Presentation on Swarnjayanti Gram Swarozgar Yojana (SGSY)/

National Rural Livelihoods Mission (N.R.L.M)

Structure of Presentation

SGSY – statusRe-structuring S.G.S.Y into N.R.L.M NRLM – Salient FeaturesNRLM roll out statusIssues

S.G.S.Y - Main Features

S.G.S.Y - 1999: covering all aspects of self-employment

Organising Rural BPL into S.H.Gs, provision of credit linked with subsidy for income generating assets

Identification of key activities Support provided for marketing and infrastructure

creation ( upto 20% of the SGSY allocation ) Skill Development and Capacity Building Training

of SHGs leading to micro enterprise.

S.G.S.Y - StatusMain Achievements since inception20 lakh BPL S.H.Gs covering 250 lakh

Swarozgaris152 lakh Swarozgaris assisted with bank credit

& subsidyCredit mobilization: Rs.1100 crore in 1999-00

to over Rs.4450 crore in 2009-10Per capita investment: Rs.17000 per

beneficiary in 1999 to Rs. 31800 in 2009Skills and placement special projects: About

2.31 lakh beneficiaries have been trained & 1.75lakh placed

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09-10 10-11

No. of SHGs formed (lakh) 3.89 3.11

Economically Assisted SHGs (lakh) 2.92 3.12

Total Swarozgaris Assisted (lakh) 20.85 21.09

Number of SC/ST Swarozgaris (lakh) 10.76 (52%) 10.97 (52%)

Number of Women Swarozgaris (lakh) 15.02(72%) 14.24 (67%)

Number of Minorities Swarozgaris (lakh) 2.41(12%) 2.44(12%)

Total Central Release (%age against central allocation) (crore)

Rs.2230 (96%) Rs.2665(89%)

Total Investment (credit +subsidy) (crore Rs.6409 Rs.6400

Total Subsidy Disbursed (crore) Rs.1962 Rs.1814

Total Credit Disbursed (% against target) (crore)

Rs.4447(100%) Rs. 4586 (88%)

Per Capital Income (in Rupees) 31817 31375

SGSY- Progress – 2009-10 and 2010-11

S. No. S.G.S.Y / N.R.L.M BUDGET FOR 2011/12 ( Rs.2914 crs)

Total(Rs. in cr.)

1. SGSY/NRLM - Grant in aid to States(support for formation of SHGs, RF, Trg. and CB, subsidy, Mktg. and infrastructure)

2191

2. Special Projects 450

3. M.K.S.P 200

4. RSETI s 50

Restructuring S.G.S.Y

Shortcomings experienced during implementation

Large scale initiatives of some states – A.P, Kerala, and experiences of N.G.Os

Steering Committee constituted by the Planning Commission for the 11th Plan - 2007

Recommendations of Prof. Radhakrishna Committee - 2008

Key lessons from large scale Experiences

Even the poorest family can come out of abject poverty , in 6 - 8 years provided:

• They are organized, build and nurture own institutions, and, provided continuous handholding support

• able to access thrift and credit in repeat doses, for meeting varied priority requirements. External finance of Rs. 1.0 lakh per family required

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NRLM

Goal:Poverty elimination through social mobilization, institution building, financial inclusion and a portfolio of sustainable livelihoods.

VISION: Each poor family should have an annual income of at least Rs.50,000 per annum

( current poverty line is equivalent to Rs.23,000 per family per annum) 9

NRLM

Task: to reach out to 7.0 crores rural poor households, and, stay engaged with them till they come out of poverty

Mission: To do this in a time bound manner

N.R.L.M - SOCIAL MOBILISATION

Organising the poor – to ensure a woman from each poor family is part of a S.H.G

Inclusion of the poorest, and meaningful role to them in all processes

Institutions of poor, greatest source of strength for the poor

Dedicated, professional, sensitive and accountable support structure to initiate the process

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N.R.L.M – SOCIAL MOBILISATION

Poor to drive all project initiatives – key role of social capital: S.H.G and federation leaders, community professionals

Scaling up through community best practitioners

Exit policy for external support structures Transparency and accountabilityCommunity self reliance and self

dependence 12

N.R.L.M – SOCIAL MOBILISATION

Piloting by national unit: Triggering this work in 40 districts and 100 Blocks

Proof of concept, training for state teamsPartnerships with experienced C.B.Os and

resource state societiesSimilar strategy was followed in BiharEventually these 100 blocks, and 1000 villages

become resource villages – training centres and immersion sites

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N.R.L.M - financial inclusion

Access to credit key to coming out of poverty.

A minimum of Rs.100,000 per family required, in several doses over a period of 5 – 6 years. Of this 90% has to come from financial institutions.

Financial inclusion at affordable cost holds the key

Building pro-poor financial sector

Strategic partnerships with banking sector - intensive district adoption by select banks

SPV promoted by NABARD, SBI and State Governments to finance S.H.Gs ( Karnataka)

Accessing Co-operative banks – restructured after Vaidyanathan committee recommendations

Promoting Financial intermediation by mature S.H.G federations

A national bank for women S.H.Gs on the lines of NABARD

Building pro-poor financial sector

Leverage IT and business correspondents models. SHGs and federations as B.Cs

Facilitation support: ‘Bank Mitras’, Financial literacy and financial counseling

Interest subsidy on loans to S.H.Gs

Micro insurance to cover life, health and assets

National Rural Livelihoods Mission

Four streams of livelihoods promotion:

coping with vulnerabilities – debt bondage, food insecurity, migration, health shocks

existing livelihoods – stabilising and expanding, making them sustainable

self employment - micro-enterprise development

skilled wage employment - opportunities in growing sectors of the economy

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strengthening existing livelihoods

Critical livelihoods are: agriculture, livestock, forestry and non-timber forest produce

Promote institutions around livelihoods

Promote end-to-end solutions, covering the entire value chain

Key – knowledge dissemination. Development of community professionals in a large number

strengthening existing livelihoods

Community managed sustainable agriculture holds immense promise

A family can secure additional annual incomes of Rs.50,000 with 0.5 – 1.0 acre of land ( 0.25 to 0.50 acre irrigated + 0.50 to 0.75 acre rainfed lands )

Natural farming, multi layer, poly crop models for food security and sustainable livelihoods

Convergence with MG NREGS to improve soil and moisture conservation, and, soil fertility

Mahila Kisan Sashaktikaran Pariyojana (MKSP)

• MKSP to improve the present status of women in Agriculture, and to enhance the opportunities for her empowerment.

• MKSP is a sub component of the National Rural Livelihood Mission (NRLM)

• The primary objective of the MKSP is to empower women in agriculture by strengthening community institutions of poor women farmers and leverage their strength to promote sustainable agriulture.

MKSP Non-Negotiables

• Strong Community institutions of Women farmers• Community managed Sustainable Agriculture - Low cost

sustainable practices such as NPM/ IPM/ Integrated Nutrient Management

• Promoting and enhancing food and nutritional security at Household and Community level

• Drudgery reduction for women farmers• Focus on landless, small and marginal farmers as project

participants• Value addition and marketing• Resilience to climate change

Promotion of Livelihoods in the primary sector

• Similar schemes will be formulated for : Livestock, dairying, N.T.F.P, Fisheries, handloom sector

• Learnings from these pilots will feed into the strategies for N.R.L.M

skill development and placement

Up-scaling Skill development and placement through public-private partnerships – 1.0 crore youth over a period of 5 years

Special initiatives for J&K, IAP Districts (60), Minority concentrated districts and North East

Progress till 2010-11 Skills and placement projects through private sector and N.G.Os -

initiated in 2006. 15% of SGSY/NRLM allocation set apart for Special Projects.

Under this component 148 placement projects sanctioned to cover 11.50 lakh beneficiaries (Total investment Rs. 1655 Cr. approx.)

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2007-08 2008-09 2009-10 2010-11

Projects approved 1 15 66 61

Beneficiaries 24,000 1,65,000 4,34,000 4,20,000

Total cost (crore) 10.81 140.20 634.32 797.01

Funds released(Cr.)

16.21 49.96 158.10 253.89

Beneficiaries TrainedPlaced

22,00018,000

18,00014,500

80,00055,000

1,40,0001,10,000

Special Skills and Placement Mission in J&K

J&k Jobs Project was approved by Cabinet on May 19, 2011, as a 100% Central assisted scheme.

This scheme will cover all youth: from rural and urban areas, and, BPL and non-BPL category in J&K.

1 lakh J&K youth will be trained for salaried and self-employment in the next 5 years.

MoRD will take first year (July 2011 to June 2012) as a year of experimentation to try out new models

Self employment and micro enterprise development

Entrepreneurship development among local youth to generate in situ employment

5 – 6 million ‘micro-entrepreneurs’

Successful RUDSETI model will be replicated – MoU with RUDSETI

Other innovations: Kerala KUDUMBASREE ( community EDP trainers)

convergence and partnerships

Convergence – institutions of poor provide a platform for convergence and optimisation of all anti-poverty programmes

Linkages with PRIsPartnerships with N.G.Os and CSOsPartnerships with resource C.B.Os and resource

state agencies ( S.E.R.P, KUDUMBASREE, BRLPS)

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Partnerships for livelihoods

Partnerships with industries, industry associations – for skills and placement, micro-enterprise development, and, marketing support for agri-forest produce

Different thematic groups will be set up, like agro-processing, garmenting, hospitality, automobiles, construction, IT services, etc.

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sensitive support mechanism

Dedicated sensitive support structures at all levels to trigger social mobilisation.

A national mission management unit State wide sensitive support structure, full

time dedicated head of the mission Positioning multi-disciplinary team of trained

and competent professionals at state, district and sub-district level

Quality human resources from open market and from Govt.

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Accountability

Extensive use of I.T for transparency and real time monitoring

Databases of S.H.Gs and members Link with BPL data base Accountability Systems

• Regular meetings of S.H.Gs and federations – financial transactions read out in the meeting

• Social audit for transparency and accountability

RESULTS MONITORING Computerised MIS : submission and sanction of

proposals and online monitoring – centre to states to districts

Periodic monitoring by teams of experts visiting states

Baseline and impact evaluation by independent agencies

Large scale independent study – panel data - monitoring same households, once a year over 10 years

NRLM implementation

Implementation:Process intensive – hence phased

implementationIntensive implementation starts with 10%

blocks in the country – they are developed as resource blocks.

Social capital from the 1st phase blocks enables organic scaling in the rest of the blocks in a phased manner – all 6000 blocks in 7 years 32

NRLM - ACTION TAKEN BY MoRD

• Framework for Implementation prepared.• States to prepare their action plans ( State

perspective plan and Annual action plan)• Funds for preparatory activities released• World Bank loan of $1.0 billion negotiated• Workshops held: preparation of state action plans,

Strategy in intensive and non-intensive blocks, procurement procedures, HR Policy and recruitment procedures

• Secretary’s letters to all C.S s – 3 times

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Transition from SGSY to NRLM

Basic requirement for states:• State Govt. approval for setting up of a society or using

an existing society• Setting up of a State Society• Appointment of a full time CEO• Recruitment of professionals at SPMU and Govt

approval for recruitment in the first phase districts• Preparation of SPIP

SGSY will cease to exist after 31st December, 2011

Progress under NRLM - Setting up of SocietySRLM formed SRLM formed SRLM to be

formed by Sep. 2011

SRLM to be formed after Sep. 2011 (by Dec. 2011)

• Andhra Pradesh

• Bihar• Gujarat• Kerala• Orissa• Tamil Nadu• Madhya

Pradesh• Rajasthan

• Puduchery• Punjab• Haryana• Himachal

Pradesh• Tripura • Sikkim

• Assam• J&K• Karnataka• Maharashtra• West Bengal• Chhatisgarh• Jharkhand• Uttarakhand• Meghalaya

• Uttar Pradesh• Nagaland• Mizoram• Manipur• Arunachal

Pradesh• Andaman &

Nicobar• Daman & Diu• Dadra&NH• Goa• Lakshadweep

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NRLM Progress – Deputing CEO

Full time CEO An in-charge Officer is working

• Andhra Pradesh• Bihar• Gujarat• Kerala• Madhya Pradesh• Odisha• Rajasthan• Tamil Nadu

• Chattisgarh• Puducherry • Sikkim• Punjab• Tripura

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N.R.L.M launched on June 3rd at Banswara, Rajasthan

Issue: Suitable Name for NRLM

• Aajeevika

• Mahila Shakti • Swavalamban • Grama Shakti, • Mahila Swashakti • Samridhi• Mahila Kranti • Sampoorn• Sanjeevani

• Abhyodaya • Jana Jagriti • Swa Shakti• Ujwala • Roshni • Swarna Bharat • Aalok, • Bhagyashree • Abhilasha• Biswas• Navodaya• Jiwan Aadhar• Swachetna

Issue: Suggested Names for NRLM

Issue: setting up of committees

N.R.L.M Advisory committee headed by Minister, RD

N.R.L.M Co-ordination committee headed by Secretary, RD

N.R.L.M Empowered committee – for approving state action plans

Issue: dedicated support structures

• Dedicated support structures a must to trigger social mobilisation, institution building of the poor, and livelihoods promotion

Poor should not be served poorly• Best talent should work for the poor• Working for the poor should be seen as an

attractive career option• Govt servants should not think that they have

been punished, when they are posted to N.R.L.M• Serious mismatch between outlay for programme

funds and funding support costs

Issue: dedicated support structure

• Present provision of administrative cost is 5% of program fund (excluding placement linked skill development and RSETI component) – is a serious constraint

• Professional support of multi-disclinary teams, drawn from the open market and from the Government is essential.

• Good and dynamic HR policy ( Compensation and other terms) to attract and retain the best

• HR policy benchmarked with the best in the market

Issue: dedicated support structure• National level – EFC has not agreed to the

Ministry’s request for setting up a National level society for managing N.R.L.M

• However need for a dedicated society at the national level exists – this will reduce the learning curve for the states

• This unit will shrink when states pick up• Full time Mission Director – essential. At present

JS, S.G.S.Y is also the Mission Director• Need for recruiting dedicated manpower, by

paying them market rates for development professionals

Issue: dedicated support structure

• State level – except for A.P, T.N and Bihar – problems in each state as far as manning of the missions is concerned

• This is a serious issue in most of the states

Issue: target group of N.R.L.M

• Target group for N.R.L.M: Present N.R.L.M formulation - only those categorised as BPL.

• In view of large exclusion errors in the present BPL list, what should be the target group under N.R.L.M

• 2011 BPL enumeration - many of the previous errors are expected to be fixed.

Issue:Target group• Two formulations:

1. All those who are not falling under automatic exclusion

2. BPL list, plus, – All those groups eligible under Category IV

MGNREGS works: SC/STs, beneficiaries of land reforms, beneficiaries of Indira Awas Yojana, small farmers or marginal farmers as defined in the Agriculture Debt Waiver and Debt Relief Scheme, 2008

– Worked in MGNREGS – 30 days – for the last 2 years

Issue: Financial inclusion – a serious challenge

Poor performance of banks in lending to the rural poor, including S.H.Gs. Innovations required:

• NBFC – State Govt, banks and NABARD – for exclusively lending to S.H.Gs and S.H.G Federations

• Mature S.H.G federations to become CFIs – community owned financial institutions ( Mahila banks)

Issue: Financial inclusion

• National bank for women S.H.Gs – essential to focus on the issues of rural poor women

Issue: Financial inclusion

• Interest subvention on the same lines as ‘crop loans’ – to be taken with Finance Ministry ( DFS)

• Support states to set up their own NBFC s to finance S.H.Gs and S.H.G federations exclusively – to be taken up with Finance Ministry (DFS)

Issue: subsidies and administration of subsidies

At present N.R.L.M provides for the following subsidies:1. Revolving fund2. Capital subsidy3. Interest subsidy

Restructuring the first 2 subsidies in view of the negative experiences of S.G.S.Y. Subsidies should strengthen the institutional architecture and not weaken them

Issue: Role of subsidies and administration of subsidies

Who will administer the subsidies: desirable to delink subsidy administration from DRDAs

• To make DRDAs focus on building quality institutions of the poor

• To create a level playing field for all S.H.Gs and S.H.G federations to access grants – whether they are promoted by N.G.Os, DRDAs or banks

• Alternative mechanisms: Banks, NABARD ?

Issue: Placement linked skill development programme

• To achieve the target of 1 crore job opportunities for rural poor by the end of 12th Five Year Plan

• Present allocation is pegged at 15% of N.R.L.M outlay – this needs to be lifted

• This needs to be lifted and we should be funded for creating 1.0 crore jobs for BPL youth

Strategy for IAP districts

Special focus on states with large tribal population and IAP districts

States to be advised to cover these districts under intensive N.R.L.M in the next 2 years

Support to N.G.Os already working in these districts Saturation approach – cover all families Formation of S.H.Gs and federations in all villages Creation of Social capital – S.H.G and federation

leaders, community resource persons, village para professionals

Institution building – IAP districts

Financial inclusion – a big challenge ?? Agriculture livelihoods – C.M.S.A strategy N.T.F.P livelihoods – with forest dept. Convergence – MG NREGS, N.R.L.M and

Forest dept funds Securing land rights of the tribals – para legal

approach Focus on youth – placement linked skill

development – special scheme to be taken up on the lines of the J&K SEE programme