Its political position is centre-left in contrast to BJP which is the right-wing nationalist party. Hume, established the Indian National Congress to obtain greater share of Indians in the British government.
Tap here to turn on desktop notifications to get the news sent straight to you. By Elisabeth Rhyne When a story on microfinance appears in major media outlets, the effect on the public image of the sector can be dramatic.
These cases underscore rising debt stress among possibly tens of thousands of clients, brought on by explosive growth of microfinance organizations in southern India. In the quest to meet their growth targets, loan officers often sell loans to clients already indebted to other organizations.
The reports offered an opening for the state government, which runs a rival self-help group SHG program, to pass a restrictive ordinance severely curtailing the MFIs. The blame for this unfortunate situation falls most squarely on the MFIs that failed to restrain aggressive growth even as the market became increasingly saturated.
Investors must also swallow a big spoonful of blame. Becausethey paid dearly for shares in the MFIs, they need fast growth to make their investments pay off. Perhaps the most important target is the public sector policy environment that has treated microfinance institutions as orphan children of the financial sector rather than helping them to build solid foundations.
In fact, the environment in which MFIs have grown up could almost have been expressly designed to promote over-lending. The story starts from the nationalization of banking that was part of Indian socialism until the reforms at the end of the s.
The legacy of that era remains as a preferential relationship between the Indian banking authorities and their big, sluggish children: Banking policy tends to be crafted with the public sector banks in mind, creating a strange mix of incentives for other types of providers.
Most importantly, although large MFIs were allowed to convert from non-profits to commercial institutions, they were not licensed to take deposits, in part because they would have become competitors to the public sector banks.
Deposit-taking, properly supervised, would have allowed the MFIs to raise funds locally, both from clients and others in their neighborhoods. It would have created a balanced portfolio of products and revenue sources, rather than exclusive reliance on the micro-loan mono-product.
When clients have a place to save and banks have an interest in promoting savings they may be less likely to fall into debt traps. Next, Indian policies have led to poor governance frameworks for MFIs.
In many countries, leading microfinance organizations like Mibanco and Bancosol Bolivia were commercialized with a mix of owners including the original non-governmental organization NGOinternational social investors including development banksand some local shareholders. The NGOs kept the focus on the mission, while the international social investors contributed a commercial orientation, also tempered by social mission.
In Indian microfinance, NGOs are prohibited from becoming shareholders. Instead, authorities accepted a romantic notion that client ownership would create grassroots accountability, but this actually created a governance void.
At the same time, foreign investment rules have made it hard for international social investors to participate in ownership and governance. Add to this the government support for the self-help group movement, which has been a very important success story, but which has received preferential treatment.
The sole direct support from the Indian government to the MFIs, the priority sector lending targets, actually contributed to the excessive growth.
It prompted the public and private sector banks to make large loans to MFIs with relatively little scrutiny, allowing MFIs to grow quickly without enough ballast in the form of institutional capacity building or a solid capital base.
Many leaders within both the Reserve Bank of India and the Ministry of Finance have sought to create a better policy environment. The crisis of the moment has, correctly, focused attention on modifying specific lending behaviors: If they welcome the contribution MFIs can make to reaching the poor with financial services, they could begin to craft a set of ground rules that promote balanced product offerings, solid institutional development and good governance.The Politics of Andhra Pradesh take place in the context of a bicameral parliamentary system within the Constitutional framework of India.
The Congress returned to power when Marri Chenna Reddy was sworn in for his second term as chief minister on 3 December The Congress lasted in power until the elections of Rajya Sabha TV discussions, the Big Picture videos and summaries.
Power crisis takes a toll on Andhra Pradesh industries Hyderabad, August 23, , DHNS: If problem continues, several factories will have to close down The power crisis in Andhra Pradesh has taken its toll on the industries, with the AP Transmission Corporation directing its officials to switch off power supply to industrial feeders of 11 [ ].
Power crisis takes a toll on Andhra Pradesh industries Hyderabad, August 23, , DHNS: If problem continues, several factories will have to close down The power crisis in Andhra Pradesh has taken its toll on the industries, with the AP Transmission Corporation directing its officials to switch off power supply to industrial feeders of 11 KV and .
Centre for Microfinance and MicroSave [ANDHRA PRADESH MFI CRISIS AND ITS IMPACT ON CLIENTS] June & Ghiyazuddin M.A, MicroSave Shruti Gupta, CMF- . Andhra Pradesh (/ ˌ ɑː n d r ə p r ə ˈ d ɛ Power plants.
The state is a pioneer nationwide in solar power generation. APGENCO is the power generating company owned by the state.
The state has become power surplus with excess power generation being exported to other states. Rayalaseema Thermal Power Station.