Transcript Document

WELCOME
TO
NATIONAL LEVEL MEETING OF
PROJECT DIRECTORS OF
RURAL DEVELOPMENT
ANDHRA PRADESH
PRESENTATION ON
1. Community Managed Health &
Life Insurance
2. Total Financial Inclusion
3. Food Security
SANJEEVANI
“Community Managed
Health Insurance”
SANJEEVANI
• Sanjeevani is a Community based and
Community managed Health Welfare Scheme,
promoted by Zilla Samakhya, Vishakhapatnam.
• This is an initiative to make Healthcare Services
accessible to rural Self Help groups ( SHGs) and
to promote preventive Healthcare.
Good health is a pre-requisite to human productivity and the
development process. A healthy community is the infrastructure
upon which an economically viable society can be built.
Need for the Scheme
• Existing schemes are not pro-poor
• Cumbersome Procedure
• Uncertainty of coverage of financial shock
from health care expenses
• Expulsion of pre-existing deceases (Rural
poor won’t go for regular check-up of
deceases
Need for the Scheme
• Uniqueness of existing schemes – Insurer,
Insured, TPA and Service Providers are unhappy
• Existing health care facilities from Govt.
institutions not accessed adequately
Scope of the Scheme
• Hospitalization Cover for Surgeries and
Medical Conditions
• Free Outpatient Consultations.
• Fixed discounts on
- Medicines
- Investigations
• Consultation by a lady doctor on specified days.
Administration of the Scheme
• The scheme will be implemented and
administered by Zilla Samakhya, in
coordination with the Mandal Samkhaya, and
Village Samakhyas.
The Role of Zilla Samakhaya
The ZS is responsible for the day-to-day operation of the Scheme and will
ensure service standards at provider Network for hospitalization and
Diagnostics.
The duties will include,
 Maintaining member database
 Issuing Photo ID cards to the families covered under the scheme
 Creating a network of hospitals to facilitate Cashless treatment to the
beneficiaries of the scheme
 Facilitating the authorization process with the Network Hospitals
 Claims Processing and settlement.
Coverage and Premium
 Period of operation from 1st May 2007 to 30th April 2008
 Maximum amount payable Per Family Rs. 30,000/- for
surgeries ( List provided ).
 Maximum amount payable is Rs 5000/- for medical
conditions other than surgeries under the Family
Package 5.
 10% of Co-Payment by the patient on the final bill.
 Premium payable is Rs. 260 per year for a family of 5.
 Age Limit: 0-60
Features of the Scheme
1. Out Patient Consultation
PHC level: consultation with lady doctors once in a week free
of cost
Network Hospital (NWH): consultation free of cost
2. Diagnostics:
Basic diagnostics will be done at PHC free of cost
Diagnostics at NWH will be done at a fixed discounted rate.
3. Quality Medicine
Free of cost at PHC level
2. 10% Discount rate at NWH
3. Grossly discount at Drug depots of IKP (Sanjeevani
Pharmacy)
Features of the Scheme
Contd…
4. Hospitalization cover:
• Cover- Inpatient treatment requiring hospitalization for more
than 24 hours.
• Cover would include consultation, investigation and room
charges, medicines and consumables.
5. Medical and Secondary and Tertiary Surgical Care
Treatment provided through Referral Network Hospitals only
with 100% Cashless facility
6. Pre existing diseases are covered
7. Treatment in General ward only
Surgeries Covered
The scheme covers more than 1500 surgeries, including all
categories of complex and common surgeries, such as
1. OBG – includes normal delivery, LSCS and
Hysterectomy
2. General Surgery
3. Gastroenterology
4. Orthopaedics – includes fracture surgeries
5. Genito-Urology
6. Endocrinology
7. ENT
The Team
Case Manager – Role and Responsibilities
1. Coordinate the referral system of the patient
2. Regularly visit the Network Hospitals, at least once a
week, and ensure that the terms and benefits of the
scheme are being properly followed.
3. Regularly interact with the beneficiaries of the
scheme undergoing treatment for feedback.
4. Inform the Implementing Agency (ZS) about any
non-conformance, if any, and follow-up on action
taken.
5. Collate data and statistics from network hospitals on
the scheme every week end and Submit it to the ZS
The Team
Case Manager – Role and Responsibilities
6. Randomly verify the operated cases for
authenticity of the members.
7. Verify the authenticity of every case received for
pre-authorization and submit report to ZS.
Medical Officer – Role and Responsibilities
1. Approval of Preauthorization based on necessity of
treatment
2. Liaison with NWH
3. Quality monitoring of service providers
Process of Availing Treatment
Beneficiary approaches VO
Representative
VO rep explains scheme
Beneficiary goes Network hospital
with ID Card, Receipt
Medical
treatment
Free OPD
Consultation
Admission for
Surgery
Intimation to
TPA/ZS by NWH
Patient pays 10%
of the bill
Investigation
Special rates
Pre-Authorizationfrom TPA/ZS
CASHLESS
Hospitalization
Member signs on
the Claim Form
Discharge
Claims Flowchart
Receipt of claims
From NWH
Incomplete
Document
verification
Communication To Hospital
Complete
Claim ID Generation
Medical Scrutiny and Claims Processing
Claim pending for supporting
Documents
Communication To Hospital
Approved Claims
Submitted To Trust (Weekly)
Letter Of Settlement To he Bank By ZS
Collection of DD
Dispatch o hospital
Outward
Progress
1. Total House Holds Covered sofar
: 32,840
2. Annual Premium per Family
: Rs.260/-
3. No. of Net working Hospitals
: 17
4. No. of PHCs & CHCs
: 27
5. Claims Received (May to December)
: 650
6. Claims Settled (May to November)
: 650
7. Claims amount Settled
: Rs. 23.50 Lakhs.
• Health Cards issued to all families covered under the scheme
• 29 Case Managers trained & Positioned in all Mandals&KGH
• One Medical Officer trained and positioned.
Impact
 Free OP : No. of Patients benefited
 In Primary Health Centres
: 11,325

: 4,460.
In Networking Hospitals
 Diagnostic Tests
 20% discount on diagnostic tests
 Amount benefited
: Rs.1,51,860
 Drugs
 10% discount on drugs
 Amount benefited
: Rs.98,329
Impact
 Medical Cases treated
Physical
:
373
Amount
:
Rs. 9,12,465
Physical
:
277
Amount
:
Rs. 14,37,664
 Surgical Cases treated
Expenditure (From May to
December 2007)
Medical Cases
Month
No. of Cases
Amount
May ’07
1
3,000
June ’07
19
30,967
July ’07
58
1,27,800
August ’07
26
1,12,300
September ’07
54
1,05,500
October ’07
74
1,49,272
November ’07
60
1,30,908
December ’07
81
2,52,718
TOTAL
373
9,12,465
Medical Cases Treated
Type of Disease
No. of Patients
% of total cases
Cerebral Malaria
185
68%
Jaundice
76
28%
Normal Delivery
53
19%
Typhoid
27
10%
Bronchitis & Pneumonia
and Others
22
8%
TOTAL
273
Medical Cases Treated
185
200
180
160
140
120
76
100
53
80
60
27
22
Typhoid
Others
40
20
0
Cerebral
Malaria
Jaundice
Normal
Delivery
Expenditure (From May to
December 2007)
Surgical Cases
Month
No. of Cases
Amount
May ’07
5
34,231
June ’07
16
1,00,300
July ’07
46
3,33,800
August ’07
28
1,14,986
September ’07
25
1,31,090
October ’07
36
2,27,595
November ’07
67
3,28,050
December ’07
54
1,67,612
TOTAL
277
14,37,664
Surgical Cases Treated
Type of Surgery
No. of Patients
% of total cases
Hysterectomies
65
24%
Orthopedic
106
38%
Caesarian Section
52
19%
Hernia Hydrosols
34
12%
Tonsillectomies & Others
20
7%
TOTAL
273
Surgical Cases Treated
120
106
100
80
65
52
60
34
40
20
20
0
Hysterectomies
Orthopedic
Caesarians
Hernia
Hydrosols
Others
Community Managed Life
Insurance Scheme
Community Based life Insurance Scheme
 Objective
 Need
 Evolution
 Implementation
 Claim Settlement Process
 Impact
DRDA
SERP
Objective

Scheme seeks to offer a risk mitigation measure for
the rural poor against sudden death & disability .

The CBO - SHG and their federations VO Mandal
Samakhyas and ZS play key role in evolution,
implementation of the scheme
DRDA
SERP
Need
 Rural poor household having no access to formal Insurance
services to cover risks.
 Very limited awareness about insurance related risk
mitigation options amongst the poor.
 High premium coupled with tedious & time consuming claim
settlement process.
 Participatory community based insurance delivery
mechanism meets the needs of the poor more effectively
than the provider managed insurance delivery.
DRDA
SERP
Evolution
 Initiated dialogue with community on need for community
based life & General insurance and risks to be covered.
 Dialoging with insurance providers by CBO with facilitation
support extended by functionaries.
 Finalizing service providers with clear cut MOU between the
insurance providers and Zilla Samakhya.
DRDA
SERP
A.P. Level Achievement 2007-08
 Total Members covered
:
26,15,540
 Premium Amount collected
:
Rs.26.68 Crores
 Premium Amount paid to
Insurance Company
:
Rs.21.71 Crores
 No. of Claims Received sofar
:
7215
:
6133
Natural Deaths
Accidental Deaths
 Claims settled sofar
Natural Deaths
Accidental Deaths
 Claim amount settled
DRDA
: 6459
: 756
: 5515
: 618
:
Rs.15.73 Crores
SERP
District-wise Achievement 2007-08
District
Women
covered
Claims
received
Adilabad
93394
200
124
4675000
Ananthapur
129776
187
137
4025000
Chittor
336163
338
278
9340000
East Godavari
134000
306
236
8080000
West Godavari
153786
322
271
9130000
Kurnool
46319
141
103
3400000
Karimnagar
336946
59
16
320000
Khammam
109326
605
548
17830000
Kadapa
122701
656
600
20690000
Mahaboob Nagar
26028
174
131
3900000
DRDA
Claims
settled
Claim amount
settled
SERP
District-wise Achievement 2007-08
District
Women
covered
Claims
received
Claims
settled
Claim amount
settled
Medak
153217
1788
1585
5077250
Nizamabad
122500
318
270
9100000
Prakasam
66419
224
177
6310000
Vizianagaram
171000
648
593
18400000
Visakhapatnam
85632
235
193
7369000
Nellore
109459
209
173
6190000
Srikakulam
138348
299
256
8680000
Warangal
207359
309
274
9220000
Gunturu
73167
197
148
5575000
TOTAL
2615540
7215
6133
1573250
DRDA
SERP
Implementation in Visakhapatnam 2006-07
 Amount collected by CBO” per member
• TATA – AIG life insurance premium
• New India Assurance premium
• Corpus available per member at ZS
Rs. 105/-
Rs. 61/Rs. 12/Rs 32/-
 Total 1,00,681 Members covered
• Rs. 105.71 Lakhs Amount collected by Zillah Samakhya.
• Rs. 61.41 Lakhs Amount paid to TATA-AIG towards life
Insurance
• Rs. 12.08 Lakhs Amount paid to New India Assurance
towards general insurance.
• Rs. 32.21 Lakhs with ZS.
DRDA
SERP
Implementation in Visakhapatnam 2007-08
 Amount collected by CBO” per member Rs. 80/• Life Insurance Corporation
• National Insurance
• Corpus available per member at ZS
Rs. 50/Rs. 18/Rs 12/-
 Members covered so far as against proposed target of
83,266 members.
• Rs. 66.61Lakhs Amount collected by Zillah Samakhya.
• Rs. 41.63 Lakhs Amount paid to Life Insurance towards
life insurance.
• Rs. 14.98 Lakhs Amount paid to National Insurance
towards general insurance.
• Rs. 9.99 Lakhs with ZS.
DRDA
SERP
Claim settlement process
 Information from affected family to ‘VO’ from SHG.
 Verification and Certification by ‘VO’.
 Claim submission to Zilla Samakhya through Mandal
Samakhya.
 Verification by ‘ZS’ monitoring committee.
 Claim submission by ZS to insurance company.
 Claim settlement by ZS within ‘7’ days of receipt of the claim
by ZS pending release of money by insurance company is ZS.
 Claim shall reach ZS within ’90’ days of occurrence of the
incident.
DRDA
SERP
Impact in Visakhapatnam District




2006-2007
Affordable premium
Immediate claim settlement by Zillah Samakhya.
357 Claims settled so far against 390 claims
received.
Rs. 89.10 Lakhs Amount distributed towards claim
settlement.
2007-2008
 193 Claims settled so far against 235 claims

received.
Rs. 73.69 Lakhs Amount distributed towards claim
settlement.
DRDA
SERP
‘Total Financial Inclusion’
General definition of financial inclusion
 Accessing to banking services at affordable cost
- Opening of ‘no frills account’
- Issue of ‘General Purpose Credit Card’
Objective
• To address all the financial needs of all
households
Should we focus on all
or should we focus on
poor ?
The ‘Spread’ of Financial Inclusion
 Whether urban or
rural, the spread is
‘wide’ in non-poor visà-vis poor
PHY SIC A L & F IN ' SPR EA D ' in R U R A L A R EA ( samp ling )
85.3
83.6
14.7
100
16.4
P OOR
50
NON-P OOR
0
P HY
FI N
Analysis of financial
needs of the poor
The Expenditure Portfolio of the Poor
• House construction / repairs
farm activities
• Working capital
non-farm activities
major
• Health problems
minor
school education
• Children education –
higher education
• Marriage purposes
• Income generation Activities
• Long term investment on land
Scale of exp on these items
House repairs/construction-5,000 to 20,000
Marriage purpose - 20,000 to 50,000
Health needs - 5,000 to 15,000
Children higher education - 5000 to 10,000
Income Generating Assets – 10,000 to 15,000
Working Capital - 5,000 to 10,000
Long term investment on land – 30,000 to
50,000
Own funds vis-à-vis debt
Own funds/SHG/Bank
linkage
Debt from money
lenders/ MFIs
Food
House
Working capital
Health
Health
Marriage
Children education
Landpurchase/development
Income generating asset
Higher education
Coping mechanism by the rural poor family
Banks
Debt
Money lenders/friends & relatives
For smaller needs it is from banks
For larger needs it is from money lenders/mfi
Which approach is better to reach the poor?
Opening of ‘no frills’ account
Issue of general purpose
credit card
or/and
Deepening the credit
through SHGs
Why SHG model for Financial Inclusion?
 The ‘exclusion’ is more wide spread and deeper in
poorer sections and priority is given to the poorest
of the poor and the poor. The poor are in SHGs
 SHG is proved to be an effective financial
intermediary
 ‘Financial inclusion’ does mean
 (1)credit disbursement,
 (2)credit utility and
 (3)repayment
– possible through SHG model
Financial inclusion of Poor
in Andhra Pradesh through
SHG-Bank linkage
Financial inclusion of the poor in Andhra
Pradesh through SHG-Bank linkage
In AP, 90-95% of the poor are in SHGs and
hence, ‘inclusion’ is wider (number covered)
in the poor.
 But inclusion is NOT deeper (when
compared to financial needs)
300
7.
5
20
1
60
.0
5
Financial inclusion – not deeper - empirical
evidence
200
17
1
Fin
100
0
Phy
1
2
Financial inclusion – not deeper empirical evidence
In CC Palli village the total debt of 201
families was Rs. 29 lakh
Bank share was 11% (mainly for small needs)
Money lenders’ share was 87% (mainly for
big needs)
Others’ share was 2%
The Result ….
Loan
amount
from
money
leners/mfi
in each
SHG
(average)
1,50,000
Rate of
interest
Interest
per
month
paid by
SHG to
money
lenders/
mfi
Interest
per
annum
paid by
SHG
No of
SHGs in
the
district
(average)
Total
interest
amount
paid by
SHGs per
annum in
a district
to money
lenders/
mfi
36
4,800
57,600
40,000
230
crores
Bank linkage per district (average):
150 crores
Interest amount paid by all SHGs in the district: 230 crores
PLAN OF ACTION
Piloting the model
Take up this model in two villages in each
service area of each bank-branch during
2007-08.
Identification of village
 Having good track record in SHG-Bank
Linkage
 Having SHGs which are following best
practices
 Having good book keeping practices in SHGs
 Having SHGs with Poorest of the Poor and
SCs and STs
 Identification shall be done in consultation
with CBRM/Mandal Samakhya
Pre-conditions
 Facilitating the SHGs to enable them to
be good SHGs - at least THREE months
preparatory work has to be done in the
village
 All the members of each SHG shall be
educated on financial inclusion
 Book-keeping shall be strengthened
 Good Monitoring mechanism shall be
positioned
Pre-conditions- intervention by IKP
 CRP team consisting of four members-IB, TFI, BK and Activist, will
be positioned
 The team will work for 3 months in each village with 6 to 7 SHGs
 The team will develop best practices in those SHGs
-weekly meetings,
-weekly savings
-weekly internal lending of small debts,
-weekly recovery of small debts,
-book keeping – for every 4 SHGs, ONE book keeper
-need based lending,
-awareness among all members,
-self-preparation of MCP by the SHG
 Positioning of ‘anchor’ person for the branch
Assessing the needs of each member of SHG




MCP shall be SHG-driven
The MCP includes the following:
Outstanding debt of the member to money lender
or to mfi (the outstanding loan to Bank will be
added at the end)
Income Generation
o
o

Requirement for investment in income generating asset
Working capital for agricultural purposes and for existing
economic activities.
Social needs like health, education, food security,
house repairs/construction, marriage purpose etc.,
Micro Credit Plan under TFI
Name of the SHG
Bank Account no.
Bank-branch name:
VO Name
Village Name:
Mandal Name:
Sl
no
Name
of the
memb
er
Socia
l
Staus
(SC/S
T/BC/
OC)
Eco
Stat
us
(PO
P/P
oor/
NP)
To liquidate high cost debts
Money
Lender
s
MFI
Othe
rs
Tot
al
IGA
Unit
Investme
nt
Social needs
Total
Nee
d
Requir
ed
amoun
t
TOTAL
TFI Plan total:
Signatures of SHG reps:
Outstanding bank-linkage:
1
Grand Total:
2
Tota
l
Grand
Total
Repayment by members to SHG
 The installment shall comprise both principal and
interest
 It shall be monthly installment
 It shall not be short term repayment – minimum 60
months
 The members’ repayment is as per their
capacity to re-pay
 The members’ repayment schedule may vary-below
60 months-may be 40 to 48 months
 There shall be surplus in SHG in every month
Repayment
Irrespective of income of the poor
Principal
Ins
amou
nt
Number
of Ins
23
50
1000
23
50
5000 115
50
5000
23
10000 230
50
10000
23
1000
Principal
Ins
amo
unt
Number
of Ins
Correlated with income
of the poor
Principal
Income
Ins
amou
nt
Numbe
r of Ins
1000 1200
40
30
150
5000 1000 100
55
500
10000 2500 350
38
Repayment Plan of Members to SHG &
Repayment Plan of SHG to Bank
Sl no
Mem
Loan
Sources
INCOME
monthly
crop
Repayment
Total
Monthly
Principal
int
Tot
No of
inst
Crop
(prin)
1
X1
30000
dairy
2000
0
24000
750
450
1200
0
40
2
X2
45000
Ag land,
3000
7000
43000
1320
280
1600
5000
35
3
X3
28000
4
X4
54000
5
X5
47000
6
X6
15000
7
X7
25000
8
X8
40000
9
X9
36000
10
X10
45000
65000 385000
10350
3650
14000
30000
REPAYMENT
TO
BANK
6000
3650
SURPLUS IN SHG
4350
TOTAL
365000
320000
60
30000
Why surplus in SHG?
Loan amount
from Money
Lenders
Year-wise distribution
of loan (taken from
money lenders)
150,000 < one year
One year to
two years
> two years
Average corpus needed in SHG to
avoid money lenders/ mfi
Year-wise
st
60,000 1 yr
TOTAL
60,000
2nd year
60,000
45,000
rd
30,000 3 year
30,000
4th year
15,000
150,000
How to pay on monthly basis by the
member ?
High Cost ‘i’ paid to money lender is enough…to
liquidate bank loan
Loan from Money
Lender
Loan
from
money
lender or
MFI
10000
Loan from Bank
Ra
te
of
int
ere
st
Rat
e of
inte
rest
Inter
est
per
mont
h
Loan
from
bank
36
300
10000 9
Inte
rest
per
mo
nth
differ
ence
betwe
en
ML/
mfi
and
bank
EMI of
the
bank
per
month
(princi
pal)
No
of
inst
al
me
nts
73
227
230
44
Rate of
reimbu
rsemen
t of
PAVA
LA
VADDI
Amoun
t of
PAVA
LA
VADDI
for
every
SIX
months
No
of
SI
X
mo
nth
ly
spe
lls
Total
amount
of
PAVAL
A
VADDI
/per
membe
r
6
287
7
2083
Monthly payments…..
 Stabilising the monthly income
 Multiple livelihoods
 Access to Employment
Guarantee Scheme
If a big loan is again required …….
Increase in the corpus of SHG
 Surplus in SHG every month-the difference
between members’ repayment to SHG and
SHG’s repayment to bank
Increase in savings by the member in SHG
Increase in the corpus of VO
• Increase in savings by the SHG to
VO
• Introduction of ‘APADA NIDHI’-Rs.10
per each member with VO
• Converting the CIF into ‘emergency
fund’
Financial Inclusion and other products
To members
To Village Organisation
Other Products to members of SHG
savings product – RD for their children
insurance product-covering life, health,
and assets
educational loan product through SHGs
Cash Credit Limit to VO



Food Security initiative
Milk collection centers
Marketing activities
The limit may be provided to the VO
as per the guidelines approved by
SLBC.
Interventions in ‘key activities’ by the
project
• Identification of those ‘key’ activities,
where huge investments are made by the
members
• Providing backward and forward linkages
to increase production and marketing
access
Monitoring
Self-monitoring by SHG and VO
• ‘Vetting’ of the plan by the SHG itself and
later by the VO
• Disbursement of loan to the members as per
MCP
• Utilization of loan by the member in the
presence of the SHG or it’s committee
• Submission of UC by the SHG to the bank
and to the VO
• Verification of assets purchased by SHG in a
periodical manner by SHG itself and by VO
Monitoring – intervention by IKP …
Community Based Recovery
Mechanism (CBRM)
Participation of Branch Manager/Field
Officer in VO’s scheduled meeting
Computerisation of transactions
One Anchor Person for each bankbranch
Community Based Recovery Mechanism (CBRM)
 Two members from each VO
 All the rep from all VOs in a service area will form
into CBRM
 They will meet once in a month on a fixed date in the
premisis of the branch
 Each VO committee will maintain DCB of the linkage
for that VO and bring it to the meeting
 The OD & NPA will be discussed and corrective
action will be taken by the committee before the next
meeting and ensures 100% recovery
 The utility of the loans will also be monitored by the
committee and discussed in the meeting
Bank – Linkage amount taken under T.F.I
in Maharajpeta (V) Consisting of Maharajpet, Gopuralam & Dontanapalli Hamplets of Rangareddy
Dist
120
98.15 Lakhs
100
80
56.77 Lakhs
60
40
28.52 Lakhs
12.86 Lakhs
20
0
For Debt Swapping
For income generation
activities
For Social needs
Total
Loan Amount Taken Under TFI
in Gopularam H/o Maharajpet (V) of Rangareddy District
50
44.41 Lakhs
45
40
35
30
22.06 Lakhs
25
20
14.5 Lakhs
15
7.99 Lakhs
10
5
0
For Debt Swapping
For income generation
activities
For Social needs
Total
Relief in interest burden per annum
7
in Gopularam H/o Maharajpet(V) of Rangareddy District
6
5.33 Lakhs
5
4
3
2
1.33 Lakhs
1
0
Interest amount paid by poor families in the village as on
TFI
After TFI
Building up of Assets of the poor in T.F.I.
Village : Gopularam
120
100
96
Before T.F.I
After T.F.I
80
60
52.5
42.7
40
35
22.5
21
20
9
6
0
5
4
0
0
Milch Animals
Auto Rickshaw s
Bore w ells for irrigation
Small Business
Land holding(in acres)
Land taken on lease
Increase in Annual Income of the poor
in Gopularam H/o Maharajpet (V) of Rangareddy District
75.48 Lakhs
80
70
58.73 Lakhs
60
50
40
28.51 %
30
16.75 Lakhs
20
10
0
Before TFI
After TFI
Difference
% of change
EFFECTIVE IMPACT OF TOTAL FINANCIAL INCLUSION ON THE POOR
IN GOPULARAM h/o MAHARAJ PET (V)
75.48
80
Before TFI
70
60
44.41
50
Rs. in
Lakhs
58.73
After TFI
40
30
16.83
20
9.08
5.33
10
1.33
1.76
0
Deb t
Interest amount
Annual Income
as % of annual
income
Money Lenders
16.83
5.33
58.73
9.08
Bankers
44.41
1.33
75.48
1.76
The impact of TFI vis-a-vis SHG-Bank Linkage
Name : Mrs. Krishnaveni, VSP dist.
50000
50000
Bank Linkage
40000
Additional income
34524
30000
20000
10000
0
5000 10000 10000
1500
0
0
1st
2nd
3rd
4th
linkage linkage linkage linkage
TFI
The impact of TFI vis-a-vis SHG-Bank Linkage
Name : Mrs.Ananthamma,Medak dist.
Bank Linkage
70000
Additional income
60000
50000
40000
30000
3000
8000
20000
8000 4500
1000
9500
10000
3000
0
0
1st
2nd
3rd
4th
linkage linkage linkage linkage
70000
40000
TFI
The impact of TFI vis-a-vis SHG-Bank Linkage
Name : Mrs.Satyavathi, Khammam.
Bank Linkage
120000
100000
80000
Additional income
46000
60000
40000
20000
0
120000
1000
8000
4000
2000
0
0
1st
2nd
3rd
4th
linkage linkage linkage linkage
TFI
The impact of TFI vis-a-vis SHG-Bank Linkage
Name : Mrs.N.Jyothi, W.G.Dt
60000
58000
Bank Linkage
60000
50000
40000
30000
20000
10000
0
Additional income
15000
2000
0
10000
0
0
1st
2nd
3rd
4th
linkage linkage linkage linkage
TFI
Achievement done sofar
2006-07
Total Villages covered:320
Total SHGs covered:5218
Total Financial Assistance extended:Rs.173.43 Crores
2007-08
Total Villages covered:1356
Total SHGs covered:24456
Total Financial Assistance extended:Rs.717.48 Crores
FOOD SECURITY
The reason
• The availability of rice under PDS is on an
average 15 kg/month per family
• The requirement of rice for an average
size family in rural area is 50 kg/month
• The gap is on average 35 kg/month
• The 35 kg/month is used to be procured
from open market
• 2/3rd of the food security of the poor
becomes vulnerable and subject to market
fluctuations
The coping mechanism
• The stream of income of the poor is not
regular-it is fluctuating on day basis
• The expenditure for food for each day is
more or less the same
• The negative gap is being met by the poor
either through borrowing or obtaining the
food grains on credit basis or adjusted with
low intake
• The sufferers in the family are women and
children
Objectives
• To attempt to minimise the “Food Gap” in POP
and the Poor
• To facilitate for the emergence of ‘Total Food
Security’ to the target poor at household level
• To minimize the rate of exploitation in
consumption expenditure made by the poor.
• To provide access to good quality and accurate
quantity of rice by the target poor through
cheaper rates
• TO correlate the nutritional improvement in the
pregnant women and children with food security
initiative
Rice Credit Line-Reduction in Food Gap
• Identifying the gap between the actual
requirement of rice per month for each
house-hold and the rice availability from
FP shop
• Consolidating the requirement at VO level
• Provision of funds from the CIF @ 90 % of
the required funds – 10% being the
beneficiary contribution
The Cyclical Process in Rice Credit Line
• Procurement of required rice on monthly
basis by the VO from open market
• Distribute it to SHG members through
SHGs
• Recovery of money through 3 or 4
installments by the VO from SHGs in the
same month with little profit margin
The Process
• Sitting with the members of each SHG
• Analyse the consumption pattern
• Arriving at the rate of losses in respect of
purchase of each commodity
• Find out of the requirement of each
member
• Implementation in few VOs in each
Mandal.
The facilitation support
• Training the VO Executive Committee
• Training the CC and Activists in pilot
villages
• Facilitating the emergence of purchase
committee, monitoring committee and
recovering committee in each VO.
• Introduction of Books of Accounts.
Implementation process-the collection of
indent
• Initially, requirement of
each member in each
SHG will be collected.
• Requirements of the VO
will be arrived.
• Proposal will be
sanctioned and the VO
will be SPIA.
• The purchase committee
procures the rice by
conducting market survey
in respect of quality and
the price of the
Implementation process-the
distribution
• The distribution committee will distribute to
SHG leaders.
• The SHG leaders will distribute to each
member on the same day.
• At every stage of distribution, the
acknowledgements will be collected.
Time line
• First of every month SHG requirement is
collected,
• 2nd to 4th of every month VO level
requirement is collected,
• 5th to 10th of every month, distribution of
rice from the mill to the VO, VO to SHG,
SHG to members.
Time line (contd..)
• 10th every month, last date for distribution
to the last member and collection of 1st
installment.
• 17th2nd
installment,
• 24th ,
3rd
installment ,
• 30th / 31st
final installment.
The basic model-rice centered
• Only rice will be included
• Recycling will be for
every month or for every
six months
• One month-procurement
from open market or by
procuring the paddy
• Six months- procurement
of paddy, mill it in local
rice mill and distribute to
SHGs for every six
months
The Comprehensive model
• The commodity basket includes five
commodities- rice, red gram, tamarind,
edible oil and red chillies
• It will be either one month model or three
month model or six month model
• In chenchu and other tribal areas the Food
Security Basket will comprise 25-30
commodities-all house hold requirements
Procurement
• If rice or paddy, it is at VO level
• In respect of red gram,
tamarind, edible oil and red
chillies it will be at VO level or
at MS level or at Area level
• At VO level and MS level
procurement committees are
positioned out of the VO-EC or
MS-EC as the case may be
• At AREA level the procurement
committee is constituted with
two members from each MS
within that MS
Recovery
• If it is monthly recycling,
the recovery will be
completed from the
members within 3 weeks
• If it is 3 month/6 month
model, recovery will be
completed within 5
months
• In monthly model, the
instalments will be on
weekly basis
• In 6 monthly model the
instalments will be on
monthly basis
Funds
• The corpus of the SHG
• The CIF from the VO/MS
• The cash credit limit by the bank to the VO
Inclusive approach
• Within the SHG, the food
security plan is prepared
by the SHG taking each
member’s requirement ,
particularly the POP- both
quality and quantity and
the nature of food grains
• The repayment
instalments will be fixed
as per the convenience of
the members
• The small loan provision
is available in the SHG to
the member in case she
is not able to repay that
instalment
• A poor women in
Dondapadu Village of
Thulluru Mandal Cooking
Rice
The progress
•
•
•
•
•
Total no of VOs
– 27,000
No of VOs covered
– 6827
No of SHGs covered
–1,83,241
No. of house-holds covered – 19,67,437
Quantity of rice
– 68,860 MT/month
-- 816,323 MT/year
• Total turnover per year -- 898 crores
• Total cost of the project – Rs.68 crores
ANALYSIS OF "FOOD GAP" IN POOREST OF THE POOR AND THE POOR
HOUSE-HOLDS
Family
members
Sl.
No
.
Name of the
House Hold
.(1)
.(2)
Adul
ts
Child
ren
per
day
requi
reme
nt
.(3a)
.(3b)
.(4)
Mont
hly
requir
emen
t
Consumption
Before RCL
After RCL
Defi
cit
(in
Kgs)
% of
defic
it
per
day
per
mont
h
.(5)
.(6a)
.(6b)
.(7)
Defi
cit
(in
Kgs
)
% of
deficit
per
day
per
mont
h
.(8)
.(9a)
.(9b)
.(10)
.(11)
1
Kalva China
Mariamma
3
3
2
60
1.6
48
12
20
1.8
54
6
10
2
Kalva Peda
Mariamma
3
2
1.8
54
1.5
45
9
16.
7
1.7
51
3
5.6
3
Kukkamudi
Jyothi
3
3
2
60
1.6
48
12
20
1.8
56
6
10
4
Macherla
China
Venkaiah
4
4
3
90
2.6
78
12
13.
3
2.8
84
6
6.7
5
Kalva
Seshamma
3
3
2
60
1.6
48
12
20
1.8
54
6
10
6
Dasari
Masthanamma
4
3
3
90
2.6
78
12
13.
3
2.8
84
6
6.7
Source of Supply of Rice to the Poorest of the Poor & the Poor
Source of Supply
Before RCL
Sl.
No.
.(1)
Name of the
House Hold
.(2)
After RCL
FP
shop
s
Kirana
Shops
Paddy
Milling
Total
FP
shops
Kirana
Shops
Paddy
Milling
RCL
Total
.(3a)
.(3b)
.(3c)
.(3d)
(4a)
.(4b)
.(4c)
.(4d)
(4e)
1
Kalva China
Mariamma
20
28
0
48
20
0
0
34
54
2
Kalva Peda
Mariamma
16
29
0
45
16
0
0
35
51
3
Kukkamudi Jyothi
25
23
0
48
25
0
0
31
56
4
Macherla China
Venkaiah
30
48
0
78
30
0
0
54
84
5
Kalva Seshamma
26
21
0
47
26
0
0
28
54
6
Dasari
Masthanamma
27
51
0
78
27
0
0
57
84
The Impact
• Reduction in “Food Gap”
and increase in food
intake by the poor
• Reduction in price
• Increase in real income
• Increase in quality
• Ensuring “Total Food
Security”
• Caring for the aged,
destitute and pregnant
women
• Capital formation in VOs
and MSs