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Essentials of UP PFMPAPPresentation @Annual Review Meeting, March 4, 2012

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Logo of the projectg p j

• What does it says?

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Project Goals

The Project Goals are: P i i h bili i d f • Participatory rehabilitation and management of degraded forests E h f li lih d f h l l l• Enhancement of livelihood of the local people

The project has 12 components.

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Project Approach

Th f h b f ll d hi h There are four approaches to be followed to achieve the project goals:

Participatory forest management by JFMC/ EDC Participatory forest management by JFMC/ EDC together with UPFD formulating micro-plans; More emphasis on NWFP and fodder grasses and o e e p as s o a d odde g asses a destablishing benefit-sharing mechanism to support livelihoods and incomes

ill l l i i bFocus on village-level micro-enterprises to be managed by JFMC/ EDC/ SHG; and Capacity buildingCapacity building

Let’s understand it in context!

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Some important Acts of last few decadesdecades

▫ The Forest Conservation Act, 1980 was enacted to check the diversion of forest land for non-forestry purposes.

E i t P t ti A t 86 t d f i i th ▫ Environment Protection Act, 1986, was enacted for improving the environment of the country.

▫ Panchayats Extension to the Scheduled Areas Act (PESA), 1996 has shown remarkable progress for enhancing contributions of forests towards p g gpoverty alleviation through empowering people with the ownership of NTFP

▫ Biodiversity Conservation Act, 2002 provides for conservation of biological diversity, sustainable use of its components and fair and equitable sharing of the benefits arising out of the use biological resources, knowledge sharing of the benefits arising out of the use biological resources, knowledge and matters connected therewith or incidental thereto.

▫ Forest Right Act, 2006 – The Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Right), assigning habitation and occupation rights on forests along with responsibility of conservation of occupation rights on forests along with responsibility of conservation of biological resources and maintenance of ecological balance to community.

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JFMC/ EDC – emerging Institutionsg g• JFMCs are created under UP Village Forests Joint UP Village Forests Joint

Management Rules, 2002 Management Rules, 2002 that ensuresManagement Rules, 2002 Management Rules, 2002 that ensures▫ Notification of ‘village forest’ as defined in section 28 of Indian

Forest Act, 1927▫ Constitution of Forest User Group (FUG)▫ Constitution of Forest User Group (FUG)▫ JFMC to sign agreement/ MOU with the UPFD to jointly manage

the village forestP f f ti d d ti d i d fi d i ▫ Perform functions and duties, and exercise powers as defined in JFM Rules of year 2002

• EDCs are created under resolution of Government of resolution of Government of Uttar PradeshUttar Pradesh made in year 19991999

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Additional Features under the project

• Registration under Societies Act, 1860 • Notification of village forest (with site demarcation and erection of g (

boundary pillars) and signing of MOU with UPFD• Allocation of forest land for plantation purpose having forest type in

category of a) very dense very dense forest, b) moderatelymoderately dense, and c) open open category of a) very dense very dense forest, b) moderatelymoderately dense, and c) open open degraded and scrubdegraded and scrub forest

• Nomination of Executives officers (President, Treasurer, Book keeper Secretary)keeper, Secretary)

• Constitution of eighteight Working Groups• Membership fee collection on annual basis

S lf H l G (SHG ) b f JFMC t b tit t d • Self-Help Groups (SHGs) as sub-group of JFMC to be constituted for income generation

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Important Clauses from JFM Rules 2002Clause DescriptionRef.3 JFMC on behalf of FUG, and along with nominee of UPFD

would undertake JFM

6-1 (1) Prepare, approve and Implement Micro Plan

6-1 (2) Prepare Annual Implementation Plan and ensure timely execution of forestry works

6-2 JFMC Chairperson would use the stamp in presence of two members as witness and confirm their presence by signing

8-1 • Micro-plan would be approved by FUG prior to its approval from Divisional Committee.

• Towards the end of each year Micro-plan would be reviewed by JFMC and require to seek approval both from FUG and Divisional Committee for any modificationFUG and Divisional Committee for any modification

14-1 Meeting between JFMC and Range-level Committee would be held at-least once in a month

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Important …JFM Rules 2002Clause DescriptionRef.14-2 For attending meeting members would be paid fare for

travelling by Bus/ Train (Second class)

14-3 Provisions of all such expenditures to be made in the Micro-plan

17-2 All withdrawal/ transactions would be done after priorl b JFMC d h f i hd l d approval by JFMC, and thereafter present withdrawal and

expenditure statement in the next meeting

18-2 Accounts of the JFMC would be audited by Director, Local Fund Audit Department Uttar Pradesh from time to time Fund Audit Department, Uttar Pradesh from time to time

19-1 to 19-3 Benefit-sharing (also read GO (1835/14-5-2010-109/ 1993) dated November 26, 2010 amendment)

Key actors at i l t ti

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FMUimplementation level

FMU

P tPartner NGO

JFMC/ EDC

Animator

Community

EDCor

Micro Planning approach

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Micro-Planning approachBaseline of

Village Forest –stocks/

resourcesSite

demarcated and Base Built

iti map 1:5000 scale

(digital)

capacities of JFMCs/

EDCs

MICRO Research’s

Inputs –Work

norms & JFM /

Baseline: Socio-

economic -& resource

PLAN

JFM / NWFP models

Technical guidance & support by

UPFD (under

& resource utilization

(under MOU)

Financial Sources13

Financial Sources• JFMC being a registered body (Societies Act, 1860) could

receive funds from multiple sources, including funds for p , gimplementing UP PFMPAP activities

• Membership Fee collected from General Body members/ FUG and other fees/ fines/ charges/ / g

• Income from Timber/ NTFP/ NWFP• Funds for Nursery establishment (289 units), producing

planting stock, forest improvement/ plantation, drainage line p g , p / p , gtreatment and fire protection under the project

• Initial support fund for community organizing, micro-plan preparation, and

• Livelihood Security Enhancement (LSE) – Rs.90,000 for existing and Rs.180,000 for newly constituted JFMC/ EDC.

• Seed Fund (around Rs. One lakh per SHG) and Support Fund p pp(around Rs. 10,000 per SHG)

Budgetary Flow14

Budgetary Flow

• Budgetary flow to JFMC/ EDC would be strictly divided with establishing two different accounts in a JFMC/ EDC village –▫ JFMC Account (for forestry work)JFMC Account (for forestry work)▫ Village Development Fund (VDF) (for village

development work)hi h b d id b bl i i• This has been created to avoid probable mixing-up

of expenditure between forestry work and village development work.p

• Different sources and management/ utilization has been suggested to the two accounts

Budgetary flow model for JFMC15

g yDMU

UPFD1/4th Benefit share of sales of FP

Funds during project period

JFMC Account (For Forestry Work)

VDF Account (For Village Development Work)

R t d i i l &

of sales of FP

1/4th Returned principal & Interest from SHG LoanCash fines for

illegal felling

Market

3/4th Benefit share of sales of FP

SHGSH

GSHG

Grazing Fee

3/4th Benefit share of sales of FP

Utilization of Income by JFMC16

yIncome for

various sources

3/4th Benefit share / earnings1/4th Benefit share / earnings

JFMC Account (For Forestry Work)

VDF Account (For Village Development Work)

1/4th Benefit share / earnings for each

Community FUG Seed Money Community Development

FUG Dividend

B fit Sh i

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Timber, Benefit SharingIncome = Sale Proceeds –(A t l E dit

Timber, Bamboo and Tendu-patta

(Actual Expenditure +Overhead expenses)

Situation 3: In Situation 3: In case of Bamboo

l if UPFC

Situation 1: Regular course

Situation 2: Large scale

felling due to calamities

only if UPFC opts out

Royalty b JFMC

Total sale d

50% Income

50% Income

Balance Income

10% Income or one lakh

cou se calamities by JFMCproceeds

JFMC UPFD JFMC UPFD JFMC UPFD

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Benefit Sharing…2Income = Sale Proceeds –(Actual Expenditure +Overhead expenses)

NWFP other than Tendu-patta and Medicinal plants

Medicinal Plants (Raw

form)

Token money by JFMC

100% Income Token money

by JFMC100% Income

JFMC UPFD JFMC UPFD

Benefit and Responsibility Sharing of

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Benefit and Responsibility Sharing of Forest Produce

Items Benefit Sharing JFMC/ UPFD

Responsibility for collection, Store, Process and Market

Timber 50/50 UPFC

Bamboo 50/50 Collection would be contracted out to JFMC in case UPFC works, else JFMC would

f i ibili d h ll hperform entire responsibility and shall pay the royalty

Tendu Patta 50/50 Collection would be contracted out to JFMC

Medicinal Plants

100% for JFMC

JFMC shall work in supervision of UPFC and shall make payments for collection, storage and processing at mutually agreed rate

Oth NTFP % f E ti ibilit t ith JFMCOther NTFPs 100% for JFMC

Entire responsibility rests with JFMC

JFMC A

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JFMC AccountItem Source PurposeItem Source Purpose

Project funds PMU/ DMU

Forestry works

I h f Ti b T d UPFC F t kIncome share from Timber, TenduPatta, Bamboos and Medicinal Plants (1/4th)

UPFC Forestry works

Income share from other NTFPs Market Forestry worksIncome share from other NTFPs(1/4th)

Market Forestry works

Cash fines for illegal grazing, felling etc.

Villagers Forestry workse g etc.

Grazing fee FUG members

Forestry works

Forestry Works (after project UPFC/ Forestry Works (after project completion)

UPFC/ UPFD

VDF Account21

VDF AccountItem Source Purpose

Voluntary contribution of Individual/ Seed Money for IGA/ Community FUG FUG

membersworks

Income share from Timber, T d P B b d

UPFC Seed Money (1/4th), Community k ( / th) Di ib i Tendu Patta, Bamboos and

Medicinal Plants (3/4th)work (1/4th), Distribution to individual FUG members (1/4th)

Income share from other NTFPs (3/4th)

Market Seed Money (1/4th), Community work (1/4th) Distribution to NTFPs (3/4th) work (1/4th), Distribution to individual FUG members (1/4th)

Annual Membership Fee Individual/ FUG

Seed Money for IGA/ Community worksFUG

membersworks

Returned Principal and Interest from SHGs loans

Corpus Fund of SHG

Initial capital for Seed Fund for SHGs

Project funds PMU/ DMU Initial capital for Seed Fund and Support Fund for SHGs

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Open for discussion

anks

for

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