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 wont go for regular check-up of
deceases
 Need for the Scheme

Uniqueness of existing schemes Insurer,

Insured, TPA and Service Providers are un-
happy

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 Free OPD Admission for

treatment Consultation Surgery

Intimation to
TPA/ZS by NWH
Patient pays 10%
of the bill Pre-Authorization-
from TPA/ZS
Investigation
Special rates CASHLESS
Hospitalization

Member signs on
the Claim Form
Discharge
 Claims Flowchart
Receipt of claims
From NWH

Document Incomplete
verification
Communication To Hospital

Complete
Claim ID Generation

Medical Scrutiny and Claims Processing

Claim pending for supporting Approved Claims

Documents

Submitted To Trust (Weekly)

Communication To Hospital

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
In Networking Hospitals : 4,460.
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

Surgical Cases treated

Physical : 277
Amount : Rs. 14,37,664
 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 22 8%

and Others

TOTAL 273
 Medical Cases Treated

185
200
180
160
140
120
76
100
53
80
60 27 22
40
20
0
Cerebral Jaundice Normal Typhoid Others
Malaria 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

60
52

40 34
20
20

0
Hysterectomies Orthopedic Caesarians Hernia Others
Hydrosols
Community Managed Life
Insurance Scheme
 Community Based life Insurance Scheme

Objective

Need

Evolution

Implementation

Claim Settlement Process

Impact

SERP
DRDA
 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

SERP
DRDA
 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.

SERP
DRDA
 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.

SERP
DRDA
 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
Natural Deaths : 6459
Accidental Deaths : 756
Claims settled sofar : 6133
Natural Deaths : 5515
Accidental Deaths : 618
Claim amount settled : Rs.15.73 Crores

SERP
DRDA
 District-wise Achievement 2007-08
District Women Claims Claims Claim amount
covered received settled settled
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

SERP
DRDA
 District-wise Achievement 2007-08

District Women Claims Claims Claim amount

covered received settled 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

SERP
DRDA
 Implementation in Visakhapatnam 2006-07
Amount collected by CBO per member Rs. 105/-

TATA AIG life insurance premium Rs. 61/-

New India Assurance premium Rs. 12/-
Corpus available per member at ZS 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.

SERP
DRDA
 Implementation in Visakhapatnam 2007-08
Amount collected by CBO per member Rs. 80/-
Life Insurance Corporation Rs. 50/-
National Insurance Rs. 18/-
Corpus available per member at ZS 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.

SERP
DRDA
 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.

SERP
DRDA
 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.

SERP
DRDA
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 vis-
-vis poor

PHY SIC A L & F IN ' SPR EA D ' in R U R A L A R EA ( samp ling )

83.6 85.3
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--vis debt

Own funds/SHG/Bank Debt from money

linkage lenders/ MFIs

Food House
Working capital Health
Health Marriage
Children education Land-
purchase/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

Deepening the credit
Issue of general purpose
credit card
or/and 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)
Financial inclusion not deeper - empirical
evidence

5
.0

5
60

7.
300
1
20
200
Fin

1
100

17
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 .
Total
Loan Interest interest
amount per amount
Interest No of
from month paid by
per SHGs in
money Rate of paid by SHGs per
annum the
leners/mfi interest SHG to annum in
paid by district
in each money a district
SHG (average)
SHG lenders/ to money
(average) mfi lenders/
mfi

230
1,50,000 36 4,800 57,600 40,000
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 Requirement for investment in income generating asset
o 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:
Eco To liquidate high cost debts IGA Social needs
Socia
Stat
Name l
us Requir
Sl of the Staus Money Grand
(PO Othe Tot Investme Nee ed Tota
no memb (SC/S Lender MFI Unit Total Total
P/P rs al nt d amoun l
er T/BC/ s
oor/ t
OC)
NP)

TOTAL

TFI Plan total: Signatures of SHG reps:

Outstanding bank-linkage: 1

Grand Total: 2
 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 Correlated with income

of the poor

Principal Ins Number Principal Ins Number Principal Income Ins Numbe
amou of Ins amo of Ins amou r of Ins
nt unt nt

1000 23 50 1000 23 50 1000 1200 40 30

5000 115 50 5000 23 150 5000 1000 100 55
10000 230 50 10000 23 500 10000 2500 350 38
 Repayment Plan of Members to SHG &
Repayment Plan of SHG to Bank
Sl no Mem Loan Sources INCOME Repayment No of
inst
monthly crop Total Monthly Crop
Principal int Tot
(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
TOTAL 365000 320000 65000 385000 10350 3650 14000 30000
REPAYMENT 6000 3650 60
TO
BANK

SURPLUS IN SHG 4350 30000

Why surplus in SHG?
Average corpus needed in SHG to
Loan amount Year-wise distribution avoid money lenders/ mfi
from Money of loan (taken from
Lenders money lenders) Year-wise TOTAL

150,000 < one year st

60,000 1 yr 60,000
One year to 2nd year
two years 60,000 45,000

> two years 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 enoughto
liquidate bank loan

Loan from Money Amoun No Total

Loan from Bank differ
Lender EMI of Rate of t of of amount
ence No
the reimbu PAVA SI of
Ra betwe of
Loan Inter Inte bank rsemen LA X PAVAL
Rat te en inst
from est Loan rest per t of VADDI mo A
e of of ML/ al
money per from per month PAVA for nth VADDI
inte int mfi me
lender or mont bank mo (princi LA every ly /per
rest ere and nts
MFI h nth pal) VADDI SIX spe membe
st bank
months lls r

10000 36 300 10000 9 73 227 230 44 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
SHGs 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 its 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 VOs scheduled meeting
Computerisation of transactions
One Anchor Person for each bank-
branch
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 For Social needs Total
activities
 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

0
For Debt Swapping For income generation For Social needs Total
activities
 Relief in interest burden per annum
7
in Gopularam H/o Maharajpet(V) of Rangareddy District

6
5.33 Lakhs

2
1.33 Lakhs

0
Interest amount paid by poor families in the village as on After TFI
TFI
 Building up of Assets of the poor in T.F.I.
120
Village : Gopularam

100 96

Before T.F.I
After T.F.I

80

60
52.5

42.7
40
35

21 22.5
20

9
6 5 4
0 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

80 75.48 Lakhs

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
58.73
60
After TFI

50 44.41

Rs. in
40
Lakhs

30

16.83
20
9.08
5.33
10 1.33 1.76

0
as % of annual
Deb t Interest amount Annual Income
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
34524
40000 Additional income

30000

20000 5000 10000 10000

10000 1500
0
0
0
1st 2nd 3rd 4th TFI
linkage linkage linkage linkage
 The impact of TFI vis-a-vis SHG-Bank Linkage
Name : Mrs.Ananthamma,Medak dist.

Bank Linkage
70000
70000 Additional income
60000
50000 40000
40000
30000
3000 8000
20000 8000 4500
1000 9500
10000 3000 0
0
1st 2nd 3rd 4th TFI
linkage linkage linkage linkage
 The impact of TFI vis-a-vis SHG-Bank Linkage
Name : Mrs.Satyavathi, Khammam.

Bank Linkage 120000

120000 Additional income

100000
80000
60000 46000
40000
1000 2000 0 4000 8000
20000 0
0
1st 2nd 3rd 4th TFI
linkage linkage linkage linkage
 The impact of TFI vis-a-vis SHG-Bank Linkage
Name : Mrs.N.Jyothi, W.G.Dt

Bank Linkage
60000
58000
60000 Additional income
50000
40000
30000
15000
20000 10000
2000
10000 0 0 0
0
1st 2nd 3rd 4th TFI
linkage linkage linkage linkage
 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.
17th- 2nd 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 A poor women in
security plan is prepared Dondapadu Village of
by the SHG taking each Thulluru Mandal Cooking
members requirement , Rice
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
 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
Consumption
members per Mont
Sl. day hly Before RCL After RCL Defi
Name of the Defi
No requi requir % of cit
House Hold Adul Child cit per % of
. reme emen per defic (in
ts ren per (in per mont deficit
nt t mont it Kgs
day Kgs) day h
h )
.(1) .(2) .(3a) .(3b) .(4) .(5) .(6a) .(6b) .(7) .(8) .(9a) .(9b) .(10) .(11)

Kalva China
1 Mariamma 3 3 2 60 1.6 48 12 20 1.8 54 6 10
Kalva Peda 16.
2 Mariamma 3 2 1.8 54 1.5 45 9 1.7 51 3 5.6
7
Kukkamudi
3 Jyothi 3 3 2 60 1.6 48 12 20 1.8 56 6 10
Macherla
13.
4 China 4 4 3 90 2.6 78 12 2.8 84 6 6.7
Venkaiah 3
Kalva
5 Seshamma 3 3 2 60 1.6 48 12 20 1.8 54 6 10

Dasari 13.
6 Masthanamma 4 3 3 90 2.6 78 12 2.8 84 6 6.7
3
 Source of Supply of Rice to the Poorest of the Poor & the Poor

Source of Supply

Before RCL After RCL

Sl. Name of the
No. House Hold
FP
Kirana Paddy FP Kirana Paddy
shop Total RCL Total
Shops Milling shops Shops Milling
s

.(1) .(2) .(3a) .(3b) .(3c) .(3d) (4a) .(4b) .(4c) .(4d) (4e)

Kalva China
1
Mariamma
20 28 0 48 20 0 0 34 54

Kalva Peda
2
Mariamma
16 29 0 45 16 0 0 35 51

3 Kukkamudi Jyothi 25 23 0 48 25 0 0 31 56

Macherla China
4
Venkaiah
30 48 0 78 30 0 0 54 84

5 Kalva Seshamma 26 21 0 47 26 0 0 28 54

Dasari
6
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