Seed capital money released to SHGs under NSRLM, NULM

Release of Seed Capital Money to SHGs of NSRLM and NULM under the CSS-PMFME Scheme for FY 2025–26 was held on March 11 at the Conference Hall of the Directorate of Industries & Commerce.
Special guest and advisor for industries & commerce, Hekani Jakhalu, handed over the seed capital funds to Self Help Groups (SHGs) under the Nagaland State Rural Livelihoods Mission (NSRLM) and the National Urban Livelihoods Mission (NULM), implemented through the Department of Rural Development.
In her speech, Jakhalu stated that the purpose of the government’s existence is to serve its people, and therefore the programme was an exciting and meaningful occasion for everyone present.
She said that the programme marked the second phase of the State Capital Fund distribution for 2023–24, as part of the funds had already been disbursed earlier, and the current programme continued the second phase of releasing State Capital to SHGs.
She placed on record her appreciation for the work carried out by both NSRLM and NULM in empowering self-help groups at the grassroots level. Jakhalu said she firmly believes that real change must begin at the grassroots and expressed optimism after witnessing thousands of women across the state learning through SHGs to earn a livelihood and also how to establish small businesses and gradually expand them.
She also thanked both missions for their continuous efforts in working with women across the state.
Jakhalu further stated that she wanted to spread the message that unlike earlier times when many benefits were given free, today there is no free money, no more freebies, and no more subsidies. However, she emphasised that there are ample opportunities available for those who genuinely work hard, as already demonstrated by SHGs across the state.
She noted that discussions in the Assembly had particularly focused on enterprises, especially the MSME sector and nano enterprises. She explained that many MSMEs in the state have an annual turnover of less than Rs. 25 lakh but still contribute significantly to the state’s economic growth. Unfortunately, these nano entrepreneurs are often ignored and underserved because financial institutions consider them a high-risk category and are reluctant to support them.
Jakhalu said the matter had been noted by Chief Minister Neiphiu Rio and that a few announcements to support nano entrepreneurs would soon be made.
Announcing the current disbursement, she stated that the department was sanctioning a total amount of Rs. 8,46,07,728, which would benefit 2,385 people. Of this, 2,086 beneficiaries under NSRLM, including SHGs and some individuals, would receive Rs. 7,28,87,728. Under NULM, 299 beneficiaries would receive Rs. 1,17,20,000. She added that in the previous financial year (2023–24), the government had sanctioned Rs. 6,90,30,946.
She acknowledged that some people might consider the amount small, but both NSRLM and NULM have demonstrated that the funds have brought meaningful benefits. She explained that the programme works effectively because the money is not given as a free grant but as a loan component.
However, she pointed out an important feature of the scheme: when the loan is repaid, the money does not return to the government or the banks but remains with the federating units formed by the SHGs themselves. Therefore, even after repayment, the funds continue to circulate within the SHG network and benefit the community.
She described the system as a well-designed programme that ensures government funds continue to serve the people while discouraging the mindset that government money is free and therefore not valued.
Jakhalu also thanked the ministry of food processing industries, noting that the initiative is a convergence programme. She explained that while her department receives the funds, it does not directly operate at the grassroots level. Instead, the funds are channelled through departments that work directly with SHGs on the ground and are able to assess which groups are performing well.
She said the three departments are working together to ensure that resources are effectively utilised for the benefit of SHGs and the people. She added that the ministry closely monitors performance, and if reports are unsatisfactory, further funding may stop. However, good performance will automatically attract more funding to the state.
She concluded by expressing hope that SHGs understand that the funds are not free money. She thanked them for their contribution to the state and said that as a woman herself, the work of SHGs directly resonates with her. She said she was proud of the women and, on behalf of herself and the Department of Industries and Commerce, wished them success.
She urged them to perform well, support the state, and help build an economically viable and developed Nagaland in the years ahead, adding that while the journey may begin with small steps, steady progress will ultimately lead to success.
Secretary to the Government of Nagaland, Department of Industries & Commerce, Kumar Ramnikant, in his speech, highlighted the positive impact and benefits of SHGs and how they are helping communities, especially women. He remarked that Naga entrepreneurs are increasingly outsmarting other businessmen and said it was encouraging to witness such progress. He also extended his full support and cooperation for the days ahead.
Department Nodal Officer (DNO) for the PMFME Scheme, Mhasiphizo Khezhie, in his status report, highlighted deficiencies observed in the Utilization Certificates (UCs) submitted to SNA. These included incomplete Udyam registration, absence of FSSAI registration, equipment not being purchased as proposed and approved, incomplete utilization of the sanctioned seed capital amount, and lack of photographic evidence supporting the utilization of funds in some cases.
Regarding the status of the Seed Capital Utilization Report, he informed that DAY-NULM had submitted Utilization Certificates for 62 SHG enterprises covering 343 SHG members. Utilization Certificates for 281 SHG enterprises covering 1,399 SHG members had been received from NSRLM. However, Utilization Certificates for 822 SHG enterprises covering 2,055 SHG members are still awaited.
Representatives from NSRLM and NULM also shared their success stories and testimonies during the programme.
The programme was chaired by Y. Lipongse Thongtsar.director of industries & commerce and state nodal officer for the PMFME Scheme, P. Tokugha Sema, delivered the welcome address. The vote of thanks was pronounced by Zakielatuo Yiese.