In this section 1-Introduction 1-Indian Economy 1-Micro Finance 1-The Programme 1-The Programme 1-Challenges 2-Tsunami R&R services 6- Finance 6-Complete with statutory requirements 6- Conclusion

Introduction-India continues to assert its position as a powerful player in the global company, ranking as the 12th largest economy in the world. These are couple of names from India in the world’s wealthiest persons list. Nevertheless, 25% of India’s 1.1 billion populations have yet to notice positive improvements from economic developments in their own lives. An estimated 300 million currently live below the poverty line, with 200 million surviving on less that US$2 per day. These static’s, coupled with results of a recent survey finding that 46% of Indian children suffer from mal nutrition, suggest that whilst India’s recent Economic gains have succeeded in enriching the social elite and the middle classes, they have failed to benefit at least one third of the country’s population.

Economy- This paradox of Indian economy baffles everyone! No wonder, all politicians, private corporates and Non- Governmental Organisations (NGOs) continue to talk about their social responsibility towards the poor and the community.

As a trickle-down effect of India’s growing development of the middle-class, the alleviation of poverty is expected to take more progress in the next 15 years than it has in the past. Poverty reduction if not eradication is a long-term vision of DPG stipulated to be achieved by the year 2010.

Two closely connected areas of development are expected to make a substancial difference to the struggle against poverty – areas to which DPG is firmly committed: a) the empowerment of economically disadvantaged social groups, particularly women through a series of capacitating processes; b) the availability of access to microfinance to those groups.

Microfinance- A world which didn’t even exist in the “buzzword” amongst NGOs and attention in the last few years. A few decades ago, loans to poor people without financial security had appeared to be impossibility; now, microfinance has developed into an even more important instrument in the struggle against poverty. DPG recognizes the importance of microfinance as an economic-enabling force, for women in particular, who have to struggle against repressive social and economical conditions. However, there is a danger of NGOs using the microfinance as a means of furthering their own growth rather than for pursuing development of the poor people. DPG is cautious about this and hence not only tries to mobilize funds at lower interest rates but also keep some grant funds with our Apex bodies. An apex body is a registered Federation of SHGs consisting of about 100-350 members covering a contiguous geographical area of 15-45 villages. As on march 2007, Apex bodies have Rs.75 lakhs as grant fund with them. The management and ownership of these funds entirely rest with the people. The funds that DPG and partners make available of the community besides the grant fund do not cross the interest limit of 18% on a reducing balance, if not says between 12% to 15%.

The Programme – In 2006-07, DPG took a number of significant steps towards women’s empowerment, helping many families to improve their financial situations and attain a better standard of living. The following pages endeavor to provide an account of DPGs activities in 2006-07. Additional details are available on our website at www.dpgsulo.com where comments and feedback are also welcome.

Challenges- In striving to achieve its vision, DPG faced a variety of challenges throughout 2006-07, the main hurdle being funding followed by retention of staff.

As always, on of DPG’s challenges lies in sourcing the funding necessary to achives its modest goal of reaching more poor families. The donor partners are slowly withdrawing from the South and finding new sources of grant is not easy. The result is curtailment in activities meant for socio economic development of the poor leading to frustration!! As one of our NGO partners said, “Budget constraints limit not only the operational area but also the scope of intervention for sustainable development”. Thoughts among the NGOs.

As India’s economy grows, salary levels grow with it and there is a greater demand amongst job seekers for higher remuneration, not only in the growing IT and private sectors, but also in the not-for-profit sector. As a NGO committed to poverty reduction, DPG is unfortunately unable to match the employment packages offered by private (IT) sector employers and has therefore lost the services of a few experienced staff members in recent years. There us little that can be done to counter this disturbing trend. Nevertheless, last year, our pay increase overall was 12% higher when compared with to many others in the not-for-profit sector.

Tsunami Relief & Rehabilitation Services: During this year DPG’s concentration was more focused towards providing permanent shelters to families. At the end of March2007, DPG has provided 604 permanent shelters to the affected families. DPG also continues its local mobilization and livelihood revival activities.

Case Study of UNITED FAMILY: Athikulam is a village located in Virudhunagar district. Chinnathai was a woman belonging to the Pallar community. She was a mill worker in the nearbu Nachiarpatti village. She fell in love with a boy named Sankar of that village. She fell in love with a boy named Sankar of the village. Both of them walked out from their families and were married om the 26th of Aug.’95. They live a happy life and have two children. But their children. But their children were discriminated by their family members and others in the village because of their inter-caste marriage. At that time, Sankar went to his home to meet his family members. His mother scolded him for his marriage with a low-caste girl because of which they were stigmatized and discriminated by their caste people So she asked Sankar to leave his family and stay with them. In light of this, Sankar changed his mind and started to stay with his parents. Chinnathai waited for Shankar but to no avail. She was told that he would not return and her own family too refused to accept her. So she took a house for Rs.100/- as rentand lived with her children. At that time, MVKS started a SHG named Jaya Narmadha in that village. Chinnathai became a member of that group and regularly saved, attended meetings, etc. She told her story to Jayanthi who was the Organiser of that group. She discussed this problem in the Apex Body went to Sankar’s house and discussed with Sankar’s family regarding Chinnathai life but they did not give a positive reply. So they went to women police station and filed a case on Sankar. Then the women police has a series of discussion on the matter with Sankar. As a result, Sankar accepted to live with Chinnathai and his children. Now Chinnathai is leading a happy life.

HANDING OVER OF PERMANENT SHELTERS:

On the 31st Aug, '06, the house keys of 133 houses at vilunthamavadi were handed over to Mr.M.K.Stalin, Minister for Local Administration in the pesence of Mr. Tenkasi S. Jawahar, IAS, Collector, Nagapattinam, Who inturn gave the keys to the beneficiaries

On 24th oct.’06, the house keys of 72 houses at Keela Tiruchendur were handedover by Mr.ShyamSundar, Emergency Finance officer, Christian Aid to the beneficiaries.

On 7th Mar.,’07, the house keys of 197 houses at Vanavanmahadevi were handed over to Mr.Tenkasi  S. Jawahar, IAS, Collector, Nagapattinam by Mr. R. Bhakther Solomon, Chief Executive Officer, DPG in the presence of Mr.Gerhard Mohr and Mrs. Hanne Lore Mohr, Church Developmetn Services (EED), Germany

The house keys were handed over to the District Collector Mr. Palaniandi IAS, Tuticorin by R. Bhakther Solomon CEO, DPG in the presence of Mr. Sanjay Patra, Executive Director, FMSF, Delhi and Ms. Geetha Jeevan, Minister for Animal Husbandry and she in turn gave the keys to the beneficiaries.

ROSE FASHIONS & DESIGNS:

DPG has entered into an agreement with The United Nations Economical and Social Commission for Asia and the Pacific (UNESCAP), Bangkok to initiate a training-cum –production center for about 40 women in garment manufacturing. This unit is expected to start from April, 2007. However, the agreement for the same was signed on Nov.2006 and from then on, the follow-up actions like feasibility study, identifying the trainees and creating market linkages are being pursued.

DPG in consultation with UNESCAP will identify the workers, the community (general public) , private entrepreneur and the NGO (DPG) as the stakeholders in the proposed private company which will come into existence some time in 2008. During the initial period of training of 4-6 months, DPG will manage the affairs and will partially contribute from its own fund to the training unit. The trainees during this period will probably get a small amount as stipend to meet their monthly travel expenditures. The total contribution from UNESCAL will be US$99700 (Rs.40lakhs)and from DPG Rs.7 lakhs.

This is the first attempt by UNESCAP, Bangkok with a Non-Governmental Organisation (NGO) by name Development Promotion Group (DPG) in Tamil Nadu, India to initiate a scheme with public-private partnership for the Tsunami victims at Nagapattinam. Through there may be some initial teething troubles in identifying the potential companies and also finding marketing outlets for the garment, within 12 to 18 months, it is hoped that this enterprise will get stabilized and the private company will come into operation.

CASE STUDY OF GROUP MOTIVATION Kamudi SHG is made up of 15 members and was established in 2001. Although the group ran well from 2001 to 2003, it wasn’t until the Sujala Watershed Project began to experience significant improvements in the quality of their lives and level of economic well-being and independence. In particular, the group has become increasingly aware of the importance of group-working in a community. As such Kumudi has been involved with various common land activities such as roadside planting, bunding projects and dry land plantations like growing mango trees and cashew nut trees. Through training, they have also been made aware of other income generation activities such as production of bags, incense sticks or cooking powders, in order to reduce economic reliance on agriculture. Through other trainings like conflict resolution and communication, bookkeeping and leadership they need to approach local officials for help and support. For example, after approaching the relevant offices, in the last few years, they have received a grand of Rs. 3,000/- from the local Agricultural Officer and have managed to get windows compensation and pension for many women.

Register office staff:

Compliance with the statutory requirements – DPG fulfilled all the requirements of the Register of Society, Income tax requirements, Home Ministry obligations and also other staff-related obligations as per the Government rules pertaining to the development sector in time. The Annual General Body meeting was held on 3rd August 2006 and the audited statements of accounts were passed. The society renewal fee was paid. The Management Committee had met four times during this year. We submitted the progress reports and statement of accounts to the concerned donor partners. The FC3 statement for the year was submitted to the Home Ministry on 22.06.2007.

Conclusion - I take this opportunity both to express my whole-hearted thanks to those who have provided support to DPG and also to appeal to those readers interested in making a social investment in the future: by making a donation to DPG you could help to provide a struggling family with a new business enterprise or a home or offer a child the change of an education and a better future. We look forward to your participation with DPG to further extend our reach to the most vulnerable sections of society.