Jairam Ramesh seeks corporates’ help for tribal fund

In its first major initiative of involving corporate India in developmental work, the government  has sought big business partnerships in setting up the Bharat Rural Livelihood Foundation (BRLF). 

Rural development minister Jairam Ramesh has written to corporates like Tatas, Reliance, Wipro and Infosys to join the foundation as contributing partners, to improve the livelihood of tribals in Central and Eastern India. NABARD and NDDB have also been roped in.

“We have called a meeting on April 27 in New Delhi of all the stakeholders to discuss BRLF,” said Ramesh on Saturday. He added that BRLF will be set up with a corpus fund of Rs1,000 crore. “The Centre will contribute Rs500 crore, while the rest will come from partners.”

The latest proposal, jointly evolved by the rural development ministry and the Planning Commission, envisages a concerted effort by the Centre, the states concerned, and civil society to work with tribals in 170 districts, of which nearly 78 are affected by Naxal violence.

“Such initiatives will promote inclusive growth in remote areas where tribals are excluded from benefits of growth and thus become vulnerable to Maoist propaganda.”

The Minister clarified that BRLF will not be a government body, but have its own chairman and CEO. “In its structure and composition, it will be similar to the Public Health Foundation of India, chaired by NR Narayana Murthy.”

He also stressed the need for expanding the women’s Self-Help Group (SHG) movement, as a tool of empowerment and promoting economic well being. Having met NABARD officials in the city on Saturday, the minister said: “The National Rural Livelihood Mission would connect at least one woman from every poor household across the country with SHGs  in five years. At present, we have three crore women who are members of SHGs. We have to raise it to seven crore in five years."

Ramesh noted that at present the southern states of Tamil Nadu, Kerala, AP and Karnataka account for 70% of women SHGs and 80% of the credit flow. The focus of the new initiative will be on Madhya Pradesh, Chhattisgarh, Jharkhand, Bihar, Uttar Pradesh, Rajasthan, Gujarat and Maharashtra.

He said NABARD is creating a Rs1,500 crore fund to cater to the SHGs in weaker districts. It will re-finance banks which lend to women SHGs.

Stressing on the need to bring in flexibility in lending norms of organised banks to SHGs, he said: “They require different kinds of loans, which public sector banks aren’t able to cater to.  As a result the poor are driven to micro-finance institutions, who offer credit flexibly, but charge exorbitant interest.”