1.

Introduction
AIFs Rickshaw Sangh Programme enables cycle rickshaw pullers to own rickshaws by accessing formal credit which they can repay through easy installments. The program addresses an underlying cause of poverty by promoting asset ownership among urban poor and rural migrants. The programme also promotes collectives of rickshaw pullers to help them gain an identity in order to access entitlements and social security.

Why Rickshaw Sangh?

There are an estimated 8 million cycle rickshaw pullers in urban areas across India and very small number of them actually own their rickshaws; most pay daily rent to an owner. The income of a rickshaw puller from rickshaw pulling is barely enough to sustain his family and owning their vehicle is but a distant dream. A majority of the rickshaw pullers have no credit-worthiness individually as a majority of them are recent migrants who leave their villages to seek employment. They are unable to open a bank account, access credit, obtain ration cards or qualify for other entitlements as they do not have a legal residence in the city. They generally lead a life of low and uncertain incomes and their profession lacks dignity despite providing a cost-effective and non-polluting means of transport. Ownership of a rickshaw enables the rickshaw pullers to build an economic asset and it increases their worth. AIF provides First Loss Default Guarantee (FLDG) to banks on the rickshaw pullers behalf in order to foster ownership. Banks offer loans to NGOs recommended by AIF who in turn disburse them to individual rickshaw pullers. The ownership of the rickshaw is transferred to the rickshaw puller after the successful completion of the installments and the rickshaw belongs to the rickshaw puller and future earnings go into the well-being of the rickshaw pullers family. Proof of identity reduces their vulnerability, & protects them from social stigma and harassment. This enterprise model is also enabling banks to tap into the $1 billion market that India's rickshaw drivers represent.

How Rickshaw Sangh Works?

AIF partners with NGOs in various parts of the country and recommends them to Punjab National Bank with whom they have an agreement. Punjab National Bank provides credit for the implementation of the programme. The NGOs are responsible for the provision of

rickshaws and other services mentioned in the package to the beneficiary and repayment of the loan installments to the bank.

AIFs Rickshaw Sangh Programme has benefitted 7600 Rickshaw Pullers till now in four states namely Bihar, Uttar Pradesh, Assam and Delhi.

2. Bihar Development Trust

BDT is an emerging livelihood and micro finance based institution which aims to demonstrate that professionals can turn entrepreneur in Bihar and catalyze the growth of

economic activity with the help of poor people. BDT is an idea to adapt GRAMEEN and AMUL model to Bihar context and in different sectors (manufacturing as well as services) supported by most efficient technologies. BDT has partnered with AIF to implement this programme in Bhagalpur and Patna Districts. It has been financing rickshaws with normal microfinance products for the women whose husbands wanted to own their own rickshaw. With the support of AIF, BDT started to take a livelihood approach to rickshaw pullers. BDT is providing the rickshaw puller a new built rickshaw for which the rickshaw puller can claim ownership subject to successful completion of installments in 52 weeks. BDT has provided the ownership to more than 150 rickshaw pullers. BDT is the only partner of AIF working in Bihar.

3. Objectives of BDT
The following are the objectives of BDT are as follows. Scaling Up: To enable rickshaw ownership for 700 rickshaw pullers in the next one year. Rickshaw Sangh: To ensure that rickshaw pullers are organized into a Rickshaw Sangh- a membership based collective in the city which would lead to a collective identity and help in enhancing their access to basic entitlements and bargaining on various social issues such as discrimination they face on day to day life. Social Benefits: To ensure that each rickshaw puller also receives value added social benefits which include uniforms, municipal permit, driving license, photo ID, health and asset insurance, bank account and maintenance support. BDT. Economic Benefits Sangh Rickshaw Pullers who become members of Rickshaw Sangh will have a collective identity Rickshaw pullers jointly becoming owners of the rickshaws with their wives. Incremental increase in the income of rickshaw puller. Reduced instances of domestic violence Increased socialization and exposure Sustainability: To achieve breakeven of the operation The following are the benefits that form an integral part of the programme as promised by

Social Benefits

Better Bargaining power Enhanced access to basic facilities Reduced vulnerability and improved dignity Enhanced access to entitlement of government schemes Capacity to overcome from loss caused due to accidents. Reduced expenditure on illness. Formal banking financial inclusion and increased daily savings Ability to ply rickshaw freely without any fear.

Photo ID and uniform

Insurance

Bank Account Driving license

1. Rickshaw Business
Bhagalpur city has nearly 20,000 rickshaws of which nearly 10,000 rickshaws are given on rent. The khatal owners generally own ten rickshaws and give it on rent to people with whom they have had a long relationship or the people who have been recommended by their friends or acquaintances. A good quality rickshaw is given on rent for Rs. 30 for eight hours per day and poor quality rickshaw is given on rent for Rs. 25. The maintenance of the rickshaw is the responsibility of the khatal owners who spend an average of Rs 100 per month on a rickshaw. The khatal owners generally buy a second hand rickshaw in poor condition and change important components and rent it out to the rickshaw pullers. The khatal owners do not charge rent on Sundays and the rent is also waived on the days when the rickshaw puller is unwell. In Bhagalpur city, the auto rickshaws do not pose any serious threat to the cycle rickshaw barring a few areas like Murgiyachak and Mamelichak as the auto rickshaw ply on the roads connecting important parts of the city whereas the cycle rickshaw caters to the people who want to go to interior parts from the important junctions.

2. Rickshaw Puller
A rickshaw puller generally has a large family and average size of a rickshaw pullers family who is involved with BDT is 6. The rickshaw pullers are generally illiterate and Rickshaw pulling is the main source of income in 62 of the 70 families surveyed for the impact assessment. There is a single earning member in 42 families. The dependency on rickshaw

for their livelihood is very high and hence it becomes imperative for the rickshaw puller to work hard every day in order to sustain his family. The earnings of the rickshaw pullers fluctuate throughout the week and there is not a single pattern which can help in predicting their earnings. There is a particular pattern with respect to the earnings of rickshaw pullers over a period of a year. During peak summer, i.e. in May and June the rickshaw pullers are not able to earn much as it become very difficult to ply the rickshaw. During October and November, the earnings of the rickshaw pullers go up considerably owing to increased activity in the market as a result of the festive season. The earnings of the rickshaw pullers take a dip during winter months as they are unable to ply the rickshaws due to the extreme weather conditions. During the rainy season, the rickshaw pullers use plastic sheets and cover the rickshaws and ensure that their income is not affected. The above graph depicts the average monthly income of a rickshaw puller based on the responses of the rickshaw pullers. A rickshaw puller who becomes a member becomes the member of the Rickshaw Sangh programme of BDT with the hope that it will improve his standard of living. The rickshaw model is designed in such a way that it helps the rickshaw puller to pay his installments on time and protect him from any sort of untoward happening which will prevent him from paying the installments on time and reduce the benefits accrued to him. The average income of the rickshaw pullers has increased from Rs. 130 to Rs. 180 due to the fact that they can ply their rickshaw for 24 hours. However, the net income of the rickshaw puller has changed from Rs 100 to Rs 130 as the rickshaw puller has to spend on the maintenance of the rickshaw. This leads to one of the major factors of the Rickshaw Sangh Programme. Maintenance Maintenance is one of the key components of the package and the beneficiaries were promised a complete maintenance of the rickshaw for the period during which the beneficiary is paying the installments. The beneficiaries were informed that there would be mistries who will be entrusted with the job of repairing the rickshaws who will be catering to their needs throughout the year. The amount allocated for the maintenance component is Rs. 75 per rickshaw and it is a paltry sum considering the fact that the average amount spent by a rickshaw puller for the maintenance of his rickshaw is Rs 50 per month. BDT had an agreement with a mistry who

was given a sum of Rs. 1000 per month to repair the rickshaws. The above arrangement did not work because of the following reasons. The maintenance component of the Rickshaw Sangh Programme was designed to address major issues with the essential components of the rickshaw rather than addressing the daily maintenance requirements. The beneficiaries were of the opinion that all their maintenance requirements will be taken care of due to the miscommunication on the part of BDT employees. This increased the expectation of beneficiaries which was not met by BDT. The mistry who was assigned the task of repairing the task of repairing the rickshaws was paid a fixed monthly labour charge of Rs.1000 and hence he did not pay considerable attention to the needs of the rickshaw pullers. The mistry was sometimes flooded with rickshaws which were to be repaired and this created a bottleneck as the mistry was unable to repair all the rickshaws in a single day and the lack of employment for one or more days affected the livelihood of a rickshaw puller significantly. The mistry was located at a distance of eight kilometres from some of the localities like murgiyachak and hence some of the rickshaw pullers did not find it helpful as it was very difficult for them to paddle eight kilometres to get their rickshaws repaired. A good rickshaw does not require any maintenance for one year if the rickshaw puller plies it properly. However, in some cases the poor components used for making the rickshaw which resulted in increased maintenance costs. Rickshaw The beneficiaries associated with the Rickshaw Sangh programme had the option to choose from various options like a steel body rickshaw, aluminium body rickshaw, thela, three wheeler carts or a four wheeler carts. The rickshaws were majorly sourced from Mahavir Cycles and S.G. Associates. One of the major constraints in rickshaw making is the fact that it takes at least a week for a mistry to assemble a rickshaw and the city of Bhagalpur does not have large rickshaw makers specialised in delivering Bhagalpuri rickshaws.