PCMC toughens rules for sanction of funds to SHGs

After the SHGs duped Pimpri Chinchwad Municipal Corporation (PCMC) to teh tune of Rs30 lakh in the year 2007-08 when funds were sanctioned for women empowerment, PCMC has strengthened the norms for funding self-help groups from this year.

Now PCMC has laid down tough conditions to give subsidy to self-help groups (SHGs) and stated only those SHGs which are effectively functional for the past three years would qualify.

Earlier PCMC had found that there were duplications in the members of SHGs. One person was a member of multiple SHGs. In order to avoid such things, PCMC has decided to take affidavit from the group stating that they are not members of multiple groups.

PCMC has implemented this scheme under women and child welfare scheme. Earlier the civic body was giving Rs20,000, Rs18,000, and Rs15,000 for SHGs as per grades. But now it will give Rs18,000 for all SHGs which are functional for the past three years. Last year 635 SHGs in the city had applied for the municipal subsidy. Out of which only 189 SHGs were found ineligible. There was large scale duplication in SHG memberships. More than one SHGs were formed for getting PCMC subsidy and one woman became member of many SHGs.

The subsidy has been given for empowering women’s groups to solve their problems. The scheme is popular as political parties want more women to benefit from the schemes. The discussion took place in the standing Committee meeting on Tuesday regarding the issue.

In the year 2008, PCMC had floated a scheme offering subsidies worth Rs30 lakh to those SHGs which would set up manufacturing units, thus generating employment for women.

Sena corporator Seema Savale had exposed the self help group scam in January 2012 by obtaining documents under Right to Information Act (RTI). She had alleged that many groups had not started their units even after four years and a few had closed down their units. These groups have not repaid the bank loans and the machineries were purchased at thrice the actual price. The bank had also sanctioned the loan amounts without proper verifications.