BIHAR DEVELOPMENT TRUST
REDISCOVERING BIHAR
HEAD OFFICE & BRANCH OFFICE: A6, FIRST FLOOR, PROFESSORS COLONY, CHITRAGUPT NAGAR, PATNA-800020
REGD OFFICE: B-403, SAKET VIHAR APARTMENT,KHAZPURA, BAILEY ROAD, PATNA-800014
BRANCH OFFICE: BIHAR DEVELOPMENT TRUST,NEAR BP GAS TRADING AGENCY , ADAMPUR CHOWK, ADAMPUR, BHAGALPUR-1
MEDIA COVERAGE:
AAJTAK STORY ON http://in.youtube.com/watch?v=e4lT8o_HNlw
www.yourstory.in
INDIA TODAY STORY ON PAGE 70, EDITION OCT 27,
Bihar Development Trust is an initiative by enterprising IRMANs. There was a burning desire to do something for Bihar development which was not possible while working outside Bihar. The plan is to create a platform on which professionals can aggregate not necessarily physically and collaborate to work for the development of Bihar. Bihar has huge non resident bihari population which is willing to help its motherland but unable to do so. The main reason we can come up is lack of honest platform and mistrust in government machinery to deliver services to the people. The other reason being law and order problems, lack of entrepreneurial activity, flight of capital and quality manpower, unemployment and high cost of capital. Thus, Bihar is caught in a vicious circle of low productivity, low income and low growth.
After a detailed brainstorming, it was decided to establish an organization for Bihar development aptly named BIHAR DEVELOPMENT TRUST which will work on various issues of development in Bihar so that people can move upward at least economically. The organization was registered as trust on March 26, 2007. We strongly feel that non government organizations can earn profit and use those profits for further social activities.
The organization will act as an honest platform for receiving support from Biharis and people who strongly feel about the development of Bihar. The idea is to implement the successful economic models like GRAMEEN MODEL, AMUL in context of Bihar to bring wealth of common people of Bihar. We plan to demonstrate that professionals can turn entrepreneur in Bihar and catalyze the growth of economic activity with the help of poor people. We dream of providing a success story to professionals as well as common people of India while working on ground with poor people in Bihar.
We are working on hope and faith that after our successful story, lots of professionals will come back to Bihar and implement their own dreams fuelling the growth of Bihar and surpass the glory of history.
We are living for that day………………………………………………………………….
VISION
Every citizen of Bihar lives his/her life with dignity
PURPOSE
To bring prosperity to millions of bihari homes
CORE VALUES
Transparency
Honesty
Faith
Integrity
Its a non government organisation which will operate in a profitable manner so that all of its operations are sustainable in long term.The surplus will be used for non economic development purposes like governance, primary education and health care services.The focus is development of bihar.
THE 20 BILLION DOLLAR DREAM
Bihar Development Trust believes that a 20 billion dollar enterprise is possible with ownership remaining in end users/producers/catalyst of these enterprises by 2020. The idea is to incubate each activity till it attains scale to survive competition and convert the activity into economic entity best suited to take the benefit of the external environment. The ownership will be offered to end users/producers/ catalyst of the enterprise only. The management of the enterprise will be by professionals.
The billion dollar enterprise that will be incubated by the Bihar Development Trust will be in following verticals:
1. Microfinance
2. Art and Crafts like Tasar silk, Madhubani painting, Handicrafts like churi, Lahti etc.
3. Vocational training institutes and Chain of technical institutes in engineering, agriculture, management etc. areas to meet the manpower requirements of above initiatives
4. Agri commodities, fruit and vegetable processing in
a. Cereals like Patna rice/chura/ Maize/sweet corn/ Sattu etc.
b. Vegetable like Mushroom/Makhana/Tomato/ etc.
c. Fruit processing like water melon/Litchi/Mango/Banana etc.
d. Sugar
5. Dairy
6. Carbon Trading
7. Tourism
8. Rural Electricity
9. Infrastructure development
10. Rural BPOs
11. Charitable activities like Flood Relief, safe water and sanitation, mother and child health care etc
What is the expectation from wellwishers of the organisation?
We expect financial support of amount Rs 5000/10000 or more. This amount will be used to give loans to women as well as to create corpus for the organisation. These loan will be given for productive purpose for growing their small businesses.
The bank account information is:
TYPE OF ACCOUNT- SAVING
BRANCH-PATNA
NAME- BIHAR DEVELOPMENT TRUST
Ac no is 142010100201667 ,
AXIS BANK, PATNA BRANCH
SAKET TOWER
S P Verma Road
Patna- 800001
MICR CODE-800211002
IFS CODE- UTIB0000142
Once you have deposited the money, please mail me at bihardev@gmail.com.
You can drop cheque in any AXIS bank branch or transfer electronically with IFS code UTIB000142
OUR CREDO
WE BELIEVE THAT OUR FIRST RESPONSIBILITY IS TO OUR CUSTOMERS/CLIENTS/PRODUCERS WHO USE/PRODUCE OUR SERVICES AND PRODUCTS. WE MUST ALWAYS BE ACCESSIBLE TO EACH CUSTOMERS/CLIENTS/PRODUCERS BY HIGHEST DEGREE POSSIBLE. WE MUST CONSTANTLY STRIVE TO REDUCE THE COST OF PRODUCTS AND SERVICES.OUR ORDERS/REQUESTS MUST BE ACCURATELY AND PROMPTLY ATTENDED TO WITHOUT ANY DELAY. WE AND OUR PARTNERS MUST MAKE A FAIR PROFIT.
OUR SECOND RESPONSIBILITY IS TO THE COMMUNITIES IN WHICH WE LIVE. WE MUST BE A GOOD CITIZEN-SUPPORT GOOD WORK AND CHARITY, AND BEAR OUR FAIR SHARE OF TAXES. WE MUST MAINTAIN IN GOOD ORDER THE PROPERTY WE ARE PREVILAGED TO USE. WE MUST PARTICIPATE IN PROMOTION OF CIVIC IMPROVEMENT, HEALTH, EDUCATION AND GOOD GOVERNMENT, AND ACQUAINT THE COMMUNITY WITH OUR ACTIVITIES.
OUR THIRD RESPONSIBILITY IS TO THOSE WHO WORK WITH US- THE MEN AND WOMEN IN OUR OFFICES AND OUTSIDE. THEY MUST HAVE A SENSE OF SECURITY IN THEIR JOBS. WAGES MUST BE FAIR AND ADEQUATE. MANAGEMENT JUST, HOURS REASONABLE AND WORKING CONDITIONS CLEAN AND ORDERLY. EMPLOYEES SHOULD HAVE AN ORGANISED SYSTEM FOR SUGGESTIONS AND COMPLAINTS. SUPERVISORS AND MANAGERS MUST BE QUALIFIED AND FAIR MINDED. THERE MUST BE OPPURTUNITY FOR ADVANCEMENT – FOR THOSE QUALIFIED AND EACH PERSON MUST BE CONSIDERED AN INDIVIDUAL STANDING ON HIS OWN DIGNITY AND MERIT.
OUR FOURTH RESPONSIBILITY IS TO OUR MANAGEMENT. OUR EXECUTIVES MUST BE PERSONS OF TALENT, EDUCATION, EXPERIENCE AND ABILITY. THEY MUST BE PERSONS OF COMMON SENSE AND FULL UNDERSTANDING.
OUR FIFTH AND LAST RESPONSIBILITY IS TO OUR DONORS AND LENDERS. PRODUCTIVE ECONOMIC ACTIVITIES MUST MAKE A SOUND PROFIT. RESERVES MUST BE CREATED, RESEARCH MUST BE CARRIED ON, ADVENTUROUS PROGRAMMES DEVELOPED, AND MISTAKES PAID FOR. ADVERSE TIMES MUST BE PROVIDED FOR, ADEQUATE TAXES PAID, NEW MACHINES PURCHASED, NEW OFFICES OPENED, NEW PRODUCTS LAUNCHED AND NEW SALES PLAN DEVELOPED.WE MUST EXPERIMENT WITH NEW IDEAS. WHEN THESE THINGS BEEN DONE, THE STAKEHOLDERS SHOULD RECEIVE A FAIR RETURN.WE ARE DETERMINED WITH THE HELP OF GOD’S GRACE, TO FULFILL THESE OBLIGATIONS TO THE BEST OF OUR ABILITY.
SUPPORT BIHAR DEVELOPMENT TRUST
Dear Friends,
Greetings!!!
We are happy to share the growth of Bihar Development Trust with you. Without your support and good wishes, we may not have survived two years. Over the last two years, we have lots of problems and tribulations but some how we keep surviving. Generally, it is said that first 1000 days for a organisation is crucial for its long term survival. We have crossed 700 days of our existence and hope to cross the 1000 days milestone with glory.
Over the last two years, we have not done any charismatic changes on the ground. We have given loans to 750 women borrowers who do not have access to credit from formal system. These women are returning loans which is commendable and needs to be celebrated in Bihar. We are trying to help 30 weavers to earn their livelihood through market orders. To help them in retaining their traditional weaving and giving them enough work so that they need not to migrate. We have much more to do for them. We are planning financial inclusion for our silk weavers. We have been forming producer company in which weavers have been made shareholder. We have worked in september providing food and clothes to flood affected people in Kharik Block. Recently, Bihar Chief Minister visited the same Kazikoraiyya village where we have distributed food and clothes and promised solution for these flood affected villages.
Our achivement is not that we may have provided some services to women , silk weavers or flood relief. If we have not been there, some other agency would have been doing that and many more are doing. We have been able to demonstrate to some extent that middle class educated youth can turn entrepreneur in Bihar by virtue of its professional education. There will be difficulties but if you dont have the guts to face the problems, you should not turn entrepreneur.
Our biggest battle is to get Loans in Bihar. Banks officials have simple abandoned to lend to entrepreneurs in Bihar. They simply say that we dont give loans in Bihar. If you dont give loans, then why are you having branches in Bihar. Just to suck out money from Bihar and give it to some project in Gujarat or Maharashtra or other states. Entrepreneurs in Bihar are as much creditworthy as outside. We are presenting ourselves as a serious credit worthy organisation. Only thing is that we do not have much collateral to offer. Our Networth will be 15 lakhs but we need crores of loan. We have fixed assets worth Rs.15 lakhs. Our debt equity ratio is 2.15:1. Our balance sheet size will be 80 lakhs for FY 2008-2009. This battle is still being fought upon.
Bihar is looking like a positive investment destination. People are enquiring a lot about starting an enterprise to us on daily basis. People are deriving hope from us. Bihar Development Trust is a good investment opportunity for people who have social inclination and not looking for astronomical return. Stock market has crashed and returns expectation is lower now. We are seeking corpus donation from people who wish to give back some thing to Bihar. We are seeking loans from people who own some companies and can give inter organisation loans. We are seeking monetary donation from people who wish to contribute for Bihar Development through us.
We would like to clarify that our plans for this year may include Bhagalpur, Patna, Munger, Banka, Jamui etc. We plan to expand to all district in Bihar in a gradual manner while doing significant work in each district. Our area of activities will include Microfinance, Tusser Silk weavers livelihood and their financial inclusion, Micro insurance of LIC, dairy, agarbatti stick manufacturing, health camps etc.
Our dream is to create 20 billion dollar enterprise in Bihar.
Kindly visit www.bihardev.pbwiki.com for all kind of information about Bihar Development Trust.
Regards
Ravi Chandra
--
Dr Ravi Chandra
Managing Trustee
Bihar Development Trust
Ph-9470017752
bihardev@gmail.com
www.bihardev.org.in
www.bihardev.pbwiki.com
http://www.orkut.com/Community.aspx?cmm=34946028
http://picasaweb.google.com/rchandra1231/
http://groups.yahoo.com/group/bihardevelopmenttrust
Bihar Development Trust is an idea to adapt GRAMEEN and AMUL model to Bihar context and in different services and commodities supported by most efficient technologies.We have dreamt of building a US$20 billion enterprise in Bihar by 2020. The areas of opportunities are very common ideas like microfinance, handloom and handicrafts, fruits and vegetable, Agricultural commodities, health care and education, power and BPO(animation,graphics etc),carbon trading and tourism etc. We believe in executing things in Bihar which many big companies finds unable to do it.
Bihar Development Trust wishes you a Happy New Year 2009
Dear Friends,
Greetings!!!
Looking back at 2008 on 1st january 2009, we are amazed by the fact that we survived 2008. We started 2008 like a new born opening its eyes and looking at everything with surprise and amazed. 2008 was a year we learnt to take steps as a toddler. We fell many times and made mistakes but we stood up after each fall and corrected our mistakes.
The drying up of credit during july was greatest crisis we faced. After that, I fell ill and suffered high fever for two months. Somehow, Me and BDT both survived the month of august, september and october of 2008.
The greatest achievement was that we always paid the repayment to FWWB, TMN, BASIX, RGVNÂ on time. Our credit discipline has been impeccable towards the lenders.
The illness made us realise the importance of promoter health for the organisation health. I came to know that no legal agreements are valid if signed during illness. I was negligent about street food, water during travels and even slept on station some times. But, these are useless cost cutting methods and may seem romantic to someone who have not suffered this. I realised that you need to spend decently while travel, food and lodging and take precautions as now on promoters life, many more lives are dependent.
It was a year of self realisation of formal clothings in finance sectors. Many among you may have met me in cargo, t shirts and shabby beard and talking about business. But, not any more. I am dressing strictly formal as I realised that you should not only do serious good work but also look dressed well. I realised that I look good in formal clothings.
2008 was a year of real personal crisis and overcoming it. I was financially bankrupt due to illness and BDT also hardly has any surplus cash. I was looking for part time consultancy assignments and jobs. Somehow, I needed to go on. In this time, I will acknowledge the thanks of IRMA community who gave me personal money and consultancy assignments which i was unable to complete. My special apology to Mr. Anand of ITC whose assignment remain incomplete till date.
2008 moderated our expectation of growth and made us real. The roads are filled with potholes and speed brakers and if you try to run fast, you are bound to fail. Earlier, our growth plans were unrealistic. Now, we know that if we keep moving on the road slow and steady, we will achieve our goals.
It was surprising to see that as soon as I got well, new loan agreements were signed and good news started pouring regarding new orders for and linkages. Somehow, my believe in bhagwan was strengthened. And in ALCHEMIST line also that says if you believe in some thing from the bottom of your heart, the whole universe conspires to help you to achieve that thing.
Our belief in Bihar and Its rise is firmed up. We now believe that we may be instrumental to bring about prosperity in Bihar just the way Dr. Kurien did it for Gujarat some 50 year back. We just have to give our 2-3 decades and persist on this path. Already, Many of our friends in various multinationals have started thinking to quit and begin some thing in Bihar. We are supporting them to take their decisions to quit and come back to Bihar. Bihar is an oppurtunity waiting to be unleashed on whole world. Bihar is waking up to its potential and it will change the destiny of world positively.
This year 2009 begins with a great responsibility. Bihar Development Trust has to establish itself as the biggest non profit organisation in bihar in field of microfinance and livelihood. We are beginning the dairy initiative also. We plan to penetrate deep into Bhagalpur and Patna district. We plan to take up consultancy assignments as an organisation in relevant issues of Bihar. We are firming up our bench strength for this so that no future assignment remain incomplete.
Bihar development trust acknowledge the help of IRMA community and online bihari groups and expresses their sincere thanks and gratitude to them.
Together, We will make Bihar a developed state by 2020.
We wish you all a very happy new year and may all of you have a great career and life ahead.
Regards
Ravi Chandra
Dr Ravi Chandra
Managing Trustee
Bihar Development Trust
9470017752
bihardev@gmail. com
www.bihardev.org.in
http://www.orkut. com/Community. aspx?cmm= 34946028
http://bihardev. pbwiki.com
http://www.linkedin .com/in/rchandra 1231
http://picasaweb. google.com/ rchandra1231
AN APPEAL FOR INDIVIDUAL FINANCIAL SUPPORT TO BIHAR DEVELOPMENT TRUST
GIVE MONEY & PARTCIPATE IN MAKING A NEW FUTURE OF BIHAR
Dear Well wishers,
Greetings!!!
As you know that Bihar Development Trust has been promoted by IRMA graduates to bring economic prosperity for people of Bihar. Till now, we have disbursed Rs.14,57,000 to 241 women borrowers. It has been 15 months now since registration & 9 month since starting our microfinance operation.
As a microfinance institution, we need continuous funds to disburse money to our women borrowers. Institutional funding agency are slow to meet our demands for two reasons
1. Promoters do not work experience in microfinance sector.
2. System & processes have not yet stablised.
We feel that we have better system & processes that many bigger MFIs and continuously evolving to match the best and then better the best. It will happen with time.We have mobilised Rs.23,00,000 till now from institutional agencies like FWWB,RGVN,BASIX,TMN.
Our business plan has been vetted by industry experts and found to be good enough for final10 business plan in Srijan 2008. http://www.srijan2008.com/srijan.html#round1results2
UNITUS, BELL WETHER, LOK CAPITAL are talking to us and we are hopeful to convert them to buy our potential and invest equity in us. Our proposals are in advance stage in SIDBI/INDIAN BANK etc.
We have found out that passion & good intention alone does not mean that you will get funds. The reality bites but we are determined to bring fund to Bihar Development Trust. Its our initial days and we are experiencing which a typical entrepreneurs goes through. Resistance is usually the first step, then criticism, then acceptance and finally admiration. We are slow and steady in our growth. We are getting funds but not with the pace that would help us to grow to our potential. We are convinced of oppurtunities in Bihar and It is going to be next gold mine for entrepreneurs. People need to donate to entrepreneurs on ground to meet initial expenses then only things can move. Bihar needs huge investment. If people who have reached higher than middle management hesitate to donate professionals like us , then who they will donate. We are ready for highest level of scrutiny for recieving donation.
Looking at the current situation, I have felt that I need to mobilise individuals for supporting Bihar Development Trust financially. For that, I need to meet people individually who would like to support for the vision of making economically prosperous Bihar. Many of big funding agncies are supported by individuals donors. We also like to cultivate a huge donor base who can contribute to us in a regular manner.
I am looking for a individual donation of Rs.5000/10000 from intrested people who will get tax rebate also.
We have succeeded in a small manner with a donor base of 45 & wellwisher base of 100 persons who correspond with me on regular basis.
I am in Ahmedabad from 26-30 June.I am in Mumbai from 1st july to 7th july.
I would request peopel of Bihar, professionals who wish to see Bihar as a developed state to meet me, guide me, share their life experience. For this, I would need your time and share my vision. Kindly give me appointment for half an hour so that I can meet you.
Kindly help because you may be contributing to a very big successful model which you can be proud of and can say proudly to your children/grandchildren that I helped in building such a grand success story.
Regards
Ravi Chandra
A OPEN LETTER TO READERS- BIHAR DEVELOPMENT TRUST- A DREAM
Dear Friends,
Greetings from Bihar Development Trust!
We have completed nine months of existence as organisation. It has received tremendous support from all of you since our inception as BIHAR DEVELOPMENT TRUST on March 26, 2007.
It has been a very interesting journey full of challenges like walking on glass edge. Our agenda is to build a most transparent organisation in the world where nothing is hidden. In doing this, I need constant criticisms, suggestions for improving our transparency level. Governance is very important aspect of it. We would like few of you who can and have inclination to take active role in BDT act as a catalyst of growth of BDT. It will mean visiting our operations, suggestions for improvement, raising finances and spreading the words of our work to the outer world to more people in your network in individual capacity. We want to build a world class institution which people should look up to. I am dreaming big but only after dreaming, you can wake up and execute your dreams. As Sony Akio Morita said 'flawless execution is the key". In our quest to build a world best organisation which improves the quality of life (health, education, financial condition) of millions of people who dream of living life with dignity and respect, we need support from all of you. We need support as idea level and execution level. We are on right track and need to go on till we achieve our goal.
We do have abstract goal of achieving dignity and respect. But to put on paper, We have dreamt of building a US$20 billion (may be euro as $ is going down) enterprise in Bihar by 2020. The areas of opportunities are very common ideas like microfinance, handloom and handicrafts, fruits and vegetable, Agricultural commodities, health care and education, power and rural BPO and tourism etc as we have no innovative ideas. We believe in executing those things in Bihar which many big companies finds unable to do it.
Management people who have read the JIM COLLINS 'BUILT TO LAST'' may classify it as BHAG ( big hairy audacious goal ). Yes, we are dreaming big. The 20 billion dollar/euro wealth will be created in partnership of 5 million people being associated with us. We hope to add 5 million people with us by year 2020 as producers/users of our service at Bihar. For that we may have to float different forms or organizations like producer companies, cooperatives, trust, societies, private ltd companies, NBFC, Banks or many more economic and legal entities which are best suitable to take the advantage of globalization as well as localization and most cost efficient.
The idea is to adapt GRAMEEN and AMUL model to Bihar context and in different services and commodities supported by most efficient technologies.
So to reach the 20 billion dollar/euro goal by 2020 in Bihar, I need support of all of you. For some of you, it may seem figment of imagination by a young people and young organisation which have not yet crossed one year of survival. To be frank, we don't know how we achieve this 'LAKSHYA' or goal but we will achieve it. There are many skeptical of achieving this goal, given the crime ridden scenario that the people not living in Bihar feel more. Crime has been there and will always be there as it is in Mumbai, Delhi or NewYork. But, it has not stopped the people making billions in those cities. So, I feel few of the next new generation billionaire will come from Bihar along with other states.
Many people feel that talking so audaciously and big, we may invite the fate of Sanjay Ghosh or Manjunath or Sateyendra Dubey . How to avoid that fate is a challenge that we may face when we grow big. This question has no answers but we feel that we are not fighting against anyone. The solution may be creating a win-win scenario in which every stakeholder's benefits. We will work it out when the situation will arrive.
What is our self interest in doing this? Obviously, we will also be making our billions. Only different thing is that it will benefit more than 5 million people or may be more and they will have more money in their pockets if we surpass our dreams.
Over last one year during my extensive travels, many people have wished me luck as well as not advised to get trapped in Bihar.
But the feeling or adrenalin rush that you feel while talking to the community, explaining our loan products or training our staff members or explaining people why you should join us beats everything that may give pleasure or anything else that money can buy. And master card is for those things. These are one of the things that MasterCard will not buy. I need people with MasterCard to support us and join us in the field to derive that pleasure.
So, why the mails was written to all of you? We have a work to do that is very important for the India and the whole world. I send 3000 mails per week and It will go on increasing as I met new people and gather new mail ids.
The mail has been written to all of you to help me in making Bihar Development Trust as a world class organisation. For which, I need people who shares the similar ownership feelings towards Bihar Development Trust and believe in the dreams as articulated by it. I would like their help in improving governance, transparency and accountability to all stakeholders. The good practice of running an organisation so that it outlasts the longest running organisation of this millennium needs to be instituted right now. We are raw and we have still not learned the art of hiding as we have nothing to hide right now. But, we feel that we need to be alert and vigilant right now so that we are not quagmire by the corruption that prevails in every big organisation. We want to account for every amount we get and pay and make billions in a transparent manner. So that, you all can say that we achieved 20 billion dollar dream and you know how we achieved it.
Can anyone among the thousands who have read till this end will come forward to achieve that?
Regards
Ravi Chandra
CASE STUDY
A basket full of eggs
Bhagalpur situated 400 kms west of Kolkata and 225 kms east of Patna, the capital of Bihar state is infamous for its classic criminal cases in the past. However Subhash, aged 45 and a labourer turned egg seller resides just 10 kms away from the district headquarters has a different story to tell- a story of hope and making a beginning. Subhash has big dreams in his eyes as he sits in his small thatched hut in Belgachhi village of Gaura Chakki Panchayat in Nathnagar block of Bhagalpur district. He has a wife, Sulena devi and two sons, the elder is a drop out of class 8th and younger one is studying in class 9th at present.
Subhash is a economically and socially poor person and never enjoyed any oppurtunities to increase its income. His business has always been sub-optimal and he has never witnessed a social system that could help him tap the potential of his business. He used to do business by parking his thela (Hand Cart for vending) in a nearby haat(rural marketplace) and he used to serve omelettes out of meagre resources of eggs, a kerosene oil stove and few utensils for cooking. His servings included omelettes, boiled eggs which are sought after products in the bone chilling north Indian winters. All this earned him a meagre INR 50 per day and he has a family of four to support with all his income. To his distress the drunkards in the haat were habituated of enjoying omelettes with wine and usually bought on credit. Though the money wsa paid but it was never sure when they payment would happen. This often plunged him into a crisis of working capital to buy stocks for his business and as the money was on credit with drunkards he could not even ask for payments in situations of dire need. At times the financial crisis was acute and severe. He was under vicious cycle of
less income --> less investment---> less stock---> less income.................................................. debt trap
The recurring financial crisis had many a times diverted his thoughts to the extreme option of migrating to cities like Surat, Delhi, and Mumbai etc. while living in this constant treacherous poverty. A few days ago he met Ramvilash, a Bihar Development Trust’s field staff, who all of sudden started saying that he would give Subhash Rs.5000/-(five thousand only) loan without taking any collateral or mortgage. Subhash did not pay much attention to him as it was unbelievable for him. He thought it was too good to be true!
Ramvilash went to his village and called a meeting of the villagers and informed and explained about the ‘Samvridhi Scheme’ (samvridhi means prosperity) of Bihar Development Trust (B.D.T.). Somehow with much difficulty and persuasion a group of five women was formed and Sulena Devi (wife of Subhash) is a member of the group. After one month of saving the group unanimously decided to make Sulena the first loanee of the group.
The loan amount was used by Subhash for his business and he started purchasing eggs for the whole week at once instead of daily. Earlier Subhash tells “I had to buy eggs daily from Bhagalpur and I could reach the market for business only by thee in the noon and the customers retuned by five leaving me only two hours of business time. With the stock for the full week I can start business at noon and continue for full five hours. This has helped me enhance my turnover significantly.”
A point in case is the fact that INR 5000 which changed the life of Subhash by changing his business cycle is the same amount that so many of us pay to travel between Bhagalpur and Mumbai in an A.C. coach in the railways. The same amount has transformed the livelihood of Subhash and can go a long way in sustaining a livelihood system of this type.
The microfinance initiative has resulted in an increment in this egg seller’s profit of more than 100%. Bulk buying results in a saving of INR 5 (five only) per carton and for a requirement of five cartons per day it results in a total saving of INR 25 per day. He also saves on daily transportation INR 10 (fair to and fro Bhagalpur from his village. More than money saved the time saved and available to him now has given him courage to take up neighbour’s land on crop sharing basis. This has added an avenue to earn money. He has planted Potato in the field to add to his family income. His wife tells, “More than adding to our income, B.D.T. has brought self respect for my family, we used to take money @10% per month from moneylenders of the village and that too after lots of persuasion. The money was given after deducting the first month’s instalment and on failing to pay interest on time the abusive language brought our morale down before our children.
As we discuss this and the role of B.D.T., Subhash asks B.D.T. workers ‘if I repay your five thousand on time, will my wife be given ten thousand rupee to run a permanent shop in the Haat?
BIHAR DEVELOPMENT TRUST.ppt
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