CHENNAI: Bankers play an important role in making microfinance projects successful, said K Gopal, MD, Tamil Nadu Corporation for Women Development, at the inauguration of the workshop on State Rural Livelihood Mission held on Tuesday.
Gopal said that the National Rural Livelihood Mission will focus on people-led and people-centred organisations such as SHGs/federations at village and district levels to provide space, voice, and resources to the poor and reduce their dependence on external agencies. These institutions will be actively involved, directly or indirectly in the activities like the public distribution system and the institutions at the grassroots level like the panchayats. Rather than specific allocations, the Mission will follow a demand-driven approach for the release of funds on the receipt of state level action plans, he said.
The State Rural Livelihood Mission will have a financial contribution of 25 per cent from the State government and 75 per cent from the Union government. With Tamil Nadu being in the forefront in the marketing of products made by the SHGs, this project will only add impetus to entrepreneurship at the grassroots level, said Gopal.
Dhiraj Kumar, project director, Vazhndhu Kaatuvom Project, said the banks should not be reluctant to help microfinance projects fearing their low output.