MICROCAPITAL STORY: Indian Finance Minister Chidambaram to Inaugurate Microfinance Self-Help Initiative: Janasree Sustainable Development Mission

The Janasree Sustainable Development Mission, a non-governmental self-help initiative promoting small and micro-enterprises (SMEs) in India, will be officially inaugurated by Indian Finance Minister Palaniappan Chidambaram on February 2, 2008 at the Janasree Microfinance Summit.

The movement was originally launched in the Indian state of Kerala by a group of Congress leaders, headed by former Finance Minister and current Janasree Chairman M. Hassan. According to Hassan, its mission is to promote sustainable development through the provision of micro-credit, the launching of SMEs, and the creation of community insurance schemes. Janasree seeks to organize clusters of microfinance borrowers by cutting across political, social, and economic boundaries to open membership to everyone over the age of 18. More specifically, the initiative aims to enroll one million people in 50,000 units, each comprising of five to ten families, across India. Thus far, 600,000 members have already formed 30,000 units. Gandhian principles will serve as Janasree’s ideological foundation and Muhammad Yunus, 2006 Nobel Peace Prize winner for his micro-credit scheme, as its role model.

According to Hassan, while national banks in India are ready to grant INR 5,000 crore (USD 1.27 billion) in micro-loans, only INR 50 crore (USD 12.7 million) is currently being utilized. The initiative may help mobilize the difference.

By Mary Fu

Additional Resources:

BBC News: “Profile: P. Chidambaram”

Business Standard: “Janasree SHG to organize 50,000 units in Kerala”

The Hindu: “Chidambaram to launch “Janasree Sustainable Development Mission”