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S-11051/27/NRLM (SVEP)/Part III
Government of India
Ministry of Rural Development
NRLM Division
2nd Floor, Core 5B,
India Habitat Centre, Lodi Road,
New Delhi - 110 003.
Dated 19th July, 2016.
OFFICE MEMORANDUM
Subject:- Minutes of the Empowered Committee (EC) held on 12th July, 2016 under the
Chairmanship of Shri Jitendra Shankar Mathur, Secretary (RD) for
consideration of various proposals under the Startup Village Entrepreneurship
Programme [SVEP] - reg.
The undersigned is directed to enclose a copy of the minutes of the meeting of
Empowered Committee (EC) held on 12th July, 2016 in Krishi Bhawan, New Delhi, for
consideration of proposal for the Startup village Entrepreneurship Programme (SVEP) under the
Chairmanship of Shri Jitendra Shankar Mathur, Secretary (RD), for kind information and
further necessary action.
(Rama Varma K)
Under Secretary to the Govt. of India
Tel :011-2467 4381
The State Mission Director,
State Rural Livelihoods Mission - Bihar, Gujarat, Haryana, Jammu & Kashmir, Jharkhand,
Madhya Pradesh, Uttar Pradesh and West Bengal.
Distribution:
1. Additional Secretary & Financial Advisor, Ministry of Rural Development, New Delhi.
2. Senior Adviser (RD), Niti Ayog, New Delhi.
3. Joint Secretary, Ministry of Small & Medium Enterprises, Udyog Bhawan, New Delhi.
4. Joint Secretary, Ministry of Textiles, Krishi Bhawan, New Delhi
5. Joint Secretary, Ministry of Tribal Affairs, Shastri Bhawan, Delhi.
6. Joint Secretary, Ministry of Women and Child Development, Shashtri Bhawan, New Delhi.
7. Director (Finance), Ministry of Rural Development, Krishi Bhawan, New Delhi.
Copy for information to:
1. PPS to Secretary (RD) and AS (RD) Krishi Bhawan, New Delhi.
2. PS to Joint Secretary (Rural Livelihood) and PA to Deputy Secretary (RL).
Minutes of the Empowered Committee for Approval
of Detailed Project Reports under the Start-up
Village Entrepreneurship Programme held on July
12, 2016 at 3:00 pm chaired by Secretary RD at
Unnati meeting room, Krishi Bhawan – New Delhi
List of Participants: The same is given as Annexure 1
Agenda:
1. Introduction to the Start-up Village Entrepreneurship Programme (SVEP) and current status.
2. Detailed Project Reports submitted by West Bengal SRLM for ‘Start-up Village Entrepreneurship
Programme’.
3. Detailed Project Reports submitted by Jharkhand SRLM for ‘Start-up Village Entrepreneurship
Programme’.
4. Detailed Project Reports submitted by Gujarat SRLM for ‘Start-up Village Entrepreneurship
Programme’.
5. Detailed Project Reports submitted by Madhya Pradesh SRLM for ‘Start-up Village
Entrepreneurship Programme’.
6. Detailed Project Reports submitted by Uttar Pradesh SRLM for ‘Start-up Village
Entrepreneurship Programme’.
7. Detailed Project Reports submitted by Jammu & Kashmir SRLM for ‘Start-up Village
Entrepreneurship Programme’.
8. Detailed Project Reports submitted by Haryana SRLM for ‘Start-up Village Entrepreneurship
Programme’.
9. Detailed Project Reports submitted by Bihar SRLM for ‘Start-up Village Entrepreneurship
Programme’.
10. Any other item with the approval of the chair.
Proceedings:
1. The Lead (Non-Farm Livelihoods) gave a background of SVEP and shared the current status
before EC. This included the key features of SVEP, stage of implementation, approval take for
funding norms previously, process followed for market potential, estimated enterprises and
estimated budget across 8 states.
2. All the 8 states presented their findings from the baseline survey and market potential study.
This included the information on blocks, the poverty context, current IB-CB structure, details on
existing enterprises and details of enterprises proposed to be established. This also included top
5-6 enterprises which will be supported, based on the three broad heads, a) Based on local
consumption, b) Based on local resources and c) Based on government schemes. The year-wise
budget and number of enterprises and total budgets was also shared.
3. The Secretary RD asked the states and the NROs to focus on promoting group
enterprises/collectives based on the value chain interventions on local resources, apart from
promoting the individual enterprises based on local consumption. He motivated the NROs to
play a greater role and exhibit their expertise in promoting the value chain intervention based
group enterprises. The states were asked to train and deploy some CRP-EPs specifically for
supporting these collectives/group enterprises.
Decisions Taken:
All the proposed blocks under SVEP across the 8 states have been approved in the EC as per the details
below:
S.no.
State District Block Total enterprises
Enterprises Year1
Total sanction Rs. Lakhs
Central share Rs. Lakhs
1st instalment to be released Rs. Lakhs (after adjusting the Rs.30 lakhs per block already released)
1 West Bengal Cooch Behar Dinhata-1 1,236 124 476.77 286.06 41.52
2 West Bengal S 24 Parganas Patharpratima 1,136 114 466.37 279.82 39.96
3 Jharkhand Ranchi Angara 1,200 350 468.00 280.80 40.20
4 Jharkhand W Singhbhum Khutpani 540 100 397.50 238.50 29.63
5 Jharkhand Simdega Kolibera 1,260 79 479.27 287.56 41.89
6 Jharkhand Pakur Littipara 1,233 118 473.50 284.10 41.03
7 Jharkhand W Singhbhum Manoharpur 1,350 200 488.60 293.16 43.29
8 Jharkhand Pakur Pakuria 1,208 165 470.90 282.54 40.64
9 Gujarat Dahod Garbada 1,671 105 521.98 313.19 48.30
10 Gujarat Panchmahal Ghoghamba 2,368 148 594.44 356.66 59.17
11 Gujarat Amreli Khamba 1,467 92 500.78 300.47 45.12
12 MP Sheopur Karahal 1,563 156 510.76 306.46 46.61
13 MP Barwani Rajpur 1,861 186 541.74 325.04 51.26
14 MP Dindori Samnapur 1,139 100 466.68 280.01 40.00
15 UP Mirzapur Chanve 1,712 107 526.25 315.75 48.94
16 UP Aligarh Tappal 2,370 148 594.64 356.78 59.20
17 J & K Kathua Basholi 1,547 97 509.10 458.19 84.55
18 J & K Ganderbal Lar 709 35 421.99 379.79 64.95
19 Haryana Bhiwani BawaniKhera 1,643 90 519.08 311.45 47.86
20 Haryana Mewat Tauru 1,343 84 487.89 292.73 43.18
21 Bihar Gaya Bodhgaya 2,382 500 595.90 357.54 59.39
22 Bihar Gaya Barachatti 1,380 345 485.70 291.42 42.86
23 Bihar Muzaffarpur Moraul 1,866 373 542.20 325.32 51.33
24 Bihar Muzaffarpur Musahari 2,279 450 585.10 351.06 57.77
TOTAL 36,463 4,266 12,125.14 7,554.41 1,168.60
Annexure I
List of participants:
Members of Empowered Committee (EC) chaired by Secretary (RD):
1. Sh. Jitendra Shankar Mathur, Secretary (RD), MoRD, Government of India (Chairman EC)
2. Sh. Atal Dulloo, Joint Secretary (RL), MoRD, Government of India
3. Manoj Jha, O/o DC (Handloom) M/o Textiles, [email protected], 23061643
4. Sh. SidhilSasi, Director (Finance), Ministry of Rural Development
5. Sh. T.C. Nautiyal, Deputy Secretary (Rural Livelihoods), Ministry of Rural Development,
Other participants including representatives from the State Government and NROs:
SI.No Name Organization and Designation Mail ID Phone No.
1 Sanjay Rana EDI-Ahemdabad [email protected] 9413976245
2 Dr SC Anand HSRLM,PD [email protected] 9888194707
3 Amit Lakha JSLPS PM [email protected] 8002300749
4 Jitendra Kumar JEEVIKA,BRLPS Bihar [email protected] 9771478313
5 Liby Johonson Kudumbashree NRO,COO [email protected] 9446525053
6 Darshan Kumar Project Manager-GLPC [email protected] 9442024420
7 ShoeabAbra J&K SRLM,SPM [email protected] 9797217478
8 AdilAshraj J&K SRLM ,SPM –Livelihoods [email protected] 9906563928
9 Nishi Kant Dixit UPSRLM,Lead Livelihoods [email protected] 7738708804
10 Dr Ashish Bhatnagar EDI-Ahmedabad [email protected] 9455277599
11 GautamMazumdar EDI-Ahmedabad [email protected] 9830505876
12 Nakul Ch. Manna SRLM West Bengal, Asst .Suptt of livelihoods
[email protected] 9432897009
13 Rajesh Gupta EDI of India Assc.Faculty [email protected] 9099011966
14 Dr Manoj Mishra EDI,Ahmedabad [email protected] 9925236164
15 Divya Singh EDI,Ahmedabad [email protected] 7573978984
16 ShL.M.Belwal CEO,MPSRLM [email protected] 9406808777
17 Dhirendra Singh SPM,Skill,MPSRLM [email protected] 8349901014
18 Tarun Beeli EDI, Ahmedabad [email protected] 9302481849
19 Dr.Farid Rizvi IMD UPSRLM [email protected] 9415169220
20 R.S.Rekhi Lead-Non -Farm [email protected] -
21 Divya Jain PE – Non Farm [email protected] -
Start-up Village Entrepreneurship Programme (SVEP)
National Rural Livelihoods Mission
EC meeting -12th July 2016
3 pm
SVEP – addressing Obstacles Faced by First Generation Entrepreneurs
Problems of Rural Start-ups
• Lack of business skills – feasibility, planning, customer handling etc.
• ‘Herd mentality’ - business feasibility not considered while starting an enterprise
• Poor accounting skills
• Lack of peer learning from similar entrepreneurs
• Lack of hand holding support post training
• Lack of any platform to support enterprise development in rural areas
SVEP is designed to create a model to help start and support new enterprises and support the existing ones . It aims to create an institutional platform to support
micro enterprise development in rural areas.
SVEP – Key Features
• NRLM resource / intensive block as unit of implementation
• Set up a Block Resource Centre for Entrepreneurship Promotion (BRC-EP)
• Create community cadres (CRP-EP) for training, business monitoring, and guidance, who’re empowered using training videos, software etc.
• First loan to be provided by the SHG using CIF. Help provide bank loans using community cadres and software supported credit history
• Beneficiaries may be male or female, SHG members or members of their families.
• All kinds of enterprises – in manufacturing , trading, services ; individual and group – to be promoted.
Target : To support 1.82 lakh entrepreneurs in 125 blocks in 29 states in 4 years
SVEP – Non Negotiables
1. Conduct a baseline and market potential study in every block
2. Decide the target number of enterprises to be supported only after these studies
3. Conduct market feasibility analysis for every enterprise supported
4. Provide hand-holding support to every supported enterprise for a minimum of 6 months after start-up
5. Selection of entrepreneurs to should be done in a transparent and fair manner. It should positively discriminate towards the poorest of the poor and the disadvantaged
6. Involve the local institutions like SHG’s federations and Gram Panchayat in the implementation (to benefit from convergence)
SVEP – Stage of implementation
1. 16 states and 46 blocks have been approved for Conducting baseline and market potential study.
2. 4 National Resource Organisations defined for SVEP – to support NRLM in implementation and making processes for rapid scale up.
3. The 4 NRO’s are - EDI Ahmedabad; Kudumbashree Kerala; OMPLIS –Enable – AP; National Academy of Rudseti, Bangalore
4. 8 out of the 16 states have submitted the DPR and are being put up to the EC for approval.
SVEP – EC Approval taken for funding norms
1. Unit costs per enterprise defined and approved by the SFC and EC. Maximum cost per block also approved by the SFC.
2. Unit costs approved were :
3. Fixed and variable costs were approved for defining budget per block, in case the number of enterprises are lesser than 2400.
Fixed cost per
block
Variable cost per
enterprise
Estimated
enterprises
Total variable
cost
Total cost per
block
₹ 34,828,800 ₹ 10,395 2,400 ₹ 24,948,000 ₹ 59,776,800
Unit cost per
enterprise
Estimated
enterprises
Total amount
per block
Total skilling cost ₹ 14,293 2,400 ₹ 34,304,000
Total CIF ₹ 9,591 2,400 ₹ 23,017,600
Total Admin cost ₹ 1,023 2,400 ₹ 2,455,200
Total cost / block (max. assuming 2400 ent) ₹ 24,907 2,400 ₹ 59,776,800
S.No ParticularsFixed Costs for
Block
Variable Cost
per Enterprise
Variable Cost
Per Block
@2,400
Enterprises
Total Cost Per
Block @2,400
Enterprises
Cost/ entre-
prenuer
As % of total
cost
1 Training of Community Institutions ₹ 1,000,000
2 Training and Capacity Building of CRP-EPs ₹ 700,000
3 Setting up of BRC-EP (incl all assets) ₹ 500,000
4 Working Capita l for BRC-EP for operating exp. ₹ 180,000
5 Baseline (including tablets for CRP-EPs) ₹ 1,000,000
6 Mentor and Block Support ₹ 2,976,000
7 Evaluation ₹ 500,000
8 Skill Building of Entrepreneurs ₹ 7,000 ₹ 16,800,000
9 Handholding Support by CRP-EP ₹ 3,395 ₹ 8,148,000
M&E and PIA Support Cost ₹ 34,304,000 ₹ 14,293 57%
Block RSETI Cost* (if applicable) ₹ 2,500,000 ₹ 1,042 4%
Funds CIF and Credit Guarantee Fund ₹ 23,017,600 ₹ 23,017,600 ₹ 9,591 39%
Admin Administrative Cost ₹ 2,455,200 ₹ 2,455,200 ₹ 1,023 4%
Total cost per block ₹ 34,828,800 ₹ 24,948,000 ₹ 59,776,800 100%
Total Per Enterprise ₹ 14,512 ₹ 10,395 ₹ 24,907 ₹ 24,907
As % of total cost 58% 42%
Training
& hand-
holding
SVEP – EC Approval taken for fixed and variable costs
Fixed and variable costs / block – impact on block and unit costs/enterprise
Figures in Rs.
No of
enterprises to
be supported Fixed costs Variable costs Total costs/block
Unit Cost/
enterprise
2400 ₹ 34,828,800 ₹ 24,948,000 ₹ 59,776,800 ₹ 24,907
2000 ₹ 34,828,800 ₹ 20,790,000 ₹ 55,618,800 ₹ 27,809
1600 ₹ 34,828,800 ₹ 16,632,000 ₹ 51,460,800 ₹ 32,163
1200 ₹ 34,828,800 ₹ 12,474,000 ₹ 47,302,800 ₹ 39,419
800 ₹ 34,828,800 ₹ 8,316,000 ₹ 43,144,800 ₹ 53,931
Fund Release Protocols approved under SVEP
Example of a project approved for Rs. 5 crore for a block
Centre share 60% 300 lakhs State share 40% 200 lakhs
Funds release protocols suggested for SVEP - per block
Instal-
ment Tranche When How much To be released by centre
Example
of 5 cr
project
As % of
centre
share
1
After in principle approval of
project Rs. 30 lakhs Rs. 30 lakhs 30
2
After submission and approval of
DPR
25% of project cost less
30 lakhs released as
advance
Central share (60%) of 25%
of project cost less 30 lakhs
released as advance 45
75 25%
2
Spending 60% of funds released +
meeting physical targets as
specified in DPR 50% of project cost
Central share of 50% of
project cost 150 50%
1
Spending 80% of funds released +
meeting physical targets as
specified in DPR 20% of project cost
Central share of 20% of
project cost 60 20%
2
Spending 100% of funds released +
meeting 100% physical targets as
specified in DPR 5% of project cost
Central share of 5% of
project cost 15 5%
75 25%
300 100%
1 Total 1st instalment
3 Total 3rd instalment
Total release by centre
Market potential estimation
The number of enterprises were estimated based on :
1.Local consumption of products and services
•Gross local consumption less gross local supply = Gap of local consumption
• The calculated gap adjusted downwards for buying preferences and credit based purchases
2.Local resources sold outside the village
3.Government spends in the village
Market potential estimation process followed
•Census of all the enterprises in the block.
• Sample survey of the enterprises in the block.
• Sample survey of HH in the block for consumption details.
• Focus Group Discussions – with SHG members about – Entrepreneurship – Inhibiting and facilitating factors/ Rates of interest / Mortality of existing enterprises/ Support required / Local resource based enterprises etc.
•Discussions with government officials for government schemes.
Market potential estimation process followed
•Based on the data collected from the surveys, estimating the number of enterprises possible in each category.
•Challenge and biggest gain would be enterprises around selling value added local produce to external markets.
•Need to track the establishment and growth of these enterprises (largely group enterprises), as these would be pilots worth scaling up.
The following slides showing summary of the projects presented by the states and discussed by the EC was presented at the end of the EC meeting.
Estimated enterprises (based on DPRs)
Margin
Margin
State Blocks
Total SVEP
enterprises
Local
Consumption
Support to
Existing
enterprises
Local
Resources
Govt.
Schemes
Avg.SVEP
enterprises
/block
West Bengal 2 2,372 1,553 593 55 171 1,186
Jharkhand 6 6,791 3,843 1,159 1,287 502 1,132
Gujarat 3 5,506 3,589 1,377 200 340 1,835
Madhya Pradesh 3 4,563 2,581 1,140 490 352 1,521
Uttar Pradesh 2 4,082 2,936 1,018 78 50 2,041
Jammu & Kashmir 2 2,256 1,388 527 185 156 1,128
Haryana 2 2,986 2,082 694 105 105 1,493
Bihar 4 7,907 4,876 1,885 875 271 1,977
Total 24 36,463 22,848 8,393 3,275 1,947 1,519
Project cost (based on DPRs)
Margin
Margin
State Blocks
Total SVEP
enterprises Total funds Centre share Centre share %
Unit cost /
enterprise
West Bengal 2 2,372 943.14 565.88 60% 39,761
Jharkhand 6 6,791 2,777.77 1,666.66 60% 40,904
Gujarat 3 5,506 1,617.20 970.32 60% 29,372
Madhya Pradesh 3 4,563 1,519.18 911.51 60% 33,293
Uttar Pradesh 2 4,082 1,120.89 672.53 60% 27,459
Jammu & Kashmir 2 2,256 931.09 837.98 90% 41,272
Haryana 2 2,986 1,006.97 604.18 60% 33,723
Bihar 4 7,907 2,208.90 1,325.20 60% 27,936
Total 24 36,463 12,125.14 7,554.26 33,253
Estimated Fund requirement (based on DPRs)
Margin
Margin
State Blocks
Existing
enterprises
Total
SVEP
Enterprises
Yr 1
SVEP
Enterprises
Yr 2
SVEP
Enterprises
Yr 3
SVEP
Enterprises
Yr 4
Total SVEP
Enter prises
West Bengal 2 9,720 238 1,067 712 355 2,372
Jharkhand 6 9,800 1,012 1,804 2,062 1,913 6,791
Gujarat 3 6,691 345 2,064 2,064 1,033 5,506
Madhya Pradesh 3 4,408 442 1,597 1,597 927 4,563
Uttar Pradesh 2 5,227 255 1,530 1,530 767 4,082
Jammu & Kashmir 2 2,638 132 850 850 424 2,256
Haryana 2 1,739 174 1,124 1,126 562 2,986
Bihar 4 13,275 1,668 2,390 2,440 1,409 7,907
Total 24 53,498 4,266 12,426 12,381 7,390 36,463
