Name of block: Bhavani Name of village panchayat: Odathurai Name of self-help group: Annai Indhira Name of economic activity:

Sericulture The development of cottage and agro-based industries is vital towards generation of employment opportunities in rural areas and rural development in general. In the present day condition of rapid industrialization and urbanization, this is essential in order to prevent the exodus of rural population to cities in search of employment avenues. One such village which is backward in terms of development is Palampalayam in Odathurai village panchayat. However, one aspect which marks the development prospects of this village is the existence of self-help groups. A progressive SHG among them is Annai Indhira SHG. This SHG was formed on 16.05.1998 with the initiative of its 13 members as well as that of the block development officials of Bhavani Panchayat Union.

On the lines of the ageold proverb, Many drops of water join together to form the ocean, these 13 members started conducting regular weekly meetings and contributing small savings, which led to the gradual increase of their group corpus, maintained in their savings bank account with Indian Overseas Bank, Odathurai. Simultaneously, they started withdrawing small sums of

money as internal loans in order to meet their consumption and other needs. They soon realized that the development of micro-enterprises in their village was very essential in order to provide the people a source of regular employment. They were already involved in mulberry cultivation and silkworm rearing. However, most of them were landless and did not possess the financial capacity to secure lands on lease or to construct rearing sheds. Therefore, they approached their block development officials for guidance. Accordingly, the block development officials forwarded a proposal for Economic Assistance under SGSY for sericulture. This proposal was sanctioned and a project cost of Rs.2,40,000 (comprising of subsidy of Rs.1,20,000 and a matching bank credit) was disbursed to the SHG members. Utilizing this amount, several members procured land on lease basis for mulberry cultivation. The members bought rearing appliances and constructed rearing sheds. Diesel engines were also purchased for operating motors for irrigation purposes. Thus, this strengthened their existing skill and resource base for the occupation and now, all the members are involved in this trade on a full time basis. They generate 7 to 8 harvests in a year and since all the family members are involved in the trade, each family is able to earn a weekly wage of Rs.1,500. Their main sources of raw material procurement and marketing are Kollegal and Ramnagar in Karnataka, Palacodu in Dharmapuri and sometimes they also directly procure eggs from Tamil Nadu Agricultural University, Coimbatore. Apart from economic development, the members are also actively involved in social activities. They procured saplings free of cost from the Government and planted them in their village and they are also creating awareness about the importance of rural sanitation. Besides, they have donated utensils for the children in the noon meal center functioning in their village.

Owing to their reported success, the District Collector and the Project Officer have also visited this SHG and appreciated the members on its effective functioning. Thus, this village is slowly being transformed from a socially and economically backward village into a progressive village on the path towards development.

SUCCESS STORY NO. 2

Name of block: Dharapuram Name of village panchayat: Therpatti Name of self-help group: Therpatti I Name of economic activity: Kora silk weaving All of us are women residing in Therpatti village belong to a backward caste. Our literacy level is very low and we have always had to run our families utilizing the income earned by our husbands, who were the sole breadwinners of our families. Thus, managing the household expenses was always a major problem and we had to slowly cut down our food expenses in order to meet the childrens education expenditure. It was in the wake of this severe financial crunch that we learned about the concept of self-help groups from our block development officials and NGO field staff. Once we were convinced that we must form a self-help group, 12 of us joined together and nominated the animator and representatives and opened a savings bank account with the Central Bank Of India, Dharapuram Branch, into which we started remitting weekly small savings of Rs.120 (@ Rs.10 per member).

On completion of a year, our savings amount stood greater than Rs.5,000 and we were circulating this amount as internal credit at very low rates of interest for urgent household expenditure of our members in joint consultation. Seeing our gradual progress, our bank manager, block level official and NGO field staff member graded us and we were found eligible for receiving the Revolving Fund (RF) under SGSY. Utilizing this RF, we granted additional loans as internal credit to our members for developing our existing occupation of kora silk weaving and repaid the same using the income earned from there.

Feeling the need for adding further value to our trade, we approached the same people who had guided us initially, and soon we were graded for Economic Assistance (EA) under SGSY. On securing the required marks, our proposal was forwarded to the District Rural Development Agency, Erode, where our proposal was sanctioned. We received a project cost of Rs.1,88,000 (comprising of bank credit Rs.76,000 and subsidy Rs.76,000), on 31.03.2000. This assistance came as a great boon to us and we have utilized it for purchasing jacquard equipment and towards meeting our working capital requirements. Now, our family income has considerably increased and each family earns a monthly income of Rs.3,500 to Rs.5,000. Economically, we now no longer depend on our husbands income for running the household. It is a source of immense pride to us that we are able to educate our children and we have earned a respectable social and economic status in society. We who had earlier been confined to the four walls of our homes, have now started transacting in banks and participating in all the important occasions in our village, such as Gram Sabha meetings, Republic Day and functions held by schools. We are extremely grateful to our block development officials, bank manager, District Rural Development development. Agency, Erode, and NGO representatives for our remarkable

SUCCESS STORY NO. 3

Name of block: Kangeyam Name of self-help group: Sivappu Rojamalar

Name of economic activity: Vegetable cultivation We are women residing in M.G.R.Nagar, Potthipalayam village panchayat, Kangeyam block. We formed a self-help group consisting of 12 women and opened a savings bank account on 23.5.2000. Presently, we have a savings amount of Rs.20,000. Every member in our group has a forgiving tendency as well as an earnest urge to develop ourselves, both socially and economically. With this intention, we, who are agricultural labourers decided to secure a piece of land on lease and cultivate vegetables and other crops. Subsequently, we were graded eligible for Economic Assistance under SGSY and our proposal was forwarded to the District Rural Development Agency, Erode. Soon, we were sanctioned economic assistance of Rs.1,00,000 (comprising bank credit Rs.50,000 and matching bank credit). Using this amount, we secured 3 acres of land in Potthipalayam. Since we are daily wage labourers, we started carrying out farming operations on this land on rotation basis. However, during important operations such as cultivation, weeding and harvest, when a large labour force was required, all of us worked together in the fields. We have so far realized harvests of corn, groundnuts and cotton in our farm. So far, out of these sales proceeds, we have repaid over Rs.40,000 towards Economic Assistance. The income level of our group members has considerably increased.

Only subsequent to our forming a self-help group have our eyes been opened and we are able to feel the pulse of real development. We have realized that if we sow the seeds of hard labour, the fruits we reap in reward will definitely be sweet. We have now transformed from women who never used to step outside the four walls of our home (apart from our agricultural work) to selfconfident women on the path towards development. Our strength lies in our unshakeable unity and our realization of the immense potential that a group has to offer when compared with an individual.

SUCCESS STORY NO. 4

Name of block: Vellakoil Name of self-help group: Vennila Name of economic activity: Handloom weaving We the members of Vennila self-help group belong to Kavilipalayam village,

Lakkamanaickenpatti Village Panchayat, Vellakoil Panchayat Union. Initially formed as a group under the DWCRA scheme in 1998, we later altered our group norms into that of a self-help group under SGSY and have been functioning since 21.02.2000 with a total of 12 members. We have been contributing small savings @ Rs.10 every week and our current total savings amounts to Rs.32,220. We have been operating our savings bank account at Canara Bank, Dasavanaickenpatti Branch and received revolving Fund of Rs.25,000 under the DWCRA scheme in 19998. Utilizing this amount, each of us developed our traditional occupation, namely, handloom weaving.

Gradually, all of us became interested in adding further value to our trade and thereby earning increased remuneration towards improving our quality of life. Accordingly, we applied for Economic Assistance under SGSY to the District Rural Development Agency, Erode and both our banker as well as DRDA, Erode, sanctioned our proposal. Soon we received Rs.2,00,000 inclusive of bank credit of Rs.1,00,000 and an equivalent subsidy. We used this amount to purchase handlooms for those who did not possess any and mainly towards working capital. We are able to weave and market 6 bed carpets / bed sheets per day per head. Thus each member gets a monthly income of Rs.1,800 from this occupation. Prior to this assistance, we were engaged for the same trade on daily wage basis and were often exploited by our employers by extracting maximum work at minimal wages. Now our situation has taken a turn for the better. Moreover, a large room is being constructed for us and another group, namely, Malligai self-help group involved in the same activity, for all of us to come together and work in a common work place. This hall can accommodate 24 looms. The construction of this hall is nearing completion, which we are eagerly awaiting. So far, we have repaid Rs.43,200 towards Economic Assistance. Not only has our economic situation improved, but we have also gained social consciousness. We, along with Malligai SHG, have taken up voluntary activities such as cleaning our Elementary School as well as contributing monetarily for its painting work. We have also distributed sweets to all school students on important occasions. We also cleaned the surroundings of a pump set, thus ensuring the supply of uncontaminated water.

Thus, we whole-heartedly feel that by virtue of belonging to this self-help group, we have taken immense leaps, in both social and economic spheres of life. We are very grateful to our block development officials, banker and NGO representative who guided us towards this unexpected progress.