INVESTMENT

FRAMEWORKMBDS,Shillong

PHILOSOPHY OF INVESTMENT=SRI?

Where are we putting our $?

Sub sector Studies Demonstrations Technical Consultancy Workshops Capacity Building Seminars Review Meetings Enterprises Land Purchase facilitation BDS facilitation

DEMONSTRATION

Demonstrations are to be established mainly with a

view to create more opportunities in the project area

so as to facilitate easy access to the beneficiaries in

making informed choices about the livelihoods and

micro-enterprises to be taken up for income

generation and food security. These demonstrations

would be in the farm and non-farm sector.

Typically Demonstration fund is Grant .Can it be

Returnable Grant with a longer repayment period?

Can it be partnership ?

How to decide the nature of funding?

Demonstration = Income Generation Activity?

How to select beneficiaries for demonstrations?

Beneficiaries = entrepreneurs?

DO WE NEED DEMONSTRATIONS ON ?

◦ Integrated Jhum?

◦ Jhum Ginger /Spices farming

◦ Processing of rice?

◦ Integrated farming?

◦ SRI?

◦ Organic food? Certification? Collection and grading?

◦ Seed Production?

◦ Vermicompost? Packaging and grading ofvermicompost

◦ Apiary? Honey Processing? Honey Certification?Bee swarming? Bee migration?

◦ Power tiller?

◦ Agri implement hiring centre?

◦ Agriculture Input Centre?

◦ Market shed?

◦ Cold storage? Conventional? Traditional?

◦ Transportation–vehicle/ropeways/mule?

◦ Kitchen-garden?

◦ Orchard: cashew nut/orange/areca nut?

◦ Turmeric/ Ginger cultivation processing andmarketing

◦ Cashew cultivation processing and marketing

◦ Off season vegetable production and marketing

◦ Horticulture Nursery?

◦ Fruit and vegetable Processing?

◦ Poly house/tunnel?

◦ Floriculture ? Seed/Bulb Production?Marketing and grading centre? Essential OilProcessing

◦ Water Harvesting?

◦ Micro-Hydel? Water Mills?

◦ Micro-Irrigation?

◦ Piggery? Breeding? Fattening?Bokashi?

◦ Dairy farming? Bull breeding?

◦ Milk processing? Milk Vending?

◦ Cattle Feed Block

◦ Cow urine processing & value addition?

◦ Leather tanning?

◦ Goat rearing? Meat vending

◦ Sheep rearing? Wool collection?

◦ Artificial Insemination centre?

◦ Fishery? Cold water fishery? Fish

bredding?Ornamental fish? Fish Feed? Fish

vending?

◦ Home stead Poultry? Egg/meat production –

marketing? Mother unit? Hatchery?

◦ Poultry feed?

◦ Duckery? Hatchery?

◦ MAP? Nursery? Processing?

◦ Cinnamon leaf (Tejpatta) production and improved

trading (proper drying, storage, grading ?

◦ Pine tree (Pinus keysia) management by

community groups for resin wood, resin or coal?

◦ Small wood production with village-level

processing by Activity Groups?

◦ Management of bamboo by SHGs on forests,

\abandoned/ current shifting cultivation areas;

bamboo shoot production, processing, and

nurseries; bamboo value adding mats production?

◦ Broom grass production, processing, marketing?

◦ Fodder plantation?

◦ Handicrafts?

◦ Broom stick production, processing and marketing?

◦ Production of aromatic products, processing and

marketing?

◦ Muga and eri sericulture including rearing silk worms

for food?

◦ Sustainable collection and improved trading of

lichens and moss?

Large Cardamom production and trade?

Packaging leaves (Phyrnium sp) for

local and regional markets?

Agro-forestry?

Fodder tree plantations?

Nurseries?

What about RNFS? Ecotourism: Homestays,Tour operators,

Guides, Interpreters , Cooks?

Weaving? Product Design?

Designer Candle making?

Hand made shop?

Hand Made Paper?

Rural Non Conventional Energy Implements?

Grocery? Collective Marketing?

Computer Education? DTP?

MeSEB Franchise?

If we promote the items listed above from the

demonstration fund then should it be loan or grant?

Can we give soft loan for demonstrations? What will

be @ of interest for soft loan?

What should be the maximum tenure for

repayment?

What will be the repayment schedule for soft loan?

Weekly or monthly? Or Flexible repayment

schedule?

What documentation is needed for sanctioning

loan? What shall be our criteria for funding?

Who will be responsible for recovery of the loan

amount?

Are we going for 100 per cent funding on the

project cost?

MICRO ENTEPRISE

What is the difference between Micro Enterprise and

IGA?

What to promote :

◦ Group Entrepreneurship

◦ Activity Group

◦ Individual Enterprises?

What type of micro enterprises we are going to

promote?

How will you prepare and apprise the funding

proposals? What skills are required for appraisal of

project proposal?

Do we need business plan for every investments even

for IGA?

What will be our minimum and maximum level for

What are the types of funding possible in an Micro Enterprise /IGA?

◦ Debt

What will be our loan products? How will it be different from others? Are we also going to have loan product like personal loan?

What will be our loan process? How much time we must take to process a loan?

What will be the rate of interest rate? Reducing or Fixed Interest rate?

◦ Equity/Near Equity

Mechanism of investment?

When to exit?

How to exit?

What about micro leasing?

What about guarantee fee?

How to decide the nature of funding options?

Which stage of Enterprise lifecycle we are going to fund?

What should be the strategy for investment for the ultra poor? What package of investment services we are going to provide to women and the people with disabilities?

What social returns we anticipate from a project?

How will you address Risk Management issue of Enterprises? How will you address the risk management issue of entrepreneur?

Are we going to promote insurance products of third party? What about designing mutual insurance products?

Who will manage the investment portfolio?

Is Participatory Enterprise Monitoring Possible?

What records we are expected to keep at Enterprise level and DMU/PMU level?

What will be our negative list of investment?

What will be the size of investment for IGA,Micro enterprises?

Are we going to fund enterprises beyond project areas? If yes Why? How?

Which sector will be our priority sector for funding?

What will be our strategy for funding traditional sector?

What will be the strategy for converge for enterprises?

What should be the component for our MIS?

What will be our level of involvement in enterprises ? How we will govern the investments in the enterprises? How far is it feasible?

LAND BANKThe pilot initiative aims to :

Ensure security of access to productive assets for target households, especially landless families, on both jhum and non-jhum lands,

Build the capacity of village level institutions in land management, thereby strengthening them in their traditional role of supporting livelihoods through efficient and equitable natural resource management,

Link target households to credit, marketing, extension, business development and technical services,

Check the trend towards privatisation of community lands,

Provide a replicable model for wider application.

Should we invest directly in land and lease it to

communities?

Should we facilitate the community to procure

land on lease?

Do we need land bank committee ?

Are we going to route funds to beneficiaries

through land bank committee?

CONVERGENCE

Is the community ready for convergence?◦ Is the need reflected in the village Plan?

◦ Is the community ready to make cash/lab our contribution?

◦ Does the community have capacity to manage theconvergence?

Will the quality of life of the community improve?

Is it going to make the poorest families dependent onMRDS/LIFCOM or will the intervention promote asustainable process of empowerment and freedomfrom poverty?

Will it ensure that a proportionate 80 per cent or moreinvestment would be extended by the concernedpartner/agency if MRDS/LIFCOM invests a nominalamount of the project cost? What will be percentageshare of investment of time and money byMRDS/LIFCOM and the partner organization for theproject?