Presentation on 22nd July, 2010

S.G.S.Y/NRLM

Main Features of SGSY Formation of Self Help Groups of Rural BPL. SHGs are encouraged to inculcate the habit of thrift. Capacity Building and Skill Development Training of SHGs Provision of credit linkage and subsidy for economic activity Credit linked subsidy is provided in the form of Revolving Fund

& Capital Subsidy 20% (25% for NE States) of the allocation for infrastructure &

marketing support 15% of total allocation for special projects in the nature of

pioneer projects, capable of triggering growth impulses. Reservation of benefits for SC/STs (50%), Women (40%),

Minorities (15%) and the disabled (3%) swarozgaris.

PERFORMANCE SINCE INCEPTIONDeliverables Apr.1999 -

May’102009-10

Total Central Releases (Rs. In crore) 14100 2230

Total Investment (Rs. In crore) 34000 6410Total Subsidy Disbursed (Rs. In crore) 11000 1960Total Credit Disbursed (Rs. In crore) 23000 4450Subsidy Credit Ratio 1.98 2.27Per Capita Investment (in Rs.) 24000 (avg) 31800No. of SHGs formed (No. in lakhs) 38 3.89Economically Assisted SHGs (No. in lakh) 9 1.36Total Swarozgaris Assisted (No. in lakh) 140 21Number of SC/ST Swarozgaris Assisted (No. in lakh) 67.92 (46%) 10.75 (51%)

Number of Women Swarozgaris (No. in lakh) 84.27(59%) 15.02(72%)

Areas of Concerns under SGSYUneven spread (weak in the poverty pockets in the

country)Poor quality of SHGsInadequate flow of credit-Need of multiple doses of

creditHigh interest rates Inadequate Manpower & lack of professionals to

implement the complex and process oriented programme need a strong and huge team of community

resource personsInadequate institutional arrangement for trainingFund driven rather than need basedLittle flexibility to statesMost of the SHG enterprises economically unviable  Need for up-scaling of placement linked skill

development projects

New Paradigm……

Where the poor participate as subjects and not as objects of the development process, it is possible to generate growth, human development and equity, not as mutually exclusive trade-offs but as complementary elements in the same process 

 --- Meeting the challenge, Report of the Independent South Asian Commission on Poverty alleviation, 1992

Pro-poor Perspective & Premises for Action...Building organisations of the poor is an essential prerequisite for poverty alleviation. Through these organisations, the poor can save and invest efficiently

Empowerment of the poor is the means to poverty eradication. Through empowerment, the poor can also assert the right to resources intended for them and enhance their dignity and self respect

Poor women can effectively overcome their double burden through the same process.

The need for sensitive support mechanisms to catalyse the process of social mobilisation.

--- Meeting the challenge, Report of the Independent South Asian Commission on Poverty alleviation, 1992

Learnings regarding Way out of Poverty

Poor have desire & capability to come out of povertyCapabilities are suppressed by variety of obstacles –

psychological, economic, social, religious, and political

Way out of poverty- Organizing the poor into institutions that they truly

own.-Building and nurturing S.H.Gs, enabling them to

access credit for coming out the high cost debt trap ( debt swapping)meeting their consumption needs – food, health,

education, etc acquiring assets for income generation

Flexible Design of NRLM Demand driven strategy

Dedicated support organization for NRLM Universal Social mobilization of the rural poor Building institutional platforms for the poor Training and capacity building Developing pro-poor financial sector Access to services and entitlements Linking with markets Risk Mitigation Convergence Gender empowerment Monitoring and transparency

Sensitive Support Organization

National Rural Livelihoods MissionSensitive Support Organizational Structure

State Level Support OrganizationDedicated structure at District and Block Level

Demand Driven Approach: Moving away from ‘allocation based approach’States to prepare specific time bound action plans for

poverty elimination through (i) building peoples’ institutions, (ii) livelihood development, and (iii) skill based wage employment

Accountability Systems: Institution of systems like social auditing for transparent and accountability

Financial Norms under NRLM

5% of allocation for Administrative Cost

Rs 10,000 per SHGs for formation

Rs. 15,000 RF per SHG

Capital Subsidy -Rs. 15,000 per swarozgaris for general & Rs.20,000 for SC/ST & Disabled subject to Max Rs.2.5 lakh per SHG

Ensuring availability of credit at 7% rate of interest

Rs. 7500 per swarozgari for training & CB

Financial Norms under NRLMOne time grant assistance of Rs. 10,000 to

village/Panchayat level, Rs 20,000 to block level, Rs 100,000 to district level federations

20% of allocation, of which expenditure on innovative projects should not exceed 5%. 7.5% to be retained at the centre for multi-state skill development projects and remaining 7.5% for states to implement state specific special projects for skill development and placement.

Strategies/Interventions proposed to be adopted under NRLMParticipatory identification approach for the poorCRP Strategy for formation of SHGs and their

Capacity building & trainingFederation to act as financial intermediariesFacilitating SHG Bank linkageFood security fundHealth Risk FundRisk Mitigation Livelihood Interventions in Agriculture

(SRI,SWI), animal husbandry, off farm activities Skills upgradation and placement of rural youth

Role of PRIs, NYKs, NGOs etc.

Identification of the poorCapacity building & trainingInfrastructural SupportLinkages of SHGs with BanksMarketing supportMaintenance of record of SHG/VFs/BFs/DFsMonitoring and Social auditingDissemination of best practicesEngaging youths as BC/BFs

Role of PRIs, NYKs, NGOs etc.

Career counselling for youthDatabase of youth – skills inventory and

aptitudes surveyOpportunities for skill trainingOpportunities for placementRSETIs – self employment

Role of Media & IT

Mass campaign through Radio, TV and print media by introducing small films, TV serials etc

Capacity building & training through Visual Media

Development of contentShowing best practices through mediaPromote community radio movementUse of local radio stations – involvement of

local communities in content

Poverty is an affront to human dignity, and a cost to

the economy and the polity. Poverty creates vulnerability, dependence

andhelplessness. It deprives society of

the productive energies of a substantial

segment of its population, contributing to instability and social

unrest.

Thank you