Presentation on Swarnjayanti Gram Swarozgar Yojana (SGSY)/

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Presentation on Swarnjayanti Gram Swarozgar
Yojana (SGSY)/ National Rural Livelihoods Mission
(N.R.L.M)
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Structure of Presentation

• SGSY status
• Re-structuring S.G.S.Y into N.R.L.M
• NRLM Salient Features
• NRLM roll out status
• Issues

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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.

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S.G.S.Y - Status

• Main Achievements since inception
• 20 lakh BPL S.H.Gs covering 250 lakh Swarozgaris
• 152 lakh Swarozgaris assisted with bank credit
  subsidy
• Credit mobilization Rs.1100 crore in 1999-00 to
  over Rs.4450 crore in 2009-10
• Per capita investment Rs.17000 per beneficiary
  in 1999 to Rs. 31800 in 2009
• Skills and placement special projects About 2.31
  lakh beneficiaries have been trained 1.75lakh
  placed

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SGSY- Progress 2009-10 and 2010-11
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
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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
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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

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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)

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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

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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 accountability
• Community self reliance and self dependence

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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 teams
• Partnerships with experienced C.B.Os and resource
  state societies
• Similar strategy was followed in Bihar
• Eventually 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

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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

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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

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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

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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

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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.

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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

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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

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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 JK, IAP Districts (60),
  Minority concentrated districts and North East

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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.)

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 Trained Placed 22,000 18,000 18,000 14,500 80,000 55,000 1,40,000 1,10,000
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Special Skills and Placement Mission in JK

• Jk 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
  JK.
• 1 lakh JK 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

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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)

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convergence and partnerships

• Convergence institutions of poor provide a
  platform for convergence and optimisation of all
  anti-poverty programmes
• Linkages with PRIs
• Partnerships with N.G.Os and CSOs
• Partnerships 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

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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

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NRLM implementation

• Implementation
• Process intensive hence phased implementation
• Intensive 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

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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
• Secretarys 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

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Progress under NRLM - Setting up of Society
SRLM 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 JK Karnataka Maharashtra West Bengal Chhatisgarh Jharkhand Uttarakhand Meghalaya Uttar Pradesh Nagaland Mizoram Manipur Arunachal Pradesh Andaman Nicobar Daman Diu DadraNH 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
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Issue Suitable Name for NRLM

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

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Issue Suggested Names for NRLM

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

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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

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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

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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

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Issue dedicated support structure

• National level EFC has not agreed to the
  Ministrys 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

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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

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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.

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IssueTarget group

• Two formulations
• All those who are not falling under automatic
  exclusion
• 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

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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)

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Issue Financial inclusion

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

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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)

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Issue subsidies and administration of subsidies

• At present N.R.L.M provides for the following
  subsidies
• Revolving fund
• Capital subsidy
• 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

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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 ?

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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

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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

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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 JK SEE programme