AVSAR Scheme

Description

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Context - The Airport Authority of India (AAI) has taken an initiative under the ‘AVSAR’ programme to provide space to SHGs at its airports.

Details

The Airport Authority of India (AAI) has taken the ‘AVSAR’ initiative to allocate space to Self Help Groups (SHGs) at its airports for selling/showcasing the self-made products of their region.
Under this scheme, an Area of 100-200 square feet has been dedicated at each AAI operated airport.
- The space is being allotted to the self-help groups; turn on a turn basis, for duration of 15 days.
SHGs could showcase and market their homemade local products like Packaged Papad, Pickles; Bamboo based Ladies Bag/Bottle/Lamp Sets, local artefacts, traditional crafts, natural dyes, etc.

Self Help Groups (SHGs)

Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other to solve their problems.
SHGs promote small savings among their members. The savings are kept with the bank. This is the common fund in the name of the SHG.
- The SHG gives small loans to its members from its common fund.
In India, the SHG movement began in the 1980s, when several non-government organisations mobilised and organised poor communities in rural areas and offered them formal channels for social and financial support.
This programme gained momentum with the National Bank for Agriculture and Rural Development linking a small number of such groups with banks. Called the Self-Help Group Bank Linkage Programme, this revolutionary initiative connected group members, many of whom had never had a bank account before, to formal financial services in a sustainable and scalable manner.

How People are organised under SHGs?

A reasonably educated and helpful local person has to initially help the poor people to form groups. He or She tells them about the benefits of thrift and the advantages of forming groups. This person is called an ‘animator’ or ‘facilitator’.
Usually, the animator is a person who is already known to the community.
Women animators can play a more effective role in organising women's SHGs. The animator cannot organise the groups all alone. He or she will need guidance, training, reading material, etc. Usually, one of the following agencies helps:
- A voluntary agency or Non-Governmental Organisation (NGO).
- The development department of the State Government.
- The local branch of a bank.

About Self Help Groups (SHGs)

The ideal size of an SHG is 10 to 20 members. (In a bigger group, members cannot actively participate. Also, legally it is required that an informal group should not be of more than 20 people.).
The group normally consists of either only men or of only women. Mixed groups are generally not preferred. Women’s groups are generally found to perform better. (They are better in savings and they usually ensure proper use of loans.)
The group should meet regularly. Ideally, the meetings should be weekly or at least monthly.
Membership register, minutes register etc., are to be kept up to date by the group by making the entries regularly.
Simple and clear books for all transactions to be maintained.

Major Functions of SHGs

Savings and Investment
- All SHG members regularly save a small amount. The amount may be small, but savings have to be a regular and continuous habit with all the members.
- “Savings first — Credit later” should be the motto of every SHG member.
- SHG members take a step towards self-dependence when they start small savings. They learn financial discipline through savings and internal lending.
Internal lending
- The SHG should use the savings amount for giving loans to members.
- The purpose, amount, rate of interest, schedule of repayment etc., are to be decided by the group itself.
- Proper accounts are to be kept by the SHG.
Discussing problems: In every meeting, the SHG should be encouraged to discuss and try to find solutions to the problems faced by the members of the group.
- Individually, the poor people are weak and lack the resources to solve their problems.
- When the group tries to help its members, it becomes easier for them to face the difficulties and come up with solutions.
Taking bank loans: The SHG takes loans from the bank and gives them as loans to its members.

Significance of the SHGs

SHGs play a crucial role in overcoming social evils like alcoholism, drug addiction, gambling, etc.
Women's SHGs make their members independent from social constraints and allow them to make independent decisions. They can even actively participate in the Gram Sabha.
SHGs can actively participate in the aspects of local governance. This would mean the inclusion of weaker and marginalised sections of the society in the local governance.
Increase employment opportunities in rural India: It allows for micro-level entrepreneurship within the rural society and reduces too much dependence on agriculture.
Improves the standard of living, family planning, and healthcare, of the vulnerable sections of society.
The members of the SHGs are encouraged to open savings accounts in banks. This assures improved living conditions, increased spending on education, health, etc.

Concerns

Many SHGs are dependent on the promoter agencies for their survival. In case these agencies withdraw their support, the SHGs are vulnerable to downfall.
The facilitators do not have professional training with regard to organising SHGs.
Most SHGs are not making use of new technological innovations and skills. This is because there is limited awareness with regard to new technologies and they do not have the necessary skills to make use of the same.
SHGs are run by non-professionals. This does not promote the expansion and improvement of the SHGs.
SHGs are mostly not registered. They are run based on the trust between the members. The savings made by the SHG members may not be safe, which brings mistrust between the members.

Way Forward

Self-help groups (SHG) can act as a bridge between women entrepreneurs who have the will to begin an enterprise but do not have the resources to fulfil their dream, and the finances needed for it.
SHGs emerging as important micro-finance systems, SHGs work as platforms that promote solidarity among women, bringing them together on issues of health, nutrition, gender parity and gender justice.
SHGs have already made a significant contribution to developing entrepreneurship aptitudes among rural women by enhancing their skills and giving them a chance to engage in various entrepreneurial activities.
SHGs provide women entrepreneurs with micro-loans to sustain their businesses, while also creating an environment for them to develop greater agency and decision-making skills.
Self-help groups are exceedingly relevant today because their provision of micro-loans helps overcome regional imbalances as well as information asymmetries, thus offering a level playing field in terms of access to resources for women.
Many SHGs are excellent producers, and creators of local arts, crafts, and useful and quality products with demand from the consumers and they need opportunity and space to showcase their products.
- The initiative to strengthen SHGs by allotting space at AAI Airports will deliver huge visibility to these small groups