NGOs have been the pioneers in mobilizing the poor into group, maintaining and nurturing such groups to function effectively. Federation is a network of several SHGs and a structure of body evolved by SHGs themselves consisting of representatives from all member SHGs with the motive of supporting member SHGs attain the goals of economic and social empowerment of women members and their capacity building.
Federation provides institutional (legal) status and recognition for SHGs and facilitate linkages between SHGs and Banks/Government Agencies/Local Institutions.
Federation enhance bargaining power over the rights, privileges of SHGs and its members and have better access to development information and marketing linkages. It also shares the expertise and experience of member groups for mutual co-operation and development.
SCAWD has taken steps for the formation of Federation by enrolling new SHGs along with the old SHGs. Efforts are taken to farm village level clusters of SHGs to share the expertise and experience of member groups for mutual co-operation and development.

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