A self-help group (SHG) is a village-based financial and social intermediary usually composed of 10–20 local women. The first SHG was formed by Mysore Resettlement and Development Agency (MYRADA) in 1985. After the success of their initiative the concept was replicated exponentially in all parts of India. Later on from 1992 National Bank for Agriculture and Rural Development (NABARD) had taken greater initiatives to link the SHGs with banks commonly known as SHG bank linkage programme. Various Government and Voluntary organisations have promoted the linkage programme and tried to link them with main stream economy.

Revolving Fund Concept: The conceptual framework of Integrated Watershed Development Programme (IWMP) is to augment the livelihood status of the people dependent on a particular catchment area. District Watershed Development unit (DWDU) is acting as project monitoring and implementing agency in Patan district of Gujarat. In few projects where forest area is more than 33 percentages then the implementing agency is District Forest department. DWDU has taken a major initiative in promotion of the concept of revolving fund in Patan under the IWMP project. By definition ‘Revolving Fund’ is a capital raised with a certain purpose which can be made available to the same users more than once. The Revolving Fund is expected to be utilized for income generation activities and return within 18 months. This repayment will be deposited in the Watershed Development Fund (WDF) to utilize the fund in future.

The risk factor of this concept is delayed repayment of the fund or turning loan amount into a bad debt. To overcome the risk factor DWDU has promoted revolving fund on SHG basis rather than individual basis. The SHG then lends the money to the individual as per their demand and norms of the group. It has been observed that due to proper selection of individuals by the group and peer pressure, the repayment is secured. Beside this the SHGs are formed with majority of similar occupational and social backgrounds, therefore the group activities selected by them are quite similar in nature. Hence increases the chance of success. This also increase the managerial ability of the SHGs as all decision was taken by the groups themselves.

1. Availability of fund at 1 % interest which is very nominal than other informal lending sources. The money lender is the main source of informal credit in village with usually interest rate of more than 24-30 % depending of the requirement of the individual. While revolving fund is interest free. In some cases SHG itself decided to impose minimal interest to the borrower to ensure repayment and enhancement of group savings.

2. Timely availability of fund: The fund flow is flow Village Watershed Committee (VWC) to respected SHGs. The SHGs then provide the fund to the individuals ensuring repayment within 18 months. The administrative process is simple and there fund is available timely to individuals.

3. Promote group activities: DWDU is acting as a key agency for capacity building of the SHGs. Hence group activities based on livelihood enhancement are being promoted with proper training from different resource persons.

4. Being different from a grant based system this approach enhance the group’s ability to become self sustainable.

5. Improves managerial skill of the SHG

The first revolving fund of Rs 25000 was given to Jaychetrapal SHG for package tea business in Bhilot village (IWMP-11) of Radhanpur Taluka. The group then procured bulk quantity of local branded tea which is having high demand in that area, and packet it in small pouches to sell in the village. The indicator of their healthy business is depicted by the timely repayment of the loan. Within 6 months they have already deposited Rs 10000.

Being encouraged by their success revolving fund is highly encouraged in IWMP project area of Patan. In Mubarakpura village (IWMP-2) at Sami taluka a group named Arti SHG has taken revolving fund on Nov 2012 for procurement of cumin seeds for cultivation on farm land that was taken on lease by the group members. The seed money was given to 7 members of that SHG. Although cumin production was not very high due to acute shortage of rainfall but still they were able to repay the amount by May 2013 (within 6 months). Now again this year they are willing to take revolving fund for cumin expecting a higher yield compared to last year as average rainfall in this region is more than last three years average.

Naroda Gangaben Chehabhai, a member of GangaMaiya SHG, Anwarpura Village (IWMP-9 ) located at Sami Taluka, received Rs 25000 as revolving fund under Integrated Watershed Management Prorgamme (IWMP) during April, 2013. With her own contribution of Rs 6000 she purchased a Mould Board plough with Rs 35000. The MB Plough with her own tractor have been rented for Rs 600/hr. As her first business startup she had managed to operate nearly 45 days for the Kharif season of 2013. Her reported average revenue was approximately Rs. 63,200 whereas the expenditure was Rs 34650 towards diesel expenses and Rs 20350 for maintenance (including driver). Her net income during the season is Rs 8200. Now she is all ready to catch the Rabi season and also started to repay to revolving fund. On the other side it is also helping other farmers for timely tillage practices.

Mrs. Jamiben Kanji bhai native of Motipipli village IWMP -11 located in Radhanpur Taluka is a member of Jai Chamunda SH started on Nov, 2007 with 16 members. Being a member of the SHG, Jamiben received various trainings on understanding of the concepts of savings, skills development and entrepreneurial development trainings from DWDU. After the training she decided that it would be good to start a provision store as there were no other provision stores in nearby adjoining areas. Incurring her demand, the Village Watershed Committee has provided Rs 25000 as revolving fund to the SHG on 6 July 2013 to start a provision store. She manages to procure materials in bulk from the Radhanpur market situated at 10km from the shop. At the starting the shop was doing average business and she was able to save Rs. 200 per day (i.e monthly earning of Rs 6000). Within few months she was able to understand the customer preference and apart from regular provisional goods she also keeps seasonable goods and manages to earn Rs 4000-5500 per month taking into the account expenses on electricity. She has so far repaid an amount of Rs 7000 to the SHG.

Small kirana shop, cutlery shop, cattle feed shop, agri implements and various other small business and entrepreneurship has been evolved by this small effort of revolving fund. Till now nearly 28.38 lakh revolving fund has been disbursed to more than 76 groups and 40 villages. In all the groups the repayment time is remarkable.

Although it is a minor step but these small initiatives are bringing great impact on the life of people. There is still a huge scope to promote revolving fund for not only in Patan but in other villages of Gujarat. Now the SHGs themselves are very much interested to receive the revolving fund and generate alternative livelihood.

Contributors: M.K.Patel (Project Director, Patan), Manishaben Patel (MDT-CM), Chetnaben Patel (WDT CM), Nainaben Patel (WDT-CM), Abhinandan Das (Technical Expert, Patan), Megha Jhamb (Technical Expert, Patan)

Visdaliya village is located in Mandvi block of Surat District of Gujarat. The total geographical area of village is 164 Ha. The region is characterized by moderate rainfall. The average rainfall in the region is only 1000-1100 mm. The topography of the land is undulating with moderate slope. Mostly inhabited by the tribal communities of Vasava, Chaudhari and Gamit, poverty in this village is partly due to poor natural resources, lack of irrigation facility and small land holding. Most of the villagers are dependent on forest resources especially for fuelwood and fodder. Some of them also harvest small timber for construction of kacha houses and agriculture implement purposes. Most of the villagers are engaged in agricultural activities for their livelihood. Forest department provides land for agriculture purpose on lease basis which is known as ‘Sanad land’. Paddy and vegetable cultivation is the main crop for earning and for domestic consumption purpose.

Integrated Watershed Management Programme (IWMP) had started its interventions in the village in 2010-11 (IWMP 6- Ambapor project) which includes 19 villages. The total geographycal area of the watershed is 7248.2 Ha. out of which 4700 Ha was proposed for treatment under Integrated Watershed Management Programme (IWMP).

Mahendrabhai Mangabhai Chaudhari a tribal farmer who owns 0.3 Ha (0.75 acre) of land in the village has benefited by renovation work done in his openwell and a gabion structure constructed in the nearby nalla that flows through his land. This activities under IWMP has helped in reducing soil erosion and recharging groundwater thus enhancing his agriculture productivity. He used to cultivate kharif paddy, which yielded about 40-45 quintals in 2/3rd of his land and vegetables in 1/3rd of his remaining land. His annual income was approx. Rs. 1,00,000/- from agriculture upto the last year.

IWMP programme has provided subsidy of Rs. 24000/- for cultivation of creeper vegetable to him in the month of May, 2013 for enhancing his agricultural productivity. The subsidy includes 100 RCC pole, 67 Kg galvanise wire and 10 pheromone traps in 0.11 Ha (0.27 acre) of land. The contribution from the beneficiary includes high yielding seeds and labour cost for land preparation, pit digging, installation of pole, sowing of seeds, weeding and harvesting of crops in one season accounting to nearly Rs. 5500-6000. In Kharif season he cultivated bitter gourd as main crop and chillies as an intercrop. The total production of bitter gourd and chilly was 480 Kg and 224 Kg. The total earning was Rs. 37000/- by selling both these vegetables in the nearby markets of Mandvi and Zhankhvav. Beside this his own consumption amounts to Rs 3000/- approximately. Due to heavy rainfall during 2013 he had harvested the crop prior to its actual season. In Rabi season he has cultivated bottle gourd as main crop and tomato as intercrop and earned Rs. 39000/- by selling 2150 Kg bitter gourds and 1620 Kg tomatoes excluding his own consumption amounts to Rs. 3000/- approximately. Accumulating both the season he has earned net profit of nearly Rs. 70000/- from 0.27 acre of land through vegetable cultivation. Now his annual income is approximately Rs. 1,65,000/- from agriculture in this year.

 According to him this system can yield better profit in small acreage of land. Before that he used to cultivate vegetable on land but most of them were spoiled due to direct contact of water and soil. Hence the produces were unable to fetch good market price. The wastage was also more in earlier system of cultivation. Beside this, intercropping in possible with this “Mandva” system, hence augmenting the income exponentially. Most of the farmers had replaced the wooden pole with cement ones as wooden pole is often infested with termites. After viewing this positive impact most of the farmers demands the same. Total 300 farmers in three blocks namely, Mandvi, Mangrol and Umarpada of Surat district are adopted such a system through IWMP. Three training programme were organized by DWDU with the help of KVKs in Mandvi, Mangrol and Umarpada blocks on cultivation practices of vegetable crops for better yield.

The mandva method is considerably protected from pest and termite attack and also enhances vegetable production. The quality of produces is also of grade A due to less contamination from soil and water borne diseases. Most of these cultivators are small and marginal farmers and this intervention has brought a significant change in their livelihood. It is highly accepted in Surat districts and there is a huge scope to promote this activity in other places with suitable condition. The market of this produces are comparatively low in Kharif season than in Rabi season. Hence promotion of creeper vegetable in Rabi season with life saving irrigation could bring substantial change in the livelihood status of millions of farmers.

Contributors: N. A. Suthar (Project Director, DWDU, Surat), Ms. Prajakta Rathod (Technical Expert), Tejas Rathod (WDT, Agriculture)