Shillong, Jan 30: The Meghalaya government has approved the formation of the Pla Tangka Cooperative Society, an apex financial institution dedicated to supporting Self-Help Groups (SHGs) to bolster rural women entrepreneurship across the state. The initiative aims to provide a seamless credit ecosystem for SHGs, fostering sustainable economic growth and financial independence for women.

Chief Minister Conrad Sangma, while announcing the formation of the cooperative society, highlighted the remarkable expansion of the SHG movement in the state. “The number of SHGs has surged from 4,000 in 2018 to over 51,674 today, with membership rising from 30,000 to more than 5.2 lakh women. SHG-driven financial circulation has increased from ₹40 crore to ₹1,000 crore over the same period,” Sangma said.

The Pla Tangka Cooperative Society, a first for the state, will function as a dedicated financial backbone for SHGs, enabling them to deposit funds and access credit up to 10 times their deposits without navigating traditional banking hurdles.

“This cooperative is not a bank, but it will provide specialized financial services tailored for SHGs,” Sangma noted, adding that the initiative will strengthen rural entrepreneurship and foster inclusive economic growth.

The cooperative will follow a tiered structure. SHGs, comprising 10-15 women per group, form the foundation, while Village Organizations (VOs) represent multiple SHGs. There are currently 5,640 VOs in the state. At the higher level, Cluster-Level Federations (CLFs) combine multiple VOs, with 336 CLFs established across Meghalaya.

By subscribing to the cooperative, SHGs will bypass bureaucratic barriers and gain access to hassle-free credit, helping them expand operations, create employment, and drive rural development.

The SHG movement in Meghalaya has played a pivotal role in enhancing financial stability for women and generating rural employment. Many members have used collective savings to start or expand businesses, fund their children’s education, and achieve economic independence.

“Many women who previously struggled to pay school fees are now financially stable. The SHG model has given them economic security and dignity,” Sangma emphasized.

Meghalaya now joins Rajasthan, Andhra Pradesh, and Telangana as the fourth state in India to establish such a cooperative society. The government has set ambitious targets of 80,000 SHGs and ₹8,000 crore in revolving funds by 2028.

By providing structured financial support, it promises to unlock the potential of rural women entrepreneurs, contributing to the state’s economic progress and social transformation.

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