• The SHG Movement in Tamil Nadu has achieved tremendous success.However,the coverage among rural women is only 64%. It is imperative to ensure that the benefits reach the poorest and most vulnerable sections of the society.

• Though substantial credit linkage has been achieved in the SHG movement the saving - credit ratio is only around 1:1.5 and nowhere near the norms specified by NABARD (1:4). The credit flow per SHG family on the average has been only Rs.3875/-.

• The SHGs are mostly undertaking small and traditional economic activities. Many SHGs which are functioning as thrift and credit institutions need to be transformed in to viable micro-enterprises.

• Marketing is a big constraint for SHG products.

• The existing schemes have not given special focus on the disabled and other- disadvantaged (widows, destitute, tribal and aged).

    Vazhndhu Kaatuvom Project has been conceived by Government of Tamil Nadu to ensure that the benefits of Government initiatives reach the unreached like the poorest of the poor and to take the SHGs forward to higher level economic activities. The Project builds on the strong foundation laid by Mahalir Thittam and other existing schemes of Government of Tamil Nadu.

• Project preparation started in 2003

• Various preparatory studies undertaken under PHRD (Policy for Human Resource Development) grant

• Pilot projects in 10 villages under JSDF (Japan Social Development Fund) grant

• Two preparatory WB missions in July & Oct.2004

• Appraisal mission in Feb.2005

• Negotiations in Washington D.C. in May 2005

• Project cleared by the WB Board on 12th July 2005

• Project launch in November 2005