Schemes : State Schemes : Mahalir Thittam by the Tamil Nadu Corporation for development of women Ltd. (TNCDW)

1.10 Mahalir Thittam by the Tamil Nadu Corporation for development of women Ltd. (TNCDW)

1.10.1 Mahalir Thittam Pl. click here for all G.Os

Mahalir Thittam is a socio-economic empowerment programme for women implemented by Tamil Nadu Corporation for Development of Women Ltd. Mahalir Thittam is based on Self Help Group (SHG) approach and is implemented in partnership with Non Governmental Organisations (NGOs) and Community based organizations. The SHG approach was started in a small way in Dharmapuri district in the year 1989 vide G.O.Ms.No.764, Social Welfare & NMP Dept. dt.1.9.1989 with the assistance of International Fund for Agricultural Development (IFAD). Later the scheme was extended to the erstwhile Salem and South Arcot districts in the year 1991-1992 and further extended to Madurai and Ramanathapuram in the year 1992-93. Following the success of the IFAD project, Mahalir Thittam project was launched with State Government funding from 1997-1998 vide G.O.Ms.No.292 Social Welfare & NMP Dept. dt. 4.12.1996 and was progressively introduced in all districts of the State. Today the SHG movement is a very vibrant movement spread across all districts of the State with nearly 59,00,000 women as members. As on 31.3.2009, there are 3,91,311 SHGs with a total savings of Rs.2062.04 crores.




Mahalir Thittam is implemented in partnership with NGOs who help in formation of SHGs, provide training and monitor them. The NGOs are given funds for providing the above services. Interested NGOs are affiliated as partners with Mahalir Thittam if they satisfy the norms for affiliation.

 The hallmark of the SHGs promoted by Mahalir Thittam is the systematic training provided to the SHG members and the office bearers. This capacity building brings about qualitative changes in the attitude of the women and promotes cohesion and effective functioning of the group.

 All the SHG members are imparted training in 4 modules for 4 days to orient them to the SHG concept. The office bearers of the SHGs (Animator and Representative) are given training in 3 modules for 6 days. This training enhances the leadership quality, team building spirit and capacity to maintain books of accounts. In addition, SHG members who are interested in starting economic activities or develop skills to get self employment are provided skill training. The skill training includes a 5 day capsule on entrepreneurial development.

In order to bring about synergy and better coordination in implementation of SHG programmes, TNCDW which was under the administrative control of Social Welfare Department was brought under the administrative control of Rural Development and Panchayat Raj Department vide G.O.Ms.No.81 Rural Development & Panchayat Raj Dept. (CGS-II) dt.20.7.2006.

 1.10.2 Credit rating and Linkage

The SHGs that complete 6 months become eligible for credit rating. Credit rating is a bench marking exercise to grade the group and ascertain its credit worthiness. The credit rating committee consists of an Assistant Project Officer from Mahalir Thittam, a representative from DRDA, a Banker, and a NGO representative. In an effort to strengthen the Panchayat level federation (PLF) of the SHGs, one representative from the PLF has been included in the credit rating committee. Regularity of savings, frequency of meetings, proper maintenance of registers, internal loaning and repayment are some of the key parameters for rating of groups. The successfully credit rated SHGs, become eligible for credit linkage. They are given revolving fund through schemes like SGSY, TAHDCO or directly provided loans by banks.

The groups also undergo a second credit rating after the lapse of another six months to ascertain their readiness and suitability to undertake an economic activity. The groups which pass the second credit rating are provided financial assistance to start an economic activity through SGSY / TAHDCO schemes along with bank funding.

 As on 31.03.2009, the total amount of Bank loans disbursed to SHGs from 1989 is Rs.5165.95 crores, out of which Rs.3400.71 crores has been disbursed since June 2006. For the current year a target of Rs.1858 crores has been fixed for credit linkage and the achievement so for is Rs.2002.56 crores.

 1.10.3 Revolving Fund to Urban SHGs

After the groups in rural areas pass the first credit rating, Revolving Fund (RF) subsidy of Rs.10,000/- is provided under Swarnajayanti Gram Swarozgar Yojana (SGSY) to facilitate credit linkage with the banks. In addition to the subsidy given by the Government, the Banks provide cash credit upto Rs.30,000/- per group. The RF subsidy was not available to SHGs in urban areas which restricted their access to credit from Banks. Therefore the Government announced a scheme to provide RF subsidy to urban groups from the 2006-07 vide G.O.Ms.No. 177 Rural Development & Panchayat Raj (CGS-II) dated 5.12.2006, . Rs.30 crores have already been provided to give RF subsidy to 30,000 urban SHGs. In 2008-09, the Government have decided to provide RF subsidy to all the eligible 1.50 lakh SHGs. The Government have earmarked Rs.150 crores for this purpose. As on 31.03.09, 1,34,413 SHGs have been assisted for a tune of Rs.131.41 crores as subsidy and with the Bank credit of Rs.644.97 crores.

1.10.4 Panchayat Level Federation (PLF)

In Mahalir Thittam, federations of SHGs are formed at Village Panchayat Level called Panchayat Level Federation (PLF). These federations, by pooling in talent and resources and exploiting economies of scale in production and marketing, can benefit member SHGs immensely. They can also guide and monitor functioning of SHGs in all Village Panchayats and strengthening them is the key for ensuring sustainability and self reliance of SHGs.
 From 2006-07, the Government of Tamil Nadu have been taking various initiatives to strengthen the PLFs.
  • 6,912 well-functioning PLFs have been provided seed money of Rs.10,000/- each.
  • To strengthen the unity and team spirit, cultural competitions were organized among PLFs at Block and district levels.  Rs.3.20 crores were sanctioned for the year 2007-08 and 2008-09 for conduct of these competitions which drew overwhelming response from SHG members.
  • Manimegalai awards are presented to the best PLFs at State and district levels in order to motivate them.
  • PLF representative has been included as a member of credit rating team.
  • Two representatives from PLF have been included in the payment committee for NREGA Scheme.
  • One PLF representative has been proposed for inclusion in the committee for selection of Samathuvapuram beneficiaries.
  • PLF certification has been made mandatory for processing NGO claims for new group formation, monitoring and training.
  • Well-functioning PLFs are affiliated under Mahalir Thittam on par with NGOs for formation of new SHGs, monitoring etc.
  • Registration of all SHGs, formed by the NGOs with the PLF has been included as a covenant in the new NGO agreement.
  • Government have issued orders vide G.O.(Ms) No.125 Dt:21.07.2008 to restructure PLFs to make them inclusive and more democratic and participatory in functioning. In order to give legal status and access to institutional credit to PLFs, orders have been issued to register them under Tamil Nadu Societies Registration Act, 1975.
  • An action Plan to restructure all the PLFs in the State in the next three years has been drawn up.

Skill training for Women



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1.10.5 Skill Training for Youth

Given the popularity of the State as an industrial investment destination, there is huge demand for skilled manpower in manufacturing and services sector. By providing relevant skill training, unemployed youth can be productively engaged benefiting the society as well as the individual. With this objective in mind, TNCDW has imparted skill training to 26,408 youth through reputed industrial houses and institutions like MRF, NOKIA, Saint Gobain among others.
1.10.6 Manimegalai Awards

To encourage well-functioning SHGs and PLFs, the Government had announced Manimegalai awards at State and district levels. Awards are presented to 5 best PLFs and 10 best SHGs at the State level. One PLF selected as best at the district level and 3 SHGs found to be the best at the district level are given Manimegalai awards and the best SHG at the Block level is given a certificate. The awards were presented for the year 2006-07 in September 2007 and 2007-08 in November 2008 and have been instrumental in motivating the SHGs and PLFs to strive for better performance.
1.10.7 Cultural Competitions

To strengthen unity and team spirit, cultural competitions are organized among SHG members at Block and district levels. Rs.3.20 crores was sanctioned for the year 2007-08 and 2008-09 @ Rs.1.60 crores per year for conduct of these competitions and it drew overwhelming response from SHG members. The competitions have been conducted during November – January in the current year.
1.10.8 ID Cards to SHGs
To help SHGs gain recognition and also easy access to government officers and Banks, ID cards are proposed to be issued to all Mahalir Thtitam SHGs in a phased manner. SHG ID cards have been distributed in 4 pilot blocks and first phase printing of SHG ID cards work is under progress in 15 districts.
For more details on Mahalir Thittam please visit www.tamilnaduwomen.org
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