2.

PROFILE OF UTTARAKHAND STATE

The state of Uttarakhand came into existence on 9th November, 2000. It is one

of the most beautiful, well preserved regions of the country. It is located in the
northern part of India.
The State has 13 districts, 95 blocks and 16826 villages. The state is spread
over an area of 55845 sq. km. the population of the state according to census, 2001 is
sex ratio per 1000 males is 964.

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84,79,562. The decennial growth rate of population during 1991-2001 was 79.20. The

The main occupation is agriculture and allied activities. About 70% population
is engaged in agriculture. The terrain permits terrace cultivation. Natural forces are

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the sole arbiter of crop prospect in Hilly areas of the state. Cultivation is rain fed in
nine-tenth of cultivable land. The agriculture suffers from poor economic prospect.
The fields are very small. Agriculture seasons are also shorter that make cultivation
very difficult and less remunerative under such conditions most of the male members

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move to plains in search of more remunerative job. Hence the increasing number of
women are the stakes in agriculture in hilly districts of the state.
On the other hand in plain districts such as Dehradun, Haridwar, some areas of

Nainital and Udham Singh Nagar, normal cultivation is carried out.

Good yielding lands are in the vicinity of the valleys of rivers flowing in the

state. A major part of land is covered by forests which have pine, sal, oak, surai,
deodar and panger etc. Kharif and rabi are the two harvests in the state. The main
crops are wheat, paddy, small millets, jhangora, maize, mandua, pulses, tomatoes,
barley, peas, linseed, mustard, ginger, pepper and sugarcane etc.
Another important allied occupation is rearing of live-stock for small and
marginal farmers. These farmers also rear cows, buffaloes, sheeps and goats. These
are also a source of income of small farmers. In the villages industries like wool
spinning and weaving are based on sheeps.

38

The large deposits of magnesite, soft stones, lime stone, copper ore and
dolomites etc. are found in the state. Many industries are based on these minerals.
Here many rural and small scale industries have been set up. There are 809 Khadi and
gramodyog units. The number of small scale industries is 32116. The total number of
employees in Khadi units is 4987 and in small scale industries it is 87279. The total
number of registered factories is 752. The number of workers employed in these
factories is 35349.

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The state has provided every facility from primary standard to college
standard. There are 5.88 primary schools for every ten thousand of population in
urban areas. There are about 200 middle schools and 176 Sr. Secondary Schools and
50 Colleges in different districts.

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In case of Medical facilities, every district has one or more hospitals,

dispensary and primary health centers.

There are two Regional Rural Banks- one looks after the Garhwal Region
while the other looks after the financial needs of Kumaon Region. These banks

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function through their branches spread over the rural areas of the state. In addition to
this, there are several commercial banks, co-operative societies and state co-operative
banks also function in rural areas to look after the needs of small farmers, marginal

farmers, landless labourers and rural artisans etc. There are 15 commercial banks
whose 60 percent branches are located in rural areas. There are 125 Regional Rural
Banks, which also look after the financial needs of the poor population of rural areas.
There are also 136 Kheteria Gramin banks in the state. The state Government
introduced the concept of SHG linked with Banks in every Block of the District. The
SGSY was also introduced in urban areas in 1997 and in rural areas in 1999.

39

2.2

PROFILE OF BAGESHWAR DISTRICT

Bageshwar is one mountainous district of the state which lies in Cascading chains of
the Himalayas. It is bounded on the north by Chamoli district, on the north-east and
east by Pithoragarh district and on the south, south-west and west by its parent
district, i.e., Almora. Total area of this district is approximately 2311 sq. kms. and its
headquarters is located at Bageshwar town.
The district of Bageshwar has been carved as a separate district on 15th September,

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1997. The total population of the district according to 2001 Census is 294453 persons,
comprising 118,202 males and 131251 females. Rural Population of the district is
241650 persons (113896 males and 127754 females) and urban population is 7803
persons (4306 males and 3497 females).

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The decennial growth rate of population of the district as a whole in relation to the
state between the period a 1981-1991 and 1991-2001 is 14.92% and 0.9%
respectively.

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The area comprising the present district constitutes mountainous terrain. A ridge of
vast magnitude with heights exceeding 5550 metres above the sea runs almost parallel
to the line of water-parting along the Tibetan frontier and forms a dividing line with
the district adjoining to western border. Elevation casts special effects in conditioning
of climate in a hilly tract as that of the district of Bageshwar.
The district is drained by the river Pinder, Revti Ganga, Kosi and Sarju alongwith
their tributaries. The other important streams are Gomti, Punga, Lolgon.
The district has two tehsils and three Community Development Blocks such as
Bageshwar, Kapkot and Kanda. It has only one town and 798 villages.
Cultivation is primary activity in this district. However, the fields are very small
agriculture seasons are shorter and weather extreme that make cultivation difficult and
unremunerative. Under these conditions, the people prefer migrating to plain in search
of more remunerative job. Therefore, the increasing number of women are having the
stake in agriculture of this district. The main kharif crops are Madua, Paddy, Sawan

40

and maize. The principal Rabi crops are wheat, barley, masoor and mustard. The
cultivations is rain-fed in nine-tenth of cultivable land.
Rearing of livestock is another important occupation particularly for small and
marginal farmers. Main livestock of the district are milch animals which include cows
and buffaloes, apart from sheep and poultry birds. A number of schemes are
underway in the district for the development of poultry and sheep rearing. Veterinary
institutions like Hospitals and Pashu Sewa Kendra are looking after the welfare of

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animals wealth.
Industrially, the district is backward as there is no major or medium scale industrial
unit existing in it. There are, however, many cottage industries that include woolens,
wood-craft, soap-making, etc.

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According to 2001 census, the population of total literates is 249453 persons. Of these
118202 are males and 131251 are females. In the rural areas of the district 241650
persons (113896 males and 127754 females) are literates and in urban areas 7803
persons (4306 males and 3497 females) are literates. The rate of literacy of this

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population, to the total population, excluding 0-6 years age group according to 2001
census is as follows

There are 5 primary schools, two middle school, one higher Sc. School and

one Arts College. During 2001, 71.94 of persons were literate out of which males
were 88.56 and females were 57.45. In Bageshwar only two blocks were selected for
study such as Bageshwar and Kapkot. The total number of SHGs in Bageshwar Block
is 506. The population of S.Cs is 29132 and S.Ts are 266. There are many
nationalized and District Co-operative Banks such as state bank, Punjab National
Bank, Union Bank, Regional Rural Bank, Bank of Baroda etc. The number of Gram
Panchayat is 181. In Kapkot Block the number of SHGs is 313. The population of the
block is 77018. There are 16696 Schedules Castes. SHG is slowly but steadily picking
pace in Uttarakhand. In Bageshwar district of Uttarakhand Kapkot block has recently
declared Best SHG Scheme which went to Smt. Chandra Devi, a carpet-making
Artisan. An incentive of Rs.5,000 is given in the scheme to promote SHGs (BPL
families).

41

2.3

PROFILE OF CHAMPAWAT DISTRICT

Champawat district occupies the north-eastern part of the Kumaon Division. It is

bounded on the north by Almora and Pithoragarh districts and on the east it forms an
international boundary with Nepal, the dividing line being the Kali and the Sharda
rivers. While on the south it is surrounded by Udham Singh Nagar district, on the
west lies Nainital district. The district is named after its headquarters town,
Champawat. Area of the district is 1781 sq. km.

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The district of Champawat has been carved out as a separate district vide State
Government Notification No.2799/1-5/97-327/97-R-5 dated 15th September 1997. In
pursuance of the said notification the areas comprised immediately before the said
date in Champawat tehsil of Pithoragarh district and thirty five villages of Khatima

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tehsil of Udham Singh Nagar district alongwith the area of Tanakpur Nagar Panchayat
were separated from their respective districts to form the present new district.
Total population of the district according to 2001 Census is 224461 persons,
comprising 110916 males and 113545 females. Rural population of the district is

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191,727 persons (93,238 males and 98,489 females) and urban population is 32734
persons (17678 males and 15056 females).
The decennial growth rate of population of the district as a whole in relation to the
state between the period 1981-1991 and 1991-2001 is 34.22 and 17.56 respectively.

The Community Development Blockwise population distribution of this district as per

1991 census, alongwith rural-urban breakup and also those of the Scheduled Castes
and Scheduled Tribes population is presented in the table given below. Since separate
population figures in respect of thirty five villages and the areas of Tanakpur Nagar
Panchayat, which were taken out from the Khatima tehsil of Udham Singh Nagar, are
not available, the total population of Khatima Community Development Block (rural)
alongwith the population of Tanakpur town are shown below which will provide idea
of its population concentration:

42

Community

Total/ Rural/ Total

Development

Urban

SC Population

ST Population

Population

Block

Lohaghat

Khatima

42488

5784

116

39963

5309

95

2525

475

21

40275

7366

23

36284

6810

17

3891

556

148057

19705

40191

134947

18150

40150

13110

1555

41

T
R
U

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Champawat

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The district sprawls over in the rugged terrain of the mystic Himalayas. The
considerable area is rocky and barren and therefore, cultivation is limited to the river
valleys and gently sloping hills. Most of the soil in the district is poor, shallow and
stony. Taking into consideration the differences in the altitudes and the climatic

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conditions the flora of the district can be divided into four divisions (1) the sal forests,
(2) chir forests, (3) oak forests and (4) coniferous forests. In the sal forest, the chief
tree sal is found upto a height of about 1220 mts. The other associated trees in these
forests are haldu, sain, and tun kharik. The mango and pipal trees are also frequently
found in these forests. Chir trees are found upto the altitude of about 1800 mts.
Different varieties of oak are found in different altitude zone between the altitude of
3250 mts. and 4000 mts., the dominant species are the conifers. The main species are
chir, thaner, ragha and surain.

Sarda, Kali and Lohawati are the main rivers of this district. The other rivers
are Ladhiya and Kalauna.
The district is initially formed with one tehsil and three Community
Development Blocks. It has three towns and 688 villages.

43

The urban population of the district as percentage of total population in the

census year 2001 also shows the sex ratio (females per 1000 males) and density
(population per sq. km.) in the urban population of the district in relation to the states.
Villages having one or more amenities in the district are Education Medical,
Drinking Water, Post and Telegraph, Market and Hat, Communications, Approach by
Pucca Road and Power Supply.
Most part of the district, is deprived of railway facility and thus, the

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communication solely depends on roads. A small metre gauge tract runs upto
Tanakpur town and linked this district with Udham Singh Nagar and Pilibhit districts.
National highway does not pass through this district. State highway no.29 passes
through the district, which connects with National Highway No.24 at Bareilly. The

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tehsil headquarters, Community Development Blocks headquarters and all the towns
are connected by roads.

Cultivation in the district is limited to the river valleys and gently sloping hills.
There are few places where soil is fertile but cultivation is rich in those land where

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perennial water supply for irrigation is available. About 67 per cent of the total area of
the district is available for cultivation but less than three per cent of the total
cultivable area is irrigated. Kharif and rabi are the two crops of this district. While
main kharif crops are paddy, jhangora, maize, mandua, pulses and tomatoes, the rabi
crops are wheat, barley, masoor, peas, linseed and mustard. Ginger and pepper are
also grown in the district. Sugarcane is grown in the southern valley. The cultivation
of wheat is carried on the largest area followed by paddy, barley and maize. Irrigation
facilities in the district include canals, channels and hauz (tanks).
Animal husbandry is an important source of income for the rural people. Most
of them spin and weave the wool of their indigenous sheep. The livestock population
include cows, buffaloes, sheep and goats. Horticulture is another field that can boost
up the economy of the district.

44

The district is backward in terms of industrial development. There is one

cement factory at Lohaghat. Wool spinning and weaving are old cottage industries.
Another old time handicraft of this district is basket and matting manufactured out of
ringal.
According to 2001 Census the population of total literates (excluding the
population in the age group of 0-6 years) is 131627 persons. Of these 79928 are males
and 51699 are females. In the rural areas of the district 109194 persons (66822 males

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and 42372 females) are literates and in urban areas 22433 persons (13106 males and
9327 females) are literates. The rate of literacy of this Population to the total
population (excluding 0-6 years age group) according to 2001 census.

Information on educational institutions, stadia and public libraries including

below:
Name

of

the Educational Institutions

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towns

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reading rooms available in the towns of this district is provided in the table given

Champawat

Higher Secondary/ Intermediate School

Stadia

----

Public
Libraries
including
reading
rooms
----

----

PL:1

(1), Secondary/ Matriculation School

(1), Junior Secondary and Middle
School (1), Primary Schools (2)

Lohaghat

Arts, Science ad Commerce College

(1), Higher Secondary/ Intermediate
School (1), Secondary/ Matriculation
School (1), Primary Schools (2)

Tanakpur

Arts, Science and Commerce College

(1), Polytechnics (1), Higher
Secondary/ Intermediate School (1),
Primary Schools (2)

Government Degree College, Lohaghat (1979), Enrolment 431, Teachrs 9.

Government Degree College, Champawat (1996), Enrolment 148.
(Above Named Colleges belong to Kumaon University, Established 1973).

45

The following table gives information on medical institutions (alongwith beds

facility) available in the towns of this district:
Name of the

Medical institutions (including beds facility)

towns

Lohaghat

Tanakpur

Primary Health Centre (1)

--

Hospital (2)

Family Planning Centre (1)

--

Hospital (1)

Dispensary (1)

--

Primary Health Centre (1)

--

Hospital (3)

18

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Champawat

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There are four blocks in Champawat district such as Champawat, Lohagat,

Barrakot and Pati out of these four blocks, champawat and Lohagat were selected for
the study. The total number of SHGs in Champawat block were 205. The population
of block was 87024. The number of villages in the block was 249. The block has

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district co-operative bank, Regional Rural Bank, State Bank of India and Nainital
Banks. The number of Gram Panchayats is 99. The total number of SHG in Lohagat
block is 223. The population of the block is 40735 and the numbers of villages are
154.

2.4

PROFILE OF PITHORAGARH DISTRICT

Pithoragarh is situated in the eastern part of the state and forms the north-

eastern part of the Kumaon division. On its north and east lies international border of

Tibet and Nepal respectively while on its south-west touches the district of Almora. It
is bounded in the south by district Champawat and district Chamoli and Bageshwar in
the west. The total geographical area of the district is 7118 sq. kms.
District Pithoragarh was constituted on February 24, 1960 with 32 Pattis-30
pattis from Tehsil Pithoragarh and two pattis from tehsil Almora.
Total population of the district according to 2001 Census is 662149 persons,
comprising 227592 males and 234557 females. Rural population of the district is

46

406025 persons (197517 males and 208508 females) and urban population is 56124
persons (30075 males and 26049 females).
The decennial growth rate of population of the district as a whole in relation to
the state between the period 1981-1991 and 1991-2001 was 14.11% and 10.92%
respectively.
Lying in the upper Himalayas, Pithoragarh contains within itself varying
geographic environments. Situated at the altitude between 2000 to 20000 feet above

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the sea level, it sprawls in the rugged terrain of the mystic Himalayas. According to
geological formations of the district, it may be divided into four broad belts, viz., (1)
the inner most Siwalik hills ranges (2) the lesser and middle Himalayas (3) the inner
Himalayas and (4) the thin belt bordering the Tibetan Himalayas, roughly tending

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east-south east. The bigger part of the district lies under perpetual snow and a
considerable area is rocky and barren. Cultivation is, therefore, limited to the river
valleys and gently sloping hills.

Taking into consideration the difference in the altitudes and the climatic

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conditions the flora of the district can be divided into four divisions (1) the Sal forests
(2) Chir forests (3) oak forests and (4) coniferous forests. The northern part of the
district where there are mountains, is rocky and covered with perpetual snow. The

forests are, therefore confined in the southern parts of the district. Roughly an area of
330288 hectares is covered with forests, which includes 79338.93 hectares reserve
forest.

The important rivers that flow through the district are Saryu, Ramganga,

Gawri, Kali, Dhauli and Kuti. In addition there are many other streams and small
rivers.
The district, at present comprises of four tehsils and four towns. The urban
population of the district as percentage of total population in the census years 2001 is
indicated below. It also shows the sex ratio (female per 1000 males) and density
(population per sq. km.) in the urban population of the district in relation to the State:

47

State/ District

Urban population

Sex ratio, (Females

Density (Population

as percentage of

per 1000 persons)

per sq. km.)

total population
2001

1991

2001

1991

2001

Uttaranchal

25.59

936

964

133

159

Pithoragarh

12.14

992

1031

59

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Villages having one or more amenities in the district are Education, Medical,
Pucca Road and Power Supply.

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Drinking Water, Post and Telegraph, Market and Hat, Communications, Approach by

District Pithoragarh is not served by railways and communications depend

solely on roads and pathways. The district is served by a total length of 846 kms of

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roads managed under P.W.D. which gives a ratio of 95.53 kms per thousand square
kms. Other roads cover a distance of 280 kms. Out of which 13 kms are managed by
Zila Parishad and 267 kms by D.G.B.R. National Highway does not pass through this
district. State Highway No.29 passes through the district, which connects with

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National Highway No.24 at Bareilly.

The economy of the district pivots around agriculture. Throughout the greater

part of the district there are two harvests, Kharif and Rabi. But due to cooler climate
the crops require a longer period to ripe than the plains.
The chief kharif crops are paddy, jhangora, maize, mandua, pulses and

tomatoes. The rabi crops include wheat, barley, masoor, peas, linseed and mustard.
Ginger and pepper are also grown in the district. Sugarcane is grown in the southern
valleys.
Horticulture is another field that can boost up the economy of the district.
Forestry too place a dominant role in the economy of the district. Resin is extracted
from pine trees and provides employment for 8 months in a year. Pine tar is obtained
from the highly resinous stump wood of rejected or fallen pine trees.
District Pithoragarh is totally hill area. There are many streams and rivers in

the district. But the species of fish that are found in cold region are dwindling. Due to
48

the encouragement by the authorities the interest of the people in fisheries is growing.
Irrigation tanks are also being used for fisheries.
Animal husbandry is an important source of income for the rural people. Most
of them spin and weave the wool of their indigenous sheep. Out of the total livestock
cows account for major portion followed by sheep and goats and buffaloes. Out of the
total cows and buffaloes, milching varieties include crossbreed cows Indians cows
and buffaloes.

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A number of minerals are found in the district. Copper ore is found to occur as
disseminations in crystalline dolomites. Several scattered deposits of magnesite are
found in the area around Pithoragarh. Very little work has been done on these
deposits. Other promising deposits occur at several scattered locations. Several small

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deposits of soapstone occur in association with magnesite. The soapstone found in

this district is of first rate quality of commercial and cosmetic industries. As per stray
surveys arsenic, sulpher, kynite, limestone and graphite deposits occur in the district.
State quarries exist throughout the district and it is utilized locally for building

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purposes.

There has been hardly any industrial development in the district. There are

only four factories registered under Factory Act, 1948 giving employment to 435
persons and produce goods worth Rs.232 lakhs annually. Small industries units
registered under Directorate of industries numbers 141 and employees 592 persons.
Wool spinning and weaving are old cottage industries. Another old time handicraft of
this district is baskets and matting manufactured out of ringal. Furniture is produced
out of pine. 303 cottage industry units employ 998 persons in the district.
According to 2001 Census, the population of total literates (excluding the
population in the age group of 0-6 years) is 299798 persons. Of these, 172696 are
males and 127102 are females. In the rural areas of the district 255338 persons
(147677 males and 107661 females) are literates and in urban areas 44460 persons
(25019 males and 19441 females) are literates. The rate of literacy of this population
to the total population, (excluding 0-6 years ago group) according to 2001, 76.48%
were educated 90.57% male were educated and 63.14% female were educated.

49

A ratio of 8.51 Primary Schools per 10000 of population is obtained in the

urban areas of the district. The maximum ratio of 19.44 schools is observed in
Dharchula town. The lowest ratio of 4.89 is observed in Didihat. There are 2.96 Junior
Secondary/Middle Schools per 10000 of population in urban areas of the district.
Every 10000 of urban population in the district is served by 1.85 schools of
Matriculation Standard. There are 2.96 Inter Colleges per 10000 of urban population
in urban areas of the district.
In Pithoragarh district there are 8 blocks such as Bin, Munakot, Kanalichina,

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Didihat, Berinag, Munsyari, Gangolihat and Dharchula. Out of eight blocks, two
blocks were selected for the study such as Bin and Munakot blocks.

There are 245 SHGs. The population of Bin block is 52216. The number of
villages is 169 and number of Gram Panchyat is 81. There are many banks such as

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Regional Rural Bank, State Bank of India, Nainital Bank etc.

In Munakot Block there are 143 SHGs. The block as district co-operative
bank, State Bank of India and Regional Rural Banks.

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Government Degree College Baluwakot, Dharchula. (Established 1996),

Enrolment 72.

Government Degree College, Berinag (Established 1975), Enrolment 447,

Teachers 18.

Government P.G. College, Pithoragarh (1963), Enrolment 4117, Teachers 62.

Government Degree College, Narayannagar, Didihat (Established 1983),
Enrolment 120 Teachers 6.

(Above named colleges belong to Kumaun University, Established 1973).

The maximum ratio of 9.17 beds per thousand of population is observed in
Pithoragarh town. There is no medical institution with bed facility in Dharchula town.
The urban areas of district is served by 6.74 beds per thousand of population.

50

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CHAPTER III
CONCEPTUAL FRAMEWORK AND
METHODOLOGY

51

3.1

CONCEPTUAL FRAMEWORK
In this study an attempt has been made to study the development of Micro

Enterprises through Self-Help Groups in the state of Uttarakhand. In this study three
district have been selected. Therefore, various concepts have been considered in this
study. Their descriptions have been discussed in the following paragraphs: Small Farmers: According to NABARD guidelines, small farmer is one whose predevelopment net income as per 1979-80 prices is not more than Rs.3,400 per annum.

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In order to identify small and marginal farmers and agricultural labourers for
providing lending facilities under various schemes, the following parameters have
been used:

Wet Land

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Dry Land
(in acres)

Small Farmers

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Marginal Farmers Below

Agricultural Labourer*

(in acres)

Family income (per

annum, Rupees)

2-5

12

3,500

Below

3,500

---

---

3,500

* There 50 per cent of his annual income should form agricultural labour conversion of dry land into
wet land acre of wet land = 2 acres of dry land.

Rural Artisans: The rural artisans are those skilled workers who carry on their
activities in cottage industries in rural areas. These artisans include carpenters,
blacksmiths; potters; leather workers (flayers, tanners, foot wear and other
manufactures) fibre artisans; handloom weavers; dyers and bleachers; etc. These
artisans also include handicraft artisans engaged in wood work, metal work and any
other raw materials.
Retail Traders: The retail traders are those persons engaged in the marketing of
goods of daily necessities and those persons who serve the rural community by
supplying articles and goods of daily use.

52

Weaker Sections: Weaker sections consist of those persons who strikingly fall below
the prescribed standard or are placed at the lowest level of the society. Following
groups may be included under weaker sections: (a) Economically backward and under
privileged people e.g., small and marginal farmers; (b) Scheduled tribes; and (c)
Scheduled Castes.
Further weaker sections in the agricultural sector comprise (a) small and marginal
farmers with land holdings of five acres or less, landless labourers, tenant farmers

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and share croppers; (b) persons engaged in other allied activities for which their
borrowing limit does not exceed Rs.10,000/-

Borrowing: The word borrowing means to receive something with the understanding
that its equivalent will be returned as agreed upon. In terms of money, borrowing

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involves obtaining a certain amount of funds to be repaid.

Credit: Credit is the name usually given to money borrowed for business purpose.
Therefore, it is based upon confidence. When one borrows money, the loan is based

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upon confidence in the further solvency of the person and in his repaying the loan as
per agreement.

Repayment: It is the amount of loan, which is scheduled to be recovered at some

specified time period. The amount of loan, which has already been recovered upto a
point of time, but not a particular point of time, is called recovery. It mean, that the
total amount due upto a point of time only has been recovered and it does not mean
that the entire loan has been recovered.
Overdues: The amount, which was due on a particular date, but has not been repaid
by the date is called overdues. A part of the outstanding becomes overdues, if not
recovered within specified time period.
Direct and Indirect Credit: Agricultural credit, consists mainly of two types, viz.
direct and indirect. In direct financing, credit is provided directly to the farmers for
productive purposes, but in indirect financing, credit is not given directly to the
farmers, but to the institutions engaged in the supply of production inputs and other

53

services to agriculturists. Direct credit includes crop production credit, land

improvement, irrigation, purchase of implements, machinery and equipment,
development of dairy poultry, fishery, sheep rearing, etc. development of plantations
like tea, coffee, rubber, coconut, cashewnut etc.
Indirect credit includes financing for distribution of farm inputs, Primary Agricultural
Societies/ Farmers Service Societies/ Large Agricultural Multi Purpose Societies,
Cooperative Marketing Societies, financing for regional rural banks, financing for

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state electricity board for energisation of pumpsets, for storage facilities, (warehouse
godown and cold storages) for establishment of Regulated Markets, custom service
units and for Agro Industries Corporation, Food Corporation of India, Jute
Corporation etc.

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Short-term Credit: Short-term credits are granted for periods ranging from 6 to 18
months and are primarily meant to meet seasonal requirements such as, seeds,
fertilizers, insecticides, hiring of labour etc. Such credit is expected to be repaid at the
time of harvest. These credits are also known as seasonal credit or production credit

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and the banks call these as crop loans.

Medium-term credit: The period of medium term credit generally ranges from 2 to 5
years and they are for purposes such as, land improvement, purchase of implements
machinery, livestock, etc. They have to be repaid by half yearly or annual
installments. These credits are also known as term credit or investment credit.

Long-term Credit: Long-term credits are generally granted for periods longer than 5
years and extending upto 10 years or in some cases 20 years. Such credit is granted
for making permanent improvements on land like reclamation sinking of wells,
construction of farm house, cattle shed, purchase of land, etc. These loans have to be
repaid by annual installments.

SHG
The concept of Self-Help Groups originates from the Grameen Bank of Bangladesh,
the brainchild of Mohd. Yunus. SHGs were started and formed in 1975 in India. But
their real impact was felt after 1991-92, following the linkage with banks. An SHG is
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a small, economically homogeneous affinity group of the rural poor voluntarily

coming together to save small amounts regularly. Which are deposited in a common
fund to meet the members emergency needs and to provide collateral-free loans
decided by the group.

Entrepreneur
An Entrepreneur is basically an innovator who introduces some-thing new into the

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economy. He is a person who is capable of taking investment decisions, calculated

risks under conditions of uncertainty can plan and innovate, take prompt and wise
decisions in selection of a product or product-mix.

Technology-mix and marketing

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An entrepreneur is a dynamic agent of change, or catalyst who transforms the

physical, natural and human resources into corresponding production possibilities.
He is the key person who envisages new opportunity, new techniques, new lines of

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production, new products and co-ordinates all other activities. Basically an

entrepreneur is a person who is responsible for setting up a business or an enterprise,
and strives to maximise profits by adopting innovations.

Entrepreneurship

Entrepreneurship is the creative and innovative response to the environment,

which can take place in variety of fields of social endeavour-business, industry,

Agriculture, Education Social work and the like and it is the potent limiting factor in
economic development.
It is an act of assuming risk of business ownership. In fact, it is the mental
urge to take risk in the face of uncertainties and an initiation and capacity of seeing
things in a way afterwards proves to be true. And it is an individual set-up of
managing things in a proper manner. It is multidimensional encompassing financial,
managerial and functional aspects.

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Empowerment of Women
Empowerment is a social action process that promotes participation of people,
organisation and communities in gaining control over their lives in their community.
Empowerment of women involves many things, economic opportunity,
property rights, political representation, social equality, personal rights etc. There are
different types of empowerment such as educational empowerment, social

Micro Enterprise

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empowerment, economic empowerment and technological empowerment.

Micro Enterprise refers to a very small enterprise. It is smaller than small

enterprise where the limit of investment is 1 lakh to 2 lakh. The loans to micro

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enterprise have been raised to 5 lakh. Micro Enterprises operated or owned by women
and reducing one-time guarantee fee from 1.5% to 0.75% for all loans in the NorthEast Region.

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Micro Finance

Micro Finance is a financial service of small quantity provided by financial

institutions to the poor. These financial services may include savings, credit,
insurance, leasing, money transfer etc. that is any type of financial service provided to
customers to meet their normal financial needs, unlike normal credit, micro credit is
limited with collateral substitute and credit plans services.

MFIs (Micro Finance Institutions)

The Micro Finance Institutions are those institutions which provide microcredit to poor sections of the society through SHGs. These institutions include SHGs,
Co-operative Banks, Regional Rural Banks and Commercial Banks.

SHGs (Bank Linkage Programme)

The SHGs Bank linkage programme in India is the largest micro finance
programme in the world. NABARD has been playing supportive role by way of

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refinancing banks, organizing training for NGOs, Bank officers and SHG members
for upgrading skills for smooth operation of SHGs Bank Linkage.

Social Mobilization
A major focus of SGSY is the emphasis on the social mobilization. The
programme focuses on organization of the poor at the grass roots level through a
process of social mobilization for poverty eradication. Social Mobilization enables the
poor to build their own Self-Help Groups, which they fully and directly participate

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and take decisions on all issues that will help them in coming above the poverty line.

NREP (National Rural Employment Programme)

It was started as part of the Sixth Plan. It continued under the seventh plan also
on April 1st, 1989 it was merged into Jawahar Rozgar Yojana. NREP was meant to

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help that segment of rural population, which largely depends on wage employment
and has no source of income during the loan agricultural period. Under the NREP
development projects and target group oriented employment generation projects were
closely intertwined. Its financial burdened was to be shared between the central

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Government and the State Governments on 50:50 basis.

RLEGP (Rural Landless Employment Guarantee Programme)

It was started on 15th August, 1983 with the objective of expanding

employment opportunities for the rural landless. The programme aimed at providing
guarantee of employment to at least one member of the landless household for about
100 days in a year. Under the scheme infrastructural development was under-taken.

TRYSEM (The Training of Rural Youth for Self-Employment)

This was initiated in 1979 with the objective of tackling unemployment
problem among the rural youth. It aimed at training about 2 lakh rural youths every
year to enables them to become self-employed. Under this scheme 40 youths were to
be selected from each block and for being eligible for selection, the person should
belong to a rural family having an income less than Rs.3500 per year. The TRYSEM
was merged into Swarana Jayanti Gram Swarozgar Yojna in April, 1999.

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JRY (Jawahar Rozgar Yojna)

In 1999 the government announced a new wage employment scheme for
intensive employment creation in 120 backward districts. In 1999 JRY was
restructured, and was renamed Jawahar Gram Samridhi Yojana (JGSY). The objective
of JGSY was creation of infrastructure and durable assets at the village level so as to
increase opportunities for sustained employment to rural poor.

SGSY (Swaranjayanti Gram Swarozgar Yojana)

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It was started in 1999, after restructuring the IRDP and allied schemes. It is the
only self-employment programme for rural poor. The objective is to bring selfemployed above the poverty line by providing them income generating assets through

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Bank Credit and government subsidy.

PMRY (Prime Ministers Rozgar Yojana)

It was designed to provide self employment to more than a million educated

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unemployed youth by setting up of seven lakh micro enterprises under the eighth plan.

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MSE (Micro and Small Enterprises)

MSMED (Micro, Small and Medium Enterprises Development)
DCBC (District Co-operative Bank)
CCL (Cash Credit Limit)
IGA (Income Generating Activities)

3.2

METHODOLOGY

3.2.1 Area and Scope of Study

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The broad area of study is the state of Uttarakhand, which has 13 districts. The
whole state is divided into two Regions viz. Garhwal and Kumaon. The present study
is limited to Kumaon Region. In this region there are six districts out of which only
three districts such as Bageshwar, Pithoragarh and Champawat were selected. Two

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blocks from each district were chosen by random sampling. The scope of the study
was limited to development of Micro Enterprises through women SHGs in Kumaon
Region of Uttarakhand.

3.2.2 Sample Selection and Tools of DATA Collection

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In order to provide appropriate representation to hill and plain areas, two

districts of Hilly area and one district from plain area was selected. From each district
two block areas were selected and from all the six blocks respondents were selected
on random sampling basis. It was done on the basis of 10 percent of each
development block. The total sample came to 160 respondents from selected six

blocks. In order to collect the correct information, a schedule-cum-questionnaire was

prepared. The personal interview Technique was also used.
The study is based on primary as well as secondary sources of information.
The secondary data has been collected from various sources such as Block
Development Offices, Annual Reports of NABARD, Regional Rural Bank, Reserve
Bank of India etc. various Magazines, Journals, various papers and thesis contributed
by distinguished writers have also been consulted. Various institutions and libraries in
Tamil Nadu, Uttarakhand and Delhi were also visited during the research work.
In this study an attempt has been made to achieve objective and to Test
Hypothesis of the Study.

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