Minister hails micro-credit experiments in AP

Hyderabad, July 29 (UNI) The whole world, particularly the venture capital community, is looking with eagerness the micro-credit experiments in Andhra Pradesh and the Centre was committed to replicate the 'AP model' in the country, Union Minister of State for Commerce Jairam Ramesh said today.

Participating in a workshop on 'Financial Inclusion: Challenges and Sustainable Approaches', organised by the Centre for Economic and Social Studies here, he said the Self Helf Groups (SHGs) movement had gone a long way since its launch.

Mr Ramesh observed that the SHGs, began as a government-sponsored programme, had now matured to provide credit linkages. Besides delivering several government services like pensions they involve in the social mobilisation for the National Rural Employment Guarantee Programme, he said.

SHGs also deal in market by procuring agricultural commodities like Maize and Redgram, he said.

With Andhra Pradesh alone accounting for 35 per cent of the SHGs in the country and 40 per cent of bank linkages, the Centre was keen on adopting the 'AP model' in "tougher states of Bihar and Uttar Pradesh" and others, the Minister informed.

The southern states accounted for 80 per cent of the SHGs in the country. The survival of the SHG movement, despite change in governments, showed its resilence, he added.

Pointing out that SHGs were relevant even in the Micro-Finance Institutions and Banks to operate in the financial sector, he underscored the need for their convergence to reach financial assistance for all the underprivileged groups.

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