Bhubaneswar: Chief Minister Naveen Patnaik today inaugurated the Interest Subvention Program for 2.5 lakh Mission Shakti Self-Help Groups of the state. Through this program, Rs 125 Crore worth of Interest on the loans taken by the Mission Shakti Groups will be reimbursed. This step will mean that the Self Help Groups will get loans at effectively zero interest. The program will accelerate the empowerment of the women and transforming the SHG members into entrepreneurs and make them economically stronger.
Launched in 2001, Mission Shakti has helped transform the landscape of women’s empowerment and autonomy in the state. The State Government has taken the vision a step ahead, envisaging the transformation of SHGs into SMEs. Institutional finance for women SHGs plays a vital role in nurturing livelihood and promoting entrepreneurship.
To nurture entrepreneurship among women, during the Make in Odisha Conclave 2022, Chief Minister Naveen Patnaik announced a Revolving Fund @ Rs. 1 cr for all District Level Federations, Revolving Fund @ Rs. 50 lakh for all Block Level Federations, Office building with market Complex for all GPLFs and establishment of Micro & Mini Industrial parks in all 30 districts.
To transform SHGs into SMEs, Government of Odisha has further increased the interest subvention benefit on SHG loans from Rs 3 lakh to 5 lakh making it 0% effective annual rate of interest under Mission Shakti Loan – State Interest Subvention Scheme w.e.f. 1st April 2022.
The State Government disbursed interest subvention benefits for the first two quarters of FY 2022-23 worth Rs. 125 crore to more than 2,50,000 SHGs today. Over the next five years, Mission Shakti has provisioned to provide interest subvention benefits amounting to Rs. 1200 cr to SHGs. This was done through the technology platform directly to SHG accounts.
With institutional finance , Mission Shakti SHGs have been able to own and operate women-led enterprises thereby significantly contributing to local economies. Over the last five years, around 4 lakh SHGs have been credit linked with loans amounting to Rs. 17000 crores.
The increase in interest subvention benefit shall certainly boost the credit flow to SHGs, increase the average loan size and reduce the NPA position. Over the next five years, funds amounting to Rs. 50,000 crore are targeted to be disbursed to SHGs across the state.
Gracing the mega event at the State Convention Centre, Loka Seva Bhawan with his august presence, Chief Minister addressed 400 SHG and Federation leaders including thousands of SHGs leaders connected virtually from across 314 Blocks and 30 districts , all Controlling heads of banks encouraging them to embark on the transformational journey of SHGs to SMEs.
The Chief Minister also virtually inaugurated the District Level Federation building of Jajpur district – the first of its kind . To provide a greater platform to SHG members, a state-of-the-art Mission Shakti Bhawan equipped with a sales outlet, computer training centre, sewing machine training centre and a training cum multipurpose theatre have been provisioned. The Chief Minister has approved the construction of District Mission shakti Bhawan in each district at a budgetary allocation of Rs. 1 crore per Bhawan.
Mission Shakti is unlocking doors to innovative opportunities for women and taking up diversified initiatives to steer the women collectives towards achieving economic independence with dignified employment and having a unique identity.
Speaking at the inauguration program, Sujata R Karthikeyan, Commissioner-cum-Secretary, Department of Mission Shakti said that “Due to the steps taken by the State Government, today we have changed the definition of loan. While earlier our mothers feared to go to banks to avail loans, today, bankers are coming to the mothers to give loans. You are also getting the interest reimbursed. This is transformation. This has been successful due to the focus of the Chief Minister on Women Empowerment.”
The Interest Subvention program was inaugurated by the Chief Minister at a special function organized at the Lok Seva Bhawan attended by Minister Basanti Hembrum, Chief Secretary Suresh Chandra Mahapatra, 5T Secretary V K Pandian, Advisor to Mission Shakti Department Lopamudra Baxipatra and other dignitaries.