. 26% of the beneficiaries got their loan sanctioned between

3 months to 6 months and remaining 57% above 6 months. ( Refer

Para 4.4 )

15. Of the units established by women beneficiaries under the

schemes of NSFDC, 84% are operational and remaining 16%

units are closed. Out of the 16% closed units, retail trading

units constitute 14% of total units surveyed. The closure of unit

in Regular, MCF and MSY is 13%, 3% and 85% respectively. The

main reasons for closure of operation of the units are poor demand

for products/services (39%), Payment problem (20%), and others

like family problems, self long illness, cattle died or illness etc.

(41%). ( Refer Para 5.1 )

16. The annual average revenue and net profit generated from the units

set up, works out to Rs. 0.63 lakh and Rs. 0.25 lakh respectively.

There has been increase though marginal in income of the

beneficiaries after setting up their ventures/units. However, it is

observed that revenue and net profit generated are not in proportion

to the level of cost of schemes and as well not generating expected

returns compared to the investments.( Refer Para 5.2 )

17. 95% of the total units are being managed by the women

beneficiaries themselves and remaining 5% are taking help of

Husband or family members.

18. From the survey, it emerged that 57% beneficiaries are regular in

their repayment of loan installments, 43% of the beneficiaries have

overdues and 1% of the beneficiaries have fully paid / A/c closed.

(Refer Para 5.4 )

19. The main reasons for non-repayment are Inadequate generation of

funds, closure of units, family problems, Self long illness, etc.

20. Only 0.5% of the beneficiaries have expressed to expand/diversify

their activities. ( Refer Para 5.9 )

21. 37%, 34%, 16% and 13% of the beneficiaries got the information

about the schemes through SCDC office, Newspaper, Community

Leaders/NGO and friends & relatives respectively. (Refer Para

5.10).

22. There is improvement in household income and overall

standard of life of majority of the beneficiaries and almost 84%

of beneficiaries are of the opinion that the scheme has been

useful to them. (Refer Para 5.11 )

Recommendations

The schemes, though fairly successful in achieving its objectives,

can be improved to make the implementation of the scheme more

effective. Based on the details provided in the report, the following

recommendations may be considered.

A few of the eligibility criteria may be modified as:-

1) The Project cost/loan amount of MCF/MSY schemes may be revised

from present level of Rs. 30,000/- to Rs. 50,000/- & Rs.60,000/- in

view of increase in various components of project cost.

2) Advertisement may be published in the beginning of financial year

about the schemes / funds allocation to the state for SC population

and Awareness camps may also be organised before seeking

applications for the Loan.

3) During the survey, it was observed that the beneficiaries lacked in-

depth knowledge about the successful operations of their activity. It

is suggested that entrepreneurial training be provided to all those

beneficiaries, who have been sanctioned loans, under NSFDC

schemes. The training course contents/modules should be done by

laying more emphasis on practical aspects, imparting training

through audio-visual aids in the local dialect and imparting

Motivational inputs which would comprise of psychological exercises

aimed at increasing the participants understanding and in

developing positive entrepreneurial personality/behavior. The

motivational inputs would encourage the entrepreneurs to run the

activity efficiently and with a sense of devotion. In the bigger districts

training programme can be organised at Block level to avoid

unnecessary travelling of applicants. Some potential / suggestive /

recommended training trades are given below:

1) Soft Toys Manufacturing

2) Retail Sales

3) Health Care

4) Beauty Parlour

5) Cooking/Food Processing

4) As observed during visit to Maharashtra, the loan may be provided in

the following fields :

1) Restaurants

2) Fast Food Centre

3) Gym / Health Care Centre

5). Powers should be given to the District Level Managers of SCDC for

sanction/disbursement of loan to a certain acceptable amount.

CHAPTER - 1 INTRODUCTION

1.1 Prologue 1.1.1 The problem of social and economic development especially of

Scheduled Castes (SC) has become a challenge before the

country. Besides, the higher growth rate of un-employment

amongst the educated people has made the situation more

alarming because on one side, being educated, they do not want to

work in farm sector and unorganised private sector and on the

other hand they do not have sufficient capital to start income

generating activities. Therefore, they are forced to remain

economically and socially backward and unemployed.

1.1.2 Financing of micro projects/activities has gained significance as an

extremely useful and effective instrument of promoting small

enterprises, entrepreneurial capabilities and poverty alleviation. It

helps to bridge the gap that conventional commercial banks and

financial institutions are unable to do. Such financing reaches the

poorest of the poor in improving their economic conditions enabling

them to live with dignity and self-respect. In other words, it acts as

an important tool to facilitate improvement of the poor and

backward people in the society. Although the main motive of the

concept is poverty alleviation, it includes the spirit of small savings,

fellow feelings and co-operation, formation of self-help group, self-

employment generation and confidence building for living a

dignified life. The beneficiaries of such financing activities are

dealing in the myriad variety of activities who seek or sustain their

livelihood viz. petty manufacturers of wide ranging items, home

based producers engaged in occupations associated with farm and

non-farm sector, small activities like Auto, Jeep (Taxi), Beauty

Parlour, Kirana Shop, Cloth/Vessel/Vegetable Vendors, Petty

business, Tea Stall, Shuttering, Tailoring, Flour Mill (Atta Chakki),

Furniture, shoe making/repairing, cycle repairing, dairy unit,

cow/buffaloes/ etc. The concessional Project Finance as well as

Micro Finance helps the beneficiaries in their working capital,

inventory supplies, furniture & fixtures and tools and equipment.

The aid of micro-finance makes it possible to give poor people

easy access to financial services especially when micro-financing

institutions are located in their own areas/ neighbourhood.

1.2 NSFDC’s Schemes

To promote economic and social development of the SC’s living in

the country, National Scheduled Castes Finance and Development

Corporation (NSFDC) is one of the agencies who are playing a key

role in poverty amelioration amongst the SCs using micro-finance

as an important instrument. NSFDC was set up in February 1989

under the Ministry of Social Justice and Empowerment,

Government of India.The major activities carried out by NSFDC

are:

a) Financing income-generating schemes for SCs through the State Channelising Agencies (SCAs).

b) Providing Micro Credit Finance to the target groups through the SCAs.

c) Providing grants for skill development programmes SCAs.

d) Providing advisory services to target groups and SCAs.

e) Upgrading the skill levels of the SCAs.

f) Providing grants to the SCAs for computerization.

These activities are carried through 36 State Channelising Agencies

(SCA) and other recognized institutions nominated by the State/

Union Territory governments spread across almost all the states in

the country, by implementing different financing schemes.

i) Eligibility Criteria a) The beneficiaries carried under the scheme should be from

Scheduled Caste community.

b) Annual family income of the beneficiary/members of co-operative

society or any other forms of legal association should not exceed

Double the Poverty Line (DPL) income limit (presently Rs. 81,000/-

p.a. for rural areas and Rs. 1,03,000/- p.a. for urban areas.)

c) Individuals/partnership firms/ co-operative societies / any other forms

of legal associates are eligible to undertake income generating

activities. However, proposals submitted by partnership firms, co-

operative societies and any other firms of legal associations are

considered subject to the following:

All members belong to scheduled cast community.

Annual family income of each member/applicant should be below

double the poverty line income limit.

ii) Financing Pattern – Schemes

a) Term Loan

Quantum of Assistance

NSFDC provides term loan upto 90% of the cost of project,

subject to the condition that the SCAs contribute their share of

assistance as per their schemes and also provide the required

subsidy besides tying up of the financial resources from other

sources available.

Unit Cost

NSFDC provides term loan for project(s) units(s) costing upto Rs.

30.00 lakh.

Promoter’s (proposed Beneficiary) Contribution

SI. No.

Project/Unit Cost Minimum Promoter’s Contribution as % age of

Project cost

(a) For Projects costing upto Rs. 1.00

lakh

Not to be insisted upon

(b) For Project costing above Rs. 1.00

lakh and upto Rs. 2.50 lakh

2%

(C) For Project costing above Rs. 2.50

lakh and upto Rs. 5.00 lakh.

3%

(d) For Projects costing above Rs. 5.00

lakh and upto Rs.10.00 lakh.

5%

(e) For Projects costing above Rs. 10.00

lakh and upto Rs.20.00 lakh.

7%

(f) For Projects costing above Rs. 20.00

lakh and upto Rs.30.00 lakh.

10%

Note: However, under the Central – Sector Scheme of Special

Central Assistance to the Special Component Plans, the Below

Poverty line Beneficiaries are eligible for subsidy @ Rs. 10,000/- or

50 % of the unit cost, whichever is less.

Interest rates

SI. No.

Amount of Loan per unit/profit Centre (NSFDC’s Share)

Interest per Annum Chargeable to

SCAs Beneficiaries

(a) Upto Rs. 5.00 lakh 3% 6%

(b) Above Rs. 5.00 lakh and upto

Rs.10.00 lakh.

5% 8%

(c) For Projects costing above Rs. 10.00

lakh and upto Rs.20.00 lakh.

6% 9%

(d) For Projects costing above Rs. 20.00

lakh and upto Rs.27.00 lakh.

7% 10%

The above rates of interest are not on slab basis.

Repayment period

Term loan is to be repaid in quarterly/ half yearly installments, within

a maximum period of 10 years (including moratorium period).

b) MICRO-CREDIT FINANCE SCHEME

(i) Quantum of Assistance

NSFDC provides loans upto 90% of the project cost. However, under

the Central-Sector Scheme of Special Central Assistance to the

Scheduled Castes Sub Plan, the Below Poverty Line (BPL)

beneficiaries are eligible for subsidy @ Rs. 10,000/- or 50% of the

unit cost, whichever is less. Wherever the beneficiaries are not

provided subsidy, the SCAs shall provide their share of margin

money.

(ii) Unit Cost

NSFDC provides Micro-Credit Finance for unit costing upto Rs.

50,000/-.

(iii) Interest Rates

NSFDC shall charge the interest @ 2% from the SCAs, which in

turn, shall charge 5% from the Beneficiaries.

(iv) Repayment Period

Loan under Micro-Credit Finance is to be repaid in quarterly-

installments within 3 (three) years from the date of each

disbursement, (including the moratorium period of 90 days for fund

utilization).

On repayment of loans under Micro-Credit, through the concerned

SCA, the eligible beneficiaries can avail any loan under NSFDC

schemes.

C) MAHILA SAMRIDDHI YOJANA

(i) Quantum of Assistance

NSFDC provides loans upto 90% of the project cost. However, under

the Central-Sector Scheme of Special Central Assistance to the

Scheduled Castes Sub Plan, the Below Poverty Line (BPL)

beneficiaries are eligible for subsidy @Rs. 10,000/- or 50% of the

unit cost, whichever is less. Wherever the beneficiaries are not

provided subsidy, the SCAs shall provide their share of margin

money.

(ii) UNIT COST

NSFDC provides loans under Mahila Samriddhi Yojana for units cost

upto Rs. 50,000/-.

(iii) INTEREST RATES

NSFDC shall charge interest @ 1% p.a. from the SCAs, which in

turn shall charge 4% p.a. from the Beneficiaries.

(iv) Repayment Period

Loan under Mahila Samriddhi Yojana is to be repaid in quarter

installments within three years (including the moratorium period of

90 days for fund utilization) from the date of each disbursement to

SCAs.

On repayment of loan under Mahila Samriddhi Yojana through the

concerned SCA, the eligible beneficiaries can avail any loan under

NSFDC schemes.

(v) Disbursement of Funds

Funds are disbursed by NSFDC to only SCAs and not to

beneficiaries on specific request. Disbursement is subject to

fulfillment of conditions like execution of various loan agreements by

respective SCAs, providing State Govt. Guarantees, letter of intent,

etc.

vi) Fund Utilisation

SCAs are expected to utilise funds drawn from NSFDC within 90

days of its release.

vii) Progress Report

The SCAs shall send scheme wise progress reports on the utilisation

of the NSFDC funds, each quarter as per prescribed format.

viii) Recall of Unutilized Money

The NSFDC can recall the amounts lying unutilized with SCAs

beyond 180 days.

ix) Security

SCAs are supposed to provide Government Guarantee to NSFDC

for the funds sanction to them.

1.3 Origin

NSFDC and Ministry of Social Justice and Empowerment,

Government of India, have signed a Memorandum of Understanding

(MOU), which has a parameter of performance on evaluation of the

schemes of NSFDC for the beneficiaries extended financial

assistance under Regular Scheme, Micro Credit Finance & Mahila

Samriddhi Yojna during the year 2010-11 and 2011-12. In order to

get feed back on implementation of its schemes for women

beneficiaries in the State of Maharashtra, NSFDC assigned

HARDICON Ltd. to carry out a survey of a sample of beneficiaries to

assess the impact of its schemes viz. General Term Loan (Regular

Scheme), Micro Credit Finance & Mahila Samridhi Yojna. The

present report assesses the impact of these schemes in the state of

Maharashtra.

1.4 Objective of Study

The objective of the Impact Assessment Study of Women

Beneficiaries of the various NSFDC schemes in the state of

Maharashtra include :

a) Development of key indicators for impact assessment

b) Detailed analysis of the life- cycle of the sanctioned projects in

terms of

(i) Their reach to the real beneficiaries (ii) Sanction and disbursement process (iii) Level of technology (iv) Viability (v) Linkages (vi) Post disbursement problems (vii) Sustainability of returns and (viii) Repayment by the beneficiaries to the SCAs.

c) The extent to which the schemes have addressed the goal of

generating sustainable income at household level.

1.5 Sample Size

Total number of Women beneficiaries to whom financial assistance

has been provided under NSFDC’s schemes in the State of

Maharashtra stood at Approx. 3962 for the years under study and

pertain to almost all the districts of the state. The details of sample

women beneficiaries contacted scheme wise as well as district &

trade-wise and from whom data could be elicited are given below:-

General Term Loan Scheme

(Numbers)

S. No. District Retail Transport / Service

Mfg. Agricultural & Allied

Activities

Others

1. Pune 3 3 2 - -

2. Nashik 8 - 2 - -

3. Wardha 2 - - - -

4. Jalgaon 5 - - - -

5. Aurangabad 7 1 - - 1

6. Buldhana 6 3 - - -

7. Jalna 3 - 1 1 -

8. Mumbai 2 1 1 - -

9. Nagpur 2 - - 1 -

10. Akola 6 2 - - -

Total 44 10 6 2 1

Total = 63

Micro Credit Finance Scheme

(Numbers)

S. No. District Retail Transport /

Service Mfg. Agricultural

& Allied Activities

Others

1. Pune - - - - -

2. Nashik - - - - -

3. Wardha - - - - -

4. Jalgaon - - - - -

5. Aurangabad - - - - -

6. Buldhana - - - - -

7. Jalna 1 - - - -

8. Mumbai - - - - -

9. Nagpur - - - - -

10. Akola - - - - -

Total 1 - - - -

Total = 1

Mahila Samriddhi Yojana (Numbers)

S.No. District Retail Transport / Service

Mfg. Agricultural & Allied

Activities

Others

1. Pune 7 2 1 - -

2. Nashik 13 3 - 1 -

3. Wardha 20 3 1 1 -

4. Jalgaon 7 - 2 9 1

5. Aurangabad 7 - - 3 -

6. Buldhana 5 1 1 7 -

7. Jalna 2 1 1 8 -

8. Mumbai 10 2 1 - -

9. Nagpur 20 3 2 - 3

10. Akola 12 2 1 2 1

Total 103 17 10 31 5

Total = 166

Mahila Kisan Yojana (Numbers)

S.No. District Retail Transport / Service

Mfg. Agricultural & Allied

Activities

Others

1. Pune - - - 1 -

2. Nashik - - - - -

3. Wardha - - - - -

4. Jalgaon - - - - -

5. Aurangabad - - - 2 -

6. Buldhana - - - 1 -

7. Jalna - - - 2 -

8. Mumbai - - - - -

9. Nagpur - - - - -

10. Akola - - - 1 -

Total - - - 7 -

Total = 7

The above beneficiaries have been provided assistance through

three SCA viz. Mahatama Phule Backward Classes Development

Corporation (MPBCDC), Sant Rohidas Leather Industries &

Charmkar Development Corporation (LIDCOM) and Lokshahir

Annabhau Sathe Development Corporation (LASDC) in the state of

Maharashtra. The overall details of beneficiaries, district-wise and

scheme wise contacted and from whom the feed back have been

received are given below :-

YEAR-WISE DETAILS OF BENEFICIARIES CONTACTED

(Numbers)

S.No. DISTT. 2010-11 2011-12 TOTAL

1 Pune - 19 19

2 Nashik - 27 27

3 Wardha 27 1 28

4 Jalgaon - 24 24

5 Aurangabad - 20 20

6 Buldhana - 23 23

7 Jalna - 20 20

8 Mumbai 12 5 17

9 Nagpur 29 3 32

10 Akola 8 19 27

Total 76 161 237

SCHEME-WISE DETAILS OF BENEFICIARIES CONTACTED (Numbers)

S. No.

DISTT. Regular MCF MSY MKY TOTAL

1 Pune 8 - 10 1 19

2 Nashik 10 - 17 - 27

3 Wardha 3 - 25 - 28

4 Jalgaon 5 - 19 - 24

5 Aurangabad 8 - 10 2 20

6 Buldhana 8 - 14 1 23

7 Jalna 5 1 12 2 20

8 Mumbai 5 - 12 - 17

9 Nagpur 4 - 28 - 32

10 Akola 7 - 19 1 27

Total 63 1 166 7 237

1.6 Methodology

The study is based on limited desk research followed by intensive

field survey efforts. In the first stage, limited desk research was

carried out, in order to develop key indicators for impact

assessment. The desk research primarily depended on the

information/data made available by beneficiaries, SCAs, office of

NSFDC and the expertise of HARDICON. Based on these a

questionnaire was designed by NSFDC for collecting the data from

the beneficiaries and the sample questionnaire given at Annexure-I

has been supplied by NSFDC to HARDICON.

The second stage included formation of a team of properly trained

in-house investigators for undertaking the survey. The team visited

the offices of Mahatama Phule Backward Classes Development

Corporation (MPBCDC), Sant Rohidas Leather Industries &

Charmkar Development Corporation (LIDCOM) and Lokshahir

Annabhau Sathe Development Corporation (LASDC) in the state of

Maharashtra to collect the names and addresses of beneficiaries

along with the activities for which loans were availed by them. Based

on the information/data thus collected, an intensive field survey was

undertaken by field investigators. The survey was conducted in such

a way, so as to get representation of all major activities and was

undertaken in those districts which had pre-dominant number of

beneficiaries to elicit information / data for deriving overall

representation of the outcome of all the schemes. The officials of

HARDICON randomly verified the questionnaires filled by the

investigators. Finally, all the information gathered was arranged and

analysed to arrive at conclusions as required under the objective of

the study. Findings of the study are systematically complied and

presented in the format of a report.

1.7 Chapter Scheme

The report is presented in five Chapters. Chapter-1 gives

introduction of the report, Chapter-2 provides the Scheduled Castes

Profile / socio-economic scenario of Maharashtra State, Chapter–3

provides the profile of the beneficiaries, Chapter–4 provides the

project details Chapter–5 provides details of performance of the

units set up whereas Chapter–6 provides details of some successful

beneficiaries (Success Stories).

CHAPTER – 2

2.0 MAHARASHTRA : SCHEDULE CASTES PROFILE

LOCATION OF MAHARASHTRA

2.1 Maharashtra, located in Western India, covers an area of 3.08 lakh square

km and has a population of 112,372, 972 (2011 census). Mumbai is the

capital of Maharashtra and is also the largest city and financial capital of

India. Nagpur and Pune are other important cities in the state. Marathi is

the official language of Maharashtra. Maharashtra is divided into 35

districts and 6 administrative divisions, namely; Mumbai (Konkan), Pune,

Nashik, Aurangabad, Amravali and Nagpur. The 35 districts are divided

into 109 sub-divisions and 357 taluks. The overall literacy percentage of

the State was 71.09%.

MAHARASHTRA – AT A GLANCE

Area - 308000 Sq. km

Total Population - 112372,972

Males 58361397

Females 54011575

Sex Ratio - 925

Urbanaisation 42.83

Literacy Rate - 82.09%

Female Literacy - 67.03%

Per Capita Income 48121

Scheduled Caste Population - 9881656

SC Literacy Rate - 71.09%

Female Literacy - 60.03%

Regions 6

Districts - 35

Sub Division - 109

Taluka - 357

2.2 Scheduled Castes Profile of the State

Population :

The Scheduled caste population in Maharashtra State is 9,881,656

persons which is 10.2% of the total population as per 2001 census. The

percentage of District-wise Scheduled Castes Population is given below :

% AGE OF DISTRICT-WISE SCHEDULED CASTES POPULATION

– MAHARASHTRA

S.No District Percentage (%)

1. Ahmadnagar 12

2. Akola 10.3

3. Amravati 17.1

4. Aurangabad 12.0

5. Bhandara 17.8

6. Bid 13.0

7. Buldhana 10.8

8. Chanderpur 14.3

9. Dhule 6.4

10. Gadchiroli 11.2

11. Gondia 14.0

12. Hingoli 10.2

13. Jalgaon 7.8

14. Jalana 11.2

15. Kolhapur 12.8

16. Latur 19.4

17. Nagpur 17.1

18. Nanded 17.3

19. Nadurbar 3.2

20. Nashik 8.5

21. Osmanabad 16.5

22. Purbhani 10.0

23. Pune 10.5

24. Raigarh 2.4

25. Sangli 12.1

26. Satara 8.8

27. Sindhudurg 4.4

28. Solapur 15.0

29. Thane 4.2

30. Wardha 12.8

31. Washim 15.9

32. Yavatmal 10.3

Total Scheduled Castes population in Maharashtra is 9881656 persons

comprising 5063062 males and 4818594 females. Out of the total SC

Population, 6093829 persons are residing in rural area and remaining

3787827 persons are living in Urban area.

Sub-Castes :

The Government of Maharashtra has approved the sub-castes of Scheduled

caste population in the State and the details of same are given below :

LIST OF SUB-CASTES OF SCHEDULE CASTE IN MAHARASHTRA

S.NO. SUB-CASTE S.NO. SUB-CASTE

1 Ager 29 Kankayya, Dohor, Dom, Dumar

2 Anamuk 30 Ellamalvar, Ganda, Gandi, Garo

3 Aray Mala 31 Garodam Ghasi, Ghasia,Halleer

4 Arwa Mala 32 Halsar, Haslar, Hulasvar, Holar

5 Bahna, Bahana 33 Valhar, Holaya, Holer, Holeya,

6 Bakad, Bant 34 Holiya, Kaikadi, Katia, Pathara

7 Balahi, Balai 35 Khangar, Kanera, Mirdha

8 Basor, Burud, Bansor, Basod 36 Khatik, chikwa, Chikvi, Kori

9 Beda Jangam, Budga, Jangam

37 Kolupulvandhu, Lingader, Madgi, Madiga, Mahar, Mehra,

10 Bedar 38 Taral, dhegu, Megu, Dhed, Maru

11 Bhambi, Bhambhi, Asadaru, 39 Vankar, Mahyavanshi, Mala

12 Asodi, chamadia, 40 Mala, Mala Dasari, Hannai, Jangam

13 Chamar, chamari, Chambhar 41 Mala Masti, Sale, Netkani, Sanyasi

14 Haralayya, Harali, Khalpa, 42 Mang, Matang, Minimadig,Dankhni

15 Machigar, Mochigar, Madar 43 Mang, Mahashi, Madari, Garudi,

16 Madig, Mochi, Telgu Mochi, 44 Radhe Mang, Garodi, Garudi,

17 Kamati, Mochi, Ranigar, 45 Manne, Mashti, Meghval,

18 Rohidas, Nona, Ramnami, 46 Menghvar, Mitha Ayyalvar, Mukri,

19 Rohit Samgar, Samagara, 47 Nadia, Hadi, Pasi, Sansi,

20 Satnami, Surjyabanshi, 48 Shenva

21 Surjayaramani, Charmkar, 49 Chenva

22 Pardeshi Chamar, 50 Sedma

23 Bhangi, Mehtar Olgana, 51 Ravat

24 Rukhi, Malkana, Halalkhor, Lalbegi, Balmiki, Karor, Zadmalli, Hela

52 Sindhollu,

25 Bindla, Byagara, Chalvadi 53 Chindollu

26 Channayya, Chenna Dasar, 54 Tirgar,

27 Holeya Dasari, Dakkal, 55 Tirbanda

28 Dokkarlwar, Dhor, Kakkayya, 56 Turi

Literacy :

According to 2001 Census, the overall literacy percentage of

Scheduled castes in Maharashtra was 71.9% and the female literacy

rate is 60% amongst the SC Population compared to 67% among

females of the State.

Religion :

Out of the SC Population of Maharashtra, 67% are Hindus and 32.9

% are Buddhists. There is a small 0.1% Sikh Population among

SCs. Mahar numerically the largest SC in the State have recorded

56.2% Buddhists, 43.7% Hindus and 0.1 % sikhs at 2001 Census.

CHAPTER – 3

PROFILE OF WOMEN BENEFICIARIES

3.0 This Chapter details the profile of the women beneficiaries in the

State of Maharashtra who availed financial assistance under the

schemes of NSFDC.

3.1 Age

The age wise distribution of the women beneficiaries is shown in the

table and chart below:

Table 3.1

Distribution by Age

Age Number %

Less than 18 years

19 – 25 years

26 – 35 years

36 – 50 years

51 – 60 years

Above 60 year

-

31

91

114

1

-

-

13%

38%

48%

1%

-

Total 237 100%

The table and the chart indicate the age of women beneficiaries at

the time of survey. From the above chart, it is evident that the

maximum number of women beneficiaries, i.e., 48% is in the age

group of 36-50 years, followed by those in the age group of 26-35

years (38%), 13% in the age group of 19-25 years and in the age

group of 51-60 years (1%). The Maximum age of women

beneficiary financed under the schemes is 52 years.

It emerges from the above, that the schemes have been able to

attract beneficiaries from all age groups, particularly up to 50 years

age group indicating willingness on part of beneficiaries to improve

their economic status.

3.2 Marital Status

Age wise Distribution of Women Beneficiaries

0%

13%

38%

48%

1%

less than 18 19 - 25 26 - 35 36 - 50 51 - 60

The distribution of beneficiaries by marital status is presented in the

table below.

Table 3.2

Distribution by Marital Status

Marital Status Number %

Married

Un-married

Widow

199

28

10

84%

12%

4%

Total 237 100%

84% of women beneficiaries surveyed were married whereas 12% of

the beneficiaries were unmarried and 4% were Widow.

3.3 Educational Qualification

The distribution of beneficiaries by educational qualifications is given

below in table 3.4.

Table 3.3

Distribution of beneficiaries by Educational Qualification

Educational Qualification

Number %

- No formal Education

- 1 – 5 Standard

- 6 – 10 Standard

- Plus 2

- Graduation/Dip.

- Post Graduation

52

45

102

27

9

2

22%

19%

43%

11%

4%

1%

Total 237 100%

From the above table, it can be drawn out that only around 16% of

more educated among Scheduled Casts have taken up their own

activities with assistance from NSFDC. Those among the SCs who

have educational qualification less than plus two account for around

84% of beneficiaries of NSFDC schemes. This implies that a large

majority of beneficiaries, with qualification less than plus two have

taken up self-employment activities. It may be mentioned that

literacy level among Schedule Castes in the State is 71.9%.

3.4 Size of the Family

The distribution of women beneficiaries by family size is presented in

the following table.

Table 3.4

Distribution by Family Size

Family size Number %

Upto 2

3 – 5

6 – 10

> 10

5

214

18

-

2%

90%

8%

-

Total 237 100%

90% of beneficiaries have a family size in the range of 3-5 members,

8% of beneficiaries have a family of 6-10 persons. The average size

of the family of one beneficiary works out to 5 persons.

3.5 Activity Pursued before availing Loan 3.5.1 The survey reveals that majority of 96% of women beneficiaries

were Housewives / students/ unemployed and remaining 4%

beneficiaries in one way or other were already involved in gainful

employment, before availing loans under NSFDC’s schemes. The

distribution of beneficiaries, based on their previous activities is

given below in chart.

3.6 Annual Income prior to starting the project

The distribution of women beneficiaries based on their family annual

income earned prior to setting up the project is given below in table

3.6.

Distribution by Previous Activity

96%

4%

Unemployed /

Student / housewives

Casual employment

Table 3.5

Annual Income wise Distribution of Beneficiaries

The table 3.6 reveals that 1% had average monthly income of less

than Rs. 12000/- per annum. Around 8% of women beneficiaries had

family income between Rs. 12001/- to Rs. 24000/-, 64% had

between Rs. 24001/- to Rs. 36000/- and 11% had above Rs.36000/-

per annum. From the above, it is observed that 63% of the

beneficiaries below Rs. 24000/- with Annual Family income have

been provided financial assistance under all the four scheme.

3.7 Living Conditions

The indicators to the social well being of a community considered

are the condition of dwellings, sources of water, healthcare facilities,

toilet facilities and so on.

3.8.1 Condition of House

Particulars Beneficiaries Income After

Project Implementation

Previous Family Annual Income

Family Annual Income After

Project Implementation

% % %

- < Rs.12,000/-

- Rs. 12,001/- to Rs. 24,000/-

- Rs. 24,001/- to Rs.

36,000/- - Above Rs. 36,000/-

- No Income

( Due to closure )

1%

8%

64%

11%

16%

1%

62%

32%

5%

-

-%

17%

47%

36%

-%

Total 100% 100% 100%

The survey of the beneficiaries revealed that 45% among them were

living in hutment/kuchha house. 12% of beneficiaries have living in

cement/solid structure houses where as the remaining 43% are

living in brick walled houses.

Table 3.6

Distribution by Type of House

Type of House Number %

Hutment/Kuchha home

Brick walled house

Cement/Solid structure

107

103

27

45%

43%

12%

Total 237 100%

3.8.2 Source of Water

The distribution of beneficiaries by source of water supply for the

family is presented in the table below.

Table 3.7

Distribution by Source of water

Source of Water Number %

Water authority

Own well/Hand pump

Others

174

31

32

73%

13%

14%

Total 237 100%

73% of beneficiaries have water supply into their houses direct from

government authorities.

3.8.3 Toilet Facility

The distribution by toilet facilities are given in the following table.

Table 3.8

Distribution by toilet facilities

Toilet facilities Number %

Covered Toilets

Open Toilets

Public Toilets

110

88

39

47%

37%

16%

Total 237 100%

47% of beneficiaries have covered toilets in their houses, 16% of

beneficiaries make use Public Toilets and remaining 37% of

beneficiaries make use of open toilets.

3.8.4 Medical Facility

Availability of medical facility is a necessity, which cuts across all

castes. 100% of the beneficiaries covered under survey claimed that

the medical facility was available to them in and around their

localities.

3.8.5 Living Infrastructure Facilities

Table 3.9

Living Infrastructure Facilities-237 Nos. Sample Size

Assets Owned Before Project

(%) After Project

(%)

Electricity 98% 99%

Radio/Music System

T.V

Fridge

Gas connection

Pressure Cooker

Two Wheeler

Telephone

87%

19%

8%

45%

81%

1%

54%

87%

40%

17%

69%

84%

7%

93%

98% of the beneficiaries had electricity connection whereas some of

them had about 45% gas connection, 81% pressure cookers and

19% T.Vs before launching of their projects. There has been

increase in the percentage of beneficiaries who have acquired TVs,

Fridges, Gas connections, telephones and Two wheelers, after

commencement of their projects through the accrued income from

the units.

CHAPTER – 4

PROJECT DETAILS

4.0 The present chapter provides the details about the projects set up by

women beneficiaries under the NSFDC’s schemes.

4.1 Type of Projects Set up

4.1.1 The projects set up under the schemes of NSFDC, can be classified

under five major heads.

a) Retail Trading

b) Agriculture & Allied Activities

c) Manufacturing of Products

d) Services

e) Others

The activity-wise distribution of sample beneficiaries is given below

in table 4.1.

Table 4.1

Main Activity wise distribution of sample beneficiaries

Main Classification

of Activity General MCF MSY MKY Total

- Retail Trading - Agriculture & Allied

Activities

- Manufacturing of Products

- Services

- Others

44 (70%)

2

(4%)

6 (9%)

10

(15%)

1 (2%)

1 (100%)

-

(-)

- (-) -

(-) -

(-)

103 (62%)

31

(18%)

10 (6%)

17

(11%)

5 (3%)

- (-)

7 (100%)

- (-) -

(-) -

(-)

148 (62%)

40

(16%)

16 (6%)

27

(11%)

6 (5%)

Total 63

1 166 7 237

4.1.2 Among the Retail trading activities, the activities pursued among the

sample beneficiaries comprise of Kirana Shop, Tool Shop,

Stationery Shop, Confectionery Shop/ Shoe Shop, Vegetable/

Vessel/ Cloth Vendor, etc. The activities under service sector

includes, Beautician, Tailoring etc. The activities under

manufacturing sector mainly comprised of Shoe/Leather purse

Manufacturing, Cement Frame Manufacturing, Paper Cup-Plates

Manufacturing, etc. The activities like dairy (Buffalo/Cow), etc have

been included under Agriculture and Allied activities.

4.2 Constitution and Location of the Projects

4.2.1 Constitution

About 100% (237) units have been set up by individual beneficiaries

under sole proprietorship. 89 (38%) of these are set up in rural areas

whereas 41 (17%) are in Semi-Urban and remaining 45% of them

are in urban areas. It is also revealed during the survey that 237

(100%) of units were operated from premises owned by the

beneficiaries.

4.2.2 Location

All the projects numbering 237 (100%) are located at a distance of

less than 0.5 k.m. from the residence of the beneficiaries.

4.3 Project Cost and Means of Finance

4.3.1 On an average, the total project cost of one unit set up by women

under the schemes of NSFDC ranged between Rs. 0.11 lakh to Rs.

5.00 lakh.

4.3.2 Majority i.e 145 (61%) of the projects set-up by the beneficiaries are

in the project cost range of Rs. 0.26 lakh to Rs. 0.50 lakh followed by

32 (14%) from Rs.0.11 lakh to Rs. 0.25 lakh, 26 (11%) between

Rs. 0.75 lakh to 1.00 lakh, 24 (10%) between Rs.1.00 lakh to Rs.

2.00 lakh, 9 (4%) Rs. 2.00 lakh to Rs.3.00 lakh and 1 between Rs.

4.00 lakh to Rs. 5.00 lakh. A break-up of the projects set-up in

different ranges of project costs are given below :-

Table 4.2

Range of Project Cost

Project Cost (Rs.) Number %

<Rs 10,000/- Rs. 11000/- - Rs. 25000/- Rs. 26000/- - Rs. 50000/- Rs. 51000/- - Rs. 75000/- Rs. 76001/- - Rs. 100000/- Rs. 100001/- - Rs. 200000/- Rs. 200001/- - Rs. 300000/- Rs. 300001/- - Rs. 400000/- Rs. 400001/- - Rs. 500000/-

0 32

145 0 26 24 9 0 1

- 14% 61%

- 11% 10% 3.9%

- 0.1%

Total 237 100%

4.3.3 The project set up under the schemes of NSFDC by the sample

beneficiaries were found to be financed by loan component, SCDC

finance and own contribution in Regular Schemes only whereas no

promoters’ contribution is required under MCF, MKY & MSY

Scheme. Subsidy to beneficiaries is being provided by SCA after

the liquidation of term loan by the beneficiaries.

4.3.4 Majority of the beneficiaries availed term loan assistance from SCA

in setting-up their projects.

4.3.5 70% of the beneficiaries availed term loan assistance below Rs. 0.25

lakh, 4% in the range of Rs. 0.26 lakh - Rs. 0.50 lakh, 13% in the

range Rs. 0.51 lakh to Rs. 0.75 lakh, 12% in the range of Rs. 1.01

lakh to Rs. 2.00 lakh and 0.5% in the range of Rs. 2.00 lakh to Rs.

5.00 lakh respectively. The break-up of the term loan ranges availed

from SCA is given in the following table.

Table 4.3

Term loan Range

Term Loan (Rs.) Number %

< Rs. 25,000/-

Rs. 26,000/- - Rs. 50,000/-

Rs. 51,000/- - Rs. 75,000/-

Rs. 76,000/- - Rs. 100,000/-

Rs. 1,00,000/- - Rs. 2,00,000/-

Rs. 2,00,000/- - Rs. 5,00,000/-

166

10

30

1

29

1

70%

4%

13%

0.5%

12%

0.5%

Total 237 100%

4.4 Sanction and Disbursement of Loans

Generally, once a beneficiary applies for financial assistance, his/her

case is processed and then either rejected or sanctioned financial

assistance. After the sanction of loan, the next step is disbursal of

loan.

The time duration between applying for the financial assistance to

actually receiving it is very important for studying the implementation

of the schemes. The break up of the time lag between the

submission of application and getting loan sanctioned is given

below, in table 4.4.

Table 4.4

Time lag between submission and sanction of loan

Time duration Number %

- Less than 1 month

- 1 month to 2 months

- 2 months to 3 months

- 3 months to 6months

- above 6 months

2

14

24

61

136

1%

6%

10%

26%

57%

Total 237 100%

Only 2% of the beneficiaries were sanctioned loan in less than one

month from the date of application, 6% between 1 month to 2 month,

10% between 2 month to 3 months, 26% of the beneficiaries got

their loan sanctioned between 3 months to 6 months and remaining

57% above 6 months. The break up of the duration between

sanction and actual disbursal of loan is given in table 4.5.

Table 4.5

Time lag between sanction and disbursal of loan

Time duration Number %

- Less than 1 month

- 1 month to 2 months

- 2 months to 3 months

- 3 months to 6 months

- 6 months to 12 months

- above 12 months

2

49

22

47

62

55

1%

21%

9%

20%

26%

23%

Total 237 100%

1 % of the beneficiaries got their disbursement of loan within 1

month, 21% got between 1-2 months, 9% got between 2-3 months,

20% got 3-6 months, 26% got 6 to 12 months and 23 % got the loan

after 12 months.

4.5 Project Commencement

The detail of the projects set-up by beneficiaries is presented in the

following table.

The women beneficiaries contacted under the study have set up

their projects in different years viz. 2010-11 and 2011-12. A majority

of the contacted beneficiaries who set up their projects are during

the years 2011-12. A break-up of above details are in the following

table:

Table 4.6

Distribution of Projects by commencement

Year %

2010-11 2011-12

32% 68%

4.6 Marketing of Projects and Services

The distribution of beneficiaries by area of marketing of their

products and services is presented in the following table

Table 4.7

Distribution by Area of Marketing

Area Number %

Locally

Nearby districts

237

0

100%

-

Total 237 100%

Once the projects were established, the products and services

offered were marketed locally by 100% of beneficiaries. The

activities undertaken by the beneficiaries are of such nature and

scale that it is not feasible for them to market their products and

services in nearby districts.

Almost 100% of beneficiaries did not have any tie-up for marketing

of their products/services.

CHAPTER – V

PROJECT PERFORMANCE

5.0 This chapter provides details on the performance of the units set up

under the schemes.

5.1 Operational Units

5.1.1 Of the 237 women beneficiaries who provided the information during

the survey, about 39 women beneficiaries have closed down their

operations. This means that 84% of units established are operational

whereas the closed units account for 16%. 100% of Beneficiaries

have created assets for which loans were availed irrespective of the

closure of the units.

Opeartional Units

84%

16%

Unit functional

Unit closed

The distribution of closed units vis-à-vis their sectors activity is

presented in the table below.

Table 5.1

Distribution of Closed units vis-à-vis their sectors

Sector Closed units

Nos. % of closed

units

% of total

units

Retail Trading

Manufacturing

Agriculture & Allied Activities

Services

Others

32

1

2

4

-

82%

3%

5%

10%

-

13%

0.25%

0.75%

2%

-

Total 39 100% 16%

A close observation of the data collected reveals that 13% of retail

trading and 2% of service sector have closed down. 0.25% of the

manufacturing and 0.75% of Agriculture & Allied Project sector have

closed down. The scheme wise closure of units is as under :

Table 5.2

Distribution of Closed units scheme wise

S. No

District General Loan

MCF MSY MKY Total

1. Total Units 63 1 166 7 237

2. No. of Closed units 5 1 33 0 39

3. % of Closed units 13% 2% 85% - 16%

5.1.2 Reason for Closure

Table 5.3

Reason for closure of Units

Reason %

- Non Viable Projects

- Inadequate Loan Amount

- Shortage of Raw Materials

- Others (Family problems & Self illness, Death of Live Stocks, Shortage of Working Capital, etc.)

39%

20%

4%

37%

Total 100%

From the table, it is observed that 39% of the units were closed

because of poor demand for products services, 20% because of

inadequate loan amount, 4% because of shortage of Raw Materials

and 37% due to family problems, self illness of beneficiaries and

death of live stock, etc.

5.2 Income Generation

The income generation is one of the main objectives of the schemes

of NSFDC. The average revenue generated by the operational units

works out to Rs. 0.63 lakh per annum. The breakup of revenue

generation vis-à-vis activity is presented in the table 5.4 below.

Table 5.4

Revenue generation vis-à-vis activity

Activity Average annual revenue generated (Rs. Lakh)

- Retail trading

- Transport / Services

- Manufacturing

- Agriculture & Allied Activities

- Others

0.65

0.55

0.70

0.50

0.40

It is clear from the above table, that the largest revenue generating

activity was retail trading followed by services/ manufacturing,

agriculture and others.

5.2.1 The average net income generated by the operational units work-out

to Rs. 0.25 lakh per annum, indicating an average of 40% of net

profit margin. The breakup of net income generation vis-à-vis activity

is presented in the table 5.5 below. The net income indicated is after

the repayment of installments of loan.

Table 5.5

Net income generation vis-à-vis activity

(Rs lakh)

Activity Average annual Income generated (Rs. Lakh)

- Retail trading

- Servicing

- Manufacturing

- Agriculture & Allied Activities

- Others

0.27

0.25

0.22

0.22

0.18

From the above table and the table 5.5, the average net income

margin works out as shown in table 5.6 below.

Table 5.6

Net Income Margin

Activity Net Income Margin (%)

- Retail trading

- Servicing

- Manufacturing

- Agriculture

- Others

42%

45%

32%

44%

45%

From the above tables, it is observed that the most profitable sectors

are retail, service activities from the point of view of Net income to

revenue generation.

5.2.2 An attempt has also been made to study the revenue generation and

profit earned by all the beneficiaries, when all the units were

operational. The breakup of revenue and net income earned is

presented in the tables 5.7 & 5.8 below.

Table 5.7

Breakup of revenue generated

Revenue Generated per annum

%

- Less than Rs.25,000

- Rs.26,000/- to Rs.50000/-

- Rs. 51,000/- to Rs.75000/-

- Rs. 76,000/- to 100,000/-

- Rs. 101,000/- to 150,000/-

- Above Rs.151,000/-

2%

20%

46%

18%

14%

1%

Total 100%

The table indicates that only 2% of the beneficiaries were

generating annual revenues less than Rs. 0.25 lakh, 20% in the

range of Rs. 0.26 lakh to Rs. 0.50 lakh, 46% in the range of Rs.

51000/- to Rs.100,000/- and 15% in the range of Rs.101,000/- to

Rs.151,000/-.

Table 5.8

Breakup of net income earned

Net Income earned per annum %

- < Rs.18000/-

- Rs.18000/- to Rs. 24000/-

- Rs.24001/- to Rs. 40000/-

- Rs.40001/- to Rs. 50000/-

- Rs. 50001/- to Rs. 75000/-

- Above Rs. 75001/-

1%

9%

77%

11%

2%

1%

Total 100%

This table indicates that around 91% of the beneficiaries were

earning average net income of around Rs. 2000/- and above per

month.

5.3 Employment Generation

Besides generating income for the women beneficiaries, the other

main objective of the schemes of NSFDC is to generate employment

opportunities. The accomplishment of this objective is an indicator of

the success of these schemes.

5.3.1 Of all the units surveyed, 95% women beneficiaries were managing

their units themselves without employing anybody and remaining 5%

were taking help of Husband or other Family Members.

5.4 Repayment of Loans

As mentioned above, the schemes of NSFDC are designed to

provide financial assistance, repayable over a period of time, in

order to generate income and employment among Scheduled

Castes. The repayment of loan is essential for successful

continuation of these schemes.

The questionnaires were designed in such a way, so as to elicit the

information about the outstanding amount and the overdue amount,

from the beneficiary. However, during the survey, it was found that

the beneficiaries were not able to distinguish between the two, as

majority of them are not well educated. However, attempt was made

to elicit information about regular, fully paid & against whom over

dues stand from the beneficiaries.

5.4.1 The distribution of beneficiaries who have repaid all their liabilities

and those who are regular in their repayment of loans along with the

position of overdue are presented in table below.

Table 5.9

Repayment Status

Status Number %

Regular Repayment

Overdue

Fully Paid

134

101

2

56%

43%

1%

Total 237 100%

Of the all the beneficiaries surveyed, 56% are regular in their

repayments and 43% are overdue or against whom there are over

dues. Further, only 1% of the beneficiaries have fully paid their dues

5.5 District wise Repayment Position

The geographical district wise repayment position in the State of

Maharashtra is presented in table below.

Table 5.10

District-wise Repayment Position

Figures In Nos.

S.No. District Regular Overdue Fully Paid / A/c closed

Total

1. Pune 12 7 - 19

2. Nashik 12 15 - 27

3. Wardha 10 17 01 28

4. Jalgaon 16 7 01 24

5. Aurangabad 14 6 - 20

6. Buldhana 23 - - 23

7. Jalna 14 6 - 20

8. Mumbai 14 3 - 17

9. Nagpur 6 26 - 32

10. Akola 13 14 - 27

Total 134 101 2 237

From the above, it emerges that the beneficiaries have been regular

in repayment of loan. However, the beneficiaries pertaining to

districts given at Sr. No 2, 3, 9 &10 have more over dues or

defaulted in repayment of their loans.

5.6 Outstanding Amount

Majority of loans outstanding is less than Rs. 0.25 lakh. Around 167

women beneficiaries have outstanding below Rs. 0.25 lakh, 17

between Rs. 0.26 lakh to Rs. 0.50 lakh, 19 between Rs. 0.51 to Rs.

0.75 lakhs, 4 between Rs. 0.76 lakh to Rs. 1.00 lakh, 23 between

Rs. 1.00 lakh to Rs. 2.00 lakh and 1 has outstanding above Rs. 2.00

lakh respectively and 6 women beneficiaries have paid fully / A/c

Closed.

5.6.1 Reasons for non repayment

The beneficiaries, who have loan outstanding against them, have

given different reasons for not repaying. The reasons for non

repayment apart from closure of units or before closure of units are

given it table 5.11, below.

Table 5.11

Reasons for Non Repayment

%

- Poor demand for services / products - Inadequate Generation of Funds - Shortage of Raw Material - Others (Family Problem/Self long

Illness, etc.)

31% 54% 5% 10%

Total 100%

The main reasons for non repayment, as shown in the table above

are Inadequate Generation of Funds, poor demand for products and

Family Problems, Self long illness, etc.

5.7 Problems faced by Beneficiary

During the course of setting up of a unit, right from conceiving of the

unit to managing its successful operation, an entrepreneur has to

overcome a number of hurdles/problems. However, the schemes are

designed in such a manner that the beneficiary faces very few

problems in getting the loan.

5.7.1 The survey of women beneficiaries revealed that out of

Problems faced in getting loan

1%

99%

Problem faced

No problem faced

237beneficiaries, only 22 beneficiaries (1%) faced problems in

getting the loan. The chart below depicts the percentage of

beneficiaries facing the problems in getting the loan.

5.7.2 The distribution of beneficiaries, on the basis of their opinion about

the processing of their applications is presented in table below.

Table 5.12

Distribution by Opinion on Processing Speed

Opinion %

Fast (within 1 month)

Moderately Fast

Slow

Very Slow

-

-

1%

99%

Total 100%

100% of the women beneficiaries were of the opinion that the

processing of their applications was slow or very slow. This more or

less matches with the findings about the time lag between

submission of application and sanction of loans.

5.8 Reasons for Delay in Processing

The reasons for delay in processing of applications are presented in

table below.

Table 5.13

Reasons for delay in processing

Reasons %

No Delay

Processing time / Target / Paper Formality

15%

85%

Total 100%

15% of the beneficiaries attributed that there was no delay in

processing of application,

5.9 Expansion Plans

The distribution of the beneficiaries vis-à-vis their plans for

expansion of their activities is given below in table.

Table 5.14

Distribution by Expansion/Diversification

Expansion/Diversification Number %

Planned

Not Planned

1

236

0.5%

99.5%

Total 237 100%

Only 0.5% of beneficiaries expressed interest in starting any other

project or expansion of their capacities whereas 99.5% of

beneficiaries do not have any expansion plans.

5.10 Awareness about Schemes

Various media are used to create awareness about the schemes

among the target communities by NSFDC. The distribution of the

beneficiaries’ vis-à-vis the media of awareness is presented in table

below.

Table 5.15

Media of awareness

Media %

Through SCDC Office 37%

Through Newspapers

Through Community leaders/NGO

Through Friends & Relative

34%

16%

13%

Total 100%

The most effective media was found to be through SCDC office as

37% of the beneficiaries got information about the schemes from

above. 34% of the beneficiaries got information about the schemes

from newspaper, 16% were informed by Community leaders/NGO

and remaining 13% were informed by friends/ relatives.

5.11 Usefulness of Scheme

The impact of any scheme can also be measured in term of impact it

had on the socio-economic aspects of life of its targeted

beneficiaries. The usefulness of the scheme as remarked by the

beneficiaries is presented in table 5.16 below

Table 5.16

Usefulness of Scheme

Opinion on Usefulness Number %

- Scheme Useful

- Scheme not useful

199

38

84%

16%

Total 237 100%

The table indicates that 84% of beneficiaries are of the opinion that

the schemes are useful.

The aspects of lives of beneficiaries, which had positive impact of

the schemes of NSFDC is depicted in table 5.17 below.

Table 5.17

Aspects of life affected

Aspects of life %

- Household income improved - Standard of living improved - Sending children to private

Schools. - Renovation of House - Treatment with private doctors - Others(self employment)

74% 21%

- -

- 5%

Total 100%

The positive impact on the above mentioned aspects of life, point

towards the priorities of the beneficiaries. The figures imply that the

improvement in household income is more important to the women

beneficiaries as also the opportunity to get self employment.

CHAPTER-VI

Success Story

1. Success Story of the Women Beneficiary Name : Mainabai Sawale Father/Husband’s Name : Sh. Ganesh Sawale Age : 32 years Address : Vill. & Post Devari, Distt. Akola, (Maharashtra) Unit : Dairy Date of Finance : November, 2010. Pre-status of the beneficiary:

The above named beneficiary belongs to Scheduled Caste

community (Boudha). She has no formal education. Prior status

before taking loan, she was unemployed / Housewife having no

permanent source of income. Her family’s annual income was Rs.

16,000/-. There are four members in her family.

In March, 2010, Smt. Mainabai Sawale submitted an application for

seeking loan for setting up of Dairy unit in the office of Mahatama

Phule Backward Classes Development Corporation (MPBCDC),

Akola. In response to her application, the management of the

Corporation after taking into consideration all facts of the case and

genuineness of the beneficiary, sanctioned and disbursed loan of

Rs. 30,000/- under MSY scheme to Smt. Mainabai Sawale for above

Dairy unit in collaboration with National Scheduled Castes Finance &

Dev. Corporation (NSFDC), New Delhi in November 2010. The unit

is functioning since November, 2010 and Smt. Mainabai Sawale is

earning about Rs. 28000/- per annum.

Re-payment status of the beneficiary:

The beneficiary has been regular in repayment to the Corporation

and the outstanding is about Rs. 2,050/- and is likely to be repaid as

per schedule.

Post status of the beneficiary:

From the income of the aforesaid activity, the living standard of the

beneficiary and her house hold income has increased. She has also

requested for refinance to increase the capacity after completion of

existing loan.

2. Success Story of the Women Beneficiary

Name : Poonam Mandve Father Name : Sh. Dyanadev Mandve Address : Devi Khadan, Near Ganesh Kirana, Distt. Akola (Maharashtra) Age : 37 years Unit : Beauty Parlour Date of Finance : January 13, 2011. Pre-status of the beneficiary:

The above named person belongs to Scheduled Caste community (Chamar). She has passed 12th standard and was casual employee in chosen line. She was from a poor family, having no permanent source of income. There were five members of her family. In March, 2010, Smt. Poonam Mandve submitted an application for seeking loan for establishment of Beauty Parlour in the office of Sant Rohidas Leather Industries & Charmkar Development Corporation (LIDCOM), Akola. In response to her application, the management of the Corporation after taking into consideration all facts of the case and genuineness of the beneficiary, sanctioned and disbursed a term loan of Rs. 1,50,000/- and margin money of Rs. 30000/- to Smt. Poonam Mandve for establishment of Beauty Parlour in collaboration with National Scheduled Castes Finance & Dev. Corporation (NSFDC), New Delhi in January 2011. The unit is functioning since January, 2011 and Smt. Poonam Mandve is earning about Rs. 48,000/- per Annum.

Re-payment status of the beneficiary:

The beneficiary has been regular in repayment to the Corporation and the outstanding is about Rs. 80,000/- and is likely to be repaid as per schedule.

Post status of the beneficiary:

From the income of the aforesaid activity, the living standard of the beneficiary and her family has improved significantly. She has also renovated her house.

3. Success Story of the Women Beneficiary Name : Shobha Palsapagar Father/Husband’s Name : Sh. Bhimrao Palspagar Age : 35 years Address : Vill. & Post Rel, Tal. Akot, Distt. Akola, (Maharashtra) Unit : Dairy Date of Finance : November, 2010. Pre-status of the beneficiary:

The above named beneficiary belongs to Scheduled Caste

community (Bodha). She has no formal education. Prior to taking

loan, she was unemployed / Housewife having no permanent source

of income. There were four members in her family.

In February, 2010, Smt. Shobha Palsapagar submitted an

application for seeking loan for setting up of Dairy unit in the office of

Mahatama Phule Backward Classes Development Corporation

(MPBCDC), Akola. In response to her application, the management

of the Corporation after taking into consideration all facts of the case

and genuineness of the beneficiary, sanctioned and disbursed the

total loan of Rs. 30,000/- under MSY scheme to Smt. Shobha

Palsapagar for above Dairy unit in collaboration with National

Scheduled Castes Finance & Dev. Corporation (NSFDC), New Delhi

in November 2010. The unit is functioning since November, 2010

and Smt. Shobha Palsapagar is earning about Rs. 24000/- per

annum.

Re-payment status of the beneficiary:

The beneficiary has been regular in repayment to the Corporation

and the outstanding is about Rs. 2,600/- and is likely to be repaid as

per schedule.

Post status of the beneficiary:

From the income of the aforesaid activity, the living standard of the

beneficiary and her house hold income increased. She has also

requested for refinance to increase the capacity after completion of

existing loan.