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National Rural Livelihood Mission
Organizing and supporting the poor to come out of poverty
NRLM – The Background
• Started in June 2011 after SGSY restructuring. • Thrust on organizing the poor, at least Rupee one
lakh institutional credit, multiple livelihoods. • One woman from poor household – SHGs. • SHGs/Federation provide scale and scope. • Plan to cover all poor families by 2024-25. • 6-8 years of continuous support. • Professional manpower for capacity building. • Role of Community Resource Persons – poor out
of poverty organizing the poor to come out of it.
The Andhra Model - SERP
• Organize poor women into SHGs - saving.
• Provide continuous hand holding for 6-8 years
• Bring in professionals for capacity building.
• Bank credit linkage for supplementary livelihood – farm, non-farm, forest produce.
• Livelihood plan for households.
• Institutional credit minimum one lakh rupees
• Federation of SHGs – Village, GP, Block, District.
Financial & Capital Services
Human and Social Capital
(Leaders, CRPs, Community Para-
Professionals)
Dedicated Support
Institutions (Professionals,
Learning Platform M & E Systems)
Institutional Platforms of Poor
(Aggregating and Federating
Poor, Women, Small & Marginal Farmers, S.Cs and
S.Ts)
INNOVATIONS
Livelihood Services
Building Enabling Environment Partnerships and Convergence
NRLM Budget 2014-15 and 2015-16
(Rs. in Crore)
Sl. No Component
2014-15 2015-16
BE RE Release BE
1 NRLM (Gratnts-in-aid to State/UTs) 554.00 119.19 103.99 428.30
2 NRLP (World Bank supported project) 650.00 450.00 449.28 400.00
3 Interest Subvention (Category I - 150 Distri) 650.60 437.98 397.97 532.95
4 Interest Subvention (Category II - Remaining Distri) 620.40 140.00 126.00 102.75
5 MKSP 149.00 61.34 53.34 100.00
6 RSETI 100.00 35.34 31.89 40.00
7 Innovation 67.00 3.58 3.58 10.00
8 GOALS : Co-financing through D.S.S 10.00 10.00 10.00 10.00
9 Skills (Including Himayat) 728.00 571.49 569.28 540.00
10 PMRDF 40.00 30.00 30.00 40.00
11 DRDA Administration 400.00 305.00 305.00 255.00
12 Miscellaneous 31.00 22.50 22.36 33.00
13 Assistance from Special Climate Change Fund (SCCF) 13.00
Grand Total 4000.00 2186.42 2102.69 2505.00
Of total NRLM funds of 2500 crores
• 25% on interest subvention
• 15% on DRDA administration costs
• 25% on Skill Development (DDU – GKY)
• 25% on Grants in aid to States/NRLP – HR costs, CRPs and capacity building, RF and CIF.
• 2.63% on farm livelihoods under MKSP
• 1.5% on RSETIs – Bank supported training.
Revolving fund - Rs.10000 to Rs.15000 per SHG.
Community Investment Fund (CIF) to SHG federations to support
SHG members for livelihoods promotion and vulnerability
reduction (up to Rs.2.5 lakhs per SHG and Rs.25,000 per
member).
Capacity building of SHGs and their federations, SHG members
and other key functionaries ( up to Rs.7,500 per member)
Setting up/start up cost of SHGs, their federations (Rs.10,000 per
SHG)
Interest subvention to enable women SHGs to avail bank loans
(up to Rs.3 lakhs) at 7% per annum and at 4% per annum in 150
backward districts on prompt repayment.
NRLM- Financial Support
Number of States under NRLM – 28 +1 UT
Districts where implementation has started – 350
Number of blocks implementation is underway – 2639
Number of SHGs promoted – 21.7 lakhs
Households covered – 2.5 crore
In 56170 Gram Panchayats
In 1,42,505 villages
Number of Village federations formed – 1.3 lakh
Number of Cluster federations formed – 2829
NRLM – progress made so far
8
NRLM – The target 2013 -2022
• 8-10 Crore poor and vulnerable households organized into 0-90 lakh SHGs and their federations at village and cluster levels.
• Reach out to all 6,40,000 villages, 2,48076 Gram Panchayats, 6758 Blocks and 648 districts in 29 States and 5 UTs – 2013 – 2022 – in a phased manner.
• ELIMINATE POVERTY
10
*Overlap of some PIAs in YP states and AAP states. YP Projects include ROSHNI.
Approved Item
#
Candidates
Funds
PIAs involved
Cost / candidate
YP Projects
249
7.70 lakh
Rs.2,820 crore
124
Rs.36,664
AAP States
5 states
3.16 Lakh
Rs. 848.5 crore
322
Rs.26,852
Total
10.86 lakh
Rs.3,668 crore
385*
Rs.33,582
DDU-GKY since September 2013
Trades
11
Updated: 28 March 2015
Preparing a Gram Panchayat Integrated Poverty Reduction Plan
Suggestions for a possible framework for action
Situation Analysis
• Large number of initiatives of MoRD & MoDW&S for rural poor. MHRD and MoHFW have SSA and NHM. MWCD has ICDS.
• Many schemes being implemented with varying effectiveness. • SE&CC 2011 in final stages – excluded, mandatorily included and
relative deprivation households mapped. • Schemes for employment, housing, skills, roads, livelihoods,
drinking water, sanitation, watersheds, credit linkage, community mobilization, elementary education, primary health, nutrition, etc.
• Untied grants of Finance Commission. • There is no integrated poverty reduction plan – livelihood plan of
SHG members under NRLM limited to NRLM interventions. • Poverty is more than income poverty. Human poverty has to be
seen from a well-being and a human capability framework.
Need for an integrated poverty reduction approach
• If poverty is multi-dimensional, case for a simultaneous intervention as per the needs of the poor household – address education, health, nutrition, water, sanitation, housing, employment, skill, social mobilization, etc.
• If integrated poverty reduction plan for a household is part of a larger Gram Panchayat Poverty Reduction Plan for development and well-being, it can have positive consequences for households with poverty.
• Using SECC data, possible to identify households on the basis of deprivation – use of NPR Tin number for monitoring change over time.
The approach
• Start the planning process in 2015-16 under NRLM with the objective of preparing Gram Panchayat Poverty Reduction Plan and Integrated poverty reduction approach for household.
• All Panchayats taken up under NRLM to be pacesetters for this approach.
• SECC data as basis of planning and cross – checking in social mobilization phase.
• Conjunctive use of MoRD, MoDW&S, SA, NHM, ICDS and Panchayat untied grants( Rs. 488 per capita as per 14th Finance Comission)
The approach – 2
• Households for mandatory inclusion (Households without shelter, destitute, manual scavengers, PTGs, legally released bonded labourers) as top priority – 16.48 lakh households as per SE&CC.
• Households in excluded list ( 39.49% nationally with State variations) as very low priority.
• Households with deprivation on any of the 7 criteria ( only one room with kuchha walls and roof, no adult member, female headed household with no male adult member, disabled member and no able bodied member, SC/ST households, no literate above 25 years, landless households surviving through labour) as priority.
The approach - 3
• Conjunctive use of Panchayat grant – Rs. 488 per capita – will translate into Rs. 20 to 50 lakhs depending on GP population.
• As per 14th Finance Commission, basic grant intended to be used “ to improve the status of basic services including water supply, sanitation including septage management, sewerage and solid waste management, storm water drainage, maintenance of community assets, maintenane of roads, footpaths and street lighting, and burial and cremation grounds”.
The Approach – 4
• Link NRLM SHGs integrally with PRIs – for improving transparency, accountability and leakages in implementation.
• Organizations of poor holding the elected PRI accountable for the tasks to be carried out and money to be spent – more effective that post – mortem social audits. Making a structural change – recognizing SHGs of poor selected on the basis of objective SE&CC data instead of only the nebulous Gram Sabha.
• Focus on all women SHGs – addressing gender and social inequalities.
The Approach – 5
• Resource Teams under NRLM to facilitate interaction with education, health, nutrition, drinking water and sanitation sectors as well.
• Intra and inter Ministry convergence.
• Clear articulation of SE&CC data and its incorporation in selection criteria for programmes – Housing, DDY-GKY, etc.
• Household tracking for poverty reduction.
The Approach – 6
• Integrating MIS to focus on monitoring of poor households – NPR Tin number as identity.
• State led selection of Gram Panchayats for Integrated Poverty Reduction Plan.
• Capacity building teams from NRLM resources – ownership of States critical.
• Implement integrated plan from coming year.
• If approach found successful, cover all Gram Panchayats through a phased planning process.
The advantage
• Same set of financial resources will give better results.
• Households with poverty will get monitored over the years.
• Simultaneous support to poor household to address multi – dimensionality of poverty.
• Demonstrative impact of selected Gram Panchayats making a difference on other Panchayats.