The scheme envisaged economic empowerment exclusively of women through trade related training, information and counseling extension activities related to trades, products, services etc. The Scheme has provided for financial loans through NGOs who were also provided GoI grant for capacity building. This Assistance was to be provided for self-employment ventures by women for pursuing any kind of non-farm activity.
Experience has revealed that apart from counseling and training, delivery of credit poses the most serious problem for the poor women. Furthermore, there is dearth of information with regard to existing status of women and their common needs for providing necessary support. Therefore, it was considered necessary that if poor women are to be economically empowered, appropriate programmes and schemes are to be designed so as to assist them in all respects. Since such women will not be able to have an easy access to credit, it has also been envisaged that the credit will be made available to applicant woman through NGOs who would be capable of handling funds in an appropriate manner. These NGOs will not only handle the disbursement of such loans needed by women but would also provide them adequate counseling & training for taking up productive activities. The focal point of the scheme is to provide grant assistance to the nodal NGO which has been sanctioned bank loan for passing through the same to eligible women for taking up non-farm activities.
There is a provision for Government of India Grant up to 30% of the loan/ credit maximum up to Rs. 30.00 lakh as appraised by lending institution/ banks. The lending institutions/ banks would finance loan assistance for women through NGO for undertaking non-farm activities , who usually have no easy access to credit from banks due to cumbersome procedures and because of their inability to provide adequate security demanded by banks in the form of collaterals. GOI Grant and the loan portion from the lending agencies to assist such women shall be routed through NGOs engaged in assisting poor women through income generating activities. Only those NGOs, who are having considerable experience (minimum 3 years) in taking and managing funds, taken either as loan or grant, shall be eligible under the Scheme. While the loan amount will be passed on to women beneficiaries, the Grant shall be utilized by the NGOs for activities accepted as grant activities in the appraisal report of the lending agency and capacity building of the NGOs. NGOs will be free to approach lending agencies of their choice, but such lending agencies are to be approved by the respective State/UT Governments and finally by the Office of the DC (MSME). The Government Grant portion would be finally approved by the Steering Committee, after taking into account the appraisal of the Project Costs by lending agency (ies) and, their in principle acceptance to grant the loan component and GoI grant component. The NGO which has been selected for Government Grant will not be considered for GoI grant again in the subsequent two years from the date of release of GoI grant .
Training & Counseling
Training organizations viz. Micro, Small and Medium Enterprises – Development Institutes (MSME-DIs), Entrepreneurship Development Institutes (EDIs), NIMSME, NIESBUD and NGOs conducting training programmes for empowerment of women beneficiaries identified under the scheme would be provided a grant upto maximum limit of Rs. 1.00 lakh per programme provided such institutions also bring their share to the extent of minimum 25% of the Government grant and 10% in case of NER, subject to the condition that applications from NER are recommended by NSIC/ IIE , Guwahati. The batch size for such a training activity will be at least 20 participants.
Eliciting Information on Related Needs
Institutions such as Entrepreneurship Development Institutes (EDIs), NIMSME, NIESBUD, IIE, MSME-DIs, EDIs sponsored by State Govt. and any other suitable institution of repute will be provided need based Government grant primarily for undertaking activities aiming at empowerment of women such as field surveys, research studies, evaluation studies, designing of training modules, etc. covered under the scheme. The activities are to be undertaken by the institution itself. No grant shall be provided for creation of posts. The grant could be used for meeting the expenses towards books, periodicals, consultants, computers including miscellaneous expenses etc. (related to specific projects). The grant shall be limited up to Rs. 5.00 lakh per project.
The Eligibility Criteria For Registration Of Ngos.
Be a legal entity with a minimum registration of three years.
Having experience in thrift and saving programmes with SHGs / individuals.
Be engaged in entrepreneurship and income generation activities for women.
Have basic infrastructure, qualified support staff and services to undertake microenterprise development for women.
Shall be eligible for Government Assistance i.e. shall not be blacklisted by any Ministry or any State Government under any scheme.
Shall not have any Government Assistance released earlier to the NGO pending i.e. Utilization Certificate overdue.
Financial Assistance for Capacity Buliding of NGOs
GoI grant will be maximum 30% of loan amount maximum up to Rs 30.00 lakh. Following norm will be followed for sanctioning Government Assistance/ grant for the various components of capacity building as per the proposal submitted by the applicant NGO. However, Steering Committee is empowered to modify the amount to be sanctioned under each sub-head.