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Mission Mangalam

Gujarat has witnessed a growth rate of 11.5% for five years ending March 2009. Along with the remarkable economic progress, Gujarat as a state is well aware of the importance of inclusive growth. To harness the multiple growth opportunities arising out of the positive developmental strides made by Government of Gujarat, on the occasion of the Golden Jubilee Year celebration of Gujarat State starting from 1st May 2010; Gujarat Government announced 'Mission Mangalam' - as an integrated poverty alleviation approach in a demand driven convergence mode. ‘Mission Mangalam’ aims to bring the critical mass of resources to address poverty by creating a single platform for stakeholders like Banks, Industry Partners, Micro Finance Institutes and Skill Imparting Institutions, etc. to deliver desired outcomes. While building social business enterprises, the concept of ‘Mission Mangalam’ envisages integration of Self Help groups and their federations into the value chain of investors. Around 24 lakh women who are currently active under 2 lakh SakhiMandals / Self Help Groups (SHGs) are in the state are managing to the tune of Rs.1000 crores through bank linkage. Having made such a remarkable achievement, the Government looks forward to work towards the following parameters:

  • Financial literacy for women, so that they can make informed choices.
  • Universalization of SHGs by ensuring that each BPL household has at least one member in a SHG.
  • Build federations of SHGs, and register them as formal institutions
  • Set up MIS and innovative Monitoring systems

Gujarat’s most precious resource is 'people' and their potential to work towards collective betterment of the state and eventually the nation. Poverty becomes an hindrance for optimum utilization of this resource and its potential. Poverty has numerous manifestations including low and unreliable income, poor health, low levels of education and literacy, insecurity and uncertain access to justice, disempowerment and isolation from mainstream socio-economic development. Mission Mangalam, through its multi-dimensional policies and interventions aims to provide permanent solutions. It strives to provide options of income generating opportunities, ready to access means of production, affordable basic services and protection of law. Thus, 'Mission Mangalam' is a complete package with all these elements incorporated in it.

The five basic guiding principles of Mission Mangalam are:

  • Leveraging upon Industry partnerships and corporate MoUs, 'the firm' goes to the community rather than people migrating to the firm.
  • Improving demand and quality of rural products, thereby creating a market for these in urban segments.
  • Inclusion of modern technology and processes which result in inversing the economies of scale.
  • Linking local initiatives to international markets.
  • Mass empowerment through ownership of assets (means of production) with producers / producer groups.

The guiding principles are based on facts viz:

  • Companies have strong forward linkages but require facilities for large volume production. These companies do not have the capability to produce high volume products such as garments, honey, salt, etc. These backward linkages are provided by the Self Help Groups / Producer Groups.
  • Companies would have substantial cost saving since self help groups receive both Revolving Fund and capital Subsidy for undertaking economic activities.

Strengths of Mission Mangalam:

  • Readily organized manpower network comprising of more than 2 lakh SHGs and 25 lakh members evenly spread across the whole state. These are being federated, trained, imparted financial literacy and linked with micro finance from banks.
  • Huge credit mobilization potential of these SHGs of more than 10,000 crores. These SHGs can avail low interest credit from banks to the tune of about rs.5-10 lakh per SHG for viable income generation activities.

Core Benefits for Corporate under Mission Mangalam:

  • The concept could be incorporated into brands. There is a premium for brands that communicate concepts such as Mission Mangalam.
  • The Cost of Capital for this element of the value chain with available subsidies could be as low as 3%.
  • The debt would be on the books of the small entrepreneurs / SHGs / Producer groups, therefore the corporate headroom for debt would not be reduced.
  • The credit guarantee as required would be provided by the bank or the small entrepreneurs.
  • Facilitation from government of Gujarat for fast track approval and clearances.
  • The small entrepreneurs / SHGs / Producer Groups would be provided marketable skills funded by Government and this could possibly be a strong corporate communication
  • Convergence with government Welfare schemes
  • Many of the SHG members have traditional knowledge and skills in handicrafts, handlooms, food processing, etc which can be leveraged upon by the corporate.
  • The corporate would be able to leverage SHG members’ access to personal and community assets such as land, irrigation sources, conveyance facilities, infrastructure, pasture land, forest produce, etc.

Though Mission Mangalam is a ‘for profit’ venture and not a CSR support activity. However, the benefits of CSR such as up skilling people providing entrepreneurial and employment opportunities could be leveraged by the corporate.