It will ensure professional management of all poverty eradication schemes.
Chief minister Narendra Modi's latest idea for the welfare of the state's poor is to set up a Rs100 crore company for poverty eradication. This is in step with the scheme 'Garib Kalyan Mela' that the CM had launched recently after his government admitted in last month's Chintan Shibir that it had had failed in reaching out to the poor.
The company will be called 'Gujarat Poverty Eradication Company' and it will be launched in a few months. Highly placed sources in the state government said, "After years of typical poverty eradication efforts in the state and non-impressive results, now the state government has decided to take a new approach to solve the problem.''
According to him, to bring down the poverty in the state, the government has recently established state livelihood mission. Under this mission the government has decided to establish a 'Poverty Eradication Company' which will work on various profitable businesses, giving direct benefits to the poor. "Last week, the CM cleared the proposal. Now the process of establishing the company will be initiated shortly. Rs100 crore equity fund has been estimated to start the company. The form of
company will be on PPP (public private partnership) model.''
The sources further said that, "The government has carried out studies on different states with respect to poverty eradication initiatives. In states like Andhra Pradesh, Karnataka and Kerala, the government efforts are run by a society while Gujarat has decided to manage the initiatives through a professionally run company." The company will promote micro finance and labour intensive projects like dairy, agribusiness, small and cottage industry projects. The government also aims to amalgamate the state commissioner of cottage industry which runs various schemes to promote labour intensive industry.
Initially, the company will focus on rural poor while urban poor will be targeted in the next phase. Schemes of various departments will also be reshaped.
The company will tie up with various local NGOs and self-help groups. At present, the government has no separate staff for poverty eradication programme. The company will employ around 3,000 qualified personnel from state to taluka to cluster level.
The company's focus will be to upgrade the status of the poor permanently through providing him/her permanent livelihood instead of giving him/her piecemeal benefits. "The company will
be formed in next few months,'' the sources said.
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