Pla Tangka Cooperative Society to eliminate need for SHGs to seek loan from banks: CM
Shillong, Jan 30: Meghalaya has become the fourth state to adopt a one-of-its-kind mechanism of forming a women-led financial cooperative society exclusively dedicated to financial empowerment of self-help groups (SHGs).
Pla Tangka Cooperative Society (PTCS), approved by the state cabinet on Friday, will provide credit to SHGs and relieve them from the hassles of applying for loans from commercial or cooperative banks.
The nomenclature is rooted in the local culture — “Pla” (Khasi for bag) “Tangka” (Garo for funds/money) translate into “bag full of money”.
With this, Meghalaya has become the fourth state after Rajasthan, Andhra Pradesh and Telangana to institutionalise this model.
PTCS has been registered under the Meghalaya Cooperative Societies Act, 2015, and is inspired by Stree Nidhi scheme of Telangana.
The decision is a follow-up to the recent Cabinet Retreat at Sohra that had one of the decisions to strengthen women SHG members and ensure they become financially independent.
The PTCS led by the Department of Community & Rural Development (C&RD) in partnership with the Centre for Research in Schemes & Policies (CRISP), has the potential to revolutionise rural financial inclusion and build economic resilience in Meghalaya, according to an official release.
“Since 2018, the financial ecosystem surrounding SHGs in Meghalaya has seen a remarkable transformation. The capital available through the SHG network has grown from ₹40 crore in 2018 to over ₹1,000 crore today. Given that the ₹1,000 crore is already contributing significantly to Meghalaya’s GDP, PTCS will be a game-changer for rural economic development,” chief minister Conrad K Sangma told reporters after the cabinet meeting.
Stating the easy and direct access to funds as to be PTCS’ biggest advantage, he said, “It would eliminate the need for SHGs to go through the lengthy and complex processes of applying for loans from commercial or cooperative banks.
“This model will act as a financial intermediary, specifically designed for SHGs, making credit readily available and fostering entrepreneurship at the grassroots level,” he said.
PTCS will be an apex financial cooperative society that will provide structured financial support to SHGs, ensuring savings-led rural economic growth.
The initiative aligns with Meghalaya’s SHG Unicorn ($1 billion) Vision, which aims to eliminate multidimensional poverty by ensuring that every family in the state earns at least ₹1 lakh additional income per year through multiple livelihood activities.
MSRLS aims to expand the SHG network to 80,000 groups by 2028, unlocking ₹8,000 crore in enhanced capital and contributing $1 billion to Meghalaya’s economy by 2032.
Referring to central government’s “Lakhpati Didi” scheme to financially empower women, the chief minister said, “Through these innovative initiatives, we aim not only to empower women to become ‘Lakhpati Didis’ (women earning a minimum of ₹1 lakh annually) but also to enable them to scale their income to the level of millionaires through multiple livelihood sources—generating revenues of ₹10 lakh and beyond.”
Access to capital has always been limited in Meghalaya owing to the rural dispersion and dispersed nature of banks across different regions.
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 across the State.
The technical assistance for the initiative has been provided by Centre for Research in Schemes & Policies (CRISP) led by R Subrahmanyam, former secretary to government of India, along with 10 other former secretaries to Government of India, bringing decades of policy expertise to Meghalaya’s SHG movement.
CRISP signed an MOU with Meghalaya in December 2022. As an organization which works pro bono for the states, its main aim is to give back to society by helping governments design, redesign, and implement better schemes and policies.
