India News | Meghalaya Cabinet Nod to Financial Cooperative to Support Self-help Groups
Get latest articles and stories on India at LatestLY. The Meghalaya cabinet on Thursday approved the establishment of the Pla Tangka Cooperative Society (PTCS), which will work to strengthen the financial ecosystem for Self-Help Groups (SHGs) across the state.
Shillong, Jan 30 (PRI) The Meghalaya cabinet on Thursday approved the establishment of the Pla Tangka Cooperative Society (PTCS), which will work to strengthen the financial ecosystem for Self-Help Groups (SHGs) across the state.
Addressing a press conference, Chief Minister Conrad K Sangma said that the financial ecosystem of SHGs in that state has seen a remarkable transformation with the capital available growing from Rs 40 crore in 2018 to over Rs 1,000 crore at present.
"Given that Rs 1,000 crore is already contributing significantly to Meghalaya's GDP, PTCS will be a game-changer for rural economic development," he said.
"One of the biggest advantages of PTCS is that it will ensure easy and direct access to funds, eliminating the need for SHGs to go through the lengthy and complex processes of applying for loans from commercial or cooperative banks," he added.
PTCS will act as a financial intermediary, specifically designed for SHGs, making credit readily available and fostering entrepreneurship at the grassroots level, Sangma said.
Meghalaya has become the fourth state in India to institutionalise this model after Rajasthan, Andhra Pradesh and Telangana, he said.
While 'Pla' is Khasi for bag, 'Tangka' is Garo for money, together meaning "bag full of money", an official explained.
The Pla Tangka Cooperative Society is inspired by the Stree Nidhi Model of Telangana, he said.
"Through such innovative initiatives, we aim not only to empower women to become 'Lakhpati Didis', but also to enable them to scale their income to the level of millionaires through multiple livelihood sources," the CM said
Access to capital has always been limited in Meghalaya owing to the rural dispersion and dispersed nature of banks across different regions, he said, adding that PTCS will act as a catalytic instrument for the next phase of SHG-led economic growth in the state by increasing access to bank linkages.
This initiative is being backed by the Centre for Research in Schemes & Policies (CRISP), which is providing pro bono support to the Meghalaya government.
The organisation signed an agreement with the Meghalaya government in 2022 to assist the state government in designing, redesigning, and implementing better schemes and policies.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)