VOLUME-1 - UGVS Data/ILSP Doc/PIM ILSP Jan'2013...Uttarakhand Parvatiya Aajeevika Sanvardhan Company Dehradun October 2012 IFAD/India: Integrated Livelihood Support Project, Uttarakhand-Project

International Fund for Agricultural Development Government of Uttarakhand

Integrated Livelihood Support Project IFAD Loan # 856-IN

PROJECT IMPLEMENTATION MANUAL

VOLUME-1

Central Project Coordinating Unit in Association with

Uttarakhand Gramya Vikas Samiti, Watershed Management Directorate &

Uttarakhand Parvatiya Aajeevika Sanvardhan Company Dehradun

October 2012

IFAD/India: Integrated Livelihood Support Project, Uttarakhand-Project Implementation Manual

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International Fund for Agricultural Development Government of Uttarakhand

Integrated Livelihood Support Project

PROJECT IMPLEMENTATION MANUAL VOLUME-1

Table of Contents

Fiscal Year .................................................................................................................... 7

Currency and Equivalents ............................................................................................. 7

Units and Conversions................................................................................................... 7

Abbreviations, Acronyms and Glossary ......................................................................... 8

Map of Uttarakhand .................................................................................................... 10

ILSP Blocks and Districts ............................................................................................ 11

INTRODUCTION ............................................................................................................... 12

A. Purpose and Contents of PIM ..................................................................................... 12

B. Documents Referred ................................................................................................... 12

PART ONE: ILSP IMPLEMENTATION ............................................................................. 13

Chapter-1.1: THE FIRST STEPS ........................................................................................ 14

A. Rural Development Department / CPCU..................................................................... 14

B. Uttarakhand Gramya Vikas Samiti .............................................................................. 14

C. Watershed Management Department Society .............................................................. 15

D. UPASAC .................................................................................................................... 15

E. Shared Activities ......................................................................................................... 16

Chapter-1.2: PROJECT SUMMARY .................................................................................. 18

A. Background, Location & Project Objective ................................................................. 18

B. Project Components .................................................................................................... 19

C. Target Groups and Targeting ...................................................................................... 19

D. Implementation and Coordination Arrangements ........................................................ 20

E. Project Costs, Financing and Benefits ......................................................................... 20

Annex-1.2.1 Logical Framework Matrix of UGVS (Components-1 & 4) .......................... 22

Annex-1.2.2 Logical Framework Matrix of WMD (Component-2) ................................... 25

Annex-1.2.3 Logical Framework Matrix of UPASAC (Components-3) ............................. 27

Chapter-1.3: PROJECT COST ESTIMATES ...................................................................... 30

Annex-1.3.1: Detailed Cost Estimates (UGVS & UPASAC) ............................................. 32

Annex-1.3.2: Detailed Cost Estimates (WMD) ................................................................. 59

Annex-1.3.5 Summary Cost Estimates .............................................................................. 68

Chapter-1.4: PROJECT ORGANISATION AND MANAGEMENT ...................................... 76

A. Introduction ............................................................................................................... 76

B. Project Management Structure .................................................................................... 76

C. Project Coordination Arrangements ............................................................................ 78


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D. Implementation Agencies ........................................................................................... 79

E. Partner NGOs ............................................................................................................ 81

F. Community-based Organisations ................................................................................ 83

E. Implementation Responsibilities ................................................................................. 84

Annex-1.4.1: Project Management Structure of ILSP....................................................... 86

Annex-1.4.2: Organisational Structure of UGVS ............................................................. 87

Annex-1.4.3: Organisational Structure of UGVS DPMOs ................................................ 88

Annex-1.4.4: Organisational Structure of UPASAC ......................................................... 89

Annex-1.4.5: Organisational Structure of WMD Society .................................................. 90

Annex-1.4.6: Responsibilities of CPCU Staff ................................................................... 91

Annex-1.4.7: Responsibilities of UGVS PMU staff ........................................................... 95

Annex-1.4.8: Responsibilities of District PMO staff of UGVS 116

Annex-1.4.9: Responsibilities of UPASAC staff 128

Annex-1.4.10: Role and Responsibilities of WMD Staff .................................................. 135

Chapter-1.5: PARTNER AGENCY SELECTION PROCEDURES ..................................... 138

A. Need for the services of Partner Agencies ................................................................. 138

B. Selection Criteria of Partner Agencies ....................................................................... 139

C. Selection Criteria of ULIPH Federations ................................................................... 139

D. Selection Criteria of Divisional Support Agency (WMD) ......................................... 140

E. Request for Proposal: sequences & steps ................................................................... 140

Annex-1.5.1: General TOR for hiring Partner Agencies for UGVS ............................ 143

Annex-1.5.2: TOR for FNGO for WMD ..................................................................... 149

Annex-1.5.3: Divisional Support Agency for WMD: Terms of Reference .................. 159

Annex-1.5.4: List of ULIPH Federations ................................................................... 164

Chapter-1.6: PROCUREMENT PROCEDURES .............................................................. 166

A. Procurement Regulations for ILSP ............................................................................ 166

B. Borrower‟s Responsibilities ...................................................................................... 166

C. Procurement Planning ............................................................................................... 169

D. IFAD Monitoring & Review ..................................................................................... 169

E. Community Level Procurement ................................................................................. 171

F. ILSP Procurement Procedures ................................................................................... 171

Annex-1.6.1: Proposed Relaxation of UPR-2008 for ILSP ............................................. 174

Annex-1.6.2: Community Procurement by PG, VPG & LC ............................................ 180

Annex-1.6.3: Community Procurement through GP (WMD) .......................................... 200

Annex-1.6.4. Inputs for 18 month Procurement Plan for UGVS & UPASAC .................. 214

Annex-1.6.5. Inputs for an 18 month Procurement Plan for WMD ................................. 222

Annex-1.6.6. Procurement Template: Goods................................................................. 224

Annex-1.6.7. Procurement Template: Works ................................................................. 225

Annex-1.6.8. Procurement Template: Services and Consultancy .................................... 226

Chapter-1.7: FINANCE MANAGEMENT ......................................................................... 227

A. Financial Management Arrangements ....................................................................... 227

B. Funds Flow ............................................................................................................... 228

C. Support from IFAD ................................................................................................... 229

D. Audit ........................................................................................................................ 229

E. Withdrawal Applications ........................................................................................... 230

F. Eligible Expenditures ................................................................................................ 231

G. Disbursement............................................................................................................ 232

H. Accounting ............................................................................................................... 239


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I. Asset Management ..................................................................................................... 235

J. Financial Statements .................................................................................................. 235

K. Annual Audit and Internal Audits ............................................................................. 236

L. Project Completion ................................................................................................... 238

Annex-1.7.1: Sample of Project Audited Financial Statements ....................................... 239

Annex-1.7.2: ToR for External Auditor- UGVS ............................................................. 251

Annex-1.7.3: ToR for External Auditor- UPASaC ........................................................ 254

Annex-1.74: ToR for Internal Audit ............................................................................. 258

Chapter-1.8: MONITORING & KNOWLEDGE MANAGEMENT ...................................... 262

A. Planning Process....................................................................................................... 262

B. Monitoring & Evaluation System .............................................................................. 262

C. Project M&E Framework .......................................................................................... 263

D. Annual Outcome Survey ........................................................................................... 264

E. Impact Annual Outcome Surveys .............................................................................. 265

F. RIMS Indicators ........................................................................................................ 266

G. Special Studies ......................................................................................................... 268

H. M&E Capacity Building ........................................................................................... 268

I. Technical Assistance for M&E ................................................................................... 269

J. Management Information System (MIS) .................................................................... 270

K. Reporting & Communication .................................................................................... 270

L. Learning System ....................................................................................................... 271

M. Knowledge Management.......................................................................................... 271

Annex-1.8.1 M&E Matrix – Component I - UGVS ....................................................... 273

Annex- 1.8.2 M&E matrix – Component 2 (WMD)..................................................... 279

Annex-1.8.3 M&E matrix – Component 3 Livelihood Finance -(UPASAC) ................... 282

Annex-1.8.4: Annual M&E Activities Calendar ............................................................. 283

Annex-1.8.5: Participation of Stakeholders in the Annual Leaning Process ................... 284

Annex-1.8.6: Guidelines for KAP Survey ....................................................................... 285

Annex-1.8.7: TOR for Impact evaluation studies ............................................................ 291

Annex-1.8.8: Indicators for the Annual Outcome Survey................................................ 295

Annex-1.8.9: RIMS reporting Table for ILSP ................................................................. 296

Annex-1.8.10: ILSP Knowledge Management Strategy .................................................. 299

Chapter-1.9: AWP&B PREPARATION ............................................................................ 300

A. Introduction .............................................................................................................. 300

B. Model Outline of AWP&B ....................................................................................... 301

C. Model Outline for Progress Report............................................................................ 305

Annex-1.9.1: Model Template for AWP&B for UGVS & UPASAC ................................. 308

Annex-1.9.2: Model Template for AWP&B for WMD .................................................... 319

PART-TWO: FOOD SECURITY COMPONENT ............................................................... 324

Chapter-2.1: FOOD SECURITY & SCALING UP ............................................................ 325

A. Objective and Purpose .............................................................................................. 325

B. Key Success Factors ................................................................................................. 325

C. Description of Activities ........................................................................................... 325

D. Implementation arrangements ................................................................................... 328

E. Partner Agencies ....................................................................................................... 330

E. Outcome Indicators ................................................................................................... 331

Annex-2.1.1: Number of Target Households, LCs and Federations ................................ 332

Annex-2.1.2: General TOR for UGVS Partner Agencies (Social) .................................. 333

Annex-2.1.3: General TOR for UGVS Partner Agencies (Technical) ............................ 346


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Annex-2.1.4 Sub-Sector Identification Study: Draft TOR ............................................... 367

Annex-2.1.5: Option Menu under Food Security Improvement Plan (FSIP) ................... 372

Annex-2.1.6: Option Menu under Agri-business Up-scaling Plan (AUP) ....................... 374

Chapter-2.2: MARKET ACCESS ...................................................................................... 378




D. Outcome Indicators .................................................................................................. 381

Annex-2.2.1 Guidelines for Value Chain Studies ............................................................ 383

Annex-2.2.2 Strategy for Market Access ........................................................................ 389

Chapter-2.3: INNOVATIONS AND MARKET LINKAGES ............................................... 392




D. Key Roles of Partner Agencies ................................................................................. 393


Annex-2.3.1: Proposal for a Citrus Action Research Programme .................................. 394

Annex-2.3.2 Guidelines for Farmer Marketing Education.............................................. 401

Annex-2.3.3: Bamboo & Natural Fibre-based Enterprises Development ....................... 405

Annex-2.3.4: VPKAS Proposal for Sustainable Farming Practices ................................ 413

Chapter-2.4: VOCATIONAL TRAINING .......................................................................... 420



C. Skill Development in Uttarakhand ............................................................................ 420

D. Description of Activities ........................................................................................... 421


Annex-2.4.1: Proposal from Manipal-City & Guilds ...................................................... 423

Chapter-3.1: LIVELIHOOD FINANCING ........................................................................ 425




D. Implementation Arrangements .................................................................................. 429

E. Sustainability ............................................................................................................ 430

Annex-3.1.1: Livelihoods Financing Arrangements ....................................................... 431

Annex-3.1.2: SKG Financial Services ............................................................................ 432

Annex-3.1.3: Aajeevika Livelihood Financing Schemes ................................................. 436

Annex-3.1.4: MOU with Uttarakhand Gramin Bank ...................................................... 439

PART-THREE: GUIDES & GUIDELINES ........................................................................ 493

Chapter-4.1: DRAFT FINANCE & ADMINISTRATION MANUAL FOR UGVS ............... 443

Chapter-4.2: DRAFT RFP FOR PARTNER AGENCY ...................................................... 481

Section 1: Letter of Invitation ........................................................................................ 482

Section 2: Instructions to FNGOs and Partner Agencies ................................................ 483

Instructions to FNGOs- Data Sheet................................................................................ 493


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Section 3: Technical Proposal - Standard Forms ............................................................ 499

Section 4: Terms of Reference ....................................................................................... 499

Section 5: Standard Form of Contract ............................................................................ 505

General Conditions of Contract ..................................................................................... 508

Special Conditions of Contract ...................................................................................... 517

List of Appendices ........................................................................................................ 525


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Fiscal Year

1 April to 30 March

Currency and Equivalents

Currency Unit = Indian Rupee (INR)

May 2011 USD 1.00 = INR 45.00 Sept 2012 USD 1.00 = INR 55.00

Units and Conversions

1 kilogram (kg) = 2.204 pounds (lb)

1 000 kg = 1 metric tonne (t)

1 quintal = 100 kg

1 kilometre (km) = 0.62 miles (mi)

1 metre (m) = 1.09 yards (yd)

1 square metre (m2) = 10.76 square feet (ft2)

1 acre (ac) = 0.405 hectare (ha)

1 decimal = 0.01 acre

1 hectare (ha) = 2.47 acres

1 Lakh = 100,000

10 Lakh = 1 million


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Abbreviations, Acronyms and Glossary

AGMARK Agricultural Marketing Certification Agency APEDA Agricultural and Processed Food Products Exports Development Authority APMC Agriculture Produce Market Committee AUP Agribusiness Up-scaling Plan AWP/B Annual Work-Plan / and Budget BAIF Bharatiya Agro Industries Foundation (NGO) BC/BF Business Correspondent, Business Facilitator BCR Benefit cost ratio BPL Below Poverty Line CAMPA Compensatory Afforestation Fund Management and Planning Authority CAP Centre for Aromatic Plants CEO Chief Executive Officer CPCU Central Project Coordinating Unit CPD Chief Project Director CPM Country Programme Manager DSA Divisional Support Agency EC European Commission EIRR Economic Internal Rate of Return FAO Food and Agriculture Organisation of the United Nations FGD Focus Group Discussion FIG Farmer Interest Group FIRR Financial Internal Rate of Return FRDC Forest and Rural Development Commissioner FM Financial Management FNGO Field NGO FSIP Food Security Improvement Plan FWM Fresh Whole Milk FY Financial/Fiscal Year GBPUAT G B Pant University of Agriculture and Technology GDP Gross Domestic Product GC General Conditions (for IFAD loans and grants) GIZ German Development Agency GoI Government of India GoUK Government of Uttarakhand GP Gram Panchayat GVO Gross Value of Output HARC Himalayan Action Research Centre HDI Human Development Index HH Household ICIMOD International Centre for Integrated Mountain Development ICO India Country Office (of IFAD) IFAD International Fund for Agricultural Development IFC International Finance Corporation IFPRI International Food Policy Research Institute IHD Institute of Human Development ILRI International Livestock Research Institute ILSP Integrated Livelihoods Support Project IP Implementation Partner ITI Industrial Training Institute KAP Knowledge Attitude Practice KGFS Kshetriya Grameen Financial Services KM Knowledge Management LC Livelihood Collective MAPs Medicine and Aromatic Plants M&E Monitoring and Evaluation MIS Management Information System MOU Memorandum of Understanding MTR Mid Term Review MWS Micro Water Shed NRLM National Rural Livelihoods Mission


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MSL Mean sea level NDDB National Dairy Development Board NGO Non-Government Organisation NHM National Horticulture Mission NPV Net Present Value NRLM National Rural Livelihoods Mission OSV Off-season Vegetables PG Producer Group PD Project Director PFS Project Financial Statement PIA Project Implementing Agency PIM Project Implementation Manual PMC Project Management Committee PME Participatory M&E PMU Project Management Unit PNGO Partner NGO PSC Project Steering Committee RED Regional Economic Development (project supported by GIZ) RDD Rural Development Department RIMS Results and Impact Monitoring System SC Scheduled Castes SHG Self Help Group SOE Statement of Expenditure ST Scheduled Tribes SVCC Social Venture Capital Company TDC Terai Development Corporation UDWMP Uttarakhand Decentralised Watershed Development Project (Gramya) UGVS Uttarakhand Gramya Vikas Samiti (Ajeevika) ULIPH IFAD-supported Uttarakhand Livelihood Improvement Project for the Himalayas UOCB Uttarakhand Organic Commodity Board UN United Nations UPASAC Uttarakhand Parvthiya Ajeevika Samvardhan Company UPR Uttarakhand Procurement Rules US United States USA United States of America VG Vulnerable Group VP Van Panchayat (community forest) VPG Vulnerable Producer Group VPKAS Vivekanand Parvatiya Krishi Anusandhan Shala WA Withdrawal Application WB World Bank WFP World Food Programme WMD Watershed Management Directorate WWMC Water and Watershed Management Committee


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Map of Uttarakhand


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ILSP Blocks and Districts


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INTRODUCTION

A. Purpose and Contents of PIM

The purpose of this Programme Implementation Manual (PIM) is to assist the staffs of the Project Management Units (CPCU, PMU & DPMU) and PNGOs and other participating agencies, which are responsible for planning, implementation, supervision and monitoring of the ILSP. The PIM will enhance the overall skill and understanding of the PMU and the stakeholders. It is also intended to provide guidance in improving the overall management information systems and M & E processes. The PIM for the ILSP is presented in TWO VOLUMES: Volume-I PIM for UGVS and UPASAC and Volume –II PIM for the Watershed Management Directorate. Each Volume has THREE Parts as detailed below.

Part-ONE contains a nutshell of the ILSP start up activities, Project Summary, detailed cost estimates, arrangements for implementation, project management structure, procurement, procurement plan, finance and accounts, monitoring and evaluation and procedures for the preparation of annual work plan and budgets. This Part is therefore, common to both Volumes and all the three PIAs.

Part-TWO deals with summary features of respective individual project components.

Part-THREE contains Guides and Guidelines that are critical for the implementation of the Project

B. Documents Referred The following documents were consulted in the preparation of the PIM: IFAD Appraisal Report and its Working Papers IFAD Guidelines for Procurement and Handbook on Procurement 2010 IFAD Guidelines for Loans and Grants Administration Draft PIM-2011 Project Finance Agreement Minutes of Meeting of 16 May 2012 Notes exchanged between ILSP & ICO This PIM has been prepared before any project activities are taken for implementation but after loan negotiation. As experience is gained in implementation; the PIM may have to be updated with the support of Government Orders and Regulations and the recommendations of IFAD Supervision missions. The PIM is a dynamic document. It should be updated as and when changes take place in concept, approach, targets, units and unit costs etc and should be forwarded to IFAD for record but after having had it approved by appropriate authorities.


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PART ONE: ILSP IMPLEMENTATION

Chapter-1.1: ILSP Implementation – First Steps Chapter-1.2: Project Summary Chapter-1.3: Project Cost Estimates Chapter-1.4: Project Organisation and Management Chapter-1.5: Partner Agencies Selection Procedures Chapter-1.6: Procurement Procedures Chapter-1.7: Finance Management Chapter-1.8: Project Monitoring and Evaluation Chapter-1.9: Preparation of Annual Work Plan and Budget


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Chapter-1.1: THE FIRST STEPS

A. Rural Development Department / CPCU

Facilitate and expedite Government Order with regard to ILSP so as to proceed further by the respective Project Implementing Agencies (PIAs), namely UGVS, WMD and UPASAC

Set up Project Steering Committee and call for its first meeting and nominate members for the Project Management Committee

Facilitate setting up of PMC

Adopt draft PIM and forward it IFAD for record

Organise start up workshop in Dehradun

Coordinate functional responsibilities between the PIAs and agree on M&E arrangements, preparation of AWP&Bs, preparation and submission of withdrawal applications to IFAD, arrangements for annual audit etc

Finalise staff TOR for CPCU, seek PMC approval and proceed with recruitment or deployment

Ensure that ILSP is included as a budget line in the state budget and seek release of funds from GoUK

Coordinate the roles and responsibilities of PIAs and seek timely reports from them for further processes

B. Uttarakhand Gramya Vikas Samiti

Call for a meeting of the BoD of UGVS and amend the byelaws if any in ILSP context. Register the amended byelaws with appropriate authority and provide a copy of the approved byelaws to IFAD.

Organise and participate in the state level ILSP launch work

Finalize Personnel Policies and seek the approval of PMC and forward a copy to IFAD.

Finalize and adopt the Financial Regulations consistent with UPR 2008 and seek PSC approval and forward a copy to IFAD.

Finalise TOR for the approved list of staff, make arrangements for their recruitment including advertising in regional and local news papers and web sites and deployment using approved procedures and processes

Finalise RFP on the basis of comments received from IFAD for the recruitment of the services of FNGOs, partner agencies, technical NGOs etc

Prepare draft AWP&B and seek IFAD comments and place it before the BoD for approval

Prepare draft 18-month procurement plan in consistence with amended UPR 2008 for the ILSP, seek comments from IFAD and place it before the Board for approval

Make arrangements for the procurement of vehicles and office equipment as per list approved and contained in the procurement plan and using approved procurement methods

Prepare disaggregated AWP&B based on approved plan for each district.

Arrange staff training and orientation with regard to the concepts and approaches of the ILSP

Facilitate training and orientation to the staff of FNGOs, partner agencies and technical NGOs

Identify and finalise selection of project villages and Blocks

Organise orientation workshops for the district staff and devolve them well-defined roles and functions together with timelines for achievements

Engage the services of specialised agency for conducting baseline survey in year 1


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Ensure that the project MIS in place and made functional with required staff support and other facilities so that M&E functions well

Finalize reporting formats and establish a system of data collection and analysis for periodic reporting to the project management.

Ensure that Tally accounting software is installed and the staff are trained

C. Watershed Management Department Society

Expedite the process of the Society formation and complete all administrative and legal formalities: approval of byelaws and registration and forward a copy of byelaws to IFAD


Finalise RFP on the basis of comments received from IFAD for the recruitment of the services of FNGOs and DSAs.

Seek fund support from the Government

Finalise the TOR for the recruitment of staff consultants, send them for IFAD comments and seek Board approval

Complete the process of recruitment of staff consultants using approved procedures and package of remuneration

Prepare draft AWP&B and seek IFAD comments and place it before the General Body for approval

Prepare draft 18-month procurement plan in consistence with amended UPR 2008 for the ILSP, seek comments from IFAD and place it before the Board for approval

Make arrangements for the procurement of vehicles and office equipment as per list approved and contained in the procurement plan and using the approved procurement methods

Prepare disaggregated AWP&B based on approved plan for each Division.


Facilitate training and orientation to the staff of FNGOs and DSAs

Identify and finalise selection of micro-watersheds for the ILSP

Organise orientation workshops for the Divisional staff and devolve them well-defined roles and functions together with timelines for achievements

Engage the services of specialised agency for conducting baseline survey in year 1

Ensure that the project MIS in place and made functional with required staff support and other facilities

Ensure that Tally accounting software is installed and the staff are trained

D. UPASAC


Finalise the TOR for the recruitment of staff, seek Board approval and take steps for their recruitment

Complete the process of recruitment of staff consultants using approved procedures and package of remuneration

Prepare draft AWP&B jointly with UGVS, seek IFAD comments and place it before the BoD for approval

Prepare draft 18-month procurement plan jointly with UGVS, seek comments from IFAD and place it before the Board for approval


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Make arrangements for the procurement of vehicles and office equipment as per list approved and contained in the procurement plan and using the approved procurement methods and procedures

Prepare disaggregated AWP&B based on approved plan for each district.


Facilitate training and orientation to the staff of RFIs and banks and develop appropriate financial products for the PGs, VPGs and LCs

Enter in to more MOUs with banks and MFIs to expand the credit access to the target groups and identify appropriate SMEs for support

Identify and finalise working arrangements with WMD Society for accelerated flow of credit

Organise orientation workshops for the Rural Finance Coordinators together with the staff of UGVS and WMD and devolve them well-defined roles and functions

Along with UGVS, engage the services of specialised agency for conducting baseline survey in year 1

Ensure that the project MIS in place and made functional with required staff support and other facilities

E. Shared Activities

Procurement of the Services of NGOs & other Partner Agencies:

Send RFP for procurement of DSAs and FNGOs to IFAD for approval.

Establish an Evaluation Committee for evaluating Expression of Interest (EOI) for short-listing DSAs and FNGOs and thereafter to conduct evaluation of bids.

Advertise EOI for procurement of the services of DSAs and FNGOs in the Regional and local newspapers and also on the websites.

Conduct an evaluation of EOIs and prepare a shortlist of DSAs and FNGOs and obtain approval from IFAD.

Circulate RFP to shortlisted DSAs and FNGOs and seek Full Technical and Financial Proposals them

Evaluate the bids of DSAs and send detailed evaluation report to IFAD for approval.

Evaluate the bids of FNGOs and send detailed report to IFAD for approval.

Upon receiving approval from IFAD, place the same before BoD or General Body and finalize selection of DSAs and FNGOs.

Sign contracts with DSAs and FNGOs.

Ensure that FNGOs recruit staff as specified in the RFP and establish Block/Cluster level offices.

DSAs to establish divisional level technical team as specified in the RFP.

Income Generating Activities: Prepare detailed work plan for Income Generating Activities including identified beneficiaries.

Ensure minimum scale of operations for each of the activity to ensure provision of technical assistance.

Ensure training of beneficiaries for each of selected activity.

Based on the approved AWPB release funding allocated to Income Generating Activities.

Vocational Training: Advertise an Expression of Interest from interested agencies to implement vocational training

related activities.


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Short-list the agencies and sign a MOU with qualified agencies for vocation training with handholding/placement.

Select boys and girls ( both from UGVS & WMD project areas) to undergo long-term vocational training in any institutes in Uttarakhand and provide them with scholarship.

Monitoring and Evaluation and Knowledge Management: Engage an Agency specialized in M&E for conducting Baseline and impact assessment

survey and undertake these surveys during the first year of the project

Finalize reporting formats and establish a system of data collection and analysis for periodic reporting to the project management.

Conduct annual outcome survey in collaboration with DPMUs/DPDs and FNGOs every year starting from second project year and submit the report by end January every year.

Undertake all reporting requirements as specified by the project and participate in the baseline survey, impact assessment surveys and annual outcome surveys and participatory M&E studies.

Maintain pictorial evidence of pre-project and post scenarios with respect to activities implemented under each sub-plan.

Identify emerging best practices, and prepare documents for knowledge sharing.

Develop knowledge sharing platforms for knowledge dissemination.

Document replications resulting from such knowledge dissemination exercise.

Reporting: Submit half yearly and annual progress reports to IFAD within 45 days of end of the reporting

period.

Submit half yearly financial statements to IFAD by within 45 days of end of the reporting period.

Submit RIMS report to IFAD by end march every year.

Submit Audited annual report with financial statements and management letter to IFAD by 30 September every year.


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Chapter-1.2: PROJECT SUMMARY

A. Background, Location & Project Objective

1) Background: The Integrated Livelihood Support Project (ILSP) will follow on from, and up-scale, the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society within the Rural Development Department, and Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC), a social venture capital company. However, for ILSP, the approach will be significantly changed – rather than forming Self-Help Groups (SHG) and provision of micro-finance services, ILSP will focus on supporting producer organisations with technology and access to markets to improve food security and livelihoods. 2) Location: Uttarakhand is a hill state in the north-west of India, covering 54,483 km

2 with a

population of about 8.5 million (2001 census). Nine of its 13 districts are classed as hill districts, covering 77% of the area of the state, but with only 44% of the population. Livelihoods are still predominantly rural, but most economic and population growth has also been in the plains, which are becoming industrialised. 3) Poverty: Uttarakhand is one of the poorest states in India. The major driver of rural poverty is the difficult mountain environment. Land holdings are very small (average 0.8 ha) and fragmented into 6 or 7 different locations. Tiny terraced plots on steep hillsides makes mechanisation virtually impossible. Shallow and immature soils require high levels of organic matter, but yields are very low. There is little use of modern varieties, mineral fertilisers and other inputs. Only about 10% of land in hill districts is irrigated. Most households keep cattle or buffalo, but improved crossbreds are relatively scarce, there is minimal investment in feeding and heath care. With 65% of the state covered in forest, damage to crops by wild animals is a major problem. Farmers and others report that the climate in Uttarakhand is changing, with rainfall patterns becoming more erratic. 4) Agriculture is very largely for subsistence, but very few households are able to produce enough food to last for more than three or four months. People rely on non-farm earnings and safety net programmes. With few rural employment opportunities, more and more people are migrating to jobs outside of hill districts. Between one third and one half of households send migrants and, as it is mainly men who migrate, this places more and more of the burden of farm labour, as well as domestic work, on women. Lack of labour, low productivity and wild animal damage are all contributing to land being abandoned, and it is said that as much as 30% of land in the hills that was once used to grow crops is no longer in production. 5) Rationale: the justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provide incentives for people to invest their time and resources in agriculture. Despite the disadvantages that agriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures at higher altitudes, allowing production of out of season vegetables and temperate fruits. The horticultural sector is less developed than in the other hill states, so there is considerable potential for growth, as there is in other niche products such as spices, medicinal and aromatic plants, and nuts. 6) Another area with growth potential is tourism. However more needs to be done to ensure that local people fully participate in, and benefit from, this sector. The population is well educated, but the level of youth unemployment is relatively high. Better vocational training could help such people find good quality employment in the growth sectors of the country. 7) The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand. This would be achieved via the more immediate development objective of “enable rural households to take up sustainable livelihood opportunities integrated with the wider economy”. 8) The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the


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main means of support for most households. The second main thrust of the project is to generate cash incomes via the introduction and expansion of cash crops. These would be grown on a significant scale for markets outside of the state. ILSP will also support non-farm livelihoods, especially community involvement in rural tourism, and vocational training.

B. Project Components 9) Component 1: Food security and livelihood enhancement implemented by UGVS, will support crop and livestock production for food security, and develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) and higher level organisations (Livelihood Collectives - LC) formed by a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new income sources. ILSP will also improve access to markets through a value chain approach and the provision of physical infrastructure for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development and promotion, physical infrastructure for market access. These activities will be implemented in five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement – with a target of 10,000 training places to be offered. 10) Component 2: Participatory Watershed Development implemented by the Watershed Management Directorate (WMD), will use processes that have been established through a series of watershed development projects in the state, but with an increased focus on food security, livelihoods and market linkages. It will protect and improve the productive potential of the natural resources in selected watersheds, alongside the promotion of sustainable agriculture with formation of PGs and LCs, and with improved access to markets. The component would cover a total of 41 micro-watershed (MWS) covering an area of about 125,000 ha in six clusters in six districts, with a population of 39,600 households. It will complement the ongoing watershed development programme funded by the World Bank and GoI, and takes into account availability of required WMD institutional capacity in the selected project districts.

11) Component 3: Livelihood financing implemented by UPASAC. Despite making significant strides in financial viability, banks have not been able to provide significant numbers of poor households with basic financial services. The activities under this component include:

a) Banking support – capacity building, expansion of branches of SKGFS, b) Risk management – piloting and scaling up of insurance services, c) Financial inclusion initiatives – training to LC to be bank agents, product literacy training, d) Provision of development finance via UPASAC including loan and quasi equity funding e) Establishment cost support to UPASAC.

12) Component 4: Project coordination and monitoring: Each executing agency, UGVS, WMD and UPASAC, will have their own project management units headed by a Project Director. To provide overall coordination, the state nodal agency, RDD, will set up a Central Project Coordination Unit (CPCU) within the RDD, headed by a Project Director (PD).

C. Target Groups and Targeting 13) Targeting: By covering complete blocks or MWS on a saturation basis any households in these project areas may participate in ILSP activities. Data from the population census show that, of the total population in project districts, 18.6% are Scheduled Caste (SC) and 0.9% are Scheduled Tribe (ST). The SC population is disadvantaged, with a relatively high proportion being below the poverty line. In line with the GoUK policy that at least 20% of project resources go to SC households, implementing agencies would ensure that this disadvantaged group participate and benefit from project activities by establishing special groups for vulnerable households. These would amount to at least 20% of all producer groups and would receive additional support.

14) Gender: the flow of benefits directly to women would be ensured by at least 50% of all producer groups being female. The project would also ensure that women participate in higher level Livelihood Collectives, Water and Watershed Management Committees and other institutions involved in project management. The project would promote livelihood activities that specifically address the needs of


20

women – such as by improving access to fodder and fuel, and easing the manual work involved in crop production.

D. Implementation and Coordination Arrangements 15) Implementation approach: The investment in ILSP is more than a five-fold increase over the on-going ULIPH. Given limitations on the capacity of UGVS/UPSAC to up-scale to this extent, funds for ILSP will be divided between UGVS/UPASAC and WMD. WMD would establish a society to implement the project. WMD has an established track record in implementing participatory watershed management projects, and their inclusion will allow the project to be up-scaled, while avoiding the risks involved in relying entirely on UGVS/UPASAC. The dual implementation structure will also generate new lessons in livelihood development using two different approaches to livelihood development. 16) Coordination: The Rural Development Department (RDD) will be the nodal agency at the state level with a Central Project Coordination Unit (CPCU) within RDD. A state level Project Steering Committee (PSC) would be chaired by the Chief Secretary, Government of Uttarakhand. The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD

1.

17) Convergence: the National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will be responsible for forming and supporting SHGs. ILSP will provide complementary support for livelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will be expected to receive support from other government programmes and from formal financial institutions. ILSP will also implement livelihood enhancement activities in blocks selected for watershed development by the Integrated Watershed Management Programme (IWMP), a centrally sponsored scheme. 18) M&E system will generate management information and provide the government and IFAD with evidence of results and impact against logframe indicators

2 (and also for IFAD‟s RIMS system). This

will involve activity/output, process, outcome and impact monitoring. 19) Financial management will be on the lines of current IFAD funded projects in India. Accounting software will be used to maintain accounting records and generate financial statements in IFAD formats. Periodic inputs from an IFAD Financial Management and Procurement Specialist will provide training and support for project financial staff. 20) Procurement will follow the procurement regulations of GoUK (with some project-specific amendments) to the extent they are consistent with IFAD Procurement Guidelines. Wherever, the national regulations are inconsistent with IFAD Procurement Guidelines, the latter shall prevail. Implementation partners (NGOs and research agencies) may be directly contracted by the project. This will avoid the delays and risks associated with a competitive selection process. 21) Key risks at the objective level include increases in the prices of food relative to wages, natural disasters, and migration out of the hills creating a labour shortage for agriculture. There are also risks to project outcomes including changing weather patterns, competition in external markets for cash crops, an unfavourable policy environment for rural finance. None of the risks have been identified as having a high impact on the achievement of project objectives.

E. Project Costs, Financing and Benefits 22) According to the Project Appraisal Report, the project cost is estimated to be USD 259 million. The Project is financed by an IFAD loan of USD 90 million, a contribution of USD 48 million

1 At the time of the preparation of this Document, the ILSP has been approved by the Cabinet and a GO was to

be issued. The PSC and PMC would be constituted only after the GO was issued. 2 According to the minutes of discussions between IFAD and the Stakeholders, each PIA will have independent

M&E, Logframe Matrix, MIS etc and would report to IFAD directly.


21

equivalents from the Government of Uttarakhand, USD 11 million equivalents from beneficiaries and the rest as institutional credit from bank. Significant additional funds will flow to members of project groups though convergence with other government programmes.

23) Benefits: The project investment has an overall Economic Internal Rate of Return of 23% and remains viable even if costs increase and/or benefits decrease by 20%. Farm model analysis shows average annual net income of participating households increasing from INR 19,000 to INR 33,000. According to the Appraisal Report, a total of 143,400 households

3 would directly benefit from the

project. 24) Sustainability of benefits is based on the following assumptions:

(a) The adoption of improved livelihoods will be sustained providing they continue to be profitable for households, and linkages for inputs and outputs are maintained. These linkages should be sustainable providing they are, in themselves, also financially viable for private sector actors and/or Livelihood Collectives.

(b) Physical works such as watershed treatment, irrigation and market infrastructure will need to

be maintained by user groups for irrigation, market infrastructure etc. The participation of local government in watershed development will help ensure the sustainability of these works.

(c) Capacity building will result in sustained benefits providing this training is relevant and

effective

3 This has been scaled down to 103,775 at the time of the preparation of PIM and in consultation with IFAD


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Annex-1.2.1 Logical Framework Matrix of UGVS (Components-1 & 4) Results Hierarchy Indicators Means of Verification Assumptions & Risks

A. GOAL Reducing poverty in hill districts of Uttarakhand % reduction in prevalence of child malnutrition (under 5 yrs

old: chronic, acute, underweight)

No of Household with improvement in households asset ownership index

No of HH reporting improved Food security Improved social indicators including literacy, income, Quality

of housing, water supply and sanitation No of HHs receiving project services

Impact surveys (including RIMS anchor indicators) at baseline, mid-term and completion

Price of food does not increase relative to earnings. No major natural disasters

B. DEVELOPMENT OBJECTIVE Enable 64,175 rural households to take up sustainable livelihood opportunities integrated with wider economy

More than 60% of project households report increase in income from sub-sectors supported by the project and reduction in expenditure

More than 75 % HHs increase food self-sufficiency Over 50 % of HHs report improved access to business

resources and services. 70% enterprises are operational three years after they

receive support. Over 50% of women increased income by EoP. Women report improvements in decision making in over

50% of project HHs.

Annual outcome surveys Impact surveys at baseline, mid-term and completion.

Employment opportunities in other parts of India do not mean that so many of the workforces migrates out of Uttarakhand that farming is affected.

C. OUTCOME

1.1-Food Security & Scaling up: Outcomes: 33,377 members of ULIPH federations benefit from enhanced market access, income generation opportunities and social support and 30,798 households in UGVS blocks benefit from increased food production, access to markets for cash crops, tourism and new employment opportunities.

Federations formed by ULIPH expand membership to more than 33,000 HHs

More than 70% of members make use of services facilitated by federations.

More than 50% of project hhs report increased sales of farm produce

No of new enterprises established No of existing enterprises expanded More than 70% of project hhs adopt improved

technologies

Annual outcome studies Federation Grading Format. Federation Business Format Federation Receipt and Payment format. KAP surveys Annual outcome surveys

Weather patterns do not change to the extent that seriously hinders farming. Food prices in hills do not fall to the extent that makes local production uneconomic. NGOs and service providers are able to perform their tasks


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Results Hierarchy Indicators Means of Verification Assumptions & Risks

More than 70% of project hhs members report increase farm output by at least 15%

70% of project supported institutions rated as Grade A using project grading standards.

No of functioning collection centres New Area brought under irrigation ha.

1.2-Market Access: Outcomes: Rural economy becomes more commercialised and households access new income generating opportunities

More than 60% project HHs use new business opportunities and technologies

Increase of producers’ share of retail price by at least 10% in three value chains.

Value chain studies Case studies of producer organisations

Communications (road and telecom) are developed.

1.3-Innovation and market linkages: Outcomes: Partnership with identified institutions leads to developing and disseminating new models

New models on market linkages and technical support are developed and disseminated as per part of proper interventions

Value chain studies, case studies of producer organisations

Improved technologies for hill Agriculture are available and profitable

1.4-Vocational training: Outcomes: Rural economy becomes more commercialised and households access new income generating opportunities

8,000 vocational training graduates gain employment. VT reports & studies Vocational skills acquired are relevant to job market.

Lessons in development of hill communities learned and disseminated.

Lessons documented and disseminated via media and meetings.

Project progress reports Project generates lessons which are widely applicable.

D. OUTPUTS Outputs: Food Security & scaling up Strengthen Federations in ULIPH blocks and Promote capacity building for enterprises. Producer Groups (PG) & Vulnerable Producer Groups (VPG) formed and strengthened PGs/VPGs assisted to formulate and implement their plans

Livelihood Collectives (LC) formed and strengthened LCs assisted to formulate and implement their plans

Capacity building for enterprises.

Membership of community institutions increased to cover more than 64175 HHs

130 Community apex institutions formed No of federations strengthened in value chain based

enterprises At least 75% of Federation board members are women. No of HH trained in crop based enterprises out of which

50% are women No of HH trained in livestock based enterprises out of

which 50% are women No of HHs trained in non-farm based enterprises out of

which 50% are women

Project progress reports. Markets for off season vegetables & other products not adversely affected by competition from imports or other areas.

Market Access Studies to market hill produce carried out Capacity Building of farmers/ staff on market linkages and

Sub sector based studies including market assessment studies carried out.

capacity building programs for market linkage

Project progress reports linkages and establishment of enterprises Support market


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establishment of enterprises Support market infrastructure. Market Information System supported

conducted. buyer-seller meets organised. MoUs with market agencies executed Enterprises established in identified sectors Collection centres established. Market information pilot carried and learning

disseminated

infrastructure. Market Information System supported

Innovations and market linkages:

Identification of qualified research and development agencies.

Testing and dissemination of technologies and approaches

MoUs executed with identified agencies for implementation of the innovation and market tie ups.

Identified innovations are tested, documented & recommendations shared with stakeholders.

Project progress reports Study report

Improved technologies for hill Agriculture are available and profitable.

Vocational training: 10,000 youth trained in vocational training out of which at least 60% are women.

Project progress reports Response from rural and urban youth;

Effective and efficient systems for delivery of project outputs Achievement of project targets at output and outcome levels.

Project progress reports GoUK & IFAD establish efficient management framework.

E. COMPONENTS/ ACTIVITIES Food security and scaling up: provision of irrigation infrastructure, producer groups formation and strengthening, formation and strengthening of livelihood collectives, preparation of FSIPs at PG and VPG levels, agri-business up-scaling plans at LC level and their implementation, recruitment of partner agencies for social mobilisation and technical services Access to markets: market infrastructure, sub-sector development using value chain approach, and capacity building Innovation Linkages: testing and dissemination of innovative technologies and approaches to improving food security, livelihoods and access to markets; surveys into specific constraints, field testing with project group members, training project staff and leaders of project groups and evaluation of outcomes. Vocational Training: a study on most appropriate sectors, industries for training, selection of youths for training and providing scholarships for training-linked to placement. Project management Project management unit established, staff recruited, agreements with partner agencies, project coordination, monitoring and evaluation, knowledge management – implemented by RDD


25

Annex-1.2.2 Logical Framework Matrix of WMD (Component-2) Results Hierarchy Indicators Means of Verification Assumptions & Risks

A. GOAL Goal Reducing poverty in hill districts of Uttarakhand

Child malnutrition (under 5 yrs old: chronic, acute, underweight)1

Household assets

Food security

Income (expenditure)

Quality of housing, water supply and sanitation



B. DEVELOPMENT OBJECTIVE Enable 39,600 rural households to take up sustainable livelihood opportunities integrated with the wider economy

70% of PG & VG members1 report increase in income.

70% of PG & VG members1 increase food security

Availability of fuel, fodder and water improved for 70% of watershed hh

Women’s empowerment - 80% of women report improvements such as decision making and mobility

Annual outcome surveys Impact surveys (including RIMS anchor indicators) at baseline, mid-term and completion

Employment opportunities in other parts of India do not mean that so many of the workforce migrates out of Uttarakhand that farming is affected.

C. OUTCOME

41 project watersheds with a population of 39,600 households become less vulnerable to erosion and drought.

Increase of 10% in vegetative biomass

Increase of 10% in water availability

Watershed environmental monitoring Annual outcome surveys

Treated watershed not damaged by erosion originating in reserve forests. GPs responsive to project & allocate required resources.

Farming systems on 41 project watersheds become more productive.

75% of PG members1 adopt new technologies or techniques

100% of PG members1 increase farm output by at least 15%.

Annual outcome surveys KAP surveys

Weather patterns do not change to the extent that seriously hinders farming. Food prices in hills do not fall to the extent that makes local production uneconomic.

Non-farm enterprises are developed and farm enterprises are up-scaled.

20% of VG members1 establish new enterprises or expand existing enterprises.

20% of PG members1 increase in sales of produce or use new market channels.

Annual outcome surveys Value chain studies

Markets for off season vegetables & other products not adversely affected by competition from imports or


26


other areas. Communications (road and telecom) are developed.

Lessons in watershed development disseminated. Improved performance by 80% of GP


Process monitoring of GP Project progress reports

Project generates lessons which are widely applicable.

D. OUTPUTS Participatory watershed management Watershed management capacities strengthened and watersheds developed

275 Water and Watershed Management Committees plan and implement watershed development

125,000??) ha covered by watershed conservation and development.

Project progress reports Communities are interested and willing to prioritise watershed development. GP’s able to play their role in implementing watershed development

Food security enhancement support Rainfed agriculture, value addition and marketing support

Producer Groups with 23,400 members1 established

Collection centres, marketing services

Project progress reports

Livelihood up-scaling support Livelihood opportunities for vulnerable hh and up-scaling of farm enterprises

Vulnerable Groups with 5,856 members1

70 Livelihood Collectives established & up-scale income generating activities with backward and forward linkages


Institutional strengthening Watershed institutions strengthened

All (275) GP gain capacity for watershed development

Information and communication products

Project management delivers project services

Project progress reports GoUK & IFAD establish efficient management framework.

E. COMPONENTS/ ACTIVITIES

Participatory watershed management: watershed planning and treatment

Food security and enhancement support: producer group formation and strengthening, grants for PGs, collection centres and other small infrastructure, formation of livelihood collectives, value chain studies.

Livelihood up-scaling support: Vulnerable group formation and strengthening, grants for vulnerable groups, grants for livelihood collectives

Institutional strengthening: capacity building of GP, information & communication programme, project management unit established, staff recruited, agreements with partner agencies, monitoring and evaluation


27

Annex-1.2.3 Logical Framework Matrix of UPASAC (Components-3) Results Hierarchy Indicators Means of Verification Assumptions & Risks

A. GOAL Reducing poverty in hill districts of Uttarakhand % reduction in prevalence of child malnutrition (under 5 yrs old:

chronic, acute, underweight) No of Household with improvement in households asset

ownership index No of HH reporting improved Food security Improved social indicators including literacy, income, Quality of

housing, water supply and sanitation No of HHs receiving project services



B. DEVELOPMENT OBJECTIVE Enable 64,175 rural households to take up sustainable livelihood opportunities integrated with wider economy

1.70% enterprises are operational three years after they receive support.

2. Investments in livelihood opportunities

Annual outcome surveys Impact surveys at baseline, mid-term and completion.

Employment opportunities in other parts of India do not mean that so many of the workforces migrates out of Uttarakhand that farming is affected.

C. OUTCOME

Outcomes: Banking Initiatives: Improved access to bank finance

560 Term loans for SMEs facilitated at an average funding support of for Rs.2 lakh

6100 Term loans for MEs facilitated at an average funding support of for Rs.0.75 lakh

Cash Credit limit for 3460 SHG/PG availed at an average of Rs.0.50 lakh/group

Kisan Credit card facility availed by 9500 persons at an average of Rs.0.25 lakh per member

Number of new financial products and viability of new RFI branches

Loan default rate at an acceptable level

Annual outcome surveys Annual data on lending reported by banks Reports from RFIs

Banks willing to expand lending in rural areas. Reserve Bank of India directives giving relaxation in population criteria for opening new bank branches encourages banks to open new branches in Project Area. RBI circular

Outcomes: Risk management Improved means of mitigating risk Number of clients/policies developed for different risk management instruments.

___ risk management products introduced and used

Annual outcome surveys Data and reports from insurance companies

Sufficient incentives exist for insurance companies to provide services that meet the needs of the target


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group. Outcomes: Financial Inclusion initiatives Increased financial inclusion

Number of groups members using financial services LCs act as facilitators in taking up the role of BC/BF by

its members Effectiveness of financial literacy training

Annual outcome surveys Data and reports from LC

BC/BF model viable for both banks and LC. LC members overcome the viability challenge in taking up the role of BF/BC by making it a part of set of other income generation activities.

Outcomes: Development Finance Increased investment in market-led opportunities by hill producers and their organisations.

UPASAC investments total Rs.70 million through SVCF Recovery rate for UPASAC Investments

Reports from UPASAC Regulatory framework allows financial innovation and encourages rural lending.

Lessons in development of hill communities learned and disseminated.


Project progress reports Project generates lessons which are widely applicable.

D. OUTPUTS Banking initiatives: Enabling access to bank finance Impact study of RFI corried

12 new branches of RFI expanded in project blocks 11 Business Facilitators supported for carrying out

financial inclusion with banks 8 PACS supported for bank linkage Major financial institutions having presence in Project

participating in ILSP linkages.


Banks willing to participate. GoUK interest rate criteria does not prevent RFIs from participating SKGFS offers benefits of various government schemes support with financing to make it beneficial as in case of lending from banks.

New risk management products developed Risk insurance study Partnerships for development of risk management

products executed


Insurance companies willing to participate.

Financial inclusion initiatives: Improved access to financial products

Number of LC acting as BC/BF Number of people reached by financial literacy training


Sufficient LC members have the capacity to act as BC or BF.

Development Finance: Social venture capital company provides financial resources

Number of funding applications reviewed Viability gap funding support to 100 LC provided Entrepreneurship development scheme grant to 3000 PGs

Project progress reports Tie ups with banks helps in evolving mechanisms for operationalising Development Finance Fund


29


in collaboration for attaining synergies of reduced joint risks & documentation and ensuring asset quality Suitable staff can be recruited to operate UPASAC as envisaged.

Effective and efficient systems for delivery of project outputs Achievement of project targets at output and outcome levels. Project progress reports GoUK & IFAD establish efficient management framework.

E. COMPONENTS/ ACTIVITIES Livelihood finance: provision of debt and equity capital for enterprise start-up, piloting of risk management instruments, support for financial institutions – implemented by UPASAC Project management Project management unit established, staff recruited, agreements with partner agencies, project coordination, monitoring and evaluation, knowledge management – implemented by RDD


30

Chapter-1.3: PROJECT COST ESTIMATES Detailed cost estimates for each component are provided in Annex-1.3.1 Cost estimates and the

phasing are indicative and these may be reviewed at the time of preparing Annual Work Plan and

Budget.

Based on the discussions with respective PIA, namely the UGVS, UPASAC and Watershed

Management Department following key changes in the Appraisal Cost Estimates were made:

Component/

Sub-components

Major changes introduced by the respective PIA

at the time of PIM preparation

Food security & scaling up Support to PG and VPG enhanced to INR 80,000 Number of LCs scaled down from 102 to 60 ULIPH federations included as service providers 60 LCs in new area provided the services of Livelihood

coordinators, facilitators and accounts assistants for last three year period.

Overheads at 25% or more provisioned for FNGO, RNGO.

Market Access Physical targets under last-mile infrastructure scaled down

Innovative Linkages More activities under R&D Institutes included

Vocational training Unit cost of scholarship per trainee increased to INR 20,000 with 25% contribution from the beneficiary

UGVS Project Management More number of staff added; unit cost for staff position and O&M costs enhanced;

No staff salary, allowances and O&M costs for fiscal 2012-13 shown as these would be accounted for by the ongoing IFAD supported ULIPH project.

Participatory watershed Management

Unit costs for project management enhanced; Audit manager and more support staff added

Livelihood Finance Grant support to PG/SHG for enterprises development inserted

Central Project and Coordination Unit

Staff positions reorganised and operating costs enhanced

M&E for UGVS-UPASAC Unit costs of staff salary and operating expenditures enhanced

M&E for WMD A new Table created and all required expenditures provided and this resulted in overall increases in costs for M&E Sub-component.

As a result of above-mentioned changes overall project costs in Rupee terms have increased by over

INR X million. But in the US Dollar-terms at current exchange rate, the IFAD Loan Amount would be

much less than the amount specified in the Financing Agreement. Therefore summary Tables are not

presented in USD values but in Rupees. This is expected to set right at the time of MTR.


31

Unit costs shown in costab are indicative and were based on the information and data available at the

time of preparation of the design documents. These would be reviewed each year and updated where

necessary by the respective PIA but with the approval of PMC and PSC.

Each detailed costable contains cost items, quantity by year, unit cost in INR, baseline cost by year,

total cost including contingencies by year, component account, procurement account, disbursement

account, financing rule, procurement method, expenditure account etc.

Following detailed Cost Tables are presented in Annex-1.3.1: COMPONENT 1: FOOD SECURITY AND SCALING UP

-Table-1.1: Food Security & Scaling up -Table-1.2: Access to Markets -Table-1.3: Innovative Linkages -Table-1.4: Vocational Training -Table-1.5: UGVS Project Management Unit COMPONENT 2: PARTICIPATORY WATERSHED MANAGEMENT Table-2.1: Participatory Watershed Development (WMD) COMPONENT 3: LIVELIHOOD FINANCE -Table-3.1: Livelihood Finance (UPASAC) COMPONENT 4: PROJECT MANAGEMENT -Table-4.1: Central Project Coordinating Unit (CPCU) -Table-4.2: M&E and Knowledge Management (UGVS & UPASAC) -Table-4.3: M&E and Knowledge Management (WMD)

Following Project Summary Tables are presented in Annex-1.3.2:

-Project Summary Cost Estimates (in INR) -Project Summary Cost by Year (in INR) -Project Disbursement by Financiers (in INR) -Project Expenditures by Financiers (in INR) .


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Annex-1.3.1: Detailed Cost Estimates (UGVS & UPASAC)


33

TABLE-1.1: FOOD SECURITY & UPSCALING-BASELINE COSTS

INDIA

Uttarakhand: Integrated Livelihoods Support Programme

Table 1.1. Food Security & Scaling up

Detailed Costs Quantities Unit Cost Base Cost (INR '000)

Unit 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total (INR) 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total

I. Investment Costs

A. Irrigation & Infrastructure

Micro-irrigation per LC - - 40 20 20 20 - 100 350,000 - - 14,000 7,000 7,000 7,000 - 35,000

Other irrigation works per LC - - - 70 30 - - 100 650,000 - - - 45,500 19,500 - - 65,000

Subtotal Irrigation & Infrastructure - - 14,000 52,500 26,500 7,000 - 100,000

B. Food Security Enhancement

Support to VPGs/PGs 1st year PGs - 385 2,311 1,156 - - - 3,852 40,000 - 15,400 92,440 46,240 - - - 154,080

Support to VPGs/PGs-2nd year PGs - - 385 2,311 1,156 - - 3,852 40,000 - - 15,400 92,440 46,240 - - 154,080

Seed capital to VPGs: 1st year /a VPGs - 77 462 230 - - - 769 8,000 - 616 3,696 1,840 - - - 6,152

Seed capital VGPs: 2nd year VPG - - 77 462 230 - - 769 8,000 - - 616 3,696 1,840 - - 6,152

Support to ULIPH federations LS - 40 30 - - - - 70 200,000 - 8,000 6,000 - - - - 14,000

Subtotal Food Security Enhancement - 24,016 118,152 144,216 48,080 - - 334,464

C. Livelihoods upscaling

1. New Blocks

Agri- Plan implementation /b LC - - 10 20 30 - - 60 200,000 - - 2,000 4,000 6,000 - - 12,000

Agri Plan implementation-2 /c LC - - - 10 20 30 - 60 200,000 - - - 2,000 4,000 6,000 - 12,000

Procurement Training LC - - 6 6 6 - - 18 50,000 - - 300 300 300 - - 900

Financial Management Training LC - - 6 6 6 - - 18 50,000 - - 300 300 300 - - 900

Agency staff Training in FSIP No - 6 6 - - - - 12 50,000 - 300 300 - - - - 600

Agency staff Training in convergence No - 6 6 - - - - 12 50,000 - 300 300 - - - - 600

CRP capacity building CRP - 50 40 30 20 - - 140 3,000 - 150 120 90 60 - - 420

Convergence meeting meeting - - 20 60 120 120 120 440 2,000 - - 40 120 240 240 240 880

BOD meeting meeting - - 40 80 240 240 240 840 500 - - 20 40 120 120 120 420

AGM meeting meeting - - 10 20 60 60 60 210 15,000 - - 150 300 900 900 900 3,150

Village/Block level meeting LC - 26 - - - - - 26 10,000 - 260 - - - - - 260

Legal compliance & Audit LC - - 10 20 60 60 60 210 10,000 - - 100 200 600 600 600 2,100

Livestock breeding programme Block - 9 9 9 9 9 9 54 400,000 - 3,600 3,600 3,600 3,600 3,600 3,600 21,600

Subtotal New Blocks - 4,610 7,230 10,950 16,120 11,460 5,460 55,830

2. ULIPH Blocks

Convergence meeting No 140 140 140 - - - - 420 2,000 280 280 280 - - - - 840

Annual Plan Training LC 5 15 - - - - - 20 50,000 250 750 - - - - - 1,000

BOD meeting No 70 280 280 210 - - - 840 500 35 140 140 105 - - - 420

AGM meeting No - 70 70 70 - - - 210 10,000 - 700 700 700 - - - 2,100

Annual Audit LC - 70 70 70 70 70 70 420 5,000 - 350 350 350 350 350 350 2,100

Livestock breeding programme Block - 17 17 17 17 17 17 102 400,000 - 6,800 6,800 6,800 6,800 6,800 6,800 40,800

Subtotal ULIPH Blocks 565 9,020 8,270 7,955 7,150 7,150 7,150 47,260

Subtotal Livelihoods upscaling 565 13,630 15,500 18,905 23,270 18,610 12,610 103,090


34


INDIA





I. Investment Costs

D. Agribusiness Planning

Agribusiness Plan preparation LC - 35 45 20 30 - - 130 20,000 - 700 900 400 600 - - 2,600

Partner staff project planning LS - 200 - - - - - 200

Partner staff Exposure visits /d batch - 1 2 2 - - - 5 120,000 - 120 240 240 - - - 600

Subtotal Agribusiness Planning - 1,020 1,140 640 600 - - 3,400

E. Support to Partner Agencies

1. Office equipment

Social PNGO/Agencies /e set - 30 - - - - - 30 170,000 - 5,100 - - - - - 5,100

Technical NGOs/Agencies /f set - - 6 - - - - 6 205,000 - - 1,230 - - - - 1,230

Livelihood collectives (LC) Lumpsum - - - 30 - - - 30 60,000 - - - 1,800 - - - 1,800

Subtotal Office equipment - 5,100 1,230 1,800 - - - 8,130

Total Investment Costs 565 43,766 150,022 218,061 98,450 25,610 12,610 549,084

II. Recurrent Costs

A. Partner Agency Salary & Operations

1. Social PNGO: Salary, O&M costs /g

Livelihood Coordinators Pers_month - 180 360 360 90 - - 990 15,000 - 2,700 5,400 5,400 1,350 - - 14,850

Livelihood facilitators Pers_month - 1,050 2,160 2,160 540 - - 5,910 8,000 - 8,400 17,280 17,280 4,320 - - 47,280

Accountants/Assistants Pers_month - 180 360 360 90 - - 990 10,000 - 1,800 3,600 3,600 900 - - 9,900

Operating Costs Pers_month - 180 360 360 90 - - 990 13,000 - 2,340 4,680 4,680 1,170 - - 12,870

Overhead costs /h Staff month - 180 360 360 90 - - 990 21,000 - 3,780 7,560 7,560 1,890 - - 20,790

Subtotal Social PNGO: Salary, O&M costs - 19,020 38,520 38,520 9,630 - - 105,690

2. Technical PNGO: salary, O&M costs

Coordinators Pers_month - 18 72 72 72 72 72 378 30,000 - 540 2,160 2,160 2,160 2,160 2,160 11,340

Agri-business officers Pers_month - 78 312 312 312 312 234 1,560 20,000 - 1,560 6,240 6,240 6,240 6,240 4,680 31,200

Business Development officers Pers_month - 78 312 312 312 312 234 1,560 20,000 - 1,560 6,240 6,240 6,240 6,240 4,680 31,200

Market Linkage Officers Pers_month - 18 72 72 72 72 54 360 20,000 - 360 1,440 1,440 1,440 1,440 1,080 7,200

Junior Engineers Pers_month - 18 72 72 72 72 - 306 20,000 - 360 1,440 1,440 1,440 1,440 - 6,120

Accountants/Assistants Pers_month - 18 72 72 72 72 72 378 10,000 - 180 720 720 720 720 720 3,780

Operating costs Pers_month - 18 72 72 72 72 54 360 40,000 - 720 2,880 2,880 2,880 2,880 2,160 14,400

Overheads /i Staff month - 18 72 72 72 72 54 360 31,200 - 562 2,246 2,246 2,246 2,246 1,685 11,232

Subtotal Technical PNGO: salary, O&M costs - 5,842 23,366 23,366 23,366 23,366 17,165 116,472


35


INDIA





II. Recurrent Costs

3. ULIPH Federations: Salary, O&M costs

Business Coordinators-ULIPH blocks /j Pers_month 213 852 852 852 - - - 2,769 15,000 3,195 12,780 12,780 12,780 - - - 41,535

Business facilitators-ULIPH Blocks Pers_month 213 852 852 852 - - - 2,769 8,000 1,704 6,816 6,816 6,816 - - - 22,152

Accountants/Assistants-ULIPH blocks Pers_month 213 852 852 852 - - - 2,769 10,000 2,130 8,520 8,520 8,520 - - - 27,690

ULIPH federations Operating costs /k Pers_month 213 852 852 852 - - - 2,769 13,000 2,769 11,076 11,076 11,076 - - - 35,997

Overheads of ULIPH federations /l Staff month 213 852 852 852 - - - 2,769 10,000 2,130 8,520 8,520 8,520 - - - 27,690

Subtotal ULIPH Federations: Salary, O&M costs 11,928 47,712 47,712 47,712 - - - 155,064

4. LC in New Blocks: Salaries, allowances

Livelihood Coordinator Pers_month - - - - 630 720 720 2,070 15,000 - - - - 9,450 10,800 10,800 31,050

Livelihood facilitators Pers_month - - - - 1,620 2,160 2,160 5,940 8,000 - - - - 12,960 17,280 17,280 47,520

Accountants/Assistant Pers_month - - - - 630 720 720 2,070 10,000 - - - - 6,300 7,200 7,200 20,700

Travel allowances Pers_month - - - - 630 720 720 2,070 10,000 - - - - 6,300 7,200 7,200 20,700

Subtotal LC in New Blocks: Salaries, allowances - - - - 35,010 42,480 42,480 119,970

Total Recurrent Costs 11,928 72,574 109,598 109,598 68,006 65,846 59,645 497,196

Total 12,493 116,340 259,620 327,659 166,456 91,456 72,255 1,046,280

_________________________________

\a For non-farm activities \g Both PNGOs and ULIPH Federations would be encouraged to participate

\b First support \h Assumed at 25% of total cost

\c Second support \i Assumed at 30% of total costs

\d a batch of 20 for 4 days at INR 1500 per participant \j For ULIPH Blocks

\e a set of 2 computers, one furniture set, 2 printers & miscellaneous equipment \k For old blocks only

\f a set of computer, one printer, one laptop, furniture, miscellaneous equipment \l Lumpsum provisions


36

TABLE-1.1: FOOD SECURITY & UPSCALING-TOTAL COSTS AND FINANCING RULES

INDIA


Table 1.1. Food Security & Scaling up Other Accounts

Detailed Costs Totals Including Contingencies (INR '000) Expenditure Disb. Impl.

12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total Account Acct. Fin. Rule Proc. Acct. Proc. Method Agency

I. Investment Costs


Micro-irrigation - - 15,632 8,168 8,535 8,920 - 41,255 CW_EA CW_DA IFAD ( 75% ), BEN ( 15% ) CW_PA LCL_SHOPPING_PM ( 100% ) UGVS

Other irrigation works - - - 53,091 23,777 - - 76,869 CW_EA CW_DA IFAD ( 75% ), BEN ( 15% ) CW_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal Irrigation & Infrastructure - - 15,632 61,259 32,313 8,920 - 118,124

B. Food Security Enhancement

Support to VPGs/PGs 1st year - 16,455 103,218 53,955 - - - 173,628 LIVE_EA CB_DA IFAD ( 90% ), BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Support to VPGs/PGs-2nd year - - 17,196 107,863 56,383 - - 181,441 LIVE_EA CB_DA IFAD ( 90% ), BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Seed capital to VPGs: 1st year /a - 658 4,127 2,147 - - - 6,932 LIVE_EA CB_DA IFAD ( 90% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Seed capital VGPs: 2nd year - - 688 4,313 2,244 - - 7,244 LIVE_EA CB_DA IFAD ( 90% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Support to ULIPH federations - 8,548 6,700 - - - - 15,248 LIVE_EA CB_DA IFAD ( 90% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal Food Security Enhancement - 25,661 131,928 168,277 58,626 - - 384,493

C. Livelihoods upscaling

1. New Blocks

Agri- Plan implementation /b - - 2,233 4,667 7,316 - - 14,217 LIVE_EA CB_DA IFAD ( 90% ),BEN (10%) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Agri Plan implementation-2 /c - - - 2,334 4,877 7,645 - 14,856 LIVE_EA CB_DA IFAD ( 90% ), BEN (10%) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Procurement Training - - 335 350 366 - - 1,051 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) UGVS

Financial Management Training - - 335 350 366 - - 1,051 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) UGVS

Agency staff Training in FSIP - 321 335 - - - - 656 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) UGVS

Agency staff Training in convergence - 321 335 - - - - 656 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) UGVS

CRP capacity building - 160 134 105 73 - - 472 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Convergence meeting - - 45 140 293 306 320 1,103 CB_EA CB_DA IFAD ( 90% ) CB_PA CPP_PM ( 100% ) UGVS

BOD meeting - - 22 47 146 153 160 528 CB_EA CB_DA IFAD ( 90% ) CB_PA CPP_PM ( 100% ) UGVS

AGM meeting - - 167 350 1,097 1,147 1,198 3,960 CB_EA CB_DA IFAD ( 90% ) CB_PA CPP_PM ( 100% ) UGVS

Village/Block level meeting - 278 - - - - - 278 LIVE_EA CB_DA IFAD ( 90% ) SPC_PA CPP_PM (100%) UGVS

Legal compliance & Audit - - 112 233 732 765 799 2,640 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Livestock breeding programme - 3,847 4,020 4,201 4,390 4,587 4,794 25,837 CB_EA CB_DA IFAD ( 90% ), BEN (10%) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal New Blocks - 4,926 8,073 12,777 19,656 14,603 7,270 67,305

2. ULIPH Blocks

Convergence meeting 286 299 313 - - - - 898 CB_EA CB_DA IFAD ( 90% ) CB_PA CPP_PM ( 100% ) UGVS

Annual Plan Training 256 801 - - - - - 1,057 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) UGVS

BOD meeting 36 150 156 123 - - - 464 CB_EA CB_DA IFAD ( 90% ) CB_PA CPP_PM ( 100% ) UGVS

AGM meeting - 748 782 817 - - - 2,346 CB_EA CB_DA IFAD ( 90% ) CB_PA CPP_PM ( 100% ) UGVS

Annual Audit - 374 391 408 427 446 466 2,512 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Livestock breeding programme - 7,266 7,593 7,935 8,292 8,665 9,055 48,804 CB_EA CB_DA IFAD ( 90% ), BEN (10%) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal ULIPH Blocks 578 9,638 9,234 9,282 8,718 9,111 9,521 56,082

Subtotal Livelihoods upscaling 578 14,564 17,307 22,059 28,374 23,713 16,791 123,386


37


INDIA





I. Investment Costs


D. Agribusiness Planning

Agribusiness Plan preparation - 748 1,005 467 732 - - 2,951 LIVE_EA CB_DA IFAD ( 90%) , BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Partner staff project planning - 214 - - - - - 214 LIVE_EA CB_DA IFAD ( 90%) , BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Partner staff Exposure visits /d - 128 268 280 - - - 676 LIVE_EA CB_DA IFAD ( 90%) , BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal Agribusiness Planning - 1,090 1,273 747 732 - - 3,841

E. Support to Partner Agencies

1. Office equipment

Social PNGO/Agencies /e - 5,449 - - - - - 5,449 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Technical NGOs/Agencies /f - - 1,373 - - - - 1,373 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Livelihood collectives (LC) - - - 2,100 - - - 2,100 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Subtotal Office equipment - 5,449 1,373 2,100 - - - 8,923

Total Investment Costs 578 46,765 167,514 254,443 120,045 32,633 16,791 638,768

II. Recurrent Costs

A. Partner Agency Salary & Operations

1. Social PNGO: Salary, O&M costs /g

Livelihood Coordinators - 2,885 6,030 6,301 1,646 - - 16,862 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Livelihood facilitators - 8,976 19,295 20,163 5,268 - - 53,701 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Accountants/Assistants - 1,923 4,020 4,201 1,097 - - 11,241 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Operating Costs - 2,500 5,226 5,461 1,427 - - 14,613 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Overhead costs /h - 4,039 8,441 8,821 2,305 - - 23,606 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Subtotal Social PNGO: Salary, O&M costs - 20,323 43,011 44,947 11,742 - - 120,023

2. Technical PNGO: salary, O&M costs

Coordinators - 577 2,412 2,520 2,634 2,752 2,876 13,772 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Agri-business officers - 1,667 6,968 7,281 7,609 7,951 6,232 37,707 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Business Development officers - 1,667 6,968 7,281 7,609 7,951 6,232 37,707 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Market Linkage Officers - 385 1,608 1,680 1,756 1,835 1,438 8,702 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Junior Engineers - 385 1,608 1,680 1,756 1,835 - 7,264 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Accountants/Assistants - 192 804 840 878 917 959 4,591 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Operating costs - 769 3,216 3,361 3,512 3,670 2,876 17,403 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Overheads /i - 600 2,508 2,621 2,739 2,862 2,243 13,575 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Subtotal Technical PNGO: salary, O&M costs - 6,242 26,091 27,265 28,492 29,774 22,856 140,719


38


INDIA





I. Investment Costs

3. ULIPH Federations: Salary, O&M costs

Business Coordinators-ULIPH blocks /j 3,267 13,656 14,270 14,912 - - - 46,105 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Business facilitators-ULIPH Blocks 1,742 7,283 7,611 7,953 - - - 24,589 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Accountants/Assistants-ULIPH blocks 2,178 9,104 9,513 9,941 - - - 30,737 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

ULIPH federations Operating costs /k 2,831 11,835 12,367 12,924 - - - 39,958 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Overheads of ULIPH federations /l 2,178 9,104 9,513 9,941 - - - 30,737 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Subtotal ULIPH Federations: Salary, O&M costs 12,196 50,981 53,275 55,672 - - - 172,125

4. LC in New Blocks: Salaries, allowances

Livelihood Coordinator - - - - 11,523 13,762 14,381 39,665 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Livelihood facilitators - - - - 15,803 22,019 23,009 60,831 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Accountants/Assistant - - - - 7,682 9,174 9,587 26,444 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Travel allowances - - - - 7,682 9,174 9,587 26,444 OM_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Subtotal LC in New Blocks: Salaries, allowances - - - - 42,689 54,129 56,565 153,383


Total 12,774 124,310 289,891 382,327 202,969 116,536 96,212 1,225,018

_________________________________

\a For non-farm activities

\b First support

\c Second support

\d a batch of 20 for 4 days at INR 1500 per participant

\e a set of 2 computers, one furniture set, 2 printers & miscellaneous equipment

\f a set of computer, one printer, one laptop, furniture, miscellaneous equipment


39

TABLE-1.2: MARKET ACCESS-BASELINE COSTS

INDIA


Table 1.2. Market Access



I. Investment Costs

A. Last mile Infrastructure

River crossing trolleys & ropeways No - - 1 1 2 2 - 6 1,000,000 - - 1,000 1,000 2,000 2,000 - 6,000

ICT-based information Lumpsum - 1 1 1 - - - 3 200,000 - 200 200 200 - - - 600

Subtotal Last mile Infrastructure - 200 1,200 1,200 2,000 2,000 - 6,600

B. Assembly markets

Collection centres /a No - - 10 20 20 10 - 60 1,000,000 - - 10,000 20,000 20,000 10,000 - 60,000

C. Capacity building

Farmer exposure visit to market /b No 10 10 20 30 30 20 - 120 50,000 500 500 1,000 1,500 1,500 1,000 - 6,000

Agency staff AUP preparation training No - 1 3 - - - - 4 50,000 - 50 150 - - - - 200

Agency staff business Plan preparation No - 1 3 - - - - 4 50,000 - 50 150 - - - - 200

Farmers exposure visit to Market /c No - 70 70 - - - - 140 50,000 - 3,500 3,500 - - - - 7,000

Subtotal Capacity building 500 4,100 4,800 1,500 1,500 1,000 - 13,400

D. Sub-sector development: New Blocks /d

Value-chain planning & reviews No 9 - 9 - 9 - 9 36 30,000 270 - 270 - 270 - 270 1,080

Enterprises assessment study No - - - 9 - 9 - 18 25,000 - - - 225 - 225 - 450

Technical Assistance Pers_month 18 - 36 36 36 - - 126 40,000 720 - 1,440 1,440 1,440 - - 5,040

Market / value chain studies study 2 6 10 - - - - 18 400,000 800 2,400 4,000 - - - - 7,200

Buyers visits No - 3 3 3 - - - 9 75,000 - 225 225 225 - - - 675

Organising Fairs No - - 12 12 12 12 12 60 100,000 - - 1,200 1,200 1,200 1,200 1,200 6,000

Buyer-seller meet at clusters Block - - 9 9 9 9 9 45 30,000 - - 270 270 270 270 270 1,350

Promotion, Miscellaneous LC - - 30 60 60 60 - 210 25,000 - - 750 1,500 1,500 1,500 - 5,250

Subtotal Sub-sector development: New Blocks 1,790 2,625 8,155 4,860 4,680 3,195 1,740 27,045

E. Sub-sector development: ULIPH Blocks /e

Value-chain planning & reviews No 17 - - - - - - 17 30,000 510 - - - - - - 510

Enterprises assessment study No - 17 - 17 - - - 34 25,000 - 425 - 425 - - - 850

Technical Assistance Pers_month 15 51 51 36 - - - 153 40,000 600 2,040 2,040 1,440 - - - 6,120

Buyer-seller meet at clusters Block 5 17 17 12 - - - 51 30,000 150 510 510 360 - - - 1,530

Promotion, Miscellaneous LC 30 70 50 - - - - 150 25,000 750 1,750 1,250 - - - - 3,750

Subtotal Sub-sector development: ULIPH Blocks 2,010 4,725 3,800 2,225 - - - 12,760

Total 4,300 11,650 27,955 29,785 28,180 16,195 1,740 119,805

_________________________________

\a Some 40 to 50 ton capacity & equipment

\b a five day visit

\c for ULIPH blocks

\d In new Blocks

\e In ULIPH Blocks


40

TABLE-1.2: MARKET ACCESS-TOTAL COSTS & FINANCING RULES

INDIA


Table 1.2. Market Access Other Accounts

Detailed Costs Totals Including Contingencies (INR '000) Expenditure Disb. Proc. Impl.

12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total Account Acct. Fin. Rule Acct. Proc. Method Agency

I. Investment Costs


River crossing trolleys & ropeways - - 1,117 1,167 2,439 2,548 - 7,271 CW_EA CW_DA IFAD ( 90% ) CW_PA LCL_SHOPPING_PM ( 100% ) UGVS

ICT-based information - 214 223 233 - - - 670 CW_EA CW_DA IFAD ( 90% ) CW_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal Last mile Infrastructure - 214 1,340 1,400 2,439 2,548 - 7,941

B. Assembly markets

Collection centres /a - - 11,166 23,337 24,387 12,742 - 71,632 CW_EA CW_DA IFAD ( 90% ) CW_PA LCL_SHOPPING_PM ( 100% ) UGVS

C. Capacity building

Farmer exposure visit to market /b 511 534 1,117 1,750 1,829 1,274 - 7,016 CB_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Agency staff AUP preparation training - 53 167 - - - - 221 CB_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Agency staff business Plan preparation - 53 167 - - - - 221 CB_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Farmers exposure visit to Market /c - 3,740 3,908 - - - - 7,648 CB_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) UGVS

Subtotal Capacity building 511 4,381 5,360 1,750 1,829 1,274 - 15,105

D. Sub-sector development: New Blocks /d

Value-chain planning & reviews 276 - 301 - 329 - 360 1,266 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Enterprises assessment study - - - 263 - 287 - 549 SURVEY_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Technical Assistance 736 - 1,608 1,680 1,756 - - 5,780 TA_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Market / value chain studies 818 2,564 4,466 - - - - 7,849 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Buyers visits - 240 251 263 - - - 754 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Organising Fairs - - 1,340 1,400 1,463 1,529 1,598 7,330 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Buyer-seller meet at clusters - - 301 315 329 344 360 1,649 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Promotion, Miscellaneous - - 837 1,750 1,829 1,911 - 6,328 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal Sub-sector development: New Blocks 1,830 2,805 9,106 5,671 5,707 4,071 2,317 31,506

E. Sub-sector development: ULIPH Blocks /e

Value-chain planning & reviews 521 - - - - - - 521 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Enterprises assessment study - 454 - 496 - - - 950 SURVEY_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Technical Assistance 614 2,180 2,278 1,680 - - - 6,751 TA_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Buyer-seller meet at clusters 153 545 569 420 - - - 1,688 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Promotion, Miscellaneous 767 1,870 1,396 - - - - 4,033 BUSINESS_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal Sub-sector development: ULIPH Blocks 2,055 5,049 4,243 2,596 - - - 13,943

Total 4,397 12,448 31,214 34,754 34,361 20,636 2,317 140,128

_________________________________

\a Some 40 to 50 ton capacity & equipment

\b a five day visit

\c for ULIPH blocks

\d In new Blocks

\e In ULIPH Blocks


41

TABLE-1.3: INNOVATION LINKAGES-BASELINE COSTS

TABLE-1.3: INNOVATION LINKAGES-TOTAL COSTS & FINANCING RULES

INDIA


Table 1.3. Innovation Linkages



I. Investment Costs

A. Linkages with R&D Institutions

VPKAS Crop research /a year 0.1 1 1 1 1 1 0.9 6 6,047,000 605 6,047 6,047 6,047 6,047 6,047 5,442 36,282

GBPUAT Training & research year - 1 1 1 - - - 3 2,500,000 - 2,500 2,500 2,500 - - - 7,500

HARC citrus action research year 0.25 1 1 0.75 - - - 3 2,500,000 625 2,500 2,500 1,875 - - - 7,500

Livestock & poultry others year - - 1 1 1 - - 3 1,000,000 - - 1,000 1,000 1,000 - - 3,000

Non-farm & Market Development- Pilots /b Lumpsum - 1 1 1 1 1 1 6 3,000,000 - 3,000 3,000 3,000 3,000 3,000 3,000 18,000

Action Research on NTFP value chain Lumpsum - 1 1 1 1 1 1 6 2,000,000 - 2,000 2,000 2,000 2,000 2,000 2,000 12,000

Action Research on Organic value chain Lumpsum - 1 1 1 1 1 - 5 1,500,000 - 1,500 1,500 1,500 1,500 1,500 - 7,500

Action Research on eco-tourism value chain Lumpsum 0.1 1 1 1 1 0.9 - 5 1,000,000 100 1,000 1,000 1,000 1,000 900 - 5,000

Action Research with Business Schools /c No - 6 6 6 6 6 - 30 50,000 - 300 300 300 300 300 - 1,500

Innovations with Grant Partners No - 1 1 1 1 - - 4 500,000 - 500 500 500 500 - - 2,000

Other Innovation Linkages No - 1 1 1 1 - - 4 300,000 - 300 300 300 300 - - 1,200

Total 1,330 19,647 20,647 20,022 15,647 13,747 10,442 101,482

_________________________________

\a cost of expanding new and tested technologies to farmers field

\b with UBFDB

\c Students from Business Schools

INDIA


Table 1.3. Innovation Linkages Other Accounts



I. Investment Costs


VPKAS Crop research /a 618 6,461 6,752 7,056 7,373 7,705 7,247 43,213 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) UGVS

GBPUAT Training & research - 2,671 2,791 2,917 - - - 8,380 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) UGVS

HARC citrus action research 639 2,671 2,791 2,188 - - - 8,290 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) UGVS

Livestock & poultry others - - 1,117 1,167 1,219 - - 3,503 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM(100%) UGVS

Non-farm & Market Development- Pilots /b - 3,206 3,350 3,501 3,658 3,823 3,995 21,531 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) UGVS

Action Research on NTFP value chain - 2,137 2,233 2,334 2,439 2,548 2,663 14,354 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) UGVS

Action Research on Organic value chain - 1,603 1,675 1,750 1,829 1,911 - 8,768 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) UGVS

Action Research on eco-tourism value chain 102 1,069 1,117 1,167 1,219 1,147 - 5,820 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) UGVS

Action Research with Business Schools /c - 321 335 350 366 382 - 1,754 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) UGVS

Innovations with Grant Partners - 534 558 583 610 - - 2,286 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) UGVS

Other Innovation Linkages - 321 335 350 366 - - 1,371 LIVE_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) UGVS

Total 1,360 20,993 23,054 23,363 19,079 17,517 13,905 119,270

_________________________________

\a cost of expanding new and tested technologies to farmers field

\b with UBFDB

\c Students from Business Schools


42

TABLE-1.4: VOCATIONAL TRAINING-BASELINE COSTS

TABLE-1.4: VOCATIONAL TRAINING-TOTAL COSTS & FINANCING RULES

INDIA


Table 1.4. Vocational Training



I. Investment Costs

A. Vocational Training

Planning study for vocational training study 1 - - - - - - 1 2,000,000 2,000 - - - - - - 2,000

Support to Youth for vocational training candidate - 1,000 2,000 2,000 2,000 2,000 1,000 10,000 20,000 - 20,000 40,000 40,000 40,000 40,000 20,000 200,000

Facilitation fees to resource agency student - 1,000 2,000 2,000 2,000 2,000 1,000 10,000 500 - 500 1,000 1,000 1,000 1,000 500 5,000

Total 2,000 20,500 41,000 41,000 41,000 41,000 20,500 207,000

INDIA


Table 1.4. Vocational Training Other Accounts



I. Investment Costs


Planning study for vocational training 2,000 - - - - - - 2,000 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Support to Youth for vocational training - 20,000 40,000 40,000 40,000 40,000 20,000 200,000 CB_EA CB_DA IFAD ( 75% ), BEN (25%) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Facilitation fees to resource agency - 500 1,000 1,000 1,000 1,000 500 5,000 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Total 2,000 20,500 41,000 41,000 41,000 41,000 20,500 207,000


43

TABLE-1.5: UGVS PROJECT MANAGEMENT UNIT-BASELINE COSTS

INDIA


Table 1.5. UGVS Project Management unit



I. Investment Costs

A. State level unit

1. Vehicles

Field vehicle No - 2 - - - - - 2 600,000 - 1,200 - - - - - 1,200

Motor cycles No - - - - - - - - - - - - - - - -

Subtotal Vehicles - 1,200 - - - - - 1,200

2. Office Equipment

Computers No - 4 - - - - - 4 40,000 - 160 - - - - - 160

Laptops No - 8 - - - - - 8 40,000 - 320 - - - - - 320

Printers-multifunction No - - - - 2 - - 2 75,000 - - - - 150 - - 150

Printers No - - - - 2 - - 2 10,000 - - - - 20 - - 20

Subtotal Office Equipment - 480 - - 170 - - 650

3. TA & Staff Training

Consultants pers_month 15 60 60 60 60 60 60 375 30,000 450 1,800 1,800 1,800 1,800 1,800 1,800 11,250

Staff Training Lumpsum 2 1 1 1 1 1 - 7 100,000 200 100 100 100 100 100 - 700

Study tours Number 1 2 2 2 2 1 - 10 500,000 500 1,000 1,000 1,000 1,000 500 - 5,000

Annual retreat Number - 1 1 1 1 1 1 6 1,000,000 - 1,000 1,000 1,000 1,000 1,000 1,000 6,000

Subtotal TA & Staff Training 1,150 3,900 3,900 3,900 3,900 3,400 2,800 22,950

Subtotal State level unit 1,150 5,580 3,900 3,900 4,070 3,400 2,800 24,800

B. Divisional level

1. Field vehicles

Field vehicle No - 7 - - - - - 7 600,000 - 4,200 - - - - - 4,200

Motor cycles No - 20 - - - - - 20 60,000 - 1,200 - - - - - 1,200

Subtotal Field vehicles - 5,400 - - - - - 5,400

2. Office Equipment

Computers No - - 6 - - - - 6 40,000 - - 240 - - - - 240

Laptops No - - 6 - - - - 6 40,000 - - 240 - - - - 240

Printers-multifunction No - - - - 6 - - 6 75,000 - - - - 450 - - 450

Printers No - - - - 12 - - 12 10,000 - - - - 120 - - 120

Other equipment No - 6 - 6 - - - 12 100,000 - 600 - 600 - - - 1,200

Subtotal Office Equipment - 600 480 600 570 - - 2,250


Training NGO & UGVS staff course 2 4 - - - - - 6 100,000 200 400 - - - - - 600

Subtotal Divisional level 200 6,400 480 600 570 - - 8,250

Total Investment Costs 1,350 11,980 4,380 4,500 4,640 3,400 2,800 33,050


44


INDIA





II. Recurrent Costs

A. State level

1. Staff salary

Project Director /a pers_month - 12 12 12 12 12 12 72 150,000 - 1,800 1,800 1,800 1,800 1,800 1,800 10,800

Chief Programme Manager/DPD pers_month - 12 12 12 12 12 12 72 95,000 - 1,140 1,140 1,140 1,140 1,140 1,140 6,840

Chief /Convergence Officer pers_month - 12 12 12 12 12 12 72 75,000 - 900 900 900 900 900 900 5,400

Programme Manager-Gender & Institutions pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

Programme Manager-Market Access pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

Programme Manager-Agri/horti /b pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

Audit Manager-UGVS pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

Finance Manager pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

HR Manager pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

Programme Manager-Tourism pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

Asst Manager: Finance pers_month - 24 24 24 24 24 24 144 35,000 - 840 840 840 840 840 840 5,040

Assistant - Finance pers_month - 24 24 24 24 24 24 144 16,500 - 396 396 396 396 396 396 2,376

Project Assistant pers_month - 48 48 48 48 48 48 288 16,500 - 792 792 792 792 792 792 4,752

Drivers pers_month - 36 36 36 36 36 36 216 14,000 - 504 504 504 504 504 504 3,024

Attendants pers_month - 24 24 24 24 24 24 144 12,000 - 288 288 288 288 288 288 1,728

Security Guards pers_month - 24 24 24 24 24 24 144 12,000 - 288 288 288 288 288 288 1,728

Subtotal Staff salary - 11,568 11,568 11,568 11,568 11,568 11,568 69,408

2. Operating costs

Staff travel allowance month 3 12 12 12 12 12 12 75 160,000 480 1,920 1,920 1,920 1,920 1,920 1,920 12,000

Office operating costs month 3 12 12 12 12 12 12 75 250,000 750 3,000 3,000 3,000 3,000 3,000 3,000 18,750

Office rent month - 12 12 12 12 12 12 72 80,000 - 960 960 960 960 960 960 5,760

Subtotal Operating costs 1,230 5,880 5,880 5,880 5,880 5,880 5,880 36,510

Subtotal State level 1,230 17,448 17,448 17,448 17,448 17,448 17,448 105,918


45


INDIA





II. Recurrent Costs

B. Divisional level

1. Staff salary

Divisional Project Managers pers_month - 72 72 72 72 72 72 432 50,000 - 3,600 3,600 3,600 3,600 3,600 3,600 21,600

Asst Managers-Market Access & tourism pers_month - 72 72 72 72 72 72 432 32,000 - 2,304 2,304 2,304 2,304 2,304 2,304 13,824

Asst Managers- Finance pers_month - 72 72 72 72 72 72 432 32,000 - 2,304 2,304 2,304 2,304 2,304 2,304 13,824

Asst Manager-Agri/horticulture pers_month - 72 72 72 72 72 72 432 32,000 - 2,304 2,304 2,304 2,304 2,304 2,304 13,824

Asst Manager-Institutions & Gender pers_month - 72 72 72 72 72 72 432 32,000 - 2,304 2,304 2,304 2,304 2,304 2,304 13,824

Asst Managers-Planning & M&E pers_month - 72 72 72 72 72 72 432 32,000 - 2,304 2,304 2,304 2,304 2,304 2,304 13,824

Internal Auditors pers_month - 72 72 72 72 72 72 432 25,000 - 1,800 1,800 1,800 1,800 1,800 1,800 10,800

Assistants pers_month - 288 288 288 288 288 288 1,728 16,500 - 4,752 4,752 4,752 4,752 4,752 4,752 28,512

Drivers pers_month - 144 144 144 144 144 144 864 14,000 - 2,016 2,016 2,016 2,016 2,016 2,016 12,096

Attendants pers_month - 288 288 288 288 288 288 1,728 12,000 - 3,456 3,456 3,456 3,456 3,456 3,456 20,736

Security Guards pers_month - 144 144 144 144 144 144 864 12,000 - 1,728 1,728 1,728 1,728 1,728 1,728 10,368


2. Operating costs

Staff travel allowance month 3 72 72 72 72 72 72 435 100,000 300 7,200 7,200 7,200 7,200 7,200 7,200 43,500

Office operating costs month 3 72 72 72 72 72 72 435 90,000 270 6,480 6,480 6,480 6,480 6,480 6,480 39,150

Office rent month - 72 72 72 72 72 72 432 30,000 - 2,160 2,160 2,160 2,160 2,160 2,160 12,960

Subtotal Operating costs 570 15,840 15,840 15,840 15,840 15,840 15,840 95,610

Subtotal Divisional level 570 44,712 44,712 44,712 44,712 44,712 44,712 268,842


Total 3,150 74,140 66,540 66,660 66,800 65,560 64,960 407,810

_________________________________

\a PD, UGVS will also act as Project Coordinator for ILSP

\b Or Technical Officer


46

TABLE-1.5: UGVS PROJECT MANAGEMENT UNIT-TOTAL COSTS & FINANCING RULES

INDIA


Table 1.5. UGVS Project Management unit Other Accounts



I. Investment Costs

A. State level unit

1. Vehicles

Field vehicle - 1,282 - - - - - 1,282 VEHIC_EA VEM_DA IFAD ( 75% ) VEHIC_PA LCL_SHOPPING_PM (100%) UGVS

Motor cycles - - - - - - - - VEHIC_EA VEM_DA IFAD ( 75% ) VEHIC_PA LCL_SHOPPING_PM (100%) UGVS

Subtotal Vehicles - 1,282 - - - - - 1,282

2. Office Equipment

Computers - 171 - - - - - 171 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Laptops - 342 - - - - - 342 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Printers-multifunction - - - - 183 - - 183 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Printers - - - - 24 - - 24 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Subtotal Office Equipment - 513 - - 207 - - 720


Consultants 460 1,923 2,010 2,100 2,195 2,294 2,397 13,379 TA_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Staff Training 205 107 112 117 122 127 - 789 TRAIN_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Study tours 511 1,069 1,117 1,167 1,219 637 - 5,720 CB_EA CB_DA IFAD ( 90% ) CB_PA FOR_ACCOUNT_PM (100%) UGVS

Annual retreat - 1,069 1,117 1,167 1,219 1,274 1,332 7,177 CB_EA CB_DA IFAD ( 90% ) CB_PA FOR_ACCOUNT_PM (100%) UGVS

Subtotal TA & Staff Training 1,176 4,167 4,355 4,551 4,755 4,332 3,728 27,065

Subtotal State level unit 1,176 5,962 4,355 4,551 4,963 4,332 3,728 29,067

B. Divisional level

1. Field vehicles

Field vehicle - 4,488 - - - - - 4,488 VEHIC_EA VEM_DA IFAD ( 75% ) VEHIC_PA LCB_PM(100%) UGVS

Motor cycles - 1,282 - - - - - 1,282 VEHIC_EA VEM_DA IFAD ( 75% ) VEHIC_PA LCB_PM(100%) UGVS

Subtotal Field vehicles - 5,770 - - - - - 5,770

2. Office Equipment

Computers - - 268 - - - - 268 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Laptops - - 268 - - - - 268 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Printers-multifunction - - - - 549 - - 549 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Printers - - - - 146 - - 146 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Other equipment - 641 - 700 - - - 1,341 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Subtotal Office Equipment - 641 536 700 695 - - 2,572


Training NGO & UGVS staff 205 427 - - - - - 632 TRAIN_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Subtotal Divisional level 205 6,838 536 700 695 - - 8,974



47


INDIA





II. Recurrent Costs

A. State level

1. Staff salary

Project Director /a - 1,923 2,010 2,100 2,195 2,294 2,397 12,919 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Chief Programme Manager/DPD - 1,218 1,273 1,330 1,390 1,453 1,518 8,182 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Chief /Convergence Officer - 962 1,005 1,050 1,097 1,147 1,198 6,459 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Programme Manager-Gender & Institutions - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Programme Manager-Market Access - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Programme Manager-Agri/horti /b - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Audit Manager-UGVS - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Finance Manager - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

HR Manager - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Programme Manager-Tourism - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Asst Manager: Finance - 898 938 980 1,024 1,070 1,119 6,029 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Assistant - Finance - 423 442 462 483 505 527 2,842 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Project Assistant - 846 884 924 966 1,009 1,055 5,684 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Drivers - 539 563 588 615 642 671 3,617 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Attendants - 308 322 336 351 367 383 2,067 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Security Guards - 308 322 336 351 367 383 2,067 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS


2. Operating costs

Staff travel allowance 491 2,052 2,144 2,240 2,341 2,447 2,557 14,271 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UGVS

Office operating costs 767 3,206 3,350 3,501 3,658 3,823 3,995 22,298 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UGVS

Office rent - 1,026 1,072 1,120 1,171 1,223 1,278 6,890 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UGVS

Subtotal Operating costs 1,258 6,283 6,566 6,861 7,170 7,492 7,830 43,459

Subtotal State level 1,258 18,643 19,482 20,359 21,275 22,233 23,233 126,483


48


INDIA





II. Recurrent Costs

B. Divisional level

1. Staff salary

Divisional Project Managers - 3,847 4,020 4,201 4,390 4,587 4,794 25,837 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Asst Managers-Market Access & tourism - 2,462 2,573 2,688 2,809 2,936 3,068 16,536 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Asst Managers- Finance - 2,462 2,573 2,688 2,809 2,936 3,068 16,536 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Asst Manager-Agri/horticulture - 2,462 2,573 2,688 2,809 2,936 3,068 16,536 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Asst Manager-Institutions & Gender - 2,462 2,573 2,688 2,809 2,936 3,068 16,536 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Asst Managers-Planning & M&E - 2,462 2,573 2,688 2,809 2,936 3,068 16,536 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Internal Auditors - 1,923 2,010 2,100 2,195 2,294 2,397 12,919 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Assistants - 5,078 5,306 5,545 5,794 6,055 6,328 34,105 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Drivers - 2,154 2,251 2,352 2,458 2,569 2,684 14,469 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Attendants - 3,693 3,859 4,033 4,214 4,404 4,602 24,804 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Security Guards - 1,846 1,929 2,016 2,107 2,202 2,301 12,402 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS


2. Operating costs

Staff travel allowance 307 7,693 8,039 8,401 8,779 9,174 9,587 51,982 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UGVS

Office operating costs 276 6,924 7,236 7,561 7,901 8,257 8,629 46,784 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UGVS

Office rent - 2,308 2,412 2,520 2,634 2,752 2,876 15,502 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UGVS


Subtotal Divisional level 583 47,775 49,925 52,172 54,520 56,973 59,537 321,485


Total 3,221 79,220 74,298 77,782 81,453 83,538 86,498 486,009

_________________________________

\a PD, UGVS will also act as Project Coordinator for ILSP

\b Or Technical Officer


49

TABLE-3.1: LIVELIHOOD FINANCE-BASELINE COSTS

INDIA


Table 3.1. Livelihood Finance



I. Investment Costs

A. Vehicles

Field vehicle No - 1 - - - - - 1 600,000 - 600 - - - - - 600

B. Financial initiatives

Security support to BF No - 5 6 - - - - 11 25,000 - 125 150 - - - - 275

Operational Support to BF No - 5 6 - - - - 11 60,000 - 300 360 - - - - 660

Product literacy training LC 10 70 10 20 20 - - 130 10,000 100 700 100 200 200 - - 1,300

Product literacy training materials LC 10 70 10 20 30 - - 140 2,000 20 140 20 40 60 - - 280

Subtotal Financial initiatives 120 1,265 630 240 260 - - 2,515

C. Risk Management

Insurance premium study LS - 1 - - - - - 1 500,000 - 500 - - - - - 500

Risk insurance workshop LS - 2 - - - - - 2 100,000 - 200 - - - - - 200

Risk insurance implementation support LS - - 6 - - - - 6 500,000 - - 3,000 - - - - 3,000

Subtotal Risk Management - 700 3,000 - - - - 3,700

D. Banking Initiatives

Training LCs on banking product No - 5 - 6 - - - 11 100,000 - 500 - 600 - - - 1,100

Workshop: districts and state No 3 7 12 12 12 - - 46 15,000 45 105 180 180 180 - - 690

Training LC on Appraisal skills /a No 5 5 6 6 - - - 22 150,000 750 750 900 900 - - - 3,300

Bankers Exposure visits No 1 - 1 - - - - 2 300,000 300 - 300 - - - - 600

Bank linkage through PACs strengthening PACs - - 2 6 - - - 8 150,000 - - 300 900 - - - 1,200

Bank linkage through PACs strengthening PACs - - - 2 6 - - 8 100,000 - - - 200 600 - - 800

Branch Expansion Support-RFI branches - 6 6 - - - - 12 100,000 - 600 600 - - - - 1,200

Branch expansion support-RFI /b branches - - 6 6 - - - 12 100,000 - - 600 600 - - - 1,200

Impact study on RFI study - - - 1 - - - 1 500,000 - - - 500 - - - 500

Subtotal Banking Initiatives 1,095 1,955 2,880 3,880 780 - - 10,590

E. Fund support to LC

Viability Gap Fund to LC No - 10 10 20 30 30 - 100 200,000 - 2,000 2,000 4,000 6,000 6,000 - 20,000

Grant to PG/SHG /c LS - 250 250 500 1,000 1,000 - 3,000 15,000 - 3,750 3,750 7,500 15,000 15,000 - 45,000

Subtotal Fund support to LC - 5,750 5,750 11,500 21,000 21,000 - 65,000

F. Development Financing

Development financing Lumpsum - - 30,000 30,000 10,000 - - 70,000

Leveraged credit for SMEs Lumpsum - 10 50 100 200 200 - 560 200,000 - 2,000 10,000 20,000 40,000 40,000 - 112,000

Term loans to micro-enterprises No - 100 500 1,000 2,000 2,500 - 6,100 75,000 - 7,500 37,500 75,000 150,000 187,500 - 457,500

Cash-credit limits to SHGs No - 100 300 500 1,000 1,560 - 3,460 50,000 - 5,000 15,000 25,000 50,000 78,000 - 173,000

Kisan credit cards No - 500 1,000 2,000 3,000 3,000 - 9,500 25,000 - 12,500 25,000 50,000 75,000 75,000 - 237,500

Subtotal Development Financing - 27,000 117,500 200,000 325,000 380,500 - 1,050,000

Total Investment Costs 1,215 37,270 129,760 215,620 347,040 401,500 - 1,132,405


50

TABLE-3.1: LIVELIHOOD FINANCE-BASELINE COSTS

INDIA





II. Recurrent Costs

A. UPASAC Management

1. Staff Salary

Managing Director /d pers_month 3 12 12 12 12 12 12 75 - - - - - - - -

Chief Executive Officer Pers_month 3 12 12 12 12 12 12 75 100,000 300 1,200 1,200 1,200 1,200 1,200 1,200 7,500

Manager Development Finance Pers_month 3 12 12 12 12 12 12 75 75,000 225 900 900 900 900 900 900 5,625

Deputy Manager Finance Pers_month 3 12 12 12 12 12 12 75 50,000 150 600 600 600 600 600 600 3,750

Rural Finance Coordinators /e Pers_month 30 72 72 120 120 120 120 654 25,000 750 1,800 1,800 3,000 3,000 3,000 3,000 16,350

Assistant Pers_month 6 12 12 12 12 12 12 78 15,000 90 180 180 180 180 180 180 1,170

Driver pers_month 3 12 12 12 12 12 12 75 14,000 42 168 168 168 168 168 168 1,050

Subtotal Staff Salary 1,557 4,848 4,848 6,048 6,048 6,048 6,048 35,445

2. Other expenditures

Staff travelling allowancee month 3 12 12 12 12 12 12 75 80,000 240 960 960 960 960 960 960 6,000

Office operating costs /f month 3 12 12 12 12 12 12 75 100,000 300 1,200 1,200 1,200 1,200 1,200 1,200 7,500

Office rent month 3 12 12 12 12 12 12 75 50,000 150 600 600 600 600 600 600 3,750

Subtotal Other expenditures 690 2,760 2,760 2,760 2,760 2,760 2,760 17,250


Total 3,462 44,878 137,368 224,428 355,848 410,308 8,808 1,185,100

_________________________________

\a Training bank staff

\b Support for the second year

\c Grant support under Entrepreneurship scheme

\d PD UGVS will act as the Managing Director of UPASAC

\e to be attached to Divisional Offices

\f at 3% of project appraisal values payable to consultants


51

TABLE-3.1: LIVELIHOOD FINANCE-TOTAL COSTS & FINANCING RULES

INDIA


Table 3.1. Livelihood Finance Other Accounts

Detailed Costs Totals Including Contingencies (INR '000) Expenditure Impl.

12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total Account Disb. Acct. Fin. Rule Proc. Acct. Proc. Method Agency

I. Investment Costs

A. Vehicles

Field vehicle - 641 - - - - - 641 VEHIC_EA VEM_DA IFAD ( 75% ) VEHIC_PA LCB_PM(100%) UPASAC

B. Financial initiatives

Security support to BF - 134 167 - - - - 301 CB_EA CB_DA IFAD ( 90% ), BEN ( 10% ) CB_PA LCL_SHOPPING_PM ( 100% ) UPASAC

Operational Support to BF - 321 402 - - - - 723 CB_EA CB_DA IFAD ( 90% ), BEN ( 10% ) CB_PA LCL_SHOPPING_PM ( 100% ) UPASAC

Product literacy training 102 748 112 233 244 - - 1,439 TRAIN_EA CB_DA IFAD ( 90% ), BEN ( 10% ) TRAIN_PA LCL_SHOPPING_PM (100%) UPASAC

Product literacy training materials 20 150 22 47 73 - - 312 EQUIP_EA CB_DA IFAD ( 90% ) EQUIP_PA LCL_SHOPPING_PM(100%) UPASAC

Subtotal Financial initiatives 123 1,352 703 280 317 - - 2,775

C. Risk Management

Insurance premium study - 500 - - - - - 500 FINANCE_EA FINANCE_DA GOVT FINANCING_PA NBF_PM ( 100% ) UPASAC

Risk insurance workshop - 214 - - - - - 214 TRAIN_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UPASAC

Risk insurance implementation support - - 3,350 - - - - 3,350 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UPASAC

Subtotal Risk Management - 714 3,350 - - - - 4,063

D. Banking Initiatives

Training LCs on banking product - 534 - 700 - - - 1,234 TRAIN_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UPASAC

Workshop: districts and state 46 112 201 210 219 - - 789 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UPASAC

Training LC on Appraisal skills /a 767 801 1,005 1,050 - - - 3,623 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UPASAC

Bankers Exposure visits 307 - 335 - - - - 642 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UPASAC

Bank linkage through PACs strengthening - - 335 1,050 - - - 1,385 CB_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UPASAC

Bank linkage through PACs strengthening - - - 233 732 - - 965 CB_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UPASAC

Branch Expansion Support-RFI - 641 670 - - - - 1,311 CB_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) UPASAC

Branch expansion support-RFI /b - - 670 700 - - - 1,370 CB_EA CB_DA IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) UPASAC

Impact study on RFI - - - 583 - - - 583 SURVEY_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM (100%) UPASAC

Subtotal Banking Initiatives 1,120 2,089 3,216 4,527 951 - - 11,903

E. Fund support to LC

Viability Gap Fund to LC - 2,000 2,000 4,000 6,000 6,000 - 20,000 FUND_EA FINANCE_DA IFAD ( 100% ) FUND_PA DIR_CONTRACT_PM (100%) UPASAC

Grant to PG/SHG /c - 3,750 3,750 7,500 15,000 15,000 - 45,000 FINANCE_EA FINANCE_DA GOVT FINANCING_PA NBF_PM ( 100% ) UPASAC

Subtotal Fund support to LC - 5,750 5,750 11,500 21,000 21,000 - 65,000

F. Development Financing

Development financing - - 30,000 30,000 10,000 - - 70,000 FINANCE_EA FINANCE_DA GOVT FINANCING_PA NBF_PM ( 100% ) UPASAC

Leveraged credit for SMEs - 2,000 10,000 20,000 40,000 40,000 - 112,000 FINANCE_EA FINANCE_DA BANKS ( 90% ), BEN (10%) FINANCING_PA NBF_PM ( 100% ) UPASAC

Term loans to micro-enterprises - 7,500 37,500 75,000 150,000 187,500 - 457,500 FINANCE_EA FINANCE_DA BANKS (90%), BEN (10%) FINANCING_PA NBF_PM ( 100% ) UPASAC

Cash-credit limits to SHGs - 5,000 15,000 25,000 50,000 78,000 - 173,000 FINANCE_EA FINANCE_DA BANKS ( 100% ) FINANCING_PA NBF_PM ( 100% ) UPASAC

Kisan credit cards - 12,500 25,000 50,000 75,000 75,000 - 237,500 FINANCE_EA FINANCE_DA BANKS ( 100% ) FINANCING_PA NBF_PM ( 100% ) UPASAC

Subtotal Development Financing - 27,000 117,500 200,000 325,000 380,500 - 1,050,000

Total Investment Costs 1,242 37,545 130,519 216,307 347,268 401,500 - 1,134,382


52

TABLE-3.1: LIVELIHOOD FINANCE-TOTAL COSTS & FINANCING RULES

INDIA


Table 3.1. Livelihood Finance Other Accounts

Detailed Costs Totals Including Contingencies (INR '000) Expenditure Impl.

12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total Account Disb. Acct. Fin. Rule Proc. Acct. Proc. Method Agency

II. Recurrent Costs

A. UPASAC Management

1. Staff Salary

Managing Director /d - - - - - - - - SAA_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM (100%) UPASAC

Chief Executive Officer 307 1,282 1,340 1,400 1,463 1,529 1,598 8,919 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UPASAC

Manager Development Finance 230 962 1,005 1,050 1,097 1,147 1,198 6,689 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UPASAC

Deputy Manager Finance 153 641 670 700 732 765 799 4,460 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UPASAC

Rural Finance Coordinators /e 767 1,923 2,010 3,501 3,658 3,823 3,995 19,676 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UPASAC

Assistant 92 192 201 210 219 229 240 1,384 SAA_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM (100%) UPASAC

Driver 43 180 188 196 205 214 224 1,249 SAA_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM (100%) UPASAC

Subtotal Staff Salary 1,592 5,180 5,413 7,057 7,375 7,706 8,053 42,377

2. Other expenditures

Staff travelling allowancee 245 1,026 1,072 1,120 1,171 1,223 1,278 7,135 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UPASAC

Office operating costs /f 307 1,282 1,340 1,400 1,463 1,529 1,598 8,919 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UPASAC

Office rent 153 641 670 700 732 765 799 4,460 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) UPASAC

Subtotal Other expenditures 706 2,949 3,082 3,220 3,365 3,517 3,675 20,514


Total 3,540 45,675 139,014 226,585 358,008 412,723 11,728 1,197,273

_________________________________

\a Training bank staff

\b Support for the second year

\c Grant support under Entrepreneurship scheme

\d PD UGVS will act as the Managing Director of UPASAC

\e to be attached to Divisional Offices

\f at 3% of project appraisal values payable to consultants


53

TABLE-4.1: CENTRAL PROJECT COORDINATION UNIT-BASELINE COSTS

INDIA


Table 4.1. Central Project Coordination Unit



I. Investment Costs

A. CPCU

1. Office Equipment

Computers /Laptops No - 4 - - - - - 4 40,000 - 160 - - - - - 160

Multifunction Printers N0 - 1 - - - - - 1 75,000 - 75 - - - - - 75

Printers No - 2 - - - - - 2 10,000 - 20 - - - - - 20

Office furniture set - 1 - - - - - 1 150,000 - 150 - - - - - 150

Subtotal Office Equipment - 405 - - - - - 405

2. External audits /a Number - 1 1 1 1 1 1 6 1,000,000 - 1,000 1,000 1,000 1,000 1,000 1,000 6,000

Total Investment Costs - 1,405 1,000 1,000 1,000 1,000 1,000 6,405

II. Recurrent Costs

A. PCU

1. Staff salary

Project Coordinator /b pers_month - 12 12 12 12 12 12 72 - - - - - - - -

Finance Controller pers_month 3 12 12 12 12 12 12 75 100,000 300 1,200 1,200 1,200 1,200 1,200 1,200 7,500

Asst Manager-Finance pers_month - 12 12 12 12 12 12 72 32,000 - 384 384 384 384 384 384 2,304

Stenographer pers_month 3 12 12 12 12 12 12 72 20,000 60 240 240 240 240 240 240 1,500

Project Assistants Pers_month - 12 12 12 12 12 12 72 16,500 - 198 198 198 198 198 198 1,188

Subtotal Staff salary 360 2,022 2,022 2,022 2,022 2,022 2,022 12,492

2. PCU Operating costs

Office operating costs month - 12 12 12 12 12 12 72 40,000 - 480 480 480 480 480 480 2,880

Vehicle hiring month - 12 12 12 12 12 12 72 50,000 - 600 600 600 600 600 600 3,600

Subtotal PCU Operating costs - 1,080 1,080 1,080 1,080 1,080 1,080 6,480

Total 360 4,507 4,102 4,102 4,102 4,102 4,102 25,377

_________________________________

\a Audits of UGVS, UPASAC, LC, Federations etc

\b PD UGVS will also act as Project Coordinator


54

TABLE-4.1: CENTRAL PROJECT COORDINATION UNIT-TOTAL COSTS & FINANCING RULES

INDIA


Table 4.1. Central Project Coordination Unit Other Accounts



I. Investment Costs

A. CPCU

1. Office Equipment

Computers /Laptops - 171 - - - - - 171 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Multifunction Printers - 80 - - - - - 80 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Printers - 21 - - - - - 21 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Office furniture - 160 - - - - - 160 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Subtotal Office Equipment - 433 - - - - - 433

2. External audits /a - 1,069 1,117 1,167 1,219 1,274 1,332 7,177 LIVE_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) UGVS

Total Investment Costs - 1,501 1,117 1,167 1,219 1,274 1,332 7,610

II. Recurrent Costs

A. PCU

1. Staff salary

Project Coordinator /b - - - - - - - - SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) RDD

Finance Controller 307 1,282 1,340 1,400 1,463 1,529 1,598 8,919 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) RDD

Asst Manager-Finance - 410 429 448 468 489 511 2,756 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) RDD

Stenographer 62 256 268 280 293 306 320 1,784 SAA_EA OM_DA IFAD (50%) SAA_PA OTHER_PM (100%) RDD

Project Assistants - 212 221 231 241 252 264 1,421 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) RDD

Subtotal Staff salary 369 2,161 2,258 2,359 2,466 2,576 2,692 14,880

2. PCU Operating costs

Office operating costs - 513 536 560 585 612 639 3,445 OM_EA OM_DA IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) RDD

Vehicle hiring - 641 670 700 732 765 799 4,306 OM_EA OM_DA IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) RDD

Subtotal PCU Operating costs - 1,154 1,206 1,260 1,317 1,376 1,438 7,751

Total 369 4,816 4,580 4,786 5,002 5,227 5,462 30,241

_________________________________

\a Audits of UGVS, UPASAC, LC, Federations etc

\b PD UGVS will also act as Project Coordinator


55

TABLE-4.2: M&E AND KNOWLEDGE MANAGEMENT-BASELINE COSTS

INDIA


Table 4.2. M&E and Knowledge Management_UGVS



I. Investment Costs

A. Vehicle & equipment

1. Office equipment

Computers/Laptops No 10 - - - - - - 10 40,000 400 - - - - - - 400

Printers-Multiffunction No 1 - - - - - - 1 75,000 75 - - - - - - 75

Printers No 7 - - - - - - 7 10,000 70 - - - - - - 70

Data-enabled Mobile phones /a No 20 - - - - - - 20 10,000 200 - - - - - - 200

Furniture & miscellaneous Lumpsum 1 - - - - - - 1 300,000 300 - - - - - - 300

Subtotal Office equipment 1,045 - - - - - - 1,045

B. Training & workshops

1. Monthly Review meetings

At Block level /b meetings - 104 104 104 104 104 104 624 2,000 - 208 208 208 208 208 208 1,248

At Division level meetings 12 24 24 24 24 24 24 156 20,000 240 480 480 480 480 480 480 3,120

At State level meetings 2 4 4 4 4 4 4 26 50,000 100 200 200 200 200 200 200 1,300

State level PMC, GB & PSC meetings 3 6 6 6 6 6 6 39 10,000 30 60 60 60 60 60 60 390

Subtotal Monthly Review meetings 370 948 948 948 948 948 948 6,058

2. Quarterly learning/sharing workshops

at Block level meetings - 52 52 52 52 52 52 312 5,000 - 260 260 260 260 260 260 1,560

at Divisional level meetings - 6 6 6 6 6 6 36 20,000 - 120 120 120 120 120 120 720

at State level meetings - 4 4 4 4 4 4 24 100,000 - 400 400 400 400 400 400 2,400

Subtotal Quarterly learning/sharing workshops - 780 780 780 780 780 780 4,680

3. Workshops

Project start up WS /c No 1 - - - - - - 1 225,000 225 - - - - - - 225

Divisional startup workshops participants 6 - - - - - - 6 100,000 600 - - - - - - 600

Mid-term review /d Review - - - 1 - - - 1 225,000 - - - 225 - - - 225

Project completion review /e PCR - - - - - - 1 1 225,000 - - - - - - 225 225

Subtotal Workshops 825 - - 225 - - 225 1,275

4. Training & TA

KM documentation /f course - 1 1 1 1 1 1 6 100,000 - 100 100 100 100 100 100 600

knowledge sharing tools course - - 1 - 1 - - 2 100,000 - - 100 - 100 - - 200

RIMS & M-E training at state level course - 1 - - 1 - - 2 100,000 - 100 - - 100 - - 200

RIMS/M&E training at Divn level course - 1 - - 1 - - 2 100,000 - 100 - - 100 - - 200

Annual Outcome Survey survey - 1 1 1 1 1 1 6 50,000 - 50 50 50 50 50 50 300

KAPs survey /g survey - - 1 - - - - 1 225,000 - - 225 - - - - 225

Technical assistance /h year - 1 1 1 1 1 1 6 200,000 - 200 200 200 200 200 200 1,200

Subtotal Training & TA - 550 675 350 650 350 350 2,925

5. Studies & others

Communication materials LS 6 6 6 6 6 6 6 42 50,000 300 300 300 300 300 300 300 2,100

News letters & publications Lumpsum - 1 1 1 1 1 1 6 700,000 - 700 700 700 700 700 700 4,200

Website maintenance year - 1 1 1 1 1 1 6 5,000 - 5 5 5 5 5 5 30

Monitoring surveys /i survey 1 - - 1 - - 1 3 5,000,000 5,000 - - 5,000 - - 5,000 15,000

Subtotal Studies & others 5,300 1,005 1,005 6,005 1,005 1,005 6,005 21,330

Subtotal Training & workshops 6,495 3,283 3,408 8,308 3,383 3,083 8,308 36,268



56

TABLE-4.2: M&E AND KNOWLEDGE MANAGEMENT-BASELINE COSTS

INDIA





II. Recurrent Costs

A. Salary & Operating costs

1. Staff Salary

Planning/M&E Manager Pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

MIS Manager Pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

KM Manager Pers_month - 12 12 12 12 12 12 72 55,000 - 660 660 660 660 660 660 3,960

Statistical Officer Pers_month 3 12 12 12 12 12 12 75 50,000 150 600 600 600 600 600 600 3,750

Planning/ M&E Assistant Pers_month - 12 12 12 12 12 12 72 16,500 - 198 198 198 198 198 198 1,188

Project Assistants Pers_month 3 12 12 12 12 12 12 75 16,500 50 198 198 198 198 198 198 1,238

Enumerators Pers_month 36 144 144 144 144 144 144 900 10,000 360 1,440 1,440 1,440 1,440 1,440 1,440 9,000

Subtotal Staff Salary 560 4,416 4,416 4,416 4,416 4,416 4,416 27,056

2. Operating costs

Staff travelling allowance month 3 12 12 12 12 12 12 75 40,000 120 480 480 480 480 480 480 3,000

Office operating costs month 3 12 12 12 12 12 12 75 60,000 180 720 720 720 720 720 720 4,500

Vehicle hiring charges month 3 12 12 12 12 12 12 75 50,000 150 600 600 600 600 600 600 3,750



Total 8,550 9,499 9,624 14,524 9,599 9,299 14,524 75,619

_________________________________

\a For use by field enumerators

\b 4 meeting per year per Block

\c Some 50 participants take part

\d Some 25 staff participate at the time of MTR

\e some 60 staff participate

\f some 20 staff participate

\g some 20 persons participate

\h PME and anthropometric consultants

\i Baseline, mid-term and endline surveys


57

TABLE-4.2: M&E AND KNOWLEDGE MANAGEMENT-TOTAL COSTS & FINANCING RULES

INDIA


Table 4.2. M&E and Knowledge Management_UGVS Other Accounts



I. Investment Costs


1. Office equipment

Computers/Laptops 409 - - - - - - 409 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Printers-Multiffunction 77 - - - - - - 77 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Printers 72 - - - - - - 72 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Data-enabled Mobile phones /a 205 - - - - - - 205 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Furniture & miscellaneous 307 - - - - - - 307 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) UGVS

Subtotal Office equipment 1,069 - - - - - - 1,069



At Block level /b - 222 232 243 254 265 277 1,493 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) UGVS

At Division level 245 513 536 560 585 612 639 3,690 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

At State level 102 214 223 233 244 255 266 1,538 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

State level PMC, GB & PSC 31 64 67 70 73 76 80 461 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Subtotal Monthly Review meetings 378 1,013 1,059 1,106 1,156 1,208 1,262 7,182

2. Quarterly learning/sharing workshops

at Block level - 278 290 303 317 331 346 1,866 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

at Divisional level - 128 134 140 146 153 160 861 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

at State level - 427 447 467 488 510 533 2,871 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Subtotal Quarterly learning/sharing workshops - 833 871 910 951 994 1,039 5,598

3. Workshops

Project start up WS /c 230 - - - - - - 230 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Divisional startup workshops 614 - - - - - - 614 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Mid-term review /d - - - 263 - - - 263 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Project completion review /e - - - - - - 300 300 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS


4. Training & TA

KM documentation /f - 107 112 117 122 127 133 718 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

knowledge sharing tools - - 112 - 122 - - 234 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

RIMS & M-E training at state level - 107 - - 122 - - 229 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

RIMS/M&E training at Divn level - 107 - - 122 - - 229 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Annual Outcome Survey - 53 56 58 61 64 67 359 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

KAPs survey /g - - 251 - - - - 251 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Technical assistance /h - 214 223 233 244 255 266 1,435 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Subtotal Training & TA - 588 754 408 793 446 466 3,454

5. Studies & others

Communication materials 307 321 335 350 366 382 399 2,460 SURVEY_EA CB_DA IFAD ( 90% ) SURVEY_PA LCL_SHOPPING_PM(100%) UGVS

News letters & publications - 748 782 817 854 892 932 5,024 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Website maintenance - 5 6 6 6 6 7 36 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) UGVS

Monitoring surveys /i 5,113 - - 5,834 - - 6,658 17,605 SURVEY_EA CB_DA IFAD ( 90% ) SURVEY_PA LCB_PM ( 100% ) UGVS

Subtotal Studies & others 5,419 1,074 1,122 7,007 1,225 1,281 7,996 25,124




58

TABLE-4.2: M&E AND KNOWLEDGE MANAGEMENT-TOTAL COSTS & FINANCING RULES

INDIA


Table 4.2. M&E and Knowledge Management_UGVS Other Accounts



II. Recurrent Costs

A. Salary & Operating costs

1. Staff Salary

Planning/M&E Manager - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

MIS Manager - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

KM Manager - 705 737 770 805 841 879 4,737 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Statistical Officer 153 641 670 700 732 765 799 4,460 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Planning/ M&E Assistant - 212 221 231 241 252 264 1,421 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Project Assistants 51 212 221 231 241 252 264 1,472 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS

Enumerators 368 1,539 1,608 1,680 1,756 1,835 1,917 10,703 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) UGVS


2. Operating costs

Staff travelling allowance 123 513 536 560 585 612 639 3,568 OM_EA OM_DA IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) UGVS

Office operating costs 184 769 804 840 878 917 959 5,352 OM_EA OM_DA IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) UGVS

Vehicle hiring charges 153 641 670 700 732 765 799 4,460 OM_EA OM_DA IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) UGVS



Total 8,742 10,150 10,746 16,947 11,705 11,849 19,340 89,478

_________________________________

\a For use by field enumerators

\b 4 meeting per year per Block

\c Some 50 participants take part

\d Some 25 staff participate at the time of MTR

\e some 60 staff participate

\f some 20 staff participate

\g some 20 persons participate

\h PME and anthropometric consultants

\i Baseline, mid-term and endline surveys


59

Annex-1.3.2: Detailed Cost Estimates (WMD)


60

TABLE-2.1: PARTICIPATORY WAATERSHED MANAGEMENT-BASELINE COSTS

INDIA


Table 2.1. Participatory Watershed Management



I. Investment Costs

A. Social Mobilisation

NGO support for social mobilisation NGO 2 2 2 2 2 2 2 14 4,000,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 56,000

Social / Environmental Consultants No 2 2 2 2 2 2 2 14 600,000 1,200 1,200 1,200 1,200 1,200 1,200 1,200 8,400

Village level Motivators Person 700 700 700 700 700 700 700 4,900 24,000 16,800 16,800 16,800 16,800 16,800 16,800 16,800 117,600

Account Asst at GP level Person 275 275 275 275 275 275 275 1,925 60,000 16,500 16,500 16,500 16,500 16,500 16,500 16,500 115,500

Admin Expenditure Year 275 275 275 275 275 275 275 1,925 25,000 6,875 6,875 6,875 6,875 6,875 6,875 6,875 48,125

Subtotal Social Mobilisation 49,375 49,375 49,375 49,375 49,375 49,375 49,375 345,625

B. Watershed & Village Development

Watershed treatment /a GP 15 35 60 65 60 25 15 275 3,847,200 57,708 134,652 230,832 250,068 230,832 96,180 57,708 1,057,980

C. Food Security Enhancement Support

1. Farming system improvement

Support to PGs: first year PGs 780 780 780 780 780 - - 3,900 30,000 23,400 23,400 23,400 23,400 23,400 - - 117,000

Support to PG second year PG - 780 780 780 780 780 - 3,900 30,000 - 23,400 23,400 23,400 23,400 23,400 - 117,000

Support to PG third year PGs - - 780 780 780 780 780 3,900 30,000 - - 23,400 23,400 23,400 23,400 23,400 117,000

Miscellaneous GP 15 35 50 50 50 25 25 250 14,000 210 490 700 700 700 350 350 3,500

Subtotal Farming system improvement 23,610 47,290 70,900 70,900 70,900 47,150 23,750 354,500

2. Value Addition & marketing

Small infrastructure /b GP 15 35 60 65 60 25 15 275 450,000 6,750 15,750 27,000 29,250 27,000 11,250 6,750 123,750

Collection centres/MUC GP 15 35 60 65 60 25 15 275 200,000 3,000 7,000 12,000 13,000 12,000 5,000 3,000 55,000

Beneficiary contribution /c GP 15 35 60 65 60 25 15 275 112,000 1,680 3,920 6,720 7,280 6,720 2,800 1,680 30,800

NGO support for Agribusiness /d YEAR - - 1 1 1 1 1 5 9,000,000 - - 9,000 9,000 9,000 9,000 9,000 45,000

Subtotal Value Addition & marketing 11,430 26,670 54,720 58,530 54,720 28,050 20,430 254,550

Subtotal Food Security Enhancement Support 35,040 73,960 125,620 129,430 125,620 75,200 44,180 609,050

D. Livelihood upscaling

1. Promotion of IGA

Support to VG Person - 244 244 244 244 244 244 1,464 80,000 - 19,520 19,520 19,520 19,520 19,520 19,520 117,120

2. Support to LC for upscaling IGA

Support to LC for IGA upscaling No - - 14 14 14 14 14 70 500,000 - - 7,000 7,000 7,000 7,000 7,000 35,000

Miscellaneous Year 5,000 5,000 5,000 5,000 5,000 5,000 5,000 35,000

Subtotal Support to LC for upscaling IGA 5,000 5,000 12,000 12,000 12,000 12,000 12,000 70,000

Subtotal Livelihood upscaling 5,000 24,520 31,520 31,520 31,520 31,520 31,520 187,120

E. Institutional Strengthening

1. Capacity Building of GP & WWMCs

Social Training at village level Lumpsum 800 800 800 800 800 800 800 5,600 10,500 8,400 8,400 8,400 8,400 8,400 8,400 8,400 58,800

Technical Training at village level Lumpsum 800 800 800 800 800 800 800 5,600 10,500 8,400 8,400 8,400 8,400 8,400 8,400 8,400 58,800

Training on production technology Training 100 100 100 100 100 100 100 700 25,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 17,500

Training at Resource centres Trainings 15 15 15 15 15 15 15 105 100,000 1,500 1,500 1,500 1,500 1,500 1,500 1,500 10,500

Unit level workshop No 50 50 50 50 50 50 50 350 50,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 17,500

Divisional level workshop No 20 20 20 20 20 20 20 140 100,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 14,000

State level workshop Lumpsum 10 10 10 10 10 10 10 70 500,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 35,000

Exposure visit within state Lumpsum 1 1 1 1 1 1 1 7 3,000,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 21,000

Overseas exposure visits Lumpsum 1,250 1,250 1,250 1,250 1,250 1,250 1,250 8,750

Subtotal Capacity Building of GP & WWMCs 34,550 34,550 34,550 34,550 34,550 34,550 34,550 241,850


61

TABLE-2.1: PARTICIPATORY WAATERSHED MANAGEMENT-BASELINE COSTS

INDIA





2. Information, Education & Communication

IEC consultants Lumpsum 600 600 600 600 600 600 600 4,200

IEC materials Lumpsum 2,000 2,000 2,000 2,000 2,000 2,000 3,000 15,000

Subtotal Information, Education & Communication 2,600 2,600 2,600 2,600 2,600 2,600 3,600 19,200

Subtotal Institutional Strengthening 37,150 37,150 37,150 37,150 37,150 37,150 38,150 261,050

F. Project Management

Vehicles No 5 5 - - - - - 10 600,000 3,000 3,000 - - - - - 6,000

NGO support to M&E system /e Lumpsum - - - - - - - -

Annual Audit (External) year 1 1 1 1 1 1 1 7 500,000 500 500 500 500 500 500 500 3,500

Subtotal Project Management 3,500 3,500 500 500 500 500 500 9,500

Total Investment Costs 187,773 323,157 474,997 498,043 474,997 289,925 221,433 2,470,325

II. Recurrent Costs

A. Project Management

Staff salary /f Year 180,000 180,000 180,000 180,000 180,000 180,000 180,000 1,260,000

Audit Manager pers_month 3 12 12 12 12 12 12 75 55,000 165 660 660 660 660 660 660 4,125

Internal Auditors /g pers_month 3 24 24 24 24 24 24 147 55,000 165 1,320 1,320 1,320 1,320 1,320 1,320 8,085

Assistants pers_month 12 120 120 120 120 120 120 732 15,000 180 1,800 1,800 1,800 1,800 1,800 1,800 10,980

Project Allowance year 3,000 15,000 15,000 15,000 15,000 15,000 15,000 93,000

GIS/MIS/ watershed experts /h year 2,500 5,000 5,000 5,000 5,000 5,000 5,000 32,500

Travel Allowance year 2,500 5,000 5,000 5,000 5,000 5,000 5,000 32,500

Office expenditure year 3,500 7,000 7,000 7,000 7,000 7,000 7,000 45,500

Operating costs, equipment year 3,500 7,000 7,000 7,000 7,000 7,000 7,000 45,500

Miscellaneous year 1,250 2,500 2,500 2,500 2,500 2,500 2,500 16,250

Total Recurrent Costs 196,760 225,280 225,280 225,280 225,280 225,280 225,280 1,548,440

Total 384,533 548,437 700,277 723,323 700,277 515,205 446,713 4,018,765

_________________________________

\a Assuming a GP has 454 ha for treatment; with estimated cost of INR 8474/ha

\b Such as processing facilities etc

\c Estimated at 20%

\d 6 Divisional support agencies (DSAs) and 2 consultants;

\e See Table 4.3: M&E Cost Estimates for WMD

\f Staff at headquarters, 2 regions and 6 Divisions.

\g to be based at 2 Regional Offices of WMD

\h 6 Consultants to be based in WMD headquarters in Dehradun


62

TABLE-2.1: PARTICIPATORY WAATERSHED MANAGEMENT-TOTAL COSTS AND FINANCING RULES

INDIA


Table 2.1. Participatory Watershed Management Other Accounts



I. Investment Costs


NGO support for social mobilisation 8,180 8,548 8,933 9,335 9,755 10,194 10,652 65,597 SPC_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) WMD

Social / Environmental Consultants 1,227 1,282 1,340 1,400 1,463 1,529 1,598 9,839 TA_EA CB_DA IFAD ( 90% ) SURVEY_PA LCL_SHOPPING_PM(100%) WMD

Village level Motivators 17,178 17,951 18,759 19,603 20,485 21,407 22,370 137,753 CB_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) WMD

Account Asst at GP level 16,871 17,630 18,424 19,253 20,119 21,025 21,971 135,293 CB_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) WMD

Admin Expenditure 7,030 7,346 7,677 8,022 8,383 8,760 9,154 56,372 CB_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) WMD

Subtotal Social Mobilisation 50,486 52,758 55,132 57,613 60,205 62,915 65,746 404,854

B. Watershed & Village Development

Watershed treatment /a 59,006 143,877 257,746 291,790 281,465 122,555 76,842 1,233,281 WD_EA WD_DA IFAD ( 80% ), BEN ( 10% ) WD_PA CPP_PM ( 100% ) WMD

C. Food Security Enhancement Support


Support to PGs: first year 23,927 25,003 26,128 27,304 28,533 - - 130,895 LIVE_EA CB_DA IFAD ( 80% ), BEN ( 20% ) LIVE_PA FOR_ACCOUNT_PM(100%) WMD

Support to PG second year - 25,003 26,128 27,304 28,533 29,817 - 136,785 LIVE_EA CB_DA IFAD ( 80% ), BEN ( 20% ) LIVE_PA FOR_ACCOUNT_PM(100%) WMD

Support to PG third year - - 26,128 27,304 28,533 29,817 31,159 142,941 LIVE_EA CB_DA IFAD ( 80% ), BEN ( 20% ) LIVE_PA FOR_ACCOUNT_PM(100%) WMD

Miscellaneous 215 524 782 817 854 446 466 4,102 LIVE_EA CB_DA IFAD ( 80% ), BEN ( 20% ) LIVE_PA FOR_ACCOUNT_PM(100%) WMD

Subtotal Farming system improvement 24,141 50,530 79,167 82,729 86,452 60,080 31,625 414,723


Small infrastructure /b 6,902 16,829 30,148 34,130 32,922 14,335 8,988 144,255 CW_EA CB_DA IFAD ( 80% ), BEN ( 20% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Collection centres/MUC 3,068 7,480 13,399 15,169 14,632 6,371 3,995 64,113 CW_EA CB_DA IFAD ( 80% ), BEN ( 20% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Beneficiary contribution /c 1,718 4,189 7,504 8,495 8,194 3,568 2,237 35,903 WD_EA WD_DA BEN ( 100% ) WD_PA CPP_PM (100%) WMD

NGO support for Agribusiness /d - - 10,049 10,502 10,974 11,468 11,984 54,977 SPC_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) WMD

Subtotal Value Addition & marketing 11,687 28,497 61,100 68,295 66,723 35,742 27,204 299,248

Subtotal Food Security Enhancement Support 35,828 79,027 140,267 151,024 153,175 95,821 58,828 713,971

D. Livelihood upscaling

1. Promotion of IGA

Support to VG - 20,857 21,796 22,777 23,802 24,873 25,992 140,097 LIVE_EA CB_DA IFAD ( 80% ) LIVE_PA FOR_ACCOUNT_PM(100%) WMD


Support to LC for IGA upscaling - - 7,816 8,168 8,535 8,920 9,321 42,760 LIVE_EA CB_DA IFAD ( 80% ), BEN ( 20% ) LIVE_PA FOR_ACCOUNT_PM (100%) WMD

Miscellaneous 5,113 5,343 5,583 5,834 6,097 6,371 6,658 40,998 LIVE_EA CB_DA IFAD ( 80% ), BEN ( 20% ) LIVE_PA FOR_ACCOUNT_PM (100%) WMD

Subtotal Support to LC for upscaling IGA 5,113 5,343 13,399 14,002 14,632 15,291 15,979 83,758

Subtotal Livelihood upscaling 5,113 26,200 35,195 36,779 38,434 40,163 41,971 223,855

E. Institutional Strengthening


Social Training at village level 8,589 8,976 9,379 9,801 10,243 10,703 11,185 68,876 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Technical Training at village level 8,589 8,976 9,379 9,801 10,243 10,703 11,185 68,876 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Training on production technology 2,556 2,671 2,791 2,917 3,048 3,186 3,329 20,499 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Training at Resource centres 1,534 1,603 1,675 1,750 1,829 1,911 1,997 12,299 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Unit level workshop 2,556 2,671 2,791 2,917 3,048 3,186 3,329 20,499 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Divisional level workshop 2,045 2,137 2,233 2,334 2,439 2,548 2,663 16,399 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

State level workshop 5,113 5,343 5,583 5,834 6,097 6,371 6,658 40,998 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Exposure visit within state 3,068 3,206 3,350 3,501 3,658 3,823 3,995 24,599 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Overseas exposure visits 1,278 1,336 1,396 1,459 1,524 1,593 1,664 10,249 CB_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Subtotal Capacity Building of GP & WWMCs 35,327 36,917 38,578 40,314 42,129 44,024 46,005 283,296


63

TABLE-2.1: PARTICIPATORY WAATERSHED MANAGEMENT-TOTAL COSTS AND FINANCING RULES

INDIA


Table 2.1. Participatory Watershed Management Other Accounts



I. Investment Costs


IEC consultants 614 641 670 700 732 765 799 4,920 TA_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

IEC materials 2,045 2,137 2,233 2,334 2,439 2,548 3,995 17,731 EQUIP_EA CB_DA IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) WMD

Subtotal Information, Education & Communication 2,659 2,778 2,903 3,034 3,170 3,313 4,794 22,650

Subtotal Institutional Strengthening 37,986 39,695 41,482 43,348 45,299 47,337 50,799 305,946

F. Project Management

Vehicles 3,068 3,206 - - - - - 6,273 VEHIC_EA VEM_DA IFAD ( 75% ) VEHIC_PA LCB_PM(100%) WMD

NGO support to M&E system /e - - - - - - - - SPC_EA SPC_DA IFAD ( 90% ) SPC_PA LCB_PM(100%) WMD

Annual Audit (External) 511 534 558 583 610 637 666 4,100 WD_EA WD_DA IFAD ( 80% ) WD_PA CPP_PM (100%) WMD

Subtotal Project Management 3,579 3,740 558 583 610 637 666 10,373

Total Investment Costs 191,998 345,297 530,380 581,138 579,188 369,429 294,852 2,892,280

II. Recurrent Costs

A. Project Management

Staff salary /f 184,050 192,332 200,987 210,032 219,483 229,360 239,681 1,475,925 SAA_EA OM_DA GOVT OM_PA NBF_PM ( 100% ) WMD

Audit Manager 169 705 737 770 805 841 879 4,906 SAA_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) WMD

Internal Auditors /g 169 1,410 1,474 1,540 1,610 1,682 1,758 9,642 SAA_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) WMD

Assistants 184 1,923 2,010 2,100 2,195 2,294 2,397 13,103 SAA_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) WMD

Project Allowance 3,068 16,028 16,749 17,503 18,290 19,113 19,973 110,724 SAA_EA OM_DA IFAD ( 90% ) SAA_PA OTHER_PM ( 100% ) WMD

GIS/MIS/ watershed experts /h 2,556 5,343 5,583 5,834 6,097 6,371 6,658 38,442 OM_EA OM_DA IFAD ( 90% ) OM_PA LCL_SHOPPING_PM ( 100% ) WMD

Travel Allowance 2,556 5,343 5,583 5,834 6,097 6,371 6,658 38,442 SAA_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) WMD

Office expenditure 3,579 7,480 7,816 8,168 8,535 8,920 9,321 53,818 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) WMD

Operating costs, equipment 3,579 7,480 7,816 8,168 8,535 8,920 9,321 53,818 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) WMD

Miscellaneous 1,278 2,671 2,791 2,917 3,048 3,186 3,329 19,221 OM_EA OM_DA IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) WMD


Total 393,185 586,012 781,926 844,004 853,883 656,485 594,826 4,710,320

_________________________________

\a Assuming a GP has 454 ha for treatment; with estimated cost of INR 8474/ha

\b Such as processing facilities etc

\c Estimated at 20%

\d 6 Divisional support agencies (DSAs) and 2 consultants;

\e See Table 4.3: M&E Cost Estimates for WMD

\f Staff at headquarters, 2 regions and 6 Divisions.

\g to be based at 2 Regional Offices of WMD

\h 6 Consultants to be based in WMD headquarters in Dehradun


64

TABLE-4.3: M & E AND KNOWLEDGE MANAGEMENT –BASELINE COSTS

INDIA


Table 4.3. M&E and Knowledge Management_WMD



I. Investment Costs


1. Office equipment

Office equipment /a No 1 - - - - - - 1 575,000 575 - - - - - - 575

Data-enabled Mobile phones /b No 12 - - - - - - 12 10,000 120 - - - - - - 120

Subtotal Office equipment 695 - - - - - - 695



At Block level /c meetings - 104 104 104 104 104 104 624 2,000 - 208 208 208 208 208 208 1,248

At Division level /d meetings - 24 24 24 24 24 24 144 20,000 - 480 480 480 480 480 480 2,880

At State level /e meetings - 4 4 4 4 4 4 24 50,000 - 200 200 200 200 200 200 1,200

Subtotal Monthly Review meetings - 888 888 888 888 888 888 5,328

2. Quarterly learning/sharing workshops /f

Block level workshop meetings - 52 52 52 52 52 52 312 - - - - - - - -

Divisional level workshop meetings - 6 6 6 6 6 6 36 - - - - - - - -

State level workshops meetings - 1 1 1 1 1 1 6 - - - - - - - -

Subtotal Quarterly learning/sharing workshops - - - - - - - -

3. Workshops

Project start up WS /g No 1 - - - - - - 1 225,000 225 - - - - - - 225

Divisional startup workshops participants 6 - - - - - - 6 100,000 600 - - - - - - 600

Mid-term review /h Review - - - 1 - - - 1 225,000 - - - 225 - - - 225

Project completion review /i PCR - - - - - - 1 1 225,000 - - - - - - 225 225


4. KM Training

KM documentation /j course - 1 1 1 1 1 1 6 100,000 - 100 100 100 100 100 100 600

knowledge sharing tools course - - 1 - 1 - - 2 100,000 - - 100 - 100 - - 200

RIMS & M-E training at state level /k course - 1 - - 1 - - 2 - - - - - - - -

RIMS/M&E training at Divn level /l course - 1 - - 1 - - 2 - - - - - - - -

Annual Outcome Survey survey - 1 1 1 1 1 1 6 500,000 - 500 500 500 500 500 500 3,000

KAPs survey /m survey - - 1 - - - - 1 225,000 - - 225 - - - - 225

Technical assistance /n pers_month - 1 1 1 1 1 1 6 200,000 - 200 200 200 200 200 200 1,200

Subtotal KM Training - 800 1,125 800 900 800 800 5,225

5. Surveys & studies

Communication materials LS - 7 7 7 7 7 7 42 50,000 - 350 350 350 350 350 350 2,100

News letters & publications Lumpsum - 1 1 1 1 1 1 6 500,000 - 500 500 500 500 500 500 3,000

Monitoring surveys /o survey 1 - - 1 - - 1 3 10,000,000 10,000 - - 10,000 - - 10,000 30,000

Subtotal Surveys & studies 10,000 850 850 10,850 850 850 10,850 35,100




65

TABLE-4.3: M & E AND KNOWLEDGE MANAGEMENT –BASELINE COSTS

INDIA





II. Recurrent Costs

A. Salary & operating costs

1. Staff Salary

Manager (KM) /p Pers_month 3 12 12 12 12 12 12 75 - - - - - - - -

Data Entry Operators Pers_month 36 120 120 120 120 120 120 756 15,000 540 1,800 1,800 1,800 1,800 1,800 1,800 11,340

Enumerators /q Pers_month 24 24 24 24 24 24 24 168 15,000 360 360 360 360 360 360 360 2,520


2. Operating costs

Staff travelling allowance month 3 12 12 12 12 12 12 75 40,000 120 480 480 480 480 480 480 3,000

Office operating costs month 3 12 12 12 12 12 12 75 60,000 180 720 720 720 720 720 720 4,500



Total 12,720 5,898 6,223 16,123 5,998 5,898 16,123 68,983

_________________________________

\a Laptops, printers, furniture etc \i some 60 staff participate

\b For use by field enumerators for KAK survey \j some 20 staff participate

\c 4 meetings per year \k Organised jointly with UGVS

\d 4 meetings per year \l Organised jointly with UGVS

\e All Divisional M&E staff participate \m some 20 persons participate

\f Tasks to be performed under Table 2.1 \n PME and anthropometric consultants

\g Some 50 participants take part \o Baseline, mid-term and endline surveys conducted with the support of external agencies;

\h Some 25 staff participate at the time of MTR \p Tasks to be performed by IEC Consultant

\q 2 Enumerators per Division, 2 months a year;


66

TABLE-4.3: M & E AND KNOWLEDGE MANAGEMENT – TOTAL COSTS AND FINANCING RULES

INDIA


Table 4.3. M&E and Knowledge Management_WMD Other Accounts



I. Investment Costs


1. Office equipment

Office equipment /a 588 - - - - - - 588 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) WMD

Data-enabled Mobile phones /b 123 - - - - - - 123 EQUIP_EA VEM_DA IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) WMD

Subtotal Office equipment 711 - - - - - - 711



At Block level /c - 222 232 243 254 265 277 1,493 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA FOR_ACCOUNT_PM ( 100% ) WMD

At Division level /d - 513 536 560 585 612 639 3,445 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA FOR_ACCOUNT_PM (100%) WMD

At State level /e - 214 223 233 244 255 266 1,435 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA FOR_ACCOUNT_PM (100%) WMD

Subtotal Monthly Review meetings - 949 992 1,036 1,083 1,132 1,182 6,373

2. Quarterly learning/sharing workshops /f

Block level workshop - - - - - - - - TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Divisional level workshop - - - - - - - - TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

State level workshops - - - - - - - - TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Subtotal Quarterly learning/sharing workshops - - - - - - - -

3. Workshops

Project start up WS /g 230 - - - - - - 230 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Divisional startup workshops 614 - - - - - - 614 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Mid-term review /h - - - 263 - - - 263 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Project completion review /i - - - - - - 300 300 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD


4. KM Training

KM documentation /j - 107 112 117 122 127 133 718 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

knowledge sharing tools - - 112 - 122 - - 234 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

RIMS & M-E training at state level /k - - - - - - - - TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

RIMS/M&E training at Divn level /l - - - - - - - - TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Annual Outcome Survey - 534 558 583 610 637 666 3,589 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

KAPs survey /m - - 251 - - - - 251 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Technical assistance /n - 214 223 233 244 255 266 1,435 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Subtotal KM Training - 855 1,256 933 1,097 1,019 1,065 6,226

5. Surveys & studies

Communication materials - 374 391 408 427 446 466 2,512 SURVEY_EA CB_DA IFAD ( 90% ) SURVEY_PA LCL_SHOPPING_PM(100%) WMD

News letters & publications - 534 558 583 610 637 666 3,589 TRAIN_EA CB_DA IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) WMD

Monitoring surveys /o 10,225 - - 11,668 - - 13,316 35,209 SURVEY_EA CB_DA IFAD ( 90% ) SURVEY_PA LCB_PM ( 100% ) WMD

Subtotal Surveys & studies 10,225 908 949 12,660 1,036 1,083 14,447 41,310




67

TABLE-4.3: M & E AND KNOWLEDGE MANAGEMENT – TOTAL COSTS AND FINANCING RULES

INDIA


Table 4.3. M&E and Knowledge Management_WMD Other Accounts



II. Recurrent Costs


1. Staff Salary

Manager (KM) /p - - - - - - - - SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) WMD

Data Entry Operators 552 1,923 2,010 2,100 2,195 2,294 2,397 13,471 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) WMD

Enumerators /q 368 385 402 420 439 459 479 2,952 SAA_EA OM_DA IFAD ( 50% ) SAA_PA OTHER_PM (100%) WMD


2. Operating costs

Staff travelling allowance 123 513 536 560 585 612 639 3,568 OM_EA OM_DA IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) WMD

Office operating costs 184 769 804 840 878 917 959 5,352 OM_EA OM_DA IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) WMD



Total 13,006 6,302 6,949 18,813 7,314 7,515 21,469 81,368

_________________________________

\a Laptops, printers, furniture etc

\b For use by field enumerators for KAK survey

\c 4 meetings per year

\d 4 meetings per year

\e All Divisional M&E staff participate

\f Tasks to be performed under Table 2.1

\g Some 50 participants take part

\h Some 25 staff participate at the time of MTR


68

Annex-1.3.5 Summary Cost Estimates

COMPONENT PROJECT COST SUMMARY

INDIA

Uttarakhand: Integrated Livelihoods Support Programme % Total

Components Project Cost Summary (INR '000) Base

Total Costs

A. Food Security & Livelihood Enhancement

1. Food Security & Scaling up 1,046,280 14.4

2. Access to Market 119,805 1.7

3. Innovation Linkages 101,482 1.4

4. Vocational Training 207,000 2.9

5. UGVS: Project Management Unit 407,810 5.6

Subtotal Food Security & Livelihood Enhancement 1,882,377 25.9

B. Participatory Watershed Development 4,018,765 55.4

C. Livelihood Finance 1,185,100 16.3

D. Project Management

1. Central Project Coordination Unit 25,065 0.3

2. M&E and Knowledge Management_UGVS 75,619 1.0

3. M&E and Knowledge Management_WMD 68,983 1.0

Subtotal Project Management 169,667 2.3

Total BASELINE COSTS 7,255,909 100.0

Physical Contingencies -

Price Contingencies 1,029,835 14.2

Total PROJECT COSTS 8,285,743 114.2


69

PROJECT COMPONENTS BY FINANCIERS

INDIA


Components by Financiers

(INR '000) GoUK IFAD Banks Beneficiaries Total Local (Excl. Duties &

Amount % Amount % Amount % Amount % Amount % Taxes) Taxes


1. Food Security & Scaling up 77,578 6.3 1,083,459 88.4 - - 63,981 5.2 1,225,018 14.8 1,221,251 3,767

2. Access to Market 14,013 10.0 126,115 90.0 - - - - 140,128 1.7 137,741 2,387

3. Innovation Linkages 11,927 10.0 107,343 90.0 - - - - 119,270 1.4 110,409 8,861

4. Vocational Training 700 0.3 156,300 75.5 - - 50,000 24.2 207,000 2.5 206,800 200

5. UGVS: Project Management Unit 229,340 47.2 256,669 52.8 - - - - 486,009 5.9 470,347 15,662

Subtotal Food Security & Livelihood Enhancement 333,557 15.3 1,729,887 79.4 - - 113,981 5.2 2,177,425 26.3 2,146,548 30,877

B. Participatory Watershed Development 1,817,630 38.6 2,592,089 55.0 - - 300,601 6.4 4,710,320 56.8 4,710,320 -

C. Livelihood Finance 148,684 12.4 68,343 5.7 923,050 77.1 57,196 4.8 1,197,273 14.4 1,195,064 2,210


1. Central Project Coordination Unit 11,960 40.0 17,918 60.0 - - - - 29,878 0.4 29,697 181

2. M&E and Knowledge Management_UGVS 27,366 30.6 62,112 69.4 - - - - 89,478 1.1 87,758 1,720

3. M&E and Knowledge Management_WMD 18,380 22.6 62,987 77.4 - - - - 81,368 1.0 80,475 892

Subtotal Project Management 57,706 28.7 143,018 71.3 - - - - 200,724 2.4 197,931 2,793

Total PROJECT COSTS 2,357,577 28.5 4,533,338 54.7 923,050 11.1 471,779 5.7 8,285,743 100.0 8,249,863 35,881


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DISBURSEMENT ACCOUNTS BY FINANCIERS

INDIA


Disbursement Accounts by Financiers



A. Investment cost

1. Civil work 19,770 10.0 160,209 81.0 - - 17,719 9.0 197,697 2.4 191,766 5,931

2. Watershed treatment 124,148 9.8 989,905 77.7 - - 159,231 12.5 1,273,284 15.4 1,273,284 -

3. Vehicles, equipment & materials 7,098 25.0 21,295 75.0 - - - - 28,394 0.3 26,689 1,704

4. Capacity Building 96,553 4.4 1,862,935 84.8 - - 237,879 10.8 2,197,366 26.5 2,187,980 9,386

5. Livelihoods Financing 115,500 10.4 20,000 1.8 923,050 82.7 56,950 5.1 1,115,500 13.5 1,115,475 25

6. Service Provider Contracts 105,135 10.0 946,213 90.0 - - - - 1,051,348 12.7 1,051,348 -

Subtotal Investment cost 468,204 8.0 4,000,556 68.2 923,050 15.7 471,779 8.0 5,863,588 70.8 5,846,543 17,046

B. Recurrent Costs

1. Salary and O& M 1,889,374 78.0 532,781 22.0 - - - - 2,422,155 29.2 2,403,320 18,835

Subtotal Recurrent Costs 1,889,374 78.0 532,781 22.0 - - - - 2,422,155 29.2 2,403,320 18,835



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EXPENDITURE ACCOUNTS BY FINANCIERS

INDIA


Expenditure Accounts by Financiers



I. Investment Costs

A. Civil work 19,770 4.9 326,903 80.5 - - 59,392 14.6 406,065 4.9 400,134 5,931

B. Watershed treatment 124,148 9.8 989,905 77.7 - - 159,231 12.5 1,273,284 15.4 1,273,284 -

C. Vehicles 3,492 25.0 10,475 75.0 - - - - 13,966 0.2 12,812 1,154

D. Equipment and materials 5,411 16.7 27,059 83.3 - - - - 32,470 0.4 31,920 550

E. Training and workshops 5,269 9.7 48,713 90.0 - - 144 0.3 54,126 0.7 53,830 296

F. Capacity Building 67,102 7.1 822,018 86.8 - - 57,567 6.1 946,686 11.4 946,486 200

G. Survey & studies 5,987 10.0 53,881 90.0 - - - - 59,868 0.7 59,839 29

H. Technical Assistance 4,067 10.0 36,603 90.0 - - - - 40,670 0.5 40,670 -

I. Agribusiness 3,142 10.0 28,277 90.0 - - - - 31,419 0.4 31,419 -

J. Livelihoods support 43,634 3.7 1,000,581 84.6 - - 138,495 11.7 1,182,710 14.3 1,173,849 8,861

K. Viability Gap Fund - - 20,000 100.0 - - - - 20,000 0.2 20,000 -

L. Livelihoods financing 115,500 10.5 - - 923,050 84.3 56,950 5.2 1,095,500 13.2 1,095,475 25

M. Service Providers contracts 12,057 10.0 108,516 90.0 - - - - 120,574 1.5 120,574 -

Total Investment Costs 409,579 7.8 3,472,931 65.8 923,050 17.5 471,779 8.9 5,277,338 63.7 5,260,292 17,046

II. Recurrent Costs

A. Salary and allowances 1,717,956 83.9 330,610 16.1 - - - - 2,048,565 24.7 2,029,731 18,835

B. Operations and maintenance 230,043 24.0 729,797 76.0 - - - - 959,840 11.6 959,840 -

Total Recurrent Costs 1,947,999 64.8 1,060,407 35.2 - - - - 3,008,406 36.3 2,989,571 18,835



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PROJECT COMPONENTS BY YEAR-TOTAL INCLUDING CONTINGENCIES

INDIA


Project Components by Year -- Totals Including Contingencies

(INR '000) Totals Including Contingencies

12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total


1. Food Security & Scaling up 12,774 124,310 289,891 382,327 202,969 116,536 96,212 1,225,018

2. Access to Market 4,397 12,448 31,214 34,754 34,361 20,636 2,317 140,128

3. Innovation Linkages 1,360 20,993 23,054 23,363 19,079 17,517 13,905 119,270

4. Vocational Training 2,000 20,500 41,000 41,000 41,000 41,000 20,500 207,000

5. UGVS: Project Management Unit 3,221 79,220 74,298 77,782 81,453 83,538 86,498 486,009

Subtotal Food Security & Livelihood Enhancement 23,751 257,471 459,458 559,225 378,862 279,226 219,431 2,177,425

B. Participatory Watershed Development 393,185 586,012 781,926 844,004 853,883 656,485 594,826 4,710,320

C. Livelihood Finance 3,540 45,675 139,014 226,585 358,008 412,723 11,728 1,197,273


1. Central Project Coordination Unit 307 4,771 4,533 4,737 4,951 5,173 5,406 29,878

2. M&E and Knowledge Management_UGVS 8,742 10,150 10,746 16,947 11,705 11,849 19,340 89,478

3. M&E and Knowledge Management_WMD 13,006 6,302 6,949 18,813 7,314 7,515 21,469 81,368

Subtotal Project Management 22,055 21,223 22,228 40,498 23,969 24,538 46,214 200,724

Total PROJECT COSTS 442,531 910,380 1,402,626 1,670,312 1,614,722 1,372,972 872,200 8,285,743


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EXPENDITURE ACCOUNTS BY YEAR-TOTAL INCLUDING CONTINGENCIES

INDIA


Expenditure Accounts by Years -- Totals Including Contingencies

(INR '000) Totals Including Contingencies

12/13 13/14 14/15 15/16 16/17 17/18 18/19 Total

I. Investment Costs

A. Civil work 9,969 24,522 71,685 135,295 106,693 44,916 12,983 406,065

B. Watershed treatment 61,235 148,600 265,808 300,868 290,269 126,760 79,745 1,273,284

C. Vehicles 3,068 10,899 - - - - - 13,966

D. Equipment and materials 3,845 9,323 4,165 5,181 3,414 2,548 3,995 32,470

E. Training and workshops 3,952 9,912 9,381 9,336 7,866 6,462 7,218 54,126

F. Capacity Building 79,751 120,801 151,359 148,618 152,564 155,470 138,123 946,686

G. Survey & studies 15,644 1,149 726 19,603 793 1,115 20,839 59,868

H. Technical Assistance 3,650 6,026 7,905 7,561 6,146 4,587 4,794 40,670

I. Agribusiness 2,536 5,220 9,463 4,148 3,951 3,784 2,317 31,419

J. Livelihoods support 30,613 125,821 273,967 320,063 216,736 126,679 88,831 1,182,710

K. Viability Gap Fund - 2,000 2,000 4,000 6,000 6,000 - 20,000

L. Livelihoods financing - 31,250 121,250 207,500 340,000 395,500 - 1,095,500

M. Service Providers contracts 8,180 8,548 18,982 19,836 20,729 21,662 22,637 120,574

Total Investment Costs 222,444 504,070 936,691 1,182,009 1,155,160 895,483 381,481 5,277,338

II. Recurrent Costs

A. Salary and allowances 193,586 275,274 287,662 302,007 315,597 329,799 344,640 2,048,565

B. Operations and maintenance 26,501 131,036 178,274 186,296 143,964 147,690 146,079 959,840


Total PROJECT COSTS 442,531 910,380 1,402,626 1,670,312 1,614,722 1,372,972 872,200 8,285,743


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PROCUREMENT ARRANGEMENTS-TOTAL

INDIA

Uttarakhand: Integrated Livelihoods Support Programme Procurement Method (INR '000)

Procurement Arrangements Community

Local Participation

Competitive Direct Force in

Bidding Local Shopping Contracting Account Procurement Other N.B.F. Total

A. Civil work - 197,697 - - - - - 197,697

(160,209) (160,209)

B. Watershed treatment - - - - 1,273,284 - - 1,273,284

(989,905) (989,905)

C. Vehicles 12,684 1,282 - - - - - 13,966

(9,513) (962) (10,475)

D. Equipment and Materials - 14,740 - - - - - 14,740

(11,102) (11,102)

E. Training and Workshop - 46,672 - 6,935 - - - 53,607

(42,004) (6,242) (48,246)

F. Capacity Building - 875,411 121,951 12,897 9,300 - - 1,019,559

(737,034) (109,756) (11,607) (8,370) (866,766)

G. Survey and Studies & TA 52,814 14,811 - - - - - 67,625

(47,532) (13,330) (60,862)

H. Livelihoods Support - - - 638,578 - - - 638,578

(510,862) (510,862)

I. Agribusiness Development - - - - - - -

J. Viability Gap Fund - - 20,000 - - - - 20,000

(20,000) (20,000)

K. Livelihoods Financing /a - - - - - - 1,095,500 1,095,500

L. Service Providers Contracts 1,051,348 417,407 - - 278 - - 1,469,033

(946,213) (375,667) (250) (1,322,130)

M. Salaries and Allowances - - - - - 503,915 - 503,915

(296,247) (296,247)

N. Operations and Maintenance - 68,491 - - - 373,824 1,475,925 1,918,240

(49,622) (186,912) (236,534)

Total 1,116,846 1,636,512 141,951 658,410 1,282,862 877,739 2,571,425 8,285,743

(1,003,258) (1,389,929) (129,756) (528,711) (998,524) (483,159) - (4,533,338)

Note: Figures in parenthesis are the respective amounts financed by IFAD

\a Through financial intermediaries


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76

Chapter-1.4: PROJECT ORGANISATION AND MANAGEMENT

A. Introduction The Uttarakhand Livelihood Improvement Project for the Himalayas (ULIPH) established two independent organizations for implementing project activities. This twin track implementation was planned to ensure that the enterprise development component is handled in a business-like manner to wean the community away from the welfare oriented subsidy driven approach. The first track comprised empowerment and capacity building component leading to SHG mobilization and linkage to banks/cooperative network. NGOs played a major role in this activity, which is being implemented by Uttarakhand Gramya Vikas Samiti (UGVS). The second track consists of provision of business promotion, technology and business service related functions. It included establishing demonstrations and upscaling profitable demonstrations by facilitating access to business service, venture capital and credit. This activity is being implemented by the Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC). UGVS had a direct implementation and supervision role on the empowerment and capacity building component whereas UPASAC undertook business service, venture capital and credit related activities. This twin track implementation mode created management difficulties and, as a result, based on the recommendations of the MTR, a unified command structure was established. The Project Director in charge of UGVS became responsible for UPASAC. This has improved coordination between both the arms of ULIPH.

Despite being one of the younger states, Uttarakhand has a satisfactory track record of implementing projects involving the community in developmental initiatives. The state also has the benefit of some well known research institutions in the agriculture sector, which has led to several lab-to-land transfer of technology as well as upgrading of the technical capacity of personnel in the line departments. This apart, the state also has some well functioning commodity boards, social entrepreneurs and NGOs that have developed expertise over several years of trial and error to improve livelihoods of the communities in the hilly areas. The ULIPH funded by IFAD has done considerable work in the field of SHG mobilization, federation formation, and developing demonstrations of livelihood activities. However, the enterprise promotion related activities to upscale demonstrations are yet to start despite the project being in its penultimate year of implementation

B. Project Management Structure RATIONALE The Integrated Livelihood Support Project (ILSP) is a large project compared to that of ULIPH with an investment outlay of USD 148 million. UGVS that has been implementing the much smaller ULIPH with an investment cost of about USD 27 million. UGVS/UPSAC is expected to utilize about 50% of the total allocation for ILSP as the absorption capacity of UGVS/UPASAC remains limited. It is both time consuming and cost ineffective to build capacity of UGVS/UPASAC to single handedly implement ILSP. As a result, it will be necessary to identify and work in partnership with other implementing agencies who have the required implementation capacity. The Rural Development Department (RDD) is the nodal agency for implementing the National Rural Livelihoods Mission (NRLM), a project targeted at improving the livelihoods of poor households by mobilizing and strengthening of SHGs and their federations. NRLM will be the flagship program of the Government of India (GOI) and Government of Uttarakhand (GoUK) in the arena of poverty alleviation. It will therefore make imminent sense to dovetail coordination of ILSP with that of NRLM within RDD to build synergy between these two projects


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STRUCTURE RDD will be the nodal agency at the state level. A Central Project Coordination Unit (CPCU) within the RDD will be established headed by a part time Chief Project Director (CPD). If an officer of sufficient seniority is not available, the post of CPD may be held as an additional charge by the PD of the UGVS or WMD components of ILSP. The project will be implemented by the Project Implementation Agencies (PIAs) each headed by a full time Project Director (PD). The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD. The Secretary, Watershed will be Co-chairperson. The CPD, PDs and Implementation Partners (NGOs, Innovation Linkage Partners, etc.) will be the members. The PD of UGVS will be the Secretary of the PMC. The PMC will meet every quarter and the main function include: (i) approving the AWPB, (ii) reviewing physical and financial progress; (iii) reviewing progress towards achieving outcome indicators; (iv) resolving implementation issues; and (v) working towards achieving convergence between various government sponsored activities and ILSP activities. FUNCTIONS OF THE CPCU The main functions of the CPCU are:

a) formulate and sign Sub-Projects with the PIAs; b) organize PSC and PMC meetings; c) Incorporate the budget requirements into the overall budget of the GOUK; d) Operate the Project Account for timely release funds to the PIAs; e) Receive statement of expenditure and supporting documents related to fund release to

PIAs and keep an account of fund release and utilization by each PIA; f) prepare overall project financial statements; g) Prepare and submit the withdrawal applications to DEA for onward transmission to IFAD;

and h) Ensure preparation and submission of annual audit reports of the PIAs and annual RIMS

data to IFAD; The CPCU currently housed at the UGVS office will have the following staff officers:

Table-1: Staff Positions of CPCU

Staff Position Number of Staff Comments

Project Coordinator 1 PD UGVS holds additional charge Finance Controller 1 Asst Manager (Finance) 1 Project Assistants/ Stenographer 2

RESPONSIBILITIES OF PIAs The PIAs will be responsible for day to day implementation of the allocated sub-project. Establishment of Divisional Offices at the cluster/district level by the PIAs will be need based. Each PIA will be headed by a full time PD. The main functions of PIAs include:

a) coordinate and implement Sub-Project activities including procurement and consultation with IFAD and under the guidance of PSC;

b) prepare AWPB and 18 month procurement plan for implementing the Sub-Project and submit it to CPCU and IFAD;

c) finalize and execute partnership agreements/contracts with NGOs, service providers and specialized institutions for implementing various project activities;

d) establish an effective M&E and MIS system to track sub-project‟s progress; e) prepare and submit consolidated annual and quarterly progress reports to CPCU and IFAD; f) supervise and monitor the Sub-Project related activities and their progress towards

achieving physical, financial and outcome related targets; g) prepare sub-project financial statements and prepare statement of expenditures related to

sub-project expenditure for submission to CPCU and IFAD; h) submit annual audit reports, RIMS data to CPCU and IFAD; and


78

i) liaise with the State administration, line agencies and other PIAs to ensure coordination in project implementation.

The project has three PIAs: (i) UGVS; (ii) WMD; and (iii) UPASAC. The Project Management structure is in Annex-1.4.1. Each PIA will enter into a Sub-Project Agreement with CPCU/RDD to implement allocated sub-projects. RESPONSIBILITIES PROJECT DIRECTORS The PSC, in consultation with IFAD, will appoint a Senior Government Official preferably from the Central Services as PD for each of the PIA (UGVS/UPASAC and WMD Society). In order to ensure continuity and smooth implementation of project activities, the minimum tenure of the PDs will be not less than three years and subject to satisfactory performance as determined by the PSC. The PD will be assisted by a core team of technical and professional staff. The PD will be responsible for the day to day operations including the following functions:

a) ensure that the PIA carries out its functions as set out in the Sub-Project Agreement; b) supervise and monitor the activities of the PIA and its progress towards achieving physical,

financial and outcome related targets; c) oversee field operations related to the Sub-Project and provide overall implementation

guidance; d) operate the PIA Project Account; e) recruit staff required for implementing the project; f) undertake project procurement; g) ensure that the PIA Project Accounts are audited annually and in accordance with IFAD

audit requirements and submitting the same to CPCU and IFAD; h) submit annual RIMS data to CPCU and IFAD; and i) ensure that the PIA receives required level of funding for carrying out the activities.

FUNCTIONS OF M&E UNITS WITHIN UGVS AND WMD SOCIETY The main functions of the Planning and M&E Unit will include:

a) Submit the consolidated AWPB for approval of IFAD, PMC and PSC; b) Prepare a 18 month Procurement Plan and submit it to IFAD for approval; c) prepare and submit consolidated progress reports annually and quarterly to IFAD based on

the progress reports submitted by PIAs; d) Undertake M&E and Knowledge management activities related to the project covering all

the PIAs; and e) Prepare RIMS data for submission to IFAD.

Table-2: Staff Positions of M&E Units of UGVS & WMD

Staff Position Number of Staff: UGVS

Number of Staff: WMD

UGVS: Planning & M&E Manager 1 KM Manager 1 1 MIS Manager 1 - Statistical Analyst 1 - Asst Planning/M&E Manager - 6 Project Assistant 1 1 Enumerators 12 2 Data entry operators - 10

C. Project Coordination Arrangements

The Department of Economic Affairs will be the nodal agency at the GOI level to review and monitor the project progress.


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GoUK will establish a state level Project Steering Committee (PSC) chaired by the Forest and Rural Development Commissioner (FRDC). The Secretary of RDD will be the Secretary of this Committee. PSC will meet once in six months to review progress, provide overall guidance and policy support and to facilitate inter-departmental coordination. The members of the PSC will include: (i) Finance Secretary; (ii) Secretary, Watershed; (iii) Principle Chief Conservator of Forests; (iv) Secretary, Agriculture; (v) Secretary, Animal Husbandry and Livestock; (vi) Secretary, Horticulture; (vii) Secretary, Industry; and (viii) Project Directors of ILSP. The Special Invitees to the PSC will include, the Chief General Manager- NABARD, representatives of Confederation of Indian Industry (CII), Chamber of Commerce-Kumaon (CCI-K), Chamber of Commerce-Garhwal (CCI-G), Khadi and Village Industry Board (KVIB), Bamboo Board and NGOs. If needed, to advise the project on technical matters and to assist in building linkages with other programmes and sector actors, Sector Advisory Committee (SAC) could be formed for overarching sectors in which the project is involved (such as land-based enterprises, livestock, and non-farm). Membership of SAC would include: committee would include staff from project management, partner NGOs, research agencies, GoUK technical line departments and commodity boards, and other sector stakeholders such as private sector companies, other projects and NGOs. On one hand the external (non-project) members of an SAC would inform the project about other programmes being implemented in the sector that may be of assistance to project groups, and which would help the other programmes of the government to reach out more widely to the rural population. On the other hand the internal (project) members of SAC can seek advice from the external members on technical and other issues that concern project groups, as well as disseminating information about lessons learned and emerging opportunities. District Coordination and Monitoring Committees would be established in each district covered by ILSP activities and would be chaired by the Chairman of the Zila Panchayat (elected head of the district government). Members would include the district Chief Development Officer, project staff (from UGVS and WMD), partner NGO staff, members of government line departments and representatives of ILSP Livelihood Collectives, Gram Panchayat Water and Watershed Management Committees and other community organisations. Block Development Officers would also be members of this committee. The committee would coordinate project implementation at the district level and ensure linkages between the project, line agencies and other government agencies.

D. Implementation Agencies

UGVS & UPASAC GoUK established a not-for-profit society UGVS under the Societies Registration Act, 1860 for implementation of ULIPH. This society took the overall responsibility of SHG mobilization and savings and credit related activities of ULIPH. It engaged NGOs for implementing field level activities. UGVS has a Governing Council comprising the Chief Secretary, FRDC and Secretaries of the relevant line ministries. In addition, GOUK established UPASAC, a Section 25 company to implement demonstrations, enterprise promotion and enterprise finance. UPASAC was successful in implementing demonstration related activities but could not move into enterprise promotion related activities using the venture capital funds provided in the project. Both UGVS & UPASAC reported directly to their respective Governing Council /Board of Directors. The issues related to dual control of the project coordination and management impacted negatively the implementation capacity of ULIPH. MTR taking this account, suggested harmonization of the management structures of both UGVS and UPASAC. This has been achieved with the Chief Executive Officer and staff of UPASAC reporting to the Secretary of UGVS (Project Director of ULIPH). In ILSP, UGVS will use livelihood promotion and agribusiness development strategy to implement the project, as against the SHG mobilization, federation promotion, demonstration and enterprise


80

finance strategy of ULIPH. The following actions will be required to enable UGVS to become a PIA for implementing ILSP.

a) Create a nested institutional structure with UGVS hosting UPASAC unifying the command structure of both UGVS and UPASAC by appointing an experienced official from the central services as full time Secretary of UGVS as well as Executive Vice Chairperson of UPASAC.

b) Review staffing requirements based on the needs of ILSP and review the compensation

and perquisites package of staff to bring about uniformity between the staff of UGVS/UPASAC with that of contract staff of WMD Society.

The organizational structure of UGVS at the state level is provided as Annex-1.4.2 and terms of reference of each staff officer are given in Annex-1.4.7. The Secretary of UGVS/Executive Vice Chairperson UPASAC will be the Project Director of ILSP responsible for UGVS. Day-to-day management of UPASAC will be devolved to a Chief Executive Officer, recruited through open completion and with a development finance background.

Table-2: Staff Positions of PMU UGVS at state level


Project Director 1 Holds additional charge of PC Chief Programme Manager 1 Chief Convergence Officer 1 Programme Manager-Agri/horticulture 1 Programme Manager-Market Access 1 Programme Manager-Inst & Gender 1 Programme Manager-Eco tourism 1 Finance manager 1 HR Manager 1 Audit Manager 1 Asst Managers-Finance 2 Asst Managers 2 Project Assistants 4 Drivers 3 Attendants 2 Security Guards 2

Depending upon the districts allocated to UGVS for ILSP implementation, UGVS will establish Divisional Project Management Offices (DPMO) to implement ILSP in the districts of Almora, Bageshwar, Chamoli, Tehri, and Uttarkashi. Almora being the largest, there will be two divisional offices. Staff patterns of DPMO are as below:

Table-3: Staff Positions of UGVS at Divisional Levels


Divisional Managers a/ 6 Terms of reference and Asst Managers 6 Asst Finance 6 Asst Managers Planning / M&E 6 Asst Managers Technical 6 Asst Managers General 6 Internal Auditors 6 Assistants 24 Drivers 12 Attendants 24 Security Guards 12

The organizational structure of DPMO at the divisional level is provided in Annex-1.4.3 and terms of reference and responsibilities of each staff officer are given in Annex-1.4.8


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UPASAC

UPASAC is housed within UGVS and its CEO reports to the PD of UGVS. The organizational structure of UPASAC is provided in Annex-1.4.4 and terms of reference and responsibilities of each staff officer are given in Annex-1.4.9

Table-4: Staff Positions of UPASAC


Chief Executive Officer 1 Manager Development Finance 1 Deputy Manager Finance 1 Rural Finance Coordinators a/ 10 Assistant 1

One in each division: 6 for UGVS divisions and 5 for WMD divisions. Tehri division is common to both UGVS & WMD

WMD SOCIETY

WMD of GoUK will establish a separate Society to implement ILSP. This society will be a PIA to implement watershed development, livelihood promotion and agribusiness development activities in selected watershed clusters. The society mode is preferred as it has the flexibility to retain unspent funds at the end of the financial year as against the normal system of surrendering the unspent balance to the government treasury. WMD will nominate an experienced official from the central services as full time Secretary of WMD Society and this person will be the full time Project Director for implementation of ILSP activities allocated to WMD Society. As WMD will be completing implementation of the World Bank funded Watershed development project by end 2011-12, it will transfer the staff complement engaged for implementing the World Bank project to implement ILSP. As a result, WMD will gear up and start implementation of ILSP from the beginning of the financial year 2012-13. The project management structure of WMD Society is similar to that of the World Bank-funded Watershed Development Project as shown in Annex-1.4.5. The WMD will have the following staff six consultants during the duration of the Project:

Table-5: Staff Consultants to WMD

Consultant Position a/ Number of Staff Duration

Environmental Specialist 1 5 year Agri-business Specialist 1 5 year Watershed Expert 1 5 year Social Development Specialist 1 5 year GIS Expert 1 5 year MIS Specialist 1 5 year IEC Expert 1 5 year

a/ all positions are at WMD Office, Dehradun; but the consultants are required to travel to field where and when required.

Terms of reference of the above-mentioned consultants are given in Annex-2.1.3. WMD Society will establish Divisional Offices in the clusters selected for watershed development in the districts of Pithoragarh, Champawat, Nainital, Rudraprayag, Pauri and Tehri. Role and responsibilities of the staff of WMD are described in Annex-1.4.10 WMD will also set up of M&E unit and carry out RIMS survey, baseline survey, mid-term survey and endline survey at completion, prepare regular progress reports and annual progress reports, Annual Outcome Survey etc. In order to enable WMD to carry out these tasks, WMD is provided additional staff and fund support.

E. Partner NGOs


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For Component 1, UGVS will engage Partner NGOs (PNGOs) and ULIPH Federations capable of undertaking all activities related to livelihood support. The PNGOs will be responsible for implementation of project activities through the mobilized Producer Groups (PGs), Vulnerable Producer Groups (VPGs) and Livelihood Collectives (LCs) under the overall direction of the Divisional Project Management Offices of UGVS. The functions of PNGO will include:

a) Establish a Divisional level office with a multidisciplinary team to support project implementation comprising agribusiness, livestock, horticulture and Civil Engineering Specialist;

b) Establish a cluster level office with a Livelihood Coordinator and an Accountant. This office will eventually become the office of the Livelihood Collective owned by the PGs and VPGs;

c) Engage a Livelihood Facilitator for to support about 20-25 PGs and VPGs; d) Mobilize PGs and VPGs after conducting a participatory wealth ranking; e) Develop a Food Security Improvement Plan PGs and VPGs, facilitate sourcing of funds and

support the group members to implement the plan; f) Develop and implement a Agribusiness Up-scaling Plan for the Livelihood Collective that

includes both agribusiness and irrigation and water conservation activities; g) Implement a clear exit strategy to hand over functions of the Livelihood Facilitators to the

Livelihood Collective during the third year of the project; h) Implement a clear exist strategy at the level of Livelihood Collective by developing

adequate financial capacity to employ staff comprising Livelihood Coordinator, Accountant and Livelihood Facilitators after the project support ends;

i) Ensure flow of funds to the LCs, PGs and VPGs, for implementing their plans; j) Supervise and monitor implementation of all activities related to project implementation;

and k) Link up with the Service Providers including private companies and Specialist NGOs to

implement agribusiness development activities depending upon the potential of the area. For Component 2, WMD will engage (i) Field NGOs (FNGO) and (ii) NGOs as Divisional Support Agencies (DSA). The FNGOs will facilitate in the preparation of FSIP for PGs and VPGs, provide assistance to the Gram Panchayat in drawing up development plans for the watershed through PRA, undertake community organization, train village communities, supervise watershed development, authenticate project accounts, provide technical advice, monitor and review the project implementation and set up institutional arrangements for post-project operation and maintenance. This work will be based on an Action Plan for sub-project activities drawn up by FNGO for approval of the WMD Divisional Office. FNGOs shall submit periodical progress reports to the Divisional Office, and shall also arrange physical, financial and social audit of the work undertaken. It will also facilitate the mobilization of additional financial resources from other state government programmes, such as MNREGA, SGRY, National Horticulture Mission, NRLM etc. The DSA will facilitate and implement sub component B (Food Security Enhancement Support) and sub-component C (Livelihood Up-scaling Support). Specific tasks include:

(a) Development of Division level action plan: an analysis of farming systems and livelihoods to select sub-sectors with the most income potential for project communities. Sub-sector value-chain analyses of relevant sub-sectors will then be conducted by a contract agency.

(b) The DSA will help group members to plan their production and marketing of crops, and also

provide technical assistance and managerial support to LCs, building their capacity for record keeping and business planning.

(c) Dissemination of improved agricultural practices and extension services: promote new and

commercially viable technologies, and provide training with a compact area for demonstration of new crops. The DSA may contract specific resource consultants and enter into sub-partnerships with technical institutions. The DSA will also facilitate technical training and innovative practices for vulnerable groups and individuals.


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(d) Development of sub-sector value chains through improved post-harvest handling and logistics. The DSA will help establish partnerships with input suppliers, market operators and agro-processing companies, and identify niche market opportunities. Project interventions may be with farmers or further up the value-chain. Partnerships or collaboration with public or private agencies can be developed.

(e) Overall technical support, training and capacity building: the DSA will provide technical

support to the farmers in the project villages on agribusiness related issues and will work in close cooperation with the project management unit (WMD) and the state level organizations.

There are a number of well established and qualified NGOs based in the state with experience in working with ULIPH, and with WMD watershed projects funded by the World Bank. There are also NGOs which have been working with value chain, marketing and enterprise development projects funded by GIZ and other agencies. Some national NGOs have also been involved in this work in Uttarakhand. It is envisaged there will not a problem to recruit suitable NGOs.

F. Community-based Organisations

PRODUCER GROUPS Both UGVS (component 1) and WMD (component 2) will, with the assistance of PNGOs (UGVS) and DSA (WMD) mobilize PGs and VPGs. Group formation will start with a participatory wealth ranking and activity selection. The poorest households, especially SC, with limited cultivable land will be facilitated to form VPGs for poultry, small ruminants and non-farm IGAs. Households with cultivable land will be facilitated to form PGs depending upon the selected activity. The group size will be about 8 to 10 for UGVS and 6 to 10 for WMD, with composition will depend on the geographical proximity of the households, affinity amongst group members to work together, and common interest by all members to take up similar activities. PGs will be either women only groups or men only groups but all VPGs will be women only groups. A minimum of 50% of PGs will be women‟s groups. The PGs/VPGs will become the vehicle for delivery of services for enhancing the productivity of the activities being undertaken by these households. As a result, their income levels and risk taking ability will increase to move them into an agribusiness mode.

LIVELIHOOD COLLECTIVES Components 1 and 2 will promote LCs at the cluster level. Each LC will be formed out of around 70 PG and/or VPG. The location of the LCs will depend on the ease of access for PGs and VPGs, market linkage potential and cluster formation to achieve economies of scale. This means administrative boundaries are not of relevance. The Self Reliant Cooperative Legal Framework is the most dominant legal framework available in Uttarakhand for such groups. A specific growth trajectory for these LCs will not be prescribed by the project but these LCs will have to become self-reliant within four years of project implementation. The project will support each LC via PNGO and DSA and by providing grant funding. LC enterprises will also be able to access funds for UPASAC (loans, equity and viability gap grants) and should also get support from other government programmes and banks. This will enable the LC to take up activities that accrue benefits to their members and to charge service fees to sustainably deliver these services.


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GRASSROOTS WATERSHED ORGANISATIONS Village level local government, the Gram Panchayat (GP) and its Water and Watershed Management Committee (WWMC) will have pivotal role to play in planning and implementing component 2. Participatory watershed development may also involve other village level institutions such as the Revenue Village Committees (RVC), Van Panchayats (community forest groups), and Mahila and Yuvak Mangal Dals (women and youth groups) may also be involved. In some locations where much of the watershed is covered by community forest, Van Panchayats may take a lead in project implementation in place of the WWMC. User Groups will also be formed to operate and maintain infrastructure created by the project – such as irrigation works and collection centres. This will be primarily be in component 2, but some will also be formed in component 1.

The total number of PG, VPG and LC to be formed, and their total membership, is shown in the Table 1. This table also shows other households who will be direct beneficiaries of ILSP. For component 1 these include 2000 farmers participating in the HARC pilot citrus action research sub-project. Participants in other action research activities will probably also be members of PG or VPG. There will also be 10,000 people benefitting from vocational training. However they are still considered to be direct beneficiaries as they will gain from the watershed soil and water conservation works, which will protect the environment, and secure supplies of fuel, fodder and water for the entire community

E. Implementation Responsibilities At project start up a state level start up workshop will be held with participation from IFAD‟s ICO and key project design consultants. This will be followed up by district level workshops organised by UGVS and WMD. There workshops will explain and discuss project objectives, strategies ad processes, and will provide an opportunity to fine tune implementation plans. Either prior to start-up and/or shortly after start-up, UGVS will employ a consultant to assist them in revising and adapting the ULIPH Financial and Accounting Rules, Human Resource Guidelines and other implementation processes for ILSP. WMD may also up-date its various guidelines. The annual process of planning is described in Chapter-1.6. This will involve UGVS and WMD conducting a participatory process with project groups (via their NGO partners) and plans than being consolidated at the component level before the CPCU produces an overall annual plan in line with GoUK and IFAD processes. The overall process adopted to achieve project objectives by UGVS and WMD is similar. They will follow a two stage process, to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the main means of support for most households. The second stage is to generate cash incomes via the introduction and expansion of cash crops. Although both UGVS and WMD will form PG, VPG and LC, the implementation process for components 1 and 2 will have significant differences, with both agencies building on their previous experience and comparative advantages. WMD will have a much more intensive approach, supporting local government to implement physical watershed development works, forming LCs and VPGs which have significantly fewer members, and giving them higher levels of financial support. This means the cost per benefitting household of Component 2 is relatively high. Although this follows accepted GoI expenditure norms and has proven results, the less intensive support offered by UGVD in component 1 has the potential to be more cost-effective.


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Table below summarises and compares key features of Components 1 and 2 and shows where there will be synergies between the two. However it should be emphasised that they will take place in different locations of the state and will be able to proceed in a largely independent manner, without needing a great deal of field level coordination.

Table: Approaches used by Components 1 and 2, and linkages between them

Activities Component 1 (UGVS) Component 2 (WMD) Comments and linkages

Groups formed Producer Group (PG) and Vulnerable

PG (VPG), these federated into Livelihood Collectives (LC).

Producer Group (PG) and Vulnerable

PG (VPG), these federated into Livelihood Collectives (LC).

Similar approach to group

formation, but work in different geographical

areas

Group

members

7,559 PG and VPG have 64,175 hh

members (8-9 members per PG/VPG).

Total of 130 LC (about 60 PG/VPF in

each LC)

5,364 PG and VPG have 29,256

members (6 members per PG and 4 per VPG). Total of 70 LC (about 77 PG/ VPG in each LC)

WMD support is much

more intensive, with larger numbers of staff to supervise and support

groups. UGVS support is more thinly spread over much larger area and

larger number of households, but could be more cost-effective.

Support for

groups

Grants of Rs 80,000 for each PG/VPG

and Rs400,000 for LC. PGs & LCs to provide an additional 15% from their

own resources.

Grant budget of Rs 90,000 per PG (20%

funded by PG members), Rs 80,000 per VPG (10% from members) and

Rs500,000 per LC (20% from own resources).

Implementation Up to six partner agencies, supervised

by PMU office in each of six divisions

Two field NGOs, six Divisional Support

Agency (DSA) NGOs, plus field based Multi-Disciplinary Team of WMD staff. Work with WWMC (part of Gram Panchayats).

UGVS approach will

avoid problems of ULIPH in overlap between field level NGO and project staff. WMD approach

allows such overlap but is based on successful system used in World

Bank watershed projects.

Marketing

support

Value chains, collection centres, and

last mile infrastructure, policy studies

Collection centres, last mile

infrastructure. Value chains are part of ToR of DSAs.

WMD provide more

support for infrastructure per household. UGVS

policy and market studies will be applicable for both components.

Irrigation and water/soil

conservation

Limited funds for each LC (Rs 1 million) = Rs1,100 per PG/VPG member. Plus

25% mobilised from other resources

Watershed treatment funding avg. of Rs 27,000 per household in project

watersheds. 10% of this from local GP resources.

WMD approaches may be adopted by UGVS

WMD funding level as per national guidelines from

GoI.

Innovation Innovation /research sub-component

with research partners

No specific research funding, but FNGO

and DSA will introduce new crops and technologies.

Lessons coming out

UGVS research and innovation activities may be adopted by WMD

component.

Livelihood

finance

Finance and other financial services

from component 3 and via NRLM SHG support

Same as component 1 – watershed

groups will get support from

component 3.

Component 3 will work

with both UGVS and WMD groups, and may also benefit other

households in the hills

Vocational

training

Organised as part of this component. Students may come from watersheds

covered by component 2

Students may come from

any hill community in the state,

M&E and KM UGVS will monitor own activities, outputs and processes; and also carry

out outcome and impact surveys.

WMD will monitor own activities, outputs and processes, including watershed

environment and also will carry out outcome and impact surveys.

Considerable learning from comparison of WMD

and UGVS approaches. Established MIS/GIS of WMD may be replicated

by UGVS.


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Annex-1.4.1: Project Management Structure of ILSP

Project Management Structure of ILSP

State Project

Steering CommitteeState Project

Steering Committee

Project Management

CommitteeProject Management

Committee

Central Project Coordination

Committee

(CPCU)


Committee

(CPCU)

Project Implementing Agency

(WMD)Project Implementing Agency

(WMD)


(UGVS)Project Implementing Agency

(UGVS)


(UPASAC)Project Implementing Agency

(UPASAC)

State Project

Steering CommitteeState Project

Steering Committee

Project Management

CommitteeProject Management

Committee


Committee

(CPCU)


Committee

(CPCU)


(WMD)Project Implementing Agency

(WMD)


(UGVS)Project Implementing Agency

(UGVS)


(UPASAC)Project Implementing Agency

(UPASAC)


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Annex-1.4.2: Organisational Structure of UGVS

Organisational Structure of UGVS

Governing Council

UGVSGoverning Council

UGVS

Secretary UGVS

Project DirectorSecretary UGVS

Project Director

Chief Programme Manager

DPDChief Programme Manager

DPD

Project Management

UnitProject Management

UnitHR & Admin Unit

HR & Admin UnitFinance Unit

Finance UnitPlanning & M&E Unit

Planning & M&E Unit

CPCUCPCU

Governing Council

UGVSGoverning Council

UGVS

Secretary UGVS

Project DirectorSecretary UGVS

Project Director

Chief Programme Manager

DPDChief Programme Manager

DPD

Project Management

UnitProject Management

UnitHR & Admin Unit

HR & Admin UnitFinance Unit

Finance UnitPlanning & M&E Unit

Planning & M&E Unit

CPCUCPCU

DPMO: AlmoraDPMO: Almora

DPMO: TehriDPMO: Tehri

DPMO: UttarkashiDPMO: Uttarkashi

DPMO: BageshwarDPMO: Bageshwar

DPMO: ChamoliDPMO: Chamoli


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Annex-1.4.3: Organisational Structure of UGVS DPMOs

Organisational Structure of DPMO of UGVS

Divisional Project

ManagerDivisional Project

Manager

Technical Unit Technical Unit

Marketing

UnitMarketing

Unit

Finance &

Administration

Unit

Finance &

Administration

Unit

Planning &

Monitoring

Unit

Planning &

Monitoring

Unit

Support StaffSupport Staff

Divisional Project

ManagerDivisional Project

Manager

Technical Unit Technical Unit

Marketing

UnitMarketing

Unit

Finance &

Administration

Unit

Finance &

Administration

Unit

Planning &

Monitoring

Unit

Planning &

Monitoring

Unit

Support StaffSupport Staff

District Level Coordination &

Management CommitteeDistrict Level Coordination &

Management Committee


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Annex-1.4.4: Organisational Structure of UPASAC

Organisational Structure of UPASAC

Board of Directors

ChairpersonBoard of Directors

Chairperson

Managing DirectorManaging Director

Chief Executive OfficerChief Executive Officer

Development Finance

ManagerDevelopment Finance

ManagerSupport Staff

Support StaffFinance Manager

Finance Manager

Board of Directors

ChairpersonBoard of Directors

Chairperson

Managing DirectorManaging Director

Chief Executive OfficerChief Executive Officer

Development Finance

ManagerDevelopment Finance

ManagerSupport Staff

Support StaffFinance Manager

Finance Manager


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Annex-1.4.5: Organisational Structure of WMD Society Watershed Management Directorate (WMD)

Chief Project Director

Project Society (WMD) PMU of Society

Project Director (ILSP)EXPERTS

1.Watershed (Plan)2.Social 3.Environment 4.MIS5.GIS6.IEC7.Agribusiness

Project Director (Garhwal)

Project Director (Kumaon)

Dy. Project Director, Tehri

Dy. Project Director, Pauri

Dy.Project Director, Rudraprayag

Dy.Project Director, Nainital

Dy.Project Director, Champawat

Dy.Project Director, Pithoragarh

FNGO(Regional level)

Convener

Coordinator

Coordinator

Coordinator

Project Units

Gram Panchayat (Water and Watershed Committee)

Revenue Village Committee (RVC)Producer Groups / livelihood collectives / User groups

Facilitator

Assistant Accountant

Village Motivator


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Annex-1.4.6: Responsibilities of CPCU Staff

Post Title : PROJECT COORDINATOR

Location of Job : Central Project Coordination Unit (CPCU), Dehradun

Reporting Line : Secretary Rural Development, Government of Uttarakhand

Position Purpose : Coordinate with the three Project Implementation Agencies (PIAs) viz.,Uttarakhand Gramya Vikas Samiti (UGVS), Project Society of Watershed Management Directorate (PSWMD) and Uttaranchal Parvatiya Aajeevika Sanvardhan Company (UPASaC) in matters related to budgetary allocation for ILSP within the Uttarakhand State Government Budget, reimbursement claims to Government of India and IFAD, organizing Project Steering Committee and Project Management Committee Meetings.

Eligibility:

Post on deputation basis: Project Director, UGVS will hold additional charge of Project Coordinator

Tasks

Oversee the terms and conditions of subsidiary Agreements to be executed between Government of Uttarakhand and PIAs

Organize Project Steering Committee and Project Management Committee meetings

Ensure that the budget requirements of ILSP are provided into the overall budget of the Government of Uttarakhand

Operate the Project Account for timely release of funds to the PIAs

Ensure that statements of expenditures and supporting documentation related to funds released to the PIAs are received and keep an account of the funds released and utilized by UGVS, PSWMD and UPASAC

Ensure consolidation Project financial statements of PIAs for reporting to IFAD

Ensure preparation and submission of annual audit reports of the Project Parties to IFAD.

Consolidate Annual Work Plan Budgets (AWPBs) of the PIAs as per AWPB guidelines issued from time to time by the State Government and IFAD

Coordinate for revision of AWPB on six monthly basis and providing feed back to PIAs

Ensure submission of monthly/quarterly reimbursement claims to CAAA & IFAD as per GoI procedures; and checking the receipts on reimbursement for reconciliation and variance controls

Ensure submission of monthly and other reports to Government of Uttarakhand ( GoUK ) as per guidelines given by GoUK

Ensure timely submission of reimbursement claims by PIAs and other project partners for timely consolidation

Follow up on the outstanding issues and gather supporting documentation

Exercise signatory powers in accordance with Financial rules on the following: a) type of documents to be signed, b) Signing bank cheques as per financial limits

Ensure necessary but efficient checks and balances for funds transfer to PIAs for meeting management expenses and project implementation expenditure.

Provide access to records and data for statutory audits as per guidelines of IFAD. Provide support to management for preparing responses to issues raised by the auditors. Ensure follow up/implementation of recommendations

Provide transparent, efficient and complete compliance of procedures on the funds utilized for procurement of goods, works and services for ILSP

Present financial statement in all review meetings – monthly, quarterly & six monthly and annual

Attend the Department of External Affairs review meeting at Government of India level


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Any other task assigned by the Secretary, Rural Development

Post Title : FINANCE CONTROLLER


Reporting Line : Project Coordinator (PC), CPCU, ILSP

Position Purpose : Ensure that financial resources are made available in a timely manner to the Project Implementation Agencies (PIAs) viz.,Uttarakhand Gramya Vikas Samiti (UGVS), Project Society of Watershed Management Directorate (PSWMD) and Uttaranchal Parvatiya Aajeevika Sanvardhan Company (UPASaC).

Qualifications & Experience:

On deputation basis : Persons from State Finance Services working in the Pay scale of 15,600-39,100 Grade pay 7,600 or on one scale below for more than 1 years.

Additional Skills:

i. Proficient in funds management ii. Proficient in the preparation of Annual Work Plan Budget & Project Financial Statements iii. Knowledge of statutory audit requirements for financial compliances and working in

Externally Aided Projects iv. Proactive, work with minimum supervision and work as team builder

Tasks

Formulate the Subsidiary Agreements to be executed between Government of Uttarakhand and PIAs

Assist the PC in organizing Project Steering Committee and Project Management Committee meetings

Incorporate the budget requirements of ILSP into the overall budget of the Government of Uttarakhand

Operate the Project Account for timely release of funds to the PIAs

Receive statements of expenditures and supporting documentation related to funds released to the PIAs and keep an account of the funds released and utilized by UGVS, PSWMD and UPASAC

Consolidate Project financial statements of PIAs for reporting to IFAD

Ensure preparation and submission of annual audit reports of the Project Parties to IFAD.

Consolidate Annual Work Plan Budgets (AWPBs) of the PIAs as per AWPB guidelines issued from time to time by the State Government and IFAD

Revision of AWBP on six monthly basis and providing feed back to PIAs

Budgetary controls and preparation of analysis report on utilization and variances

Allocation & utilization reports on external funds – donations, equity & borrowed funds

Submission of monthly/quarterly reimbursement claims to CAAA & IFAD as per GoI procedures; and checking the receipts on reimbursement for reconciliation and variance controls

Submission of monthly and other reports to Government of Uttarakhand ( GoUK ) as per guidelines given by GoUK

Ensure timely submission of reimbursement claims by PIAs and other project partners for timely consolidation


Exercise signatory powers in accordance with Financial rules on the following: a) type of documents to be signed, b) signing bank cheques as per financial limits

Periodic monitoring fund thresholds allocated to PIAs and other implementing partners


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Ensure necessary but efficient checks and balances for funds transfer to PIAs for meeting management expenses and project implementation expenditure.


Co-ordinate procurements ensuring that procurement is carried out in accordance with the Financing Agreement of ILSP.


Ensure all financial transactions are authentic and posted efficiently as per the chart of accounts

Reconciliation of bank statements with project financial transactions by 10th of each month

Present financial statement in all review meetings – monthly, quarterly & six monthly and annual

Any other task assigned by the PC

Post Title : ASSISTANT MANAGER FINANCE


Reporting Line : Finance Controller, CPCU, ILSP

Position Purpose : To assist the Finance Controller in ensuring that financial resources are made available in a timely manner to the Project Implementation Agencies (PIAs) viz.,Uttarakhand Gramya Vikas Samiti (UGVS), Project Society of Watershed Management Directorate (PSWMD) and Uttaranchal Parvatiya Aajeevika Sanvardhan Company (UPASaC). Qualifications & Experience:

Formal Academic:

Post Graduate in Commerce or

ICWAI(Inter) or ICAI (Inter) and / or

MBA with specialization in Finance

Relevant Training:

Computer literacy and proficiency in TALLY or other financial accounting package

Proficient in Computer application Microsoft Office particularly Microsoft Excel

Work Experience

Minimum of 5-8 years work experience in accounts, taxation & financial management

Good knowledge of chart of accounts

Experience in project accounting

Exposure to financial management & accounting systems

Additional Skills: i. Proficient in funds management ii. Proficient in the preparation of Annual Work Plan Budget & project financial statements iii. Knowledge of statutory audit requirements for financial compliances and working in

externally aided projects iv. Proactive and can work with minimum supervision.

Tasks

Assist in organizing Project Steering Committee and Project Management Committee meetings


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Assist in receiving statements of expenditures and supporting documentation related to funds released to the PIAs and keep an account of the funds released and utilized by UGVS, PSWMD and UPASAC

Assist in consolidating overall Project financial statements of PIAs for reporting to IFAD

Assist in ensuring preparation and submission of annual audit reports of the PIAs to IFAD.

Assist in consolidating Annual Work Plan Budgets (AWPBs) of the PIAs as per AWPB guidelines issued from time to time by the State Government and IFAD

Assist in revision of AWPB on six monthly basis and providing feed back to PIAs

Assist in budgetary controls and preparation of analysis report on utilization and variances

Assist in submission of monthly/quarterly reimbursement claims to CAAA & IFAD as per Government of India procedures and checking the receipts on reimbursement for reconciliation and variance controls

Assist in submission of monthly and other reports to Government of Uttarakhand (GoUK) as per guidelines given by GoUK

Assist in ensuring timely submission of reimbursement claims by PIAs and other project partners for timely consolidation

Assist in follow up on the outstanding issues and gather supporting documentation

Assist in ensuring necessary but efficient checks and balances for funds transfers to PIAs for meeting management expenses and project implementation expenditure.




Ensure reconciliation of bank statements with project financial transactions by 10th of each month

Assist in co-ordinating procurements

Maintain inventory of Office equipment with clear inventory codes and its location and log book for vehicles.

Manage office supplies and service contracts for maintenance of office equipment and vehicles.

Handle petty cash to manage day to day payments

Ensure regular payment of utility bills viz, rent, electricity, water etc

Ensure timely payment of statutory liabilities like TDS etc.

Any other task assigned by the Project Coordinator or Finance Controller.


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Annex-1.4.7: Responsibilities of UGVS PMU staff

Post Title : PROJECT DIRECTOR

Location of Job : UGVS PMU, Dehradun Reporting Line : Chairman, UGVS

Position Purpose : To guide and monitor the project implementation with respect to Component 1 related to Food Security and Livelihood Enhancement under Integrated Livelihood Support Project.


On deputation basis : Persons from Government working in the Pay scale of 37,400-67,000 Grade pay10,000 and having experience of working in multi disciplinary Livelihood/Watershed related projects. Preference will be given to officials having management background.

Preferred Skills:

Good written and verbal communication skills.

Proactive, work with minimum supervision, team building, leadership quality, soft spoken and empathy for the poor

Have in-depth understanding of Government functioning and policies on rural livelihood financing and enterprise development in the context of existing livelihood practices of the mountain communities on the ground.

Ability to align a fine balance in approach to narrow down the gap between the state policies and local initiatives to find sustainable solutions to many intriguing issues that effect poverty alleviation.

Tasks and Responsibility

Guiding Project Implementation in such a manner that project resources are utilized to achieve the desirable impact towards food security and livelihood enhancement of project beneficiaries

Taking up policy issues with Government that affect food security and livelihoods of project stakeholders

Promoting the exploration of improved development strategies through establishment of think tanks, contracting Partner Agencies for implementation at field level and ensuring implementation of AWPB in timely and effective manner

Overseeing monitoring of the Project performance

Facilitating the interchange of information between project and other livelihood projects at State/ National level

Innvovate business processes through collaborative effort of market, government, peoples institution and financial institution to optimse the gains of the primary stakeholders

Represent in DEA review meetings held at Government of India level

Commissioning independent M & E agency to undertake concurrent evaluation of project implementation performance

Commissioning suitable agencies/designers etc. to undertake market and product development studies and overseeing their work

Follow the Code of Conduct including formal dress code to maintain the decorum of the Project

Prompt response to telephone calls, SMS‟s, e-mails and other communications related to tasks and responsibilities

Any other task assigned by the Chairman

Post Title : CHIEF PROGRAMME MANAGER


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Location of Job : UGVS PMU, Dehradun

Reporting Line : Project Director

Position Purpose : Take a leadership position in the management team implementing component 1 of ILSP (Food Security and Livelihood Enhancement). Undertake responsibilities delegated by the PD in managing project processes and organising staff.


Formal Academic:

Graduate from recognized university; and

Relevant postgraduate management qualification

Work Experience

Minimum of 15-20 years work experience in business development , social entrepreneurship; and resources planning

At least 5-7 years in operations and supply/value chain management

Good knowledge of budgeting and financial analysis

Computer literacy particularly in MS Office

Preferred Skills:

Proficient in the preparation/review of budget& financial statements

Exposure to micro & small scale enterprise especially in rural areas

Experience of implementing rural livelihood or poverty reduction projects

Experience of working on projects funded by external agencies

Proactive, work with minimum supervision ; and team builder


Oversee preparation and implementation of Food Security Improvement Plans (FSIPs) and Agribusiness Up scaling Plans (AUPs)

Devise strategy to develop and implement the Irrigation and Infrastructure Plans (IIPs)

Liaise with partner institutions to conduct specific programs related to innovations

Establishing linkages with agencies to impart vocational training to youths of the Project area and ensure continued placement in collaboration with skill development agencies and skill hiring agencies

Plan and review Annual Work Plan and Budgets as per AWPB guidelines and business strategy of ILSP

Develop a clear strategy for the enterprise development and guide the Project team in conducting sub sectors studies for identification of livelihood opportunities

Identify and develop business relationships with public and private business entities for building sound business linkage with ILSP groups

Ensure coordination and convergence with government schemes including NRLM, NHM etc.

Draw up ToR for NGOs and other service providers. Take necessary steps for contracting these agencies and ensure that they deliver their services in a professional and timely manner.

As and when required, represent Project Director in important meetings and events where ILSP representation is in good interest of the project working

Co ordinate with Project Director in the management meetings, portfolio performance reviews, AWPB planning and review meetings

Present progress reports in meetings held as per project schedules – monthly, quarterly & six monthly and annual

Undertake periodic field visits to assess the performance on site

Identify areas of advocacy and policy influencing and pursue the agenda on advocacy and policy influencing


97

Hold six monthly and annual performance appraisals of senior level staff at the PMU and the head of project in the districts. Submit each staff‟s appraised report as per the prescribed form with recommendation to the Project Director for final review

Fulfil administrative responsibilities such as leave matters of staff under direct supervision, recruitment, disciplinary action



Any other tasks as assigned by the PD

POST TITLE CHIEF CONVERGENCE OFFICER / CONVERGENCE OFFICER Location of Job : UGVS PMU, Dehradun

Reporting Line : Project Director

Position Purpose : Ensure that the project inputs are suitably converged with various schemes of the Government for the larger benefit of the project stakeholders. To oversee the procurement related issues in accordance with Uttarakhand Procurement Rules with relaxation provisions approved for the project.

Qualifications & Experience: On deputation basis: (a) For Chief Convergence Officer

Persons from Government working in the Pay scale of 15,600-39,100 in Grade pay 6,600 and having at least 7 years experience of working in multi disciplinary Livelihood/Watershed related projects OR Persons from Government working in the Pay scale of 15,600-39,100 in Grade pay 5,400 and having at least 10 years experience of working in multi disciplinary Livelihood/Watershed related projects

(b) For Convergence Officer

Persons from Government working in the Pay scale of 9,300-34,800 in Grade pay 4,600 and having at least 3 years experience of working in multi disciplinary Livelihood/Watershed related projects OR Persons from Government working in the Pay scale of 9,300-34,800 in Grade pay 4,200 and having at least 5 years experience of working in multi disciplinary Livelihood/Watershed related projects

Preferred Skills:




Core responsibilities

Collaborate with the line agencies for appropriate convergence of the project

Maintain directory of various schemes of Government and Other Agencies that can be linked with project interventions for extending larger benefits to the Community

Keep track of the progress of various activities to be implemented in convergence mode

Identify bottlenecks in implementation processes in convergence mode and take up the issues with concerned departments and agencies at appropriate forums


98

Undertake process of registration of suppliers and contractors taking into account procurement requirements under the project

Understand the procurement procedures as provided in Uttarakhand Procurement Rules, 2008 with ILSP specific relaxations and ensure its compliance

Prepare quotations for advertisement to solicit EOI.

Present the quotation responses in sealed form to the procurement committee for scrutiny

Manage the schedule for procurement committee meetings and send the notification for meetings along with agenda and the documentation as deemed essential in conducting the business efficiently and effectively

Take down minutes of the procurement committee and circulate them as per instructions

The action points for procurement would need to be followed in terms of notifying the companies/providers of goods & services and ensure the required follow up for maintaining efficiency in tasks completion

Ensure that Purchase Order and Work Orders are issued to the successful bidders

Ensure contracts along with terms of reference is duly executed in legal form

Ensure that the value and validity of Bank Guarantees/ Security Deposits from suppliers and contractors is adequate to secure project interests

Maintain the minutes and all documentation pertaining to procurement/quotations etc in safe and secure form which would be audited by the internal and external auditors

Collaborative responsibilities

Assist in preparation of AWPB including Procurement Plan, its implementation, monitoring and reporting to IFAD, State Government and other Stakeholders

Ensure timely reporting of project activities and support for developing and maintaining the Project MIS

Provide support for conducting Annual Outcome Surveys, Periodic surveys and Impact evaluations undertaken by the project and use the findings for designing future interventions

Undertake analysis of project interventions to identify key learnings and challenges and proactively share with IFAD and other stakeholders through newsletters, publications, website etc for knowledge sharing

Align project interventions to ensure compliance with the targeting and gender strategy of project

Proactively collaborate with project partners and stakeholders in carrying out identified activities under project like vocational training, innovation linkages, facilitating rural finance etc

Participate actively in staff self appraisal exercise undertaken by HR for addressing capacity building needs and career growth aspects

Other responsibilities

Make regular field visits to support LCs and project staff for preparation of business plans, interaction with interested business partners and coordination with concerned stakeholders



Any other task assigned by the project as per requirements.

POST TITLE HUMAN RESOURCE MANAGER Location of Job: UGVS PMU, Dehradun

Reporting Line: Project Director Position Purpose: Ensure that all administrative and human resource management functions are

efficiently and transparently fulfilled as per the F & A rules and HR Policies and Procedures of the project.



99

Formal Academic:

Masters in Business Administration with specialisation in HR or

PG diploma in Personnel management or any other equivalent qualification. Relevant Training:

Proficient in computer applications particularly MS office.

Work Experience

Minimum 5 years work experience in HR management and inventory management of office equipments including office supplies

Sound knowledge of documentation for HR management i.e. staff files, attendance register, staff leave records and other statutory requirements.

Additional Skills: Good communication skills. Proactive, work with minimum supervision, ability to empathise, good listener and

capability to cope up with stress.

Performance Tasks Administrative functions

Maintain inventory of office equipment with clear inventory codes and its location

Manage office supplies – stationery and other materials used in the maintenance and upkeep of the office

Manage service contracts for maintaining office equipment, vehicles and motor bikes

Check log books of vehicles to ensure use of vehicles by authority and its adherence for the purpose. Check fuel efficiency and fuel tracking of all the project vehicles

Ensure cleanliness and good housekeeping of the office including safety during and after office hours

Ensure regular payments of utilities bills and rental charges

Human Resources management

Documentation for staff management i.e. staff files kept with allocated codes/serial numbers, staff leave records etc.

Maintain attendance register and consolidate the record towards the end of the month and submit the report to Finance Controller and to Project Director- staff present, absent, on leave.

Ensure utilization of human resources in an optimal manner

Management of support staff as per tasks entrusted to them

Devise and implement transparent performance appraisal system.

Build team work and culture within the Project for optimum utilisation of manpower

One to one goal setting for work effectiveness and retention of employees

Appropriate manpower planning and recruitment process considering the attrition rate.

Identification of employees capacity building needs and make provision for need based trainings

Evaluate the impact of trainings and other measures for staff capacity building

Knowledge sharing and other tasks to improve efficiency of employees.

Arranging logistics and making hospitality arrangement for visiting consultants and other guests

Other tasks

Maintain roaster of events and ensure timely and quality preparation for interviews, staff meetings, board meetings, partners meeting, conferences, missions and other events as determined by the management.

Advertise for staff recruitment and manage the responses to advertisements

Manage mails and parcels inward and outward dispatch



100

Prompt response to telephone calls, SMS‟s, e-mails and other communications related

to tasks and responsibilities

Any other tasks assigned by the Project Director

POST TITLE PROGRAMME MANAGER GENDER AND INSTITUTIONS Location of Job : UGVS PMU, Dehradun

Reporting Line : Chief Programme Manager and Project Director

Position Purpose: Ensure that project support services to the community based organisations are planned and managed efficiently and effectively so that the project achieves its planned outcomes in terms of livelihood enhancement. Qualifications & Experience:

Formal Academic:

Post graduate qualification in development studies, management, or any other relevant qualification in social sciences.

Relevant Training:

Proficient in MS Office particularly MS Word and Excel

Work Experience

Minimum 8-10 years work experience in working with community based institutions preferably in mountain areas

Hands on experience of designing & implementing livelihood based interventions with community based institutions

Preferred Skills

Ability to plan capacity building interventions for community institutions and monitor their progress


Proactive, work with minimum supervision, team building, leadership quality, soft spoken and empathy for the poor.

Tasks and Responsibility Core responsibilities

Planning of interventions for Project promoted institutions in accordance with AWPB

Develop and implement easy to comprehend formats for capturing relevant and useful data for analysis

Guiding Divisional Units in implementation of interventions for strengthening of Community based institutions for timely and significant result

Review annual targets and budgets for institution building and community development

Revision of AWBP six monthly and feed back to all functional links

Ensure that periodic checks are made to all institutions with special attention to those having significant monetary investments by the project so that risks factors are well mitigated and outputs are at least as per benchmarks

Monitor gender orientation of the Partner Agencies

Review participation of women in community development activities & decision making processes and facilitate improving these processes geared to building gender equity

Data and information generated by the institution and M&E system is reviewed carefully to enable feed back to the project staff, arrange, if necessary additional technical inputs

Develop adequate documentation in digital (video/computer) and hard copies (brochures, technical papers etc) to build reference resource that details all aspects on the institution building process including quality controls

Provide professional support to the Chief Programme Manager and Project Director on essential aspects for dialogue with Partner Agencies

Work in close coordination with Managers at PMU and DMU level on various aspects of institutional development including writing technical papers and making presentations


101

Mentor line Assistant Managers for effective implementation at the field level

Work with M&E wing on data analysis and reports on all inputs provided to community institutions

Keep track of successful producer groups and livelihood collectives that would be useful in preparing lessons on viable institutions

Collaborate with the community institutions established / formed by other agencies and link them to leverage the business opportunities and social issues with federations promoted by the project

Identify areas of advocacy and policy influencing and work with other staff and partners for pursuing the agenda on advocacy and policy


Assist in preparation of AWPB including Procurement Plan, its implementation,

monitoring and reporting to IFAD, State Government and other Stakeholders

Ensure timely reporting of project activities and support for developing and maintaining

the Project MIS

Provide support for conducting Annual Outcome Surveys, Periodic surveys and Impact

evaluations undertaken by the project and use the findings for designing future

interventions

Undertake analysis of project interventions to identify key learning and challenges and

proactively share with IFAD and other stakeholders through newsletters, publications,

website etc for knowledge sharing

Align project interventions to ensure compliance with the targeting and gender strategy

of project

Proactively collaborate with project partners and stakeholders in carrying out identified

activities under project like vocational training, innovation linkages, facilitating rural

finance etc

Participate actively in staff self appraisal exercise undertaken by HR for addressing

capacity building needs and career growth aspects





Any other task assigned by the project as per requirements

Post Title : PROGRAMME MANAGER MARKET ACCESS



Position Purpose: Ensure that ILSP interventions related to livelihood enhancement are linked to markets of the wider economy to derive benefits of fair price discovery for products and services offered by the community in the project area. Qualifications & Experience:

Formal Academic

Graduate in science/ commerce with MBA preferably in Marketing / Agri business / Agri-marketing or allied fields.


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Relevant Training:


Work Experience

Minimum of 8-10 years work experience in rural development/ livelihood development/ agricultural development/ promoting rural produces preferably in mountain areas

Worked in designing & implementation of market-based development interventions

Preferred Skills:

Good technical knowledge of market development for rural products and techniques preferably in agricultural sector and its allied fields

Knowledge of business operations & value chain management

Good written and verbal communication skills

Proactive, work with minimum supervision and team builder Tasks Responsibility


Provide marketing related inputs into project plans to ensure that appropriate and adequate processes are detailed with clear standards

Take responsibility for market-based interventions and sub-projects and maintain linkages with marketing agencies at state level

Explore and negotiate backward and forward links with local and regional markets. Design and manage integrated marketing communications with the stakeholders

Maintain data base on events such as trade fairs, exhibitions and other events planned in the local, regional, national and international forums for ensuring project representation

Explore and negotiate the opportunities for joint ventures with growth oriented Federations/business entities

Provide technical back stopping to Assistant Managers

Provide timely and comprehensive inputs on practical aspects of backward and forward linkages

Periodic check of LC performance at field level as regard to market linkage

Liaison with business communities for building on business knowledge management that adds to resource centre

Identify enterprise certification procedures with Fair Trade Forum of India, and other local global initiatives such as ISO for micro and small scale, ISI equivalent etc

Ensure that data and information generated by the institution and M&E system is reviewed carefully to enable feed back to the project staff, arrange, if necessary additional technical inputs

Develop adequate documentation in digital (video/computer) and hard copies (brochures, technical papers etc) to build reference resource that details all aspects on the market issues including quality controls

Provide professional support to the CPM and Project Director on essential aspects for holding dialogues with Partner Agencies

Keep track of successful groups that would be useful in preparing lessons on innovative and successful market interventions

Explore and negotiate CSR initiative for socially and environmentally responsible marketing





the Project MIS



interventions


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Undertake analysis of project interventions to identify key learnings and challenges and




of project



finance etc








Post Title : Programme Manager Agriculture-Horticulture / Technical Officer



Position Purpose : Ensure that project support services to the community based organisations are planned and managed efficiently and effectively so that the project achieves its planned outcomes in terms of livelihood enhancement.


On deputation basis: Persons from Government departments in the Pay scale of 9,300-34,800 Grade pay 4,200 and having at least 5 years experience of working in multi disciplinary Livelihood/Watershed related projects

OR On Contractual basis:

Formal Academic:

Post Graduation in Agriculture and/or rural development or related fields,

Relevant Training:

Proficient in computer applications particularly MS Office

Work Experience

At least 10 years of experience in agricultural and rural business development

Experience of working with NGOs/Cooperatives/Farmer Associations handling livelihood or agribusiness is preferred

Experience of working in or with the private sector, and strong skills in market analysis and management as well as agribusiness development.

Preferred Skills:

Ability to plan technical interventions for community institutions and monitor their progress



104




Develop, review, update, and oversee the implementation of agribusiness strategy of project and collaborate with project staff, Partner Agencies, CBOs, government and private agencies

Identify the agriculture, horticulture, forestry commodities and post harvest technologies in which profitable value-chains can be established for designing commercially viable agribusiness value chains

Promote Medicinal and Aromatic Plant (MAP) related value chain activities

Collaborate with Forest Department and Van Panchayats on forestry related activities

Promote livestock related livelihood activity in collaboration with Uttarakhand Livestock Development Board

Work closely with Assistant Managers, Agriculture, Horticulture and forestry to conduct capacity building events for agribusiness stakeholders in each project district for business plans of identified value chains

Link agriculture-horticulture value chain products & enterprises to local and regional markets through trade fairs, product promotion events etc. in coordination with Programme Manager-Market Access and other stakeholders

Undertake production and resource planning as per market demands with project stakeholders. Accordingly production scheduling, adequate and timely input supply plan, quality checks, technology infusion for cultivation, harvesting and storage to be carried out.

Develop the content & design of technical brochures, handouts, pamphlets & other printing materials in collaboration with institutions identified under Innovation linkages

Based on agribusiness opportunities, promote agribusiness trade and contribute in showcasing the project outputs in regional trade fairs and product promotion events


Assist in preparation of AWPB including Procurement Plan, its implementation, monitoring

and reporting to IFAD, State Government and other Stakeholders

Ensure timely reporting of project activities and support for developing and maintaining the

Project MIS



interventions




Align project interventions to ensure compliance with the targeting and gender strategy of

project


activities under project like vocational training, innovation linkages, facilitating rural finance

etc




Make regular field visits to support LCs and project staff for preparation of business plans,

interaction with interested business partners and coordination with concerned stakeholders

Follow the Code of Conduct including formal dress code to maintain the decorum of the

Project

Prompt response to telephone calls, SMS‟s, e-mails and other communications related to

tasks and responsibilities


105


Post Title : MANAGER AUDIT

Location of Job : UGVS PMU, Dehradun (with significant time in Project Districts)

Reporting Line : Project Director, UGVS and Managing Director, UPASaC

Position Purpose : Ensuring that the finance management and accounting systems in the project are meeting standards of compliance as per the F&A rules, IFAD Guidelines and Statutory Compliances, through regular audits.


Formal Academic

Graduate of any discipline

Chartered Accountant from ICAI

Relevant Training

Proficient in accounting SOFTWARE package preferably Tally

Proficient in MS Office particularly computer based spread sheet (i.e. MS Excel)

Work Experience

Minimum of 10-12 years work experience in Audit & Accounting preferably 3-5 years experience in Externally Aided Projects

Good knowledge of International & Indian Accounting standards and chart of accounts

Additional Skills:

Proficient in the preparation of budget reviews & financial statements

Knowledge of statutory audit requirements for financial compliances

Proactive, work with minimum supervision and team builder

Preferred Skills:

Exposure to micro & small scale financing and enterprise accounting formats

Ability to work with multiple stakeholders especially in a structured output and outcome based partnership

Ability to interpret financial statements

Tasks and Responsibility Quarterly Audit of UPASaC, PMU and DMUs

Check allocation & utilization reports on external funds – grants, equity & borrowed funds

Check reimbursement claims submitted to CAAA & IFAD as per GoI procedures


Level of compliance of signatory powers as determined by the management following F & A rules on the following: o type of documents to be signed o Signing of bank cheques as per financial limits; and o types of payments

Check quality of books of accounts including supporting vouchers and receipts, and monthly consolidation

Conduct comprehensive audit of procurement processes, control elements and level of efficiency demonstrated by the Procurement Committees

Periodic Audit of PGs (During District Quarterly Audit)

Periodic audit of groups using a tool that would include the following broad parameters: o level of adherence to byelaws by members


106

o efficient and democratic use of group funds, project grants and other sources of funds

o group is engaged in sustaining their livelihoods; and o check accounting records and transactions.

Periodic Audit of LCs (During District Quarterly Audit)

Make necessary preparations for commissioning formal and structure audit periodically of all LCs to capture critical elements such as o quality of governance o controls and transparency in financial and non financial records o satisfaction of clients/members on the services provided by the LC o ability of staff in managing the services of the LC o ability to comply with liabilities in the form of financial and non financial credit,

statutory compliances, assets management, and achieved level of financial sustainability

Preparation of Reports & other tasks

Audit Reports to be submitted to management on Quarterly-basis

Analyze the materiality of deviation on the basis of its financial impact and risk involved

Determine the areas where the internal control procedures are weak and suggest corrective measures

Recommend the changes for strengthening the internal controls including timing in which the compliance to be completed



Any other tasks as assigned by the PD

Post Title : FINANCE MANAGER


Reporting Line : Project Director UGVS

Position Purpose: Ensure that financial resources mobilized from all sources are managed optimally in accordance with Finance & Administrative Rules and accounted for efficiently, transparently and within the prudential norms to achieve project targets as stated in Design Project Report and Working Papers of ILSP.


Formal Academic:

Graduate in any discipline and

ICWAI or ICAI; and / or


Relevant Training:



Work Experience



Experience in project & society accounting


107

Sound knowledge of Accounting Standards and Guidance Notes issued by the Institute of Chartered Accountants of India


Additional Skills:

Proficient in funds management

Proficient in the preparation of Annual Work Plan Budget & Project Financial Statements

Knowledge of statutory audit requirements for financial compliances and working in externally aided projects

Proactive, work with minimum supervision and work as team builder

Tasks

Consolidate annual work plan budgets (AWPBs) of the divisional units as per AWPB guidelines issued from time to time by the State Government and IFAD

Revision of AWBP on six monthly basis and providing feed back to Divisional Units

Incorporate the annual work plan budget of research institutions and other agencies engaged for project implementation in the consolidated AWPB



Submission of monthly/quarterly reimbursement claims to Central Project Coordination Unit (CPCU) for submission to CAAA & IFAD as per GoI procedures; and checking the receipts on reimbursement for reconciliation and variance controls

Submission of monthly and other reports to CPCU for onward submission to Government of Uttarakhand ( GoUK )

Ensure timely submission of reimbursement claims by divisional project units and other project partners for timely consolidation


Exercise signatory powers in accordance with F & A rules on the following: o type of documents to be signed, o signing bank cheques as per financial limits and o types of payments

Periodic monitoring funds thresholds allocated to divisions and other implementing partners

Ensure necessary but efficient checks and balances for funds transfers to divisions for meeting management expenses and project implementation expenditure as per the F & A rules

Provide access to records and data for internal and statutory audits as per guidelines of IFAD and F & A rules of UGVS. Provide support to management for preparing responses to issues raised by the auditors. Ensure follow up/implementation of recommendations

Provide necessary support to divisional units and auditors in the periodic internal audits; and assist management on the matters raised in the audit reports



Reconciliation of bank statements with project financial transactions by 10th of each month

Prepare Balance sheet, Income & Expenditure and project financial statements for IFAD , Government of Uttarakhand, Registrar of Societies, Department of Income Tax and other agencies.

Provide timely information on funds availability to procurement committee; and release of funds to facilitate procurements

Prepare and present financial statement in all review meetings – monthly, quarterly & six monthly and annual

Process the payments on the basis of duly verified measurement book (MB) of the civil works carried out under irrigation and infrastructure initiatives



108


Any other task assigned by the PD

Post Title : PROGRAMME MANAGER TOURISM Location of Job : UGVS PMU, Dehradun



Formal Academic:

Post-Graduate qualifications in any discipline preferably in tourism development

Relevant Training:


Work Experience

At least 10 years of experience in tourism development preferably in rural/eco tourism

Experience of working with NGOs/Cooperatives/Farmer Associations handling tourism preferred

Experience of working in or with the private sector, and strong skills in market analysis and management as well as ecotourism development.

Experience of working with government tourism department, boards, GMVN/KMVN preferably in hill regions for planning strategies on rural and/or rural tourism.

Preferred Skills


Proactive, work with minimum supervision, team building, leadership quality, soft spoken and empathy for the poor.



Desk research to develop a sound understanding of the tourism sector in context of ILSP, its markets and potential, using recent studies conducted in Uttarakhand and other mountain areas

Identify the main value chains within the tourism sector where both opportunities and constraints exist at various points in the value chain and where value can be added. Identify key player groups within each chain

Identify a priority set of interventions (across sectors, if appropriate) which will enable to compete in current and potential growth markets

Act as mentor to steer and advise on possible strategies for creation or promotion of potential value chains in ecotourism in the region. In this exercise the senior technical expert will interact closely with key players within and outside the state such as: Department of Tourism, Uttarakhand Tourism Board, Garhwal Mandal Vikas Nigam, Kumaon Mandal Vikas Nigam, Key private hoteliers in the region, principal tour operators within and outside the state, representatives from travel promotion media agencies etc.

Develop strategy for systematic promotion of identified opportunities in the tourism sector

Design of a program for establishing viable market linkages for locally produced goods and services with relevance to the tourism sector in close coordination with Manager, Market Linkages.


109

Help to formulate subject specific TORs for undertaking different consultancy assignments related to provision of different forms of technical assistance to be undertaken under ILSP.

Work closely with Assistant Managers-Tourism and Market access to conduct capacity building events for tourism stakeholders in each project district for developing value chain based business plans.

Build technical, managerial and transactional capacity of stakeholders involved in tourism sector





the Project MIS



interventions





of project



finance etc







Any other task assigned by the project as per requirements Post Title : ASSISTANT MANAGER FINANCE


Reporting Line : Finance Manager, UGVS

Position Purpose: To assist Finance Manager in ensuring that financial resources mobilized from all sources are managed optimally in accordance with Finance & Administrative Rules and accounted for efficiently, transparently and within the prudential norms to achieve project targets as stated in Design Project Report and Working Papers of ILSP.


Formal Academic:




Relevant Training:


110



Work Experience

Minimum of 5-8 years work experience in accounts, taxation & financial management preferably in Externally Aided Projects




Additional Skills:


Proficient in the preparation of Annual Work Plan Budget & project financial statements


Proactive and can work with minimum supervision.

Tasks

Assist in consolidating annual work plan budgets (AWPBs) of the divisional units as per AWPB guidelines issued from time to time by the State Government and IFAD

Assist in revision of AWBP on six monthly basis and providing feed back to Divisional Units

Assist in incorporating the annual work plan budget of research institutions and other agencies engaged for project implementation in the consolidated AWPB

Assist in budgetary controls and preparation of analysis report on utilization and variances

Assist in allocation & utilization reports on external funds – donations, equity & borrowed funds

Assist in submission of monthly/quarterly reimbursement claims to Central Project Coordination Unit (CPCU) for submission to CAAA & IFAD as per GoI procedures; and checking the receipts on reimbursement for reconciliation and variance controls

Assist in submission of monthly and other reports to CPCU for onward submission to Government of Uttarakhand ( GoUK ) as per guidelines given by GoUK

Assist in ensuring timely submission of reimbursement claims by district project units and other project partners for timely consolidation


Assist in ensuring necessary but efficient checks and balances for funds transfers to divisions for meeting management expenses and project implementation expenditure as per the F & A rules


Provide necessary support to divisional units and auditors in the periodic internal audits; and assist management on the matters raised in the audit reports



Prepare reconciliation of bank statements with project financial transactions by 10th of each month

Assist in preparation of Balance sheet, Income & Expenditure and project financial statements for IFAD, Government of Uttarakhand, Registrar of Societies, Department of Income Tax and other agencies.




111




Ensure timely payment of statutory liabilities like TDS etc



Any other task assigned by the Chief Project Director or Finance Manager Post Title : Manager Planning and Monitoring & Evaluation

Location of Job : UGVS M & E, Dehradun

Reporting Line : Project Director, UGVS and Managing Director, UPASaC

Position Purpose: To develop and implement M & E systems to track the project progress against parameters set in Log frame for ILSP. To plan and carry surveys like RIMS, KAP and Annual Outcome Surveys for onward submission of reports to the project stakeholders.


Formal Academic

Masters degree in areas like economics, rural development, anthropology, agriculture extension

Management/ PhD degree will be an added advantage.

Relevant Training


Work Experience

Minimum 8 years of professional experience in developing, implementing and management of projects preferably with international funding agencies like IFAD, World Bank etc. with at least four years of experience in participatory planning and M&E processes.

Proven experience with the logical framework approach and other strategic planning approaches, M&E methods and approaches (including quantitative, qualitative and participatory), training in M&E development and implementation, facilitating learning-oriented analysis sessions of M&E data with multiple stakeholders, information analysis and report writing.

Experience of working with NGOs preferred

Preferred Skills:

Good communication skills

Knowledge of audio visual tools including web sites/portals

Proactive and work with minimum supervision

Performance Tasks

Establishing an effective M&E system in UGVS and UPASaC

Providing support in building MIS in collaboration with the Manager MIS at the PMU and DMU level

Review and collate Division Office AWPs, data collection activities, survey work, preparation of various progress reports and analytical sessions and facilitate these at all levels.

Work closely with the Manager MIS and Statistical/ Systems Analyst

Undertake routine field checking of the work of enumerators and other M&E related field staff, supervise quality in the field and ensure data accuracy and completeness.

Supervise the generation of Division level AWPs and consolidate into an overall UGVS AWP


112

Support project management staff and technical staff in incorporating gender issues, poverty issues in the project M&E system (performance questions, indicators, sampling, methods, procedures, analysis of implementation and impact)

Facilitate all field staff and project component managers to communicate information from the field to the appropriate decision-making forum on the performance of activities undertaken in all sub components, processes and impacts

Coordinate, facilitate and undertake process monitoring activities and communicate the results systematically to the management

Work closely with the PMU and the Division Office to undertake RIMS, Annual Outcome and KAPS surveys and participate in the training programmes of staff for these surveys.

Participate in the development, regular revision and updating of the information system in coordination with Manager MIS related to progress with the project component to be monitored, identify problems and assess impact accurately.

Actively seek to understand problems and unexpected positive/negative impacts, discussing these with primary stakeholders and senior management.

Assess field reports to determine possible implications for implementation and agree on corrective action with appropriate decision makers (Project Director, PMU Managers and Partner Agencies)

Build capacity of M&E staff in the project.

Responsible and accountable for preparation of UGVS AWPB, updating the MIS, keep the M&E system up and running and linking M&E to Knowledge Management. Follow the Code of Conduct including formal dress code to maintain the decorum of the Project


Any other task assigned by PD from time to time. Post Title : Manager Knowledge Management

Location of Job : UGVS M&E, Dehradun

Reporting Line : Project Director, UGVS & Managing Director, UPASaC Position Purpose: To develop and mobilize good intellectual resources within the project which is accessible to project beneficiaries in digital and other convenient forms and locations to enable them enhance their knowledge and skills and the application of which will add to promoting their livelihoods so that the project objectives are well met. Qualifications & Experience:

Formal Academic:

Post Graduate degree in Communication, Social Sciences, NRM and other relevant discipline.

Relevant Training

Proficient in MS Office particularly MS Word.

Work Experience

Minimum 10-12 years experience in multidisciplinary rural development projects

Has written/edited/published communication material Preferred Skills:



Proactive and work with minimum supervision Performance Tasks

Core tasks


113

Review, sort and compile technical papers, case studies, project reports, compendiums etc by subject and location prepared by the project team based on the field demonstrations

Prepare compendium of relevant schemes that government, private sector and financial institutions are marketing to promote entrepreneurship and livelihood in the rural area especially in the mountain regions

Prepare data bank of NGOs, credible professionals by their field of specialization and locations of their services

Prepare data bank on the network institutions promoting development work for poverty reduction, livelihood, and other related fields

Regular search of web based sites that provide vital information on subjects related to livelihoods promotion for the beneficiaries relevant to ILSP project

Developing knowledge bank links for the in-house and external capacity building events undertaken by the project

Source and disseminate specific knowledge based materials that promotes gender participation and empowerment of women beneficiaries

Design/conduct/coordinate short studies, action research on subjects that can help the project stimulate learning, re-engineer processes and publish papers.

Provide assistance in designing the portal for ILSP through which the project can share the vital information/technology learnt through field demonstrations and otherwise; and seek attention of other resourceful institutions/credible professionals willing to partner with the project

Other tasks

Attend staff meeting at HO and periodically attend project staff meeting in the divisions on rotation basis

Work with the senior management technical team on themes that give impetus to the project work and team building

Appraise Project Director, Managing Director and CPM on the progress and the initiatives & strategic planning for UGVS and the Project

Set time with the CPM, MD and PD for six monthly and annual performance appraisal



Any other tasks as may be assigned by PD POST TITLE : MANAGER MANAGEMENT INFORMATION SYSTEMS

Location of Job : UGVS M & E, Dehradun

Reporting Line : Project Director, UGVS & Managing Director, UPASaC Position Purpose: To develop management information system within the project which is accessible to project stakeholders in digital and other convenient forms and locations to enable them enhance their knowledge and skills and the application of which will add to promoting their livelihoods so that the project objectives are well met. Qualifications & Experience:

Formal Academic:

Master Degree in Computer Science / MCA/ B.Tech or equivalent qualification

Work Experience

Minimum 5 years experience in relevant field

Experience in developing MIS Software/ Websites etc for development projects. Preferred Skills:



114

Good Command on o Side Scripting Technologies such as PHP/MySQL and also knowledge of Apache,

MSSQL, ASP, JavaScript, CSS3 and HTML5. o GIS, Java, SPSS, Statistics and Operation Research o Graphics - Photoshop, Coral Draw

Experience of designing, developing and managing databases

Knowledge of RDBMS and Data warehousing.

Proactive and work with minimum supervision Performance Tasks

Core tasks

Develop and implement Management Information System that caters to the information needs of the various stakeholders of ILSP

Oversee maintenance of IT infrastructure established at UGVS and UPASaC offices.

Ensure maintenance of Local Area Network (LAN) so that every user in the UGVS can share network resources and use it without any difficulty (internet, printer sharing of files etc.).

Provide technical advice as regards procurement of hardware, software, network related products and maintenance as per UGVS requirement

Create website for ILSP and ensure it is updated on regular basis.

Check the data coming from the division offices for completeness and providing feedback to divisions

Provide or facilitate training to Project staff in handling hardware and software as and when required

To support federations by developing various federations related MIS modules like institution module, business module, enterprise module, marketing module etc as per requirement

Troubleshooting and maintenance of existing databases of UGVS as well as installing new database servers if needed

Develop MIS systems for LCs and business entities promoted under the Project

To visualise the information needs of project stakeholders at various levels as derived from project logframe, appraisal reports, government directives and develop the project MIS in close coordination with Manager M&E and other Managers at PMU and DMUs

Other tasks

Attend staff meeting at HO and periodically attend project staff meeting in the divisions on rotation basis


Appraise Project Director, Managing Director and CPM on the progress and the initiatives & strategic planning for UGVS and the Project

Set time with the CPM, MD and PD for six monthly and annual performance appraisal



Any other tasks assigned by the management

POST TITLE : STATISTICAL OFFICER

Location of Job : UGVS M & E, Dehradun Reporting Line : Project Director, UGVS

Position Purpose : Ensure that data collection and its analysis, as per the needs of the key

stakeholders viz., Government of Uttarakhand, is carried out on regular basis.To ensure compliance of the provisions of the Right to Information Act under the Project.


115

Qualifications & Experience: On deputation basis: Persons from Statistical background working in the Government in the Pay scale of 9,300-34,800 Grade pay 4,200 for at least 7 years

Preferred Skills:





Ensure qualitative and quantitative data collection from three PIAs and CPCU related to project interventions and its analysis as per the needs of the Government of Uttarakhand and IFAD

Handle information flow under the Project for ensuring compliance with the provisions of Right to Information Act

Collect and analyse secondary data from Government and non-government sources for devising appropriate implementation strategy at Project level

Collect and analyse socio economic data of the project area and various schemes of related Government departments for in-depth analysis, comprehensive planning and meticulous implementation of the Project








Any other task assigned by the project as per requirements. -----------------------------------------------------------------------------------------------------------------------------------


116

Annex-1.4.8: Responsibilities of District PMO staff of UGVS

Post Title : DIVISIONAL PROJECT MANAGER

Location of Job : Divisional Management Units ( Almora , Bageshwar , Chamoli, Tehri , Uttarkashi ) Reporting Line : Chief Programme Manager and Project Director

Position Purpose: Ensure that Food Security and Livelihood Enhancement component of ILSP are managed efficiently and effectively through coordinating and supporting resources afforded to the project. To play critical link in balancing the social development and social entrepreneurship development for better livelihood of project households and the community at large. In pursuit, develop and build sustainable financial and entrepreneurial linkages with market elements and ensure adequate and transparent mechanisms are in place for better accountability of the project and the project achieves its goal and objectives.


Formal Academic

Graduate from recognized university; and

Relevant postgraduate qualification

Relevant Training


Work Experience

Minimum of 8-10 years work experience in development programs and resources planning

Sound knowledge of SHGs/ Federations/ CBOs functioning

Hands on experiences in managing partnerships and working with varied stakeholders e.g. Government, private sector service providers, NGOs, formal & non formal financial institutions

Ability to prepare and analyse budgets/ financial statements/ project targets and draw out trends that feed into planning and management decisions

Preferred Skills:

Excellent skills in resources (HR, financial, materials & others) coordination, management; and negotiation

Knowledge of prudent norms for fulfilling statutory compliances

Exposure to micro & small scale enterprise especially in rural areas

Proactive, work with minimum supervision and good team builder


Develop a clear understanding of project strategy and its components both on the social development & social entrepreneurship development across the stakeholders

Provide inputs into business plans developed by the project technical team of Managers, Assistant Mangers and others

Provide inputs in the processes of selecting appropriate financial instruments that would be necessary for individual/group enterprises for the growth of their business

With support from PMU staff hold monthly portfolio review of enterprise financing from FFIs for the district

Conduct monthly/quarterly reviews with Partner Agencies on the program activities committed for the period and its outputs/outcomes

Conduct monthly review with the divisional team and solicit participation from PMU to review and plan divisional level activities for the coming month and quarter

Ensure quarterly review meetings at district/block/village are organized timely


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Provide support to internal and external auditors; and review and comply with the pertinent observations that are directly concerning project management at the division

Identify areas of competency where capacity building of staff is needed and work with concerned Managers to address it comprehensively

Submit timely funds requests to PMU & ensure its onward disbursements & monitor its qualitative utilization

Recruit staff and deploy as per approval given by the Project Director

Ensure procurement processes as per F & A rules and IFAD requirement and procure goods and services that have been delegated by the Project Director

Negotiate financial leverages from FFIs, government schemes, private sector engagements etc

Develop convergences with line departments on one on one basis to source materials and technology essential for project beneficiaries mainstreaming e.g. NRLM, health schemes, extension services, common service facilities

Provide support to the Project Director and Financial Controller to facilitate transparent, efficient and complete compliance of procedures of funds utilization vis a vis project targets achieved and in variances

Provide professional support to the Project Director on critical aspects of the project planning, management, and accountability

Responsible to present timely progress reports and documents to Senior management and other agencies

Present business reports in meetings held as per project schedules – monthly, quarterly & six monthly and annual

Undertake periodic field visits to assess the performance on site. At least 12 working days/month should be dedicated to field visits and feedback loops should be followed to relay the field observations and issues to colleagues for timely and comprehensive action

Hold six monthly and annual performance appraisals of district staff as per the procedures and processes adopted in the project. Timely relay the documents to PMU

Fulfil administrative responsibilities such as leave matters of staff under direct supervision, recruitment, disciplinary action





the Project MIS



interventions





of project



finance etc






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Post Title : ASSISTANT MANAGER MARKET ACCESS & TOURISM

Location of Job : Divisional Management Units ( Almora, Bageshwar, Chamoli, Tehri, Uttarakashi )

Reporting Line : Divisional Project Manager, Programme Manager Market Access and Programme Manager Tourism

Position Purpose: Ensure that ILSP interventions related to livelihood enhancement are linked to markets of the wider economy to derive benefits of fair price discovery for products and services offered by the community in the project area. Qualifications & Experience:

Formal Academic

Graduate in science/ commerce / business administration with MBA preferably in Marketing / Agri business / Agri-marketing or allied fields.

Relevant Training:


Work Experience

Minimum 5 years work experience in rural development/ livelihood development/ agricultural development/ promoting rural produces preferably in mountain areas

Worked in designing & implementation of market-based development interventions

Preferred Skills:

Good technical knowledge of market development for rural products and techniques preferably in agricultural sector and its allied fields

Knowledge of business operations & value chain management

Good written and verbal communication skills

Proactive and can work with minimum supervision Tasks and Responsibility


Provide technical inputs into project plans to ensure that appropriate and adequate processes are detailed with clear standards

Assist in implementing market-based interventions and sub-projects and maintain linkages with technical agencies at state level.

Assist in exploring and negotiating backward and forward links with local and regional markets, CII, KVIC, Retail Chains, Trade Fairs, Companies with CSR initiatives, Government procurements, Organic boards, Handicraft, Textiles departments and others, based on the Value Chains the project has selected to work with the rural entrepreneurs etc

Assist in preparing annual data base on events such as trade fairs, exhibitions and other events planned in the local, regional, national and international forums

Assist in exploring and negotiating the opportunities for joint ventures with growth oriented Federations/business entities

Provide timely and comprehensive inputs on practical aspects of backward and forward linkages

Periodic check of LC performance at field level as regard to market linkage


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Liaison with business communities for building on business knowledge management that adds to resource centre

Assist in identifying enterprise certification procedures with Fair Trade Forum of India and other local global initiatives such as ISO for micro and small scale, ISI equivalent etc

Assist in ensuring that data and information generated by the institution and M&E system is reviewed carefully to enable feed back to the project staff, arrange, if necessary additional technical inputs

Develop adequate documentation in digital (video/computer) and hard copies (brochures, technical papers etc) to build reference resource that details all aspects on the market issues including quality controls

Keep track of successful groups that would be useful in preparing lessons on innovative and successful market interventions

Assist in undertaking studies/survey/develop case studies of outputs, outcome and impact studies with approval from the management and as per AWPB

Identify the main value chains within the tourism sector, and key player groups within each chain

Assist in promoting tourism value chain in collaboration with stakeholders involved in tourism business

Assist in building technical, managerial and transactional capacity of stakeholders involved in tourism sector





the Project MIS



interventions

Undertake analysis of project interventions to identify key learning and challenges and




of project



finance etc








Post Title : ASSISTANT MANAGER FINANCE

Location of Job : Divisional Management Units (Almora, Bageshwar, Chamoli, Tehri, Uttarakashi)


120

Reporting Line : Divisional Project Manager

Position Purpose: To ensure at Divisional Level that financial resources mobilized from all sources are managed optimally in accordance with Finance & Administrative Rules and accounted for efficiently, transparently and within the prudential norms to achieve targets as per the approved Annual Work Plan Budget for the Division.


Formal Academic:




Relevant Training:



Work Experience





Additional Skills:





Tasks

Consolidate Annual Work Plan Budget (AWPB) of the divisional unit as per AWPB guidelines issued from time to time by the PMU.

Revision of AWBP on six monthly basis for onward submission to PMU



Submission of monthly/quarterly reimbursement claims to PMU for onward submission to CAAA & IFAD through CPCU as per GoI procedures; and checking the receipts on reimbursement for reconciliation and variance controls

Submission of monthly and other reports to PMU for onward submission to Government of Uttarakhand ( GoUK ) as per guidelines given by GoUK

Ensure timely submission of reimbursement claims by divisional unit and other project partners for timely consolidation


Ensuring necessary but efficient checks and balances for funds transfers to PNGOs and other Project Partners for meeting management expenses and project implementation expenditure as per the F & A rules


Provide necessary support to PMU and auditors in the periodic internal audits and assist management on the matters raised in the audit reports



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Preparation of Divisional Balance sheet, Income & Expenditure and project financial statements for IFAD, Government of Uttarakhand, Registrar of Societies, Department of Income Tax and other agencies.


Co-ordinate procurements at Divisional level








Any other task assigned by Divisional Manager.

Post Title : ASSISTANT MANAGER (AGRICULTURE-HORTICULTURE)

Location of Job : Divisional Management Units (Almora, Bageshwar, Chamoli, Tehri, Uttarakashi)

Reporting Line : Divisional Project Manager and Programme Manager, Agriculture –

Horticulture / Technical Officer

Position Purpose : Ensure that project support services to the community based organisations are planned and managed efficiently and effectively so that the project achieves its planned outcomes in terms of livelihood enhancement.

Qualifications & Experience: On Contractual basis :

Formal Academic:

Post Graduation in Agriculture and/or rural development or related fields,

Relevant Training:


Work Experience

At least 5 years of experience in agricultural and rural business development

Experience of working with NGOs/Cooperatives/Farmer Associations handling livelihood or agribusiness is preferred

Experience of working in or with the private sector, and strong skills in market analysis and management as well as agribusiness development.

Preferred Skills:

Ability to plan technical interventions for community institutions and monitor their progress


Proactive and can work with minimum supervision



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Assist in developing, reviewing, updating and overseeing the implementation of agribusiness strategy of project and collaborate with project staff, Partner Agencies, CBOs, government and private agencies

Assist in identifying the agriculture-horticulture commodities and post harvest technologies in which profitable value-chains can be established for designing commercially viable agribusiness value chains

Assist in promoting Medicinal and Aromatic Plant (MAP) related value chain activities

Assist in collaborating with Forest Department and Van Panchayats on forestry related activities

Promote livestock related livelihood activity in collaboration with Uttarakhand Livestock Development Board

Conduct capacity building events for agribusiness stakeholders in division for business plans of identified value chains

Link agriculture-horticulture value chain products & enterprises to local and regional markets through trade fairs, product promotion events etc.

Assist in developing the content & design of technical brochures, handouts, pamphlets & other printing materials in collaboration with institutions identified under Innovation linkages

Based on agribusiness opportunities, promote agribusiness trade and contribute in showcasing the project outputs in regional trade fairs and product promotion events

Assist the DPM and Programme Manager, Agriculture – Horticulture / Technical Officer for preparation of reports & presentations as and when required including the AWPB, Progress reports etc.


Assist in preparation of AWPB including Procurement Plan, its implementation, monitoring

and reporting to IFAD, State Government and other Stakeholders

Ensure timely reporting of project activities and support for developing and maintaining the

Project MIS



interventions




Align project interventions to ensure compliance with the targeting and gender strategy of

project


activities under project like vocational training, innovation linkages, facilitating rural finance

etc







Any other task assigned by the project as per requirements.

Post Title : ASSISTANT MANAGER, GENDER AND INSTITUTIONS Location of Job : Divisional Management Units ( Almora, Bageshwar, Chamoli,

Tehri, Uttarakashi )


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Reporting Line : Divisional Project Manager and Programme Manager,

Gender and Institutions


Formal Academic:

Post graduate qualification in development studies, management, or any other relevant qualification in social sciences.

Relevant Training:


Work Experience

Minimum 5 years work experience in working with community based institutions preferably in mountain areas

Hands on experience of designing & implementing livelihood based interventions with community based institutions

Preferred Skills

Ability to plan capacity building interventions for community institutions and monitor their progress


Proactive and can work with minimum supervision


Assist in developing and implementing easy to comprehend formats for capturing relevant and useful data for analysis

Assist in reviewing annual targets and budgets for institution building and community development

Ensure that periodic checks are made to all institutions with special attention to those having significant monetary investments by the project so that risks factors are well mitigated and outputs are at least as per benchmarks

Monitor gender orientation of the Partner Agencies

Review participation of women in community development activities & decision making processes and facilitate improving these processes geared to building gender equity

Data and information generated by the institution and M&E system is reviewed carefully to enable feed back to the project staff, arrange, if necessary additional technical inputs

Develop adequate documentation in digital (video/computer) and hard copies (brochures, technical papers etc) to build reference resource that details all aspects on the institution building process including quality controls

Work in close coordination with Managers at DMU level on various aspects of institutional development including writing technical papers and making presentations

Work with M&E wing on data analysis and reports on all inputs provided to community institutions

Keep track of successful producer groups and livelihood collectives that would be useful in preparing lessons on viable institutions

Assist in identifying areas of advocacy and policy influencing and work with other staff and partners for pursuing the agenda on advocacy and policy


Assist in preparation of AWPB including Procurement Plan, its implementation, monitoring and reporting to IFAD, State Government and other Stakeholders

Ensure timely reporting of project activities and support for developing and maintaining the Project MIS


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Provide support for conducting Annual Outcome Surveys, Periodic surveys and Impact evaluations undertaken by the project and use the findings for designing future interventions









Any other task assigned by the project as per requirements Post Title : Assistant Manager Planning, M&E and

Knowledge Management

Location of Job : Divisional Management Units ( Almora, Bageshwar, Chamoli, Tehri, Uttarakashi)

Reporting Line: : Divisional Project Manager, Programme Manager Planning &

Monitoring and Evaluation and Programme Manager Knowledge Management

Position Purpose: To assist in developing and implementing M & E systems to track the project progress against parameters set in Log frame for ILSP. To plan and carry surveys like RIMS, KAP and Annual Outcome Surveys for onward submission of reports to the project stakeholders. To assist in developing and mobilizing good intellectual resources within the project which is accessible to project beneficiaries in digital and other convenient forms and locations to enable them enhance their knowledge and skills and the application of which will add to promoting their livelihoods so that the project objectives are well met.


Formal Academic

Masters degree in areas like economics, rural development, anthropology, agriculture extension, Communication, Social Sciences, NRM and other relevant discipline

Management/ PhD degree will be an added advantage

Relevant Training


Work Experience

Minimum 5 years of professional experience in developing, implementing and management of projects preferably with international funding agencies like IFAD, World Bank etc. with at least four years of experience in participatory planning and M&E processes.

Proven experience with the logical framework approach and other strategic planning approaches, M&E methods and approaches (including quantitative, qualitative and participatory), training in M&E development and implementation, facilitating learning-


125

oriented analysis sessions of M&E data with multiple stakeholders, information analysis and report writing.

Experience of working with NGOs preferred

Preferred Skills:



Proactive and work with minimum supervision

Tasks and responsibility Core responsibilities

Assist in establishing an effective M&E system in UGVS and UPASaC

Providing support in building MIS in collaboration with the Manager MIS at DMU level

Review and collate Division Office AWPs, data collection activities, survey work, preparation of various progress reports and analytical sessions and facilitate these at all levels

Undertake routine field checking of the work of enumerators and other M&E related field staff, supervise quality in the field and ensure data accuracy and completeness

Supervise the generation of Division level AWPs

Support project management staff and technical staff in incorporating gender issues, poverty issues in the project M&E system (performance questions, indicators, sampling, methods, procedures, analysis of implementation and impact)

Facilitate all field staff and project component managers to communicate information from the field to the appropriate decision-making forum on the performance of activities undertaken in all sub components, processes and impacts

Coordinate, facilitate and undertake process monitoring activities and communicate the results systematically to the management

Work closely with the PMU and the Division Office to undertake RIMS, Annual Outcome and KAPS surveys and participate in the training programmes of staff for these surveys

Participate in the development, regular revision and updating of the information system in coordination with Manager MIS related to progress with the project component to be monitored, identify problems and assess impact accurately

Actively seek to understand problems and unexpected positive/negative impacts, discussing these with primary stakeholders and senior management

Responsible and accountable for preparation of Divisional AWPB, updating the MIS, keep the M&E system up and running and linking M&E to Knowledge Management

Review, sort and compile technical papers, case studies, project reports, compendiums etc by subject and location prepared by the project team based on the field demonstrations

Assist in developing knowledge bank links for the in-house and external capacity building events undertaken by the project

Assist in sourcing and disseminating specific knowledge based materials that promotes gender participation and empowerment of women beneficiaries

Provide assistance in designing the portal for ILSP through which the project can share the vital information/technology learnt through field demonstrations and otherwise; and seek attention of other resourceful institutions/credible professionals willing to partner with the project




of project



finance etc




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Post Title : INTERNAL AUDITORS

Location of Job Divisional Management Units (Almora, Bageshwar, Chamoli,

Tehri, Uttarakashi)

Reporting Line : Audit Manager and PD, UGVS and MD, UPASaC

Position Purpose : Ensuring that the finance management and accounting systems in

the project are meeting standards of compliance as per the F&A rules, IFAD Guidelines and Statutory Compliances through regular audits.


Formal Academic

Graduate in Commerce/science and/or

ICWA(Inter) or CA(Inter)

Relevant Training

Proficient in accounting package preferably Tally

Proficient in MS Office particularly computer based spread sheet (i.e. MS Excel)

Work Experience

Minimum of 3-5 years work experience in Audit & Accounting preferably 1-2 years exposure to SHGs and Federations

Good knowledge of International & Indian Accounting standards and chart of accounts

Additional Skills:

Proficient in review of financial statements

Knowledge of statutory audit requirements for financial compliances

Proactive and work with minimum supervision Tasks and Responsibility Quarterly Audit of UPASaC, PMU, DMUs and Partner Agencies

Check allocation & utilization reports on external funds – grants, equity & borrowed funds

Check reimbursement claims submitted to PMU for onward submission to CAAA & IFAD as per GoI procedures


Level of compliance of signatory powers as determined by the management following F & A rules on the following: o type of documents to be signed o Signing of bank cheques as per financial limits; and o types of payments

Check quality of books of accounts including supporting vouchers and receipts, and monthly consolidation


127

Conduct comprehensive audit of procurement processes, control elements and level of efficiency demonstrated by the Procurement Committees

Periodic Audit of PGs

Periodic audit of groups using a tool that would include the following broad parameters: o level of adherence to byelaws by members o efficient and democratic use of group funds, project grants and other sources of

funds o group is engaged in sustaining their livelihoods; and o check accounting records and transactions.

Periodic Audit of LCs

Make necessary preparations for commissioning formal and structure audit periodically of all LCs to capture critical elements such as o quality of governance o controls and transparency in financial and non financial records o satisfaction of clients/members on the services provided by the LC o ability of staff in managing the services of the LC o ability to comply with liabilities in the form of financial and non financial credit,

statutory compliances, assets management, and achieved level of financial sustainability

Preparation of Reports & other tasks

Audit Reports to be submitted to Audit Manager on monthly basis



Any other tasks as assigned by the PD --------------------------------------------------------------------------------------------------------------------------------------


128

Annex-1.4.9: Responsibilities of UPASAC staff

Post Title : MANAGING DIRECTOR Location of Job : UPASaC, Dehradun Reporting Line : Chairman , UPASaC

Position Purpose : To ensure that the financial inclusion efforts are properly aligned with field

implementation processes of PIAs under Food Security and Livelihood Enhancement Component. To develop strategic tie ups with FFIs in expanding their financial services reach, bringing innovative financial products and leveraging credit in collaboration under Development Finance Fund.

Qualifications & Experience: On deputation basis: Project Director, UGVS to hold as additional charge.

Tasks and responsibilities

Ensure co-ordination with other PIAs viz., Uttarakhand Gramya Vikas Samiti and Project Society of Watershed Management Directorate in facilitating bank linkage for the producer groups and livelihood collectives formed under the project

Execute MoUs with Formal Financial Institutions for ensuring bank linkages and expanding their financial reach in project areas

Organise and lead the financial literacy campaign in the project area in collaboration with partners

Support RFI in their branch expansion efforts to make financial services available at the door step of clients in project area

Commission studies and surveys to bring out the risk management needs of the project beneficiaries and piloting with other agencies to evolve new products

Devising strategy for implementation of Development Finance Fund to bring innovative financial products and leverage credit from FFIs



Any other task assigned by the Chairman

Post Title : CHIEF EXECUTIVE OFFICER

Location of Job : UPASaC, Dehradun

Reporting Line : Managing Director

Position Purpose: To co-ordinate and facilitate Formal Financial Institutions (FFIs) in expanding their financial services reach in the Project Area. To bring innovative products in rural finance under development finance fund and to leverage credit from FFIs.

Qualifications & Experience: On deputation basis: Persons from any Government Financial Institutions / Nationalized Banks working in the scale of Deputy General Manager or above.



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Formal Academic:


Member of ICWAI or ICAI; and / or


Work Experience

Minimum 15-20 years work experience in promoting and developing micro and small enterprises.

10 year experience of financial sector, especially in enterprise finance, microfinance, NGO, finance through Banks‟ in rural area.

5 Year experience in executive leadership.

At least 5 year experience in hilly area for promoting and financing enterprises.

Additional Skills:

i. Exposure to micro and small scale enterprises especially in rural area. ii. Proficient in the preparation/review of financial statements iii. Ability to communicate fluently in English and Hindi. iv. Capacity to work with different stakeholders such as NGOs, grass root institutions, social

entrepreneurs and govt. departments

Tasks and responsibility Core responsibilities

To liaise with other PIAs in facilitating bank linkages of the groups formed under the Project and promoting various financial products in partnership with financial institutions.

Select/develop appropriate and innovative financial instruments under development finance fund that would be necessary for individual/group enterprises

To co-ordinate and facilitate Formal Financial Institutions (FFIs) in expanding their financial services reach in the Project Area.

Promote Business Correspondent / Business Facilitator model of banks for financial inclusion.

To bring innovative products in rural finance under development finance fund to leverage credit from FFIs.

Ensure monthly portfolio review of enterprise financing (debt & equity), leveraged funds from FFIs; and receipts in the form of interest, commissions and dividends etc.

Provide necessary support to internal and external auditors; and review the pertinent observations that are directly concerning business related responsibilities

Provide necessary support to the Managing Director to facilitate transparent, efficient and complete compliance of procedures of funds utilization, procurement of goods and services for ILSP; and compliance to F & A rules

Partner with insurance companies and technical service providers to introduce risk management products for rural households

Present progress reports and documents to senior management and Board of Directors

Manage schedule of meetings for the Board of Directors and ensure that the minutes of the meeting(s) are prepared and transmitted as per the rules and regulation stipulated in the Articles of Association of the Company

Assist the Managing Director in the management meetings, portfolio performance reviews, AWPB planning and review meetings

Hold six monthly and annual performance appraisals of senior level staff at the HO. Submit each staff‟s appraised report as per the prescribed form with recommendation to the Managing Director for final review





the Project MIS


130



interventions





of project



finance etc








Post Title : MANAGER (DEVELOPMENT FINANCE)


Reporting Line: Chief Executive Officer (CEO), ILSP Position Purpose: To assist the Chief Executive Officer in co-ordinating and facilitating Formal Financial Institutions (FFIs) in expanding their financial services reach in the Project Area. To assist the CEO in bringing innovative products in rural finance under development finance fund to leverage credit from FFIs. Qualifications & Experience:

On deputation basis: Persons from any Government Financial Institutions / Nationalized Banks working in the scale of Assistant General Manager or from Co-operative Banks working in the scale of General Manager


Formal Academic:


MBA with specialization in Finance or

CA (Inter) / ICWA (Inter)

Work Experience

Minimum 10 years work experience in promoting and developing micro and small enterprises.

7 year experience of financial sector, especially in enterprise finance, microfinance, NGO, finance through Banks‟ in rural area.

At least 5 year experience in hilly area for promoting and financing enterprises.


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Advanced knowledge of computer applications and packages and ability to integrate technology into office and project activities

Good knowledge of products/services and procedures of banks, insurance companies and other financial institutions

Additional Skills:

i. Exposure to micro and small scale enterprises especially in rural area. ii. Proficient in the preparation/review of financial statements iii. Ability to communicate fluently in English and Hindi. iv. Capacity to work with different stakeholders such as NGOs, grass root institutions, social

entrepreneurs and govt. departments

Tasks Core responsibilities

To assist in liaising with other PIAs in facilitating bank linkages of the groups formed under the Project and promoting various financial products in partnership with financial institutions

Explore and negotiate one on one basis with the commercial banks, Regional Rural banks, Primary Cooperatives, the debt funds in the form of CCL, term loans based on the Value Chains that the project has selected to work with the rural entrepreneurs; and also the business plans that the project team has prepared for seeking funds

To assist in selecting/developing appropriate and innovative financial instruments under development finance fund that would be necessary for individual/group enterprises

To co-ordinate and facilitate Formal Financial Institutions (FFIs) in expanding their financial services reach in the Project Area.

To assist in promoting Business Correspondent / Business Facilitator model of banks for financial inclusion.

Assist in bringing innovative products in rural finance under development finance fund to leverage credit from FFIs.

Assist in monthly portfolio review of enterprise financing (debt & equity), leveraged funds from FFIs; and receipts in the form of interest, commissions and dividends etc.

Provide necessary support to internal and external auditors; and review the pertinent observations that are directly concerning business related responsibilities

Provide necessary support to the CEO to facilitate transparent, efficient and complete compliance of procedures of funds utilization, procurement of goods and services for ILSP; and compliance to F & A rules

Facilitate partnership with insurance companies and technical service providers to introduce risk management products for rural households

Assist and build the capacity of Livelihood Collectives in formulating business plans and making financial analysis of their business activities

Assist the CEO in the management meetings, portfolio performance reviews, AWPB planning and review meetings

Any other tasks as assigned by the Managing Director





the Project MIS



interventions





of project


132



finance etc








Post Title : Deputy Manager Finance


Reporting Line : Chief Executive Officer

Position Purpose: To ensure that financial resources mobilized from all sources are managed optimally in accordance with Finance & Administrative Rules and accounted for efficiently, transparently and within the prudential norms to achieve project targets as stated in Design Project Report and Working Papers of ILSP.


Formal Academic:




Relevant Training:



Work Experience





Additional Skills:





Tasks


133

Prepare Annual Work Plan Budgets (AWPB) as per guidelines issued from time to time by the State Government and IFAD

Revision of AWBP on six monthly basis

Ensure budgetary controls and preparation of analysis report on utilization and variances

Prepare allocation & utilization reports on external funds – donations, equity & borrowed funds

Ensure submission of monthly/quarterly reimbursement claims to Central Project Coordination Unit (CPCU) for submission to CAAA & IFAD as per GoI procedures; and checking the receipts on reimbursement for reconciliation and variance controls

Ensure submission of monthly and other reports to CPCU for onward submission to Government of Uttarakhand ( GoUK ) as per guidelines given by GoUK


Ensure necessary but efficient checks and balances for funds transfers to divisions for meeting management expenses and project implementation expenditure as per the F & A rules

Provide access to records and data for internal and statutory audits as per guidelines of IFAD. Provide support to management for preparing responses to issues raised by the auditors. Ensure follow up/implementation of recommendations




Ensure preparation of Balance sheet, Income & Expenditure and project financial statements for IFAD, Government of Uttarakhand, Registrar of Societies, Department of Income Tax and other agencies.







Prompt response to telephone calls, SMS‟s, e-mails and other communications related to tasks and responsibilities Any other task assigned by the Chief Executive Officer.

Post Title : Rural Finance Coordinators

Location of Job : Almora , Bageshwar , Chamoli, Tehri , Uttarkashi ,

Rudraprayag, Pauri , Champawat , Pithoragarh , Nainital Reporting Line : Manager (Development Finance)

Position Purpose : To co-ordinate with Formal Financial Institutions (FFIs) in expanding their financial services reach in the Project Area. To promote innovative products in rural finance under development finance fund to leverage credit from FFIs. Qualifications & Experience:

On Contractual basis: Formal Academic:

Graduate in any discipline Work Experience

Minimum 5 years work experience in promoting and marketing financial products preferably in rural areas


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1-2 years of experience of working as Business Facilitator for Banks or as Insurance agent for life or general insurance products or as Post Office agent will be an added advantage

Additional Skills: Good communication skills. Good knowledge of products / services and procedures of banks, insurance companies and

other financial institutions Capacity to work with community in the remotest and hilly regions of project area.

TasksCore responsibilities

To promote the financial products of UPASaC and Rural Financial Institutions with the Self Help Groups, Producer Groups and Federations within the project area

To assist the community in completion of formalities related to bank account opening, business proposal and loan applications for term loans and cash credit

Liaise with Formal Financial Institutions (FFIs) to engage them in financing Self Help Groups, Producer Groups and Federations

Assist the project in organising training and workshops on financial literacy Provide handholding support to the Business Facilitators supported under the Project

towards attaining viability and sustainability in their operations To carry out necessary inspection of security as provided in the covenants for finance

extended or facilitated by the Project Coordinate with Partner Agencies and Divisional Management Unit teams in issues related

with linkages with formal financial institutions Assist the partner insurance companies and technical service providers in introducing risk

management products for rural household especially covering health risk, weather risk in crop production and risk of loss of agriculture assets.

Any other tasks as assigned by the Managing Director

Collaborative responsibilities Assist in preparation of AWPB including Procurement Plan, its implementation, monitoring

and reporting to IFAD, State Government and other Stakeholders Ensure timely reporting of project activities and support for developing and maintaining the

Project MIS Provide support for conducting Annual Outcome Surveys, Periodic surveys and Impact

evaluations undertaken by the project and use the findings for designing future interventions









Any other task assigned by the project as per requirements ---------------------------------------------------------------------------------------------------------------------------------------


135

Annex-1.4.10: Role and Responsibilities of WMD Staff STATE LEVEL

S. No.

Institution Composition Role Accountable to

1. PD Appointed by State/WMD

Supervision, direction & coordination at the State level

Member-Secretary of UWDU- PSWMD

WMD

2. UWDU- PSWMD

A part of WMD, a registered society under Societies Registration Act ,1860

Provide overall planning, direction, support and coordination to the project

Ensure capacity building of project staff, GPs, RVCs, UGs and individuals to facilitate effective implementation of the project as per its objectives

Coordinate with external stakeholders such as the CPCU, UGVS, UPASAC, State Government and IFAD

Resolve all disputes placed before it

WMD/State Government

3. WMD Headed by Director/CPD

Administrative control over the project staff.

Work as office of UWDU- PSWMD

State Government

FIELD LEVEL INSTITUTIONS

S.No. Institution Composition Role Accountable to

1. MDT (multi-disciplinary team)

4-5 experts Provide technical guidance to GP & village communities

Sign running bills & completion reports of activities after due verification .Coordinate development of watershed treatment plans for inter-GP spaces

WMD & GP

2. FNGO Hired by UWDU- PSWMD

Mobilize village communities & provide complete information on the project

Facilitate PRAs at the Revenue Village and GP levels; focus on gender sensitization & social equity as per the ESG

Assist GP to plan and implement the project

Formation and promotion of Producer Group (PGs) and Livelihood Collective (LCs)

Regional PD and UWDU- PSWMD

3 Unit In charge Appointed by WMD and supported by MDT

Coordinate the MDTs , FNGOs and their interaction with GPs

Facilitate technical guidance to GP & village communities

Supervise that the bills and reports of activities are duly verified and signed by concerned persons

Coordinate development of watershed treatment plans for inter-GP spaces

Field appraisal of GPWDPs during preparation stage and compliance of approved GPWDP

DPD and GP

4. DSA

(Divisional Support Agency)

Hired by UWDU- PSWMD

Development of Division level action plan of farming systems and livelihoods.

Facilitation and coordination of Producer Groups (PGs), VPGs( Vulnerable Producer Groups) and Livelihood Collective (LCs) in implementation of

UWDU- PSWMD


136

S.No. Institution Composition Role Accountable to

FSIP, LIP and AUP

To help group members to plan their production and marketing of crops, and also provide technical assistance and managerial support to LCs, building their capacity for record keeping and business planning.

Dissemination of improved agricultural practices and extension services

To facilitate technical training and innovative practices for vulnerable groups and individuals.

Development of sub-sector value chains through improved post-harvest handling and logistics.

5. DPD Appointed by WMD

Approve and Review GPWDPs

Ensure compliance of ESMF

Sign sub-project agreements with GPs

Transfer monies to GPs

Conflict resolution among GPs, MDTs and FNGOs

Overall control of DSA

UWDU- PSWMD & WMD

6. Regional PDs Appointed by WMD

Supervise, coordinate and facilitate DPDs in their region

Overall control of FNGOs and DSAs

M & E of the project

UWDU- PSWMD & WMD

PANCHAYAT-LEVEL INSTITUTIONS

S. No.


1. Gram Sabha All adult voters of the Gram Panchayat

To discuss & approve all major decisions related to GPWDP

Ensure inclusion of disadvantaged groups such as women, poor, SC/ST & other deprived people

Monitor the working of GP

Village community

2. Gram Panchayat

Gram Pradhan & Ward Members

Sign all appropriate agreements with WMD for participation in the project

Assist NGOs in mobilization of village communities

Open project bank account & judiciously manage project funds

Manage project expenditure as per AWP of GPWDP

Convene Gram Sabha meetings

Ensure complete transparency & accountability by all GP-level institutions & individuals involved in the project

Ensure Contribution by Beneficiary

Gram Sabha and WMDs

3. Water & Watershed Committee

Committee of the GP under the chairmanship of Gram Pradhan

Lead the process of planning & implementing GPWDP

Manage the Vulnerable Groups Fund

Assist NGOs in mobilization of village communities

Submit timely monthly and annual financial reports to WMD

Ensure that the GP annual accounts are

Gram Panchayat


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S. No.


audited on a timely basis and submitted to the WMD

4. RVC All adult voters of the revenue village / hamlet: Constituted by the WWC under the chairmanship of Gram Pradhan / Ward Member

Lead the process of preparing RVC Proposals

If contracted so by the GP, implement GPWDP at the village level

Ensure equity for all, especially the disadvantaged groups

Collection of beneficiary contribution

Gram Panchayat

5. Van Panchayat VP Sarpanch, VP Members

Implement all plantation related activities under the project

Coordinate with concerned Forest Department office for technical and management issues.

Gram Panchayat

6.. Women Motivator

Designated woman at the village level

Mobilize women of the village to ensure their voice & choice is included in the project

Facilitating formation of PGs/VPGs & extending all possible support to them

MDT

7. Village level Project Staff

Nominated by the Project

Convening of all Mandatory and all required GP , Gram Sabha and WWC meetings and upkeep of minutes of the meeting

Assist in the procurement process by being designated as Secretary of the Procurement Committee

Maintain and safe custody of all records Accounts and cash

Timely submission of all returns , reports and utilization certificates

Timely and satisfactory Audit of GP accounts

GP; for Project reporting system to WMD.

8. Accounts Assistant

Designated expert at the GP level. Recruited by GP and trained by project

Maintain all accounts books related to the project

Make all vouchers & prepare cheques

Collect dues from beneficiaries & issue receipts

Ensure that records are maintained for all labour contributions from beneficiaries;

Prepare all financial documentation & reports as required b the project

GP; for Project reporting system to WMD.


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Chapter-1.5: PARTNER AGENCY SELECTION PROCEDURES

A. Need for the services of Partner Agencies The project will contract the services of partner institutions such as NGOs, research institutes, private sector development agencies, farmers‟ organisations, and technical agencies and also, where appropriate the services of the Federations for field implementation of the project activities. Each agency will be allocated a working area which may correspond to a district, or part of a district or a cluster of micro-watershed. However boundaries of these working areas may be adjusted to equalise workloads and allow for convenient coverage from the point of view of road access. The project objective envisages improvement of productive potential of natural resources and enhancement of rural incomes through socially inclusive and institutionally and environmentally sustainable approaches. Drawing from past experience, Field NGOs have played an important role in successful implementation of project. The need for FNGO arises from the lack of adequate staff required for community participatory approach. The FNGO would fill this gap by providing support of qualified professional staff to cover the social aspects of the project. The ability to mobilize local community, especially women folk, understanding the diverse issues related with communities and effecting their participation in a project are the strengths of FNGO. They have talent and skills for promoting social mobilization, awareness generation, group formation and so on. The objective of the proposed consultancy assignment is to facilitate, support and implement sub components 2 and 3) of the Project Component - Participatory Watershed Development under Integrated Livelihoods Support Project, (ILSP). The sub components are Food Security Enhancement Support and Livelihood Up-scaling Support. In case of participatory watershed development, the FNGO and other partner agencies would be required to give coverage from the Project Director Level to the village level. A team of social staff led by the convener of FNGO at the Project Director Level with the help of Coordinator at Division and Facilitator at Unit Level will mobilize the villagers. The FNGO will not work in isolation but it would be an integral part of the Multidisciplinary Team (MDT) both at the unit level (cluster of GPs/villages) as well as at the Divisional level. The MDT would comprise of FNGO and the Agri/ Horti/ Forestry, Livestock and Civil engineering experts from WMD. The entire team has to work in close cooperation with each other as a unit. The FNGO along with other members of the MDT will disseminate the key information regarding ILSP amongst the villagers, facilitate and encourage the participation of local communities in the planning process of Gram Panchayat Watershed Development Plan (GPWDP), assist Revenue Village Committee (RVC) in preparing proposals for GPWDP as well as in the identification of vulnerable groups and initiation of IGAs for them. Further they will also raise awareness of the need for soil conservation, water resource management, ESMF and other NRM interventions. They will organize vulnerable groups into VPGs and also assist in the formation of User‟s groups and also help build the capacities of these institutions in the project period. The social aspects of the project will be strengthened by way of recruiting FNGO's social staff to facilitate the villagers specially women and involve them fully with the project process. The Results to be achieved by the end of the consultancy period are:

a) New high value crop, horticulture and livestock technologies are adopted by Producer Groups (PGs).


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b) Appropriate practices for grading, storage & processing and market linkages have been adopted by farmers to increase the value realized of their produce to enhance their household income levels.

c) Value-chains in selected sub-sectors have been developed to sustainably increase incomes in project areas.

d) Linkage of livelihood collectives (LCs) to the market.

B. Selection Criteria of Partner Agencies

The agency should have domain knowledge of social mobilization, PRA tools, institutions building, micro-credit and micro-enterprises, participatory watershed development and approaches;

Should have at least 3 years of experience of hill area

Should have at least 5 years of experience in rural development, agriculture development,

watershed development, formation of grassroots institutions such as SHG, JLG, producers groups, livelihoods collectives, federations etc

Should have excellent communication-skill;

Should be familiar with the area, culture and languages

Should have competent core-staff for providing technical back-stopping;

Willing to commit qualified staff for full term and willing to work for the entire duration of the

project;

Should be familiar with ongoing programmes in the project area

Should not have been delisted by any of the government agencies

C. Selection Criteria of ULIPH Federations There are over 70 ULIPH Federations are in the project area. In accordance with the minutes of discussions of 16 May 2011, UGVS may engage the services of ULIPH Federations for social and community mobilisation. UGVS will carry out a capacity profile of these federations and assess their capability and competency in undertaking the tasks to be assigned to them. In this context, UGVS should (i) create a profile of all willing federations; (ii) send a short and brief draft TOT to all those ULIPH Federations and invite their responses; (iii) evaluate these responses received from those willing federation through a core committee; (iv) invite them to make a presentation of their proposals and the way they perceive with the proposed tasks; (v) short list qualified ULIPH federations; (vi) forward the short-listed ULIPH Federations to IFAD before assigning any work to these Federations. Following are the general criteria for selecting any of the ULIPH federations:

The agency should have domain knowledge of social mobilization, PRA tools, institutions building, micro-credit and micro-enterprises, etc

Should have at least 3 years of experience of working in hill area

Should have at least 5 years of experience in rural development, agriculture development,

formation of grassroots institutions such as SHG, JLG, producers groups, livelihoods collectives, etc

Should have good communication-skill;


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Should have competent core-staff for providing technical back-stopping;

Willing to commit qualified staff for full term and willing to work for the entire duration of the

project;

Should be familiar with ongoing programmes in the project area;

Should have transparent financial practices and should be able to commits project funds as designed;

Should not have been delisted by any of the government agencies

D. Selection Criteria of Divisional Support Agency (WMD) The objective of the proposed consultancy assignment is to facilitate, support and implement sub components 2 and 3) of the Project Component - Participatory Watershed Development under Integrated Livelihoods Support Project, (ILSP). The sub components are Food Security Enhancement Support and Livelihood Up-scaling Support. The Results to be achieved by the end of the consultancy period are:

e) New high value crop, horticulture and livestock technologies are adopted by Producer Groups (PGs).

f) Appropriate practices for grading, storage & processing and market linkages have been adopted by farmers to increase the value realized of their produce to enhance their household income levels.

g) Value-chains in selected sub-sectors have been developed to sustainably increase incomes in project areas.

h) Linkage of livelihood collectives (LCs) to the market.

E. Request for Proposal: sequences & steps Request for Proposal (RFP) is similar to bidding documents and include all information of the assignment, selection of consultants and contract conditions. Standard RFP of the World Bank can be used for ILSP also. CONTENTS OF RFP:

1) Letter of Invitation 2) Information to the bidder 3) Data Sheet 4) Terms of Reference 5) General Conditions of Contract 6) Sample Special Conditions of Contract 7) Standard Form for submitting Technical Proposal 8) Standard Form for submitting Financial Proposal

LETTER OF INVITATION SHOULD CONTAIN

Basic information regarding sources of financing for the assignment Basic information regarding the client and the assignment Short list of consultants: if 6 firms, use QCBS, QBS, Fixed Budget, Least cost and One Firm

ask for consultants qualification, single source Selection method Content Request for acknowledge and confirmation of participation


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INFORMATION TO BIDDERS should include all general information regarding

1) Eligibility of Consultants 2) Preparation of Proposal 3) Submission and receipt of proposals 4) Proposals evaluation 5) Negotiation

1. ELIGIBILITY: This should contain information regarding Consultant‟s familiarisation Client input Conflict of interest Corruption and fraudulent practices Commissions and gratuities Clarification and amendments

2. PREPARATION OF PROPOSALS:

Technical proposal Full Technical Proposal 100 pages max

Short technical proposal 50 pages max

1. Submission Form Yes Yes

2. Consultants Organisation Yes Not required

3. Comments on TOR Yes Not required

4. Description on approach, methodology and work plan Yes Yes

5. Team Composition and tasks assigned Yes Yes

6. CV of professional staff Yes Yes

7. Staffing schedule Yes Yes

8. Work schedule Yes Yes

Financial proposals should include the following:

Remuneration and reimbursable Separate estimates for taxes and duties Standard Forms Proposal validity No bid security

3. SUBMISSION, RECEIPT AND OPENING OF PROPOSAL Two envelopes, where needed Signature Original and copies Sealing of envelopes Submission: Place, Date and Time Deadline for Opening of Technical Proposals by the Committee Late Proposals rejected 4. EVALUATION OF PROPOSALS Technical committee set up Points and Score System as specified in Data Sheet No access to financial proposals Review of Evaluation by IFAD Rejection of non-responsive and non-acceptable proposals Notification to successful firms of opening of Financial Proposals Evaluation of Financial proposals Public opening: Name, technical scores, prices Responsiveness


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Score according to method specified in Data Sheet Combined Evaluation in accordance with selection method & as specified in Data Sheet 5. NEGOTIATION SEQUENCE Methodology and staffing Final TOR, without substantially changing original TOR Staffing schedule Client Inputs Consultants/ Firms output Activity Schedule Skills transfer (Final TOR and agreed methodology to be incorporated in “Description of Services” which becomes part of the contract If negotiation fails, second ranked proposal is invited for negotiation. As soon as negotiations successfully concluded, other firms must be informed about it. 6. EVALUATION CRITERIA Specific experience related to assignment 0 to 10 Work Plan and methodology 20 to 50 Qualification & competence of staff 30 to 60 Transfer of knowledge 0 to 10 Local participation 0 to 10 Minimum score: acceptable proposal 70 to 80 Total marks equivalent to 100 Please also refer to draft RFP under Chapter -3.2.


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Annex-1.5.1: General TOR for hiring Partner Agencies for UGVS 1. INTRODUCTION

Background: the Integrated Livelihood Support Project (ILSP) will follow on from the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society within the Rural Development Department, and Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC), a social venture capital company. ILSP will be implemented by these two agencies, along with the Watershed Management Directorate. Rationale: the justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provide incentives for people to invest their time and resources in agriculture. Despite the disadvantages that agriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures at higher altitudes, allowing production of out of season vegetables and temperate fruits. The horticultural sector is less developed than in the other hill states, so there is considerable potential for growth, as there is in other niche products such as spices, medicinal and aromatic plants, and nuts. Another area with growth potential is tourism. However more needs to be done to ensure that local people fully participate in, and benefit from, this sector. The population is well educated, but the level of youth unemployment is relatively high. Better vocational training could help such people find good quality employment in the growth sectors of the country. The overall objective (goal) of ILSP will be to reduce poverty in hill districts of Uttarakhand. This would be achieved via the more immediate development objective of “enable rural households to take up sustainable livelihood opportunities integrated with the wider economy”. The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the main means of support for most households. The second main thrust of the project is to generate cash incomes via the introduction and expansion of cash crops. These would be grown on a significant scale for markets outside of the state. ILSP will also support non-farm livelihoods, especially community involvement in rural tourism, and vocational training. Component 1: Food security and livelihood enhancement implemented by UGVS, will support crop and livestock production for food security, and develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) and higher level organisations (Livelihood Collectives - LC) formed by a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new income sources. ILSP will also improve access to markets through a value chain approach and the provision of physical infrastructure for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development and promotion, physical infrastructure for market access. These activities will cover 93,000 households in 17 blocks in five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement. Component 2: Participatory Watershed Development implemented by the Watershed Management Directorate (WMD), will use processes that have been established through a series of watershed development projects in the state, but with an increased focus on food security, livelihoods and market linkages. It will protect and improve the productive potential of the natural resources in selected watersheds along with increasing household income through inclusive and sustainable approaches. The component would cover a total of 41 micro-watershed (MWS) covering an area of about 64,744 ha in six clusters in six districts, with a population of about 39,000 households. It will complement the ongoing watershed development programme funded by the World Bank and GoI, and takes into account availability of required WMD institutional capacity in the selected project districts.


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Component 3: Livelihood financing implemented by UPASAC. Despite making significant strides in financial viability, banks have not been able to provide significant numbers of poor households with basic financial services. The activities under this component include:

f) Banking support – capacity building, expansion of branches of SKGFS, g) Risk management – piloting and scaling up of insurance services, h) Financial inclusion initiatives – training to LC to be bank agents, product literacy training, i) Provision of development finance via UPASAC including loan and quasi equity funding j) Establishment cost support to UPASAC.

Component 4: Project coordination and monitoring: Each executing agency, UGVS, WMD and UPASAC, will have their own project management units headed by a Project Director or Chief Executive. To provide overall coordination, the state nodal agency, RDD, will set up a Central Project Coordination Unit (CPCU) within the RDD, headed by a part time Chief Project Director (CPD). The CPCU will have two Units: (i) Finance Unit; and (ii) Planning and M&E Unit. The Finance Unit will be located within RDD whereas the M&E Unit will be housed within UGVS. Coordination: The Rural Development Department (RDD) will be the nodal agency at the state level. A Central Project Coordination Unit (CPCU) within the RDD. A state level Project Steering Committee (PSC) would be chaired by the Forest and Rural Development Commissioner (FRDC). The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD.

Convergence: the National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will be responsible for forming and supporting SHGs. ILSP will provide complementary support for livelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will be expected to receive support from other government programmes and from formal financial institutions. ILSP will also implement livelihood enhancement activities in blocks selected for watershed development by the Integrated Watershed Management Programme (IWMP), a centrally sponsored scheme. 2. OBJECTIVES OF PARTNER NGO SERVICES For component 1 of the project, UGVS will contract partner NGOs for field implementation of this component and also the services of ULIPH Federations in few cases. Each Partner Agency will be allocated a working area which may correspond to a district or part of a district. However boundaries of these working areas (termed „divisions‟) may be adjusted to equalise workloads and allow for convenient coverage from the point of view of road access. Component 1 of the project is planned to cover 64,175 households in 17 blocks in five districts. Of these, over 26,000 (28%) are in five blocks in Almora district, so it could be worth splitting this district into two divisions. On average each PNGO will organise 1,020 primary groups (816 Producer Groups and 204 Vulnerable Producer Groups), with a total of 15,300 members, at least 50% of who would be women. These groups will then be federated into a total of 17 Livelihood Collectives to support up-scaling, common services, combined enterprises and market access. 3. TASKS TO BE CARRIED OUT BY PARTNER NGOS Partner NGOs will be contracted to carry out the following tasks:

PG/VPG formation and strengthening:

Carry out awareness raising campaigns to explain project modalities and livelihood options to

project communities as emerged from livelihood study conducted by the project.

Identify poor (BPL) households with focus on SC, ST, OBC and disadvantaged households for inclusion under the project. Compare the poverty estimates with government poverty ranking and report anomalies, if any to the DMU.

Organise formation of Producer Groups (PGs) and Vulnerable Producer Groups (VPGs) for

specific livelihoods as emerged from the livelihood study. Aggregate the PG/VPG as

Livelihood Collectives (LCs)


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Ensure participation of women and disadvantaged households in PGs, VPGs and Livelihood

Collectives (LCs) as per project norm. At least 60% of the PGs will be women only groups

Assist PG/VPG in drawing up of Food Security Investment Plans (FSIP) and other related

plans for submission for project funding. FSIP should be based on situational analysis and

proposed livelihood activities to be undertaken by PGs/VPGs.

Assist PGs and VPGs in implementation of FSIP including procurement of inputs,

fund/accounts management and technical advice from line departments/technical agencies

and bankers/financial institutions for financial linkages.

Provide PG/VPGs with technical advice and extension services for agriculture, horticulture and livestock, and link them to government line agencies and other sources of technical information and support.

Provide training to members of PGs/VPGs according to a training plan agreed with project and provide feedback on the outcomes of this training.

Assist PG/VPGs in getting access to natural resources, including agreements with Van Panchayats for land to grow fodder crops.

LC formation and strengthening:

Organise formation of LCs into self reliant cooperatives/producer companies etc as per

requirement of identified enterprises.

Assist LCs in drawing up of Agribusiness Upscaling Plans (AUP) and submission for project funding

Assist LCs in implementation of AUP including procurement, technical advice, and marketing, maintenance of accounts, business planning and institutional management. Promote enterprise and entrepreneurship

Act as resources persons to assist LCs and their members to make applications to other agencies and to banks for grants and loans.

Provide training to members of LCs according to a training plan agreed with UGVS project management, and provide feedback on the outcomes of this training.

Provide groups with technical advice and extension services for agriculture, horticulture and

livestock, and link them to government line agencies and other sources of technical

information and support.

Support infrastructure development with LC

Assist LCs in drawing up proposals for irrigation, soil and water conservation, and other infrastructure.

Monitor implementation of this infrastructure development, and assist LCs in establishing systems of user charges and plans for operation and maintenance.

Pro-poor market development:

Use the findings of the livelihood survey conducted by project to focus on the viable economic

opportunities for enterprise development among project communities.


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Facilitate initiatives to improve market access for project groups, including support for market

studies and value chain development, and development of infrastructure for market access.

More specifically, it would involve following tasks:

i. Undertake value chain analysis of products/commodities identified during the detail

livelihood survey to identify gaps for marketing intervention which would result in

higher incomes and livelihood opportunities for the project community.

ii. Study successful marketing initiatives such as collective marketing of agriculture

produce in the previous project and prepare strategies for their replication.

iii. Develop marketing infrastructure such as collection centres, pathways, river crossing

trolleys, sub mandies facilitation, store house, and value addition facilities such as

drying platform, technologies and processing units.

iv. Register LCs as Commission agent if required to facilitate better marketing of hill

products.

v. Facilitate linkages with markets within and outside the markets to reduce number of

intermediaries.

vi. Develop market information sharing system among LCs and its members.

vii. Identify market players such SMEs, corporate, traders, processors to develop forward

market linkages for project communities.

viii. Develop backward linkages with BDS providers for capacity building, appropriate

technologies, finance, input sourcing etc. for productivity enhancement and improving

efficiency.

Act as a link for financial services between UPASAC and its implementing partners and

project groups to assist in identification of needs for financial services, and in communicating

the availability of these services to project groups and group members.

Support innovation linkages and vocational training:

Facilitate coordination and linkages between project groups and project research partners – such as VPKAS, GBPUAT and HARC.

Facilitate in identification of youth of the project area for enrolling them under Vocational training programs of the project.

Monitoring

Monitor performance of PG, VPG and LCs including carrying our regular participatory M&E at either the household or group level following project guidelines for such monitoring. In conjunction with UGVS implement a grading system for the institutional health of the PG/VPG/LC.

Assist the project M&E unit in carrying out sample surveys by providing lists of households and data on poverty and assisting in locating the household in the village.

Monitor implementation and outcomes of activities carried by the PG/VPG/LC through the

process of participatory monitoring & report to the DMU.


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Agree annual work programme with UGVS Project Director, and provide monthly, half yearly and annual reports as per project requirements.

Project Management

Facilitate compliance with project guidelines, including financial management, human resources and reporting.

Participate in implementation of a project communications strategy, including notice boards, posters, leaflets, press briefings, and displays at local fairs and other events.

Attend project management and coordination meetings as required by UGVS project management.

Comply with the provisions made by government under the Right to Information for activities

implemented under ILSP.

Build sustainability of project groups and enterprises taken up by them, and implement an

agreed project exit strategy.

4. KEY PERSONNEL OF TECHNICAL AGENCY To implement this programme of work, NGOs may need to recruit and train staff, provide transport and equipment, and establish field offices. Project budgets may include funding for an average of the following PNGO staff for each division:

Post

Number of posts

Period of employment during project period

Major tasks

PNGO Coordinator 1 6 years Project management

Agribusiness officer 1 6 years Business support

Horticulture officer 1 6 years Technical support

Livestock extension officer 1 6 years Technical support

Junior engineers 2 5.5 years Technical support

Livelihood facilitators 51 3 years Organise and support PG

Livelihood coordinators 17 4 years Management support to LC

Accountants 17 4 years Accounting support for LC

NGO payment will include a charge for overhead costs, and the NGO should nominate a senior member of its staff to take overall responsibility for the project on a part-time basis. 5. REPORTING PNGOs will provide monthly, quarterly and half-yearly reports on project progress and results as per the standard formats developed by the project. These will include physical and financial progress, reporting on outcomes (such as the results of PME) and a section on achievements and issues. The PNGO will also submit regular (monthly or quarterly) financial statements with supporting documents. 6. REVIEW OF PERFORMANCE

PNGO and the project staff has to work in close cooperation with each other. The work carried out by the NGO in the field shall be monitored by the respective Divisional Managers of UGVS.


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A committee appointed by UGVS shall review NGO performance half yearly and annually. This review committee may be as below or as proposed by the PMC.:

Project Coordinator - Chair Person

Project Director (UGVS) - Member

Planning and M&E Manager (CPCU) - Member

Programme Manager (Institutions) - Member

Divisional Manager (UGVS) - Member

Finance Manager (UGVS) - Member 7. PERIOD OF THE ASSIGNMENT Period of the assignment would be for five years. Annual extension will be on the basis of the satisfactory performance to be recommended by the Review Committee. 8. TERMS OF PAYMENT The UGVS PMU will pay the PNGO according to an agreed annual budget and work plan. An advance equivalent to 3 months of approved estimates of a programme year will be paid to the PNGO. Additional conditions will be as per the RFP.

9. ACCOUNTING AND AUDITING The PNGO will open a separate bank account for receipt and expenditure of funds for the contract. The agency will also maintain separately records, accounting and auditing of the funds allocated for the assignment and will submit the copy of the expense statement on a half yearly or quarterly basis. The PNGO will cooperate and facilitate IPSP internal and external audits 10. ARBITRATION In the event of any dispute between the contracted agency and the district level functionaries of WMD, the Govt. of Uttarakhand will be the arbitrator. 11. GENERAL The PNGO would be given access to all documents, correspondence, and any other information relating to the Project and deemed necessary by the PNGO. The PNGO would be provided copies of the Project Implementation Plan; Project Design Document (PDD) of the IFAD; and agreements with the IFAD, guidelines, policies and procedures issued by Project management and implementing agencies and relevant IFAD policies and guidelines (such as IFAD guidelines on social mobilization, targeting, environment and other such guidelines or policy documents).


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Annex-1.5.2: TOR for FNGO for WMD

I. INTRODUCTION

Background: the Integrated Livelihood Support Project (ILSP) will follow on from the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society within the Rural Development Department, and Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC), a social venture capital company. ILSP will be implemented by these two agencies, along with the Watershed Management Directorate. Rationale: the justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provide incentives for people to invest their time and resources in agriculture. Despite the disadvantages that agriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures at higher altitudes, allowing production of out of season vegetables and temperate fruits. The horticultural sector is less developed than in the other hill states, so there is considerable potential for growth, as there is in other niche products such as spices, medicinal and aromatic plants, and nuts. Another area with growth potential is tourism. However more needs to be done to ensure that local people fully participate in, and benefit from, this sector. The population is well educated, but the level of youth unemployment is relatively high. Better vocational training could help such people find good quality employment in the growth sectors of the country. The overall objective (goal) of ILSP will be to reduce poverty in hill districts of Uttarakhand. This would be achieved via the more immediate development objective of “enable rural households to take up sustainable livelihood opportunities integrated with the wider economy”. The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the main means of support for most households. The second main thrust of the project is to generate cash incomes via the introduction and expansion of cash crops. These would be grown on a significant scale for markets outside of the state. ILSP will also support non-farm livelihoods, especially community involvement in rural tourism, and vocational training. Component 1: Food security and livelihood enhancement implemented by UGVS, will support crop and livestock production for food security, and develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) and higher level organisations (Livelihood Collectives - LC) formed by a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new income sources. ILSP will also improve access to markets through a value chain approach and the provision of physical infrastructure for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development and promotion, physical infrastructure for market access. These activities will cover 93,000 households in 17 blocks in five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement. Component 2: Participatory Watershed Development implemented by the Watershed Management Directorate (WMD), will use processes that have been established through a series of watershed development projects in the state, but with an increased focus on food security, livelihoods and market linkages. It will protect and improve the productive potential of the natural resources in selected watersheds along with increasing household income through inclusive and sustainable approaches. The component would cover a total of 41 micro-watershed (MWS) covering an area of about 64,744 ha in six clusters in six districts, with a population of about 39,000 households. It will complement the ongoing watershed development programme funded by the World Bank and GoI, and takes into account availability of required WMD institutional capacity in the selected project districts.


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Banking support – capacity building, expansion of branches of SKGFS,

Risk management – piloting and scaling up of insurance services,

Financial inclusion initiatives – training to LC to be bank agents, product literacy training,

Provision of development finance via UPASAC including loan and quasi equity funding

Establishment cost support to UPASAC. Component 4: Project coordination and monitoring: Each executing agency, UGVS, WMD and UPASAC, will have their own project management units headed by a Project Director or Chief Executive. To provide overall coordination, the state nodal agency, RDD, will set up a Central Project Coordination Unit (CPCU) within the RDD, headed by a part time Chief Project Director (CPD). The CPCU will have two Units: (i) Finance Unit; and (ii) Planning and M&E Unit. The Finance Unit will be located within RDD whereas the M&E Unit will be housed within UGVS. Coordination: The Rural Development Department (RDD) will be the nodal agency at the state level. A Central Project Coordination Unit (CPCU) within the RDD. A state level Project Steering Committee (PSC) would be chaired by the Forest and Rural Development Commissioner (FRDC). The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD.

Convergence: the National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will be responsible for forming and supporting SHGs. ILSP will provide complementary support for livelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will be expected to receive support from other government programmes and from formal financial institutions. ILSP will also implement livelihood enhancement activities in blocks selected for watershed development by the Integrated Watershed Management Programme (IWMP), a centrally sponsored scheme. II. ROLE AND QUALIFICATIONS OF FNGO Project period: the project duration is 7 years and the project cycle in each GP will be of 5 years in following three phases.

The preparatory phase: - First year

The Implementation Phase: - Three years.

The Withdrawal Phase: - Fifth year

The Project is likely to commence from 1st April, 2012. Project Cost: The proposed IFAD funding for this component is about US$ 54 million. Need for FNGO The project objective envisages improvement of productive potential of natural resources and enhancement of rural incomes through socially inclusive and institutionally and environmentally sustainable approaches. Drawing from past experience in watershed projects, Field NGOs have played an important role in successful implementation of project. The need for FNGO arises from the lack of adequate staff required for community participatory approach. The FNGO would fill this gap by providing support of qualified professional staff to cover the social aspects of the project. The ability to mobilize local community, especially women folk, understanding the diverse issues related with communities and effecting their participation in a project are the strengths of FNGO. They have talent and skills for promoting social mobilization, awareness generation, group formation and so on. Services of Uttarakhand based NGOs are required for the project areas of Kumaon and Garhwal region. FNGO would be required to give coverage from the Project Director Level to the village level. A team of social staff led by the convener of FNGO at the Project Director Level with the help of


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Coordinator at Division and Facilitator at Unit Level will mobilize the villagers. The FNGO will not work in isolation but it would be an integral part of the Multidisciplinary Team (MDT) both at the unit level (cluster of GPs/villages) as well as at the Divisional level. The MDT would comprise of FNGO and the Agri/ Horti/ Forestry, Livestock and Civil engineering experts from WMD. The entire team has to work in close cooperation with each other as a unit. The MDT (FNGO & WMD technical staff) will be collectively responsible for a cluster of GPs /villages in every respect. The MDT will be directly responsible for overall results and report to the WMD DPDs. The FNGO along with other members of the MDT will disseminate the key information regarding ILSP amongst the villagers, facilitate and encourage the participation of local communities in the planning process of Gram Panchayat Watershed Development Plan (GPWDP), assist Revenue Village Committee (RVC) in preparing proposals for GPWDP as well as in the identification of vulnerable groups and initiation of IGAs for them. Further they will also raise awareness of the need for soil conservation, water resource management, ESMF and other NRM interventions. They will organize vulnerable groups into SHGs and also assist in the formation of User‟s groups and also help build the capacities of these institutions in the project period. The social aspects of the project will be strengthened by way of recruiting FNGO's social staff to facilitate the villagers specially women and involve them fully with the project process.

Expertise and experience of the FNGO: The FNGO should have the expertise in the following spheres:

Integrated Watershed Development

PRA tools, awareness building and community mobilization

Local institution building

Capacity building of local institution

Communication skills

Gender Issues

Sustainability of Institutions

Micro Credit, Micro Enterprises development

Networking and Market Linkages

Process documentation and report writing The FNGO should have the following experience: Minimum 3 years work experience in hilly areas and minimum 5 years experience in execution of participatory Watershed Management Project / Rural Development/ Externally Aided Multi Disciplinary Projects. Statement of objectives and deliverables Objectives: The overall objective of this assignment is to hire the services of FNGO on fixed budget consultancy for fulfilling the following objectives:

To Provide Social Intermediation Services

As part of MDT, the FNGO would give inputs in the planning process viz. Preparation of RVC proposals, IGA sub-plan, GPWDP

Capacity building and networking of local institutions as well as developing an institutional mechanism to ensure sustainability of institutions formed.

Process Documentation and Reports Generation

III. SCOPE OF SERVICES

1. Social Intermediation Services 1. Help in social mobilization, rapport building, awareness generations, collection of base line

data and gender analysis. 2. Identification of Vulnerable groups in the villages. Facilitate the organization of vulnerable

groups in to VPG. Plan in such a way so that maximum coverage is given to the vulnerable groups and the poorest of the poor.

3. Ensure participation of women in programmes and management of project activities. 4. Facilitate the local level institutions in developing and adoption of byelaws, initiating

programmes and interventions


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5. Facilitate the VPGs in developing and adoption of byelaws, initiating livelihood programmes. 6. Provide necessary inputs in design and estimates required for developing the watershed plan

and other components of GPWDP 7. Awareness generation regarding ESMF and Facilitate the communities in the integration of

ESMF in all project interventions. 8. Help in mobilizing vulnerable groups to take up entrepreneurship activities viz. IGA activities

for alternative livelihood opportunities 9. Prepare and implement a capacity building action plan to enable the PGs, UGs and other

CBOs to function effectively. 10. Ensure regular monitoring of the activities of VPGs, PGs, UGs, LCs etc formed under the

project. 11. The FNGO will take up for discussions with the community and local institutions, formed in the

project villages, important social and environmental issues relevant in the area e.g. sustainability of NRM, soil and water conservation, stall feeding of animals, health, education, harmful effects of pesticides, alcoholism, sanitation, IGAs, equity, social cohesion, gender issues, social auditing, social fencing, forest fires etc.

12. To supervise record keeping, book-keeping, management of group fund, collection of contributions, compliance to the byelaws and GPWDP

13. The FNGO will play an important role in the conduction of participatory M&E (PME). As part of PME the FNGO will be responsible for following deliverables

Development of Hand Book and action plan on the PME process which will include details on stakeholders, indicators, methods, tools and training plan.

An annual report summarizing the findings from PME, subsequent decisions and actions taken and general lessons learned. The report should also track the progress with respect to achievement of indicators over the given years.

14. Ensure conduction of periodic self assessment by local institutions 15. Assessment of the WWC and GPs functioning as regards transparency viz. in work, fund

allocation, selection of beneficiaries 16. Assist in organizing field visits, field tours, on the job training for village level functionary e.g.

accounts and exposure as and when required. Ensure sharing of training/ learning/ exposure visit out comes with the community.

17. Facilitate CBOs in developing byelaws, guidelines and ensure that the VPGs, PGs, UGs and other CBOs maintain the prescribed books which are accurate and updated.

2. Consolidation and sustainability

1. The FNGO will assist in the consolidation of the village level VPGs, PGs, UGs and other CBOs into cluster federations (LCs) within their program areas.

2. Explore and implement (where feasible) VPGs and PGs to cover the uncovered groups. 3. Develop and implement mechanisms to strengthen the local institutions formed under the

project. This will include the following: o Facilitate the Preparation/strengthening of by-laws by CBOs detailing aspects related to

membership, power and functions o Assist the VPGs and PGs in conducting self-assessment and drawing- up of forward

action plans. o Assist in establishing linkages with external agencies departments and private sector

entities. o Ensure linkages to enable input supplies and output marketing for IGA products.

3. Inputs as resource persons

As part of MDT, the FNGO will assist the community/GP in conducting PRA, survey and collection of baseline information.

The FNGO as part of MDT will act as resource persons and assist in the preparation of RVC proposals, IGA proposals, GPWDP planning process and integration of ESMF into project interventions, Farming system improvements and Transhumant population

Act as resource persons in their respective area of specialization.

4. Reporting and outputs

Carry out comprehensive process documentation of the social mobilization process in the project area.


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The FNGO will have to generate specified reports and follow the reporting mechanism as laid down by WMD.

The scope of services could be modified based on mutual agreement between the client and the FNGO with a view to better achieve the overall objectives. Keeping in view the overall objective and scope of works, the FNGO would outline the specific steps which would be carried out and their approach, in their Inception Report- to be provided within 30 days after commencement of their assignment. Information to be included in reports to be submitted by the FNGO: The FNGO would have to submit the following information in reports regarding the various activities to be carried out during the contract period.

1. As part of MDT, base line information of each village reviewed and shared with unit level/DPD/PD/ CPD

2. Various vulnerable groups identified and promoted as VPGs (numbers) 3. RVC proposals, IGA sub plans GPWDP, action plans prepared. (Numbers, quality, endorsed

by the SHGs) 4. In consultation with MDT capacity building action plan for VPGs, PGs / villagers/ groups,

implemented (numbers, days) 5. Entrepreneurial activities undertaken for vulnerable groups etc. (numbers, activities) 6. Success stories, case studies. 7. Social and environmental issues taken up with groups/federations/ RVC (numbers, activities) 8. Feedback of monitoring and evaluation of the activities at the field developed and reported. 9. Backward and forward linkages facilitated (numbers, institutions)

10. Report of the Grading/SWOT analysis of PGs/ LCs and the forward action plans for further strengthening thereof.

11. Number of federation formed through the project in the project area and their sustenance. 12. Capacity building activities for VPGs, PGs and LCs including all backward and forward

linkages – number of groups linked with the Banks and other financial institutions. 13. Generate specific policy level issues related to CBNRM in general and program design and

operations in particular. 14. An annual report summarizing the findings from PME, subsequent decisions and actions

taken and general lessons learned. The report should also track the progress with respect to achievement of indicators over the given years.

5. Reporting requirements

The FNGO shall submit to the WMD report and documents as specified below in the form, numbers and within the periods set forth. The reports have to be submitted in Hard and Soft copy (numbers to be specified) 1. Monthly Progress Reports: Following reports will be submitted to concerning DPDs by the second day of the following month and after the approval of DPD a copy has to be forwarded to the WMD by the seventh day of the following month as per prescribed format

1- Monthly Progress Report (MPR) of PGs, VPGs, UGs, LCs and other CBOs. 2- Report regarding contribution (Anshdan) and beneficiary's cost sharing in project activities. 3- MPR of training conducted at Unit & division level with the feed back of participants.

2. Consolidated reports enumerating the qualitative review of the project: Following consolidated report will be generated by the FNGO as and when required within a given time period. Consolidated report of the activities undertaken as per part-1 of scope of services of FNGO in the TOR including:

1. Quarterly assessment of VPGs, PGs, UGs, LCs etc with their follow up action plan (Six monthly)

2. Impact of training/ adoptions of practices (Six monthly) 3. EDP follow up reports with regards to adoption of IGA and socio-economic enhancement of

the weaker section of the society.( Annual) 4. Case studies of project villages as regards to various intervention of project especially the

capacity building and participatory (Six monthly) 5. Documentation of the process adopted for social mobilization and to increase women‟s and

vulnerable group participation in project activities. (Six monthly)


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6. Consolidated reports enumerating the qualitative review of the project. Such other reports, as may be required from time to time will also be generated by the FNGO with in a stipulated time. 3. Annual Reports: Annual and consolidated report on the contribution of the organization in implementation of ILSP and issues related to the project annual assessment by first week of April. The annual report should also summarize the findings from PME, subsequent decisions and actions taken and general lessons learned. The report should also track the progress with respect to achievement of indicators over the given years. The FNGO will be responsible for the timely submission of all the reports. 6. Key personnel

Deployment of Personnel should be at the following levels: 1. A Facilitator at Unit level (at cluster of approximately 15 GPs each) for all the project

units 2. A Coordinator at Division level for each division 3. A Convener at Project Director level

All the field level staff working as Coordinator at division level and as Facilitators should be female staff. The Convener at PD level should preferably be a female staff.

WMD technical staff and the FNGO personnel will constitute the MDT

and are expected to work in close coordination as a unit.

The proposed key personnel should have the minimum experience prescribed in the qualifications for key personnel.

IV. JOB DESCRIPTIONS OF KEY PERSONNEL

1. Convener at Project Director Level There shall be one convener with the overall coordinating responsibility for the FNGO personnel in all the project divisions within the jurisdiction of a project director. The convener at Project Director Level would be required to deliver the following services. He /She should preferably be the chief functionary of the FNGO who would liaison with the Project Director for the smooth functioning of the project.

Consolidation of information Generated at the division levels.

Monitoring, Supervision and Guidance to coordinator at division level and facilitator at unit level through regular field visit and through monthly meetings.

Assist division level coordinator/ Facilitators in planning, implementation, capacity building of community/ village motivators

Consolidation of community groups at regional level viz. organization of PGs into LCs

Linking of PGs/VPGs to lending institutions to access credit for different IGAs

Develop and implement a mechanism to ensure regular monitoring of the activities outputs and outcomes

Information dissemination to the lower levels as regards new project development/ change of policy/ compliance to specific orders.

Environmental and Social Compliance in project interventions

Organize follow up programmes and activities in discussion with Project Director and Dy. Project Directors.

Undertake field visit in the project area and plan activities for social mobilization and capacity building with divisional level coordinator

Prepare community mobilization action plan with the assistance of project staff and concerning divisional coordinator.


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The FNGO personnel at PD level would have to work in close cooperation with the WMD Project Director.

Qualifications: the preferable qualification of the Coordinator at Project Director Level will be: PG in Social Science/ MSW/ Arts/ Economics/ PG Diploma in Rural Development / Bio- Science/ Agriculture; Minimum five years work experience in rural development particularly in integrated watershed development project; Experience should be in rural development/ social mobilization/micro credit and micro enterprises development/ watershed approach. Good documentation and report writing skills, communication skills. Should be a computer literate. 2. Coordinator at Division Level There shall be one coordinator with the overall coordinating responsibility for the FNGO in each Project Division. The Coordinator at division level would be required to deliver the following services.

Consolidation of information generated at the village level in the Division. Document and submit monthly report. Help in updating of training reports and inventorying of training and extension material

Assist in organizing training, review workshops, field visits and exposure/ study/field tours as and when required at sub-watershed level & micro-watershed level with the assistance of facilitator and MDT members and documentation of events / preparation of reports.

Facilitate planning process at field level and assist in organizing PRA exercise. Assist MDT in developing IGA sub plan for vulnerable groups.

Assist in Participatory Monitoring and Evaluation.

Participate in awareness building programme at GP level and village level. Prepare follow-up action plan as regards Divisional Community Mobilization Action Plan.

Assist Facilitators in planning, implementation and capacity building of community/ local institutions/ village motivators through village level training and review workshop. Participate in the sharing of training experience and insights.

To visit the project villages at least 15 days in a month to ascertain performance of grass root level workers viz. Facilitators and Motivators. Provide the facilitators and village motivators necessary help and guidance in carrying out their task efficiently.

Consolidation of community groups at division level viz. organizing PGs into LCs/ clusters.

Document the effect of project interventions in their area and to suggest any improvement in the activity/programmes being conducted.

To ascertain the field training need of the community through the Facilitators and Motivators and convey the above to the DPDs.

To attend the meetings of RVC, WWC, UGs, VPGs and PGs and help their office bearers in proper upkeep of records.

Link PGs for credit mobilization

Information dissemination to the lower levels as regards new development

Environmental and Social Compliance in project interventions

Conduct village level trainings and workshops for the dissemination of ESMF.

Qualification:

PG in Social Science/ MSW/Arts /Economics/Agriculture/ Bio-Science/ PG Diploma in Rural Development.

Minimum three years working experience in rural areas particularly in watershed concept.

Knowledge and Experience should be in Rural Development/ Social Mobilization/Micro Credit Linkages, IGA activities/ micro enterprises development.

Good Documentation and Report Writing Skills, communication skills.

Computer literate.

3. Facilitators at Unit Level A Facilitator would be placed at cluster of 15-20 villages (Unit). The facilitator would report to the coordinator at the DPD level. The facilitators would be integral part of the MDT. Therefore they would


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be required to work in close cooperation with the MDT members and the respective unit level project staff. They would be required to perform the following tasks:

Facilitators would play an important role in the selection of village motivator by the Gram Panchayat by ensuring that the GP follows the guidelines as laid down for the selection of village motivator. After the selection of village motivators, the facilitators would provide proper and effective guidance and has to work in close cooperation with the motivators.

Promote and encourage community for effective participation in project activities. Ensure the maximum participation of women in the meetings/activities of RVC/ PGs/ VPGs /UGs. The facilitator along with the motivator will apprise the rural women about government sponsored education, health and family welfare programmes. They will have to participate in awareness building programme at GP level and village level. Mobilize community and disseminate information regulating participatory approach, objectives, implementation mechanism and ESMF

To remain well versed with the works being carried out under the project.

Introduce the concept of groups‟ activity, mobilize the vulnerable section of the society to form SHGs, assist them in saving and credit related activities and developing/ adoption of bye laws. The facilitator along with the village motivator will participate in the meetings of PGs, VPGs/ UGs, verify the amount deposited in their account and revolving fund. Facilitate in obtaining regular contribution to the above accounts. Mobilize the VPG for income generating activities and assist in developing IGA sub plan for vulnerable groups.

Collect base line data in all concerning village and assist in PRA including gender analysis with the active participation of GP, RVC and other community member for the preparation of GPWDP.

Help, instruct and guide the RVC, SHGs. UGs and other CBOs in keeping their book and record up to date.

To participate, evaluate and obtain feed back of the training programme and IGAs organized for the vulnerable groups.

To keep updated information regarding meetings of GPs, RVC, VPGs, PGs, UGs, and devise ways and means for their regularity.

To assess the impact of project activities in their concerning village and keep updated records of the result due to project interventions. Facilitator has to compile the report at unit level. In case of any doubts has to clarify and verify it at village level with the help of village In charge.

To make aware the community especially vulnerable groups as regards government/ NGOs sponsored Welfare and Development programme. Encourage village motivators for a establishing linkages of rural women with such activity/ programme

Follow-up on village plans and identify methods to strengthen communities capability for sustainable resource management.

Conduct SWOT/ Grading, Assessment of PGs and LCs

Qualification: Graduate Social Science/ Arts/ Economics/ Science/ Agriculture/ Bio- Science/ Diploma in

Rural Development Minimum Three years of working experience in community mobilization in rural areas,

linkage with Banks etc. In case of experience of more than five years in participatory watershed projects,

academic qualification may be relaxed. Good communication skills, skill in participatory methodology Good Documentation and Report Writing Skills

4. Field visits and capacity building of FNGO personnel

The FNGO personnel would have to undertake prescribed field visits in the following manner: o At Village level minimum 20 days field work per month and as per necessity o Divisional level minimum 15 days field work per month and as per necessity o PD Level minimum 15 days field work per month and as per necessity


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Monthly assessment of the performance of the FNGO personnel would have to done by the FNGO.

It is expected that the capacity building/ improvement/ skill up gradation of NGO personnel would be under taken by the FNGO from time to time. The FNGO would be required to submit a capacity building strategy, along with its resource persons for its personnel for the period of assignment.

The services of the field level FNGO personnel should be supported by inputs from appropriate senior level staff of the FNGO (Head/Director/Consultant) as and when considered necessary.

Head of the FNGO should take up periodic field visit (minimum 10 days in a month covering all project division) for supervision, monitoring, and performance evaluation of the FNGO personnel.

V. REVIEW OF PERFORMANCE AND TERMS OF CONTRACT 1. Review of performance

FNGO and the project staff has to work in close cooperation with each other. The work carried out by the NGO in the field shall be monitored by the respective DPDs / PD.

A committee appointed by WMD shall review NGO performance half yearly and annually. The committee for one project region viz. Garhwal/Kumaon would comprise of all the DPDs, concerning PD, and DPD (Trg.) and Senior Social Coordinator at the WMD level and FNGO representative. At CPD level the review committee will be as given below:-

Chief Project Director - Chair Person

Additional Director - Member

Additional Director (M&E) - Member

Project Director (Garhwal and Kumaon) - Member

DPD ( Planning/M&E) - Member

DPD ( ESA & Training) - Member

Finance Officer - Member 2. Period of the assignment Period of the assignment would be for five years. Annual extension will be on the basis of the satisfactory performance to be recommended by the Review Committee. 3. Terms of payment The terms of payment as finalized during negotiations by both parties will be applicable.

4. Accounting and auditing The agency will open a separate bank account for receipt and expenditure of funds for the contract. The agency will also maintain separately records, accounting and auditing of the funds allocated for the assignment and will submit the copy of the expense statement on a half yearly basis and audit report on an annual basis.

5. Arbitration In the event of any dispute between the contracted agency and the district level functionaries of WMD, the Govt. of Uttarakhand will be the arbitrator.


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6. General The FNGO would be given access to all documents, correspondence, and any other information relating to the Project and deemed necessary by the FNGO. The FNGO would be provided copies of the Project Implementation Plan; Project Design Document (PDD) of the IFAD; and agreements with the IFAD, guidelines, policies and procedures issued by Project management and implementing agencies and relevant IFAD policies and guidelines (such as IFAD guidelines on Social mobilization, Vulnerable Group Fund, IGA strategy and ESMF and other such guidelines or policy documents).


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Annex-1.5.3: Divisional Support Agency for WMD: Terms of Reference

I. INTRODUCTION

1. Background: the Integrated Livelihood Support Project (ILSP) will follow on from the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society within the Rural Development Department, and Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC), a social venture capital company. ILSP will be implemented by these two agencies, along with the Watershed Management Directorate. 2. Rationale: the justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provide incentives for people to invest their time and resources in agriculture. Despite the disadvantages that agriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures at higher altitudes, allowing production of out of season vegetables and temperate fruits. The horticultural sector is less developed than in the other hill states, so there is considerable potential for growth, as there is in other niche products such as spices, medicinal and aromatic plants, and nuts. 3. Another area with growth potential is tourism. However more needs to be done to ensure that local people fully participate in, and benefit from, this sector. The population is well educated, but the level of youth unemployment is relatively high. Better vocational training could help such people find good quality employment in the growth sectors of the country. 4. The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand. This would be achieved via the more immediate development objective of “enable rural households to take up sustainable livelihood opportunities integrated with the wider economy”. 5. The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the main means of support for most households. The second main thrust of the project is to generate cash incomes via the introduction and expansion of cash crops. These would be grown on a significant scale for markets outside of the state. ILSP will also support non-farm livelihoods, especially community involvement in rural tourism, and vocational training. 6. Component 1: Food security and livelihood enhancement implemented by UGVS, will support crop and livestock production for food security, and develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) and higher level organisations (Livelihood Collectives - LC) formed by a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new income sources. ILSP will also improve access to markets through a value chain approach and the provision of physical infrastructure for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development and promotion, physical infrastructure for market access. These activities will cover 93,000 households in 17 blocks in five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement. 7. Component 2: Participatory Watershed Development implemented by the Watershed Management Directorate (WMD), will use processes that have been established through a series of watershed development projects in the state, but with an increased focus on food security, livelihoods and market linkages. It will protect and improve the productive potential of the natural resources in selected watersheds along with increasing household income through inclusive and sustainable approaches. The component would cover a total of 41 micro-watershed (MWS) covering an area of about 64,744 ha in six clusters in six districts, with a population of about 39,000 households. It will complement the ongoing watershed development programme funded by the World Bank and GoI, and takes into account availability of required WMD institutional capacity in the selected project districts.


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8. Component 3: Livelihood financing implemented by UPASAC. Despite making significant strides in financial viability, banks have not been able to provide significant numbers of poor households with basic financial services. The activities under this component include:





Establishment cost support to UPASAC. 9. Component 4: Project coordination and monitoring: Each executing agency, UGVS, WMD and UPASAC, will have their own project management units headed by a Project Director or Chief Executive. To provide overall coordination, the state nodal agency, RDD, will set up a Central Project Coordination Unit (CPCU) within the RDD, headed by a part time Chief Project Director (CPD). The CPCU will have two Units: (i) Finance Unit; and (ii) Planning and M&E Unit. The Finance Unit will be located within RDD whereas the M&E Unit will be housed within UGVS. 10. Coordination: The Rural Development Department (RDD) will be the nodal agency at the state level. A Central Project Coordination Unit (CPCU) within the RDD. A state level Project Steering Committee (PSC) would be chaired by the Forest and Rural Development Commissioner (FRDC). The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD.

11. Convergence: the National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will be responsible for forming and supporting SHGs. ILSP will provide complementary support for livelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will be expected to receive support from other government programmes and from formal financial institutions. ILSP will also implement livelihood enhancement activities in blocks selected for watershed development by the Integrated Watershed Management Programme (IWMP), a centrally sponsored scheme.

II. ROLE AND QUALIFICATIONS OF THE DSA

Project period: the project duration is 7 years and the project cycle in each GP will be of 5 years in following three phases.


The Implementation Phase: - Three years.

The Withdrawal Phase: - Fifth year

The Project is likely to commence from 1st April, 2012. Project Cost : The proposed IFAD funding for this component is about US$ 54 million. Need for Divisional Support Agency (DSA) The objective of the proposed consultancy assignment is to facilitate, support and implement sub components 2 and 3) of the Project Component - Participatory Watershed Development under Integrated Livelihoods Support Project, (ILSP). The sub components are Food Security Enhancement Support and Livelihood Up-scaling Support. The Results to be achieved by the end of the consultancy period are:

i) New high value crop, horticulture and livestock technologies are adopted by Producer Groups (PGs).

j) Appropriate practices for grading, storage & processing and market linkages have been adopted by farmers to increase the value realized of their produce to enhance their household income levels.

k) Value-chains in selected sub-sectors have been developed to sustainably increase incomes in project areas.

l) Linkage of livelihood collectives (LCs) to the market.


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III. SCOPE OF WORK Tasks The Consultancy Agency will undertake the following tasks for the fulfilment of the objectives set above: Development of Division level action plan The contracted agency will develop the action plan for the Division, based on an analysis of farming systems and livelihoods among community, the current activity linked to agribusiness in the Division, and analysis of sub-sectors selected as having most income potential for project communities. The contracted agency will undertake a Farming Systems Livelihood Assessment, and study the Divisional Economy Context in accordance with the Food Security Enhancement and Livelihood Support strategy of the project and the Terms of Reference and Formats developed by Project Directorate. Sub-sector value-chain analyses of relevant sub-sectors are to be conducted by contract agency in co-ordination with state level analyses being undertaken by the Project Directorate. Producer Group (PGs) formation and promotion of Livelihood Collective (LCs) Associations Farmers residing in the pre-specified Project villages have limited access to the larger market network for their products. To address the existing constraints and to leverage their access to production and marketing services, the contracted agency will support farmers to organise into farmers‟ groups at different levels, according to interest of farmers and needs of the sub-sector. The contracted agency will facilitate the formation of such groups and help group members to plan their production and marketing of crops. The contracted agency will also provide technical assistance and managerial support to such Livelihood Collective Groups and associations formed in legal registration under Self Reliant Cooperative Act, 2003, building their institutional capacity, record keeping and business planning. Dissemination of Improved Agricultural Practices and Extension services

The contracted agency will identify and extend to the farmers and other beneficiaries of the project, new and commercially viable technologies; through a planned extension system and an integrated package of services for the specific sector of intervention. This will include introduction and dissemination of improved technology and practices for Agriculture, Horticulture and/or Silvi- pastoral treatments. Introduction of off- season vegetables and high value crops would be emphasized. New varieties of off-season vegetables, fruit crops, medicinal and aromatic plants will be introduced based on agro-climatic factors, demand and assured market. Related training in application of new technologies and improving productivity of crops by compact area demonstration of new crops will also form part of the tasks to be performed. Specific resource consultants and sub partnerships with technical institutions will be within the mandate of the contracted agency, (Jointly decided between the contracted agency and the Project Directorate). The contracted agency will also facilitate technical training and innovative practices to the vulnerable groups and individuals for livelihood enhancement. Improving post harvest handling, providing supply chain management, logistical support and establishing market linkages The contracted agency will work closely with farmers and associations in developing the sub-sector value chains to enhance incomes. The contracted agency will be providing technical post harvest handling support, help arrange logistical support for farm produce marketing and identify the needs and type of collection and marketing infrastructure. It will help establish partnerships with input suppliers, market operators and agro-processing companies. It will help establish norms and systems for quality control, market information systems and opportunities for new products, packaging, and market related requirements. Identification of potential niche market opportunities for products developed as a result of project interventions and exploration and establishment of linkages with


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private sector entrepreneurs who could help in exploiting the market potential will also form an integral part of the tasks to be performed. The objective of the project is to transfer to farmers the capacities of linking to markets to sustainably increase incomes. Thus the agency will not only undertake the activities above, but also focus on developing individual and group capacities to undertake them independently after the project. Project interventions may be with farmers or further up the value-chain, as necessary. Partnerships or collaboration with public or private agencies can be developed as necessary. Overall technical support, training and capacity building

The contracted agency will provide overall technical support to the farmers in the pre-specified project villages and the project as a whole on agribusiness related issues and will work in close cooperation with the project management unit (WMD)and the state level organizations/ concerned Deputy Project Director. Coverage The coverage would be limited to the concerned division. The number of villages and other details will be given accordingly.

IV. TERMS OF CONTRACT

1. Budgets Allocation and Resources to be provided by WMD The consultancy contract is essentially for a facilitation role and hence the budget for the consultancy will be restricted to the direct costs to be borne by the consultant. The budget for the contracted agency will therefore include direct running and human resource costs, specific technology introduction and demonstration costs, market promotion expenses, and human resources deployed. It will have to establish its own office with infrastructure, transport facility, communication system, training of its staff, etc. Office automation and accommodation facilities will not be provided by the project and the agency will have to hire its own staff and establish its own accommodation at divisional and unit levels. All other costs that arise out of promotion of agribusiness such as input supply will be directly provided by the project to the Producer Groups: cost of building of collection centres and market infrastructure will be directly borne and implemented by the project; and cost of working capital and related costs directly paid to farmers‟ groups and associations. These costs will be mutually agreed upon through an annual agribusiness plan prepared and submitted in advance by the consultant. 2. Accounting and Auditing The contracted agency will open a separate bank account for receipt and expenditure of funds for the contract. The agency will also maintain separately records, accounting and auditing of the funds allocated and used for the assignment. The agency will submit the copy of the bank statement and expense statement on a quarterly basis and audit report on an annual basis. Agency would be subjected to audits by WMD staff/ WMD appointed auditors for the project funds. 3. Period of the assignment Period of the assignment would be for five years. Annual extension will be on the basis of the satisfactory performance to be recommended by the Review Committee. 4. Performance Review The following performance review process will be applicable to the contract:

a. On the award of the contract, the agency will prepare a detailed Annual Action Plan, within two months of the award of the contract. The Annual action plan will specify clear performance benchmarks to be achieved after 6 months and after one year.


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b. On the basis of the mutually agreed benchmarks the WMD will review the performance of the agency on a six monthly basis.

c. At the end of one year of completion of the contract, a wider review committee as specified below will review the performance of the agency against mutually agreed target. On unsatisfactory completion of Annual Action plan and/or for any other reason deemed appropriate the contract may be made null and void.

d. The performance review committee will comprise of the following members Chief Project Director - Chair Person Additional Director - Member Additional Director (M&E) - Member Project Director (Garhwal and Kumaon) - Member(s) JD (Agri.,Hort.,Livestock) - Member (s) DPD (Planning/M&E) - Member Finance Officer - Member

5. Reporting and Outputs

a) Quarterly Progress Reports regarding achievement as specified in the format prescribed on award of contract against achievements specified in the Annual Action Plan.

b) Consolidated Six Monthly Reports enumerating the qualitative review of the project

6. Relationship with Project Directorate

The contracted agency will work in close association and in coordination with the project management structure of the WMD at the unit, district and state level. While it will be directly responsible for facilitating and managing the process of agribusiness development from the farm level to the final market, it will work primarily in the project villages already identified by the project and the communities within these villages. It may draw upon the resources generated by the main project such as GP level plans being implemented and other community groups being mobilized by the project and FNGO. Its Annual work plan should be prepared through a consultative process with divisional team of the WMD to ensure coordination during implementation. The required sanctions, financial disbursements, reporting and performance review will be done by the relevant authorities at the state level of WMD. 7. Accounting and auditing

The agency will open a separate bank account for receipt and expenditure of funds for the contract. The agency will also maintain separately records, accounting and auditing of the funds allocated for the assignment and will submit the copy of the expense statement on a half yearly basis and audit report on an annual basis.

8. Terms of payment

The terms of payment as finalized during negotiations by both parties will be applicable. 9. Support to the contracted agency by WMD WMD will provide key background documentation to the team such as Project Approval Document, Project Agribusiness Strategy, Supervision Mission Report, Progress Reports, special studies conducted by the Project and background information on the Project Area. 10. Arbitration

In the event of any dispute between the contracted agency and the district level functionaries of WMD, the Govt. of Uttarakhand will be the arbitrator.


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Annex-1.5.4: List of ULIPH Federations

S.N. Federation Name District Block

1 Nari Ekta Swayatt Sahakarita, Jamradi Almora Bhainsiachhana

2 Ekta Swayatt Sahkarita Almora Dhaula Devi (Danya)

3 Chetna Swayatt Sakarita Almora Lamgara (Sirsoda)

4 Pragati Swayatt Sakarita, Naini Almora Dhaula devi (Naini)

5 Maa Purnagiri Swayatt Sahkarita Almora Lamgara

6 Bisjula Swayatt Sahkarita Almora Lamgara

7 Samadhan Swayatt Sahakarit, Almora Lamgara

8 Pragati Swayatt Sahakarit, Almora Lamgara (Motiyapathar)

9 Jhakar Sam Swayatt Sahakarit, Almora Dhauladevi

10 Navodaya Swayatt Sahakarit, Almora Dhauladevi

11 PACC Society (PACS) Dyari, Almora Almora Dhauladevi

12 Pheninag Swayatt Sahakarita, Kapkot Bageshwar Kapkot

13 Kamasyar Ghati Swayatt Sahakarita, Khatigaon Bageshwar Kapkot

14 Shri Moolnarayan Swayatt Sahakarita, Lathi Bageshwar Kapkot

15 Maa chiltha Swayatt Sahakarita Bageshwar Kapkot

16 Maa Bhagwati chiltha Swayatt Sahakarita Bageshwar Kapkot

17 Ujjwal Swayatt Sahakarita Samiti, Kanda Bageshwar Bageshwar

18 Shri Mahadev Swayatt Sahakarita Bageshwar Bageshwar

19 Maa Bhadrakali Swayatt Sahakarita Bageshwar Bageshwar

20 Jagnath Swayatt Sahakarita Bageshwar Bageshwar

21 Nirmal Swayatt Sahakarita Bageshwar Bageshwar

22 Saryu Velly Swayatt Sahakarita Bageshwar Kapkot

23 Rupkund Swayatt Sahakarita, Ghat Chamoli Ghat

24 Mahadev Swayatt Sahakarita Chamoli Ghat

25 Nandakini Aaloo Ghati Swayatt Sahakarita Chamoli Ghat

26 Nandakini Swayatt Sahakarita Chamoli Ghat

27 Sakti Swayatt Sahakarita Chamoli Ghat

28 Parvtiya Krishi Vipnan Swayatt Sahakarita Chamoli Dasholi

29 Band Bhumiyal Swayatt Sahakarita, Pipalkoti Chamoli Dasholi

30 Krishi Udyan Swayatt Sahakarita Chamoli Dasholi

31 Alaknanda Swayatt Sahakarita Saikot Chamoli Dasholi

32 Navyug Nursingh Swayatt Sahakarita Samiti Chamoli Dasholi

33 Anusuiya Swayatt Sahakarita Samiti Chamoli Dasholi

34 Shri Guru Swayatt Sahakarita Chamoli Narayanbagar

35 Harikul Parvertiya Krishi Vipran Swayatt Sahakarita Chamoli Narayanbagar

36 Narayandev Swayatt Sahakarita Chamoli Narayanbagar

37 Gyan-Vigyan Swayatt Sahakarita Chamoli Narayanbagar

38 Vedni Swayatt Sahakarita Chamoli Dewal

LIST OF FEDERATIONS ORGANISED UNDER ULIPH


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S.N. Federation Name District Block

39 Rupkund Swayatt Sahakarita Chamoli Dewal

40 Pindari Swayatt Sahakarita Chamoli Dewal

41 Homekund Swayatt Sahakarita Chamoli Dewal

42 Chndrabadni Swayatt Sahakarita, Jamnikhal Tehri Devprayag

43 Bal Ganga Swayatt Sahakarita Tehri Bhilangna

44 Nag Tibba Swayatt Sahakarita Tehri Jonpur

45 Vikas Swayatt Sahakarita, Tehri Pratapnagar

46 Satyam Swayatt Sahakarita Tehri Devprayag

47 Katling Swayatt Sahakarita Tehri Bhilangna

48 Argarh Swayatt Sahakarita Devath Tehri Bhilangna

49 Pragati Swayatt Sahakarita Tehri Bhilangna

50 Gongarh Swayatt Sahakarita Tehri Bhilangna

51 Sangam Swayatt Sahakarita Tehri Devprayag

52 Aglad Ghati Swayatt Sahakarita Tehri Jonpur

53 Ronad Vikas Swayatt Sahakarita Tehri Pratapnagar

54 Kyarigad Surkunda Swayatt Sahakarita Tehri Jonpur

55 Sapt Rishi Swayatt Sahakarita, Naugaon Uttarkashi Naugaon

56 Yamuna Valley Ajeevika Swayatt Sahakarita Uttarkashi Naugaon

57 Nagraja Ajeevika Swayatt Sahakarita Uttarkashi Dunda

58 Vishwanath Ajeevika Swayatt Sahakarita Uttarkashi Dunda

59 Banal Patti Vikas Swayatt Sahakarita Uttarkashi Naugaon

60 Raja Ragunath Ajeevika Swayatt Sahakarita Uttarkashi Naugaon

61 Baokhnag Ajeevika Swayatt Sahakarita Uttarkashi Dunda

62 Renuka Ajeevika Swayatt Sahakarita Uttarkashi Dunda

63 Raj rajeshwari Ajeevika Swayatt Sahakarita Uttarkashi Dunda

64 Mahasu Devta Parvat Phata Ajeevika Swayatt Sahakarita Uttarkashi Mori

65 Karan Maharaja Ajeevika Swayatt Sahakarita Uttarkashi Mori

66 Kedarkatha Ajeevika Swayatt Sahakarita Uttarkashi Mori

67 Har ki dun Ajeevika Swayatt Sahakarita Uttarkashi Mori

68 Ramasirai Ajeevika Swayatt Sahakarita Uttarkashi Purola

69 Kalignag Ajeevika Swayatt Sahakarita Uttarkashi Purola

70 Shiv Bhadrakali Ajeevika Swayatt Sahakarita Uttarkashi Purola

71 Chaurangi Ajeevika Swayatt Sahakarita Uttarkashi Dunda

LIST OF FEDERATIONS ORGANISED UNDER ULIPH


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Chapter-1.6: PROCUREMENT PROCEDURES

A. Procurement Regulations for ILSP

Procurement of goods, works and services financed by funds from IFAD would follow the GoUK‟s Uttarakhand Procurement Rules 2008 with project specific modifications (attached as Annex 1), to the extent that they are consistent with the IFAD Procurement Guidelines. Each Annual Procurement Plan will identify procedures which must be implemented by the Borrower in order to ensure consistency with the UPR 2008 & IFAD Procurement Guidelines. IFAD may require that all bidding documents and contracts and other records for procurement of goods, works and services financed by the loans are:

(i) Available for full inspection by the Fund of all bid documentation and related records;

(ii) Maintained for three years after completion of the bid or contract; and

IFAD may also require that the project cooperate with agents or representatives of the Fund carrying out an audit or investigation into procurement issues.

All procurement financed by the proceeds of the loans will be undertaken as per UPR 2008 specifically modified for ILSP to the extent they are consistent with IFAD‟s Procurement Guidelines. Wherever, if the UPR 2008 are inconsistent with IFAD‟s Procurement Guidelines, the latter shall prevail. Project specific modifications have been made in the UPR 2008, especially in relation to thresholds for triggering various procurement methods and approval processes, to ensure smooth functioning of the Project and timely execution of Project activities. These project specific changes (notified in the PIM), have been drafted in consultation with the Implementing Agencies and GoUK. IFAD may attach Standard Bidding Documents (SBD) to the Financing Agreement / Letter to the Borrower, so that these are used for undertaking procurement under this project, if need be. Concepts relating to Accountability, Competition, Fairness, Transparency, Efficiency, Effectiveness & Economy and Value for Money contained in IFAD‟s Procurement Guidelines and which are central to IFAD‟s Procurement Philosophy are discussed below. The Procurement Process involves purchasing, acquiring, hiring or obtaining of goods, works and services by any contractual means and can be defined in more detail as procurement of goods, procurement of works and procurement of services. The procurement cycle consists of (i) General Procurement Notice, (ii) Tender Document Preparation, (iii) Pre-Qualification, (iv) Advertisement, (v) Receipt of Tenders, (vi) Public opening of Tenders, (vii) Evaluate of Tenders, (viii) Award of Contract, (ix) Issue of Work Order or Purchase Order and (x) Performance of contract.

B. Borrower’s Responsibilities

OFFICERS’ RESPONSIBILITIES Borrower/recipient officials engaged in procurement activity have a duty to: (a) Maintain and enhance the reputation of the borrower/recipient country by:

(i) Maintaining the highest standards of honesty and integrity in all professional relationships; (ii) Developing the highest possible standards of professional competence; (iii) Maximizing the use of IFAD funds and other resources for which they are responsible for the

purposes for which these funds and resources were provided to the borrower/recipient country; and


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(iv) Complying with both the letter and the spirit of: · The financing agreement; · The laws and regulations of the borrower/recipient country; · Accepted professional ethics; and · Contractual obligations;

(b) Declare any personal interest that may affect, or might reasonably be deemed by others to affect, impartiality in any matter relevant to their duties (conflict of interest). In a situation of this nature, the official concerned should not participate in any way in the procurement process, to avoid misprocurement; and (c) Respect the confidentiality of information gained in the course of duty and not use such information for personal gain or for the unfair benefit of any bidder, supplier or contractor. Information given in the course of their duties shall be true, fair and not designed to mislead. ACCOUNTABILITY The borrower/recipient is accountable to IFAD for all actions and decisions in relation to project-funded procurement. This includes, but is not limited to:

a) Ensuring that the funds are used solely for the purpose for which they were provided; and b) Ensuring that procurement is undertaken in accordance with IFAD Procurement guidelines.

COMPETITIONS Full, fair and legitimate competition among eligible suppliers and contractors6 is the foundation on which project-funded procurement activities should be based. The most common method of seeking competition is through a competitive bidding process, and, in this regard, IFAD specifies that all goods, works and services should be obtained through an agreed procurement process7 involving at least three separate8 suppliers or contractors whose business is directly related to the procurement being undertaken. It is recognized that it is neither practical nor efficient to advertise internationally for low-value contracts for goods, works or services, and the degree to which the principle of competition is required for each procurement activity will be outlined in the procurement method approved by IFAD within the procurement plan. Borrowers/recipients will be expected to promote genuine competition at every opportunity and may be required to provide evidence of: (a) Fair and genuine competition in the compilation of shortlists and in the solicitation of bids; and (b) The effectiveness of competition during the bidding process. Single sourcing and direct contracting do not provide the elements of competition required by IFAD. Only in exceptional circumstances will these approaches be considered and approved in procurement plans agreed with IFAD. FAIRNESS IFAD‟s expectation is that project-funded procurement will be open to as many eligible bidders from IFAD‟s developed and developing Member States as is practicable in order to meet the requirements of competition. IFAD expects borrowers/recipients to ensure that all prospective bidders are:

a) Managed with a consistent approach and application of laws, regulations and requirements in respect of the procurement process;

b) Offered a level playing field on which to genuinely compete; and c) Treated in a fair, impartial and unbiased way, so that principles of impartiality and equal

opportunity can be demonstrated in all procurement activities. In striving for fairness in its procurement operations, IFAD:


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a) Will not tolerate exclusion of, discrimination, bias or prejudice against, or favouritism or

inequality towards any potential supplier or contractor, either directly or indirectly through manipulation of any part of the procurement process, including, but not limited to, the preparation of technical specifications, evaluation criteria or bidding requirements. Where any such activity is suspected or proven, IFAD reserves the right to take any preventative, corrective or punitive action it considers appropriate; and

b) Will seek to address, in consultation with the borrower/recipient, any impositions that may

deter or impinge on the attainment of fairness within the procurement process. TRANSPARENCY IFAD expects the highest degree of transparency and openness within the procurement processes undertaken under its projects. A lack of transparency can be perceived as an attempt to withhold information, which in turn may make the fairness and integrity of the procurement process suspect. Transparency within procurement relates to disclosing in the public domain, information for parties involved, interested in or affected by the process, including but not limited to information on: (a) The availability of potential and existing procurement opportunities; (b) Where to access relevant data; (c) The processes by which the procurement is being undertaken; (d) The mechanisms by which contracts will be awarded; (e) Contract award data; and (f) Appeal procedures. Modes of communication/publication of such information will vary depending on the nature of the data but will generally be through existing means of public information (e.g. government websites, public notice boards or media) or in the procurement documentation relevant to an individual procurement activity (e.g. bid notices and bidding documents). Borrowers/recipients are required at all times to act openly, predictably and in accordance with the information provided. EFFICIENCY, EFFECTIVENESS AND ECONOMY IFAD requires borrowers/recipients to demonstrate efficiency and economy in undertaking project-related procurement, to avoid undue implementation delays and to achieve value for money. Procurement must be well organized, carried out correctly with regard to quantity, quality and timeliness, and at the optimum price, in accordance with the appropriate guidelines, principles and regulations. Processes must be proportionate to the procurement activity, so that the overall cost of conducting the procurement process is minimized and tailored to the size of the budget for the activity being undertaken, while upholding the guiding principles. Efficiencies can be obtained through a combination of methods. For instance, a strategic approach can be taken to planning, combining and conducting procurement activities so as to minimize loss of time and resources. For this reason, the design of all IFAD-funded projects must now include a procurement plan as per section III.D of IFAD Procurement Guidelines and as defined in, and required by, the General Conditions. VALUE FOR MONEY Underpinning all of the above is the need to obtain value for money for all project procurement activities through the optimum combination of several factors, including:


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(a) Applying sound, internationally recognized procurement principles; (b) Ensuring that the goods, works or services procured meet the requirements for the task and are not over specified; (c) Ensuring that the goods, works or services are contracted on the best possible terms, taking into account their expected life cycle; and (d) Ensuring that the provider/supplier of the goods, works or services is qualified, legally entitled and competent to execute the contract. IFAD recognizes that some countries have national legislation governing the disclosure of information, and in such circumstances specific provision will be made during negotiations to ensure that the principle of transparency is maintained. Best value does not necessarily mean the lowest initial price option, but rather represents the best return on investment, taking into consideration the unique and specific circumstances of each procurement activity; the balance of time, cost and quality required; and the successful overall outcome of the contract in meeting its original objectives.

C. Procurement Planning Accurate and realistic planning and prioritization of needs is an essential prerequisite to effective procurement and a key tool for monitoring project implementation. At the time of negotiation of each project, the borrower/recipient, in consultation with IFAD, must establish an 18-month procurement plan, which must include, as a minimum: (a) A brief description of each procurement activity to be undertaken during that period; (b) The estimated value of each activity; (c) The method of procurement to be adopted for each activity; and (d) The method of review IFAD will undertake for each activity (section III.H of IFAD Procurement Guidelines) guidelines); Where national procurement plan templates exist and are agreed by IFAD as suitable, then such templates should be used. If no such templates exist, IFAD will adopt those from other international financing institutions with which the borrower/recipient is familiar and which are in use for other projects. Borrowers/recipients are required to keep plans updated frequently to reflect changes to the project or timescales. IFAD‟s review of and no objection to procurement plans is compulsory under all financing agreements directly supervised by IFAD. ILSP is one such agreement.

D. IFAD Monitoring & Review To ensure that the procurement process is carried out in conformity with IFAD procurement Guidelines and with the agreed procurement plan, IFAD will review arrangements for procurement of goods, works and services proposed by the borrower/recipient, including: (a) Contract packaging; (b) Applicable procedures and procurement methods; (c) Bidding documentation; (d) Composition of bid evaluation committees; (e) Bid evaluations and award recommendations; and (f) Draft contracts and contract amendments. The extent to which these review procedures will be applied to each project or programme will be contained in the letter to the borrower/recipient and the procurement plan. For full details on the review processes, refer to the Procurement Handbook.


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Misprocurement: IFAD will not finance expenditures for goods, works or consulting services that have not been procured in accordance with IFAD Procurement Guidelines and the financing agreement. In such cases, IFAD may, in addition, take other remedial action under the financing agreement, including cancellation of the amount in question from the loan and/or grant account by declaring it ineligible. Even if the contract was awarded following IFAD‟s “no objection” statement, the Fund may still declare misprocurement if it concludes that this statement was issued on the basis of incomplete, inaccurate or misleading information furnished by the borrower/recipient, or that the terms and conditions of the contract had been modified without IFAD‟s approval. Fraud and corruption: IFAD requires that its own staff and the staff of borrowers/recipients (including beneficiaries of IFAD financing), and all bidders, suppliers, contractors and consultants under IFAD-financed contracts, observe the highest standard of ethics and integrity during the execution of and procurement under such contracts. This position is clearly stated in the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations 16 (hereafter: the anticorruption policy), which apply to IFAD Procurement Guidelines. In line with this policy, IFAD will have the right to:

(a) Reject a proposal for award if it determines that the bidder, supplier, contractor or consultant recommended for award has, directly or through an agent, engaged in coercive, collusive, corrupt or fraudulent practices in competing for the contract in question;

(b) Suspend or cancel all or part of the financing in accordance with the General Conditions if it determines at any time that representatives of the borrower/recipient or of a beneficiary of the financing engaged in coercive, collusive, corrupt or fraudulent practices during the procurement or the execution of that contract, without the borrower/recipient having taken timely and appropriate action satisfactory to IFAD to remedy the situation;

(c) Sanction an individual or firm – which may include declaring the individual or firm ineligible to be awarded an IFAD-financed contract indefinitely or for a stated period of time – if at any time it determines that the individual or firm has, directly or through an agent, engaged in coercive, collusive, corrupt or fraudulent practices in competing for, or in executing, an IFAD-financed contract;

(d) Require that bidding documents and the contracts that it finances include a provision requiring suppliers, contractors and consultants to permit IFAD to inspect their accounts, records and other documents relating to the bid submission and contract performance, and to have them audited by IFAD appointed auditors;

(e) Refer any cases of irregular practices that include, but are not limited to, fraud and corruption18 to the relevant national authorities for further investigation; and

(f) Apply, in the event of cases in which irregular practices have been determined, the sanctions it deems necessary and appropriate.

With the specific agreement of IFAD, a borrower/recipient may include, in bid forms for IFAD-financed contracts, an undertaking of the bidder or consultant to observe, when competing for and executing a contract, the country‟s laws against fraud and corruption (including bribery), as listed in the bidding documents or requests for proposals.19 IFAD will accept the inclusion of such a requirement, at the request of the borrower‟s/recipient‟s country, provided the arrangements governing such an undertaking are satisfactory to IFAD IFAD Prior Review: All procurement transactions of goods, works and services above the thresholds mentioned in the Letter to the Borrower (LTB) will undergo prior review by IFAD. The extent and processes adopted for the prior review will be decided by the IFAD CPM in accordance with the IFAD Procurement handbook.


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E. Community Level Procurement

Construction of watershed conservation works (small works and materials like construction materials, horticulture tools, poly houses and tunnels, plants, seeds, saplings, medicines, bio pesticides, fertilizers, fodder, wire, angles etc.) will be carried out following the established practices of the WMD using the Water and Watershed Management Committees of the respective Gram Panchayats. As Procurement with Community Participation method is not specifically covered by the UPR, so such procurement may be undertaken in general compliance with the IFAD Procurement Guidelines and a manual for Community Procurement is attached in Annex-1.6.3. This is based on the Community Procurement Manual of World Bank-funded UDWDP.

F. ILSP Procurement Procedures PROCUREMENT OF CIVIL WORKS Construction of civil works for rural infrastructure such as irrigation systems, link roads, and markets, It is expected that most of the procurement of civil works will be done under Paragraph 40 of UPR (Procurement of Works by obtaining of Bids/Tenders). ILSP PROCUREMENT OF GOODS

Procurement of vehicles and equipment

Vehicles and motorcycles for the project will most likely be procured through „Purchase of Goods directly under Rate Contract‟ under paragraph 1.9 of the UPR 2008. The option exists for procurement from other suppliers through „Purchase of Goods by Obtaining Bids/Tenders „ under paragraph 3.10 of the UPR. Purchase of computers, other office equipment and office furniture would primarily be from local suppliers under paragraph 3.9 or 3.10 referred above. – although there is also the option of „Purchase of Goods by Purchase Committee‟ under paragraph 3.8 of the UPR if the estimated contract value is below the threshold. Care should be taken to see that requirements are bulked up wherever practical. Procurement of operating materials Vehicle operating costs would be procured using „Purchase without quotations‟ under paragraph 3.8 of the UPR or under 3.9 of the UPR referred earlier. Procurement for office running expenses would follow the same procedure. ILSP PROCUREMENT OF SERVICES

Procurement of NGOs Services

ILSP proposes to outsource much of the field level implementation of the project activities to well qualified and experienced NGOs. UGVS will engage about six experienced and competent Partner NGOs to implement field level activities. WMD will engage two Field NGOs for social mobilization and six NGOs Divisional Support Agencies (one for each district) for agribusiness development. Under the innovation and linkage sub-component of Component 1, NGOs may also be engaged. The selection and contracting of NGOs will be done as per methods listed in „Identification of likely sources‟ under paragraph 4.50 of the UPR 2008 with QCBS (Quality and Cost Based Selection) under paragraph 4.59 of the UPR 2008, being used to select successful bidders. In the first year of the Project, the following methods will be applied to ensure that there is no undue delay in implementation of scheduled project activities.


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(a) Competitive selection via National Competitive Bidding would be used to select NGOs for UGVS as discussed in „Identification of likely sources‟ under paragraph 4.50 (2 & 3) of the UPR 2008

(b) Direct contracting or Consultancy by Nomination under paragraph 4.58 of the UPR may

be used by WMD to re-nominate NGOs who have proved themselves to be good performers under UDWDP, and to avoid any delay in the start-up of the project. If could be followed by a competitive selection process as discussed in paragraph 4.50 (2&3) to select a suitable NGO. This will require special IFAD approval.

(c) NGOs and other agencies may be asked to do specific tasks that reflect their unique

capabilities, “Outsourcing by choice” method (vide Paragraph 4.64) or single source selection may be the most appropriate procurement methods (as per paragraph 4.58 of the UPR).

Procurement of training services

Training directly organised by the PMU could be procured via “consultancy by Nomination‟ under paragraph 4.58 of the UPR or Single Source Selection – where there is only a single qualified supplier or the supplier is a government agency (such as an agricultural research institute). If there are a small number of qualified organisations, then RFQ method discussed in „Identification of likely sources‟ under paragraph 4.50 (1) may be used subject to the limits in the UPR 2008. However for many courses, the PMU and/or other implementing offices will organise each element of the training, and individual trainers may be hired via Selection of Individual Consultant (SIC), with training allowances, food and miscellaneous costs paid for via Purchase without Quotations under paragraph 3.8 of the UPR.

Procurement of studies

It is envisaged that most of the required studies and surveys would be carried out by the CPMU (M&E unit) & PMUs. There will also be some requirement to recruit specialised agencies to carry out additional studies such as the RIMS anchor indicator studies. The procurement of consultants to carry out these studies would follow the methods listed in „Identification of likely sources‟ under paragraph 4.50 of the UPR 2008 with QCBS (Quality and Cost Based Selection) under paragraph 4.59 of the UPR 2008, being used to select successful bidders. In some cases Consultancy by Nomination under paragraph 4.58 of the UPR 2008 (Single Source Selection) may also be used if the topic is highly specialised and there is only a single qualified bidder (such as for the RIMS surveys). IFAD would make a prior review of the selection of firms to undertake this work, if the contract value exceeds the prior review threshold mentioned in the LTB. Procurement of staff and consultants Some key project staff, including the Chief Project Director (CPD), Project Directors (PDs) and Finance Controllers (FCs) would be seconded from GoUK, but most of the other project staff would be recruited by PIAs on a contract basis. For such recruitment, the CPMU/ PMUs would form a recruitment committee headed by the CPD/PD with representatives from the IAs and other agencies. Candidates would be short listed according to ToR, which specifies the tasks to be carried out and required qualifications, experience and age limits if any. Short listed candidates would then be interviewed. For senior positions the CVs of the top three candidates for each position would be sent to IFAD for approval prior to their appointment. Draft ToRs would be included in the draft Project Implementation Manual.

Some senior and specialised advisory posts would be filled by consultants. All 3 PIAs have an existing team of Consultants who implement ULIPH/UDWDP. The PIAs have an option to extend the contracts of these Consultants after a transparent performance appraisal process. In case new


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Consultants need to be recruited by PIAs, the process to be followed will be the same as for ILSP contract staff, with a recruitment committee, ToRs and IFAD review of the top three CVs prior to appointment. ALL OTHER PROCUREMENT OF SERVICES All other procurement of services other than those specifically discussed above would be carried out under the RFP Method (Paragraph 49- 58 of the UPR) using QCBS (Paragraph 59 of the UPR) as the basis of selection from among shortlisted candidates.


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Annex-1.6.1: Proposed Relaxation of UPR-2008 for ILSP

Relaxation of Rules under Uttarakhand Procurement Rules, 2008 for Integrated Livelihood Support Project (ILSP)

Under Uttarakhand Procurement Rules, 2008, there is a provision under Rule 72(4) for granting relaxation of rules. The rule is as under: “The Department of

Finance may permit relaxation of these rules in special circumstances and in the case of Externally Aided Projects/Special Projects based on proper

justification.”

The Integrated Livelihood Support Project „ILSP‟ is an externally aided project funded by International Fund for Agricultural Development (IFAD) being

implemented in Uttarakhand from year 2012 to 2019. The Project Agreement and Financing Agreement have been signed on 1st February, 2012.

According to paragraph 5(xi) of the Agreed Minutes of Negotiations for ILSP between Government of India, IFAD and Uttarakhand Government provides as

under: “It was agreed that the State Government procurement regulations were very comprehensive. However, it was observed that some of the thresholds

were on the low side. In the interest of smooth implementation, IFAD suggested that these thresholds be increased and suitable government instructions

issued. It was agreed that where there are gaps in State Government procurement regulations (such as procurement involving community participation), IFAD

Procurement regulations would apply.”

In compliance to Para 1.1 and 1.2, relaxation provisions under Uttarakhand Procurement Rules, 2008 have been hereby prepared in consultation with

International Fund for Agricultural Development (IFAD) and approved by the Government of Uttarakhand.

The Uttarakhand Procurement Rules, 2008 will apply to all procurement of goods, works and services under ILSP subject to Project specific relaxations as

provided herein.


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1. ILSP Specific Modifications to UPR 2008 Rule 2(d) under Definitions of Chapter 1 : General Instructions

Existing Provision Relaxation Proposed Justification for relaxation

(1) (2) (3)

„Head of Department‟ means the such office bearer appointed by the State Government, who have been declared as head of the department under the financial rules of the State

„Head of Department‟ refers to the Project Co-ordinator (PC) of Central Project Coordination Unit & Project Director (PD) of each Project Implementation Agency (PIA) and Regional Project Director (RPD) of Project Society of Watershed Management Directorate (PSWMD) appointed by the State Government for the purpose of ILSP

In terms of Financing Agreement for ILSP, the Project Co-ordinator (PC) of Central Project Coordination Unit & Project Director(PD) of each Project Implementation Agency (PIA) and Regional Project Director (RPD) of PSWMD are responsible for implementation of various components under the Project.

2. Rule 2(e) under Definitions of Chapter 1 : General Instructions


(1) (2) (3)

„Head of Office‟ means the senior most gazetted officer in an office or establishment, declared as such by the Government or by the Head of the Department as per financial rules

„Head of Office‟ refers to the Project Co-ordinator (PC) of Central Project Coordination Unit and Project Director(PD), Regional Project Director, Deputy Project Director (DPD), Chief Executive Officer(CEO), Chief Programme Manager(CPM), Divisional Project Managers(DPM) of each Project Implementation Agency (PIA) appointed by the State Government for the purpose of ILSP

In terms of Financing Agreement for ILSP the PC, PD ,RPD, DPD, CEO , CPM and DPM are responsible for implementation of various components under the Project.

3. Rule 7 under Purchase/Price preference of Chapter 2 : Goods


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(1) (2) (3)

The State Government, through the Administrative Department and with the concurrence of Finance Department may provide purchase/price preference for goods manufactured within the State by small, cottage/khadi/tiny enterprises/established within the State. The preference should not be more than ten percent of the lowest quoted rate.

Price preference for goods manufactured within the State by small, cottage/ khadi/ tiny enterprises/established within the State deleted. Purchase preference kept as in provision.

IFAD Procurement Guidelines do not provide for price preference to any group of suppliers in view of economy in procurements. However purchase preference can be given to promote indigenous products.

4. Rule 9 under Purchase of Goods by Purchase Committee of Chapter 2 : Goods


(1) (2) (3)

Purchase of goods costing above Rs.15000/- (Rs. Fifteen thousand) and upto Rs.1,00,000/- (Rs. One lakh only) on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee consisting of three members of an appropriate level as decided by the Head of Department/Head of Office.

Limit of Rs. 1,00,000 (Rs. One lakh only) enhanced to Rs. 3,00,000/-.(Rs. Two lakh only)

The increase of ceiling for procurement through committee will be required keeping in view a. inflation since 2008, b. to avoid advertisement

costs c. to overcome Earnest Money

Deposit requirement in procurements for project demonstration activities which are mainly village based where suppliers are reluctant to provide goods of lower value.

5. Rule 10 under Purchase of Goods directly under Rate Contract of Chapter 2 : Goods


(1) (2) (3)

(1) For goods and items, which are identified as common user items and are

(1) Rate contracts of Government Research Organisations or Commodity Boards /

(1)Rate contracts of Central Purchase Organization of Government of India like


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needed on recurring basis by the various Departments and agencies of the Government, such Rate Contracts may be concluded by the designated Central Purchase Organization of the State Government or Administrative Departments of the State Government. (2) In special circumstances, the Department with the concurrence of Finance Department may be authorised to purchase goods on the basis of rate contracts, concluded by the central purchase organization of Government of India (For example DGS&D)

Organisations under Central/State Government included. (2) With reasons recorded in writing, the Competent Authority may be authorized to purchase goods on the basis of rate contracts, concluded by the central purchase organization of Government of India (For example DGS&D). The project will draw up technical specifications for the goods and obtain quotations from all the Original Equipment Manufacturers in the DGS&D list.

DGS&D should also be allowed under express provision as it broadens the scope and smoothens the procurement process related to vehicle, computers and other items. As per specific comments from IFAD, it should be treated as shopping. The project will draw up technical specifications for the goods and obtain quotations from all the Original Equipment Manufacturers in the DGS&D list. (2)Direct procurement from State Government Departments, State Government promoted Boards and Organisations like TDC, ULDB etc and Universities although not having Government approved rate contracts should also be allowed to avoid advertisement costs and smoothening procurement process provided the rates quoted for these goods are lower than prevailing market prices for same/ similar quality. These agencies play important role as suppliers under the Project as the project implementation is mainly carried out in rural and remote areas.

6. Rule 15 Bid System of Chapter 2 : Goods


(1) (2) (3)

(1) Single Bid System:- For procurement of items having no registered suppliers, single bid system may be opted up to purchase limit of Rs. 5,00,000/- (Rs. Five lakh), in which specifications of items and financial bid may be quoted together on prescribed form issued by Competent Authority.

Single bid system for goods will be adopted for all procurement related to goods.

The goods proposed to be procured under the Project are not of complex nature. As per specific comments of IFAD, two bid system shall be limited to consultancy services only.


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(2) Two Bid System:- For procuring high value plant, equipment or machinery etc. of a complex and technical nature, bids may be invited in two parts:- (a) Technical bids:- The technical bid consisting of all technical details, along with commercial terms and conditions, and (b) Financial bid:- The Financial Bid should Indicate item-wise price for the items mentioned in the technical bid.

7. Rule 22 under Advance Payment to Supplier of Chapter 2 : Goods


(1) (2) (3)

(2) Such advance payments should not exceed the following limits:- (b) 40% of the contract value to a State/Central Government agency or a public undertaking agency.

(b) In case of Central/ State Government agencies advance payments, as per norms of the agency or such rate as mutually agreed, may be made

Central / Government Agencies supply goods as per their norms which may include provision of advance payment. Further, as these agencies operate under direct or indirect control of the Central/ State Government, the advance payments can be presumed to be adequately safeguarded.

8. Rule 30 under Method of Starting any new work, repair, maintenance etc. of Chapter 3 : Procurement of Works


(1) (2) (3)

(d) Estimates containing the detailed specification and quantities of various items have been approved by Public Works Department (PWD) or any other specialized agency.

(d) Estimates containing the detailed specification and quantities of various items have been approved by Public Works Department (PWD), any other specialized agency. Competent Authority is authorized to approve the estimates upto Rs.

Under ILSP, Junior Engineer (Civil) will be hired on full time basis to prepare estimates, supervise and monitor construction works.


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10,00,000/- (Rs. Ten lakhs only) prepared by the Junior Engineer appointed under Project.

9. Rule 32 under Registration of Contractors of Chapter 3 : Procurement of Works


(1) (2) (3)

Registered Contractors under Public Works Department or any other Central/ State Government Agency will deemed to be registered contractors under the Project under Rule 32. The Project may undertake the registration process under Rule 32 for registering contractors to carry out specialized construction works like construction of village ropeways.

This will reduce the documentation required for registration of contractors and further will ensure that blacklisted contractors are not engaged for Project activities.

10. Rule 33 Methods of Calling Tenders of Chapter 3 : Procurement of Works


(1) (2) (3)

(a) Single Bid System (b) Two Bid System (c) Tenders with Pre-Qualification (d) Tenders with Post-Qualification (e) Tenders for works of a complex nature (f) Single-source procurement

Single bid system for works will be adopted for all procurement related to works. Specifications of construction related activities will be worked out in advance.

The works proposed to be procured under the Project are not of complex nature. As per specific comments of IFAD, two bid system shall be limited to consultancy services only.


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Community Procurement

1.1. Background

The Community Procurement Manual was prepared for World Bank funded Uttaranchal Decentralized Watershed Development Project (UDWDP). Watershed

Development activities in UDWDP were implemented through the Panchayat Raj Institutions (PRIs). The study on Accounting and Accountability

Arrangements (AAA) in PRIs in Uttarakhand revealed that the GPs are beset with the problem of unpredictable and inadequate release of funds coupled with

the fact that the community is even unaware of the availability- quantum and source of funds. This has largely created a disincentive to effective procurement

planning, limited exposure and awareness to procurement norms, lack of experience to know and understand the market and application of uncompetitive

procedures resulting in procurements in small lots, difficulties in transportation specially in far flung areas, loss of economy and inefficiency in procurement.

Under Integrated Livelihood Support Project, the Gram Panchayats (GPs) will be the primary project implementation agencies to implement the Participatory

Watershed Development Component of the Project, The Panchayat Raj Institutions (PRIs) will have a meaningful role in planning, implementation and

management of economic activities in the rural areas.

Under Food Security and Livelihood Enhancement Component, the Project envisages to form Vulnerable Producer Groups (VPG) / Producer Groups (PG)

and their Livelihood Collectives (LC). While VPG/PGs will play important role in implementation of Food Security Improvement Plan (FSIP), the LCs will carry

out the implementation of Agribusiness Upscaling Plan (AUP) and Irrigation and Infrastructure Plan(IIP).

In this perspective, Community Procurement procedures need to be clearly spelt out to ensure active involvement of community in planning, execution ,

reporting and monitoring the procurement of goods, works and services.

1.2. Requirements of Community Procurement System

Community procurement system can be said to be well functioning if it achieves the objectives of transparency, competition, economy and efficiency, fairness

and accountability. The following are among the key elements that can be used in determining to what extent a particular system meets these objectives.

Clear, comprehensive and transparent legal frameworks characterised by the presence of legal rules, which are easily identifiable, promote all the objectives

stated above and govern all aspects of the procurement process.

Such rules should provide for –


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As wide advertising of bidding opportunities;

maintenance of records related to the procurement process;

pre disclosure of all criteria for contract award;

contract award based on objective criteria to the lowest evaluated bidder;

public bid opening;

access to a bidder complaint review mechanism; and

disclosure of the result of the procurement process.

Clarity on functional responsibilities and accountabilities for the procurement functions as characterised by a definition of –

those who have responsibilities for implementing procurement including preparation of bid documents and the decision on

contract award;

who in the buying entities bears primary accountability for proper application of the procurement rules; and

means of enforcing these responsibilities and accountabilities including the application of appropriate sanctions.

Need for an institutional framework that differentiates between those who carry out the procurement functions and those who have oversight responsibilities.

Robust mechanism for enforcement including clarity of rules and institutional arrangements and means to enforce the rules. The means of enforcement

include the right to audits by the Government of the procurement process and a bidder complaints review mechanism in which bidder have confidence.

1.2.1. A well-trained procurement staff is central to ensuring proper application of the procurement system. This staff should be the one that

possesses the technical proficiency to implement the functions. The existence of a continuous, focused and targeted training program is

therefore mandatory.

1.3. Tenets of Good Community Procurement

Sound procurement policies and practices are among the essential elements of good governance. Good practices reduce costs and produce timely results whereas poor practices may lead to waste and delays and are often the cause for inefficiency. Community Procurement can be used as an effective tool of community empowerment if it is supplemented by timely availability and prior knowledge of the sources of funds during a defined period of time and ensuring adherence to the basic tenets of good procurement viz. appropriate quality, sufficient quantity, exact timing, reasonability of rates and proper authority for procurement of goods works and services.

Application of these tenets may be ensured through the following procedures :

1.3.1. Appropriate prescribed Quality: The ISI marked goods/materials should be procured, preferably from the authorised dealers. Further

services of experienced contractors and skilled labourers should be used. The Community should select the suppliers/ contractors/skilled

labours on the basis of prescribed procedures using standard formats. The Community should decide the specifications and brand


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names of the goods and quality of services required in its prescribed forum before procurement for ensuring appropriate quality of the

goods/materials and services based on the job specifications.

1.3.2. Sufficient Quantity: The appropriateness of quantity of the goods/ materials to be procured should be deliberated in the prescribed forum

considering the requirements emanating from the work(s) to be undertaken individually or over a period of time- monthly/quarterly etc;

availability of and security at storage facilities; economies of scale, if any, on purchases in bulk; availability and cost of transportation;

location of the prospective sellers/suppliers and any other issue specific to such goods/materials. Similarly, the services to be hired are

invariably assessed and discussed at prescribed forum to identify the nature of service, the minimum qualifications, duration for which

required etc.

1.3.3. Exact Timing: The Community in its appropriate forum decides the timing for procurement of goods/materials and start date for activities.

The decision regarding the date of commencement and completion takes into account the harvesting & monsoon seasons and social

factors. The Community prepares, discusses and incorporates in its plans, the timing for procurement of goods based on the

commencement of different activities. The timing for hiring of services of skilled personnel like plumbers, fitters, electricians, mechanics

etc. are also discussed and finalised in advance.

1.3.4. Reasonability of Rates: To ensure the reasonability of rates, the annual plans and technical sanctions of each activity to be undertaken

therein serve as the benchmarks. The Community should then make actual procurement through the methods prescribed selecting not

necessarily the lowest, but the most reasonable offer based on the requirements defined in the technical sanction of estimates.

1.3.5. Proper Authorisation: The authority to procure goods, works and services is delegated to the Community or its elected representatives. Appropriate delegation of authority for making procurements through the method prescribed and constitution of a Procurement Sub-Committee having representatives of the Community are some of the necessary steps taken to ensure that the community retains and exercises required authority for transparent procurement of goods and services.

1.4. Threats to Community Procurement

1.4.1. Extensive capacity building programs have to be undertaken for the Community and its functionaries to undertake complex responsibility of procurement. This process is cumbersome and there is a likelihood of loosing the focus during the initiatives taken for capacity building.

1.4.2. There is a marked apprehension among the project authorities on the capacity of the Community to procure economically and efficiently.

Conversely, the apprehension of the Community that the project authorities are not willing to delegate and believe them is also equally

damaging.

1.4.3. The concept of Community Procurement is more successful in a non-complex environment e.g. village with a small and homogeneous

population and is yet to be tested for a complex situation with multiple villages and heterogeneous population.

1.4.4. Community Procurement may be restricted to Procurement by influential members of the community and the presence of

heterogeneous population may lead to creation of groups of diversified interest.

1.4.5. Possibilities of inflating the rates of labour and material.

1.4.6. Disputes between the GPs and the village level committees may hamper the timely procurements leading to delays and cost overruns.


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1.5. Need for Procurement Manual

1.5.1. Procurement is an important aspect of the Projects being financed or funded by the International Fund for Agriculture Development

(IFAD). It is a critical element in project implementation and unless carried out efficiently and promptly, the full benefits of the Project

cannot be realized. Though good procurement practices alone cannot assure that the projects will achieve the development goals but

they definitely enhance the development effectiveness. Poor procurement practices, however, on their part virtually guarantee that

these goals will not be fully achieved as it leads to project delays, cost overruns, and complaints by bidders as also affect the

creditability of the associated institutions. The role of procurement manual is, therefore, critical for –

Achieving economy, efficiency and transparency in the procurement process;

Uniformity in application across the targeted group.

Ensuring speedy transfer of resources by way of disbursement;

Ensuring satisfactory implementation; and

Ensuring success of the project.

1.5.2. Participatory programs are not new to Uttarakhand with The Doon Valley Project, IWDP (Hills-II) and UDWDP Project being examples

where the implementation of the project was through the village level institutions. The involvement of PRIs - Gram Panchayats as the

focal operating and executing agencies for the implementation of the Project. They will manage all the funds, implement plans using

Community contracting practices and operate & maintain investments in partnership with their constituents.

1.5.3. The report of the preparatory mission for UDWDP project highlighted certain critical elements that need to be considered when seeking

to achieve the desire level of participation of the stakeholders. One such element is the capacity of the GPs to take on the

responsibilities of implementing the micro-watershed sub projects. Of particular concern are the fund management and procurement

aspects of implementation. 1.5.4. The draft report of the study conducted by the WMD to understand the accounting and accountability arrangements in PRIs in

Uttarakhand also highlighted the need to revamp the current procurement procedures being followed by the GPs.

In view of the criticality of the procurement function in the satisfactory implementation of the project; the mandate of the State - Decentralization of development program and strengthening of PRIs; and the current practices of procurement being followed by the GPs, this Manual seeks to present a Community Procurement Manual which is in conformity with the procurement guidelines and documents of the IFAD, the guidelines for Community driven procurement and the rules & procedures laid down by the State Government for procurements by GPs.


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1.6. Objectives of Community Procurement Manual

1.6.1. The principal objective of Community Procurement Manual is that all the concerned communities will elect to undertake their own

procurement and not to defer some of it to the Project authorities thereby exercising substantial decision-making authority in the selection

and implementation of participatory Watershed Management sub projects. The role of the Project authorities in context of Community

procurement under this Project –

is not that of executor & decision-maker, but that of a provider, which enables the community to make appropriate decision.

not to interfere in the actual process, even in the pretext of economy and quality control but to monitor the process of

procurement

1.6.2. Community Procurement process for procurements to be done through Gram Panchayats has been detailed in Annex1.6.2, while the

Community Process for procurements to be done through VPG, PG and LCs has been detailed in Annex-1.63.

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Annex-1.6.2: Community Procurement by PG, VPG & LC

Manual for Community Procurement through Vulnerable Producer Groups,

Producer Groups and Livelihood Collectives

Acronyms

AWP Annual Work Plan AUP Agribusiness Upscaling Plan DMU Divisional Management Unit FSIP Food Security Improvement Plan GoUK Government of Uttarakhand ILSP Integrated Livelihood Support Project IIP Irrigation and Infrastructure Plan JLG Joint Liability Group LC Livelihood Collective NIT Notice Inviting Tender PG Producer Group PC Procurement Committee PMR Project Management Report PO Procurement Order RFQ Request for Quotation SC Scheduled Caste SHG Self Help Group ST Scheduled Tribe ULIPH Uttarakhand Livelihoods Improvement Project for the Himalayas PMU Project Management Unit MoU Memorandum of Understanding PC Procurement Committee IFAD International Fund for Agricultural Development VPG Vulnerable Producer Group

Introduction:

This Manual provides simple, step-by-step instructions to the VPGs, PGs and LCs on how they will go about procuring the various goods, works & services required for the implementation of the project. It is intended to promote a consistent and uniform approach for planning, execution, reporting and monitoring of Project related procurements through application of rules and procedures defined herein the Manual thereby enhancing the capacity of the VPGs, PGs and LCs to undertake procurements to meet the Project needs.

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Chapter – 1: Glossary

DPM Office - The district level office of the UGVS headed by a Divisional Project Manager for the purpose of monitoring, co-ordination and implementation of the Project. Livelihood Collective – Livelihood Collective means a body established under Self-Reliant Co-operative Societies Act of Government of Uttarakhand or any other Statute with its main objects defined in Memorandum of Association and rules for administration set out in its Articles of Association. Procurement Committee - Procurement Committee means group of 3 or more persons duly authorised by the General Body to carry out procurement activities in accordance with rules set herein in the manual. Project – Project, the Integrated Livelihood Support Project financed by the IFAD and implemented by Government of Uttarakhand through UGVS. Divisional Project Office - the office of the DPM functioning in the Project Area within the jurisdiction of the District responsible for monitoring, co-ordination and implementation of the Project. Quorum – Quorum of the meeting of General Body of the Livelihood Collective means the quorum as defined in Self-Reliant Co-operative Societies Act of Government of Uttarakhand or any other Statute under which Livelihood Collective is incorporated. UGVS - The Uttarakhand Gramya Vikas Samiti, the Project Implementing Agency, of the Government of Uttarakhand for the implementation of the Component 1 : Food Security and Livelihood Enhancement of the Integrated Livelihood Support Project.

Chapter 2: Community Procurement under the Project

2.01 Introduction Under sub-component Food Security and scaling up of Food Security and Livelihood Enhancement Component, the Project will support crop and livestock production for food security, and also develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to producer groups (PG) and higher level organisations (federations or livelihood collectives - LC) formed by a number of PGs.

The Project will mobilise PGs each comprising of about 4 to 20 households with an interest to undertake similar basic livelihood activity (or activities) at the village level. To ensure full participation of the poorest, the project will also mobilize Vulnerable Producer Groups (VPG) comprising poorest households particularly those belonging to scheduled castes (SC). At least 20% of PGs will be VPGs. At least 50% of PG/VPG would be women‟s groups.

The project will engage Partner Agencies like NGOs/Development Sector

Organisations/ULIPH Federations to mobilize the PGs and VPGs. The Partner Agency will engage Livelihood Facilitators trained in implementing livelihood activities. These Facilitators will be responsible for PG and VPG mobilization at the village level. The PGs and VPGs will be federated at the cluster level to form Livelihood Collectives (LCs). LCs will be formed at the cluster level taking into account ease of access and possibility of up-scaling agricultural activities to achieve required economies of scale for establishing market linkages. The project, through the Partner Agency, will support the setting up an office for each LC and provide trained staff.

ILSP will finance activities related to mobilization of PGs and VPGs, and preparation and

implementation of Food Security Improvement Plans (FSIP).

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The next step in the livelihood enhancement process is to federate about 65 PGs/VPGs at the cluster level to form Livelihood Collective (LC). In some places suitable institutions may already exist (such as the SHG Federations formed by ULIPH) and can be supported straight away by the project. These LCs will be the focal points to establish input supply linkages and aggregate production for establishing market linkages.

LCs will be facilitated to expand cultivation of economically important crops and off-farm

activities at the individual household level. LCs will also build irrigation and water and soil conservation related infrastructure as required by their communities. As they develop their capacity, LCs will be facilitated by Partner Agencies to move into agribusiness and establish linkages with buyers. LCs may also take up initiatives in the non-farm sector, such as community tourism. To provide input and output services for their members, LCs may set up and operate Input-Output Centres on the pattern that have been established by ULIP Federations.

The LC will draw up an Agribusiness Up-scaling Plan (AUP), which will both consolidate and up-scale the FSIP of its member PG/VPG, develop more economically important crops, and build market linkages. The project will provide LCs with financial support for two years to prepare a plan and implement a set of livelihood up-scaling and agribusiness activities. This may also be supported via bank loans and investment enabled through the Livelihood Finance component. Additional funds will be available for irrigation development and for soil and water conservation – although the scope of this work will be very much less than that undertaken by watershed management projects.

2.02 Procurement needs at VPG/PG and LC level

PG/VPG members will be primarily engaged in farm and non-farm activities as detailed out in

the FSIP. The quantum of support to VPG/PG from Project will mainly be in the form of input

supply such as seeds, improved agricultural tools, beehive unit, fertiliser (like vermi) & bio

pesticides and construction & structures like vermi compost pit, sheds, cattle feeding trough,

poly house, LDPE tank etc under equitable contribution approach. Project support in the form of

grant will be provided to PG/VPG in exceptional circumstances only after considering the

timeliness and local availability factor without compromising with the quality and rates of goods

and services to be procured.

LCs will carry out various activities like input supply to community under Agribusiness Up-

scaling Plan and minor construction activities under Irrigation and Infrastructure Plan. It is

envisaged that the LCs will procure goods, works & services in the following sectors that can be

broadly classified as under;

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Sl. No

Category Goods and Materials to support Works & Services

1. 2. 3. 4. 5. 6.

Agriculture Horticulture Livestock Minor Irrigation Eco Tourism Infrastructure

Seed production, Traditional crops, Bee keeping, Organic farming, MAP (culinary herbs) Polly house, barbed wire, Polly tunnel, and polythene bags. Temperate fruits , Temperate Vegetable , vegetable seed production , spices , Floriculture Goat rearing, dairy, fisheries, Poultry, sheep rearing Cement, sand, coarse sand Furnishing Home stays Cement, sand, coarse sand

C

apacity B

uild

ing n

eeds

Technic

al serv

ices

The above table specifies a preliminary list of goods, work and services to be procured at the LC level. However, the UGVS may review and add or delete the items mentioned above as per the requirements during the implementation of the project.

2.03 Institutional Set-up for Community Procurement under the Project

The following entities are involved in the procurement of goods, works and services under the Project:

1. In case of VPG/PG a. General Body

General Body means group of 4 to 20 persons recognised as Joint Liability Group (JLG) or Self Help Group (SHG) and formed as per the established norms of Reserve Bank of India and eligible for bank linkages.

b. Procurement Committee Procurement Committee means group of 3 or more persons duly authorised by the General Body to carry out procurement activities in accordance with rules set herein in the manual.

2. In case of LC a. General Body

General Body means a body established under Self-Reliant Co-operative Societies Act of Government of Uttarakhand or any other Statute with its main objects defined in Memorandum of Association and rules for administration set out in its Articles of Association.

b. Board of Directors „Board of Directors‟ means group of persons elected by the General Body authorised to take administrative decisions and carry out such activities to attain the objectives as set out in the Memorandum of Association and permissible as per the Statute under which LC has been incorporated.

c. Procurement Committee Procurement Committee means group of 5 or more persons duly authorised by the Board of Directors to carry out procurement activities in accordance with rules set herein in the manual. Procurement committee shall be formed value chain wise to broaden the participation of members of VPG/PG in the procurement processes related to activity undertaken by them.

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d. Divisional Project Manager/ Divisional Offices

Being the subordinate offices of the Project Management Unit (PMU) of UGVS at and within the District, these are responsible for the monitoring co-ordination and implementation of the project

Chapter 3: Procedures of Community Procurement under the Project

3.01 Introduction This chapter details the procedures to be followed for procurement of goods, works and services by the VPG/PG and LC implementing the Project.

3.02 Authority for Procurement The authority for procurement emanates from the approved Annual Work Plan and Budget and its quarterly components, the Memorandum of Understanding entered into by the VPG/PG and LC with the DPM that includes the Procurement Plans. The goods, works and services to be procured under the Project should be only those that are included in the said documents and technical sanction whereof have been obtained as prescribed. In case of any digression, prior approval of the Competent Authority at the Project Level should be obtained.

3.03 Constitution of the Procurement Committee

1. In case of VPG/PG For the administration and execution of the procurement process and to assist the VPG/PG, General Body shall constitute a Procurement Committee (PC) with minimum 3 members. The PC would function under the instructions of the General Body. Livelihood Facilitator of the project will be the Secretary of the Committee and will assist in maintaining records related to the procurement process.

2. In case of LC a. For the administration and execution of the procurement process and to assist the

LC, Board of Directors shall constitute value chain wise Procurement Committee (PC). The PC would function under the instructions of the Board of Directors. The membership of the PC would be as under –

i. The Chairperson of the Board of Directors ii. Four other members selected by the Board of Directors subject to:

Such member should be member of the PG that is engaged in activity related to the Value Chain for which procurements are to be carried out.

At least two members of the Committee should be woman.

At least one member of the committee should be from SC/ST/BC category (subject to availability)

iii. The Chairperson of the Board of Directors should be the Chairperson of the Committee.

The membership would be on a rotational basis and would be reconstituted every year as per the procedure above. The quorum of the PC would be minimum three members. All decisions would be by simple majority of the members present and voting.

b. Livelihood Coordinator of the Project would be the Secretary of the PC. The functions of the Secretary vis-à-vis procurement would be inter alia -

Issue of receipts for sale of tender documents;

Receiving of tenders/quotations;

Providing information to the prospective bidders;

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Maintaining records regarding the activities of the PC.

The Accounts Assistant shall assist the Livelihood Coordinator in performing the aforesaid functions.

3.04 Delegation of Powers for Procurement

The power for approving the procurement of goods, works & services are vested in the following

authorities:

Single procurement up to Rs. 5,000 should be made with the approval of the Chairperson of the General Body in case of VPG/PG and Chairperson of the Board of Directors in case of LC.

Single procurement above Rs. 5,000 would require the approval of the General Body in case of VPG and PG and the Board of Directors in case of LC.

3.05 Procurement Plans

Each PG/VPG would prepare a three year Master Procurement Plan on the basis of Food Security Improvement Plan (FSIP). Similarly in case of LC, a three year Master Procurement Plan on the basis of Agribusiness Upscaling Pan (AUP) and Irrigation and Infrastructure Plan (IIP) should be prepared. This would form part of the Memorandum of Understanding between Project and LC. A detailed Annual Procurement Plan shall also be prepared, sub – divided into quarterly plans, corresponding with the AWP. The Procurement Plans so prepared would be approved along with the AWPB of the Project at the forums prescribed and within the time schedule stipulated in the Project Implementation Manual. The PC shall draft the Procurements Plans. The Livelihood Coordinator will be the key facilitator. He/She would provide project related information to the VPG/PG and LCs, facilitate procurement planning and provide technical guidance and oversight during implementation. The Master Procurement Plan shall summarise the procurements emanating from the activities defined in the AUP and IIP. The Annual Procurement Plans shall detail inter alia the goods, works or services to be procured, the quarterly procurement schedule and proposed procurement methods for each of the activity defined in the AWP. The goods, works or services, which could not be procured in the planned quarter, should be included in the procurement plan of the succeeding quarter stating therein the reasons thereof. In the eventuality, the procurement gets postponed to the next year, the same shall be included in the Annual Procurement Plan for that year and approval obtained along with the AWP.

3.06 Linkages with Project Authorities

Master Procurement Plan, as approved by the General Body of the VPG/PG, shall be submitted to the DPM for its approval. Master Procurement Plan, as approved by the Board of Directors of LC , shall be submitted to the DPM for its approval.

Annual Procurement Plan, as approved by the General Body of the VPG/PG, shall be submitted to the DPM through LC / Partner Agency for its approval along with Annual Work Plan. Annual Procurement Plan, as approved by the Board of Directors of LC , shall be submitted to the DPM for its approval along with Annual Work Plan.

Technical sanction is to be obtained before initiation of any activity. In case of variation i.e. the actual price exceeds the technical sanction limit; approval would be obtained from the Competent Authority under the Project.

The DPM would prepare a Yellow Page Directory containing the database of suppliers and the items dealt with by them. It is expected that the VPG/PGs and LCs would make use of this Directory during procurements.

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All contracts for procurement of goods, works or labour supply estimated to cost above Rs. 1,00,000.00 (Rupees One lacs only ) only shall be subject to prior review by the concerned DPM Office or its authorised representative.

All contracts for procurement of consultant services estimated to cost above Rs. 45,000.00 (Rupees Forty five thousand) only shall be subject to prior review by the concerned DPM Office or its authorised representative.

Periodic Procurement Management Reports shall be submitted to the DPM/District Project Office.

3.07 Methods of Procurement

The PG/VPG and the LC shall proceed with the procurement of goods, works and services in an

economic, efficient and transparent manner, through the following procurement methods prescribed.

The selection of the method depends upon the entity implementing the work/activity, nature and

value of the procurement, and following procedure should be followed.

Off - the - shelf Procurement

Procurement through quotations

Direct Contracting

Limited Tender Enquiry

Advertised Tendering Given the administrative capabilities and quantum of norms involved in procurement, VPG/PGs are

eligible to carry out procurement through Off-the-shelf Procurement and Procurement through

quotations only within the limits specified therein.

The VPG/PG or the LC should ensure that the beneficiary contribution stipulated to be received as

per the technical sanction of the activity shall be collected and utilised/deposited as per sanction

given.

3.09 Off - the - shelf Procurement (i) When to be applied - This method shall be applied to -

(a) each procurement of goods up to Rs. 15,000 (Rupees Fifteen thousand five hundred) only;

(b) each procurement of works up to Rs. 15,000 (Rupees Fifteen thousand) only; and (c) Each procurement of consultancy services of PG/VPGHGs or LC for training,

demonstration etc.

(ii) Activities involved - The VPG/PG or the LC shall authorise procurement committee to make such procurements. Such committee shall procure the items as per specifications at the lowest possible rates.

(iii) Prior Review by the Project - Each contract for consultancy service estimated to exceed Rs. 45000.00 (Rupees Forty five thousand) only should be reviewed and approved by the concerned DPM Office or its authorised representative before its award, not later than 15 days of receipt of the documents relating to the proposed procurement.

3.10 Procurement through Quotations

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(i) When to be applied - This method shall be applied to --

(a) each procurement of goods exceeding Rs. 15,000 and up to Rs. 1,00,000 (Rupees One lacs only); and

(b) Each procurement of works exceeding Rs. 15,000 and up to Rs. 1,00,000 (Rupees One lacs only).

(ii) Method for obtaining Quotations - Quotations/rates can be obtained through market survey

and/or by issuing Requests for Quotations to the parties listed in the Yellow Page Directory. A

minimum of three quotations should be obtained.

(iii) Activities involved - The following activities are involved in this method of procurement.

The VPG/PG or the LC shall authorise the PC/ to conduct a market survey and/or issue Request for Quotations (RFQ) for obtaining sealed quotations/rates within one week of the technical sanction. The Chairperson of the PC shall sign the RFQ. The RFQ includes the description of the requirements, the last date and time for submission and the validity period. Quotations can be submitted either by post or in person on any day till the last date and time approved by PC.

The sealed quotations received shall be opened by the PC and shall be initialled by all the members of the PC present in the meeting. The Secretary/Accounts Assistant shall then prepare the Evaluation Report based on the market survey and the quotations received, on the broad principles as per the criteria approved by the VPG/PG or LC and specified in the RFQ. The Evaluation Report contains the recommendations of the PC. In case the lowest bidder has not been recommended, reasons thereof should be recorded.

The PG/VPG or LC shall ensure that the quotations/rates are obtained within 5 to 15 days from the date of authorisation to conduct market survey and/or issue of RFQ depending on the value of the procurement, distance from the nearest market where the supplier/service provider may be located etc. The evaluation should be completed and submitted for approval and recommendation within 3 days after the last date for conducting market survey and/or submission of RFQ.

Thereafter, the Evaluation Report shall be placed before the General Body of VPG/PG or Board of Directors of LC for final approval. The VPG/PG or the LC will then issue its decision for procurement. In case the lowest bidder has not been selected, reasons should be recorded and order placed on the next lowest bidder.

The VPG/PG or the LC shall then proceed to issue the Procurement Order (PO) signed by the Chairperson within 2 days of its decision.

3.11 Direct Contracting

In case of procurement of certain items, the procedures detailed above, if applied, may not give the

desired results. In such cases, it is advisable to enter into Direct Contracting for procurement. This

section explains the situation in which this method should be applied. However, it should be clearly

understood that this method should not be applied extensively, but only in the situation and in the

manner prescribed.

(i) Goods of highly technical nature – Certain goods required by the LC would be of a highly technical nature requiring quality assurance. Such items valued up to Rs. 4,50,000.00 (Rupees four

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lacs fifty thousand) only shall be procured from established suppliers as per the technical specifications provided by the Project. Such items include the following –

Description Source of Procurement

Plant saplings and Seeds Registered Nurseries / Registered shops

Bio- Agents , Bio-Fertilisers , Medicines

and Vaccines

Approved government agency

Bulls and Semen Uttaranchal Livestock Development Board

(ii) Extension of Contract- The existing contract for the procurement of goods, works or services, awarded in accordance with any of the prescribed procedures, may need to be extended, say due to additional requirements. The contract may be recommended for extension by the Procurement Committee if it is satisfied that no advantage can be obtained by further competition that the prices on the extended procurement are reasonable and the party has satisfactorily executed the existing contract.

(iii) Spare Parts/Accessories - Spare parts or other accessories, compatible with the existing equipment/goods, may be procured from the original supplier.

(iv) Proprietary Items - The required goods, services and works are proprietary and available from only one source.

(v) Rate Contract by Director of Industries (DI) & Directorate General of Supplies & Disposal (DGS&D) – The DI and DGS&D enter into Rate Contract Agreement with various parties. It is prescribed that, to the maximum extent possible, the LCs should procure items manufactured by the registered firms and no tendering is required. The LCs may enter into direct contract with these firms considering the timely availability of the goods and transportation costs. Alternately, the rates of these firms can be considered as one of the quotations.

3.12 Limited Tender Enquiry (i). When to be applied - This method shall be applied to --

(a) each procurement of goods exceeding Rs. 1,00,000 and up to Rs. 10,00,000 (Rupees Ten lacs only); and

(b) Each procurement of works exceeding Rs. 1,00,000 and up to Rs. 10,00,000 (Rupees Ten lacs) only.

The following activities are involved in this method of procurement.

Copy of the bidding document should be sent directly by speed post/registered

post/courier/e-mail to more than three firms which are born on the list of registered

suppliers/contractors for the goods/works in question, so as to ensure that minimum three

bids are received. Further, web based publicity should be given for a limited tender.

It should be ensured that maximum possible approved suppliers/contractors are identified

to obtain more responsive bids on competitive basis. To identify such

suppliers/contractors, the mechanism of advertisement, publications in high circulation

national newspaper and different web sites of concerned suppliers/contractors may be

used.

For rest of the process follow the steps described in Para 3.13.

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3.13 Advertised Tendering (i). When to be applied - This method shall be applied to --

(c) each procurement of goods exceeding Rs. 10,00,000 (Rupees Ten lacs ) only; and (d) Each procurement of works exceeding Rs. 10,00,000 (Rupees Ten lacs ) only.

(ii) Activities involved in Tendering - The following activities are involved in this method of

procurement.

Preparation of Tender Documents

Prior Review by Project

Advertisement/Dispatch/Display of Notice Inviting Tender (NIT)

Issue of Tender Documents

Submission of Tenders

Public opening of Tenders

Evaluation of Tenders

Post Review by Project

Final Selection and Approval

Award of Contract

Preparation of Tender Documents – The tender documents are the means of

communication between the tenderer and the prospective suppliers/service providers and

they should be properly drafted and be unambiguous. The tender documents shall furnish

all the information necessary for the prospective bidder to prepare a tender for the goods,

works & services intended to be procured. While the text of these documents may vary with

the size and nature of the proposed tender package and contract, they generally include the

following information.

NIT

Conditions of the contract - scope of work, goods to be supplied, rights and obligations of the LCs and the Supplier or contractor

Description of goods/services or Bill of Quantities

Specifications and drawings

Delivery time or schedule of completion

Schedule of payments

Terms of transit insurance, if required

Validity period of the Tender

Minimum performance requirements, including performance security

Location of the goods/work/services to be supplied/provided

Evaluation and selection criteria

Form of contract

The Livelihood Co-ordinator would prepare the tender documents in consultation with the

Procurement Committee as per the approved estimates of the activity. The latter would then

place the documents before the LC for its approval within one week of the technical

sanction.

Prior Review by Project – The LC would then immediately forward the tender documents to

the concerned DPM Office or its authorised representative for its comments and approval.

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Modifications if any, conveyed shall be incorporated in the documents. The concerned DPM

or its authorised representative should convey its approval/comments in writing to the LC

not later than 15 days after the receipt of the documents.

Advertisement/Dispatch/Display of NIT – The objective of the NIT is to procure at the best

price for the desired quality and includes description of the requirements, relevant dates for

purchase, submission and opening of tenders, cost of the documents etc. The bidding

period, i.e, the time allowed for the reparation and submission of tenders should be 15 to 30

days from the date of commencement for sale of documents. The Chairperson of the LC

shall sign the NIT.

The NIT should be adequately publicised within one week of receipt of approval/comments

from the Project authorities through the following medium.

Advertisement in the local/regional newspapers;

Display on the notice boards of the LC and the Divisional Project Office;

Dispatch to the parties listed in the Yellow Page Directory.

Issue of Tender Documents – The tender document shall be signed by the Chairperson of

the LC before its issue to the prospective bidder. The issue of tender documents should

commence from the date mentioned in the NIT. If a fee is to be charged for the tender

documents, it should not be so high as to discourage the prospective bidders. The issue

should stop on the date and time mentioned in the NIT. The Accounts Assistant would

control the issue/sale of the documents including issue of receipts and recording of the sale

of documents. At the close of the issue/sale, the Accounts Assistant would inform the PC of

the number of documents sold and the names of the parties. Cash/cheques received

against the sale of tender documents should be deposited in the bank account of the Project

on the same/next day.

Submission of tenders – All prospective bidders should be provided the same information

and should get equal opportunity to obtain additional information, on a timely basis, so as to

enable them to prepare appropriate tenders. The information shall be provided by any

member of the PC or by the Livelihood Coordinator/Accounts Assistant. The request for

additional information should be made in writing. The response to such requests should be

discussed by the PC and communicated in writing to each recipient of the original tender

document in sufficient time before the dead line for receipt of tenders. If necessary, the dead

line shall be extended.

In exceptional circumstances, the deadline for submission of tender may be required to be

extended. Such extension shall be authorised by the Board of Directors the

recommendation of the Procurement Committee.

The tenders shall be received at the address given in the NIT and shall be kept in the

custody of the PC. The bidders can submit the tenders through registered post or in person.

In the latter case, the Livelihood Coordinator/Accounts Assistant shall issue

acknowledgement of receipt of the tenders.

Public opening of tenders - The PC shall open the tenders at the place and time specified in

the NIT. The date for the opening of tenders should preferably be the same as for the

deadline for receipt of tenders and the time of opening should be immediately thereafter.

The tenders shall be opened in the presence of the bidders or their representatives, who

choose to be present. The name of the bidder and the total amount of each tender shall be

read allowed. Tenders received after the time stipulated in the NIT would not be opened and

read out and not considered.

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All tenders received should be recorded in a register stating therein the name of the bidder,

whether tender opened or not, total number of the bids opened and attendance of persons

present. The bidders shall not be requested or permitted to correct/modify/revise the tenders

once they have been opened. All members of the PC present shall initial all the pages of the

tenders and the register. The documents would be kept under the custody of the Livelihood

Coordinator.

Confidentiality - After the public opening of the tenders information relating to the

examination, clarification, evaluation of bids and recommendations concerning award of

contract shall not be disclosed to the bidders or other persons not official concerned with the

process until the successful bidder is notified of the award.

Examination of Tenders - The PC would ascertain whether the tenders

have been properly signed;

are accompanied by required security, if any;

are substantially responsive to the tender documents i.e. it does not contain material deviations or reservations to the terms, conditions and specifications;

are otherwise generally in order.

If a tender is not substantially responsive it shall not be considered any further for

evaluation. The bidder shall not be permitted to correct or withdraw such material deviations

or reservations once the tender has been opened.

Evaluation of Tenders - The PC shall prepare a detailed report on the evaluation and

comparison of tenders, ascertain the bidder with the Lowest Evaluated Cost and make out

its recommendation, clearly specifying the reasons on which the recommendation is based.

This report duly signed by all the members of PC present shall then be shall be placed

before the Board of Directors at its meeting for consideration and approval within one week

of recommendation by PC.

To ensure uniform evaluation across the tenders, the following points should be considered

during evaluation.

The tender price read out at the public opening shall be adjusted to correct any arithmetical errors or make adjustments for any quantifiable non-material deviations or reservations.

Clarifications or Alterations of Tenders – The bidders should not be requested or permitted to alter/revise their tenders after the deadline fixed for the receipt of tenders. The Procurement Committee may, if required, seek clarifications, in writing, from the bidders to facilitate evaluation of tenders, but shall not permit the bidders to change the substance or price of their tenders. The clarification from the bidders should be in writing.

Pricing - The comparison of the tender amount should be based on all the components specified in the tender documents to ensure uniformity. For instance, if evaluation is based on ex-works/ex-factory cost, then this basis should be similar for all tenders. Or where transportation, installation or similar costs are part of the price, then it should be included in all prices being compared. If any component has not been included in the tender price and cost whereof cannot be reasonably arrived at, the tender should declared “non – responsive”.

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Responsiveness – The tenders should be evaluated to ascertain that they substantially comply with terms and conditions specified in the tender documents. For instance, sufficient information is not available with respect to the experience of the bidder or, if financial details have been asked for, these have not been appropriately provided to facilitate evaluation. The PC shall also determine whether the bidders have the capability and resources to effectively execute the contract. In such circumstances, the PC shall declare the tender as “substantially non – responsive” and hence reject the tender.

Rejection of all tenders – Circumstances may arise where all the tenders are liable for rejections due to lack of effective competition or all the tenders are not substantially responsive. Based on the recommendation of the PC, the Board of Directors may decide to reject all the tenders. If the tenders are rejected due to the aforesaid reasons, the PC should resort to re-tendering.

However, caution need be exercised to ensure that all tenders should not be rejected

solely on the basis that the substantially exceed their estimates. Such action should be

placed in the next General Body.

Post Review by Project – The tender evaluation report shall after the approval by Board of

Directors, be submitted to the concerned DPM Office or its authorised representative for

obtaining its comments or no objection/approval. The Project authorities are expected to

review the process to ensure that there are no material deviations from extant procurement

guidelines, and due care has been made in the evaluation. The comments or no –

objection/approval should be given by the Project authorities in writing not later than 15 days

after the receipt of the Report.

Award of Contract - After receiving the no objection/approval of the Project authorities, the

LC shall then proceed to award the contract to the selected party. The LC shall issue a

Letter of Acceptance of Tender for signing of the contract and to proceed with the work or

sign a contract for procurement of goods and issue the Procurement Order within two days

of receipt of approval from the Project authorities. The bidder shall not be required to

undertake responsibilities for work which have not been stipulated in the tender documents

or otherwise to modify the tender as originally submitted.

Chapter 4: Administration and Monitoring System

4.01 Introduction This Chapter outlines the Administration and Monitoring System for procurement under the Project. The LCs are expected to implement the system prescribed hereinafter for efficient administration and monitoring of contracts/procurement orders and to ensure that the procedures prescribed for procurement have been followed.

4.02 Recording The LCs shall maintain the following three registers for recording at the pre-award and post-award stages.

Tender and Procurement Registers – The objective of these Registers is to capture and monitor the activities involved in the procurement process. The Register shall have

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separate folio for each procurement through tender, quotations and shall contain the projected and actual date of performing the various stages of the process.

Contract Register – This Register would capture the performance of the contract or the Procurement Order. It would enable monitoring the status of each contract with respect to the contract value, amount of invoices and amount paid till the completion of the contract. The contract details shall be captured from the Tender and Procurement Registers and the actual payment details from the financial records.

The Livelihood Coordinator/Accounts Assistant, or any member of the LC so authorised by the Board of Directors, shall prepare these registers. The PC and the Board of Directors shall periodically review the Registers as part of their monitoring and control function and, based on the review, shall issue instructions in case of any slippages. These Registers shall form the basis for preparation of the Procurement Management Reports (PMR).

4.03 Procurement Management Reports (i) The PMRs are a “walkthrough” of the process of procurement and would enable the Project Management to monitor the status of the major procurements and whether the provisions of this Manual are being complied with. The LCs shall prepare, in the manner prescribed, the PMRs as part of the Management Information System. The PMRs would be prepared on quarterly basis. The Livelihood Coordinator/Accounts Assistant shall prepare the PMR, reviewed by the PC and then placed before the Board of Directors at its meeting. The Chairperson and the Secretary of the LC shall sign the PMR. Thereafter, the PMR shall be directed to the DMU by the 10

th of the next month.

(ii) The following three reports shall be prepared from the records and other documents relating to procurement. The PMRs shall be prepared in three copies – one copy each would be retained by the Board of Directors and the PC and one copy would be directed to the DMU.

4.04 Internal Controls The following internal controls are recommended in the procurement process.

Any decision taken on procurement shall be taken in a meeting of the Board of Directors. If due to emergent circumstances, the Chairperson takes a decision, post facto approval shall be taken at the next meeting of the Board of Directors.

The Board of Directors shall deal with matters relating to procurement only after the PC has forwarded its recommendations thereon.

Provision has been made, in the procurement process, for revision of dates (such as last date of sale or date of opening). It should be ensured that this provision is used sparingly, with adequate reasons, and not more than twice.

The Receipt Book for sale of tender forms and the Procurement Order shall be serially numbered.

The PC shall ensure that the cash/cheques received on sale are deposited in the bank account of the Project by the Panchayat Secretary on the same/next day.

The Board of Directors and the PC shall periodically conduct physical verification of material kept in central stores and reconcile these with the store records.

4.05 Audit

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(i) The verification of documents relating to procurement of goods, works and services and proper implementation of the Procurement Manual in this regard along with verification of the records prescribed in the Procurement Manual shall be carried out with annual audit of accounts by firms of Chartered Accountants appointed by the Project.

(ii) It would be the responsibility of the Board of Directors and the PC to facilitate the Audit and ensure that the books and records relating to procurement are produced before the Auditors. It would also be their duty to effect compliance to the audit findings timely and completely.

4.07 Amendments in the Community Procurement Manual

During the course of the implementation of the Project, there may arise a situation requiring

amendment to this Manual to ensure smooth procurement and to remove any hindrances. In

such an eventuality, a Proposal for Amendment can be moved by the Project or by a VPG/PG or

LC, giving the nature and reasons thereof. The proposal shall be examined by the Project

Director ( PD) and if found reasonable, shall be placed before the Project Steering Committee

and the Project Management Committee for its approval. The amendment shall be forwarded to

the IFAD for its approval. On approval by the IFAD, the amendment shall be incorporated in the

Manual and disseminated to all the VPG/PG/LC who shall likewise include the amendment in

their copy of the Manual.

4.08 Capacity Building Measures

For the effective implementation of the Community Procurement Manual at the PG/VPG/LC level, the Project should initiate Capacity Building measures for imparting training to the LCs on procurement and in the use of this Manual.

Training may be conducted initially by the PMU where the Project staff shall be acclimatised about the concept of Community Procurement, the methods of procurement, the Procurement Administration & Monitoring System and the procedures and responsibilities prescribed in this Manual so as to promote effective supervision and monitoring as also cater to the needs of the new decentralised implementation arrangements.

PMU may hire the services of qualified and experienced individuals/NGOs/ Consultants or other agencies to conduct a sustained Information, Education and Communication campaign to increase the general awareness in the communities about the Project, terms of participation and overall transparency. Services of such agencies may also be hired to provide technical assistance, training to the functionaries of the VPG/PG/LC to build/strengthen their capacity in the use of the Community Procurement Manual including the formats.

Extensive training should be given to the Livelihood Coordinator, Livelihood Facilitator and Accounts Assistant on the procurement procedures stipulated in the Manual so that they can guide and assist the LCs in their implementation.

Refresher training should be organised for the VPG/PG/LCs periodically throughout the implementation of the Project.

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Annex-1.6.3: Community Procurement through GP (WMD)

I. Principals of Community Procurement

1.1. Tenets of Good Community Procurement

Sound procurement policies and practices are among the essential elements of good governance. Good practices reduce costs and produce timely results whereas poor practices may lead to waste and delays and are often the cause for inefficiency. The study on AAA in PRIs in Uttarakhand has revealed that currently the GPs are beset with the problem of unpredictable and inadequate release of funds coupled with the fact that the community is even unaware of the availability- quantum and source of funds. This has largely created a disincentive to effective procurement planning, limited exposure and awareness to procurement norms, lack of experience to know and understand the market and application of uncompetitive procedures resulting in procurements in small lots, difficulties in transportation specially in far flung areas, loss of economy and inefficiency in procurement.

However, Community Procurement can be used as an effective tool of community empowerment if it is supplemented by timely availability and prior knowledge of the sources of funds during a defined period of time and ensuring adherence to the basic tenets of good procurement viz. appropriate quality, sufficient quantity, exact timing, reasonability of rates and proper authority for procurement of goods works and services.

Application of these tenets may be ensured through the following procedures:

(i) Appropriate prescribed Quality: The ISI marked goods/materials should be procured, preferably from the authorised dealers. Further services of experienced contractors and skilled labourers should be used. The Community should select the suppliers/ contractors/skilled labours on the basis of prescribed procedures using standard formats. The Community should decide the specifications and brand names of the goods and quality of services required in its prescribed forum before procurement for ensuring appropriate quality of the goods/materials and services based on the job specifications.

(ii) Sufficient Quantity: The appropriateness of quantity of the goods/ materials to be procured

should be deliberated in the prescribed forum considering the requirements emanating from the work(s) to be undertaken individually or over a period of time monthly/quarterly etc; availability of and security at storage facilities; economies of scale, if any, on purchases in bulk; availability and cost of transportation; location of the prospective sellers/suppliers and any other issue specific to such goods/materials. Similarly, the services to be hired are invariably assessed and discussed at prescribed forum to identify the nature of service, the minimum qualifications, duration for which required etc.

(iii) Exact Timing: The Community in its appropriate forum decides the timing for procurement of

goods/materials and start date for activities. The decision regarding the date of commencement and completion takes into account the harvesting & monsoon seasons and social factors. The Community prepares, discusses and incorporates in its plans, the timing for procurement of goods based on the commencement of different activities. The timing for hiring of services of skilled personnel like plumbers, fitters, electricians, mechanics etc. are also discussed and finalised in advance.

(iv) Reasonability of Rates: To ensure the reasonability of rates, the annual plans and technical

sanctions of each activity to be undertaken therein serve as the benchmarks. The Community should then make actual procurement through the methods prescribed selecting not necessarily the lowest, but the most reasonable offer based on the requirements defined in the technical sanction of estimates.

(v) Proper Authorisation: The authority to procure goods, works and services is delegated to the

Community or its elected representatives. Appropriate delegation of authority for making procurements through the method prescribed and constitution of a Procurement Sub-

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Committee having representatives of the Community are some of the necessary steps taken to ensure that the community retains and exercises required authority for transparent procurement of goods and services.

1.2. Threats to Community Procurement:

(i) Extensive capacity building programs have to be undertaken for the Community and its functionaries to undertake complex responsibility of procurement. This process is cumbersome and there is a likelihood of loosing the focus during the initiatives taken for capacity building.

(ii) There is a marked apprehension among the project authorities on the capacity of the Community to procure economically and efficiently. Conversely, the apprehension of the Community that the project authorities are not willing to delegate and believe them is also equally damaging.

(iii) The concept of Community Procurement is more successful in a non-complex environment e.g. village with a small and homogeneous population and is yet to be tested for a complex situation with multiple villages and heterogeneous population.

(iv) Community Procurement may be restricted to Procurement by influential members of the community and the presence of heterogeneous population may lead to creation of groups of diversified interest.

(v) Possibilities of inflating the rates of labour and material. (vi) Disputes between the GPs and the village level committees may hamper the timely

procurements leading to delays and cost overruns.

Issues in the Present System of Procurement in GPs

• There is no clarity on the procedure of procurement. • The rules prescribed that all purchases over Rs. 50/- are to be procured through tenders. This

rule is archaic. • In actual practice all purchases are generally through obtaining three quotations. • Different thresholds have been communicated - some GPs have adopted the State Government

(SG) norms (direct contracting up to Rs. 2,500/-, obtaining quotations up to Rs. 15,000/- and tendering for higher value) while others have adopted the norms of direct contracting up to Rs. 7,500/- and obtaining quotations thereafter.

• There is, therefore, a need to device procurement norms for GPs considering their special conditions. There is no justification in imposing norms, which cannot be followed.

• Procurement is made in small lots due to lack of space and difficulties in transportation in far-lung GPs.

• It cannot be ruled out that procurement is broken up into small lots within the threshold limit to avoid tendering. Considering the nature and size of procurement where, in most of the items, tendering may not be practically feasible, the SG may consider prescribing norms of procurement suitable to the GPs rather than enforcing the SG rules.

• Procurement and all its related activities are presently concentrated in the hand of the Pradhan and/or the Secretary. Members of the respective Committee are generally not involved at any stage of the process.

(Source: Study on AAA in PRIs in UA)

II. Community Procurement under the Project

2.1 Introduction

For achieving the overall objectives of the Project, activities under the following three key components have been envisaged.

(i) Participatory Watershed Development and Management

• Promotion of social mobilisation and community driven decision making

Key activities under this sub-component would include mobilisation of communities, dissemination of key information regarding the project, participatory watershed planning, at the village level with the involvement of all the stakeholders and using the budget envelope as the basis.

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• Watershed Treatments

Under this sub-component, a budget envelope will be provided to each Gram Panchayat (and revenue village within that) based on the total potential treatable area within the GP. The Communities will, based on this budget envelope, prioritise, implement, operate and maintain village watershed plans. Communities will be required to contribute towards the cost of the sub projects.

(ii) Food Security Enhancement Support

• Rain-fed Agriculture and Agribusiness System Improvement and Support to PGs

This is designed to introduce improved technologies and practices for agriculture, horticulture and silvi-pastoral treatments through demonstration. The assistance will be given in Grant.

• Value addition and marketing supports

Under this sub-component, the project will provide an agri business pilot fund that will be used to fund consultancies and studies.

•

(iii) Livelihood up-scaling Support

Promotion of Income Generation Activities (IGA) Support to VPGs

This is designed to finance small income generating micro enterprises for vulnerable groups (women, landless). These groups would be identified during the watershed planning process.

Support to LCs for Up-scaling the IGA activities-

This is designed to finance small livelihood collectives (federations among 8 to10 villages) for generating the linkages with markets for enterprises.

(iv) Institutional Strengthening

• Capacity Building of all tiers of PRIs and Local Community Institutions

Under this sub-component, the core administrative capacity in planning, budgeting, financial management, implementation and reporting would be strengthened for all tiers of panchayats (district, blocks & villages).

• Information, Education and Communication

This sub-component is designed to implement a strategy that identifies specific audiences and develops targeted messages to increase general awareness about the project, terms of participation and over all transparency.

• Project Coordination, Monitoring and Management

This will finance organisational change management initiatives to realign the Watershed Directorate to the new implementation arrangements and the increased role of PRIs.

2.2 Procurement needs at GP level

The activities to be undertaken by the GPs include construction of small works such as soil erosion control bunds, vegetative barriers, economic development activities such as agro-forestry, animal husbandry, orchard development, activities that will create and enhance livelihood opportunities and activities that will specifically target and benefit vulnerable groups. It is envisaged that the GPs will procure goods, works & services that can be broadly classified as under:

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Sl No Category Goods and Materials Works & Services

1 Forestry Chaff Cutter, Barbed/GI wire, angle, iron, seeds, plants, boulder and other local material, Sheets, Polythene bags, Eucalyptus poles, Seed, Seedlings.

Capacity Building needs Skilled and un-skilled labour for execution of works and supervision

2 Horticulture Horticulture tools, Polly house, barbed wire, sheets, seeds, plants, chemicals, poly-tunnel, poly-house and polythene bags.

3 Agriculture Crop seeds, Chemicals, sheets, material for organic farming, urea-molasses blocks, bio-pesticides, fertilizer and bio-fertiliser.

4 Soil Conservation Cement, barbed wire, boulder, local materials, GI wire and sheets, sand, stones.

5 Minor Irrigation Cement, sand, coarse sand, boulders, reinforcing steel.

6 Energy Conservation Bio-gas equipment, Chir pine briquetting machine and stoves, solar power equipment.

The above table specifies a preliminary list of goods, work and services to be procured at the GP level. However, the WMD may review and add or delete the items mentioned above as per the requirements during the implementation of the project.

2.3 Institutional Set-up for Community Procurement under the Project

The following entities are involved in the procurement of goods, works and services under the Project:

(i) Gram Sabha

Gram Sabha means a body established under Section 3 of the U.P. Panchayat Raj Act, 1947, as applicable to the State of Uttaranchal, consisting of persons registered in the electoral rolls relating to a village comprised within the area of a Gram Panchayat. It is the general body of the Gram Panchayat.

(ii) Gram Panchayat

Gram Panchayat means a body corporate constituted for every Panchayat area under section 12 of the U.P. Panchayat Raj Act, 1947 as applicable to the State of Uttarakhand. The Pradhan and the Up-Pradhan of the Gram Panchayat are the Chairperson and the Vice-Chairperson thereof. All members of the GP are directly elected representatives of the Gram Sabha.

(iii) Water and Watershed Committee (WWMC)

Being a Committee of the GP as defined in the Project Operational Manual, which shall be directly involved in the implementation of the Project and would execute, administer & monitor all procurements relating to the Project.

(iv) Procurement sub Committee (PC)

Being a sub-committee of the WWMC, which shall assist the WWMC in the execution, administration and monitoring of the procurement functions.

(v) Deputy Project Director (DPD)/Unit offices.

Being the subordinate offices of the WMD at and within the District, which are responsible for the monitoring co-ordination and implementation of the project.

The Institutional set up for Community Procurement under the Project is schematically represented below.

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Procurement relations

Procurement Process

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III. Procedures of Community Procurement under the Project

3. 1 Introduction

This chapter details the procedures to be followed for procurement of goods, works and services by the GP implementing the Project. The procedures are supplemented with formats of the documents to be used during procurement and also model agreements have been included. While the formats and models have been based on the World Bank norms, these have been suitably amended considering the nature and quantum of procurement to be undertaken by the GP and should be uniformly used by the GPs.

3.2 Authority for Procurement

The authority for procurement emanates from the approved GPWDP, AWP and its quarterly components, the Memorandum of Understanding entered into by the GP with the DPD that includes the Procurement Plans (see Project Operational Manual). The goods, works and services to be procured under the Project should be only those that are included in the said documents and technical sanction whereof have been obtained as prescribed. In case of any digression, prior approval of the authority prescribed in the Financial Manual for GPs should be obtained.

3.3 Constitution of the Procurement sub - Committee

(i) For the administration and execution of the procurement process and to assist the WWMC, each GP shall constitute a Procurement sub - Committee (PC). The PC would function under the instructions of the WWMC. The membership of the PC would be as under –

• The Gram Pradhan and one ward member of the GP, being a member of the WWMC, selected from amongst themselves in a meeting; and

• One member from each revenue village, selected by the Gram Sabha in its meeting, with minimum three members having at least one women representative and one SC/ST/BC representative.

• The Gram Pradhan shall be the Chairperson of the PC.

The membership would be on a rotational basis and would be reconstituted every year as per the procedure above. The quorum of the PC would be minimum three members with at least one member each of the GP and the Community. All decisions would be by simple majority of the members present and voting.

(ii) The Panchayat Secretary would be the Secretary of the PC. The functions of the Panchayat Secretary vis-à-vis procurement would be inter alia -

• Issue of receipts for sale of tender documents; • Receiving of tenders/quotations; • Providing information to the prospective bidders; • Maintaining records regarding the activities of the PC.

The Account Assistant shall assist the Panchayat Secretary in performing the aforesaid

functions.

3.4 Delegation of Powers for Procurement

The power for approving the procurement of goods, works & services are vested in the following authorities:

• Single procurement up to Rs. 2,500 should be made with the approval of the WWMC. • Single procurement above Rs. 2,500 would require the approval of the GP, subject to the

recommendation of the WWMC.

3.5 Procurement Plans

(i) Each GP would prepare a three year Master Procurement Plan, within the overall GPWDP, which would form part of the Memorandum of Understanding. A detailed Annual Procurement Plan shall also be prepared, sub – divided into quarterly plans, corresponding with the AWP. The Procurement Plans so prepared would be approved along with the GPWDP/AWP at the forums prescribed and within the time schedule stipulated in the Project Operational Manual.

(ii) The PC, in consultation with the WWMC, shall draft the Procurements Plans. The MDT representative of the Project /PNGO will be the key facilitator. He/She would provide project related

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information to the GPs and RVCs, facilitate procurement planning and provide technical guidance and oversight during implementation. The Master Procurement Plan shall summarise the procurements emanating from the activities defined in the GPWDP. The Annual Procurement Plans shall detail inter alia the goods, works or services to be procured, the quarterly procurement schedule and proposed procurement methods for each of the activity defined in the AWP.

(iii) The goods, works or services, which could not be procured in the planned quarter, should be included in the procurement plan of the succeeding quarter stating therein the reasons thereof. In the eventuality, the procurement gets postponed to the next year, the same shall be included in the Annual Procurement Plan for that year and approval obtained along with the AWP.

3.6 Execution of Work

(i) The WWMC will have the right to appoint anyone of the following Implementers for the implementation of the work:

• The Gram Panchayat • The Individual Farmer (Beneficiary) for the work to be executed on his individual land.

(Individual will work as a contractor, in the case.) • RVC/ VP /User Group/SHG may be engaged for the activities to be implemented on

common/ community/ village assets or on individual land or asset, should the beneficiary have no objection to this arrangement. Revenue Village Committee will also work as a contractor.

For the implementation and execution of the activities envisaged under the Project the GPs shall adopt the under mentioned Order of preference before embarking on the application of the various methods of procurement stipulated in the Manual.

• The First Right of implementation of each work under the project rests with village-level entities such as the, RVC, User Group, SHG or the Van Panchayat, individual farmer. If these options are not available then the GP itself may decide to execute the works. If all the above options do not work out only then the works will be awarded to independent contractors, However the WWMC will have to obtain in writing their inability to undertake the project activities before awarding the contract for the said work to an independent contractor.

• In case of special technical requirements for which the above mentioned village level

institutions do not posses adequate capacities, then the WWMC may outsource a contractor having past experience in specialized technical works. Such a Contractor will be appointed only after the Beneficiaries have deposited the full amount of their share of the cost of the said activity in advance with the Gram Panchayat.

3.7 Linkages with Project Authorities

• Master Procurement Plan, as approved by the Gram Sabha, shall be submitted to the DPD for its approval along with the GPWDP.

• Annual Procurement Plan, as approved by the Gram Sabha, shall be submitted to the DPD for its approval along with Annual Work Plan.

• Technical sanction to be obtained before initiation of any activity. In case of variation i.e. the actual price exceeds the technical sanction limit, approval would be obtained as per existing WMD norms (see Financial Manual for GPs).

• The DPD would prepare a Yellow Page Directory containing the database of suppliers and the items dealt with by them. It is expected that the GPs would make use of this Directory during procurements.

• All contracts for procurement of goods, works or labour supply estimated to cost above Rs. 13,50,000.00 (Rupees Thirteen lacs fifty thousand) only shall be subject to prior review by the concerned DPD Office or its authorized representative.

• All contracts for procurement of consultant services estimated to cost above Rs. 45,000.00 (Rupees Forty five thousand) only shall be subject to prior review by the concerned DPD Office or its authorised representative.

• Periodic Procurement Management Reports shall be submitted to the DPD/PUO.

3.8 Methods of Procurement

(i) The GP shall after the identification of the implementer as per para 3.06 proceed with the procurement of goods, works and services in an economic, efficient and transparent manner, through the following procurement methods prescribed. The selection of the method depends

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upon the entity implementing the work/activity, nature and value of the procurement, and the GPs would follow these procedures.

• Off - the - shelf Procurement (para 3.9) • Procurement through quotations (para 3.10) • Direct Contracting (para 3.11) • Tendering (3.12)

(ii) The GP should ensure that the beneficiary contribution stipulated to be received as per the technical sanction of the activity shall be collected as per the stipulations given in the Project Operational Manual.

3.9 Off - the - shelf Procurement

(i) When to be applied - This method shall be applied to –

(a) each procurement of goods up to Rs. 22,500 (Rupees Twenty two thousand five hundred) only;

(a) each procurement of works up to Rs. 90,000 (Rupees Ninety thousand) only; and (b) each procurement of consultancy services of SHGs or other User Groups, individuals for

training, demonstration etc.

(ii) Activities involved - The WWMC shall authorise any of its members or any other person to make such procurements. Such person shall procure the items as per specifications at the lowest possible rates.

(iii) Prior Review by the Project - Each contract for consultancy service estimated to exceed Rs. 45000 (Rupees Forty five thousand) only should be reviewed and approved by the concerned DPD Office or its authorised representative before its award, not later than 15 days of receipt of the documents relating to the proposed procurement.

3.10 Procurement through Quotations

(i) When to be applied - This method shall be applied to - (a) each procurement of goods exceeding Rs. 22,500 and up to Rs. 13,50,000 (Rupees

Thirteen lacs fifty thousand) only; and (b) each procurement of works exceeding Rs. 90,000 and up to Rs. 22,50,000 (Rupees

twenty two lacs fifty thousand) only. (ii) Method for obtaining Quotations - Quotations/rates can be obtained through market

survey and/or by issuing Requests for Quotations to the parties listed in the Yellow Page Directory. A minimum of three quotations should be obtained.

(iii) Activities involved - The following activities are involved in this method of procurement.

a. The WWMC shall authorise the PC to conduct a market survey and/or issue Request for Quotations (RFQ) for obtaining sealed quotations/rates with one week of the technical sanction. The Chairperson of the WWMC shall sign the RFQ. The RFQ includes the description of the requirements, the last date and time for submission and the validity period. Quotations can be submitted either by post or in person on any day till the last date and time approved by WWMC.

b. The sealed quotations received shall be opened by the PC and shall be initialed by all

the members of the PC present in the meeting. The Panchayat Secretary/Accounts Assistant shall then prepare the Evaluation Report based on the market survey and the quotations received, on the broad principles given under Tendering procedure in para 4.11 as per the criteria approved by the WWMC and specified in the RFQ. The Evaluation Report contains the recommendations of the PC. In case the lowest bidder has not been recommended, reasons thereof should be recorded.

c. The WWMC shall ensure that the quotations/rates are obtained within 5 to 15 days

from the date it authorises the PC to conduct market survey and/or issue RFQ depending on the value of the procurement, distance from the nearest market where

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the supplier/service provider may be located etc. The evaluation should be completed and submitted before the WWMC for approval and recommendation within 3 days after the last date for conducting market survey and/or submission of RFQ.

d. Thereafter, the Evaluation Report shall be placed before the GP at their meeting for

final approval within one week of the approval of WWMC. Approval of the DPD or its authorised representative shall be obtained for works defined in para 3.10(iii)(f). The GP will then issue its decision for procurement. In case the lowest bidder has not been selected, reasons should be recorded and order placed on the next lowest bidder.

e. The GP shall then proceed to issue the Procurement Order (PO) signed by the

Pradhan within 2 days of its decision or the receipt of the approval from the Project. f. Prior Review by Project - each procurement of works exceeding Rs. 13,50,000 and

up to Rs. 22,50,000 shall be reviewed and approved by the DPD Office or its authorised representative before its award, not later than 15 days of the receipt of the evaluation report duly approved by the GP.

3.11 Direct Contracting In case of procurement of certain items, the procedures detailed above, if applied, may not give the desired results. In such cases, it is advisable to enter into Direct Contracting for procurement. This section explains the situation in which this method should be applied. However, it should be clearly understood that this method should not be applied extensively, but only in the situation and in the manner prescribed. (i) Goods of highly technical nature – Certain goods required by the GP would be of a highly technical nature requiring quality assurance. Such items valued up to Rs. 4,50,000 (Rupees four lacs fifty thousand) only shall be procured from established suppliers as per the technical specifications provided by the Project. Such items include the following –

Description Source of Procurement

Plant saplings and Seeds (Forestry, Agri, Horti) Registered Nurseries / Registered shops and approved government agency like- TDC, NABARD, Universities and Govt. Departments.

Bio- Agents, Bio-Fertilisers, fertilizers, Medicines and Vaccines and barbed wire.

Approved government agency, registered shops and other suppliers.

Bulls and Semen Uttaranchal Livestock Development Board, BAIF

(ii) Extension of Contract- The existing contract for the procurement of goods, works or services, awarded in accordance with any of the prescribed procedures, may need to be extended, say due to additional requirements. The contract may be recommended for extension by the WWMC if it is satisfied that no advantage can be obtained by further competition that the prices on the extended procurement are reasonable and the party has satisfactorily executed the existing contract.

(iii) Spare Parts/Accessories - Spare parts or other accessories, compatible with the existing equipment/goods, may be procured from the original supplier.

(iv) Proprietary Items - The required goods, services and works are proprietary and available from only one source.

(v) Panchayat Udyog – Two or more GPs can join together to set up a tiny manufacturing unit – Panchayat Udyog - as a society. The Government has mandated (GO 5038 – Ga/33-37/74 dated 11.07.1976) that, to the maximum extent possible, the GPs should procure items from the Panchayat Udyog manufactured by them e.g. loose tools, boxes etc.

(vi) Rate Contract by Director of Industries (DI) & Directorate General of Supplies & Disposal (DGS&D) – The DI and DGS&D enter into Rate Contract Agreement with various parties. It is prescribed that, to the maximum extent possible, the GPs should procure items manufactured by the registered firms and no tendering is required. The GPs may enter into direct contract with these firms

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considering the timely availability of the goods and transportation costs. Alternately, the rates of these firms can be considered as one of the quotations.

(vii) Contract with RVC/Van Panchayat/User Groups/SHG/Beneficiary – The GP can enter into a contract for execution of works valued up to Rs. 22,50,000 (Rupees twenty two lacs fifty thousand) only, with any of these entities by direct contracting as per guidelines given in the Project Operational Manual. In such a case, these entities shall execute the work in accordance with the Memorandum of Understanding signed with the GPs. The work shall be supervised and monitored for quality assurance as per the procedures given in the Financial Manual for GPs.

3.12 Tendering

(i). When to be applied - This method shall be applied to –

(a) each procurement of goods exceeding Rs.13,50,000 (Rupees thirteen lacs fifty thousand) only; and

(b) each procurement of works exceeding Rs. 22,50,000 (Rupees twenty two lacs fifty thousand) only.

(ii) Activities involved in Tendering - The following activities are involved in this method of procurement.

• Preparation of Tender Documents • Prior Review by Project • Advertisement/Dispatch/Display of Notice Inviting Tender (NIT) • Issue of Tender Documents • Submission of Tenders • Public opening of Tenders • Evaluation of Tenders • Post Review by Project • Final Selection and Approval • Award of Contract

a. Preparation of Tender Documents – The tender documents are the means of communication between the tenderer and the prospective suppliers/service providers and they should be properly drafted and be unambiguous. The tender documents shall furnish all the information necessary for the prospective bidder to prepare a tender for the goods, works & services intended to be procured. While the text of these documents may vary with the size and nature of the proposed tender package and contract, they generally include the following information.

• NIT • Conditions of the contract - scope of work, goods to be supplied, rights and • obligations of the GPs and the Supplier or contractor • Description of goods/services or Bill of Quantities • Specifications and drawings • Delivery time or schedule of completion • Schedule of payments • Terms of transit insurance, if required • Validity period of the Tender • Minimum performance requirements, including performance security • Location of the goods/work/services to be supplied/provided • Evaluation and selection criteria • Form of contract

The PC would prepare the tender documents in consultation with the WWMC as per the approved estimates of the activity (see Financial Manual for GPs). The latter would then place the documents before the GP for its approval within one week of the technical sanction.

b. Prior Review by Project – The GP would then immediately forward the tender documents to the concerned DPD Office or its authorised representative for its comments and approval. Modifications if any, conveyed shall be incorporated in the documents. The concerned DPD or its authorised representative should convey its approval/comments in writing to the GP not later than 15 days after the receipt of the documents.

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c. Advertisement/Dispatch/Display of NIT – The objective of the NIT is to procure at the best price for the desired quality and includes description of the requirements, relevant dates for purchase, submission and opening of tenders, cost of the documents etc. The bidding period, i. e. the time allowed for the preparation and submission of tenders should be 15 to 30 days from the date of commencement for sale of documents. The Chairperson of the WWMC shall sign the NIT.

The NIT should be adequately publicised within one week of receipt of approval/comments from the Project authorities through the following medium.

• Advertisement in the local/regional newspapers; • Display on the notice boards of the Gram Panchayat, Kshettra Panchayat and the PUO; • Dispatch to the parties listed in the Yellow Page Directory.

d. Issue of Tender Documents – The tender document shall be signed by the Chairperson of the WWMC before its issue to the prospective bidder. The issue of tender documents should commence from the date mentioned in the NIT. If a fee is to be charged for the tender documents, it should not be so high as to discourage the prospective bidders. The issue should stop on the date and time mentioned in the NIT. The Panchayat Secretary/Accounts Assistant would control the issue/sale of the documents including issue of receipts and recording of the sale of documents. At the close of the issue/sale, the Panchayat Secretary/Accounts Assistant would inform the PC of the number of documents sold and the names of the parties. Cash/cheques received against the sale of tender documents should be deposited in the bank account of the Project on the same/next day.

e. Submission of tenders – All prospective bidders should be provided the same information and should get equal opportunity to obtain additional information, on a timely basis, so as to enable them to prepare appropriate tenders. The information shall be provided by any member of the PC or by the Panchayat Secretary/Accounts Assistant. The request for additional information should be made in writing. The response to such requests should be discussed by the PC and communicated in writing to each recipient of the original tender document in sufficient time before the dead line for receipt of tenders. If necessary, the dead line shall be extended.

In exceptional circumstances, the deadline for submission of tender may be required to be extended. Such extension shall be authorised by the GP on the recommendation of the WWMC. The extension of time shall be communicated in the manner given in para 3.12 (ii) (c).

The tenders shall be received at the address given in the NIT and shall be kept in the custody of the PC. The bidders can submit the tenders through registered post or in person. In the latter case, the Panchayat Secretary/Accounts Assistant shall issue acknowledgement of receipt of the tenders.

f. Public opening of tenders - The PC shall open the tenders at the place and time specified in the NIT. The date for the opening of tenders should preferably be the same as for the deadline for receipt of tenders and the time of opening should be immediately thereafter.

The tenders shall be opened in the presence of the bidders or their representatives, who choose to be present. The name of the bidder and the total amount of each tender shall be read aloud. Tenders received after the time stipulated in the NIT would not be opened and read out and not considered.

All tenders received should be recorded in a register stating therein the name of the bidder, whether tender opened or not, total number of the bids opened and attendance of persons present. The bidders shall not be requested or permitted to correct/modify/revise the tenders once they have been opened. All members of the PC present shall initial all the pages of the tenders and the register. The documents would be kept under the custody of the Panchayat Secretary.

g. Confidentiality - After the public opening of the tenders information relating to the examination, clarification, evaluation of bids and recommendations concerning award of contract shall not be disclosed to the bidders or other persons not official concerned with the process until the successful bidder is notified of the award.

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h. Examination of Tenders - The PC would ascertain whether the tenders

• have been properly signed; • are accompanied by required security, if any; • are substantially responsive to the tender documents i.e. it does not contain material

deviations or reservations to the terms, conditions and specifications; • are otherwise generally in order.

If a tender is not substantially responsive it shall not be considered any further for evaluation. The bidder shall not be permitted to correct or withdraw such material deviations or reservations once the tender has been opened.

i. Evaluation of Tenders - The PC shall prepare a detailed report on the evaluation and comparison of tenders, ascertain the bidder with the Lowest Evaluated Cost and make out its recommendation, clearly specifying the reasons on which the recommendation is based. This report duly signed by all the members of PC present shall then be forwarded to the WWMC for their recommendations within 3 days after the last date for submission of tenders. Thereafter, the report shall be placed before the GP at its meeting for consideration and approval within one week of approval by WWMC.

To ensure uniform evaluation across the tenders, the following points should be considered during evaluation.

• The tender price read out at the public opening shall be adjusted to correct any arithmetical errors or make adjustments for any quantifiable nonmaterial deviations or reservations.

• Clarifications or Alterations of Tenders – The bidders should not be requested or

permitted to alter/revise their tenders after the deadline fixed for the receipt of tenders. The WWMC may, if required, seek clarifications, in writing, from the bidders to facilitate evaluation of tenders, but shall not permit the bidders to change the substance or price of their tenders. The clarification from the bidders should be in writing.

• Pricing - The comparison of the tender amount should be based on all the components

specified in the tender documents to ensure uniformity. For instance, if evaluation is based on ex-works/ex-factory cost, then this basis should be similar for all tenders. Or where transportation, installation or similar costs are part of the price, then it should be included in all prices being compared. If any component has not been included in the tender price and cost whereof cannot be reasonably arrived at, the tender should declared “non – responsive”.

• Responsiveness – The tenders should be evaluated to ascertain that they substantially

comply with terms and conditions specified in the tender documents. For instance, sufficient information is not available with respect to the experience of the bidder or, if financial details have been asked for, these have not been appropriately provided to facilitate evaluation. The PC shall also determine whether the bidders have the capability and resources to effectively execute the contract. In such circumstances, the PC shall declare the tender as “substantially non – responsive” and hence reject the tender.

• Rejection of all tenders – Circumstances may arise where all the tenders are liable for

rejections due to lack of effective competition or all the tenders are not substantially responsive. Based on the recommendation of the PC, the WWMC would obtain the permission of the GP for rejecting all the tenders. If the tenders are rejected due to the aforesaid reasons, the GP resort to retendering.

However, caution need be exercised to ensure that all tenders should not be rejected

solely on the basis that the substantially exceed their estimates. Such action should be

placed in the next Gram Sabha.

j. Post Review by Project – The tender evaluation report shall after the approval by GP, be submitted to the concerned DPD Office or its authorised representative for obtaining its comments or no objection/approval. The Project authorities are expected to review the

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process to ensure that there are no material deviations from extant procurement guidelines, and due care has been made in the evaluation. The comments or no – objection/approval should be given by the Project authorities in writing not later than 15 days after the receipt of the Report.

k. Award of Contract - After receiving the no objection/approval of the Project authorities, the GP

shall then proceed to award the contract to the selected party. The GP shall issue a Letter of Acceptance of Tender for signing of the contract and to proceed with the work (per Form 14) or sign a contract for procurement of goods and issue the Procurement Order (per Form 12) within two days of receipt of approval from the Project authorities. The bidder shall not be required to undertake responsibilities for work which have not been stipulated in the tender documents or otherwise to modify the tender as originally submitted.

4.1 Recording

The GPs shall maintain the following three registers for recording at the pre-award and post-award stages.

• Tender and Procurement Registers – The objective of these Registers is to capture and monitor the activities involved in the procurement process. The Register shall have separate folio for each procurement through tender, quotations and shall contain the projected and actual date of performing the various stages of the process.

• Contract Register – This Register would capture the performance of the contract or the

Procurement Order. It would enable monitoring the status of each contract with respect to the contract value, amount of invoices and amount paid till the completion of the contract. The contract details shall be captured from the Tender and Procurement Registers and the actual payment details from the financial records.

The Panchayat Secretary/Accounts Assistant, or any member of the WWMC/PC so authorised by the WWMC, shall prepare these registers. The WWMC and the GP shall periodically review the Registers as part of their monitoring and control function and, based on the review, shall issue instructions in case of any slippages. These Registers shall form the basis for preparation of the Procurement Management Reports (PMR).

4.2 Procurement Management Reports

(i) The PMRs are a “walkthrough” of the process of procurement and would enable the Project Management to monitor the status of the major procurements and whether the provisions of this Manual are being complied with. The GPs shall prepare, in the manner prescribed, the PMRs as part of the Management Information System. The PMRs would be prepared on quarterly basis. The Panchayat Secretary/Accounts Assistant shall prepare the PMR, reviewed by the PC/WWMC and then placed before the GP at its meeting. The Gram Pradhan, the Chairperson of the WWMC and the Panchayat Secretary shall sign the PMR. Thereafter, the PMR shall be directed to the PUO by the 10th of the next month.

(ii) The following three reports shall be prepared from the records and other documents

relating to procurement. The PMRs shall be prepared in three copies – one copy each would be retained by the

GP and the WWMC and one copy would be directed to the PUO.

4.3 Internal Controls

The following internal controls are recommended in the procurement process.

• Any decision taken on procurement shall be taken in a meeting of the GP or the WWMC. If due to emergent circumstances, the Gram Pradhan takes a decision, post facto approval shall be taken at the next meeting.

• The GP shall deal with matters relating to procurement only after the WWMC has forwarded its recommendations thereon.

• Provision has been made, in the procurement process, for revision of dates (such as last date of sale or date of opening). It should be ensured that this provision is used sparingly, with adequate reasons, and not more than twice.

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• The Receipt Book for sale of tender forms and the Procurement Order shall be serially numbered.

• The WWMC shall ensure that the cash/cheques received on sale are deposited in the bank account of the Project by the Panchayat Secretary on the same/next day.

• The GP and the WWMC shall periodically conduct physical verification of material kept in central stores and reconcile these with the store records.

4.4 Audit

(i) The Financial Manual for GPs envisages External Audit by the Chief Audit Officer, Co – operatives and Panchayats (under the Panchayat Raj Act) and Internal Audit by firms of Chartered Accountants appointed by the Project. With respect to procurement, the Financial Manual provides the following under “Audit Program for Gram Panchayats” with respect to Internal Audit.

“Verification of documents relating to procurement of material and proper implementation of the Procurement Manual in this regard. Also verification of the records prescribed in the Procurement Manual, whether they are being maintained by the RVC or other Executor for control of material.”

(iii) It would be the responsibility of the GP and the WWMC to facilitate the Audit and ensure that the books and records relating to procurement are produced before the Auditors. It would also be their duty to effect compliance to the audit findings timely and completely.

4.5 Transparency and Social Audit

(i) Social Audit is a participatory audit and accountability is directly to the citizens. It is the medium through which information is disseminated to the citizens and they get the opportunity of evaluating the works implemented and judge their procurement, quality, effectiveness and conformity to accepted norms.

(ii) To achieve the above objectives, each GP shall, with the assistance of the WWMC, facilitate Social Audit in the following manner, relating to procurement, as a supplement to the process provided in the Financial Manual for GPs.

• The Procurement Plans shall be placed before the Gram Sabha for their

consideration. • Information with respect to intended procurement through quotations and tendering

should be displayed by the GP on the notice boards at the Panchayat Bhawan, Community Halls and other public places.

• Any member of the Community can request the GP to examine the documents regarding procurement, including PMRs. In such a case, the Panchayat Secretary/Accounts Assistant shall facilitate the inspection of the procurement documents. Copy of any document can also be requested by the member on payment of fees prescribed in the Panchayat Raj Rules.

• At each meeting of the Gram Sabha, the Proceedings Book of the WWMC and a copy of the PMRs shall be kept at the venue for inspection by the Community.

• Any complaint against the GP by the prospective bidders shall be submitted to the office of the DPD for redressal. The DPD shall take up the issue with the GP through the PUO.

4.6 Amendments in the Community Procurement Manual

During the course of the implementation of the Project, there may arise a situation requiring amendment to this Manual to ensure smooth procurement and to remove any hindrances. In such an eventuality, a Proposal for Amendment can be moved by the Project or by a GP/WWMC, giving the nature and reasons thereof. The proposal shall be examined by the Deputy Chief Project Director ( Dy.CPD) and if found reasonable, shall be placed before a Committee comprising of equal representatives of the project and the GPs and chaired by the Deputy CPD (Dy. CPD) (as per Financial Manual). The amendment shall be passed by a simple majority and forwarded to IFAD for its approval. On approval by IFAD, the amendment shall be incorporated in the Manual and disseminated to all the GPs who shall likewise include the amendment in their copy of the Manual.

*********

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Annex-1.6.4. Inputs for 18 month Procurement Plan for UGVS & UPASAC

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Detailed Costs (Amount in 000 INR) Post or

Unit Qty Amt Fin. Rule Proc. Acct. Proc. Method Prior Review

I. Investment Costs


Micro-irrigation per LC - - IFAD ( 75% ), BEN ( 15% ) CW_PA LCL_SHOPPING_PM ( 100% ) Post

Other irrigation works per LC - - IFAD ( 75% ), BEN ( 15% ) CW_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal Irrigation & Infrastructure - -

B. Food Security Enhancement - -

Support to VPGs/PGs 1st year PGs 963 38,520 IFAD ( 90% ), BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Post

Support to VPGs/PGs-2nd year PGs - - IFAD ( 90% ), BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Post

Seed capital to VPGs: 1st year /a VPGs 192 1,536 IFAD ( 90% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Post

Seed capital VGPs: 2nd year VPG - - IFAD ( 90% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Post

Support to ULIPH federations LS 40 8,000 IFAD ( 90% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal Food Security Enhancement - 48,056

C. Livelihoods upscaling - -

1. New Blocks - -

Agri- Plan implementation /b LC - - IFAD ( 90% ),BEN (10%) SPC_PA LCL_SHOPPING_PM ( 100% ) Prior

Agri Plan implementation-2 /c LC - - IFAD ( 90% ), BEN (10%) SPC_PA LCL_SHOPPING_PM ( 100% ) Prior

Procurement Training LC - - IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) Post

Financial Management Training LC - - IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) Post

Agency staff Training in FSIP No 6 300 IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) Post

Agency staff Training in convergence No 6 300 IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) Post

CRP capacity building CRP 50 150 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Convergence meeting meeting - - IFAD ( 90% ) CB_PA CPP_PM ( 100% ) Post

BOD meeting meeting - - IFAD ( 90% ) CB_PA CPP_PM ( 100% ) Post

AGM meeting meeting - - IFAD ( 90% ) CB_PA CPP_PM ( 100% ) Post

Village/Block level meeting LC 26 260 IFAD ( 90% ) SPC_PA CPP_PM ( 100% ) Post

Legal compliance & Audit LC - - IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Livestock breeding programme Block 9 3,600 IFAD ( 90% ), BEN (10%) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal New Blocks - 4,610

2. ULIPH Blocks - -

Convergence meeting No 280 560 IFAD ( 90% ) CB_PA CPP_PM ( 100% ) Post

Annual Plan Training LC 20 1,000 IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM ( 100% ) Post

BOD meeting No 350 175 IFAD ( 90% ) CB_PA CPP_PM ( 100% ) Post

AGM meeting No 70 700 IFAD ( 90% ) CB_PA CPP_PM ( 100% ) Post

Annual Audit LC 70 350 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Livestock breeding programme Block 17 6,800 IFAD ( 90% ), BEN (10%) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal ULIPH Blocks - 9,585

Subtotal Livelihoods upscaling - 14,195

D. Agribusiness Planning - -

Agribusiness Plan preparation LC 35 700 IFAD ( 90%) , BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Prior

Partner staff project planning LS - 200 IFAD ( 90%) , BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Prior

Partner staff Exposure visits /d batch 1 120 IFAD ( 90%) , BEN ( 10% ) SPC_PA LCL_SHOPPING_PM ( 100% ) Prior

Subtotal Agribusiness Planning - 1,020

E. Support to Partner Agencies - -

1. Office equipment - -

Social PNGO/Agencies /e set 8 1,360 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Technical NGOs/Agencies /f set - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

ULIPH federations /g set 22 3,740 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Livelihood collectives (LC) Lumpsum - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Subtotal Office equipment - 5,100

Total Investment Costs - 68,371

II. Recurrent Costs - -

A. Partner Agency Salary & Operations - -

1. Social PNGO: Salary, O&M costs /h - -

Livelihood Coordinators Pers_month 180 2,700 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Livelihood facilitators Pers_month 1,050 8,400 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Accountants/Assistants Pers_month 180 1,800 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Operating Costs Pers_month 180 2,340 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Overhead costs /i Staff month 180 3,780 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Subtotal Social PNGO: Salary, O&M costs - 19,020

2. Technical PNGO: salary, O&M costs - -

Coordinators Pers_month 18 540 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Agri-business officers Pers_month 72 1,440 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Business Development officers Pers_month 72 1,440 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Market Linkage Officers Pers_month 18 360 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Junior Engineers Pers_month 18 360 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Accountants/Assistants Pers_month 18 180 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Operating costs Pers_month 18 720 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Overheads /j Staff month 18 562 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Subtotal Technical PNGO: salary, O&M costs - 5,602

3. ULIPH Federations: Salary, O&M costs - -

Business Coordinators-ULIPH blocks /k Pers_month 1,065 15,975 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Business facilitators-ULIPH Blocks Pers_month 1,065 8,520 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Accountants/Assistants-ULIPH blocks Pers_month 1,084 10,840 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

ULIPH federations Operating costs /l Pers_month 1,065 13,845 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Overheads of ULIPH federations /m Staff month 213 2,130 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Subtotal ULIPH Federations: Salary, O&M costs - 51,310

4. LC in New Blocks: Salaries, allowances - -

Livelihood Coordinator Pers_month - - IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Livelihood facilitators Pers_month - - IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Accountants/Assistant Pers_month - - IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Travel allowances Pers_month - - IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Subtotal LC in New Blocks: Salaries, allowances - -

Total Recurrent Costs - 75,932

Total - 144,303

18 month Procurement Plan

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Table 1.2. Market Access


Unit Qty Amt Fin. Rule Proc.Acct Proc. Method Prior Review

I. Investment Costs


River crossing trolleys & ropeways No - - IFAD ( 90% ) CW_PA LCL_SHOPPING_PM ( 100% ) Prior

ICT-based information Lumpsum 1 200 IFAD ( 90% ) CW_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal Last mile Infrastructure - 200

B. Assembly markets - -

Collection centres /a No - - IFAD ( 90% ) CW_PA LCL_SHOPPING_PM ( 100% ) Post

C. Capacity building - -

Farmer exposure visit to market /b No 20 1,000 IFAD ( 90% ) SPC_PA LCB_PM(100%) Post

Agency staff AUP preparation training No 1 50 IFAD ( 90% ) SPC_PA LCB_PM(100%) Post

Agency staff business Plan preparation No 1 50 IFAD ( 90% ) SPC_PA LCB_PM(100%) Post

Farmers exposure visit to Market /c No 70 3,500 IFAD ( 90% ) SPC_PA LCB_PM(100%) Post

Subtotal Capacity building - 4,600

D. Sub-sector development: New Blocks /d - -

Value-chain planning & reviews No 9 270 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Enterprises assessment study No - - IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Technical Assistance Pers_month 18 720 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Market / value chain studies study 8 3,200 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Buyers visits No 3 225 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Organising Fairs No - - IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Buyer-seller meet at clusters Block - - IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Promotion, Miscellaneous LC - - IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal Sub-sector development: New Blocks - 4,415

E. Sub-sector development: ULIPH Blocks /e - -

Value-chain planning & reviews No 17 510 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Enterprises assessment study No 17 425 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Technical Assistance Pers_month 66 2,640 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Buyer-seller meet at clusters Block 22 660 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Promotion, Miscellaneous LC 100 2,500 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal Sub-sector development: ULIPH Blocks - 6,735

Total - 15,950


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Table 1.3. Innovation Linkages


Unit Qty Amt Fin. Rule Acct. Proc. Method Prior Review

I. Investment Costs


VPKAS Crop research /a year 1 6,652 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM ( 100% ) Prior

GBPUAT Training & research year 1 2,500 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

HARC citrus action research year 1 3,125 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Livestock & poultry others year - - IFAD ( 90% ) CB_PA DIR_CONTRACT_PM(100%) Prior

Non-farm & Market Development- Pilots /b Lumpsum 1 3,000 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Action Research on NTFP value chain Lumpsum 1 2,000 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Action Research on Organic value chain Lumpsum 1 1,500 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Action Research on eco-tourism value chain Lumpsum 1 1,100 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Action Research with Business Schools /c No 6 300 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Innovations with Grant Partners No 1 500 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Other Innovation Linkages No 1 300 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Prior

Total 20,977


INDIA


Table 1.4. Vocational Training


Unit Qty Amt Fin. Rule Proc. Acct Proc. Method Prior Review

I. Investment Costs


Planning study for vocational training study 1 2,000 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Support to Youth for vocational training candidate 1000 20,000 IFAD ( 75% ), BEN (25%) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Facilitation fees to resource agency student 1000 500 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Total 22,500

18 month Proccurement Plan

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I. Investment Costs

A. State level unit

1. Vehicles

Field vehicle No 2 1,200 IFAD ( 75% ) VEHIC_PA LCL_SHOPPING_PM (100%) Post

Motor cycles No - - IFAD ( 75% ) VEHIC_PA LCL_SHOPPING_PM (100%) Post

Subtotal Vehicles - 1,200

2. Office Equipment - -

Computers No 4 160 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Laptops No 8 320 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Printers-multifunction No - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Printers No - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Subtotal Office Equipment - 480

3. TA & Staff Training - -

Consultants pers_month 75 2,250 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Prior

Staff Training Lumpsum 3 300 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Study tours Number 3 1,500 IFAD ( 90% ) CB_PA FOR_ACCOUNT_PM (100%) Post

Annual retreat Number 1 1,000 IFAD ( 90% ) CB_PA FOR_ACCOUNT_PM (100%) Post

Subtotal TA & Staff Training - 5,050

Subtotal State level unit - 6,730

B. Divisional level - -

1. Field vehicles - -

Field vehicle No 7 4,200 IFAD ( 75% ) VEHIC_PA LCB_PM(100%) Post

Motor cycles No 20 1,200 IFAD ( 75% ) VEHIC_PA LCB_PM(100%) Post

Subtotal Field vehicles - 5,400

2. Office Equipment - -

Computers No - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Laptops No - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Printers-multifunction No - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Printers No - - IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Other equipment No 6 600 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post


3. TA & Staff Training - -

Training NGO & UGVS staff course 6 600 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM(100%) Post

Subtotal Divisional level - 6,600



A. State level - -

1. Staff salary - -

Project Director /a pers_month 12 1,800 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Chief Programme Manager/DPD pers_month 12 1,140 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Chief /Convergence Officer pers_month 12 900 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Programme Manager-Gender & Institutions pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Programme Manager-Market Access pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Programme Manager-Agri/horti /b pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Audit Manager-UGVS pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Finance Manager pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

HR Manager pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Programme Manager-Tourism pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Asst Manager: Finance pers_month 24 840 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Assistant - Finance pers_month 24 396 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Project Assistant pers_month 48 792 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Drivers pers_month 36 504 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Attendants pers_month 24 288 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Security Guards pers_month 24 288 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Subtotal Staff salary - 11,568

2. Operating costs - -

Staff travel allowance month 15 2,400 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Office operating costs month 15 3,750 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Office rent month 12 960 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Subtotal Operating costs - 7,110

Subtotal State level - 18,678

B. Divisional level - -

1. Staff salary - -

Divisional Project Managers pers_month 72 3,600 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Asst Managers-Market Access & tourism pers_month 72 2,304 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Asst Managers- Finance pers_month 72 2,304 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Asst Manager-Agri/horticulture pers_month 72 2,304 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Asst Manager-Institutions & Gender pers_month 72 2,304 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Asst Managers Planning & M&E pers_month 72 2,304 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Internal Auditors pers_month 72 1,800 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Assistants pers_month 288 4,752 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Drivers pers_month 144 2,016 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Attendants pers_month 288 3,456 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Security Guards pers_month 144 1,728 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post



Staff travel allowance month 75 7,500 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Office operating costs month 75 6,750 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Office rent month 72 2,160 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post


Subtotal Divisional level - 45,282


Total - 77,290


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I. Investment Costs

A. Vehicles

Field vehicle No 1 600 IFAD ( 75% ) VEHIC_PA LCB_PM(100%) Post

B. Financial initiatives - -

Security support to BF No 5 125 IFAD ( 90% ), BEN ( 10% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Operational Support to BF No 5 300 IFAD ( 90% ), BEN ( 10% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Product literacy training LC 80 800 IFAD ( 90% ), BEN ( 10% ) TRAIN_PA LCL_SHOPPING_PM (100%) Post

Product literacy training materials LC 80 160 IFAD ( 90% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Subtotal Financial initiatives - 1,385

C. Risk Management - -

Insurance premium study LS 1 500 GOVT FINANCING_PA NBF_PM ( 100% )

Risk insurance workshop LS 2 200 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Risk insurance implementation support LS - - IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal Risk Management - 700

D. Banking Initiatives - -

Training LCs on banking product No 5 500 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Workshop: districts and state No 10 150 IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) Post

Training LC on Appraisal skills /a No 10 1,500 IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) Post

Bankers Exposure visits No 1 300 IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) Post

Bank linkage through PACs strengthening PACs - - IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) Post

Bank linkage through PACs strengthening PACs - - IFAD ( 90% ) TRAIN_PA LCL_SHOPPING_PM (100%) Post

Branch Expansion Support-RFI branches 6 600 IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Post

Branch expansion support-RFI /b branches - - IFAD ( 90% ) CB_PA DIR_CONTRACT_PM (100%) Post

Impact study on RFI study - - IFAD ( 90% ) CB_PA LCL_SHOPPING_PM (100%) Post

Subtotal Banking Initiatives - 3,050

E. Fund support to LC - -

Viability Gap Fund to LC No 10 2,000 IFAD ( 100% ) FUND_PA DIR_CONTRACT_PM (100%) Post

Grant to PG/SHG /c LS 250 3,750 GOVT FINANCING_PA NBF_PM ( 100% )

Subtotal Fund support to LC - 5,750

F. Development Financing - -

Development financing Lumpsum - - GOVT FINANCING_PA NBF_PM ( 100% )

Leveraged credit for SMEs Lumpsum 10 2,000 BANKS ( 90% ), BEN (10%) FINANCING_PA NBF_PM ( 100% )

Term loans to micro-enterprises No 100 7,500 BANKS (90%), BEN (10%) FINANCING_PA NBF_PM ( 100% )

Cash-credit limits to SHGs No 100 5,000 BANKS ( 100% ) FINANCING_PA NBF_PM ( 100% )

Kisan credit cards No 500 12,500 BANKS ( 100% ) FINANCING_PA NBF_PM ( 100% )

Subtotal Development Financing - 27,000



A. UPASAC Management - -

1. Staff Salary - -

Chief Executive Officer Pers_month 15 1,500 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Manager Development Finance Pers_month 15 1,125 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Deputy Manager Finance Pers_month 15 750 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Rural Finance Coordinators /d Pers_month 102 2,550 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Assistant Pers_month 18 270 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Driver pers_month 15 210 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Security Guard pers_month 15 180 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Subtotal Staff Salary - 6,585

2. Other expenditures - -

Staff travelling allowancee month 15 1,200 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Office operating costs /e month 15 1,500 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Office rent month 15 750 IFAD ( 50% ) OM_PA OTHER_PM (100%) Post

Subtotal Other expenditures - 3,450


Total - 48,520


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Table 4.1. Central Project Coordination Unit



I. Investment Costs

A. CPCU

1. Office Equipment

Computers /Laptops No 4 160 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Multifunction Printers N0 1 75 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Printers No 2 20 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post

Office furniture set 1 150 IFAD ( 75% ) EQUIP_PA LCL_SHOPPING_PM(100%) Post


2. External audits /a Number 1 1,000 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Prior



A. PCU - -

1. Staff salary - -

Project Coordinator /b pers_month 12 - IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Finance Controller pers_month 15 1,500 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Asst Manager-Finance pers_month 12 384 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Project Assistants Pers_month 24 396 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post


2. PCU Operating costs - -

Office operating costs month 12 480 IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) Post

Vehicle hiring month 12 600 IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) Post

Subtotal PCU Operating costs - 1,080

Total - 4,765


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I. Investment Costs


1. Office equipment

Computers/Laptops No 10 400 IFAD ( 75% ) EQUIP_PALCL_SHOPPING_PM(100%) Post

Printers-Multiffunction No 1 75 IFAD ( 75% ) EQUIP_PALCL_SHOPPING_PM(100%) Post

Printers No 7 70 IFAD ( 75% ) EQUIP_PALCL_SHOPPING_PM(100%) Post

Data-enabled Mobile phones /a No 20 200 IFAD ( 75% ) EQUIP_PALCL_SHOPPING_PM(100%) Post

Furniture & miscellaneous Lumpsum 1 300 IFAD ( 75% ) EQUIP_PALCL_SHOPPING_PM(100%) Post

Subtotal Office equipment - 1,045

B. Training & workshops - -

1. Monthly Review meetings - -

At Block level /b meetings 104 208 IFAD ( 90% ) TRAIN_PAFOR_ACCOUNT_PM ( 100% ) Post

At Division level meetings 36 720 IFAD ( 90% ) TRAIN_PAFOR_ACCOUNT_PM (100%) Post

At State level meetings 6 300 IFAD ( 90% ) TRAIN_PAFOR_ACCOUNT_PM (100%) Post

State level PMC, GB & PSC meetings 9 90 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Subtotal Monthly Review meetings - 1,318

2. Quarterly learning/sharing workshops - -

at Block level meetings 52 260 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

at Divisional level meetings 6 120 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

at State level meetings 4 400 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Subtotal Quarterly learning/sharing workshops - 780

3. Workshops - -

Project start up WS /c No 1 225 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Divisional startup workshops participants 6 600 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Mid-term review /d Review - - IFAD ( 90% ) TRAIN_PA LCL50: FA 50 Post

Project completion review /e PCR - - IFAD ( 90% ) TRAIN_PA LCL50: FA 50 Post

Subtotal Workshops - 825

4. Training & TA - -

KM documentation /f course 1 100 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

knowledge sharing tools course - - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

RIMS & M-E training at state level course 1 100 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

RIMS/M&E training at Divn level course 1 100 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Annual Outcome Survey survey 1 50 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

KAPs survey /g survey - - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Technical assistance /h year 1 200 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Prior

Subtotal Training & TA - 550

5. Studies & others - -

Communication materials LS 12 600 IFAD ( 90% ) SURVEY_PALCL_SHOPPING_PM(100%) Post

News letters & publications Lumpsum 1 700 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Website maintenance year 1 5 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Monitoring surveys /i survey 1 5,000 IFAD ( 90% ) SURVEY_PALCL_SHOPPING_PM(100%) Prior

Subtotal Studies & others - 6,305

Subtotal Training & workshops - 9,778



A. Salary & Operating costs - -

1. Staff Salary - -

Planning/M&E Manager Pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

MIS Manager Pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

KM Manager Pers_month 12 660 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Statistical Officer Pers_month 15 750 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Planning/ M&E Assistant Pers_month 12 198 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Project Assistants Pers_month 15 248 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Enumerators Pers_month 180 1,800 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post



Staff travelling allowance month 15 600 IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) Post


Vehicle hiring charges month 15 750 IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) Post



Total - 18,049

18 month procurement Plan

222

Annex-1.6.5. Inputs for an 18 month Procurement Plan for WMD

INDIA





I. Investment Costs


NGO support for social mobilisation NGO 4 16,000 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Social / Environmental Consultants No 4 2,400 IFAD ( 90% ) SURVEY_PA LCL_SHOPPING_PM(100%) Post

Village level Motivators Person 1,400 33,600 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Account Asst at GP level Person 550 33,000 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Admin Expenditure Year 550 13,750 IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Subtotal Social Mobilisation - 98,750

B. Watershed & Village Development - -

Watershed treatment /a GP 50 192,360 IFAD ( 80% ), BEN ( 10% ) WD_PA CPP_PM ( 100% ) Prior

C. Food Security Enhancement Support - -

1. Farming system improvement - -

Support to PGs: first year PGs 1,560 46,800 IFAD ( 80% ), BEN ( 20% ) LIVE_PA LCL_SHOPPING_PM(100%) Post

Support to PG second year PG 780 23,400 IFAD ( 80% ), BEN ( 20% ) LIVE_PA LCL_SHOPPING_PM(100%) Post

Support to PG third year PGs - - IFAD ( 80% ), BEN ( 20% ) LIVE_PA LCL_SHOPPING_PM(100%) Post

Miscellaneous GP 50 700 IFAD ( 80% ), BEN ( 20% ) LIVE_PA LCL_SHOPPING_PM(100%) Post

Subtotal Farming system improvement - 70,900

2. Value Addition & marketing - -

Small infrastructure /b GP 50 22,500 IFAD ( 80% ), BEN ( 20% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Collection centres/MUC GP 50 10,000 IFAD ( 80% ), BEN ( 20% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Beneficiary contribution /c GP 50 5,600 BEN ( 100% ) WD_PA CPP_PM (100%) Post

NGO support for Agribusiness /d YEAR - - IFAD ( 90% ) SPC_PA LCB_PM(100%) Prior

Subtotal Value Addition & marketing - 38,100

Subtotal Food Security Enhancement Support - 109,000

D. Livelihood upscaling - -

1. Promotion of IGA - -

Support to VG Person 244 19,520 IFAD ( 80% ) LIVE_PA CPP_PM ( 100% ) Post

2. Support to LC for upscaling IGA - -

Support to LC for IGA upscaling No - - IFAD ( 80% ), BEN ( 20% ) LIVE_PA CPP_PM ( 100% ) Post

Miscellaneous Year - 10,000 IFAD ( 80% ), BEN ( 20% ) LIVE_PA CPP_PM ( 100% ) Post

Subtotal Support to LC for upscaling IGA - 10,000

Subtotal Livelihood upscaling - 29,520

E. Institutional Strengthening - -

1. Capacity Building of GP & WWMCs - -

Social Training at village level Lumpsum 1,600 16,800 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Technical Training at village level Lumpsum 1,600 16,800 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Training on production technology Training 200 5,000 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Training at Resource centres Trainings 30 3,000 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Unit level workshop No 100 5,000 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Divisional level workshop No 40 4,000 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

State level workshop Lumpsum 20 10,000 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Exposure visit within state Lumpsum 2 6,000 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Overseas exposure visits Lumpsum - 2,500 IFAD ( 90% ) CB_PA OTHER_PM ( 100% ) Post

Subtotal Capacity Building of GP & WWMCs - 69,100

2. Information, Education & Communication - -

IEC consultants Lumpsum - 1,200 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Prior

IEC materials Lumpsum - 4,000 IFAD ( 90% ) CB_PA LCL_SHOPPING_PM ( 100% ) Post

Subtotal Information, Education & Communication - 5,200

Subtotal Institutional Strengthening - 74,300

F. Project Management - -

Vehicles No 10 6,000 IFAD ( 75% ) VEHIC_PA LCB_PM(100%) Post

NGO support to M&E system /e Lumpsum - - IFAD ( 90% ) SPC_PA LCB_PM(100%) Post

Annual Audit (External) year 2 1,000 IFAD ( 80% ) WD_PA CPP_PM (100%) Prior

Subtotal Project Management - 7,000



A. Project Management - -

Staff salary /f Year - 360,000 GOVT OM_PA NBF_PM ( 100% )

Audit Manager pers_month 15 825 IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) Post

Internal Auditors /g pers_month 27 1,485 IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) Post

Assistants pers_month 132 1,980 IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) Post

Project Allowance year - 18,000 IFAD ( 90% ) SAA_PA OTHER_PM ( 100% ) Post

GIS/MIS/ watershed experts /h year - 7,500 IFAD ( 90% ) OM_PA LCL_SHOPPING_PM ( 100% ) Prior

Travel Allowance year - 7,500 IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) Post

Office expenditure year - 10,500 IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) Post

Operating costs, equipment year - 10,500 IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) Post

Miscellaneous year - 3,750 IFAD ( 50% ) OM_PA OTHER_PM ( 100% ) Post


Total - 932,970


223

INDIA





I. Investment Costs


1. Office equipment

Office equipment /a No 1 575 IFAD ( 75% ) EQUIP_PALCL_SHOPPING_PM(100%) Post

Data-enabled Mobile phones /b No 12 120 IFAD ( 75% ) EQUIP_PALCL_SHOPPING_PM(100%) Post

Subtotal Office equipment - 695

B. Training & workshops - -

1. Monthly Review meetings - -

At Block level /c meetings 104 208 IFAD ( 90% ) TRAIN_PAFOR_ACCOUNT_PM ( 100% ) Post

At Division level /d meetings 24 480 IFAD ( 90% ) TRAIN_PAFOR_ACCOUNT_PM (100%) Post

At State level /e meetings 4 200 IFAD ( 90% ) TRAIN_PAFOR_ACCOUNT_PM (100%) Post

Subtotal Monthly Review meetings - 888

2. Quarterly learning/sharing workshops /f - -

Block level workshop meetings 52 - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Divisional level workshop meetings 6 - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

State level workshops meetings 1 - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Subtotal Quarterly learning/sharing workshops - -

3. Workshops - -

Project start up WS /g No 1 225 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Divisional startup workshops participants 6 600 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Mid-term review /h Review - - IFAD ( 90% ) TRAIN_PA LCL 50: FA 50 Post

Project completion review /i PCR - - IFAD ( 90% ) TRAIN_PA LCL 50: FA 50 Post

Subtotal Workshops - 825

4. KM Training - -

KM documentation /j course 1 100 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

knowledge sharing tools course - - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

RIMS & M-E training at state level /k course 1 - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

RIMS/M&E training at Divn level /l course 1 - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Annual Outcome Survey survey 1 500 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

KAPs survey /m survey - - IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Technical assistance /n pers_month 1 200 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Prior

Subtotal KM Training - 800

5. Surveys & studies - -

Communication materials LS 7 350 IFAD ( 90% ) SURVEY_PALCL_SHOPPING_PM(100%) Post

News letters & publications Lumpsum 1 500 IFAD ( 90% ) TRAIN_PALCL_SHOPPING_PM (100%) Post

Monitoring surveys /o survey 1 10,000 IFAD ( 90% ) SURVEY_PALCL_SHOPPING_PM(100%) Prior

Subtotal Surveys & studies - 10,850

Subtotal Training & workshops - 13,363



A. Salary & operating costs - -

1. Staff Salary - -

Manager (KM) /p Pers_month 15 - IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Data Entry Operators Pers_month 156 2,340 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post

Enumerators /q Pers_month 48 720 IFAD ( 50% ) SAA_PA OTHER_PM (100%) Post



Staff travelling allowance month 15 600 IFAD ( 50% ) OM_PA LCL_SHOPPING_PM (100%) Post




Total - 18,618


224

Annex-1.6.6. Procurement Template: Goods

Goods

Country/Organisation

Project/Programme: PROCUREMENT PLAN (GOODS)

Loan #:

Description Lot Number

Issue of

Invitation for

Bids

Estimated

Amount in

US$

Procurement

Method

Pre or Post

Qualification

Prior or Post

Review

Plan Vs

Actual

Date

Proposed

Date No-

objection

Bid Invitation

Dates

Bid Closing

Opening

Bid Evaluation

Report No Objection

Contract

Amount in

US$

Date

Contract

Award

Date

Contract

Signature

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Total Cost 0 Plan

0 Actual

BASIC DATA Bid Documents Bidding Period Bid Evaluation Contract Finalization

225

Annex-1.6.7. Procurement Template: Works

Works


Project/Programme: PROCUREMENT PLAN (WORKS)

Loan #:

Description Lot Number

Issue of

Invitation for

Bids

Lumpsum or

Bill of

Quantities

Procurement

Method

Estimated

Amount in

US$

Pre or Post

Qualification

Prior or Post

Review

Plan Vs

Actual

Date

Proposed

Date No-

objection

Bid Invitation

Date

Bid Closing

Opening

Bid Evaluation

Report No Objection

Contract

Amount in

US$

Date

Contract

Award

Date

Contract

Signature

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Plan

Actual

Total Cost 0 Plan

0 Actual

Bid Evaluation Contract FinalizationBASIC DATA Bid Documents Bidding Period

226

Annex-1.6.8. Procurement Template: Services and Consultancy

SERVICES & CONSULTANCY


Project/Programme :

Loan #:

Description

Selection

Method

Lumpsum or

Time Based

Estimated

Amount in

US$

Prior or

Post

Review

Plan Vs

Actual

Date

Published

Closing

Date

Date

Proposed

Date No-

objection

Date

Proposed

Date No-

objection

Plan Vs

Actual

Date

Prepared'

Date No-

objection Invitation Date

Submission /

Opening Date

Submission

Evaluation

Report (T)

No objection

Evaluation

Report (T)

Opening

Financial

Proposals

Submission

Eval. Report (T)

& (F)

N0 Objection

Eval. Report (T) &

(F)

Plan Vs

Actual

Contract

Amount in

US$

Contract

Award

Contract

Signature

Plan Plan Plan

Actual Actual Actual

Plan Plan Plan


Plan Plan Plan


Plan Plan Plan


Plan Plan Plan


Plan Plan Plan


Plan Plan Plan


Plan Plan Plan


Plan Plan Plan


Total Cost Plan Plan Plan


Request for Expression of

Interest Terms of Reference Short List Contract FinanlizatioinRequest for Proposal Bid Proposals Bid Evaluation Technical(T) & Financial (F)

227

Chapter-1.7: FINANCE MANAGEMENT

A. Financial Management Arrangements

The financial management arrangements of the previous IFAD funded Project (ULIPH) implemented by UGVS/UPASAC have stood the test of time. WMD has completed the UDWDP project financed by the World Bank, which has robust financial management arrangements. The proposed financial management arrangements for ILSP will attempt to draw from the best practices observed in both projects and will be tailored to suit the specific requirements of ILSP.

BOOKS OF ACCOUNTS The project will maintain accounts and records in accordance with generally accepted and consistently applied accounting practices adequate to reflect the operations, resources and expenditures related to the project until the Financing Closing Date, and shall retain such accounts and records for at least ten (10) years thereafter.

It is proposed that the project will maintain its accounts on off the shelf financial software (e.g. Tally accounting software) which can be modified to meet the purposes of the Project. The books of accounts will be maintained centrally at the CPCU housed within UGVS and will be based on the double entry system of book keeping and will use the cash basis of accounting. The software will accurately record transactions and balances related to the project and will capture financial transactions at all levels of implementation. IFAD‟s ongoing ULIPH Project uses Tally software which is currently undergoing customization to generate withdrawal applications, SoEs and Project Financial statements in IFAD‟s Standard reporting Formats. This customized Tally software can be implemented by ILSP at all implementation levels of UGVS, UPASAC and WMD. In UGVS/UPASAC books of accounts for the project will be maintained at the PMU and all DMUs. In WMD, books of accounts for the project will be maintained at its headquarters 2 regional PD offices, and 6 DPD offices. Monthly Trial Balances from UGVS/UPASAC DMUs will be consolidated at the UGVS/UPASAC PMU and then a consolidated monthly Trial Balance for each of these Implementing Agencies will be sent to the CPCU. Similarly, monthly trial balances from RPD and DPD offices of WMD will be consolidated at the WMD PMU and a consolidated trial Balance for WMD will be sent to the CPCU.

FINANCIAL PERSONNEL The Finance Controller of the CPCU will be ultimately responsible for the financial management of the Project. He will maintain centralized books of accounts of the Project compile and submit Withdrawal Applications to CAAA amongst other duties listed in his TOR. The PMU of each IA will have one Finance Manager who will be responsible for all financial management of the project at all levels of the IA. He/she will also be responsible for accounting matters relating to the Project including book keeping, financial reporting, coordination with auditors and internal auditors, vendor payments, bank reconciliations and bank operation, funds flow to sub accounts, monitoring of expenditure against budgets, and preparation of reimbursement claims to be submitted to CPCU, IFAD etc. Each Divisional Management Unit of UGVS and WMD will have a Finance Manager who will maintain books of accounts, oversee and reconcile bank operations, prepare periodic financial reports and record/ monitor advances and other payments to be made to NGOs, Livelihood Collectives, Producer groups and to other implementation partners besides expenditure related to their own offices, and also monitor expenditure against budgeted expenditure, etc. Accounts

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staff at Offices in the Divisions will maintain books of accounts, oversee and reconcile bank operations, prepare periodic financial reports and record/ monitor advances and other payments to be made to NGOs, Unit Officers, WWMCs and to other implementation partners besides expenditure related to their own offices and also monitor expenditure against budgeted expenditure, etc.

FINANCIAL STATEMENTS The Borrower/Recipient shall deliver to the Fund detailed financial statements of the operations, resources and expenditures related to the Project for each Fiscal Year prepared in accordance with standards and procedures acceptable to the Fund and deliver such financial statements to the Fund within four months of the end of each Fiscal Year. The financial Statements shall include those prepared in IFAD‟s standard financial reporting formats (enclosed to the Project Implementation Manual. FINANCIAL REPORTS The following reports / other financial information need to be furnished.

(a) The Borrower/Recipient and the Project Parties shall promptly furnish to the Fund such other reports and information as the Fund shall reasonably request on any financial matter relating to the Financing or the Project or any Project Party.

(b) The Borrower/Recipient shall promptly inform the Fund of any condition that interferes

with, or threatens to interfere with, the maintenance of Loan Service Payments.

(c) The Project Member State shall promptly furnish to the Fund all information that the Fund may reasonably request with respect to financial and economic conditions in its territory, including its balance of payments and its external debt.

Taxation: The proceeds of the financing from IFAD may not be used to pay taxes

B. Funds Flow

The Project will be funded from four sources: IFAD, the Government, financial institutions, and beneficiary contributions. The respective PIA will be responsible for preparing the Annual Work Plan & Budget for the project and submitting this to the Department of Finance of the State through the Department of Rural Development. This AWPB (net of beneficiary and bank contributions) will be included as a line item in the budget or the Department of Rural Development. IFAD‟s share of the reimbursed to the Government of India and by the Government of India to the Government of Uttarakhand through the conventional national procedures for budgetary support to State Governments. Proceeds of IFAD loan funds will be disbursed using one of the following four methods:

(i) advance withdrawals or replenishments to the bank account(s) designated to receive loan resources;

(ii) direct payment; (iii) Special Commitment (under letter of credit); and (iv) reimbursement.

The Designated Account will be maintained in a bank acceptable to IFAD and operated by the authorized representative(s) of the Ministry of Finance, Government of India. IFAD will make an initial advance to cover roughly six months of estimated project expenditure into the Designated Account and then replenish the Designated Account on the basis of Withdrawal Applications submitted by the Project through the State Government to the CAA&A, Government of India. The budgetary allocation for the Project (including counterpart funds) will be released to the Project in one or two tranches. To avoid delay in flow of funds to the Project GoUK will nominate an officer with Drawing & Disbursement Powers as the Finance Controller of the CPCU (unless the power is vested in the CPD). The funds will be transferred from the State Treasury to the Project bank Account

229

opened and operated by the CPCU in a bank acceptable to IFAD. From this Project account, funds will flow to the Sub-project Accounts maintained by the three PMUs at UGVS, UPASAC and WMD.

While UGVS and UPASAC funds will flow from the Sub project accounts at their respective PMUs to their existing District Level bank accounts. WMD funds will flow from the WMD Sub project Account to bank accounts maintained exclusively for the project at Divisional / District levels and a large proportion of the funds will further flow from these bank accounts to exclusive project bank accounts maintained by Water & Watershed Management Committees (WWMCs) which are part of the Gram Panchayats (GPs).

C. Support from IFAD IFAD may provide ongoing financial management support to the project by deputing a Financial Management Specialist to the project at periodic intervals. Such support is envisaged in the first year of project implementation and thereafter only when requested by the PDs and/ or IFAD Supervision Missions/ CPM. The level of support to be provided to the Project will be decided by the IFAD Country Portfolio Manager in consultation with the Project Director. Such support is particularly relevant in the case of WMD, which has not implemented IFAD Projects in the past. The IFAD FM Specialist can provide implementation support in the areas of financial management and procurement and will specifically help the project cope with preparation of Withdrawal Applications, Designated Account Reconciliations and will conduct prior review of procurement transactions on behalf of IFAD. His/her Terms of Reference will include other aspects of financial management which are contained in IFAD‟s fiduciary aspects checklist if the IFAD CPM deems necessary. The role of the IFAD FM Specialist is that of a mentor and facilitator and not that of an auditor. At the same time he will protect IFAD‟s interests and will try and ensure efficient utilization of economic resources.

D. Audit

ANNUAL AUDIT The Borrower shall:

(a) each Fiscal Year, have the accounts relating to the Project audited by independent auditors acceptable to the Fund, and in accordance with Article 9 of the Fund‟s General conditions and the Fund‟s Guidelines on Project Audits (for Borrowers’ Use). In this connection, an audit by an independent firm of Chartered Accountants selected through a fair, transparent and competitive process will be considered to meet the requirements if they use International Standards of Auditing, follow IFAD approved Audit Terms of Reference and express audit opinions on project financial statements prepared in IFAD‟s standard financial reporting formats;

(b) within six (6) months of the end of each Fiscal Year, furnish to the Fund a certified copy

of the audit report. The Borrower shall submit to the Fund the reply to the management letter of the auditors within one month of receipt thereof; and

(c) if the Borrower does not timely furnish any required audit report in satisfactory form and

the Fund determines that the Borrower is unlikely to do so within a reasonable period, the Fund may engage independent auditors of its choice to audit the accounts relating to the

230

Project. The Fund may finance the cost of such audit by withdrawal from the Loan Account.

INTERNAL AUDIT The project will have a cost effective but efficient internal audit mechanism in place before the end of 3 months of project implementation. In the case of UGVS & UPASAC, the internal audit will be conducted by their Manager (Audit) assisted by a team of District level Compliance Auditors. In the case of WMD, the internal audit function can be outsourced to a firm of independent Chartered Accountants, selected through a fair, transparent competitive process. Clear and unambiguous terms of reference for the internal audit are included in the Project Implementation Manual. The TOR includes key aspects of financial management and procurement contained in IFAD‟s fiduciary aspects checklist. The internal auditors will submit semi annual reports to the Coordinating Project Director and the IFAD CPM. Corrective follow up action will be decided jointly by a committee which includes the PD, the Finance Controller and the internal auditors. The committee will evaluate action on previous internal audit reports, and effectiveness thereof. The quality of internal audit reports submitted by the internal auditors in the first year of implementation will be carefully monitored by IFAD CPM and if these reports are found to lack quality, he may request the IAs to make alternate arrangements, acceptable to IFAD, for conducting the internal audit in later years.

E. Withdrawal Applications

Between the date of entry into force of the Financing Agreement and the Financing Closing Date, the Borrower/Recipient may request withdrawals from the Loan Account of amounts paid or to be paid for Eligible Expenditures. The Fund shall notify the Borrower/Recipient of the minimum amount for withdrawals.

No withdrawal shall be made from the Loan Account until the first AWPB has been approved by the Fund and the Fund has determined that all other conditions specified in the Financing Agreement as additional general conditions precedent to withdrawal (if any) have been fulfilled. The Financing Agreement may also establish additional specific conditions precedent to withdrawal applicable to particular categories or activities. Withdrawals to meet the costs of starting up the Project may be made from the date of entry into force of the Agreement, subject to any limits established in the Financing Agreement. In this connection, the following additional provisions need to be kept in mind.

When the Borrower/Recipient wishes to request a withdrawal from the Loan Account or a Special Commitment, the Borrower/Recipient shall deliver to the Fund an application in the form specified there for by the Fund, together with such documents and other evidence in support of such application as the Fund shall reasonably request.

The Borrower/Recipient shall furnish to the Fund satisfactory evidence of the authority of the person or persons authorised to sign such applications and the authenticated specimen signature of each such person. Under the provisions of the General Conditions (article IV, section 4.04(b)), the Fund requires the borrower‟s (or recipient‟s) representative, as designated in the financing agreement, to

furnish satisfactory evidence of the authority and authenticated specimen signatures of the individuals who will sign WAs on behalf of the borrower. This evidence must reach the Fund before the first WA is presented by the borrower and should be the original (photocopies, facsimiles or other means of transmission are not acceptable). In order to avoid delays in disbursements, this documentary evidence should be furnished to IFAD as soon as possible after entry into force of the financing agreement.

231

Each WA should be signed by such duly authorized individuals, and the Fund must be notified of any change in the signatories authorized to withdraw funds from the loan account. The Fund must also be notified of the designated signatories for operating any designated and/or programme or other accounts, including changes thereto, whether or not these authorized signatories are included in the financing agreement. Such changes, as effected during the life of the project, must be communicated promptly to the Fund. The borrower, guided by the sample in annex 1 referred above, should provide the names and specimen signatures of the newly appointed signatories and include the date when such change is to take effect. The original of such changed documentary evidence is to be provided to the Fund. If the authorized signatories have been specified in the financing agreement, a change in authorized signatories shall constitute a need for modification of the financing agreement, and such amendment will need to be effected quickly so as to ensure uninterrupted processing and expeditious payment of WAs.

Each such application, and the accompanying documents and other evidence, must be

sufficient to satisfy the Fund that the Borrower/Recipient is entitled to such withdrawal or Special Commitment.

If the Borrower/Recipient requests a withdrawal from the Loan Account for amounts to be

paid thereafter for Eligible Expenditures, the Fund may, before transferring such amount to the Borrower/Recipient, require that the Borrower/Recipient provide evidence satisfactory to the Fund showing that previous withdrawals have been properly spent for Eligible Expenditures. The Fund may place reasonable limits on the amount that the Borrower/Recipient may withdraw in advance or the overall balance of such advance withdrawals, and may require that such amounts be held in a freely convertible currency and/or be held in an account designated for that purpose in a bank acceptable to the Fund.

Items to be financed are usually grouped into categories of expenditures and are shown as a schedule in the financing agreement. The financing schedule presents the amount allocated to each category and subcategory, and the percentage of financing of eligible project expenditures as assessed at the time of project design and approved by IFAD‟s Senior Management. Reallocation of funds from one category to another may be allowed, unless the financing agreement prohibits this. During project implementation, should the need to reallocate financing resources among categories of expense arise, such reallocation would be processed in the applicable schedule(s) to the financing agreement after prior consultation and agreement between the borrower and the Fund.

Although Withdrawal Applications have to be forwarded to the Fund under signature of

the Borrower‟s authorized signatory, the application will be prepared by the CPMU on the basis of reimbursement claims received from the three Implementing Agencies.

Detailed withdrawal procedures, forms and templates are available in IFAD‟s Loan Disbursement Handbook and IFAD Loan Administration Manual which will be provided to the Project as part of the Start Up Kit.

F. Eligible Expenditures

The Financing shall be used exclusively to finance expenditures meeting each of the following eligibility requirements:

(i) The expenditure shall meet the reasonable cost of goods, works and services required for the Project and covered by the relevant AWPB and procured in conformity with the Fund‟s Procurement Guidelines.

232

(ii) The expenditure shall be incurred during the Project Implementation Period, except that expenditures to meet the costs of winding up the Project may be incurred after the Project Completion Date and before the Financing Closing Date.

(iii) The expenditure shall be incurred by a Project Party (iv) If the Agreement allocates the amount of the Financing to categories of Eligible

Expenditures and specifies the percentages of such Eligible Expenditures to be financed by the Financing, the expenditure must relate to a category whose allocation has not been depleted, and shall be eligible only up to the percentage applicable to such category.

(v) The expenditure shall be otherwise eligible in accordance with the terms of the Financing

Agreement. (vi) The Fund may from time to time exclude certain types of expenditure from eligibility. (vii) Any payment prohibited by a decision of the United Nations Security Council taken under

Chapter VII of the Charter of the United Nations, shall not be eligible for financing by the Financing.

Any payments to a person or an entity, or for any goods, works or services, if making or receiving such payment constitutes a coercive, collusive, corrupt or fraudulent practice by any representative of the Borrower/Recipient or any Project Party, shall not be eligible for financing by the Financing.

G. Disbursement

There are four standard procedures that are used for disbursing Loan funds from IFAD.

Procedure I: Special/ Designated Account: This procedure provides a mechanism like a revolving fund to assist the government in financing eligible expenditures defined in the Financing Agreement as payment falls due. While the project implementation is underway the account is replenished when satisfactory evidence of expenditure incurred is received. Deposits to replenish the Special/ Designated Account are claimed under this procedure using Application for Withdrawal – Form 100.

Summary sheet (SS) Form 101 is used when additional space is required, that is, more than one contractor, or if expenditures relate to multiple suppliers on a reimbursement basis. Summary sheet Form 101 is used to summarise several invoices or receipts claimed for replenishment. Separate summary sheets are used for each disbursement category.

SS Form 102 is used when expenditures are claimed under Statement of Expenditures (SOEs).If expenditures are claimed under an SOE, supporting documents are not required to be submitted with the withdrawal applications. SS Form 102 is attached to the withdrawal application, supported by Summary Sheet(s) in Form 101 in which the corresponding itemised expenditures and related information is provided. Also if supporting documents are not required, the project shall itemize every single claim by indicating relevant data (good/services provided, date, amount disbursed, bill number, etc.)

If the expenditures are not claimed under a SOE, the supporting documents (bills, invoices, receipts, evidence of payment and evidence of shipment) are submitted and attached to the withdrawal application.

Procedure II: Direct Payment. Under this procedure, the government requests the Fund to pay suppliers directly from the loan funds. The procedure is similar to Procedure I described above but the payment is made direct to the third party as advised and instructed by the Government.

Procedure III: Direct Payment to a foreign supplier. Under this procedure, the government uses a Letter of Credit (L/C) as a mode of payment to a foreign supplier. Form 301, an Application for a

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Special Commitment, Form 302 Letter of Commitment from IFAD to a Bank and Form 303 Bank‟s Request for Payment. This is extensively used for financing import of goods and under this procedure IFAD gives assurance to the suppliers.

Procedure IV: Reimbursement. All eligible expenditures pre-financed by the government are claimed for reimbursement under this procedure using Application for Withdrawal –Form 100 and Summary sheets Forms 101 & 102 as with Procedure I above. This type of disbursement will be very common with the project. This procedure is followed when expenditures have already been incurred, that is, the suppliers of goods or services have already been paid by the Government from its own funds. The reimbursement procedure is generally suitable for payment of (i) local currency costs, (ii) petty purchases; and (iii) small civil works payments. The reimbursement procedure normally requires full documentation. However, there are special cases where the IFAD accepts simplified documentation:

a) Statement of Expenditures (SOE) this is applicable where it is impractical or unduly burdensome to submit full documentation in support of application for withdrawal of loan proceeds.

b) Force Account Works. This procedure is applicable when the implementation agency uses its own work forces, equipment, and other resources in carrying out civil works. This procedure involves submission of periodic certification of progress or completion of civil works in support of application for withdrawal of loan proceeds instead of the usually required supporting documentation such as invoices, bills and receipts.

Disbursement Procedure

Disbursement Type Description Form

Procedure I Special/ Designated Account

This is for advance funding from IFAD for start up activities and is used for claiming further deposits to replenish the Special/ Designated Account

Form 100 Form 101A Form 102B Form 103 Form 104 Form 105

Procedure II Direct Payment IFAD makes direct payment to a third party on the basis of Government instructions

Form 100 Form 101B Form 105

Procedure III Special Commitment This is used for items imported by the Project under a Letter of Credit requiring guarantees for reimbursement

Form 301 Form 302 Form 303

Procedure IV Reimbursement This procedure is used for claiming reimbursement where eligible project expenditure reimbursable by IFAD have been pre-financed by the Government

Form 100 Form 101A Form 102B Form 103 Form 105

Following aspects need to be checked and verified before an Application for withdrawal is sent to IFAD for reimbursement or payment:

Designation of WA signatory

Designation for operation of the special/designated account

WA Sequential number and coverage period

WA signatory

Currency and the amount due

Account number

Banking instructions

Correspondent bank

Supporting documents

Percentage of Financing

Disbursement procedure used

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Procurement details

Contract or purchase order no and date

Description of goods, works or services

Currency and total amount of contract

Invoice numbers and net amount of invoice covered by this application

Withdrawal details: category and % of expenditures to be financed by IFAD Withdrawals from the Loan Account may be made against statements of expenditure (SOEs) in respect of Eligible Expenditures in such amounts as IFAD may designate from time to time by notice to the GoI and GoUK. The records evidencing such expenditures need not be submitted to IFAD, but will be retained by the GoI and GoUK and made available for inspection by the representatives of IFAD. The SPMU will retain the relevant documents and make them readily available for inspection and review by joint review missions and the auditors. No taxes and duties will be financed out of the proceeds of the IFAD loan. Requests for replenishment with necessary supporting documents or certification of SOEs will be made by the PD for processing and then for funds transfer from the Special/Designated Account to the PD Account. The PD will compile and consolidate, on a timely basis, eligible Programme expenditures for all project activities and consolidate and process, on a timely basis, withdrawal applications for all eligible Project expenditures and submit withdrawal applications to IFAD through MoF for reimbursement or replenishment of the Special/Designated Account.

H. Accounting The project will maintain accounts and records in accordance with internationally accepted accounting standards and consistently applied accounting practices adequate to reflect the operations, resources and expenditures related to the project until the Financing Closing Date, and shall retain such accounts and records for at least ten (10) years thereafter.

The project will maintain its accounts in accounting software „Tally‟ as is being currently used by the UGVS. The books of accounts will be maintained by each divisional office of UGVS and WMD will be consolidated at the respective PD‟s office. The accounting will be a double entry accounting system and will use the cash basis of accounting in accordance with the International Public Sector Accounting Standards (IPSAS-Cash)

A uniform structure of accounts shall be prepared by the Finance Manager which will group the accounts by the Components and sub-components. The ledger accounts shall be based on the activities to be carried out. The grouping of each account shall be carefully done so that all expenditure under a component can be easily generated from the software. The FM shall also make use of the Cost Centre facility available in the software. The Categories of expenditures and the Financiers shall be used as Cost Centres. This will enable the project to generate expenditure statement by category and by financier.

Training from the software vendor should be obtained to understand the various features of the software and consequently to optimally utilize it. If required, customization may be sought from the vendor to generate reports in the formats required by IFAD. The customized Tally software can be implemented at all levels.

The PDs shall take periodical printouts of the books of accounts viz. Cash Book, Bank Book, Journal, Ledger, Trial Balance, Bank Reconciliation statement, expenditure by components and expenditure by categories. Regular back up of the data shall be taken and stored off site.

Besides the books of accounts the SPMU/ DPMUs shall maintain the following registers/ records (i) Register of procurements (ii) Register of fixed assets (iii) Register of advances (iv) Register of contracts (v) Contract monitoring forms (vi) Vehicle Log book (vii) Tax register (viii) Salary register (ix) Cheque issued register (x) Stock/ stationery register (xi) Tour register etc.

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The Project shall prescribe formats and get the books of accounts and other records, required to be maintained by LC, Federations, PG, GP .

I. Asset Management Proper record of fixed assets shall be maintained at the PMU and the DPMOs which shall include the date of purchase, the specification, the unique identification number, the location and the cost. In case assets are allocated to any staff member this should be mentioned in the asset register. The fixed assets shall be physically verified at least once in a year and the evidence thereof shall be recorded in the asset register. All assets procured by the project shall be adequately insured. The asset registers should be regularly reconciled with the books of accounts.

J. Financial Statements The DPMOs shall submit monthly statements to the PMU in prescribed formats which contains the expenditure by components, by categories, comparative statement of actual and budgeted expenditure, bank reconciliation statements, trial balance etc. by the 7

th of the month.

The FNGOs shall also send monthly progress report to the DPMOs which shall contain the financial progress viz. expenditure incurred by each activity and the management costs. Evidence in respect of salaries paid to staff shall be submitted by way of bank acknowledged advice for transfer of funds to the account of the staff. The FNGOs shall also submit quarterly utilization certificates to the PMU duly signed by the Project Co-ordinator and certified by their auditors. The FNGOs shall submit annual audited accounts to the SPMU within six months from the end of the financial year failing which subsequent instalments shall not be released.

The PMU will submit six-monthly progress and annual progress reports to IFAD and its co-financiers in English. These reports will use a predetermined format to be agreed at project start-up to provide essential information on the physical and financial progress of project activities and regular assessment of the project impact. Reports will be prepared at district level and consolidated at the by the PMU. All financial Statements of the operations, resources and expenditures relating to the project will be prepared by PMU for each fiscal year. These statements will be sent to IFAD within three months after the end of the fiscal year. The financial statements of the project will be prepared in accordance with the Cash Basis of Accounting Method of the International Public Sector Accounting Standards (IPSAS). The financial statements of the project for each fiscal year should consist of:

(i) statement of cash receipts and payments (by category) (ii) statement of cash receipts and payments (by components) (iii) statement of comparative budget and actual amount providing brief explanations for

variances greater than 20% (iv) yearly and cumulative statements of sources and application of funds, which should

disclose separately IFAD funds, Govt funds and beneficiaries funds; (v) the Balance Sheet which should disclose bank and cash balances, that agree with

the statement of sources and application of funds, fixed assets and liabilities and (vi) Yearly and cumulative SOEs by withdrawal application and category of expenditures. (vii) Notes to the Financial Statements

A template for furnishing PFS is given in Annex-1.7.1

Notes to the Financial Statements: In accordance with International Public Sector Accounting Standards (IPSAS), notes to the financial statements of an entity should:

a) Present any information about the basis of preparation of the financial statements and the specific accounting policies selected and applied for significant transactions and other events, and

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b) Provide additional information which is not presented on the face of the financial statements but is necessary for a fair presentation of the entity‟s cash receipts, cash payments, cash balances and other statements as statement of financial position

K. Annual Audit and Internal Audits The accounts of the Project for each Fiscal Year shall be audited by independent auditors acceptable to IFAD. The audit shall be in accordance with Article 9 of the IFAD‟s General conditions and the IFAD‟s Guidelines on Project Audits. The appointment of the auditor shall be through a fair, transparent and competitive process and within 90 days after loan effectiveness for the first year and also for each of the subsequent years of the project period.

Auditors should not be appointed as consultants responsible for designing accounting and control systems on which they would be required to comment. Such appointments would create a conflict of interest and create a risk that auditors might not report shortcomings in the project.

The PMU shall prepare a TOR for selection of the auditors and send the same to IFAD for approval. The TOR should follow the IFAD Guidelines on Project Audit (which also includes a template for project‟s consideration). On receipt of the approval the PMU shall conduct the selection process subject to IFAD prior review and convey to IFAD the name of the auditor appointed and the selection process adopted. The agreed time frame for appointment of the auditor in accordance with the financing agreement will be adhered to.

In making a proposal for appointment of a private auditor, the project should provide IFAD with relevant supporting documentation and should address the following questions:

i. Does the firm adhere to internationally accepted auditing standards? The firm‟s audit procedures and methods should ensure compliance with such standards. ii. Is the firm independent of the project entity to be audited and of the people appointing the auditor? iii. What is the legal status of the firm? This includes such aspects as partners‟ status and any limited liability provision in the firm‟s articles. iv. Are any of the assigned audit staff employed by or closely linked to the project entity to be audited, or to any government body or public agency? v. Can the auditor confirm that there is no conflict of interest or lack of independence implicit in accepting the appointment? vi. Is the auditor committed to providing qualified and experienced staff that can ensure timely submission of audit reports?

The auditors shall adopt the Standards of Auditing acceptable to IFAD and the Government while auditing and reporting on the Project Accounts. The accounting and auditing standards adopted should be disclosed in the notes to the accounts. The audit report shall contain a clear expression of the auditor‟s opinion regarding the financial statements. It should include a financial statements audit, a compliance audit and should include a Management Letter. It should also include a section on the project‟s compliance with loan covenants, particularly those dealing with financial matters. The auditor shall review the project accounts including the financial statements and the SOEs and give an opinion on the same. In addition the audit report shall address (a) the adequacy of accounting and internal controls, including the internal audit mechanism, for monitoring expenditures and other financial transactions and ensuring safe custody of the project assets and (b) the adequacy of documentation maintained by the project for all transactions. Through the management letter, the auditor will identify deficiencies in the project accounting records, procedures, systems and internal controls and make appropriate recommendations for improvement. It will also include any significant matters that come to the auditor‟s attention and might have a material impact on project implementation.

In reviewing the project accounts and financial statements, the auditor will:

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verify that acceptable accounting standards have been consistently applied and indicate any material deviation from these standards, and the effect of such deviation on the annual financial statements;

assess the adequacy of accounting and internal control systems (procedures and responsibilities) for monitoring expenditures and other financial transactions (commitment, review, approval, payment and accounting) and ensuring safe custody of project-financed assets, and document any instances where controls are lacking or need strengthening;

Determine whether the PMU/DPMOs has maintained adequate documentation for all transactions; e.g. procurement documents, contracts, suppliers. invoices, letters of credit and evidence of payment, and ascertain that expenditures were properly authorized and in compliance with legal requirements;

verify the numerical accuracy of statements and accounts;

verify that disbursement requests for expenditures submitted to IFAD are eligible for financing under the loan agreement, and identify clearly any ineligible expenditures; and

Carry out a physical verification of any significant assets purchased and confirm their existence and use for project purposes.

report on the status of implementation of recommendations issued in the previous years

The auditor shall discuss the findings in the form of a draft report with the project's finance and accounts department and the Project Director. The auditor shall consider and include the response of the project in the final report.

The audited statement of accounts along with the audit report and the Management Letter shall be furnished by the project to IFAD within six months of the end of each Fiscal Year. The auditor shall discuss the draft management letter with the Project Coordinator and include the Project‟s replies/comments in the final version of the management letter. In any case, the project shall submit to the auditors and IFAD the reply to the management letter of the auditors within one month of receipt thereof.

The Project shall maintain a Log of Audit Observations made by the auditors and also a Table of Summary Status of Audit Observations and get it validated by the auditor during the subsequent audit or earlier. The specific requirements to timing of the appointment of the auditors and deadlines for submission of audit reports are found in the IFAD Guidelines on Project Audits. While, the conduct of project audit is the responsibility of the Government, it will keep IFAD informed at various stages of the audit process.

Special/Designated Account Statements - As agreed with the Government of India during Loan Negotiations, the audit of the Special/Designated Account will be done by the Office of the Controller of Aid Accounts and Audit separately.

If the findings of the review of the audit gives cause for concern IFAD will send as soon as possible, and in any case no later than 60 days from the receipt of the audit report, send a letter to the Government, notifying the Government of the nature of the concerns and requesting clarification or follow-up as appropriate.

In case of non-compliance with audit requirement, IFAD may choose to engage an independent auditor of its choice and/or suspend disbursement and close the loan.

Ineligible Expenses: If the auditors during the course of their review find ineligible expenses, these will be reported as an exception regardless of their materiality. If the ineligible expenditures are immaterial and if the project agrees on the auditor‟s review, IFAD recommends immediate correction, in order to avoid unnecessary qualifications. If SOEs are found to include ineligible expenditures, the borrower will be required to refund the amounts in question.

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Besides the Statutory Audit required to be carried out every year, the project shall appoint independent Chartered Accountants to undertake internal audit at all implementing levels from the first year of its operations. The appointment of the internal auditor shall be through a fair, transparent and competitive process. The internal auditors will, besides the financial audit, will review the systems of internal control and suggest improvements, if required, thereto. The internal audit should also include statutory compliances. The Internal Auditor will submit quarterly reports simultaneously to the State Project Director and the IFAD CFS. Corrective follow up action will be decided jointly by a committee which includes the PD, the Finance Manager at the PMU and the Internal Auditor.

The action taken report shall be submitted to the PD and the internal auditors. The internal auditors will evaluate action on previous internal audit reports, and effectiveness thereof and report on the compliance thereof in the subsequent report. The terms of reference of the Internal Auditors are given in Annex-1. 7.2 and 1.7.3.

L. Project Completion The Project will be completed and loan closed as specified in the Finance Agreement.

Withdrawal Applications may be continued to be submitted up to the Loan Closing date i.e. six months after the project completion date.

Only payments made, or payments due for goods, works and services, which have been provided prior to the project completion date, qualify for disbursement. The only additional expenditures allowed are for winding up activities (salaries, audit fees, project completion report)

No replenishment will be made after the project completion date.

The Special/Designated Account recovery will begin early enough to ensure that no balance remains in the special/designated account at the closing date.

The following three steps will be adhered to for loan closing: (i) final statement of accounts, (ii) preparation of final audit report, and (iii) preparation of Programme Completion Report

IFAD Policy on Anti-Corruption and Fraud: IFAD‟s policy to require that the staff of IFAD, and (including beneficiaries of IFAD loans) as well as all bidders, suppliers, contractors and consultants under IFAD-financed contracts observe the highest standard of ethics and integrity during the procurement and execution of such contracts. Mechanisms for the whistle-blowers to access IFAD systems are provided at the following link: http://www.ifad.org/governance/anticorruption/how.htm (Recommendation 12 of FA assessment)

http://www.ifad.org/governance/anticorruption/how.htm

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Annex-1.7.1: Sample of Project Audited Financial Statements

SAMPLE OF PROJECT AUDITED FINANCIAL STATEMENTS

Project Name: India/Integrated Livelihood Support Project

Implementing Agency: ……………………… IFAD Loan Number……………………..

PROJECT FINANCIAL STATEMENTS

FOR THE YEAR ENDED MARCH 31, 20XX

Prepared in accordance with the Cash Basis of Accounting Method

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PROJECT NAME: ILSP IFAD Loan Number:

FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 20XX

CONTENTS PAGE Project Information and performance Statement of project management responsibilities Report of the independent auditor Statement of cash receipts and payments (by category) Statement of cash receipts and payments (by component) Statement of comparative budget and actual amount SOE-Withdrawal Application Statement Notes to the Financial Statements

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PROJECT NAME AND NUMBER PROJECT INFORMATION AND PERFORMANCE

Institutional Details/Information: Implementing agency, status, location, names, account numbers and address of bankers (Special and Project accounts) name and address of independent auditors

Members of the Project Coordinating Unit: Names and roles

Background Information on the Project: Source of financing: size of Loan/Grant(s), effective and closing date(s)

Project Objectives: As per Design Completion/Appraisal Report

Project Costs: By component and category of expenditures as per Financing Agreement and Design Completion/Appraisal Report

Summary of Performance: Physical progresses as per Progress/Supervision Reports

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PROJECT NAME AND NUMBER

STATEMENT OF ACCOUNTING OFFICER AND PROJECT COORDINATOR‟S RESPONSIBILITIES

243

(INDEPENDENT AUDITOR‟S LETTERHEAD)

REPORT OF THE INDEPENDENT AUDITORS

(Consolidated auditor‟s report on the Project Financial Statements and the SOEs Opinion)

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STATEMENT OF RECEIPTS AND PAYMENTS (BY CATEGORY OF EXPENDITURES)

FOR THE YEAR ENDED March 31, 20XX

Notes 20XX 20XX-1 Cumulative

to date

Local

currency Local

currency Local

currency

Balance B/F 4 XXX XXX

FINANCING

IFAD Credit 5 XXX XXX XXX

Government Funds 6 XXX XXX XXX

Other Donors 7

Other Receipts 8

TOTAL FINANCING XXX XXX XXX

PROJECT EXPENDITURES:

(BY CATEGORY OF EXPENDITURES)

Cat IFAD CREDIT

1 AAA 9 XXX XXX XXX

2 BBB 9 XXX XXX XXX

3 CCC XXX XXX XXX

4 DDD XXX XXX XXX

5 EEE XXX XXX XXX

6 GGG XXX XXX XXX

7 HHH XXX XXX XXX

8 LLL XXX XXX XXX

XXX XXX XXX

Government Funds

1 AAA XXX XXX XXX

2 BBB XXX XXX XXX

TOTAL XXX XXX XXX OTHER FINANCIERS

1 AAA XXX XXX XXX

TOTAL PROJECT EXPENDITURES XXX XXX XXX

BALANCE C/F 4 XXX XXX XXX

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STATEMENT OF RECEIPTS AND PAYMENTS (BY COMPONENT)

FOR THE YEAR ENDED MARCH 31, 200X

Notes 200X 200X-1 Cumulative

to date

Local

currency Local

currency Local

currency

Balance B/F 4 XXX XXX

FINANCING

IFAD Credit 5 XXX XXX XXX

Government Funds 6 XXX XXX XXX

Other Donors 7

Other Receipts 8



(BY COMPONENT)

Comp IFAD CREDIT

A AAA XXX XXX XXX

B BBB XXX XXX XXX

C CCC XXX XXX XXX

XXX XXX XXX

Government Funds

A AAA XXX XXX XXX

B BBB XXX XXX XXX

TOTAL XXX XXX XXX

OTHER FINANCIERS AAA TOTAL PROJECT EXPENDITURES XXX XXX XXX

BALANCE C/F 4 XXX XXX XXX

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STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS


20XX

Budget 20XX

Actual Variance

Notes INR Local currency

Local currency

Local currency

XXX XXX XXX

FINANCING

IFAD Credit XXX XXX XXX

Other financiers XXX XXX XXX

Government Funds XXX XXX XXX



(BY CATEGORY OF EXPENDITURES)

Cat IFAD CREDIT

1 AAA XXX XXX XXX

2 BBB XXX XXX XXX

3 CCC XXX XXX XXX

4 DDD XXX XXX XXX

5 EEE XXX XXX XXX

6 GGG XXX XXX XXX

7 HHH XXX XXX XXX

8 LLL XXX XXX XXX

XXX XXX XXX

Government Funds

1 AAA XXX XXX XXX

2 BBB XXX XXX XXX

TOTAL XXX XXX XXX

OTHER FINANCIERS

AAA XXX XXX XXX

TOTAL PROJECT EXPENDITURES XXX XXX XXX

Surplus/Deficit for the period XXX XXX XXX

The excess/deficit of actual expenditures over the Budget of X% was due to….

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SOEs-WITHDRAWAL APPLICATION STATEMENT


by Category of Expenditures in Local Currency

Category description

Category description Total

In USD Equivalent

Rejected from IFAD Net Reimbursed

Cat No 1 2

WA No:

XXX XXX XXX XXX XXX XXX




Total XXX

WA Pending for Submission:

WA No: XXX XXX XXX XXX XXX XXX


XXX

TOTAL XXX XXX XXX XXX XXX XXX

Withdrawal Applications are submitted for reimbursement to IFAD using the historical exchange rate of the transfers to the Operating Account Expenditures partially or totally rejected by IFAD (if any) should be detailed here. This statement should be reconciled with the Statement of Receipts and Payments.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 20XX

1. FINANCIAL REPORTING UNDER CASH BASIS OF ACCOUINTING

In accordance Cash Basis of Accounting, notes to the financial statements of an entity should:

Present any information about the basis of preparation of the financial statements and the specific accounting policies selected and applied for significant transactions and other events, and

Provide additional information which is not presented on the face of the financial statements but is necessary for a fair presentation of the entity‟s cash receipts, cash payments, cash balances and other statements as statement of financial position

2 SIGNIFICANT ACCOUNTING POLICIES The principle accounting policies adopted in the preparation of these financial statements are set out below:

A Basis of Preparation The financial statements have been prepared in accordance with Cash Basis Financial Reporting under the Cash Basis of Accounting B Cash Basis of Accounting The cash basis of accounting recognizes transactions and events only when cash is received or paid by the entity. C Foreign Currency Transactions Foreign currency translation for the income and expenditure account items are converted using the actual historic exchange rate at the conversion from special to local account. Where part of the expenditures has to be met from the proceeds of subsequent draw downs from special to local account, this is done on First in First out (FIFO) basis. All local expenditures paid from the local accounts/currency are translated back to the USD at the actual rate used for the transfer from special to local account. Cash balances held in foreign currency are reported using the closing rate. Gains/Losses on foreign currency transactions/balances are dealt within the Statement of Special Account Activities

3 BUDGET

The budget is developed on the same accounting basis (cash basis), same classification and for the same period as the financial statements. Material variances (above XXX) have been explained as notes to the financial statements

4 CASH/FUND BALANCES Reconciliation

200X 200X-1

Loc

currency Loc

currency

Cash Accounts XXX XXX

Advances XXX XXX

XXX XXX

Analyses of aging of advances to be included detailing and providing reasons for long outstanding advances

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4-a CASH DETAILS

200X 200X-1

Loc

currency Loc

currency

A/c No______ Project Operating Account XXX XXX A/c No_______ IFAD Special Account (as per SA Statement) XXX XXX

Petty cash XXX XXX

XXX XXX

5 IFAD CREDIT

IFAD credit is represented by budget transfers executed from the State or Federal Government as advance for project‟s activities to be charged to IFAD, or refund of project‟s expenditures falling under IFAD related financing. IFAD credit can be also represented by payments made directly by IFAD from the Loan/Grant account to the specified supplier/service provider in accordance with the terms and conditions of the Financing Agreement. Details on the use of the Special Account/Designated Account are provided in the annual Audit Certificate prepared by the Controller of Aid Accounts & Audit Office (CAA&A)

Include here details of direct payments WA, Date, currency and amount received, amount in local currency

6 GOVERNMENT COUNTERPART FUNDS

Details here; Cumulative contributions, yearly contributions (compared to budget). For information

only Include details of tax treatment and counterpart contributions as tax exemption.

7 OTHER DONOR FUNDS

200X 200X-1

Loc

currency Loc

currency

List of Donors XXX XXX

XXX XXX

XXX XXX

XXX XXX Add details of cumulative and expected contributions 8 OTHER RECEIPTS

200X 200X-1

Loc

currency Loc

currency

Interest Income XXX XXX

other income (specify) XXX XXX

XXX XXX

XXX XXX

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9 NON-CURRENT ASSETS (for disclosure purposes only)

Financial Statement Currency

Cat 1 -

Infrastructure Cat 2 Vehicles Cat 3-

Equipment

200X 200X-1 200X 200X-1 200X 200X-1

Opening Balance XXX XXX XXX XXX XXX XXX

Additions (Statement of Receipts and Payments) XXX XXX XXX XXX XXX XXX

Disposals XXX XXX XXX XXX XXX XXX

Closing Balance XXX XXX XXX XXX XXX XXX

This schedule includes all assets acquired from the commencement of the Project. These assets are stated at cost. Existence and beneficial ownership to be verified by the auditors

Apart of the summary schedule, details schedules for yearly changes to be included.

10 YEARLY PROCUREMENTS Include here a list of the yearly procurements including methods

11 ALLOCATION AND USE OF THE FUNDS OF THE LOAN

Allocated Disbursed Available Balance

Category Amount SDR

Equivalent USD (or otherwise)

Amount SDR


Amount SDR


AAA XXXX XXXX XXXX XXXX XXXX XXXX

BBB XXXX XXXX XXXX XXXX XXXX XXXX

CCC XXXX XXXX XXXX XXXX XXXX XXXX

DDD XXXX XXXX XXXX XXXX XXXX XXXX

EEE XXXX XXXX XXXX XXXX XXXX XXXX

FFF XXXX XXXX XXXX XXXX XXXX XXXX

XXXX XXXX XXXX XXXX XXXX XXXX

12 RECONCILIATION OF FUNDS DISBURSED BY IFAD AND FUNDS RECEIVED BY THE

PROGRAMME Reconciliation here

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Annex-1.7.2: ToR for External Auditor- UGVS Introduction Integrated Livelihood Support Project (ILSP) will follow on from the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. ULIPH Project has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society established by the Rural Development Department, and Uttarakhand Parvtiya Aajeevika Sanvardhan Company (UPASaC), a social venture capital company. Rationale: 2. The justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provideincentives for people to invest their time and resources in agriculture. Despite the disadvantages thatagriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures athigher altitudes, allowing production of out of season vegetables and temperate fruits. Thehorticultural sector is less developed than in the other hill states, so there is considerable potential forgrowth, as there is scope in other niche products as well such as spices, medicinal and aromatic plants, and nuts. Another area with growth potential is tourism. However more needs to be done to ensure that localpeople fully participate in, and benefit from, this sector. The population is well educated, but the levelof youth unemployment is relatively high. Therefore better vocational training could also help such people find goodquality employment in the growth sectors of the country. Objectives 3. The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand. Thiswould be achieved via the more immediate development objective of “enable rural households to takeup sustainable livelihood opportunities integrated with the wider economy”. The strategy behind ILSP is to adopt a two pronged approach to building livelihoods in hilldistricts. The first of these is to support and develop the food production systems which remain themain means of support for most households. The second main thrust of the project is to generatecash incomes via the introduction and expansion of cash crops. These would be grown on asignificant scale for markets outside of the state. ILSP will also support non-farm livelihoods,especially community involvement in rural tourism, and vocational training. Activities under Food security and livelihood enhancement component 4. This component to be implemented by UGVS, will support cropand livestock production for food security, and develop higher value cash crops and other products(such as rural tourism) to provide cash incomes. Crop and livestock production will be developed viasupport to Producer Groups (PG) and higher level organizations (Livelihood Collectives - LC) formedby a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new incomesources. ILSP will also improve access to markets through a value chain approach and the provisionof physical infrastructure for market access. The value chain approach involves market/sub-sectorstudies, introduction of new technologies, market linkage, skill development, product development andpromotion, physical infrastructure for market access, etc. 5. These activities will cover 64.175 householdsin 26 blocks (i.e. 17 blocks of ULIPH Project implemented by UGVS in 5 districts and 9 new blocks in these five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement.

SCOPE OF WORK / AUDIT OBJECTIVES The objective of the audit of the financial statements is to enable the auditor to express a professional opinion on the financial position of the company at the end of each fiscal year and of the funds received and expenditure incurred for the accounting period 1

st April to 31

st

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March, as reported in the project financial statements, including an opinion on the statements of expenditure.

The audit should be carried out in accordance with Standard Auditing practices prescribed by the Institute of Chartered Accountants of India in line with the International Standards on Auditing and the Fund‟s Guidelines on Project Audit and includes such tests and reviews as the auditor considers necessary under the circumstances. The auditor while auditing the financial statements of the project should indicate the basis of accounting applied by the Project while paying special attention.

To check whether the funds received from IFAD have been used in accordance with the conditions stipulated in the IFAD Loan agreement with due attention to economy and efficiency and solely for the purpose for which the financing was provided.

To verify whether the share of Government of Uttarakhand (counterpart funds) have been released and utilized in accordance with the rules and regulations with due attention to economy and efficiency and solely for the purpose for which they were provided.

To confirm whether the goods, consultancy and other services, and civil works financed out of project funds have been procured in accordance with stipulations in the IFAD loan agreement.

To ensure whether all necessary supporting documents, records and accounts have been kept in respect of all projects.

To form an opinion as to the preparation of project accounts in accordance with consistently applied standard accounting practices and give a true and fair view of the financial status of the project at the end of the financial year and the resources and expenditure for the year.

To verify the fixed asset registry and accuracy of the assets maintained by the Project, including any changes to the fixed assets register, such as deletions or additions and also verify frequency of physical verification of assets.

To verify and provide clearances as applicable on the status of prior years audit observation and the actions taken by the Project and report on the outstanding observations and actions to be taken.

OUTPUTS OF THE CA FIRM

The auditor while auditing the project financial statements should be submitted the following reports & Documents: -

1. Audit Report of Head Office & five districts (Consolidated & Individual) 2. Balance Sheet of Head Office & five districts (Consolidated & Individual) - Discloses

fixed assets and liabilities and bank and cash balances agreeing with the statement of sources and application of funds

3. Receipt & Payment Accounts of Head Office & five districts (Consolidated & Individual)

4. Income & Expenditure Accounts of Head Office & five districts (Consolidated & Individual)

5. Reconciliation of the Bank Account & Head Office with District units and 6. Sources and Application of funds (yearly and cumulative) discloses separately the

IFAD‟s funds, Government of Uttarakhand, Banks/MFI and Beneficiaries funds 7. Statement of Expenditure (yearly and cumulative) by withdrawal application and

category of expenditure 8. Management Letter - The auditor will provide a management identifying any audit

observation/deficiencies in the project accounting records, procedures, systems, and internal controls and make appropriate recommendations for improvement. The

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management letter will also include any other significant matters that come to the auditor‟s attention and might have material impact on project implementation.

TIME FRAME & REPORTING

The audit report should include an opinion on Project Financial Statements and separate opinions on SOEs indicating the procedures and internal control. The auditor should prepare a certificate covering all these aspects and submit their Audit Report on or before 31

st July ........

In case there are certain audit observations in the report and in the management letter, the company should prepare an Action taken report. The audit report and the Action taken report should be submitted to IFAD on or before 30

th September ..........

PAYMENT TERMS Payment of Consultancy service will not exceed the tender amount and will be paid with 15 days from receipt of Invoice & Audit Report with all related documents.

RECONCILIATION OF UTILIZATION OF FUNDS The project will prepare a statement showing a reconciliation between the amounts shown as received by the project and those shown as being disbursed by IFAD and attach as an annexure to the project financial statement. As part of that reconciliation, the auditor should indicate the procedure used for disbursement- Special Account funds, letters of credit, special commitments, reimbursement or direct payment and indicate whether the expenditure is fully documented.

STATEMENT OF EXPENDITURES (SOE) In addition to the audit of the PFS, the audit will include a review of SOEs used as the basis for submitting withdrawal applications. The auditor will carry out tests and reviews as necessary and relevant to the circumstances. SOE expenditures will be carefully compared for eligibility with relevant financial agreements, and the disbursement letter, and with reference to the project appraisal report, and AWPB for guidance when necessary.

Where ineligible expenditures are identified as having been included in withdrawal applications and reimbursed, auditors will note these separately. A schedule listing individual SOEs withdrawal applications by reference number and amount should be attached to the PFS. The total withdrawals under the SOE procedure should be part of the overall reconciliation of IFAD disbursements described above.

GENERAL The auditor will be given access to all legal documents, correspondence, and other information in connection with the project as deemed necessary for audit. It is desirable that the auditor be familiar with the IFAD audit guidelines, F&A rules and financial reporting (relevant

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Annex-1.7.3: ToR for External Auditor- UPASaC

BACKGROUND The Company is named as the „UTTARAKHAND PARVATIYA AAJEEVIKA SANVARDHAN COMPANY‟ (UPASaC) and is being initiated in the Uttarakhand State through Rural Development Department of Government of Uttarakhand (GoU) and Uttarakhand Gramya Vikas Samiti (UGVS) from March 2006 with the support of the International Fund for Agricultural Development (IFAD). IFAD is an International funding agency and providing a loan to the Government of India on highly concessional terms for developmental activities under the ULIPH Project. The UPASaC, a Social Venture Capital Company (SVCC), registered under the Companies Act, 1956 on 29

th March 2006,

license under Section 25 of the Companies Act obtained. Integrated Livelihood Support Project (ILSP) will follow on from the UttarakhandLivelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. UPASaC is one of the three implementation agencies of ILSP. RATIONALE The justification for ILSP is the need to stop the deterioration of the productive nfrastructure, make farm labour more productive and farming more remunerative, and hence provideincentives for people to invest their time and resources in agriculture. Despite the disadvantages thatagriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures athigher altitudes, allowing production of out of season vegetables and temperate fruits. Thehorticultural sector is less developed than in the other hill states, so there is considerable potential forgrowth, as there is scope in other niche products as well such as spices, medicinal and aromatic plants, and nuts. Another area with growth potential is tourism. However more needs to be done to ensure that localpeople fully participate in, and benefit from, this sector. The population is well educated, but the levelof youth unemployment is relatively high. Therefore better vocational training could also help such people find goodquality employment in the growth sectors of the country. OBJECTIVES The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand. Thiswould be achieved via the more immediate development objective of “enable rural households to takeup sustainable livelihood opportunities integrated with the wider economy”. The strategy behind ILSP is to adopt a two pronged approach to building livelihoods in hilldistricts. The first of these is to support and develop the food production systems which remain themain means of support for most households. The second main thrust of the project is to generatecash incomes via the introduction and expansion of cash crops. These would be grown on asignificant scale for markets outside of the state. ILSP will also support non-farm livelihoods,especially community involvement in rural tourism, and vocational training. COMPONENT 3 : LIVELIHOOD FINANCING This component is to be implemented by UPASAC. Despite making significant strides infinancial viability, banks have not been able to provide significant numbers of poor households withbasic financial services. The activities under this component include: Banking support – capacity building, expansion of branches of SKGFS, Risk management – piloting and scaling up of insurance services, Financial inclusion initiatives – training to LC to be bank agents, product literacy training, Provision of development finance via UPASAC including loan and quasi equity funding These activities will cover 64,175 households in 26 blocks (i.e, 17 blocks of ULIPH Project in 5 districts and 9 new blocks in these five districts.

SCOPE OF AUDIT WORK AND OBJECTIVES: The objective of the audit of the financial statements is to enable the auditor to express a professional opinion on the financial position of the company at the end of each fiscal year and of the funds

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received and expenditure incurred for the accounting period 1st April to 31

st March, as reported in the

project financial statements, including an opinion on the statements of expenditure.

The audit should be carried out in accordance with Standard Auditing practices prescribed by the Institute of Chartered Accountants of India in line with the International Standards on Auditing and the Fund‟s Guidelines on Project Audit and includes such tests and reviews as the auditor considers necessary under the circumstances. The auditor while auditing the financial statements of the project should indicate the basis of accounting applied by the Project while paying special attention.

1) To check whether the funds received from IFAD have been used in accordance with the conditions stipulated in the IFAD Loan agreement with due attention to economy and efficiency and solely for the purpose for which the financing was provided.

2) To verify whether the share of Government of Uttarakhand (counterpart funds) have been released and utilized in accordance with the rules and regulations with due attention to economy and efficiency and solely for the purpose for which they were provided.

3) To confirm whether the goods, consultancy and other services, and civil works financed out of project funds have been procured in accordance with stipulations in the IFAD loan agreement.

4) To ensure whether all necessary supporting documents, records and accounts have been kept in respect of all projects.

5) To form an opinion as to the preparation of project accounts in accordance with consistently applied standard accounting practices and give a true and fair view of the financial status of the project at the end of the financial year and the resources and expenditure for the year.

6) To verify the fixed asset registry and accuracy of the assets maintained by the Project, including any changes to the fixed assets register, such as deletions or additions and also verify frequency of physical verification of assets.

7) To verify and provide clearances as applicable on the status of prior years audit observation and the actions taken by the Project and report on the outstanding observations and actions to be taken.

OUTPUTS OF THE CA FIRM

The auditor while auditing the project financial statements should be submitted the following reports & Documents:

Audit Report of Head Office & five districts (Consolidated & Individual)

Balance Sheet of Head Office & five districts (Consolidated & Individual) - Discloses fixed assets and liabilities and bank and cash balances agreeing with the statement of sources and application of funds

Receipt & Payment Accounts of Head Office & five districts (Consolidated & Individual)

Income & Expenditure Accounts of Head Office & five districts (Consolidated & Individual)

Reconciliation of the Bank Account & Head Office with District units and

Management Letter - The auditor will provide a management identifying any audit observation/deficiencies in the project accounting records, procedures, systems, and internal controls and make appropriate recommendations for improvement. The management letter will also include any other significant matters that come to the auditor‟s attention and might have material impact on project implementation.

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AUDITS

TIME FRAME & REPORTING The audit report should include an opinion on Project Financial Statements and separate opinions on SOEs indicating the procedures and internal control. The auditor should prepare a certificate covering all these aspects and submit their Audit Report on or before 31

st July .......

In case there are certain audit observations in the report and in the management letter, the company should prepare an Action taken report. The audit report and the Action taken report should be submitted to IFAD on or before 30

th September .......

PAYMENT TERMS Payment of Consultancy service will not exceed the tender amount and will be paid with 15 days from receipt of Invoice & Audit Report with all related documents.

GENERAL The auditor will be given access to all legal documents, correspondence, and other information in connection with the project as deemed necessary for audit. It is desirable that the auditor be familiar with the IFAD audit guidelines, F&A rules and financial reporting (relevant extract will be provided).

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Annex-1.7.4: ToR for Internal Audit A.1.The Internal Auditor(s) is/are expected to be familiar with the following documents besides other Guidelines issued by IFAD from time to time :

Article 7 Section 1 (c) of the Agreement Establishing IFAD. Section 9.03 of IFAD‟s General Conditions for Agricultural Development Financing. April

2009. Letter to the Borrower dated __________ Project Financing Agreement dated _______________ IFAD‟s Loan Disbursement Handbook HILIP Project Implementation manual The IFAD Guidelines on Project Audits (for Borrowers‟ Use) of 2003. IFAD Guidelines on Financial Reporting for Annual Audited Financial Statements of Projects

dated 14 September 2005. ( FC/L 1) amended to date. IFAD‟s Procurement Guidelines & Draft Procurement Handbook Uttarakhand Procurement Regulations 2008 with project specific amendments for ILSP. IFAD‟s Loan and Grant Administration manual

B. Scope and Objectives of the Audit. B.1. The internal audit is an ex post review of the books of accounts, records of transactions and financial and other systems set up, maintained and consolidated by the CPCU and Implementing Agencies(IAs) namely UGVS, UPASaC & WMD.. The audit will also involve review of books, records, documents, systems and supporting evidence maintained by other implementing partners, WWMCs and NGOs, B.2.The audit is carried out in order to:

Provide assurance of accountability; Give credibility to the financial statements, accounting books and other management

reports. Critically evaluate the internal control systems in the Project, identify weaknesses if any

and suggest measures to strengthen these systems. Verify compliance with financing covenants relating to financial matters.

B.3.Correct and timely execution by the Borrower of this fiduciary responsibility is critical to ensuring that: (1) The proceeds of any financing for the Project are used only for the purpose for which the IFAD Loan / Grant is provided, with due attention to economy, efficiency and social equity; and (2) The Project will achieve their intended objectives within the allocated resources. Auditor‟s report should point out any problems and irregularities identified during the audit and make recommendations for improvement. B.4.The auditor will review PFS, SOEs, Special Account, government counterpart funds receipts, t Project Accounts (including sub accounts), if any, and present an opinion covering these elements. In addition the audit report will address:

The adequacy of accounting and internal controls, including the internal audit mechanism, for monitoring expenditures and other financial transactions and ensuring safe custody of project assets;

The adequacy of documentation maintained by the Project ( including 6 implementing agencies) for all transactions; and

Any other matters that IFAD/ CPCU may reasonably request. B.5. Project Financial Statements (PFS) refers to the financial statements of the project, usually for a fiscal year. They must show the financial status of the project and consist of:

o Statement of cash receipts and payments (by category)

o Statement of cash receipts and payments (by component)

o Statement of comparative budget and actual amount

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o Statement of Special Account Activities

o Statement of Special Account Reconciliations The formats for the PFS are enclosed in Annexure A. C. Specific Internal Audit Interventions. C.1.Integrity of accounting records C.1.1. Verification of vouchers maintained by the CPCU, 3 IAs at all implementation levels, NGOs and WWMCs with reference to the supporting documentation C.1.2.Verification of entries made by the 3 IAs at all implementation levels, in their accounting records from the vouchers C.1.3. Verification of accounting entries made by the CPCU in the consolidated books of accounts of the Project using accounting software on the basis of trial balances received from 3 IAs. C.1.4. Verification of Trial balance generated by the accounting software at the CPCU and at the 3 IAs. C.1.5.Verification of financial statements generated by the CPCU accounting software prior to submission for external audit C.2.Accounting Software C.2.1, Access Controls C.2.2. Back up C.2.3. Data Storage C.2.4. Testing with dummy data C.2.5.Transaction capacity C.3. Project assets C.3.1. Held in the name of the project C.3.2. Physical Verification C.3.3. Condition of the asset C.3.4. Used exclusively for the project C.3.5. Fixed assets Register C.3.6. Reconciliation of FAR with accounting records C.3.7. Documentation for transfer of assets from one site to another C.3.8. Labelling and tagging of assets C.3.9. Insurance C.3.10. Log books and fuel consumption C.4.Counterpart Funds C.4.1.Adequacy as per AWPB C.4.2.Timeliness as per LTB C.5. Procurement C.5.1. Adherence to UPR 2008 with project specific amendments as per design report. C.5.2. Adherence to IFAD Procurement Guidelines C.5.3. Adherence to IFAD Procurement Guidelines where the two are inconsistent C.5.4. Prior review of contracts by IFAD where required by LTB C.5.5. Certification of completed work or material supplied for quality Project technical staff C.5.6. Random verification of bid documents, advertisements, bids submitted, evaluation process and TEC recommendations, award of contract, contract agreement, measurement books, completion certification, progress payments and final payment for civil works undertaken by contractors. C.5.7. Review of procurement of consulting services with special emphasis on Terms of Reference, shortlist preparation, technical evaluation criteria and marking, factoring in of financial bid etc.l C.6.Contracts

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C.6.1. Register of contracts C.6.2. Contract Monitoring Record C.6.3. Timely completion and liquidated damages C.7.Withdrawal Applications C.7.1. Eligibility of expenditure C.7.2. Classification of expenditure C.7.3. Approval of expenditure C.7.4. % of funding as per Schedule 2 C.7.5. Exchange rate C.7.6. Supporting evidence C.7.7. Special Account Reconciliation C.7.8. Completeness and signature C.8.Financial Personnel C.8.1 Qualifications and experience C.8.2. Job description and TOR C.8.3. Organizational chart C.8.4. Interest and aptitude C.8.6.Staff vacancies C.8.7.Compensation C.8.8. Capacity building and training requirements C.9.Disbursements C.9.1. Disbursements by financiers C.9.2. Expenditure by project component and by financier C.9.3. IFAD loan disbursement by loan category C.9.4. Achievement against AWPB- current and cumulative C.9.5. Bottlenecks and solutions

C.10. Expenditure & payment approval C.10.1. Delegation of financial powers C.10.2. Adherence to approval process C.10.3. Approval of activity and comparison of budget against AWPB . C.10.4. Evidence of completion of activity/ delivery of goods or services C.10.5. Approval of Payment by PD/ CPD C.11. Funds flow. C.11.1. Timely preparation and submission of WAs C.11.2. Immediate transfer of funds received from IFAD to GoUK and then to Project account C.11.3. Prompt transfers to sub project accounts on the basis of quarterly work plans. C.11.4. Build up of advances at sub levels of IAs. C.11.5. Build up of advances with NGOs and WWMCs. C.12. Project Financial Statements C.12.1. In standard IFAD reporting formats C.12.2. Prepared on quarterly basis C.12.3. Reconciled with accounting software or generated from accounting software C.13.Others C.13.1. Beneficiary contribution and its recording and monitoring C.13.2. Follow up of previous audit observations C.13.3. Inspection of civil works undertaken under the project by LCS groups and contractors C.13.4. Random verification of trainees under training programs undertaken by the project C.13.5. Verification of adherence to Financial Standard Operating Procedures of each IA.

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C.13.6. Any other area which the Project Management may reasonably request to be covered. D. Audit Methodology. D.1.While conducting the internal audit of the project, the auditor will

Critically evaluate internal control systems throughout the project Conduct 50 % Cash/ Bank couching and 100 % Journal couching Conduct physical verification of all assets procured during the year Inspect 10 % of civil works in progress. A civil engineer will comment on quality of work

and measurements achieved and paid for. ( wherever applicable) Verify 100 % procurement files for assets 100 & of Consultants Procurement, 25 % for civil

works contracts, and 50 % of other contracts. A civil engineer give an opinion on estimated quantities and compare quoted rates with market prices in the case of works contracts wherever applicable.

Conduct surprise verification of cash in hand at all project points Verify bank reconciliation statements of all designated accounts and sub accounts Verify WWMC records in 20 % WWMCs Verify 50 % NGO records Verify 20 % SHG, 30 % Federation and 30 Micro Enterprise records

E. Internal Audit Reports and Follow up. E.1. Internal audit reports will be submitted for each calender quarter within 30 days from the end of the quarter. E.2. The report will cover each of the areas and sub areas listed in Section E of this TOR E.3.Each PMU will compile replies for each observation and prepare an Action Taken report within 30 days of receipt of the internal audit report. E.4. The internal auditor‟s comments on the Action Taken Report will be covered in the report for the next quarter. F. Selection of Auditor For UGVS & UPASaC the audit shall be undertaken by the Manager ( Audit) of the Project assisted by a team of 6 Compliance Auditors in strict compliance with the TOR. WMD may outsource the internal audit assignment to an independent firm of Chartered Accountants, selected through a fair, competitive and transparent process.

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Chapter-1.8: MONITORING & KNOWLEDGE MANAGEMENT

A. Planning Process

The Project would follow the planning process undertaken by the Forest and Rural Development Department of the State Government. In the third quarter of the financial year in the month of December /January the Central Project Coordinating Unit (CPCU) will request the Government to make budgetary provisions for the project based on a consolidated AWPB. A participatory process would be followed by the implementing agencies to draw up their AWPs. This exercise would also focus on performance planning. Each agency would prepare their respective procurement plans corresponding to their AWP. The CPCU compiles the AWPs and the procurement plans and sends it to the Government for approval in the month of February. The approved AWPB is then prepared in the IFAD AWPB format and sent to IFAD, along with the procurement plans, for approval. The approved AWPB would be used for reviewing performance and progress during the supervision missions. The first step to initiate participatory planning would be to make the communities aware of the various kinds of support and investments that the project will make under each component. Sensitisation about the project goal and objectives is an important step prior to need assessment, which has been missed out during the planning process in the ongoing ULIPH project. The second step is to assess the community needs and to support communities to priorities their needs and to realistically develop a perspective plan for a period of four years, keeping in view the different activities they can possibly take up under each project component. The project partner NGOs will take a lead in building a vision for planning and facilitate the process, with the full involvement of Gram Panchayats (GP), and the staff from the Division offices of UGVS and WMD, and from UPASAC. Once the community perspective plans are drawn-up, they will be made into annual plans. WMD will continue to adopt their existing watershed planning methodology including the use of GIS, and they will also share these maps with UGVS whenever necessary.

On the basis of these annual community plans UGVS, WMD and UPASAC will prepare the project management plan and send their respect AWPBs to the CPCU for preparing the Annual Work Plan and Budgets of the project. To ascertain high quality of participatory planning at the community level and consistent use of appropriate PRA tools across the project, training will be provided to all NGOs and Division level staff with the help of a reputed institute, which will be selected through competitive procurement process. In the event of non-availability of such an institute, the role will be performed by CPCU staff. The lessons and best practices from ULIPH and WMD planning methodologies will be also shared and adapted to the ILSP.

B. Monitoring & Evaluation System Monitoring and Evaluation in ILSP would be developed within the first year of the project as a tool for effective project implementation management. The objective of the tool is to collect reliable data and information for measuring performance and progress towards achievement of results; and to provide information about success and failures, so that corrective measures can be taken for successful implementation of project activities. It would be also used as a learning tool to provide information for critical reflection on project strategies and operations and supporting decision-making at various levels as a basis for results based management. During the initial years, the project monitoring system would provide information to see how the project activities are being implemented and what adjustments are required to be made in the course of implementation, and later as a tool to assess achievement of outcomes and impacts. The Project will recruit capable staff and build their capacities to make the M&E system effective and efficient.

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Components of the project will be implemented by UGVS, WMD and UPASAC, and these agencies will independently monitor the performance and progress of their own activities and outputs. Accordingly M&E plans will be drawn out by the respective agencies, supported by the Planning and M&E Manager in the Central Project Coordinating Unit (CPCU)

4. The project will develop (i) a

participatory M&E and social audit system as an analytical tool to capture changes at the beneficiary level and also to assess the performance of service providers and NGOs; (ii) an online/web based MIS; (iii) conduct evaluation studies (impact, AOS and KAP) to track project outcomes and assess impact; (iii) develop capacities for participatory M&E and the use of M&E information for project management for all staff at all levels – including the community and NGOs; (iv) conduct backstopping studies related to production systems in agriculture, horticulture and livestock, value chains, marketing, environment, rural financial services and NRM; (v) establish a sound learning system for documenting lessons learned and best practices as a link to overall knowledge management in the project.

The agencies will monitor physical and financial progress and generate monthly and quarterly reports, which will be complied and analysed by the CPCU to generate the project report. Additionally, the agencies would support partner NGOs to monitor their work and also undertake Participatory M&E and Social Audits at the community level. Monitoring of component outcomes at each agency level will be collaboratively undertaken by the CPCU with the use of quantitative and qualitative methods. The Impact evaluation surveys will be done three times in the life of the project, and will include RIMS anchor indicators. The M&E data and information will be stored and processed as part of the project MIS at the CPCU.

C. Project M&E Framework Output monitoring refers to the process of monitoring progress in the implementation of activities and achievement of outputs. Progress is reported against annual targets in the AWP for each project component. The output indicators in the project operational logical framework (which would be sub-divided into a logical framework for each of the implementing agencies

5) will form the basis for

monitoring. Physical and financial progress would be reported in monthly and quarterly monitoring reports, which will be compiled by the CPCU for preparing project level monthly, quarterly and annual reports. These reports will be fundamental outputs of the project MIS. The regularity and timely collection of physical versus financial progress data will build in financial accountability in the project. Data will be collected by NGOs from their respective working areas with tools designed by the project from training registers, account books, production books, Producer Groups, Livelihoods Collectives, vocational training institutes, Gram Panchayats, Water and Watershed Management Committees (WWMC), from contractors building rural infrastructure. Where necessary data will be collected disaggregated by gender and social groups (ST & SC), particularly those related to training and access to services. While implementing rural infrastructure components, contractual milestones would also be monitored, and information related to monitoring of contracts will form a part of the project MIS. NGOs will compile their data and send the information to the divisional project offices. M&E staff at the Division will check validity and consistency of data prior to analysis and production of reports and send the compiled data to the head project offices of the PIAs (Project Implementing Agencies) for analysis and reporting. The CPCU will compile the data from the PIAs and prepare the overall project report. The M&E matrix in Annex- 1.8.1 show key indicators at all levels. Participatory Monitoring and Evaluation at the community level would involve the M&E Managers, enumerators and NGOs at the Division to set up PME forums at the villages, introduce simple activity sequencing charts to WWMC, Producer groups (PGs) and Livelihood Collectives (LCs) to help the communities monitor their own progress, evaluate performance, identify implementation issues.

4 Staffing for the CPCU M&E unit and UGVS M&E staff are listed in Appendix 2. M&E staffing requirements are

based on the human resource requirement calculations in Appendix 3. 5 This is available for the WMD component as a Results Framework – see Working Paper 9, Appendix 2. For

UGVS a component logframe will be drawn up with participation of project stakeholders as part of the start-up

workshop.

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These forums will be also used for social audits of activities and associated expenditure involving community members, contractors and service providers that would also enable them to address issues associated with infrastructure and service provision at the Gram Panchayat (especially with regards to watershed development). The Participatory Monitoring and Evaluation process will be institutionalised in the project within the first three years by recruiting a national Consultant to support setting up of the PME systems at the community level by building capacities of communities, NGO and community facilitators as per the Terms of Reference in the draft PIM. Process monitoring involves monitoring the processes leading to outputs and outcomes through extensive field visits and inspections. With the support from CPCU M&E staff, NGOs will conduct qualitative assessments, attend PME forums and conduct studies along with community members. This will aim to ensure high quality of outputs, assess equity of benefits received and identify operational hurdles. Areas where such process monitoring will be useful include the outreach of financial services, provision of technical support, contract implementation, and access to inputs and resources. The watershed component places particular emphasis on process monitoring of participation in watershed development activities.

The effectiveness of training will be monitored by conducting KAP (Knowledge, Attitude and Practice) surveys each year. The Manager MIS at the PCU will coordinate with the M&E teams of UGVS and WMD to complete about 23 KAP surveys over the life of the project. Information on how to do KAP surveys is in the PIM. The processes and results from building institutions such as LC and WWMC may be monitored through a rating system using a number of indicators of management, financial strength, functioning and internal democracy. ULIPH has such a system for rating of Federations and this may be adapted for ILSP.

In addition, the Project will undertake specific studies related to food security, women‟s empowerment, market access, outreach of producer groups, value chain development, functionality of infrastructure, management of Livelihood Collectives (LCs), and inclusion of social groups such as ST and SCs and other disadvantaged groups. The Planning and M&E Manager in the CPCU will help UGVCS, WMD and UPASAC plan and implement such studies as part of the annual M&E plan. The process monitoring reports would be shared in monthly/quarterly meetings in the Division offices and state offices of UGVS, UPASAC and WMD. Outcome monitoring measures the immediate outcomes/effects resulting from project interventions – such as adoption of improved technologies, starting new enterprises, access to services and resources, and increasing farm output. In ILSP this would entail an annual outcome sample survey together with focus group and key informant interviews. The annual outcome survey will cover key logframe and 2

nd Level RIMS indicators.

The watershed development component will carry out Environmental and Social Safeguard Monitoring (ESMF). This will be integrated with the development and implementation of the village plans guided by the ESMF. Indicators such as water quantity and quality, soil quality, employment generated, improved income, fuel wood reduction and labour reduction will add strength to the evaluation of watershed interventions and also promote community participation in monitoring for sustainability and equity. Impact Evaluation is the process which will assess the contribution of ILSP in achieving the overall goal of the project. It will consist of baseline, mid-term and end-of-project surveys. This survey will be coordinated by the Planning and M&E Manager of the CPCU, and contracted to an external agency. Information to be collected will include the impact level indicators of IFAD‟s Results and Impact Monitoring System (RIMS). These include mandatory „anchor indicators‟ relating to household assets, food security and child malnutrition (anthropometric data of children under five years of age).

D. Annual Outcome Survey

IFAD is encouraging projects in the Asia Pacific Region to undertake annual outcome surveys to measure the immediate results of project implementation. These surveys are to be conducted annually, with the objective of: (a) regularly measure positive or negative changes taking place at the

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household level; (b) provide early evidence of project success and failure; (c) provide timely performance information so that corrective action can be taken if required; and (d) assess efficiency of targeting. This survey is conducted in areas where the project is intervening, with samples of 200 beneficiary households and 200 non-beneficiaries (those households that have not received project services as a control group). It is usually completed within 3 months. Annual outcome surveys for ILSP will be conducted separately in UGVS and WMD, with separate samples for households joining the project in the first three years of implementation, plus a control group. Each sample would be 200 households, so eventually there would be 3 x 2 project samples, plus 2 control samples, making a total of 8 x 200 =1600 households covered by the surveys. The survey in the first year for each group will create a baseline for tracking the indicators. Having a separate sample for each cohort (year-group) joining the project, will allow the outcomes of the project to be more precisely measured than if the sample included a mixture of households including those who had only recently joined.

Annual outcome survey questionnaires are short interviews with largely multiple choice questions, and lend themselves to electronic means of data collection. The questionnaire can be adjusted each year to cover emerging issues. The questionnaire survey would be carried out by the CPCU enumerators based in divisional offices. The survey is to be complemented by using qualitative assessments at the household level by conducting 10 to 15 focus group discussions and 10-15 key informant interviews. WMD and UGVS staff and NGOs may be involved in these qualitative assessments, and in drawing up the overall findings of each annual outcome survey. Table 1 shows the steps for conducting the annual outcome survey.

Table1: Steps for conducting the Annual Outcome Survey

Activity/steps Estimated

Duration

Responsibility

Step-1 Fine tuning of the standard survey

questionnaire and preparation of interview guides for qualitative

assessments (PIM and IFAD tool kit).

1-3 days Planning and M&E Manager and

Planning and M&E Manager in UGVS, and WMD

Step-2 Sample selection 1-3 days Planning and M&E Manager of UGVS and WMD. Lists to be provided by

enumerators from village authorities.

Step-3 Training of enumerators and field

testing of questionnaire and qualitative assessment guides

1-2 days Planning and M&E Manager and

enumerators

Step-4 Logistical planning, preparation for data collection

1-2 days Planning and M&E Manager , Planning and M&E managers of UGVS and WMD

Step-5 Data collection 1-3 days Enumerators and their supervisors

Step-6 Data Entry 1-2 days Planning and M&E Manager data

Statistical Analyst PCU

Step -7 Data analysis 1 week Planning and M&E Manager with support from Statistical Analysts in the

PCU

Step-8 Report Writing 1 week MIS Manger, Planning and M&E

Manager

Step-9 Communication and Sharing KS events

and dissemination

Planning and M&E Manager , KM

Managers in the UGVS and WMD

(Source: IFAD M&E Tool Kit 2011)

E. Impact Annual Outcome Surveys

Measurement of the achievement of the overall goal of poverty reduction will be sample surveys to be conducted at baseline, mid-term and end-of-project. The sample designed in such a way as to produce separate estimates for indicators of UGVS, WMD and control group households. Indicators will include the RIMS impact level indicators (household assets, housing quality, access to water and sanitation, land, livestock, farm equipment, use of farm tools, food security and child malnutrition). Information to be collected on these indicators may be expanded from that in the standard RIMS

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questionnaires to produce data which is more applicable to the project area and comparable with other surveys – for example frequency of consumption of different types of food. If it is felt that reasonably accurate data can be collected, indicators may include household income (using expenditure as a proxy measure). Indicators of women‟s empowerment will also be collected. Alongside the sample survey, the contracted agency will also carry out some case studies and focus group discussions to collect qualitative data. This would particularly cover issues such as women‟s empowerment, and would provide an understanding of the processes behind the changes observed in the sample survey. This work would be contracted out in a single package covering all three surveys, to an agency with experience in this type of socio-economic survey. The scope of work will include the following:

An initial rapid assessment to finalise indicators and sample design

An inception report describing the proposed approach, data collection tools and schedule of work.

The sample survey itself, including questionnaire development, data gathering, quality control, data entry, data analysis (including statistical tests), and reporting and interpretation of results.

Follow-up investigations using qualitative measures such as wealth ranking, case studies and focus group discussions.

Preparation of the draft report

Workshop with project stakeholders to discuss findings

Preparation of the final report. Draft terms of reference for this survey are included in Annex-1.8.1 to Annex-1.8.3. The M&E Matrix in Annexes provides an outline of the type of information and data sets that is required to be collected.

F. RIMS Indicators The Results and Impact Monitoring System of IFAD monitors and reports on first and second level results indicators that correspond to the output and outcome indicators of the logical framework (shown in Figure 2). Prior to mid-term review the project will report on the first level results and post mid-term report on second level results indicators. Table 2 shows how second level results will be rated and reported by the project post mid-term. These indicators will be finalised after referring to the logical framework and the RIMS section in the PIM.

Table 2: Reporting on RIMS Ratings

SECOND LEVEL RESULTS

Component Results Rating

Component 1: Food security and

livelihood enhancement

Effectiveness : producers benefiting from improved

market access Likelihood of sustainability of roads

constructed/rehabilitated Likelihood of sustainability of market, storage,

processing facilities Likelihood of marketing groups formed and strengthened

Effectiveness: creation of employment opportunities Likelihood of Sustainable enterprises

Likelihood Credit Groups formed and strengthened Effectiveness: Improved access of the poor to financial

services Sustainability: Improved performance of UPASaC

Effectiveness: Improved performance of service providers

Component 2: Watershed

Development

Effectiveness: Improved agricultural and livestock

production

Likelihood of Sustainability of groups managing

infrastructure formed/strengthened Effectiveness of productive infrastructure

Likelihood of sustainability of productive infrastructure Likelihood of sustainability of NRM groups formed and

strengthened

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Effectiveness of NRM and Conservation programme

Score Effectiveness Assessment Likelihood of Sustainability Assessment

1 Highly Unsatisfactory. The intended results are highly unlikely to be achieved. No further

resources should be committed until a new approach is devised. Consideration should be

given to cancelling component/output.

Very Weak. None of the supporting factors are in place. Sustainability is very unlikely.

2 Unsatisfactory. The intended results have not been achieved. Major corrections need to be

introduced.

Weak. Hardly any of the supporting factors are in place. Sustainability is unlikely.

3 Moderately Unsatisfactory. The intended

results have been achieved to a limited extent. Corrections need to be introduced to improve

performance.

Modest. Some of the supporting factors are in

place but they are not sufficient to ensure sustainability. Sustainability is unlikely.

4 Moderately Satisfactory. The intended

results have been partly achieved. Modifications should be introduced to improve

performance.

Moderate. Some supporting factors are in place

but additional support is needed to ensure sustainability.

5 Satisfactory. The intended results have been

achieved

Strong. The most important supporting factors

are in place. Sustainability factors are in place that will ensure sustainability

6 Highly Satisfactory. Intended results have

been surpassed. The implementation approach can be considered as a best practice

Very Strong. All supporting factors are in place

that will ensure sustainability. Sustainability is very likely.

The third level Results correspond to the impact assessment of the project. The United Nations agencies (FAO, IFAD and UNICEF) have accepted that the distribution of chronic under-nutrition at the national and sub national levels using stunting (height-for-age) in growth among children under the age of five as the indicator for prevalence of poverty. The prevalence of chronic malnutrition nutrition is considered a valid measure for endemic poverty and a better indicator than estimates of per capita income. It is an excepted view that stunting has a negative impact on the intellectual and physical development of children, compromising the development of human resources in poor countries; and persistent high prevalence of stunting among children indicates chronic failure in poverty alleviation. The reduction of chronic under nutrition will boost economic growth and alleviate poverty.

Figure 2: Annual, Baseline, Mid-term and Endline of Project RIMS reporting

1. Annual Reporting

Pre Mid-Term Projects Post Mid-term Projects

- Report on 1

st

level indicators - Take note of the revised methodology

- Report on 1

st

level indicators

- Report on 2

nd

level indicators

- Report ratings (Self-assessment)

2. Baseline, Mid-Term, Completion

- RIMS + Survey for Project Impact

Table 3: Millennium Development Goal and corresponding IFAD RIMS Indicators

Millennium Development Goal IFAD RIMS Indicator Measured by the

Household Survey

1. Eradicate extreme poverty Household asset index (poverty)

Child malnutrition (hunger)

2. Achieve universal primary education

3. Promote gender equality and empower women Female/male literacy

4. Reduce child mortality

5. Improve maternal health

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6. Combat HIV/AIDS, malaria & other diseases

7. Ensure environmental sustainability Access to safe water Access to improved sanitation

8. Build a global partnership for development

As per the National Family Health Survey May 2008 34% of the adult female and 33% adult male in the rural areas of Uttarakhand are under weight. This factor is also partly associated with poverty in the hills of Uttarakhand. State surveys conducted in Uttarakhand showed 61% children with any form of anaemia and NSSO 2004-05 in Uttarakhand showed 38% children were underweight, 29% wasted and 44% stunted. The indicators that are important to IFAD are called the “Anchor Indicators” and two of these are critical indicators that are linked to the MDGs.

Number of households with improvement in household assets ownership index. This measures relative wealth, proxy for income and positive change shows increase in economic status of participants.

Percentage reduction of Childhood Malnutrition. The RIMS impact measurement software reports three separate malnutrition variables for each child, and the population disaggregated by gender. These are:

- Chronic Malnutrition (Stunting) Height (cm)/Age (months)

- Acute Malnutrition (Wasting) Weight (kg)/height (cm)

- Underweight Weight (kg)/Age (months

The PIM includes an illustration of the process of conducting the anthropometric part of the RIMS survey, steps in conducting a baseline survey and calculating the „Z‟ Score for the three malnutrition indicators.

COSOP indicators: ILSP would also contribute to some of the indicators in the COSOP Results Framework. This framework is shown in Appendix 5, with those indicators relevant for ILSP underlined.

G. Special Studies

Studies that will be undertaken before mid-term review related to the following: (i) agribusiness and marketing (growth and development of value chains, and impact of market infrastructure); (ii) production and productivity (fodder development in livestock, cropping system studies in agriculture and horticulture crops); (iii) environment and NRM (impact of soil and water conservation measures, and impact of tourism on environment, precipitation, soil erosion, stream flow monitoring and flood discharge in micro-watersheds); and (iv) education and employment (impact of vocational education and employment on rural environment and economy). Cost effectiveness studies will be also undertaken to assess delivery systems and implementation methodology/approaches adopted by UGVS and WMD for implementing similar project activities. The cost effectiveness analysis could also cover more specific topics such as effectiveness of NGO facilitation, and the delivery of rural financial services and agribusiness services in different parts of the project area.

H. M&E Capacity Building Capacity building of project staff will be undertaken through structured orientation training programme, exposures and refreshers training, and information sharing. Orientation training will be done during induction of new staff, and the refresher training on a half yearly basis. This training will focus on

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building new skills as well as sharpening old skills related to project monitoring and evaluation. The refresher training reflect on the utility of the M&E system in generating relevant and timely information for project management, look at the quality of reports, and examine constraints faced by staff while collecting data. In addition, the project will also facilitate partnerships with training organisations (APMAS grant programme), consultants (KAP survey, impact surveys and PME technical assistance), and with other development projects, to exchange of information and learning. It will facilitate the use of the IFAD M&E tool kit. Table 4 shows an example of a framework for M&E capacity building. Orientation Training Module: This will give new project staff is to give them a good understanding of the project monitoring and evaluation system, and its use in managing for results. The training module would be designed to impart the necessary skills and knowledge, so that the project staffs are in a position to get the M&E system up and running. Training topics could include: M&E for Results Based Management; organising M&E activities during a year; data to collect for project performance indicators; ways to collect different types of data, source of data for different types of data; the use of data collection forms; storage of data; analysis and report writing. The training will include: qualitative methods of collecting data; triangulation of data from focus group and key informant interviews; case study preparation; combination of quantitative and qualitative information; and communication to different stakeholders. Special training on the use of KAP surveys, Annual Outcome surveys, wealth and wellbeing ranking for poverty monitoring will be conducted. Another topic is use of M&E information for the MIS and for management decisions. Special Technical Assistance Terms of Reference will be drawn up to facilitate and support for anthropometric surveys.

Table 4: M&E Capacity Building

Training Exposure Partnership Information/Knowledge

Orientation Training on RIMS, KAPS and Annual Outcome

surveys and the use of EpiSurveyor.

This will be followed by half-yearly refreshers training on

specific areas (e.g. EpiSurveyor, KAPS, physical and financial data

collection, etc) after reviewing effectiveness of the M&E system

in the first year. TA and Training for conducting

Anthropometric surveys through Institutional Support

Exposure to other IFAD Projects with

well established M&E system or

MIS (E.g. India and Bangladesh)

Partnership between

UGVS, UPASAC

WMD and NGOs

Sharing knowledge and experience through sharing

based on experiential learning.

Half-yearly reflection exercise and quarterly oversight by

the Planning and M&E Manager on the M& E system

to expand the understanding for improvement.

Sharing of good M&E reports to improve quality of reports.

Effective use of the IFAD M&E Tool Kit.

Refresher Training: As the need for M&E skills will change over time, and staff will also change, there will be a the need for refresher training. The purpose of this training is to keep up the M&E skills for project staff, and to meet their new and emerging skill needs. The refresher training workshops will also help in reviewing and updating the systems. Half-yearly refresher training and reviews will take

place for the first two years and subsequently be held once a year after every annual project reviews.

I. Technical Assistance for M&E

Technical assistance for a) KAP surveys, b) participatory M&E, and c) anthropometric surveys would also form part of the capacity building strategy. The Project will systematically plan this support and ensure that it features in the project‟s annual AWPB. The Planning and M&E Manager will be responsible for procuring these services in consultation with the Chief Project Director and IFAD India Country Office. The aim of technical assistance is to bring expert and specialist knowledge into the project to improve the adoption of good M&E practices and to enhance the quality of anthropometric surveys. The Terms of Reference for this technical assistance are in the draft PIM. KAP survey expertise will be provided by a specialist international consultant, which (if resources allow) could be provided by IFAD as part of implementation support. Whilst the PME consultant will be either a national consultant or a national institute with expertise in PME. The Consultant will be procured by

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following the guidelines provided in the IFAD Procurement Manual. For impact surveys, the services of an appropriate national level agency or consulting company will be procured by the Project as per IFAD procurement guidelines.

J. Management Information System (MIS)

Each PIA (UGVS, WMD, and UPASAC) would have their own MIS system. The WMD would use the MIS (and GIS) that they have already developed for other projects. UGVS and UPaSAC would design their MIS as per the requirement of ILSP. An overall project MIS would be established in the first year of project implementation by the CPCU. It would include information on component wise physical and financial progress, impact evaluation analysis and reports, RIMS first and second level indicator tracking, and other pertinent information on market and prices, service providers and input suppliers, etc. Initially it will be run manually in MS Excel to create the data base for report generation, but would be automated by the first quarter of the second year to generate, monthly, quarterly and annual progress reports on physical and financial progress and outcome progress. Once the automated version of the MIS is tested for 6 months, the other half of the year would be spent in making the MIS operate on-line as far as possible.

K. Reporting & Communication Timely reporting and communication is important to take timely corrective actions and to learn from implementation experience to further improve project management effectiveness and efficiency. Monthly, quarterly and annual reports including reports from studies would be produced by the Project. For IFAD corporate reporting, Half-yearly, Annual and RIMS Progress Reports are required. Monthly Progress Reports (MPR) will be prepared from the project MIS developed to generate information at the Block, division and state level implementing agencies and compiled at the CPCU. Information in the report will contain component wise physical and financial progress against annual targets. This report will form the basis for monthly progress review at all levels. Quarterly Progress Reports (QPR). Besides reporting physical and financial progress this report will contain information on difficulties encountered in implementation and corrective actions and solutions to address constraints as well as communities response to project initiated activities. Half yearly and Annual Progress Reports (HR/AR) will be prepared from information compiled by the CPCU on component wise physical and financial progress from the project MIS. It will contain summarised information from PME and process monitoring, and the findings of the annual outcome survey. The report will also describe major achievements, issues and constraints on project progress. These reports may be based on a format to be included in the draft PIM. These reports will be submitted to IFAD and GoI. The CPCU will prepare the half-yearly progress report by the end of October and the annual progress report by the end of May. RIMS Annual Report. The key RIMS indicators corresponding to the project components are included in the project‟s Logical Framework and will be reported annually by the end of December. In the first year the project information on RIMS first level indicators (list of indicators included in RIMS Handbook) associated with outputs would be reported. After mid-term review the report will include ratings of effectiveness and sustainability of 2

nd level indicators, validated from the results of annual

outcome surveys. A standard table will be included in the PIM for this report.

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L. Learning System

The project learning system comprises of monthly, quarterly and annual review meetings, capturing information on progress, lessons and finding solutions for implementation constraints.

Monthly progress review will be done on the basis of monthly progress reports. It would include reviews of physical and financial progress by NGOs, and by Project staff at the Division and State levels. Each implementation agency will review implementation of activities leading to project outputs in terms of adequacy and timely utilisation of project resources. Quarterly Review Meetings (QRMs). The quarterly progress report will be used during the QRMs at the Block, Division office, and at the State level. Over and above reviewing physical and financial progress for the quarter against annual targets the project will also review the performance of NGOs and service providers, beneficiary feedback from PME, implementation constraints, document lessons, emerging best practices and decide on actions to improve implementation.

Annual Project Review will be carried out towards the end of the fiscal year around first week of April, to assess performance in the achievement of physical and financial progress against annual targets. In addition, there will be a review of results reflected in the Outcome Surveys. There will also be a review assessing success and failures and lessons learned. Annual reviews will be institutionalised by NGOs at the community level. Mid-Term Review (MTR). IFAD, in cooperation with the Government, will undertake a mid-term review by the fourth year of the project to review achievements and implementation constraints. In particular it would review: (i) achievement and improvements in the production systems in terms of increase in production, productivity, improvement in food security and increase in income of the poor; (ii) the performance of value chains developed by the project; (iii) performance of Producer Groups, Livelihoods Collectives and related community institutions involved in micro-watershed development; (iv) impact of vocational training; (v) effects of micro watershed development on soil and water conservation and its subsequent impact on the livelihoods of the poor; (vi) the performance of financial and procurement management systems; and (vi) issues related to project management. A mutually agreed action plan will be prepared based on the MTR findings. IFAD may appoint, in consultation with the Government, an external agency to evaluate the project if necessary. Project Completion Review. As the project reaches completion point, the CPCU would prepare a Project Completion Report. IFAD and the Government will then undertake a project completion review before the loan closing date. Innovation in M&E tools and methods The Project will promote innovations in the use of M&E tools and methods. Mobile phone-based applications will be piloted for collecting survey data to reduce cost and increase accuracy in data collection. Trained enumerators will collect and transfer data via cell phones to a web based system for analysis and reporting.

M. Knowledge Management In the first year the Project will prepare a KM strategy in line with the IFAD policy on KM. The strategy will focus on building a robust KM system. Appendix 6 shows the framework to be followed for strategy development. The KM system will enable the project to generate, share and disseminate relevant information and knowledge to various stakeholders in a timely manner. As a start, the project could prepare simple guidelines in local language explaining the project components in detail and how it relates to other government programmes. Thereafter information would be disseminated through organising community level knowledge sharing workshops. This will enable the communities to understand the scope in relation to their context. A project website will be established within the first year of implementation and used as a knowledge sharing tool, being linked to IFAD Asia website. The KM team will extensively document and share knowledge generated in the project. The QRM forums

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will be used to capture lessons and best practices leading to development of knowledge products. Key information from M&E studies, reviews and exposure visits, lessons and best practices will be disseminated through knowledge products such as newsletters, publications, case studies and reports. The KM team will strive to build a culture of knowledge documentation and sharing within the project.

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Annex-1.8.1 M&E Matrix – Component 1 - UGVS

Performance Questions & related targets

Information needs and Indicators Data to be collected (at Baseline and beyond)

Data gathering Methods and Frequency

Information Use: Analysis, Reporting, Corrective Actions and Sharing Process, Responsibilities

Goal: Reducing poverty in hill districts of Uttarakhand

Has the project improved well being in the Project locations? – Has the underweight of adults

in rural areas have decreased from 34% in case of females and 33% in case of males (NFHS 2008).

– Has the current malnutrition rates reduced?

– How has the purchasing power of target households changed?

– % reduction in prevalence of child malnutrition (under 5 yrs old: chronic, acute, underweight)

– No of Household with improvement in households asset ownership inde

– No of HH reporting improved Food security

– Improved social indicators including literacy, income, Quality of housing, water supply and sanitation

– No of HHs receiving project services

– Baseline information on Underweight, Chronic Malnutrition and Acute Malnutrition

– Number of people with

improved well being.

– RIMS anchor indicator surveys at baseline, mid-term and completion

– Qualitative Data from focus groups and key informant interviews.

Household survey information to be triangulated with information from project implementation, PRAs and field observations. Annual KS work shop on food security

Development objective: Enable rural households to take up sustainable livelihood opportunities integrated with the wider economy

– Has the project improved income and food security of the poor & disadvantaged in project locations?

– How the purchasing power of target households changed –in particular, for housing, education and health needs?

– How has the project influenced meeting the needs of housing, access to water, health and sanitation?

– What is the women‟s perception of empowerment?

– How have interventions affected the workloads, roles

1.More than 60% of project households report increase in income from sub-sectors supported by the project and reduction in expenditure 2. 80 % HHs increase food self-sufficiency 3. Over 50 % of HHs report improved access to business resources and services. 4.70% enterprises are operational three years after they receive support. 5. Over 50% of women increased income by EoP. 6. Women report improvements in

decision making in over 50% of project

– People in the project locations reporting improved income.

– Household expenditure

patterns at the start of the project.

– Observational data – Nature of local economy

at start of the project.

– RIMS +Surveys (impact

assessment) –baseline, midterm and end of project.

– Track through Annual

outcome surveys

– Economic analysis of local economy at baseline and during the project/Studies

Annual Project Reviews and MTR with project stakeholders about the project contribution to overall livelihoods improvement in the context of other initiatives in the State of Uttarakhand.

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and well-being of different household member (men, women, young and old)

– How has the diversity of local economy changed?

HHs.

Component 1: Food security and livelihood enhancement

Food security and scaling up – Has the project improved food

security in project locations? – How have the cropping patterns

in the project area changed?

– What infrastructure has been created under the project

.

Indicators and Targets Changes over time in percent of total

households who are able to meet

minimum nutritional requirements

(disaggregated according to the type of

household, season and location) under

average seasonal conditions

Number of farmers adopting improved technologies Increase in farm yield & output. Increase in food self-sufficiency Targets: 75% of the households with food security Achievement of project targets at output and outcome levels No of functioning collection centres New Area brought under irrigation ha. Targets: Area of horticultural crops and off-season vegetable cultivation increased by --- hectares Area of cash crops increase by 10% in project areas.

- People in project locations/areas reporting improved food security under normal production conditions.

– Data on changes in cropping patterns disaggregated according to location and farmer type

– Areas of improved varieties.

– Quantity of improved varieties

– Land use data and agricultural activity data at the start of the project (from ULIPH and Department of Agriculture and Horticulture)

Annual outcome surveys – Sample crop surveys at

harvest (normally undertaken by Department of Agriculture).

– Project progress reports

Improve record keeping b y farmers Install a data base as part of the Project MIS at UGVS for analysis and sharing this as part of half-yearly and annual reports.

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Number of groups managing infrastructure operational/functional

How much farmers have increased their yields?

Indicators and Targets More than 70% of project hhs members

report increase farm output by at least

15%

Targets: – 60% of farmers reporting increase

in yield by 50% of the targeted yields.

– Yields at start of the project from baseline crop survey data

– Change in average yield per crop (disaggregated by location, year and crop type)

– Growth and Productivity data for poultry and dairy.

– Baseline survey (RIMS + Survey

– Sample crop surveys at harvest (normally undertaken by Department of Agriculture)

– Farm Records of Producer Groups

– Identify sample sites and train enumerators in field measurement.

– Developing as part of the PME to undertake participatory yield-appraisal and recording systems with Framer Groups/Producer Groups

Information reviewed and shared in the project‟s learning system

How effectively are Producer Groups (PGs) and Livelihoods Collectives supporting farmers to adopt new crops in cropping systems, breeds of cattle and birds and husbandry practices and systems?

- Federations formed by ULIPH expand membership to more than 33,000 HHs

- More than 70% of members make use of services facilitated by federations.

- 70% of project supported institutions rated as Grade A using project grading standards.

- Membership of community institutions increased to cover more than 64175 HHs

- 130 Community apex institutions formed

- No of federations strengthened in

– Number and percentage at the beginning of the project/at baseline

– Record keeping by PGs and LCs and Division Office.

– RIMS + Surveys

– Annual Surveys

Information shared in Half yearly and Annual Reports and during half-yearly and annual review and also QRMs whenever applicable

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value chain based enterprises - At least 75% of Federation board

members are women. Indicators and Targets: – No of PGs and LC operating

effectively. – 10% increase in herd size – 10% increase in number of birds – 20% increase in cropping area for

offseason vegetables and high value cash crops

– 75% % of farmers actively involved in PGs and LCs

Sub-component-Market Access:

Have linkage between Producer Groups and Livelihoods Collectives and processors/marketers improved production (yield and area increase) in the project areas? Have micro enterprises been established as a result of project intervention? Are farmers better informed about prices, quantities demanded and potential buyers Have farmers income increased as a result of better access to market information?

More than 60% project HHs use new business opportunities and technologies Increase of producers‟ share of retail

price by at least 10% in three value

chains.

- Sub sector based studies including market assessment studies carried out.

- capacity building programs for market linkage conducted.

- buyer-seller meets organised. - -MoUs with market agencies

executed - Enterprises established in identified

sectors - Collection centres established.

No of new enterprises established No of existing enterprises expanded

Market information pilot carried and

learning disseminated

Target:

80% farmers reporting increase in

access to

– Data on number of contracts successfully implemented

– Quantity of high quality inputs supplied to farmers

– Famers covered by improved seeds and practices

– Additional gains as a result of improved access to markets.

– Accessibility of market information data base.

– Annual Outcome surveys – Qualitative Case Studies – KAP surveys – Information from PME

exercises

– Information from PG and LC on marketing records

Quarterly Reports and Annual Report Reports and cases shared during Annual Reviews.

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markets/processors/buyers

– Number of farmers reporting having increased market information Target:

- Number of farmers reporting additional profits and activities due to better access to market information and linkages.

– Number of enterprises established and functioning

– Number of enterprises formed – Number of farmers reporting access

to market information

Sub-component Innovative linkages:

What innovations/improved farming practices have been developed or recommended? What level of adoption has occurred? What are the reasons for adoption or non-adoption?

New models on market linkages and technical support are developed and disseminated as part of project interventions. MoUs executed with identified agencies

for implementation of the innovation and

market tie ups

Identified innovations are tested,

documented & recommendations

shared with stakeholders.

Indicator and target – Number of farmers* adopting

improved technologies – 30% increase in farmers adopting

new technologies

– RIMS + Survey data at

baseline and Annual – Outcome survey and

Qualitative benefit assessments

– Record keeping by Divisional offices with the help of enumerators

– Farm records of PG and LC.

Improve record keeping b y farmers and develop reporting and data collecting formats. Sharing information in the half-yearly and annual review meetings and during supervision missions.

Sub-component Vocational Training

Have people from poor households obtained remunerative and secure employment as a result of project intervention?

8,000 vocational training graduates gain

employment

10,000 youth trained in vocational

– Training programmes conducted

– Persons completed training but without jobs.

– RIMS + Survey

– Annual Outcome Surveys

Information shared in Half yearly and Annual Reports and during half-yearly and annual review and also QRMs whenever applicable

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training of which at least 50% women.

– Number of vocational training graduates gaining employment in sector in which trained and number gaining other jobs.

– Targets: – 50% increase in income of youth

trained and employed

– Sector in which trained and number getting jobs.

– Number of trained persons employed/placed after completion of training at baseline

– Persons of trained people employed and their growth in income at baseline.

KS workshops.

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Annex- 1.8.2 M&E matrix – Component 2 (WMD)

Objective hierarchy Performance questions

Indicators Means of verification

Data to be collected Responsibility

Goal Reducing poverty in hill districts of Uttarakhand

Has the project resulted in reduced poverty?

Child malnutrition (under 5 yrs old: chronic, acute, underweight) 1/

Household assets

Food security

Income (expenditure)

Quality of housing, water supply and sanitation


Age, weight, height of children <5 years Household assets Period of food shortage

Contracted to external agency

Development Objective

Enable 39,600 rural households to take up sustainable livelihood opportunities integrated with the wider economy

To what extent has project resulted in improved livelihoods? To what extent have women and disadvantaged groups benefitted?

70% of PG & VG members 1/ report increase in income.

70% of PG & VG members 1/ increase food security

Availability of fuel, fodder and water improved for 70% of watershed hh

Women‟s empowerment - 80% of women report improvements such as decision making and mobility

SC h‟holds comprise at least 20% of all hh benefitting

Annual outcome surveys

No. of hh reporting increase in sector income, improved water supply, grazing and fuel wood. No. of hh reporting improved food security

WMD

Impact surveys at baseline, mid-term and completion

Monthly household expenditure Type of housing, water and sanitation facilities, Women‟s mobility, ownership of assets, participation in key household decisions. Analysis of benefits for SC and women-headed households Households in receipt of various project services Also include AOS indicators.


Outcomes: 41 project watersheds become less vulnerable to erosion and drought.

Has the watershed eco-system improved?

Increase of 10% in vegetative biomass

Increase of 10% in water availability

Watershed environmental monitoring

Vegetation assessment Water flow monitoring

WMD

Farming systems on 41 project watersheds with a population of 36,600 households

How many farmers have increased production?

75% of PG members 1/ adopt new technologies or techniques

100% of PG members1 increase

Annual outcome surveys.

No. of farmers say adopt new technology, No. of farmers say increase crop area, yield, irrigated area, no of livestock. Area of irrigation, area of crops

WMD

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become more productive.

Have farmers adopted new ideas and technologies?

farm output by at least 15% (crop yield, area, no. of animals).

No. hh owning livestock, no. & type of livestock

KAP surveys

Farmers adopting new technologies and ideas, and if not, why not?

WMD

Non-farm enterprises are developed and farm enterprises are up-scaled.

How many non-farm enterprises have started or expanded? How many farmers are engaging with the market?

20% of VG members1/ establish new enterprises or expand existing enterprises.

20% of PG members1/ increase in sales of produce or use new market channels.

Annual outcome surveys

No. of producers say sales have increased and value of sales. No. of enterprises established and expanded

WMD

Value chain studies

Volume of sales and no of producers using collective/contract marketing, viability and relative prices for these marketing channels.


Lessons in watershed development disseminated.

What lessons have been learned?

Improved performance by 80% of GP

Lessons documented and disseminated via media and meetings

Process monitoring of GP Project progress reports

GP rating system (no. of meetings, participation, bank accounts, activities undertaken) No. of knowledge management products and events.

WMD

Outputs: Participatory watershed management Watershed management capacities strengthened and watersheds developed

Are WWMC functioning as planned? How much watershed development has been done?

275 Water and Watershed Management Committees plan and implement watershed development

125,000 ha covered by watershed conservation and development.

Project progress reports.

Monitoring data on WWMC activities Data on different types of watershed development

WMD

Food security enhancement support Rainfed agriculture, value addition and marketing support

How many people have joined project groups? What marketing infrastructure has been developed?

Producer Groups with 23,400 members

Collection centres, marketing services

70 Livelihood Collectives established


Number of groups (PG & LC) and number of members Marketing infrastructure completed

WMD

Livelihood up-scaling How has market Vulnerable Groups with 5,856 Project progress Number of groups (VG) and number of WMD

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support Livelihood opportunities for vulnerable hh and up-scaling of farm enterprises

access been improved? How many vulnerable households are getting special assistance?

members1

70 Livelihood Collectives up-scale income generating activities with backward and forward linkages

reports members Data on activities of vulnerable groups Status of marketing activities and number of producers involved

Institutional strengthening Watershed institutions strengthened

How many GPs have been strengthened?

275 GP gain capacity for watershed development

Information and communication products

Project management delivers project services


Data on training provision, including number of GP covered type of courses, and number of people trained.

WMD

1 indicators disaggregated by gender or gender of household head,

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Annex-1.8.3 M&E matrix – Component 3 Livelihood Finance -(UPASAC)

Performance Questions and related targets

Indicators Means of verification Data to be collected Responsibility

Goal: Reducing poverty in hill districts of Uttarakhand Has the project resulted in reduced poverty?

Child malnutrition (under 5 yrs old: chronic, acute, underweight)

1

Household assets Food security


Age, weight, height of children <5 years Household assets Period of food shortage

Contracted to external agency (combined with UGVS survey)

Development objective: Enable poor rural households to use financial services to improve their livelihoods

To what extent has project resulted in higher levels of investment in farm and non-farm enterprises?

Use of financial resources facilitated by the project to invest in enterprises

Impact surveys at baseline, mid-term and completion

Use of loans Amounts borrowed and invested Also collect data used in Annual Outcome Surveys

Outcomes:

Improved access to bank finance. How many more people have bank loans? Are new branches supported by the project viable and sustainable?

ULIPH blocks taken in ILSP 20% increase in group members with bank loans 20% increase in total value of bank loans to group members Other blocks under ILSP 40% increase in group members with bank loans 40% increase in total value of bank loans to group New bank branches opened in Project Area Number of clients and viability of new RFI branches Loan default rate at an acceptable level

Annual outcome surveys Number of members1 with bank loans Combined with

UGVS AOS

Annual data on lending reported by banks

Number of loans and value of loans in project areas.

Banks report to UPASAC

Reports from RFI Number of clients, branch income and expenses, default rate

RFI reports to UPASAC

Improved means of mitigating risk. How many people have purchased insurance policies?

Number of clients1/policies for different risk

management instruments. Data and reports from insurance companies

Sales of various types of insurance policies.

Insurance companies report to UGVS

Increased financial inclusion How many people are using financial services?

Number of group members1 using financial services

LCs act as facilitators in taking up the role of BC/BF by its members Viability of LC members working as BC/BF Effectiveness of financial literacy training

Annual outcome surveys Number of members with bank accounts, savings accounts, loans, insurance policies.

Combined with UGVS AOS

Data and reports from LC Income and expenses generated by BC and BF

LC report via UGVS

KAP surveys

Number of members1 saying financial

literacy training useful and adopted. UGVS M&E unit

Increased investment in market-led opportunities by hill producers and their organisations. How much finance is being provided via UPASAC?

UPASAC investments total Rs90 million. Recovery rate for UPASAC Investments

Reports from UPASAC Number and value of loans and equity investments Due and overdue amounts for UPASAC loans

UPASAC

Outputs:

Banking initiatives Enabling access to bank finance. How many banks and bank staff have participated in project initiatives?

1,000 people attend training and exposure visits. Major financial institutions having presence in project area participating in ILSP linkages. 20 new branches of RFI opened.


Number of people1 attend training and

other events List of participating financial institutions List of new RFI branches

UPASAC

Risk management New risk management products Have new insurance products been introduced?

At least five new risk management products introduced and promoted


List of new products with promoting agencies and current status

Insurance companies report to UPASaC

Financial inclusion initiatives Improved access to financial products Do LC have a role in financial inclusion? How many people have been reached by training?

Number of LC acting as BC/BF Number of people

1 reached by financial literacy

training


List of LC acting as BC and BF Numbers of people

1 trained and type

of course

LC report to UPASaC UPASAC via contracted training providers

Development Finance Fund: Social venture capital company provides financial resources

UPASAC business plan Number of funding applications received and


Copy of business plan List of funding applications and their

UPASAC

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Performance Questions and related targets

Indicators Means of verification Data to be collected Responsibility

reviewed status indicators disaggregated by gender

Annex-1.8.4: Annual M&E Activities Calendar

Activity April May June July Aug Sep Oct Nov Dec Jan Feb March April

M& E Activities PCU, UGVS and WMD Levels

Annual Progress Performance Review

& Report Submission Annual NGO Performance

Assessment RIMS Report submission Half yearly Progress

Report

Annual Progress Report RIMS Annual Report

Annual Outcome

Surveys Quarterly Results

Report (QRR)Preparation

(Outputs/ 1st Level Results) Quarterly Review

Meetings Focus Groups and

Key Informant Interviews (Theme

or Output based) Data Collection for

physical and financial progress

and KAPS surveys

M& E Activities at Village and Block Levels

Block level PME

meetings PME meetings of

Village Panchayats, MG, SHG,

Vanpanchayats, WWMC SHG/Enterprise

Groups/WWMC/Van Panchayat member

and group review meeting Data Recording by SHG members ,MG

& WWMC/ Van Panchayat and

NGOs

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Annex-1.8.5: Participation of Stakeholders in the Annual Leaning Process

M&E Activities DPMT and PMU level

Participants

Data Collection for M&E Beneficiaries, NGO and Enumerators

Focus Groups and Key Informant Interview and

PME

NGO and Project Staff, while PME will be done by project

beneficiaries

Quarterly Review Meeting & (QRR)Preparation Beneficiaries, NGO and Project Staff/ Report by Planning and

M&E Manager in the Division Office and Planning and M&E Manager in the PCU

Quarterly Results Progress Review (State Level)

NGO, Project Staff, Private Sector, Service Provider

representative, District Horticultural Officer, Dist. Fisheries Officer, District Agriculture Officer, District Animal Husbandry

Officer and District Forest Officer, Branch. NGO representatives, Managers of Banks, Lead Bank Manager,

NABARD District Managers, and Managers Division Officers,

Officials from UGVS, UPASAC & WMD

RIMS Report submission Planning and M&E Manager at the PCU

NGO Performance Assessment Beneficiaries, NGO, DPMT and PMU staff

Annual Progress Review and Report Submission

Beneficiaries representative, NGO, Project Staff, Service Provider representative, District Horticultural Officer, Dist.

Fisheries Officer, District Agriculture Officer, District Animal Husbandry Officer and District Forest Officer, Branch Managers

of Banks, Lead Bank Manager, NABARD State Manager, and State Government Officials and Private Sector Representatives

and Managers from M & E. Officials of UGVS, WMD, UPASAC

M& E Activities at Village, Block and CMRC Participants

Block level Project Review Meeting

Division office staff, NGO staff Level Line Agency Officials, GPs, Community Members, Village Head men Extension Workers,

and Officers of various Line Agencies, members of Mandi Parishad, Van Panchayat ,members of LCs.

Village level Results Progress Review Meeting

GP members, other Community Members, Village Headman,

FG, Extension Workers, and Officers of various Line Agencies. NGO Staff

Produce Groups / Livelihoods Collectives

NGO staff, Producer Groups, Members of Livelihoods Collectives

(LCs) Members of the Mandi Parishad, Buy-sell meets and review of progress in agribusiness.

Data Recording by Producer Groups members , Van Panchayat, SHGs, WWMC, SHGs

This will part of the PME process and Social Audit process facilitated by Enumerators and NGO staff.

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Annex-1.8.6: Guidelines for KAP Survey

INTRODUCTION KAP (Knowledge, Attitude and Practice) survey is a widely-used method for assessing uptake and acceptability of newly introduced technologies or income-generating activities (IGAs). KAP was introduced in Bangladesh by the World Bank/DFID ASSP (Agricultural Support Services Project) in the 1990s. It is particularly easy to use where technologies or IGAs are disseminated mainly through organised training events (training sessions, demonstrations and field days, etc.). These guidelines have been compiled to clarify the principles of KAP, and how it can be implemented in IFAD supported projects. These guidelines are based on those developed by Dr Mike Daplyn for the LGED/IFAD/Netherlands Market Infrastructure Project in Charland Regions, Bangladesh. KAP serves a double function. In the case of positive findings it provides the earliest evidence of probable future project benefits: if there is understanding and adoption, it is reasonable to presume that longer-term outcomes and impacts such as increased income, more secure livelihoods, etc., will follow in due course. KAP is therefore complementary to outcomes/impact M&E studies, which will only show measurable trends at a later stage of project life. In the case of negative findings, KAP provides a warning that there are problems either with the technology of the IGA, or with the training methods. Such findings should trigger review of the technology and the training approach.

OVERVIEW OF THE KAP SURVEY METHODOLOGY The name 'KAP' summarises three sets of questions about trainees' initial uptake of IGAs:

Knowledge: does the trainee KNOW what to do (i.e. has she/he remembered the key points of the training?)

Attitude: based on her/his knowledge of the technical approach for the IGA, and knowledge of her/his own circumstances, does the trainee think the IGA is suitable for her/him (and if not, why not)?

Practice: She/he actually going to implement the new technology or IGA? In practical use, the study is often structured as P-K-A:

Is the trainee going to Practice the recommendation? if NO, is that because she/he doesn't know how to do it (Knowledge problem); If Knowledge is accurate (or reasonably accurate) but the trainee still doesn't

intend to Practice, what is the reason for the negative Attitude? These questions are embodied in a short (1-2 pages) questionnaire format, structured according to the key technical points of the concerned technology or IGA. The questionnaire is administered to a small sample (typically 30-40) of people who have been exposed to the recommendations for implementing the technology IGA (through training sessions, demonstrations/field days, etc.). The trainees for interview are selected randomly (using sampling procedures described below) from those who have attended training events for the concerned IGA. KAP targets the people who have attended training events because they will show the earliest signs of whether the IGA is attractive; others may follow by imitation but only after a time-lag. The normal time to conduct KAP survey is just before the trainees start to implement the training they have received. For a crop-based IGA this is normally at the start of the next season after the demonstrations/field days, because that is the time when the trainees will be taking the decision whether to implement the new technology/IGA. For example KAP on a new boro rice variety would typically be done in January of the year after the demonstrations were carried out. For many non-crop IGAs (e.g. handicrafts, poultry) seasonality is not an issue and implementation may start very soon after training, so KAP can likewise be conducted soon after training. However, some non-crop IGAs is also seasonal; for example fish-drying is a dry-season activity. KAP surveys conducted just before implementation may be supplemented with Results Surveys on the same trainees. Results Surveys are carried out as soon as the production and profitability of

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the IGA can be assessed; for rice, this would be just after harvest, and for fish-drying, just after the first batch had been sold. Because the questionnaire is short and the interviewed number of trainees is small, KAP data can be processed quickly and easily, using a computer, calculator or hand tabulation. The results are in the form of percentages, e.g. % of trainees who plan to implement the IGA, % of trainees who can remember each of the key points of the recommended approach, etc. Provided the selection of trainees for interview has been properly randomised, these percentages can confidently be considered to reflect the situation of all trainees who have received training on the IGA.

DRAWING A SAMPLE FOR KAP The aim of sampling is to estimate the characteristics of a large group by examining only a small part of the group. The results from the sample will be valid for the whole group provided the following conditions are observed:

the sample must be randomly selected; and No section of the group must be excluded from possibility of selection.

To meet these conditions we need a list (technically called a sample frame) of the group from which the sample is to be drawn. This would be the group concerned are the trainees who have received training on a specific IGA through attending training events. The list from which the sample is drawn can be created by compiling the attendance lists from the training events, which should be maintained for every event. The attendance lists must contain enough information (such as group name/number, trainee‟s name, father's/husband's name, Union and village) to permit tracing individual trainees, even after several months have elapsed. Accurate maintenance of the attendance registers is vital for successful KAP survey. To draw a KAP sample the following procedures should be followed:

i) Select the IGA or new technology to be studied. This can be any IGA provided that it was disseminated through organised training events where attendance registers were compiled;

ii) Define the required coverage of the study. This could be the whole project, or one

zone, or one Block within a zone, or all the Blocks covered by one NGO. Each subdivision is called a domain of study. If separate results are required (e.g. separate results by zone) there will be one domain of study for each subdivision required, and each domain of study must be sampled separately;

iii) Compile the trainee lists from the attendance registers into a master-list covering

all the events of the concerned IGA for each of the concerned domain(s) of study. For example if separate results are required by zone, there will be two lists, one for each zone. The lists should be compiled in such a way that all the training events of one upazila form a single block in the list. Give each trainee in the compiled list(s) a serial number, starting at 1 for each list if there is more than one domain of study;

iv) For each domain of study, calculate what proportion of the whole list is needed for

the sample, assuming a sample size of 40 (see Appendix for calculation of this number). For example, if the whole list contains 2000 trainees, and we need a sample of 40, then the sample will be 1 in 50 of the listed trainees. This number (50) is called the stepping interval. If the stepping interval turns out to be a fraction, round it downwards to the nearest whole number (e.g. if the list has 2032 trainees, the stepping interval for a sample of 40 will be 50.8; round it down to 50);

v) Using random number tables or the ()RAND function in Excel, take a random

number between 1 and the stepping interval (between 1 and 50, in our example). This is the random start point of the sample. As an example, let us assume the random start point is 14;

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vi) Select for the sample the trainee whose number is the random start point, then the trainee after 1 stepping interval, 2 stepping intervals, etc. For example, if the random start point is 14 and the stepping interval is 50, take trainee numbers 14, 64, 114, 164 etc. until the total of 40 sample trainees has been reached. This is the primary sample;

vii) Every effort must be made to interview the trainees in the primary sample,

including return visits if the trainee is temporarily not available (e.g. at work, gone to the hat). However, sometimes a trainee is not available due to long-term reasons such as death, sickness, long-distance travel etc.. To cover this situation, select a reserve sample. The reserve for trainee #14 should be trainee #15 (or #13), the reserve for trainee #64 is trainee #65, and so on. Note that the reserve is always adjacent to the trainee in the primary sample. This is ensure the reserve is as closely comparable as possible to the primary sample. Trainee #65 cannot be a reserve for trainee #14.

SUMMARY OF FIELD AND OFFICE PROCEDURES Timing: KAP is normally carried out when the trainees are ready to implement the IGA selected for study. For crop-based IGAs, that will usually be in the season following the season in which the training events were carried out. For non-crop IGAs it may be sooner; in that case compilation of the attendance lists and selection of the sample(s) must be carried out promptly after the training. As noted above, KAP may be supplemented at a later date with a results survey (see above) to determine the actual outcome (production achieved, price received, etc.) achieved by the trainees. IGA Selection: Well before the target date for conducting KAP, the KAP survey designer should consult with sub-project management and the training organisers to select the IGA(s) to be studied. This should be guided by the importance of the various IGAs for the overall impact of the sub-project. It is recommended that, at least in the first year, only a small number of IGAs should be chosen, to avoid overloading the data collection and analysis personnel while they are familiarising themselves with the system. Sample Selection: As early as possible the survey designer should call in all the attendance registers for the training events of the selected IGA(s). The trainee lists in the attendance registers should be compiled into a master-list or lists and the primary and reserve samples should then be selected using the procedure given in Section 3 above. The reason for selecting the sample at an early stage is to avoid using the sample trainees for pre-test and training (see below). Questionnaire Design: After selection of the IGA(s), the KAP designer should consult with the training services providers to single out the key points of each IGA which are essential for successful implementation of the IGA. To keep the questionnaire short and simple, it is recommended that the list of key points should be kept as short as possible - maximum 5 or 6 key points. The Knowledge section of the questionnaire should then be structured according to the list of key points. This stage should be completed (if possible) at least a month in advance of the time the trainees will be ready to start implementing the IGA, to allow time for questionnaire pre-testing and training data collection personnel. Questionnaire Pre-Test: The questionnaire should then be pre-tested by conducting interviews with a small number of trainees from the list of those who have attended training events on the selected IGA (but excluding any trainees selected for the primary or reserve samples). The pre-test interviews should be carried out by some or all of the personnel who will carry out the main KAP data collection. During pre-test, any necessary modifications should be made if any part of the questionnaire is not clear to the trainees or the data collection personnel. When the questionnaire has been finalised, it should be translated into Bangla. Training Data Collection Personnel: Following questionnaire translation, all the personnel who are designated to carry out data collection should be trained on the finalised and translated questionnaire. The training should consist of a short classroom session - maximum one day, including practice interviews by the data collection personnel on each other. This should be immediately followed by one or two days of practice interviews with trainees who have actually received training for the selected IGA. Again, the trainees for training interviews should be selected from those who have attended training events, but excluding those selected for the primary and reserve samples.

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Setting Up the Analysis and Reporting System: When the questionnaire has been finalised, the data analysis system should be prepared, based on the questionnaire structure. Also at this stage, an outline of the eventual report should be prepared, including blank tables for each category of results (e.g. % trainees deciding to implement the IGA, % who know each of the key points of the IGA technology, etc.). This can be done in parallel with training the data collection personnel. KAP can be analysed by computer, using a spreadsheet program (Excel or similar), or by pencil-and-paper methods with a hand calculator. Data Collection: This should take place just before the time when the trainees are due to start implementing the selected IGA(s). Especially for crop-based IGAs, it is important not to be too late in starting data collection, because farmers will be busy with the actual planting and they may be unwilling or unavailable for interview. It is expected that for a typical KAP study, 1-2 weeks will be required to complete data collection. The survey designer should try to accompany each data collector for at least one trainee interview, to check that proper procedures are being followed (this will be especially important in the first year). It is particularly important to check that data collectors are interviewing the trainees selected for the sample, not substituting other trainees of their own choice. Any pressure from the training organisers to select 'good' trainees must be resisted. Data Analysis: After all the interviews have been completed, the filled-in questionnaires should be returned to the sub-project management unit for analysis. For the Practice and Knowledge sections of the questionnaire, the results should be presented as percentages (e.g. percentage intending/not intending to implement the IGA). For the Attitude section of the questionnaire, there will be various different responses about why the trainees do not want to implement the IGA. These should be grouped according to the type of reason (e.g. shortage of labour, low price, excessive risk) and the percentage should then be calculated for the trainees giving each type of reason. Some trainees may give more than one reason; in that case all reasons should be recorded and analysed. Analysis should be completed within 1 week of receiving all the questionnaires; Partial Knowledge and Practice: Many trainees will not remember the exact details of the IGA, but will have an approximate idea. For example, the trainee may not remember the exact seed rate or fertilizer rate for a crop-based IGA, or she/he may know them but not follow the recommendations exactly. The trainee's response should be accepted as positive if he/she is reasonably close (say, +/- 10%) to the training recommendation. Before starting the analysis, the survey designer should consult with the training services provider for the concerned IGA(s) to determine what is the acceptable margin of error for each key point of the IGA; Reporting: After analysis, the results should be presented in a short report (usually 4-5 pages). A small table should be given showing the percentages of positive/negative responses for each question, with a brief text commenting on each result. Reporting should be completed within 2 weeks after the completion of analysis. Results Survey: The value of the KAP findings will be increased if they are matched up with the actual results achieved by the trainees. For this purpose the KAP sample trainees can be re-visited after they have completed one production cycle (e.g. after harvest for crop-based IGAs, after sale of the first batch for fish-drying, etc.) to obtain information about their actual production levels, prices received, and any problems they encountered in implementing the IGA. This information can be used to improve the IGA technology and training methods for the following training cycle.

SAMPLE SIZE CALCULATION FOR KAP SURVEY The following notes are not essential reading for users of KAP survey methodology, but they are included so that those concerned over the statistical validity of KAP findings can verify the basis for the sample size recommended. The principles are common to a very wide range of sample size calculations in M&E surveys, and can serve as an introduction for M&E personnel wishing to develop their skills in this direction. The sample size for KAP survey is governed by the normal sample size equation (see, e.g., Casley, D. & Kumar, K., "The Collection, Analysis and Use of Monitoring and Evaluation Data", Johns Hopkins 1988). The equations are based on three parameters: the required precision in the survey

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results, which comprises the required level of confidence and the acceptable margin of error; and the inherent variability of the population being studied. The results from KAP surveys are all in the form of proportions (expressed as percentages), for example the proportions of trainees expressing the intention to accept/reject the IGA. In this case the form of the standard sample size equation appropriate for proportions is used: n = K2 p(1-p) Equation (1) D2 Where: K = standard normal deviate for required level of confidence (obtained from statistical

tables) p = expected proportion of responses in one category (e.g. p=0.8 = 80% intending to

accept) D = acceptable margin of error, as a proportion (e.g. D=0.1 = margin of +/- 10

percentage points) The required sample size increases sharply if high levels of confidence (K) and low margins of error (D) are demanded. Therefore, requirements from users of results (who normally want high confidence and low margin of error) have to be balanced against survey cost and resource availability (especially personnel). For practical project/programme management situations, a moderate level of confidence is usually adequate; 90% confidence in a 1-tailed limit (e.g. 90% confidence that at least x% of trainees are going to implement the IGA) is a commonly accepted standard. A margin of error of +/- 10% is likewise usually considered acceptable. The parameter for population variability p(1-p) has a maximum value of 0.25 (0.5 x (1 - 0.5)) when the population is divided equally between the two categories and this sets the maximum for the sample size at any required level of confidence and margin of error. p=0.5 is therefore the most conservative assumption and is used unless there is strong evidence to the contrary. If the population turns out to be unequally divided (say, 80% adoption and 20% rejection as might be hoped for in an actual IGA training programme) the effect of retaining the maximum sample size is to give greater confidence and a lower margin of error. If we substitute the relevant values of the parameters into equation (1) we get: n = 1.2822 x 0.5(1 - 0.5) 0.12 = 41 (rounded to nearest whole number) that is, we require a sample of 41 trainees who have received training on the concerned IGA. It is essential to note two things: i) the sample size required is an absolute number, not a percentage of the

population. Only in special circumstances (if the population is rather small - 2000 at most) does the population size have an effect on the sample size; and

ii) subdividing the population does not permit subdividing the sample. If separate results are required for male and female trainees, or for different poverty groups, or for different Zones or upazillas, the same sample size, as calculated above, is required for each subdivision.

If the number of exposed trainees per IGA in any one year (the population being sampled) will typically be in the high hundreds or low thousands, so some account can be taken of population size (see (i) above). The adjustment is called the finite population correction (fpc) and is calculated as follows: nc = n/(1+(n/N)) Equation (2) where: nc = sample size adjusted for finite population effect n = unadjusted sample size from Equation (1)

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N = population size Assuming as an example that the population of trainees exposed to training for a given IGA is 1,000, and using the previously calculated sample size, then nc = 41/(1+(41/1000)) = 41/(1+(0.041) = 39.38 say 39 to the nearest whole number At this population size the effect is small, but it may be important if specialised IGAs are targeted at small numbers of trainees, resulting in small populations to be sampled. For a typical KAP survey we will be safe in setting the sample size at 40. Where cluster samples are used to mitigate the logistical burden of surveys, they almost invariably require considerable inflation of sample size. It is assumed that a KAP survey will be conducted on a simple random sample (or an unclustered linear systematic sample) of the population of people who have been trained on a given IGA. This is a reasonable assumption when the data collection is to be conducted by district or Block level teams (e.g. NGO field staff) who each will have to interview typically only 8-12 farmers in their own immediate area. In this situation there is little benefit from clustering the sample. There is therefore no need to consider the effects of clustering on sample size.

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Annex-1.8.7: TOR for Impact evaluation studies

INTRODUCTION

1. Background: the Integrated Livelihood Support Project (ILSP) will follow on from the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society within the Rural Development Department, and Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC), a social venture capital company. ILSP will be implemented by these two agencies, along with the Watershed Management Directorate. 2. Rationale: the justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provide incentives for people to invest their time and resources in agriculture. Despite the disadvantages that agriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures at higher altitudes, allowing production of out of season vegetables and temperate fruits. The horticultural sector is less developed than in the other hill states, so there is considerable potential for growth, as there is in other niche products such as spices, medicinal and aromatic plants, and nuts. 3. Another area with growth potential is tourism. However more needs to be done to ensure that local people fully participate in, and benefit from, this sector. The population is well educated, but the level of youth unemployment is relatively high. Better vocational training could help such people find good quality employment in the growth sectors of the country.

4. The overall objective (goal) of ILSP will be to reduce poverty in hill districts of Uttarakhand. This would be achieved via the more immediate development objective of “enable rural households to take up sustainable livelihood opportunities integrated with the wider economy”. 5. The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the main means of support for most households. The second main thrust of the project is to generate cash incomes via the introduction and expansion of cash crops. These would be grown on a significant scale for markets outside of the state. ILSP will also support non-farm livelihoods, especially community involvement in rural tourism, and vocational training. 6. Component 1: Food security and livelihood enhancement implemented by UGVS, will support crop and livestock production for food security, and develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) and higher level organisations (Livelihood Collectives - LC) formed by a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new income sources. ILSP will also improve access to markets through a value chain approach and the provision of physical infrastructure for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development and promotion, physical infrastructure for market access. These activities will cover 93,000 households in 17 blocks in five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement. 7. Component 2: Participatory Watershed Development implemented by the Watershed Management Directorate (WMD), will use processes that have been established through a series of watershed development projects in the state, but with an increased focus on food security, livelihoods and market linkages. It will protect and improve the productive potential of the natural resources in selected watersheds along with increasing household income through inclusive and sustainable approaches. The component would cover a total of 41 micro-watershed (MWS) covering an area of about 64,744 ha in six clusters in six districts, with a population of about 39,000 households. It will complement the ongoing watershed development programme funded by the World Bank and GoI, and takes into account availability of required WMD institutional capacity in the selected project districts.

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8. Component 3: Livelihood financing implemented by UPASAC. Despite making significant strides in financial viability, banks have not been able to provide significant numbers of poor households with basic financial services. The activities under this component include:

k) Banking support – capacity building, expansion of branches of SKGFS, l) Risk management – piloting and scaling up of insurance services, m) Financial inclusion initiatives – training to LC to be bank agents, product literacy training, n) Provision of development finance via UPASAC including loan and quasi equity funding o) Establishment cost support to UPASAC.

9. Component 4: Project coordination and monitoring: Each executing agency, UGVS, WMD and UPASAC, will have their own project management units headed by a Project Director or Chief Executive. To provide overall coordination, the state nodal agency, RDD, will set up a Central Project Coordination Unit (CPCU) within the RDD, headed by a part time Chief Project Director (CPD). The CPCU will have two Units: (i) Finance Unit; and (ii) Planning and M&E Unit. The Finance Unit will be located within RDD whereas the M&E Unit will be housed within UGVS. 10. Coordination: The Rural Development Department (RDD) will be the nodal agency at the state level. A Central Project Coordination Unit (CPCU) within the RDD. A state level Project Steering Committee (PSC) would be chaired by the Forest and Rural Development Commissioner (FRDC). The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD.

11. Convergence: the National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will be responsible for forming and supporting SHGs. ILSP will provide complementary support for livelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will be expected to receive support from other government programmes and from formal financial institutions. ILSP will also implement livelihood enhancement activities in blocks selected for watershed development by the Integrated Watershed Management Programme (IWMP), a centrally sponsored scheme. OBJECTIVES OF IMPACT EVALUATION 12. The objective of impact evaluation is to measurement of the degree to which the project has achieved its overall goal of poverty reduction. It is hoped that the impact evaluation will lead to an understanding of the extent to which project outputs have resulted in improved livelihoods, and in turn how these better livelihoods have reduced poverty. As well as quantifying benefits and estimating the degree to which such changes can be attributed to project interventions, the survey would investigate issues of equity and the degree to which women and disadvantaged households have been able to participate in the project and benefit from project outputs.

APPROACH TO DATA COLLECTION

13. The approach of the study will be to carry out household sample surveys baseline, mid-term and end-of-project. These surveys will be supported by the collection of qualitative information on project impact. 14. The sample will be designed in such a way as to produce separate estimates for indicators of UGVS (component 1) and WMD (component 2) households. There will also be a control group of households who are not directly involved in the project. There may need to be two control groups, one for WMD and one for UGVS. Households in the project micro-watersheds may need to be divided into two samples if there are significant numbers of households within project watersheds who are not members of project groups (PG and VPG). The sample design should allow for before and after project, and with and without project comparisons. 15. The sample should be both stratified and clustered. Stratification would ensure that the selected sample is spread over the project area and represents different agro-ecological zones. Clustering would reduce logistical and data collection costs by first selecting a sample of project groups or villages and then selecting a sample of households in the selected groups/villages.

16. The total size of the sample, allowing for the effect of clustering, should be of sufficient size so as to produce reliable (at least 90% confidence interval) and precise (no more than +/- 10%) measurements of indicators for each domain of investigation (UGVS, WMD and control).

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Table 1: Indicators for sample survey

Level of assessment

Indicators Data to be collected

Profile Household demography Gender, age, education, literacy, occupation of household members Children of school age attending school

Location Village, ward, block, GPS coordinate, mobile phone number

Socio-economic status Caste, BPL, project wealth ranking

Impact Child anthropometry Age, weight, height, gender of children aged under 5 years.

Food security and quality of diet Length of period of food shortage

Other indicators of food security and quality of diet.

Housing quality Roof, floor and wall material, number of rooms

Water and sanitation Source and time/ distance to domestic water supply Type and location of latrine

Energy Main fuel used for cooking Electricity supply

Income Average cash expenditure per month Average value of home grown foods consumed

Assets Ownership of a list of household assets

Women‟s empowerment Asset ownership, mobility, role in decision making, earning own income etc.

Outcomes Land Land ownership and land tenure Land use (area cultivated, homestead etc.) Area of irrigated land, area actually irrigated, type of irrigation system, source of water Ownership of farm equipment

Crop production Food crops area, yield and output Food self-sufficiency: months supplied from own production

Cash/high value crops – types, yield and area Sales of crops Adoption of improved technologies

Livestock numbers Cattle, buffalo, goats, sheep, poultry, equines Milk yield, calving interval Sales of milk, poultry etc. Adoption of improved technologies

Employment Number of adults earning income Type of employment

Trees Number of fodder, nut and fruit trees Production and sales Adoption of improved technologies

Other products NTFP, honey

Micro-enterprises Type of enterprise, date established, sales, employment

Watershed condition Opinions regarding change in biomass, water availability, soil erosion

Outputs Membership of project groups Type of group, date joined

Membership of other groups Type of group, date joined

Capacity building Training courses attended, usefulness

Financial services Sources, savings, loans, insurance

Livelihood Collective/Federation Services utilized

Agricultural support services Use of paravets, government agencies, NGOs, private sector

Marketing channels Channels used to sell produce

17. Table 1 has a provisional list of indicators to be measured in the sample survey. These include all the indicators in IFAD‟s standard RIMS impact indicator survey, which are needed to generate information that can be compared with other IFAD projects. Other indicators relate to the project logframe. These indicators will need to be reviewed and refined in order to draft a questionnaire. It may be desirable to drop some of the indicators in order to keep the questionnaire within a manageable length, but data on such indicators may well be available from other sources, such as Annual Outcome Surveys. 18. Alongside the sample survey, the contracted agency will also carry out some case studies and focus group discussions to collect qualitative data. This would particularly cover issues such as

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women‟s empowerment, where it may be difficult to get useful data from a formal questionnaire. Informal data gathering would also aim to provide an understanding of the processes behind the changes observed in the sample survey. SURVEY IMPLEMENTATION 19. This work would be contracted out in a single package covering all three rounds of the survey (baseline, mid-term, end of project), to an agency with qualifications and experience in this type of socio-economic and anthropometric survey. Implementation of each round of the survey will involve the following steps:

(i) An initial rapid assessment of the project area to finalise indicators and sample design (ii) An inception report describing the proposed approach, data collection tools and schedule

of work. This report will be discussed with project management and reviewed by IFAD before proceeding further.

(iii) The sample survey itself, including questionnaire development, enumerator training, data gathering, data quality control, data entry, data analysis (including statistical tests), reporting and interpretation of results. It may help to analyse results from the first 100 questionnaires to check that useful and reliable results are being obtained, before proceeding with the rest of the survey. The initial findings and data analysis will be shared with the project and with IFAD, and priority data needs for follow-up investigations identified.

(iv) Follow-up investigations using qualitative measures such as wealth ranking, case studies and focus group discussions.

(v) Preparation of the draft report and submission of this report to the project and to IFAD (vi) Workshop with project stakeholders to discuss findings (vii) Preparation of the final report incorporating comments from stakeholder and IFAD.

20. Project field offices would assist the survey team with information on project working areas and project activities. They would also provide lists of project groups and names of group members, and would help in locating sample households. However all logistical arrangements would be the responsibility of the survey agency. 21. An electronic version of full survey data set, along with the original questionnaires, would be supplied to the project. Survey data and reports will remain the property of ILSP. PROCUREMENT OF SURVEY AGENCY 22. Procurement processes would follow the Uttarakhand Procurement Rules 2008 and IFAD Procurement Guidelines. 23. Interested agencies would be invited to submit their qualifications and experience, including examples of similar studies that they have carried out in the past. Based on this information, a short list of qualified bidders would be drawn up, these agencies invited to make a technical and financial proposal. 24. The technical proposal should include details of the proposed sample size and design, and also specify the number of follow-up focus group discussions, case studies etc to be carried out. The number of people involved would also be mentioned (with c.v‟s of professional staff), their proposed time inputs and the total time required for each round of the survey. The proposal would also include an outline of proposed data analysis and proposed contents of the study report. 25. Final selection of the contracted agency would use “Quality and Cost Based Selection” with a weighting of 80% on quality and 20% on cost.

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Annex-1.8.8: Indicators for the Annual Outcome Survey Section A - Identification

% female/male headed HHs

Average size of HH

Section B - Livelihoods

% HHs for which agriculture is main source of income

Average number of sources of income

% of HH with income from migration or other remittances/pensions

Section C – Income and Food Security % HHs reporting food shortages (not able to provide 3 meals/day?)

Average duration of food shortage

% HHs reporting an increase/decrease in food security over the past 12 months

Average monthly HH expenditure

% HHs reporting an increase/decrease in income over the past 12 months

Why increase or decrease (qualitative)

Section D – Land Tenure % of HHs who own productive land

Average size of productive land

% of HHs who have other property rights on other land, and type of land

Section E – Participation in project activities % of HHs who have heard about project

% of HHs who participate in project activities (membership of project groups)

% of HHs who are very/moderately/not satisfied about project activities

Section F – Agricultural Production % of HHs who cultivate land, and area cultivated

% of HHs who grow high value crops, and area of these crops

% of HHs using irrigation systems and area irrigated

% of HH with different types of livestock and numbers of these livestock.

% of HHs reporting increase/decrease in crop productivity/crop area/high value crop

area/irrigation area/herd size

Size of the increase

% of HHs reporting that the increase is related to project activities

Reason for change (qualitative)

Section G - Markets % of HHs with cash income from sales of crops, high value produce and livestock.

% of HHs reporting an increased cash income

Reason for this increase (qualitative)

% of HHs with contract for selling production, and % selling via project group

% of HHs satisfied/not satisfied with the conditions of contract

Why? (qualitative)

Section H – Rural Financial Services % of HHs using credit during last 12 months, per type of credit ans source

Intended use of the credit

% of HHs considering that access to credit has improved/deteriorated

Reasons for improvement or deterioration

Section I – Enterprise Development and Employment % of HHs who got a new paid job during the last 12 months

Type of job

% of these HHs who consider this is related to project activities

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Annex-1.8.9: RIMS reporting Table for ILSP

Results category Indicator Level Unit Actual for year Cumulative to date FY 2012/3 FY2013/4 FY2014/5 FY2015/6 FY2016/7 FY2017/8 FY2018/9

Impact Weight for age - % z score under s SD Impact %G, %B Height for age - % z score under s SD Impact %G, %B Weight for height - % z score under s SD Impact %G, %B Households with improved food security Impact number

Outreach Total men & women First Number Total – women First Number Total - men First Number

Agricultural Technology

People trained in crop production technology First Number People trained in livestock production technology First Number Effectiveness – improved production Second Rating Farmers adopting recommended technologies Second Number Farmers report yield increase Second Number Farmers report herd size increase Second Number Farmers report production increase Second Number

Markets Roads constructed / rehabilitated First Km Market, storage, processing facilities constructed and/or rehabilitated

First Number

Marketing groups formed and/or strengthened First Number People in marketing groups First Number Marketing groups with women in leadership positions

First Number

Effectiveness – producers benefitted from improved market access

Second Rating

People reporting increase in sales of products Second Number Sustainability of infrastructure Second Rating Number of functioning infrastructure Second Number Groups operational/functional Second Number

Enterprise development & employment

People trained in IGA First Number People receiving vocational training First Number Number of enterprises accessing facilitated financial services

First Number

Natural Resources People trained in NRM (m/f) First Number Groups involved in NRM strengthened First Number Environmental management plan formulated First Number Groups managing infrastructure formed First Number People in infrastructure groups First Number Land under irrigation systems constructed First Ha Rainwater harvesting schemes constructed First Number

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Results category Indicator Level Unit Actual for year Cumulative to date FY 2012/3 FY2013/4 FY2014/5 FY2015/6 FY2016/7 FY2017/8 FY2018/9

Area of land under soil/water conservation First Number Sustainability of groups managing infrastructure Second Rating Number of groups functioning Second Number Effectiveness of productive infrastructure Second Rating Farmers with secure access to water Second number Incremental area of irrigated crops grown Second Ha

Rural Financial services

Voluntary savers First number Active borrowers First number Value of gross loan portfolio First number Sustainability of financial institutions Second Rating Portfolio at risk Second % Operational self-sufficiency Second % Operating expenses ratio Second Ratio

Second level indicators are ratings for each component of sustainability and effectiveness. These ratings should be supported by evidence using specific indicators of project outcomes. Additional indicators of outcomes can be used to support these ratings of sustainability and effectiveness. More details on RIMS indicators and RIMS reporting are in the RIMS Handbook, November 2007

SOURCES OF DATA FOR RIMS INDICATORS

Results category Indicator Level Unit ILSP components Means of data

collection Comments

Impact Weight for age - % with z score under 2SD Impact %G, %B 1 & 2 Impact survey Children under 5 years old from sample of group member HHs (PG & VPG) Height for age - % with z score under 2SD Impact %G, %B 1 & 2 Impact survey

Weight for height - % with z score under 2SD Impact %G, %B 1 & 2 Impact survey Households with improved food security Impact number 1 & 2 AOS

Outreach Total men & women First Number 1 & 2 Progress reports Members of PG and VPG plus other HH involved in vocational training, action research and clients of new KGFS benches Total – women First Number 1 & 2

Total – men First Number 1 & 2 Agricultural Technology

People trained in crop production technology First Number 1 & 2 Progress reports People trained in livestock production technology First Number 1 & 2 Effectiveness – improved production Second Rating 1 & 2 Farmers adopting recommended technologies Second Number 1 & 2 Annual Outcome

Surveys

Farmers report yield increase Second Number 1 & 2 Farmers report herd size increase Second Number 1 & 2 Farmers report production increase Second Number 1 & 2

Markets Roads constructed / rehabilitated First Km 1 & 2 Progress reports Trails constructed for market access Market, storage, processing facilities constructed and/or rehabilitated

First Number 1 & 2 Collection centres

Marketing groups formed and/or strengthened First Number 1 & 2 Marketing groups are taken to be Livelihood Collectives

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Results category Indicator Level Unit ILSP components Means of data collection

Comments

People in marketing groups First Number 1 & 2 Marketing groups with women in leadership positions

First Number 1 & 2

Effectiveness – producers benefitted from improved market access

Second Rating

People reporting increase in sales of products Second Number 1 & 2 AOS Can also report on use of improved marketing channels Sustainability of infrastructure Second Rating Number of functioning infrastructure Second Number 1 & 2 Progress reports

or AOS

Groups operational/functional Second Number 1 & 2 Livelihood Collective rating system will show if functional Enterprise development & employment

People trained in IGA First Number 1 & 2 Progress reports People receiving vocational training First Number 1 Progress reports Effectiveness indicator could be graduates obtaining good jobs Number of enterprises accessing facilitated financial services

First Number 3 Progress reports Effectiveness indicator could be no of enterprises reporting increase in sales and size of this growth in sales.

Natural Resources People trained in NRM (m/f) First Number 2 Progress reports NRM groups are taken to be Water and Watershed Management Committees Groups involved in NRM strengthened First Number 2

Environmental management plan formulated First Number 2 Progress reports Watershed development plan of the GP Groups managing infrastructure formed First Number 1 & 2 Progress reports User groups for water and other productive infrastructure People in infrastructure groups First Number 1 & 2 Land under irrigation systems constructed First Ha 1 & 2 Progress reports Includes schemes in both components 1 and 2 Rainwater harvesting schemes constructed First Number 1 & 2 Area of land under improved management First Number 2 Progress reports Area of land in project micro-watersheds Sustainability of groups managing infrastructure Second Rating Number of groups functioning Second Number 1 & 2 Progress reports User groups for water and other productive infrastructure Effectiveness of productive infrastructure Second Rating Farmers with secure access to water Second number 1 & 2 AOS Number of farmers reporting increase in water supply Incremental area of irrigated crops grown Second Ha 1 & 2 AOS Number of farmers reporting increase in irrigated crops & area of crops

Rural Financial services

Voluntary savers First number 3 KGFS reports Reports for 20 new KGFS branches supported by ILSP Active borrowers First number 3 KGFS reports Value of gross loan portfolio First number 3 KGFS reports Sustainability of financial institutions Second Rating Portfolio at risk Second % 3 KGFS reports Operational self-sufficiency Second % 3 KGFS reports Operating expenses ratio Second Ratio 3 KGFS reports

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Annex-1.8.10: ILSP Knowledge Management Strategy

PG, LCs. GPs and Van Panchayats

NGOs supported by

UGVS, WMW and

UPASaC

Identification of Need based interventions:

Creating a baseline for assessing barriers and

challenges to KM overcome

Conducting Knowledge

Need Assessment

Example: ILSP Project:Identified Blocks of 20-25

villages NGOs are invited to prepare sub-

component KM plans for each Block

NGOs and Division staff conducts

detailed study on Components and subcomponents.

Use of M&E Matrix

NGOs need to carry out KNA to understand

existing level of Knowledge/information

and what they need

Combine all location

specific KNA +

NGO Knowledge

Needs

Target Groups KNA

+ Divisions/Block KNA/FG/LCs

Develop Division wise

KM Action Plan based on

respective KNA

Division KNA & KM Plan

+PCU/Division

KNA &KM Plan

KM Products to

address Knowledge Need,

Community, NGOs Division,

PCU

KM Strategy

KNA +KM Action Plan contribute to Development of KM Strategy

Division plans for need based Knowledge Partnerships (Line

Agencies, Technology and Marketing)

AWP&B reflects KM activities with budgets

Interventions Specific KM

activities are included in

Division AWP&B

PCU refines KM Products & Aggregates the AWPB referring to

M&E system & MIS

Key Performance Indicators for KM

(refer to operational Logical Framework

Interactive space

where both way

communications

takes place

Framework for Designing Knowledge Management Strategy for ILSP(Adapted from the output of KM and Asia Website workshop, June 11, 2011)

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Chapter-1.9: AWP&B PREPARATION

A. Introduction The purpose of this Section is to provide a standard for the presentation of an Annual Work Plan and Budget document for the ILSP. The elements described in the Section are preliminary in nature and are subject to modification and changes as and when these outlines are revised by IFAD. But the information contained in this Section should be considered as a mandatory minimum, reflecting all basic information needed for the proper management of the project and providing the required information to decision makers and supervisors in the Government, IFAD, and at possible Co-financiers. It is emphasized that the document should remain concise while at the same time providing all essential information. An Annual Work Plan and Budget (AWPB) document consists of two parts: Part A is a narrative section, briefly discussing previous implementation experiences, providing the justification of the proposed AWBP and highlighting objectives and required resources. It also indicates how the project activities reflect government, IFAD and co-financier priorities. Part B consists of a set of Tables which present the detailed budget for the forthcoming fiscal year as well as indicators for previous period and cumulative achievements. The outlines for Part A and Part B are presented in following pages. A short guide for the preparation of Tables for Part-B is included.

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B. Model Outline of AWP&B COUNTRY: India NAME OF PROJECT: ILSP ANNUAL WORK PLAN AND BUDGET: PART-A PERIOD from October 2012 to 31 March 2013 Font sizes Text 10 Arial; Tables within Text, Arial 9 Spacing 1.5 Table of Contents Fiscal Year Currency Exchange Rates, historical trend Weights and measures Abbreviations and acronyms Project Area Map Executive Summary I. CONCEPT II. CONTEXT III. ACHIEVEMENTS IV. SUMMARY PRESENTATION AWPB V. DETAILED PRESENTATION OF THE AWPB BY COMPONENT VI. COSTS AND FINANCING VII. STRATEGIC FRAMEWORK VIII. PROJECT MANAGEMENT IX. AWP&B TABLES

I. CONCEPTS (Maximum 2 paragraphs) Previous period: In this chapter, some of the basic planning parameters should be defined and explained. Preparation of AWPB begins, usually between October and November

6. To put the

proposed AWPB in perspective, results obtained in the previous year should be highlighted. Currency: The AWPB should use INR as the unit for costs and values. The current exchange rate at the time of writing the AWPB should be indicated and compared with the rate(s) used in Costab tables. Its evolution since the previous AWPB has to be analysed and the effect of devaluations or appreciations on required external financing should be stated. Prices: The current 12-months inflation or deflation rate for goods and services similar to project inputs should be stated and compared to the rate used in Costab tables for local inflation and the impact on project cost and financing analysed. II. CONTEXT (Maximum 2 paragraphs) This Chapter indicates briefly the most important developments in the previous period in the project implementation environment and the expected evolution for the planning period. The following elements may be discussed.

Government policies: Indicate any change or new policies and their effect on project implementation;

Institutional framework: Discuss any constraints, changes in the organization and/or staffing in the Implementing Agencies and the project management units. Evaluate the impact on implementation capacities.

Any other major determining factor of the implementation environment III. ACHIEVEMENTS (Maximum 2 pages)

6 In countries where the fiscal year runs from March to April such as in India.

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The Chapter presents the main achievements, issues and constraints of the previous period, including the main recommendations of supervision missions, as well as an appreciation of the impact of the project on the poverty and gender situation. Discussions should include: Physical results Highlight the implementation strategy and describe the main physical results obtained so far, indicate positive results as well as implementation problems and the reasons for them, and the latter's impact on next year's plan and implementation. Refer to detailed and summary AWPB tables. Financial results Analyse the level of expenditures of the year to date for the main components, compare with the previous budget and indicate any reasons for higher or lower expenditures than expected. Indicate whether these issues will have an impact on the plan for the next year; refer to the detailed and summary AWPB tables. Supervision issues Highlight the main recommendations of the previous supervision mission and the manner they are being implemented, discuss any other supervision issue. Poverty situation Provide a qualitative appreciation of the implementation to date on the poverty situation in the project villages and households. Use some information from the Baseline survey and any other available indicators to underline the statements. Also review any new Government and/or donor initiatives. Gender Discuss the role of women in project planning and implementation and the project impact on their situation, results and constraints. Analyse both the economic and the social aspects (income generation, agriculture, credit, literacy, education, health, etc…) IV. SUMMARY PRESENTATION AWPB (maximum ½ page) Present the main characteristics of the Annual Work Plan and Budget, in terms of programming and implementation strategy, physical and financial objectives and expected outputs and impact. Indicate if there are any major changes compared to last year's AWP&B. V. DETAILED PRESENTATION OF AWPB (maximum 4 pages) In this Chapter, a detailed discussion of the programming and implementation strategy of each component of the JTELP is presented as well as a discussion of the expected results and how the implementation modalities eventually differ from the previous year(s)' practices. For each component, present the following:

Objectives and targets. Indicate the component objective and physical targets for the AWPB period and compare with the whole project duration, discuss any trends;

Implementation strategy: Indicate how the activities of the component will be programmed

and implemented, discuss participatory approaches and any institutional problems and their required solutions;

Results: Indicate the expected results in terms of quantitative indicators and in terms of qualitative aspects. Indicate the expected number of beneficiaries (women, men) and households. Compare with the overall target of the project and with last year's results;

Changes: Discuss and justify any changes compared to the initial design and previous experiences, in targets, implementation strategy or expected results. Indicate reasons.

VI. COSTS AND FINANCING (maximum one page) This Chapter discusses issues relating to costs and financing of AWP&B.

Unit Costs: Any major changes in unit costs due to inflation/deflation and to changes in design compared to previous years and to the Appraisal Report should be discussed and the manner how these changes will be tacked and by whom should be indicated.

Financing: Issues relating to the flow of funds, the timeliness of funds availability, of approval and disbursement procedures for all financiers will be highlighted, and ways to improve or overcome constraints indicated.

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VII. STRATEGIC FRAMEWORK (maximum 2 or 3 paragraphs) This Chapter should deal with how the AWPB objectives and expected results and impact correspond to Government and IFAD objectives. It will be based on concrete experiences and examples and avoid non-committal broad statements. Issues to be included are:

Government objectives: State which project activities contribute to Government's rural development and/or poverty alleviation objectives and indicate the project's incidence in the project area.

IFAD Strategic framework: Discuss if and how AWPB results and impact contribute to: o empowerment and strengthening of beneficiary organisations, including gender and

participation aspects; o access to productive natural resources and technology; o Access to financial services and markets.

Co-financier: If the project is co-financed, indicate the expected impact of the AWPB on the Co-financier's objectives and strategy.

VIII. PROJECT MANAGEMENT (maximum 3 or 4 paragraphs) This Chapter should deal with the PMU status, staff positions, staff vacancies, key issues in staff deployment and ways to handle them. Highlight staff training and orientation and exposure visits. Provide a list of current staff as against original plan. IX. ANNEXURES (AWPB TABLES) The outline of AWPB Tables consists of two parts: a) the annual budget and b) indicators for achievements so far and cumulative achievements. The latter are required to put the annual budget in perspective and to help justify it. The outline of the AWP&B tables has been derived from the format of the Costab detailed tables. In principle, annual programming and budgeting concepts used should be identical to those in the Costab tables. With a view to assisting the PMU, a standalone excel Template has been designed for ILSP. It is very simple to use. The Templates are explained below: Summary Table is generated automatically and there is no need to input any values to any cell. But date of preparation or submission should be indicated and also the period of the AWP&B. Each project component has separate Table and unique number corresponding to Table numbers used in Cost Tables. [For example, Table 1.1,1.2, 1.3 etc] All currency input values are in INR. Unit costs are in INR and summary costs in 000 INR. Column Heading Explanation

Account code Each activity has a unique 5 digit account code and this number is easy to track expenditures. First two digits denotes sub-component

Activity Type of activity proposed under the project and as per costab but new and additional activities can be inserted and with new Account Code for tracking expenditures.

Unit This is expressed in physical units such as numbers, persons, months etc

Total Units Total physical unit as proposed under Appraisal Report

Total Amount Total amount in 000 INR as proposed in Appraisal Report

Unit cost Unit cost in INR as obtained at the time of Appraisal. These unit costs are indicative and should be revised if need arises.

AWP&B unit Number of units proposed under AWP&B. This column is yellow-shaded. By simply inputting values to this column, AWPB will be ready.

Amount AWPB Amount in 000 INR for the particular activity. No need to calculate if unit costs and number of units are input. If no activity is planned, input “0”

Quarterly planned Total AWPB expenditure is distributed to four quarters. No need to input any

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expenditure value.

Costab accounts EA, DA & PA are Expenditure accounts, Disbursement accounts and Procurement Accounts respectively as provided for in costab. No need to change these columns. If required these columns can be hidden at the time of printing.

Financing plan columns These are automatically produced based on the costab financing rules. Changes if required may be made after Loan Negotiation

Achievement columns Both physical and financial amount should be manually input based on the results of the previous year.

Summary Table: The summary table aggregates all financial values by component from the individual AWPB tables. The outline has been so designed that the individual rows in the Summary table is linked to the different "Total" bottom lines of in each individual AWBP table. In this manner, corrections and adjustments in the data in the individual tables are automatically re-calculated in the Summary table. X. Model Annual Work Plan and Budget Excel Template is reproduced in Word Pages See Annex-1.9.1 & 1.9.2. Original Excel File can be had from ICO, New Delhi

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C. Model Outline for Progress Report

PROGRESS REPORT

Submission of regular and timely progress reports is essential for efficient project management. IFAD has no standard format for progress reports, as IFAD‟s reporting requirements should always to the extent possible be integrated with the reporting requirements and reporting systems of the Borrower and, where applicable other donors. However, the format and content of a progress report could be as suggested below.

Report Title Date Table of Contents Fiscal Year Currency Exchange Rates, historical trend Weights and measures Abbreviations used Executive Summary Project Area Map INTRODUCTION PROJECT OBJECTIVE PROJECT DESCRIPTION PROJECT PERFORMANCE TILL XXX Component 1: Physical and financial progress Best Practices Key Lessons learned Component 2: Physical and financial progress Best Practices Key Lessons learned Component 3: Physical and financial progress Best Practices Key Lessons learned Training and Capacity Building by sub-component Physical and financial progress Best Practices Key Lessons learned Staff training and capacity building Key lessons and best practices Convergence Convergence: Convergence will be part of the Annual Work Plan and Budget and needs to be reported in the following section as part of the progress report; table -2 needs to be elaborated) Activity Total

investment (INR)

IFAD Loan contribution (INR)

Government Scheme/Programme Contribution (INR)

Percentage of Convergence from Government Schemes (%)

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Project Management Monitoring and Evaluation:

(This section will contain the progress made in M&E, that will inform the completion of reports,

surveys, and studies and innovations in the learning process, issues, including the responsiveness of

the stakeholders to the system, etc)

Knowledge Management:

(This section will capture all the internal and external processes that the project that the project has

carried out to manage, collect, collates and disseminate knowledge. This will include knowledge

products such as studies, policy briefs, newsletters, etc. Workshops and their outcomes will also

feature in this section and other policy/advocacy initiative.)

Gender

(This section will elaborate how gender mainstreaming processes have been carried out at both

organisational level and programme implementation. The gender sensitisation workshops, refresher

course and their outcomes will feature. The section should also identify issues and challenges the

project is facing in mainstreaming gender interventions.)

Organisation and Staffing: (The Progress Report will include an updated organisation chart of the Project Implementation Unit and state whether it is a separate, independent entity or part of a larger organisation – e.g. a Government Department/Ministry or a Statutory (state-owned parastatal) enterprise. The chart will give all the names and titles of all the senior managers in the PIA – e.g. Project Manager, Planning and M&E Manager, Gender and Institutions Manager, Finance Manager, etc. Although the Chart will largely remain unchanged during the implementation phase, there may be periodic changes in senior management, in which case IFAD will be kept informed by the PCU as and when such changes occur and the Chart updated accordingly. A summary of the staffing of the PCU will also be given, with numbers under each category (sex disaggregated), position/job grades and salary and other compensation details. The summary will be compared with PIU personnel costs estimated at appraisal and variations explained. )

State/district/block level coordination committee meetings Board Meetings of UGVS, UPASAC & WMD Society DSA Activities: List of DSAs engaged and their work performance

FNGO Activities: List of FNGOs and other Partner Agencies engaged and their work performance Sources and Uses of Funds Statement (for the Quarter or Period and Year-to-Date) (This statement shows the opening cash and bank balances, listing of the sources and amounts of funds received during the quarter, expenditures by project component and in line with the IFAD loan withdrawal schedule in the loan agreement, and the cash and bank balances at the end of the quarter. It also shows cumulative figures to date side by side) Statement of Use of Funds by Expenditure Type (This table lists expenditures by disbursement categories and by expenditure type. A meaningful feature here is the comparative listing of the actual expenditure figures with the estimates from the latest available Annual Work Plan & Budget (AWPB) and the showing of the variances and appropriate explanation for each such variance. The total estimated costs of the project components as per the appraisal report are also shown side by side Procurement Report (Updated Procurement Plan) (The Procurement Report consists of the initially approved Procurement Plan prepared by the recipient/PIP and submitted to IFAD at loan negotiations or at loan effectiveness and duly up dated reflecting all the key procurements made on behalf of the project and their status at the end of the

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reporting quarter or other agreed period. The Procurement Report will include all key procurement of goods; works and consulting and other services undertaken by the project since project start up.) Accounts and Audit: (This part will describe the status of the PIU‟s books of accounts, preparation of quarterly accounts, readiness for the accounts for annual audit and progress or completion of the audit (during the appropriate quarter). Where audits have been completed, key findings, observe any legal covenant by the recipient of PIU will also be highlighted provided in this part of the progress report. Compliance with Conditionality/Legal Covenants: (Status of compliance with all stipulated conditions included, as covenants in the loan agreement will be given. Problem relating to non-compliance of legal compliance of any legal covenant by the recipient or PIU will also be highlighted with suggested resolution.)

Way forward and Conclusion Annexures Annex-1: AWPB- showing physical versus financial progress. (Monitoring physical progress and expenditures in relation to such progress is the key element of project management. The output indicators are taken from the physical performance targets set at appraisal and generally relate output to cost. Output indicators will be quantifiable, easily measurable and indicative of the performance of each project component, e.g. number of hectares of tree crops planted, number of kilometres of feeder roads constructed or rehabilitated, number of crop marketing centres constructed, etc. Here again, actual and targets set at appraisal will be compared and explanation provided for deviations.

Annex-2: Budget versus Actual Expenditure by component and Year Annex-3: Progress by Category and year since inception of project implementation

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Annex-1.9.1: Model Template for AWP&B for UGVS & UPASAC

Acct

Code # COMPONENT Appraisal AWPB Q1 Q2 Q3 Q4 GoUK IFAD Banks Bene Phy Financial

Subccomponents %

10000 FOOD SECURITY & LIVELIHOOD ENHANCEMENT

11000 Food Security & Scaling up 1,210,017 10,553 2,638 2,638 2,638 2,638 57 9,498 0 999 % 0

12000 Access to Market 140,298 3,915 979 979 979 979 392 3,524 0 0 % 0

13000 Innovation Linkages 119,572 1,480 370 370 370 370 148 1,332 0 0 % 0

14000 Vocational training 207,000 2,000 500 500 500 500 200 1,800 0 0 % 0

15000 UGVS Project Management 484,313 3,050 763 763 763 763 1,025 2,025 0 0 % 0

Subtotal Food Security 2,161,200 20,998 5,249 5,249 5,249 5,249 1,821 18,178 0 999 0

30000 LIVELIHOODS FINANCE:

31000 Livelihoods Finance 1,200,229 4,195 1,049 1,049 1,049 1,049 1,784 2,402 0 10 % 0

subtotal Livelihood Financing 1,200,229 4,195 1,049 1,049 1,049 1,049 1,784 2,402 0 10 0

40000 PROJECT MANAGEMENT:

41000 Central Project Coordination Unit 29,878 300 75 75 75 75 150 150 0 0 % 0

42000 M&E and Knowledge Management-UGVS 88,999 7,730 1,860 290 290 5,290 1,274 6,456 0 0 % 0

subtotal Project Management 118,877 8,030 1,935 365 365 5,365 1,424 6,606 0 0 0

Total 3,480,306 33,222 8,233 6,663 6,663 11,663 5,028 27,185 0 1,009 0

Notes Figures rounded to thousands

This Table is generated automatically. Please do not input any values in any of the cells

In Detailed Tables, input values only within YELLOW-SHADED cells

Total Amount (000) AchievementQuarterly planned expenditure (000 INR) AWP&B Financing Plan (000 INR)

AWP&B Revised date:

AWP&B Original date:

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INDIA: UTTARAKHAND INTEGRATED LIVELIHOODS SUPPORT PROJECT

AWPB: October 2012 to March 2013

Component: 1Subcomponent:1.1 Food Security & Scaling up

Acct Unit Cost

Code # Activity Unit Total Amount INR Units Amount Q1 Q2 Q3 Q4 EA DA PA FR % GoUK IFAD Banks Bene

Units (000 INR) (000 INR)

11000 Food Security & Scaling up

INVESTMENT COSTS

11100 A. Irrigation & Infrastructure

11110 Micro-irrigation per LC 100 41,255 350,000 0 0 0 0 0 0 CW_EA CW_DA CW_PA IFAD ( 75% ), BEN ( 15% )0 0 0 0

11120 Other irrigation works per LC 100 76,869 650,000 0 0 0 0 0 0 CW_EA CW_DA CW_PA IFAD ( 75% ), BEN ( 15% )0 0 0 0

11200 B. Food Security Enhancement

11210 Support to VPGs/PGs 1st year PGs 3852 172,128 40,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ), BEN ( 10% )0 0 0 0

11220 Support to VPGs/PGs-2nd year PGs 3852 179,874 40,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ), BEN ( 10% )0 0 0 0

11230 Seed capital to VPGs: 1st year /a VPGs 769 6,873 8,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11240 Seed capital VGPs: 2nd year VPG 769 7,182 8,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11250 Support to ULIPH federations LS 70 15,248 200,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11300 C. Livelihoods upscaling

11350 1. New Blocks

11351 Agri- Plan implementation /b LC 60 14,217 200,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ),BEN (10%) 0 0 0 0

11352 Agri Plan implementation-2 /c LC 60 14,856 200,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ), BEN (10%) 0 0 0 0

11353 Procurement Training LC 18 1,051 50,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

11354 Financial Management Training LC 18 1,051 50,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

11355 Agency staff Training in FSIP No 12 656 50,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

11356 Agency staff Training in convergence No 12 656 50,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

11357 CRP capacity building CRP 140 472 3,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

11358 Convergence meeting meeting 440 1,103 2,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

11359 BOD meeting meeting 840 528 500 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

11360 AGM meeting meeting 210 3,960 15,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

11361 Village/Block level meeting LC 26 278 10,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11362 Legal compliance & Audit LC 210 2,640 10,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

11363 Livestock breeding programme Block 54 25,837 400,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ), BEN (10%) 0 0 0 0

11380 2. ULIPH Blocks

11381 Convergence meeting No 420 939 2,000 140 280 70 70 70 70 CB_EA CB_DA CB_PA IFAD ( 90% ) 28 252 0 0

11382 Annual Plan Training LC 15 801 50,000 5 250 63 63 63 63 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 25 225 0 0

11383 BOD meeting No 840 469 500 70 35 9 9 9 9 CB_EA CB_DA CB_PA IFAD ( 90% ) 4 32 0 0

11384 AGM meeting No 210 2,346 10,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

11385 Annual Audit LC 420 2,512 5,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

11386 Livestock breeding programme Block 102 48,804 400,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ), BEN (10%) 0 0 0 0

11400 D. Agribusiness Planning 0 0 0 0

11410 Agribusiness Plan preparation LC 130 2,951 20,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90%) , BEN ( 10% )0 0 0 0

11420 Partner staff project planning LS 5 214 42800 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90%) , BEN ( 10% )0 0 0 0

11430 Partner staff Exposure visits /d batch 5 676 120,000 0 0 0 0 0 0 LIVE_EA CB_DA SPC_PA IFAD ( 90%) , BEN ( 10% )0 0 0 0

11500 E. Support to Partner Agencies 0 0 0 0

1. Office equipment 0 0 0 0

11510 Social PNGO/Agencies /e set 8 1,453 170,000 0 0 0 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

11520 Technical NGOs/Agencies /f set 6 1,373 205,000 0 0 0 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

11530 ULIPH federations /g set 22 3,996 170,000 0 0 0 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

11540 Livelihood collectives (LC) Lumpsum 30 2,100 60,000 0 0 0 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

Total Investment Costs 635,369 565 141 141 141 141 57 509 0 0

Costab AccountsQuarterly planned expenditure (000 INR) Financing Plan (000 INR)

FOOD SECURITY & LIVELIHOOD ENHANCEMENT

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Component: 1Subcomponent:1.1 Food Security & Scaling up

Acct Unit Cost

Code # Activity Unit Total Amount INR Units Amount Q1 Q2 Q3 Q4 EA DA PA FR % GoUK IFAD Banks Bene


11000 Food Security & Scaling up

RECURRENT COSTS

11600 1. Social PNGO: Salary, O&M costs /h

11610 Livelihood Coordinators Pers_month 990 16,862 15,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11620 Livelihood facilitators Pers_month 5910 53,701 8,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11630 Accountants/Assistants Pers_month 990 11,241 10,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11640 Operating Costs Pers_month 990 14,613 13,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11650 Overhead costs /i Staff month 990 23,606 21,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11700 2. Technical PNGO: salary, O&M costs

11710 Coordinators Pers_month 378 13,772 30,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11720 Agri-business officers Pers_month 1554 37,579 20,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11730 Business Development officers Pers_month 1554 37,579 20,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11740 Market Linkage Officers Pers_month 360 8,702 20,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11750 Junior Engineers Pers_month 306 7,264 20,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11760 Accountants/Assistants Pers_month 378 4,591 10,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11770 Operating costs Pers_month 360 17,403 40,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11780 Overheads /j Staff month 360 13,575 31,200 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11800 3. ULIPH Federations: Salary, O&M costs

11810 Business Coordinators-ULIPH blocks /k Pers_month 2769 46,105 15,000 213 3195 799 799 799 799 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 2,876 0 320

11820 Business facilitators-ULIPH Blocks Pers_month 2769 24,589 8,000 213 1704 426 426 426 426 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 1,534 0 170

11830 Accountants/Assistants-ULIPH blocks Pers_month 2788 30,931 10,000 232 2320 580 580 580 580 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 2,088 0 232

11840 ULIPH federations Operating costs /l Pers_month 1917 27,034 13,000 213 2769 692 692 692 692 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 2,492 0 277

11850 Overheads of ULIPH federations /m Staff month 2769 32,120 10,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11900 4. LC in New Blocks: Salaries, allowances

11910 Livelihood Coordinator Pers_month 2070 39,665 15,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11920 Livelihood facilitators Pers_month 5940 60,831 8,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11930 Accountants/Assistant Pers_month 2070 26,444 10,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

11940 Travel allowances Pers_month 2070 26,444 10,000 0 0 0 0 0 0 OM_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

Total Recurrent costs 574,648 9,988 2,497 2,497 2,497 2,497 0 8,989 0 999

Total Cost 1,210,017 10,553 2,638 2,638 2,638 2,638 57 9,498 0 999

Costab AccountsQuarterly planned expenditure (000 INR) Financing Plan (000 INR)



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Component:1 at the time of printing, these

Subcomponent:1.2 Access to Market

Acct Unit Cost

Code # Activity Unit Total Amount INR Units Amount Q1 Q2 Q3 Q4 EA DA PA FR% GoUK IFAD Banks Bene Phy Financial


12000 Access to Market

INVESTMENT COSTS

12100 A. Last mile Infrastructure

12110 River crossing trolleys & ropeways No 6 7,271 1,000,000 0 0 0 0 0 0 CW_EA CW_DA CW_PA IFAD ( 90% ) 0 0 0 0

12120 ICT-based information Lumpsum 3 670 200,000 0 0 0 0 0 0 CW_EA CW_DA CW_PA IFAD ( 90% ) 0 0 0 0

12200 B. Assembly markets

12210 Collection centres /a No 60 71,632 1,000,000 0 0 0 0 0 0 CW_EA CW_DA CW_PA IFAD ( 90% ) 0 0 0 0

12300 C. Capacity building

12310 Farmer exposure visit to market /b No 120 7,141 50,000 10 500 125 125 125 125 CB_EA SPC_DA SPC_PA IFAD ( 90% ) 50 450 0 0

12320 Agency staff AUP preparation training No 4 221 50,000 0 0 0 0 0 0 CB_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

12330 Agency staff business Plan preparation No 4 221 50,000 0 0 0 0 0 0 CB_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

12340 Farmers exposure visit to Market /c No 140 7,648 50,000 0 0 0 0 0 0 CB_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

12400 D. Sub-sector development: New Blocks

12410 Value-chain planning & reviews No 36 1,279 30,000 9 270 68 68 68 68 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 27 243 0 0

12420 Enterprises assessment study No 18 549 25,000 0 0 0 0 0 0 SURVEY_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

12430 Technical Assistance Pers_month 126 5,813 40,000 18 720 180 180 180 180 TA_EA CB_DA CB_PA IFAD ( 90% ) 72 648 0 0

12440 Market / value chain studies study 18 7,924 400,000 2 800 200 200 200 200 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 80 720 0 0

12450 Buyers visits No 9 754 75,000 0 0 0 0 0 0 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 0 0 0 0

12460 Organising Fairs No 60 7,330 100,000 0 0 0 0 0 0 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 0 0 0 0

12470 Buyer-seller meet at clusters Block 45 1,649 30,000 0 0 0 0 0 0 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 0 0 0 0

12480 Promotion, Miscellaneous LC 210 6,328 25,000 0 0 0 0 0 0 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 0 0 0 0

12500 E. Sub-sector development: ULIPH Blocks /e

12510 Value-chain planning & reviews No 17 545 30,000 17 510 128 128 128 128 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 51 459 0 0

12520 Enterprises assessment study No 34 950 25,000 15 375 94 94 94 94 SURVEY_EA CB_DA CB_PA IFAD ( 90% ) 38 338 0 0

12530 Technical Assistance Pers_month 153 6,838 40,000 6 240 60 60 60 60 TA_EA CB_DA CB_PA IFAD ( 90% ) 24 216 0 0

12540 Buyer-seller meet at clusters Block 51 1,709 30,000 0 0 0 0 0 0 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 0 0 0 0

12550 Promotion, Miscellaneous LC 140 3,824 25,000 20 500 125 125 125 125 BUSINESS_EACB_DA CB_PA IFAD ( 90% ) 50 450 0 0

Total Investment costs 140,298 3,915 979 979 979 979 392 3524 0 0 % 0

Total cost

AchievementCostab AccountsQuarterly planned expenditure (000 INR) Financing Plan



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Component:1Subcomponent:1.3 Innovation Linkages

Acct Unit Cost



13000 Innovation Linkages

Linkages with R&D Institutes

13100 VPKAS Crop research /a year 6 43,400 6,047,000 0.1 605 151 151 151 151 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 60 544 0 0

13200 GBPUAT Training & research year 3 8,380 2,500,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

13300 HARC citrus action research year 3 8,380 2,500,000 0.25 625 156 156 156 156 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 63 563 0 0

13400 Livestock & poultry others year 3 3,503 1,000,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

13500 Non-farm & Market Development- Pilots /b Lumpsum 6 21,531 3,000,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

13600 Action Research on NTFP value chain Lumpsum 6 14,354 2,000,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

13700 Action Research on Organic value chain Lumpsum 5 8,768 1,500,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

13800 Action Research on eco-tourism value chain Lumpsum 5 5,846 1,000,000 0.25 250 63 63 63 63 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 25 225 0 0

13850 Action Research with Business Schools /c No 30 1,754 50,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

13900 Innovations with Grant Partners No 4 2,286 500,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

13950 Other Innovation Linkages No 4 1,371 300,000 0 0 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

Total 119,572 1,480 370 370 370 370 148 1,332 0 0 % 0.00




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Component:1Subcomponent: 1.4 Vocational Training

Acct Unit Cost



14000 Vocational Training

Vocational Training

14100 Planning study for vocational training study 1 2,000 2,000,000 1 2000 500 500 500 500 CB_EA CB_DA CB_PA IFAD ( 90% ) 200 1800 0 0

14200 Support to Youth for vocational training candidate 10000 200,000 20,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 75% ), BEN (25%) 0 0 0 0

14300 Facilitation fees to resource agency student 10000 5,000 500 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

Total 207,000 2000 500 500 500 500 200 1800 0 0 % 0.00




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Component: 1Subcomponent:1.5 UGVS Project Management Unit

Acct Unit Cost



15000 UGVS Project Management Unit

INVESTMENT COSTS

15100 A. State level unit

1. Vehicles

15110 Field vehicle No 2 1282 600,000 0 0 0 VEHIC_EA VEM_DA VEHIC_PA IFAD ( 75% ) 0 0 0 0

15120 Motor cycles No 0 0 0 0 VEHIC_EA VEM_DA VEHIC_PA IFAD ( 75% ) 0 0 0 0

2. Office Equipment

15130 Computers No 4 171 40,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

15140 Laptops No 8 342 40,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

15150 Printers-multifunction No 2 183 75,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

15160 Printers No 2 24 10,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0


15170 Consultants pers_month 375 13379 30,000 15 450 113 113 113 113 TA_EA CB_DA CB_PA IFAD ( 90% ) 45 405 0 0

15180 Staff Training Lumpsum 7 798 100,000 1 100 25 25 25 25 TRAIN_EA CB_DA CB_PA IFAD ( 90% ) 10 90 0 0

15190 Study tours Number 10 5846 500,000 1 500 125 125 125 125 CB_EA CB_DA CB_PA IFAD ( 90% ) 50 450 0 0

15195 Annual retreat Number 6 7177 1,000,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

15200 B. Divisional level

1. Field vehicles


15210 Motor cycles No 20 1282 60,000 0 0 0 VEHIC_EA VEM_DA VEHIC_PA IFAD ( 75% ) 0 0 0 0

2. Office Equipment 0 0 0 0

15300 Computers No 6 268 40,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

15310 Laptops No 6 268 40,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

15320 Printers-multifunction No 6 549 75,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0


15340 Other equipment No 12 1341 100,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

15400 3. TA & Staff Training

15410 Training NGO & UGVS staff course 6 641 100,000 2 200 50 50 50 50 TRAIN_EA CB_DA CB_PA IFAD ( 90% ) 20 180 0 0

Total Investment Costs 38,185 1,250 313 313 313 313 125 1,125 0 0 0




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Component: 1Subcomponent:1.5 UGVS Project Management Unit

Acct Unit Cost



15000 UGVS Project Management Unit

RECURRENT COSTS

15500 A. State level

1. Staff salary

15501 Project Director /a pers_month 72 12919 150,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15502 Chief Programme Manager/DPD pers_month 72 8182 95,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15503 Chief /Convergence Officer pers_month 72 6459 75,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15504 Programme Manager-Gender & Institutions pers_month 72 4737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15505 Programme Manager-Market Access pers_month 72 4737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15506 Programme Manager-Agri/horti /b pers_month 72 4737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15507 Audit Manager-UGVS pers_month 72 4737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15508 Finance Manager pers_month 72 4737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15509 HR Manager pers_month 72 4737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15510 Programme Manager-Tourism pers_month 72 4737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15511 Asst Manager: Finance pers_month 144 6029 35,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15512 Assistant - Finance pers_month 144 2842 16,500 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15513 Project Assistant pers_month 288 5684 16,500 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15514 Drivers pers_month 216 3617 14,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15515 Attendants pers_month 144 2067 12,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15516 Security Guards pers_month 144 2067 12,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15550 2. Operating costs

15510 Staff travel allowance month 72 13780 160,000 3 480 120 120 120 120 OM_EA OM_DA OM_PA IFAD ( 50% ) 240 240 0 0

15520 Office operating costs month 72 21531 250,000 3 750 188 188 188 188 OM_EA OM_DA OM_PA IFAD ( 50% ) 375 375 0 0

15530 Office rent month 72 6890 80,000 0 0 0 0 0 0 OM_EA OM_DA OM_PA IFAD ( 50% ) 0 0 0 0

15600 B. Divisional Level

1. Staff salary

15610 Divisional Project Managers pers_month 432 25837 50,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15620 Asst Managers-Market Access & tourism pers_month 432 16536 32,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15630 Asst Managers- Finance pers_month 432 16536 32,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15640 Asst Manager-Agri/horticulture pers_month 432 16536 32,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15650 Asst Manager-Institutions & Gender pers_month 432 16536 32,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15660 Asst Managers Planning & M&E pers_month 432 16536 32,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15670 Internal Auditors pers_month 432 12919 25,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15680 Assistants pers_month 1728 34105 16,500 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15690 Drivers pers_month 864 14469 14,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15691 Attendants pers_month 1728 24804 12,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

15692 Security Guards pers_month 864 12402 12,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0


15710 Staff travel allowance month 432 51675 100,000 3 300 75 75 75 75 OM_EA OM_DA OM_PA IFAD ( 50% ) 150 150 0 0

15720 Office operating costs month 432 46507 90,000 3 270 68 68 68 68 OM_EA OM_DA OM_PA IFAD ( 50% ) 135 135 0 0

15730 Office rent month 432 15502 30,000 0 0 0 0 0 0 OM_EA OM_DA OM_PA IFAD ( 50% ) 0 0 0 0

Total Recurrent costs 446,127 1,800 450 450 450 450 900 900 0 0 0

Total cost 484,313 3,050 763 763 763 763 1,025 2,025 0 0 % 0




AWP&BAppraisal

315



Component:3 LIVELIHOODS FINANCE

Subcomponent:3.1 Livelihood Finance

Acct Unit Cost



31000 Livelihood Finance

INVESTMENT COSTS

A. Vehicles


31200 B. Financial initiatives

31210 Security support to BF No 11 301 25,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ), BEN ( 10% )0 0 0 0

31220 Operational Support to BF No 11 723 60,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ), BEN ( 10% )0 0 0 0

31230 Product literacy training LC 130 1,459 10,000 10 100 25 25 25 25 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ), BEN ( 10% )0 90 0 10

31240 Product literacy training materials LC 130 292 2,000 10 20 5 5 5 5 EQUIP_EA CB_DA EQUIP_PA IFAD ( 90% ) 2 18 0 0

31300 C. Risk Management

31310 Insurance premium study LS 1 500 500,000 1 500 125 125 125 125 GOVT 500

31320 Risk insurance workshop LS 2 214 100,000 2 200 50 50 50 50 TRAIN_EA CB_DA CB_PA IFAD ( 90% ) 20 180 0 0

31330 Risk insurance implementation support LS 6 3,350 500,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

31400 D. Banking Initiatives

31410 Training LCs on banking product No 11 1,234 100,000 0 0 0 0 0 0 TRAIN_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

31420 Workshop: districts and state No 46 791 15,000 2 30 8 8 8 7.5 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 3 27 0 0

31430 Training LC on Appraisal skills /a No 17 2,856 150,000 5 750 188 188 188 187.5 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 75 675 0 0

31440 Bankers Exposure visits No 2 671 300,000 1 300 75 75 75 75 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 30 270 0 0

31450 Bank linkage through PACs strengthening PACs 8 1,385 150,000 0 0 0 0 0 0 CB_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

31460 Bank linkage through PACs strengthening PACs 8 965 100,000 0 0 0 0 0 0 CB_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

31470 Branch Expansion Support-RFI branches 12 1,311 100,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

31480 Branch expansion support-RFI /b branches 12 1,370 100,000 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

31490 Impact study on RFI study 1 583 500,000 0 0 0 0 0 0 SURVEY_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

31500 E. Fund support to LC

31510 Viability Gap Fund to LC No 100 20,000 200,000 0 0 0 0 0 0 FUND_EA FINANCE_DAFUND_PA IFAD ( 100% ) 0 0 0 0

31520 Grant to PG/SHG /c LS 3000 45,000 15,000 0 0 0 0 0 0 GOVT 0

31600 F. Development Financing

31610 Development financing Lumpsum 70,000 12000 1 12 3 3 3 3 GOVT 12

31620 Leveraged credit for SMEs Lumpsum 560 112,000 200,000 0 0 0 0 0 0 FINANCE_EAFINANCE_DAFINANCING_PABANKS ( 90% ), BEN (10%)0 0 0 0

31630 Term loans to micro-enterprises No 6100 457,500 75,000 0 0 0 0 0 0 FINANCE_EAFINANCE_DAFINANCING_PABANKS (90%), BEN (10%)0 0 0 0

31640 Cash-credit limits to SHGs No 3460 173,000 50,000 0 0 0 0 0 0 FINANCE_EAFINANCE_DAFINANCING_PABANKS ( 100% ) 0 0 0 0

31650 Kisan credit cards No 9500 237,500 25,000 0 0 0 0 0 0 FINANCE_EAFINANCE_DAFINANCING_PABANKS ( 100% ) 0 0 0 0

Total Investment costs 1,133,646 1,912 478 478 478 478 642 1,260 0 10 0


AWP&BAppraisal AchievementCostab AccountsQuarterly planned expenditure (000 INR) Financing Plan

316



Component: 4 PROJECT MANAGEMENT

Subcomponent:4.1 Central Project Coordination Unit

Acct Unit Cost



41000 Central Project Coordination Unit

INVESTMENT COSTS

41100 1. Office Equipment

41110 Computers /Laptops No 4 171 40,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

41120 Multifunction Printers N0 1 80 75,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0


41140 Office furniture set 1 160 150,000 0 0 0 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 0 0 0 0

2. Auditing

41200 2. External audits /a Number 6 7,177 1,000,000 0 0 0 LIVE_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

Total investment costs 7,610 0 0 0 0 0 0 0 0 0 % 0

RECURRENT COSTS

41300 1. Staff salary

41301 Project Coordinator /b pers_month 72 0 0 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

41302 Finance Controller pers_month 75 8,919 100,000 3 300 75 75 75 75 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 150 150 0 0

41303 Asst Manager-Finance pers_month 72 2,756 32,000 0 0 0 0 0 0 SAA_EA OM_DA OM_PA IFAD ( 50% ) 0 0 0 0

41304 Project Assistants Pers_month 144 2,842 16,500 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

41400 2. PCU Operating costs 0 0 0 0 0

41410 Office operating costs month 72 3,445 40,000 0 0 0 0 0 0 OM_EA OM_DA OM_PA IFAD ( 50% ) 0 0 0 0

41420 Vehicle hiring month 72 4,306 50,000 0 0 0 0 0 0 OM_EA OM_DA OM_PA IFAD ( 50% ) 0 0 0 0

Total Recurrent cost 22,269 300 75 75 75 75 150 150 0 0 % 0

29,878 300 75 75 75 75 150 150 0 0 % 0



317




Subcomponent:4.2 Monitoring Evaluation & Knowledge Management-UGVS

Acct Unit Cost



42000 Monitoring Evaluation & Knowledge Management

I. INVESTMENT COSTS

A. M&E and Knowledge Management

42100 1. Office equipment

42110 Computers/Laptops No 10 409 40,000 10 400 400 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 100 300 0 0

42120 Printers-Multiffunction No 1 77 75,000 1 75 75 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 19 56 0 0


42140 Data-enabled Mobile phones /a No 20 205 10,000 20 200 200 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 50 150 0 0

42150 Furniture & miscellaneous Lumpsum 1 307 300,000 1 300 75 75 75 75 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 75 225 0 0

42200 B. Training & workshops


42210 At Block level /b meetings 624 1,493 2,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42220 At Division level meetings 144 3,445 20,000 12 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42230 At State level meetings 24 1,435 50,000 2 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42240 State level PMC, GB & PSC meetings 36 431 10,000 3 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42300 2. Quarterly learning/sharing workshops

42310 at Block level meetings 312 1,866 5,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42320 at Divisional level meetings 36 861 20,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42330 at State level meetings 24 2,871 100,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42400 3. Workshops

42410 Project start up WS /c No 1 230 225,000 1 225 225 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 23 203 0 0

42420 Divisional startup workshops participants 6 614 100,000 6 600 600 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 60 540 0 0

42430 Mid-term review /d Review 1 263 225,000 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42440 Project completion review /e PCR 1 300 225,000 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0



318




Subcomponent:4.2 Monitoring Evaluation & Knowledge Management-UGVS

Acct Unit Cost




42500 4. Training & TA

42510 KM documentation /f course 6 718 100,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42520 knowledge sharing tools course 2 234 100,000 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42430 RIMS & M-E training at state level course 2 229 100,000 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42440 RIMS/M&E training at Divn level course 2 229 100,000 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42450 Annual Outcome Survey survey 6 359 50,000 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42460 KAPs survey /g survey 1 251 225,000 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42470 Technical Assistance /h year 6 1,435 200,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42600 5. Studies & others

42610 Communication materials LS 42 2,512 50,000 6 0 0 0 0 0 SURVEY_EA CB_DA SURVEY_PA IFAD ( 90% ) 0 0 0 0

42620 News letters & publications Lumpsum 6 5,024 700,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42630 Website maintenance year 6 36 5,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

42640 Monitoring surveys /i survey 3 17,605 5,000,000 1 5000 5000 SURVEY_EA CB_DA SURVEY_PA IFAD ( 90% ) 500 4500 0 0

Total Investment cost 43,507 6,870 1,645 75 75 5,075 844 6,026 0 0

II. RECURRENT COSTS

A. M&E and Knowledge Management

42700 1. Staff Salary

42701 Planning/M&E Manager Pers_month 72 4,737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

42702 MIS Manager Pers_month 72 4,737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

42703 KM Manager Pers_month 72 4,737 55,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

42704 Statistical Officer Pers_month 72 4,306 50,000 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

42705 Planning/ M&E Assistant Pers_month 72 1,421 16,500 0 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

42706 Project Assistants Pers_month 75 1,472 16,500 3 50 12 12 12 12 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 25 25 0 0

42707 Enumerators Pers_month 900 10,703 10,000 36 360 90 90 90 90 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 180 180 0 0


42810 Staff travelling allowance month 75 3,568 40,000 3 120 30 30 30 30 OM_EA OM_DA OM_PA IFAD ( 50% ) 60 60 0 0


42830 Vehicle hiring charges month 75 4,460 50,000 3 150 38 38 38 38 OM_EA OM_DA OM_PA IFAD ( 50% ) 75 75 0 0

Total Recurrent cost 45,492 860 215 215 215 215 430 430 0 0

Total M&E and KM 88,999 7,730 1,860 290 290 5,290 1,274 6,456 0 0 % 0



319

Annex-1.9.2: Model Template for AWP&B for WMD

Acct

Code # COMPONENT Appraisal AWPB Q1 Q2 Q3 Q4 GoUK IFAD Banks Bene Phy Financial

Subccomponents %

20000 PARTICIPATORY WATERSHED DEVELOPMENT

21000 Participatory Watershed Development 4,710,320 412,651 102,288 102,288 102,288 105,788 237,176 161,353 0 14,123 % 0

subtotal Watershed Development 4,710,320 412,651 102,288 102,288 102,288 105,788 237,176 161,353 0 14,123 0

PROJECT MANAGEMENT:

43000 M&E and Knowledge Management-WMD 81,368 12,720 3,180 3,180 3,180 3,180 1,856 10,864 0 0 % 0

subtotal Project Management 81,368 12,720 3,180 3,180 3,180 3,180 1,856 10,864 0 0 0

Total 4,791,688 425,371 105,468 105,468 105,468 108,968 239,032 172,217 0 14,123 0

Notes Figures rounded to thousands

This Table is generated automatically

Do not input any value in any of the cells within Table

AWP&B Revised date:



SUMMARYAWP&B Original date:

Total Amount (000) AchievementQuarterly planned expenditure (000 INR) AWP&B Financing Plan (000 INR)

320



Component:2Subcomponent:2.1 Participatory Watershed Development

Acct Unit Cost

Code # Activity Unit Total Amount INR Units Amount Q1 Q2 Q3 Q4 EA DA PA FR % GoUK IFAD Banks Bene Phy Financial


21000 Participatory Watershed Development

Investment costs

21100 A. Social Mobilisation

21110 NGO support for social mobilisation NGO 14 65,597 4,000,000 2 8,000 2000 2000 2000 2000 SPC_EA SPC_DA SPC_PA IFAD ( 90% ) 800 7,200 0 0

21120 Social / Environmental Consultants No 14 9,839 600,000 2 1,200 300 300 300 300 TA_EA CB_DA SURVEY_PA IFAD ( 90% ) 120 1,080 0 0

21130 Village level Motivators Person 4900 137,753 24,000 700 16,800 4200 4200 4200 4200 CB_EA SPC_DA SPC_PA IFAD ( 90% ) 1,680 15,120 0 0

21140 Account Asst at GP level Person 1925 135,293 60,000 275 16,500 4125 4125 4125 4125 CB_EA SPC_DA SPC_PA IFAD ( 90% ) 1,650 14,850 0 0

21150 Admin Expenditure Year 1925 56,372 25,000 275 6,875 1719 1719 1719 1719 CB_EA SPC_DA SPC_PA IFAD ( 90% ) 688 6,188 0 0

21200 B. Watershed & Village Development

21210 Watershed treatment /a GP 275 1,233,281 3,847,200 15 57,708 14427 14427 14427 14427 WD_EA WD_DA WD_PA IFAD ( 80% ), BEN ( 10% )5,771 46,166 0 5,771

21300 C. Food Security Enhancement Support


21310 Support to PGs: first year PGs 3900 130,895 30,000 780 23,400 5850 5850 5850 5850 LIVE_EA CB_DA LIVE_PA IFAD ( 80% ), BEN ( 20% )0 18,720 0 4,680

21320 Support to PG second year PG 3900 136,785 30,000 0 0 0 0 0 0 LIVE_EA CB_DA LIVE_PA IFAD ( 80% ), BEN ( 20% )0 0 0 0

21330 Support to PG third year PGs 3900 142,941 30,000 0 0 0 0 0 0 LIVE_EA CB_DA LIVE_PA IFAD ( 80% ), BEN ( 20% )0 0 0 0

21340 Miscellaneous GP 250 4,102 14,000 15 210 53 53 53 53 LIVE_EA CB_DA LIVE_PA IFAD ( 80% ), BEN ( 20% )0 168 0 42


21350 Small infrastructure /b GP 275 144,255 450,000 15 6,750 1688 1688 1688 1688 CW_EA CB_DA CB_PA IFAD ( 80% ), BEN ( 20% )0 5,400 0 1,350

21360 Collection centres/MUC GP 275 64,113 200,000 15 3,000 750 750 750 750 CW_EA CB_DA CB_PA IFAD ( 80% ), BEN ( 20% )0 2,400 0 600

21370 Beneficiary contribution /c GP 275 35,903 112,000 15 1,680 420 420 420 420 WD_EA WD_DA WD_PA BEN ( 100% ) 0 0 0 1,680

21380 NGO support for Agribusiness /d YEAR 5 54,977 9,000,000 0 0 0 0 0 0 SPC_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

21400 D. Livelihood upscaling

1. Promotion of IGA

21410 Support to VG Person 1464 140,097 80,000 0 0 0 0 0 0 LIVE_EA CB_DA LIVE_PA IFAD ( 80% ) 0 0 0 0


21420 Support to LC for IGA upscaling No 70 42,760 500,000 0 0 0 0 0 0 LIVE_EA CB_DA LIVE_PA IFAD ( 80% ), BEN ( 20% )0 0 0 0

21430 Miscellaneous Year 7 40,998 5,856,845 0 0 0 0 0 LIVE_EA CB_DA LIVE_PA IFAD ( 80% ), BEN ( 20% )0 0 0 0

PARTICIPATORY WATERSHED DEVELOPMENT



321



Component:2Subcomponent:2.1 Participatory Watershed Development

Acct Unit Cost



21000 Participatory Watershed Development

Investment costs

21500 E. Institutional Strengthening


21510 Social Training at village level Lumpsum 5600 68,876 10,500 800 8,400 2100 2100 2100 2100 CB_EA CB_DA CB_PA IFAD ( 90% ) 840 7,560 0 0

21520 Technical Training at village level Lumpsum 5600 68,876 10,500 800 8,400 2100 2100 2100 2100 CB_EA CB_DA CB_PA IFAD ( 90% ) 840 7,560 0 0

21530 Training on production technology Training 700 20,499 25,000 100 2,500 625 625 625 625 CB_EA CB_DA CB_PA IFAD ( 90% ) 250 2,250 0 0

21540 Training at Resource centres Trainings 105 12,299 100,000 15 1,500 375 375 375 375 CB_EA CB_DA CB_PA IFAD ( 90% ) 150 1,350 0 0

21550 Unit level workshop No 350 20,499 50,000 50 2,500 625 625 625 625 CB_EA CB_DA CB_PA IFAD ( 90% ) 250 2,250 0 0

21560 Divisional level workshop No 140 16,399 100,000 20 2,000 500 500 500 500 CB_EA CB_DA CB_PA IFAD ( 90% ) 200 1,800 0 0

21570 State level workshop Lumpsum 70 40,998 500,000 10 5,000 1250 1250 1250 1250 CB_EA CB_DA CB_PA IFAD ( 90% ) 500 4,500 0 0

21580 Exposure visit within state Lumpsum 7 24,599 3,000,000 1 3,000 750 750 750 750 CB_EA CB_DA CB_PA IFAD ( 90% ) 300 2,700 0 0

21590 Overseas exposure visits Lumpsum 5 10,249 2,049,800 0 0 0 0 0 0 CB_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0


21596 IEC consultants Lumpsum 4,920 702,821 0 0 0 0 0 TA_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

21597 IEC materials Lumpsum 17,731 2,532,961 0 0 0 0 0 EQUIP_EA CB_DA CB_PA IFAD ( 90% ) 0 0 0 0

21600 F. Project Management

21610 Vehicles No 10 6,273 600,000 5 3,000 3,000 VEHIC_EA VEM_DA VEHIC_PA IFAD ( 75% ) 750 2,250 0 0

21620 NGO support to M&E system /e Lumpsum 0 0 0 0 SPC_EA SPC_DA SPC_PA IFAD ( 90% ) 0 0 0 0

21630 Annual Audit (External) year 7 4,100 500,000 1 500 500 WD_EA WD_DA WD_PA IFAD ( 80% ) 100 400 0 0

Total Investment costs 2,892,280 178,923 43,856 43,856 43,856 47,356 14,888 149,912 0 14,123 % 0

RECURRENT COSTS

21700 A. Project Management

21710 Staff salary /f Year 7 1,475,925 210,846,428 1 210,846 52712 52712 52712 52712 SAA_EA OM_DA OM_PA GOVT 210,846 0 0 0

21720 Audit Manager pers_month 75 4,906 55,000 3 165 41 41 41 41 SAA_EA OM_DA OM_PA IFAD ( 50% ) 83 83 0 0

21730 Internal Auditors /g pers_month 147 9,642 55,000 3 165 41 41 41 41 SAA_EA OM_DA OM_PA IFAD ( 50% ) 83 83 0 0

21740 Assistants pers_month 732 13,103 15,000 6 90 23 23 23 23 SAA_EA OM_DA OM_PA IFAD ( 50% ) 45 45 0 0

21750 Project Allowance year 7 110,724 15,817,677 0.5 7,909 1977 1977 1977 1977 SAA_EA OM_DA SAA_PA IFAD ( 90% ) 3,954 3,954 0 0

21760 GIS/MIS/ watershed experts /h year 7 38,442 5,491,666 0.5 2,746 686 686 686 686 OM_EA OM_DA OM_PA IFAD ( 90% ) 1,373 1,373 0 0

21770 Travel Allowance year 7 38,442 5,491,666 0.5 2,746 686 686 686 686 SAA_EA OM_DA OM_PA IFAD ( 50% ) 1,373 1,373 0 0

21780 Office expenditure year 7 53,818 7,688,333 0.5 3,844 961 961 961 961 OM_EA OM_DA OM_PA IFAD ( 50% ) 1,922 1,922 0 0

21790 Operating costs, equipment year 7 53,818 7,688,333 0.5 3,844 961 961 961 961 OM_EA OM_DA OM_PA IFAD ( 50% ) 1,922 1,922 0 0

21795 Miscellaneous year 7 19,221 2,745,833 0.5 1,373 343 343 343 343 OM_EA OM_DA OM_PA IFAD ( 50% ) 686 686 0 0

Total Recurrent costs 1,818,040 233,728 58,432 58,432 58,432 58,432 222,287 11,441 0 0 % 0

Total costs 4,710,320 412,651 102,288 102,288 102,288 105,788 237,176 161,353 0 14,123 % 0

PARTICIPATORY WATERSHED DEVELOPMENT



322




Subcomponent:4.3 Monitoring Evaluation & Knowledge Management-WMD

Acct Unit Cost




INVESTMENT COSTS

43200 A. Vehicle & equipment

1. Office equipment

43210 Office equipment /a No 1 588 575,000 1 575 144 144 144 144 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 144 431 0 0

43220 Data-enabled Mobile phones /b No 12 123 10,000 12 120 30 30 30 30 EQUIP_EA VEM_DA EQUIP_PA IFAD ( 75% ) 30 90 0 0


43300 1. Monthly Review meetings

43310 At Block level /c meetings 624 1,493 2,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43320 At Division level /d meetings 144 3,445 20,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43330 At State level /e meetings 24 1,435 50,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43400 2. Quarterly learning/sharing workshops /f

43410 Block level workshop meetings 312 0 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43420 Divisional level workshop meetings 36 0 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43430 State level workshops meetings 6 0 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43500 3. Workshops

43510 Project start up WS /g No 1 230 225,000 1 225 56 56 56 56 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 23 203 0 0

43520 Divisional startup workshops participants 6 614 100,000 6 600 150 150 150 150 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 60 540 0 0

43530 Mid-term review /h Review 1 263 225,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43540 Project completion review /i PCR 1 300 225,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0



323




Subcomponent:4.3 Monitoring Evaluation & Knowledge Management-WMD

Acct Unit Cost




INVESTMENT COSTS

43600 4. KM Training

43610 KM documentation /j course 6 718 100,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43620 knowledge sharing tools course 2 234 100,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43630 RIMS & M-E training at state level /k course 2 0 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43640 RIMS/M&E training at Divn level /l course 2 0 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43650 Annual Outcome Survey survey 6 3,589 500,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43660 KAPs survey /m survey 1 251 225,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43670 Technical assistance /n pers_month 6 1,435 200,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43700 5. Surveys & studies

43710 Communication materials LS 42 2,512 50,000 0 0 0 0 0 0 SURVEY_EA CB_DA SURVEY_PA IFAD ( 90% ) 0 0 0 0

43720 News letters & publications Lumpsum 6 3,589 500,000 0 0 0 0 0 0 TRAIN_EA CB_DA TRAIN_PA IFAD ( 90% ) 0 0 0 0

43730 Monitoring surveys /o survey 3 35,209 10,000,000 1 10,000 2,500 2,500 2,500 2,500 SURVEY_EA CB_DA SURVEY_PA IFAD ( 90% ) 1000 9000 0 0

Total Investment Costs 56,026 11,520 2,880 2,880 2,880 2,880 1,256 10,264 0 0 % 0

RECURRENT COSTS


43800 1. Staff Salary

43810 Manager (KM) /p Pers_month 75 0 3 0 0 0 0 0 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 0 0 0 0

43820 Data Entry Operators Pers_month 756 13,471 15,000 36 540 135 135 135 135 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 270 270 0 0

43830 Enumerators /q Pers_month 168 2,952 15,000 24 360 90 90 90 90 SAA_EA OM_DA SAA_PA IFAD ( 50% ) 180 180 0 0


43910 Staff travelling allowance month 75 3,568 40,000 3 120 30 30 30 30 OM_EA OM_DA OM_PA IFAD ( 50% ) 60 60 0 0


Total Recurrent costs 25,342 1,200 300 300 300 300 600 600 0 0 % 0

Total costs 81,368 12,720 3,180 3,180 3,180 3,180 1,856 10,864 0 0 % 0



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PART-TWO: FOOD SECURITY COMPONENT

2.1 FOOD SECURITY AND SCALING UP 2.2 MARKET ACCESS 2.3 INNOVATION AND MARKET LINKAGE 2.4 VOCATIONAL TRAINING

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Chapter-2.1: FOOD SECURITY & SCALING UP

A. Objective and Purpose

The strategy for project‟s livelihood intervention is to create and enhance the livelihoods of hill and

mountain households by applying the principle of social mobilization to enhance economies of scale

both in terms of increased volume of production and reduced transaction costs.

The project strategy will include a two stage community organization mobilization. First, Producer

Groups (PGs) comprising households with cultivable land and Vulnerable Producer Groups (VPGs)

comprising households particularly belonging to Scheduled Caste (SC) and other backward classes

with limited cultivable land will be mobilized. Second, Livelihood Collectives (LCs) will be mobilized

comprising the PGs and VPGs and their capacity will be built to undertake livelihood improvement

activities.

B. Key Success Factors

Effective community mobilisation

Organised Capacity building of the community

Better and experienced partner agencies

Positive response from the community

Support to community-based demands

C. Description of Activities The project will facilitate capacity building of project area communities to plan, prioritize and

implement activities of their choice. In addition, the project intends to provide a basket of short term,

medium term and long term interventions to enable the community to sustainability diversify the

livelihood options and at the same time increase the level of income to move out of poverty.

Key activities are

Development of micro-irrigation and support for small rural infrastructure

Food Security Enhancement through the support to Producer groups

Livelihood upscaling in new and existing ULIPH blocks through federations

Agribusiness Planning

Support to Partner agencies and Livelihood Collectives of new Blocks

Irrigation and infrastructure

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Livelihood Collectives will be encouraged to expand cultivation of economically important crops and

off-farm activities at individual households. LCs will also build water and water and soil conservation

related facilities as required by their communities.

Food Security Enhancement through Producer groups

Producer groups will be set up in each village and each PG may have about 15 households with an

interest to undertake similar basic livelihood activity at village level. To ensure full participation of the

poorest households at least 20% of PGs will be VPGs. A significant proportion of PG/VPG could be

existing SHGs formed by ULIPH and other programmes and thee would continue under ILSP also and

these would be gradually absorbed into NRLM. At least 50% of groups should be women‟s groups.

The project will engage Partner NGOs and ULIPH Federations in some cases to mobilize the PGs

and VPGs. The Partner NGO and the ULIPH Federations will engage Livelihood Facilitators trained in

implementing livelihood activities. These Facilitators will be responsible for PG and VPG mobilization

at the village level. It is expected that a Livelihood Facilitator will be responsible for about 25-30 PGs

and VPGs.

The project will build the capacity of the PGs and VPGs to make informed choices of livelihood

activities (primarily agricultural) with potential for scaling up, prepare plans and implement schemes

with support from formal financial institutions, government programmes and ILSP, as well as

contribution from members. These schemes will focus on food security and basic livelihoods, and

include activities related to seeds (cereals, vegetables and pulses), soil fertility improvement, livestock

fodder, poultry and other on and off-farm sectors to improve the basic livelihood and food supply

system. The main thrust of the project is to move away from prescriptive activity led implementation

approach to a decentralized planning approach at the PG/VPG level.

The PGs/VPGs will elect a Chairperson and a Secretary cum Treasurer. These persons will be

responsible for: (i) identifying beneficiaries to get support from Food Security Improvement Plan in

consultation with the group; (ii) establishment of cost recovery norms; (iii) interacting with the Partner

NGO and other agencies to mobilize support for preparation and implementation of Food Security

Improvement Plan; (iv) procuring and supplying inputs required for implementation of Food Security

Improvement Plan; (v) keeping an account of support provided under Food Security Improvement

Plan (FSIP) to each household; and (vi) recovering support provided to households and developing

plans for reuse of the same.

Livelihood Collectives The second step in the livelihood enhancement process is to federate about 65 PGs/VPGs at the

cluster level to form a Livelihood Collective (LC). In some places suitable institutions may already

exist (such as the SHG Federations formed by ULIPH) and can be supported straight away by the

project. These LCs will be the focal points to establish input supply linkages and aggregate

production for establishing market linkages.

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A total of 60 LCs will be formed and supported in component 1 of ILSP. These may include some

federations of SHGs established by ULIPH in ILSP blocks, which may be adopted as ILSP LCs

providing they fulfil the livelihood role of LCs.

The General Assembly of the LC will comprise of all the members of the PGs/VPGs. LCs will be able

to register under the Self Reliant Cooperative Legal Framework. This legal framework does not allow

the PGs/VPGs to be the members. It requires individual members of PGs/VPGs to be the members of

LCs. However, the PGs/VPGs in each of the Gram Panchayat will elect two members (one female

and one male member) to Governing Council of the LC. The Governing Council will thereafter elect a

Chairperson, a Secretary, a Treasurer and a management committee comprising three members. Of

these, the positions of Secretary, Treasurer and two members of the management committee will be

reserved for women. The Partner NGO will provide a Livelihood Coordinator and an Accountant to

manage the activities of LC and to provide necessary management support to the Governing Council.

Preparation of Food Security Improvement Plan (FSIP)

The project will provide LCs with financial support of up to Rs 200,000 per LC each year for two

years to prepare a plan and implement a set of livelihood up-scaling and agribusiness activities.

Further funding for developing individual and community enterprises will be enabled by the

improved access to bank credit and investment funds resulting from component 3 of ILSP.

Additional grant funds will be available for irrigation development and for soil and water

conservation – although the scope of this work will be very much less than that undertaken by

watershed management projects

FSIP focus will be on food security enhancement related activities. They include: (i) supply and

production of quality seeds (cereals, vegetables and pulses); (ii) soil fertility improvement; (iii) other

on-farm activities such as vegetable cultivation; (iv) off-farm sectors such as poultry and goat rearing.

The plans of VPGs will include mostly non-farm activities (small ruminant and poultry and drudgery

reduction activities. See Annex-2.1.1

Preparation of Agribusiness Up-scaling Plan (AUP) The responsibility of preparing AUP rests with the LCs. The first step in AUP preparation will be

facilitation of LCs to identify the activities both off-farm and on-farm that hold potential for up-scaling

by Partner NGOs. This will be based on a value chain analysis of the selected commodity/crop to

assess the input supply, production services and output marketing related constraints and

opportunities. Off-season vegetables, potato, vegetable seeds, potato seeds are some of the

agriculture sub-sectors that offer potential for up-scaling in the hills of Uttarakhand. In addition, spices

and fruit/nut trees also offer potential for up-scaling. See Annex-2.1.2

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D. Implementation arrangements FSIP PREPARATION Implementation of FSIP will be the responsibility of the PGs/VPGs. This will include all aspects related

to fund management, input purchase, documentation of expenditure and activity implementation.

Payment of project support will be directly from project offices to PG/VPG bank accounts. The

Partner NGOs will provide required backstopping for implementation including provision of required

training and technology packages. Partner NGOs will also monitor expenditure of support funds and

the activities for which they are used

Each PG/VPG will be facilitated by a Partner NGO to prepare FSIP. Situational analysis will be the

first step in FSIP preparation. This will be to ascertain the current status of livelihood activities being

undertaken by the PG/VPG members. This situational analysis is expected to lead to interventions

required for enhancing food security and to assess the investment required to implement these

activities7. Envisioning the expected results as a goal for achievement will be part of FSIP preparation.

This will be to compare the expected results with that of achievement.

Subsequently, the Partner NGOs will facilitate a meeting of the representatives of PGs/VPGs with the

government departments and banks to ascertain participation of these organizations both in terms of

financing as well as supply of inputs and services to implement FSIP.

The project will allocate INR 80,000 per PG for implementation of their plans. The project will also

provide INR 40,000 each year for two years to VPGs to implement their own plans. Based on the

commitments from various interested organizations, the PGs/VPGs will have to prioritise their plans

and adjust activities proposed to suit available funding.

The participating PGs are required to leverage funding available from the project. This can be

achieved through mobilization of own resources, bank finance or through support from government

departments. The leveraging requirements for the PGs will be a minimum of 15% of the project

funding. This will be in the form of cash contribution and not in the form of labour contribution.

However, there will not be any leveraging requirements for the VPGs.

FSIP approval for release of project funds is subject to a plan by the PGs/VPGs to recover funds from

persons that have benefited from implementation of FSIP. The funds recovered will be used for

implementing next FSIP to benefit remaining PG/VPG members.

7 A „marketing extension‟ approach may be useful in moving from subsistence to commercial farming. An

outline of a possible approach is in the draft PIM.

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The PG and VPG members will internalize the process of achievement review against the original

goal in order to enable the members to understand deviations from the original goal and reasons

thereof. This will provide valuable inputs into preparation of the next FSIP.

PGs/VPGs are required to recover the project inputs from the benefiting members of the households

and use them for preparation of a plan benefiting remaining members of the groups. FSIP preparation

for the next season will follow the same process. PGs do not get any fund allocation from the project

but the Partner NGOs will provide required facilitation and backstopping support for its

implementation. VPGs will get another round of funding of Rs. 30,000 per VPG.

AUP PREPARATION Implementation of AUP will be the responsibility of the LC. The Governing Council of LC, the

Livelihood Coordinator and the Accountant will be responsible for all activities fund management,

input purchase, documentation of expenditure, activity implementation and cost recovery. Partner

NGOs will provide required backstopping for implementation including provision of required training,

technology packages and market linkage. These NGOs would also monitor and report on AUP

implementation and results

Partner NGOs will facilitate preparation of AUP. Each LC will establish a small core group comprising

its 3-4 members of the Governing Council and the Livelihood Coordinator to prepare a draft AUP. The

AUP will consist of two parts. First part will contain activities related to agribusiness development and

the second part will comprise soil and water conservation activities. Partner NGOs will undertake

initial activities related to identifying the crops with potential to upscale, establishing market linkages

to ascertain quantity and type of produce to be cultivated, consolidating input requirements for

procurement through LC and motivating the farmers to start cultivation of the identified product to

achieve scale required for establishing market linkage. This will be undertaken in close collaboration

with LC members.

The core group of each LC will undertake consultation with its PG and VPG members to validate the

agribusiness activities proposed by the Partner NGO and to identify soil and water conservation

activities required by the community.

Each LC will prioritize the activities to be implemented under AUP. Subsequently, Partner NGOs will

facilitate a meeting of LC Core Group members with the government departments and banks to

ascertain participation of these organizations both in terms of financing as well as supply of inputs and

services to implement AUP.

The project will allocate INR 200,000 per year for each LC for implementation of the agribusiness

development part of AUP. This allocation will be available for two years. In addition, the project will

also allocate an average of INR 1,000,000 per LC for irrigation, soil and water conservation, and

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possibly other infrastructure, which can be used over a period of five years. Based on the

commitments from various interested organizations, each LC will adjust its plan to suit available

funding. The participating LCs will leverage funding available from other projects. This can be

achieved through mobilization of funds from own resources, bank finance, or through support from

government departments.

The leveraging requirements for the LCs will be a minimum of 15% for agribusiness development and

25% for the irrigation and soil and water conservation works. UPASAC funding will also be available

to support LC enterprises.

Approval for release of project funds is subject to a plan by the LC to recover funds from persons that

have benefited from implementation of AUP and establishing a system of user charges for irrigation

water usage. The funds recovered will be used for implementing the subsequent AUP and also for

carrying out maintenance activities for the water infrastructure developed under the project.

Upon completion of implementation of AUP, the original goal and achievement will have to be

presented to the General Assembly for review. This will enable the members to understand deviations

from the original goal and reasons thereof. This will provide valuable inputs into preparation of next

AUP.

SUPPORT FOR OLD ULIPH BLOCKS Component 1 of ILSP is planned to cover 26 blocks in five districts. Of these, 17 blocks are ULIPH

blocks. In other areas of the nine blocks around 27 to 30 ULIPH Federations, each with around 600

to 700 members, will continue to get a moderate degree of support from ILSP. This support will

provide back-up to Federation leaders in institution building and help in ensuring convergence (linking

Federations with support from other programmes of the government). To do this, leaders and

members of these Federations could participate in training; workshops and meetings organised for

Federations in the ILSP blocks, and also get advice and support from project staff.

E. Partner Agencies The project will contract about 30 partner agencies for field implementation of this component. Each

agency will be allocated a working area which may correspond to a district or part of a district.

However boundaries of these working areas (termed „divisions‟) may be adjusted to equalise

workloads and allow for convenient coverage from the point of view of road access. Component 1 of

the project is planned to cover 64,175 households in 26 blocks in five districts. Of these, over 22,900

(36%) are in eight blocks in Almora district, so it could be worth splitting this district into two divisions.

Partner Agencies will be contracted to carry out the tasks as described in Annex-2.1.2

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E. Outcome Indicators

The activities recommended in the menu of options are some of the tested and tried activities in

Uttarakhand. In the 2010 Annual Outcome Survey of ULIPH, 98% of sample households reported

improved food security, 45% increased crop production and 51% increased income. With a much

more comprehensive focus on livelihoods, the activities under the FSIP are expected to enhance food

production and cash income level at the household level. The focus is on activities that are currently

being undertaken with a view to enhancing productivity. The activities proposed under AUP have

been tested in some parts of Uttarakhand and the project intends to address value chain constraints

to upscale production with market linkage. Activities under these two plans are expected to provide

financial rate of return of more than 15%.

The project from the very beginning will have a time bound plan for exit. The project will support

Livelihood Facilitators for a period of only two years and thereafter, the LCs will either absorb them or

engage community facilitators. Similarly, the project will support a Livelihood Coordinator and an

Accountant for a period of four years. Thereafter, it is expected that the LCs will engage required staff

for managing their activities. Implementation of project‟s exit strategy will be one of the key

deliverables of the Partner NGOs

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Annex-2.1.1: Number of Target Households, LCs and Federations

Number of Households Proposed to be covered in ULIPH Blocks

District/ Block

HH covered under ULIPH Federations

Additional 20% HH targeted in ULIPH

Blocks

# of SHGs /PGs a/

# of Federations

Almora district 1.Bhaisiachhana 686 823 91 2 2.Dhauladevi 2,183 2,620 291 4 3.Lamgara 1,998 2,398 266 5 Bageshwar district

4.Kapkot 3,873 4,648 516 6

5.Bageshwar 3,412 4,094 455 5 Chamoli district

6. Ghat 1,449 1,739 193 5

7.Dasoli 934 1,121 125 5

8.Narayan Bagar 1,210 1,452 161 4

9.Dewal 834 1,001 111 4 Tehri district

10. Devprayag 1,758 2,110 234 3

11. Pratapnagar 1,443 1,732 192 2

12. Jaunpur 1,076 1,291 143 3

13. Bhilangna 2,874 3,449 383 5 Uttarkhasi district

14. Dunda 1,413 1,696 188 6

15. Naugaon 962 1,154 128 4

16. Mori 1,105 1,326 147 4

17. Purola 604 725 81 3 Total 27,814 33,377 3,709 70

Number of Households Proposed to be covered in New Blocks

District Block

Total Number of HH

# of HH targeted # of PG/VPG b/

# of LC or Federations

c/ Almora district

1. Syaldeh 6,043 3,928 491 8

2. Salt 7,812 5,078 635 9

3. Bhikisain 3,127 2,033 254 4

4. Chaukhutia 2,533 1,646 206 3

5. Hawalbag 6,744 4,384 548 8 Bageshwar district

6. Garur 3,911 2,542 318 5 Chamoli district

7. Tharali 4,002 2,601 325 5 Tehri district

8. Chamba 6,934 4,507 563 9 Uttarkhasi district

9. Bhatwari 6,275 4,079 510 8 Total 47,381 30,798 3,850 60

Overall total 75,195 64,175 7,559 130

a/ 9 members per SHG; b/ 8 members per PG; c/ 500 household per LC

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Annex-2.1.2: General TOR for UGVS Partner Agencies (Social) Introduction Integrated Livelihood Support Project (ILSP) will follow on from the UttarakhandLivelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012.ULIPH Project has been implemented by UttarakhandGramyaVikasSamiti (UGVS), a society established by theRural Development Department, and UttarakhandParvthiyaAjeevikaSamvardhan Company (UPASAC), a social venture capital company. ILSP will be implemented by these two agencies. Rationale: 2. The justification for ILSP is the need to stop the deterioration of the productive nfrastructure, make farm labour more productive and farming more remunerative, and hence provideincentives for people to invest their time and resources in agriculture. Despite the disadvantages thatagriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures athigher altitudes, allowing production of out of season vegetables and temperate fruits. Thehorticultural sector is less developed than in the other hill states, so there is considerable potential forgrowth, as there is scope in other niche products as well such as spices, medicinal and aromatic plants, and nuts. Another area with growth potential is tourism. However more needs to be done to ensure that localpeople fully participate in, and benefit from, this sector. The population is well educated, but the levelof youth unemployment is relatively high. Therefore better vocational training could also help such people find goodquality employment in the growth sectors of the country. Objectives 3. The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand. Thiswould be achieved via the more immediate development objective of “enable rural households to takeup sustainable livelihood opportunities integrated with the wider economy”. The strategy behind ILSP is to adopt a two pronged approach to building livelihoods in hilldistricts. The first of these is to support and develop the food production systems which remain themain means of support for most households. The second main thrust of the project is to generatecash incomes via the introduction and expansion of cash crops. These would be grown on asignificant scale for markets outside of the state. ILSP will also support non-farm livelihoods,especially community involvement in rural tourism, and vocational training. Activities under Food security and livelihood enhancement component 4. This component to be implemented by UGVS, will support cropand livestock production for food security, and develop higher value cash crops and other products(such as rural tourism) to provide cash incomes. Crop and livestock production will be developed viasupport to Producer Groups (PG) and higher level organizations (Livelihood Collectives - LC) formedby a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new incomesources. ILSP will also improve access to markets through a value chain approach and the provisionof physical infrastructure for market access. The value chain approach involves market/sub-sectorstudies, introduction of new technologies, market linkage, skill development, product development andpromotion, physical infrastructure for market access, etc. 5. These activities will cover 64175 households n 26 blocks (i.e. 17 blocks of ULIPH Project implemented by UGVS in 5 districts mentioned above and 9 new blocks in these five districts. The project will also improve access to employment in the non-farmsector by supporting vocational training linked to job placement. Component 3: Livelihood financing 6. This component is to be implemented by UPASAC. Despite making significant strides infinancial viability, banks have not been able to provide significant numbers of poor households withbasic financial services. The activities under this component include: Banking support – capacity building, expansion of branches of SKGFS, Risk management – piloting and scaling up of insurance services, Financial inclusion initiatives – training to LC to be bank agents, product literacy training, Provision of development finance via UPASAC including loan and quasi equity funding

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Component 4: Project coordination and monitoring: 7. Each executing agency, UGVS, WMD andUPASAC, will have their own project management units headed by a Project Director or ChiefExecutive. To provide overall coordination, the state nodal agency, RDD, will set up a Central ProjectCoordination Unit (CPCU) within the RDD, headed by a part time Chief Project Director (CPD). TheCPCU has the Finance Unit. The Finance Unit will belocated within RDD. 8. A state level Project Steering Committee(PSC) would be chaired by the Chief Secretary. The PSC willestablish a Project Management Committee (PMC) chaired by the Secretary of RDD. Convergence: 9. The National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will beresponsible for forming and supporting SHGs. ILSP will provide complementary support forlivelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will beexpected to receive support from other government programmes and from formal financial institutions. 2. OBJECTIVES OF PARTNER Agency SERVICES 10. For implementing activities relating to „Food Security and Livelihood Enhancement‟ under component 1 of the ILSP project, UGVS proposes to contract partner agencies (i.e. NGOs, Societies, private companies, federations, etc institutions) and also the services of ULIPH Federations in few cases. Each Partner Agency will beallocated a working area called cluster, for the purpose, which may have about 2000 households, of which at least 1000 HHs are to be the Project beneficiaries. However boundariesof these working areas (termed „clusters‟) may be adjusted to equalize workloads and allow forconvenient coverage from the point of view of road access. Like this 30 clusters have been tentatively identified by UGVS in selected 9 blocks (i.e.Syaldeh,Sult, Mikiyasen, Chaukhutian, Havalbagh in Almoradistrict, Garud in Bageshwar District, Tharali in Chamoli district,Chambain Tehri district,Bhatwari in Uttarkashi) of the districts of Almora, Bageshwar, Chamoli, Tehri and Uttarkashi of Uttarakhand. Partner agency services are therefore required for these 30 clusters in these blocks and districts. The villages are yet to be identified. 11. It is proposed to engage the services of the partner Agencies for group of clusters in a district. Thus it is expected that about 6 or so partner agencies (i.e. one in each of the districts and 2 for Almora district) services would be required for implementing the activities relating to the above component. In all about 30798 households are to be covered in the new 9 blocks of the above 5 districts. (In the Project villages in 17 blocks of the earlier ULIPH Project, it is proposed to cover another 33377 HHs under the ILSP Project with the help of federations already formed there.) 12. On average each PARTNER AGENCY will organizeabout 125 primary groups (Producer Groups and Vulnerable Producer Groups as per the Project criteria) in a cluster. Each group would have 8-9 members. At least 60% of the members would be women. These groups will then be federated into a total of 2 Livelihood Collectives per cluster to support up-scaling,common services, combined enterprises and market access. In all 60 LCs are expected to come up in the new 9 blocks , mentioned in the prepage, i.e. Project area. Community-based Organizations- Formation and capacity building & hand holding PRODUCER GROUPS 13. Under component 1 i.e. Food Security and Livelihood Enhancement ,the partner agency would mobilize and organize the target group HHs in Producers Groups (PGs) and Vulnerable Producers Groups (VPGs). Group formation will start with a participatorywealth ranking and activity selection. The pooresthouseholds, especially SC, with limited cultivable land or without land will be facilitated to form VPGs for poultry,small ruminants and non-farm IGAs. Households with cultivable land will be facilitated to form PGs depending upon the selectedactivity. The group size will be about 8-9 members. The composition willdepend on the geographical proximity

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of the households, affinity amongst group members to worktogether, and common interest by all members to take up similar activities. PGs will be either women only groups or men only groups but all VPGs will be women only groups. A minimum of 50% of PGs will be women‟s groups. The PGs/VPGs will become the vehicle fordelivery of services for enhancing the productivity of the activities being undertaken by thesehouseholds. As a result, their income levels and risk taking ability will increase to move them intoan agribusiness mode. LIVELIHOOD COLLECTIVES 14. Under the above component the partner agency would promote Livelihood Collectives (LCs) at the cluster level. Each LC will be formed by federating around70 or more PG and/or VPG. The location of the LCs will depend on the ease of access for PGs and VPGs, market linkagepotential and cluster formation to achieve economies of scale. (This means administrativeboundaries are not of relevance.) 15. The Self Reliant Cooperative Legal Framework is the most dominant legal framework available inUttarakhandfor such groups (i.e. LCs). A specific growth trajectory for these LCs will not be prescribed bythe project but these LCs will have to become self-reliant within four years of projectimplementation. 16.The project will support each LC via partner agency and by providing grant funding. LCenterprises will also be able to access funds from UPASAC (loans, equity and viability gap grants)and should also get support from other government programmes and banks. This will enable theLCs to take up activities that accrue benefits to their members and to charge service fees tosustainably deliver these services. 17. TheProject willfollow a two stage process, to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the mainmeans of support for most households. The second stage is to generate cash incomes via the introduction and expansion of cash crops. Overall Role of thePartner Agencies 18. ThePartner Agencies, other institutions and Federations of SHGs (formed under ULIPH Project) engaged for undertaking the ILSP Projectactivities related to Food Security and livelihood enhancement will be responsible forimplementation of project activities through the mobilized Producer Groups (PGs), VulnerableProducer Groups (VPGs) and Livelihood Collectives (LCs) under the overall direction of theDivisional Project Management Offices of UGVS. 19. The functions of thePartner Agencieswill include:

a) Establish a cluster level office with a Livelihood Coordinator and an Accountant. This officewill eventually become the office of the Livelihood Collective owned by the PGs and VPGs;

b) Engage 3-4 Livelihood Facilitators to support about125 PGs and VPGs of the cluster;

c) Mobilize the PGs and VPGs each with a membership of 8-9.

d) Preparing Plan of Action (POA) for the cluster based on assessment of the potential livelihood

e) improvement. (It is expected that the Livelihood Coordinator should spend initial period of say 2 months for visiting the cluster area and identify the possibilities and action required for livelihood improvement of the Cluster villages and prepare the Plan of Action for the cluster. Other staff of the cluster office should be in place subsequent to preparation of the Plan of Action).

f) Develop a Food Security Improvement Plan (FSIP) for PGs and VPGs, facilitate sourcing of funds andsupport the group members to implement the plan;

g) Develop and implement a Agribusiness Up-scaling Plan (AUP) for the Livelihood Collective thatincludes both agribusiness and irrigation and water conservation activities;

h) Develop Governance Plan, Monitoring plan and Convergence Plan to facilitate proper implementation of the FSIPs of the Groups and AUP of the LCs.

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i) Implement a clear exit strategy to hand over functions of the Livelihood Facilitators to the Livelihood Collective during the third year of the project;

j) Implement a clear exist strategy at the level of Livelihood Collective by developingadequate financial capacity to employ staff comprising Livelihood Coordinator, Accountantand Livelihood Facilitators after the project support ends;

k) Ensure flow of funds from banks, etcto the LCs, PGs and VPGs, for implementing their plans;

l) Supervise and monitor implementation of all activities related to project implementation;and

m) Link up with the Service Providers including private companies and Specialist Agency toimplement agribusiness development activities depending upon the potential of the area.

n) The Project would also hire the services of a Technical agency for each district to provide support as may be required by the LCs and guidance as may be required by the Partner Agency.

TASKS TO BE CARRIED OUT BY Partner Agencies Partner Agencieswill be contracted to carry out the following tasks: 20. PG/VPG formation and strengthening:

i. Carry out awareness raising campaigns to explain project modalities and livelihood options toproject communities as emerged from livelihood study to be conducted by the project.

ii. Identify poor (BPL) households with focus on SC, ST, OBC and disadvantaged householdsfor inclusion under the project. Compare the poverty estimates with government povertyranking and report anomalies, if any to the DMU.

iii. Organize formation of Producer Groups (PGs) and Vulnerable Producer Groups (VPGs) forspecific livelihoods as emerged from the livelihood study. Build their capacity and ensure that they function effectively. Aggregate the PG/VPG and form the local collectives (LCs).

iv. *Ensure participation of women and disadvantaged households in PGs, VPGs and LivelihoodCollectives (LCs) as per project norm. At least 60% of the PGs will be women only groups.

v. Assist PG/VPG in drawing up of Food Security Investment Plans (FSIP) and other relatedplans for submission for project funding. FSIP should be based on situational analysis andproposed livelihood activities to be undertaken by PGs/VPGs.

vi. Assist PGs and VPGs in implementation of FSIP including procurement of inputs,fund/accounts management and technical advice from line departments/technical agenciesand bankers/financial institutions for financial linkages.

vii. Provide PG/VPGs with technical advice and extension services for agriculture, horticultureand livestock, by linking them to government line agencies and other sources of technicalinformation and support.

viii. Provide training to members of PGs/VPGs according to a training plan agreed with projectand provide feedback on the outcomes of this training.

ix. Assist PG/VPGs in getting access to natural resources, including agreements with Van x. Panchayats for growing fodder crops in common land.

21. LC formation and strengthening:

i. Organize formation of LCs into self reliant cooperatives/producer companies etc as perrequirement of identified enterprises.

ii. Assist LCs in drawing up of Agribusiness Up scaling Plans (AUP) and submission for projectfunding

iii. Assist LCs in implementation of AUP including procurement,getting technical advice, and marketing support,proper maintenance of accounts, business planning and institutional management. Promoteenterprise and entrepreneurship.

iv. Act as resources persons to assist LCs and their members to make applications to otheragencies and to banks for grants and loans.

v. Provide training to members of LCs according to a training plan agreed with UGVS projectmanagement, and provide feedback on the outcomes of this training.

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vi. Provide groups with technical advice and extension services for agriculture, horticulture andlivestock, and link them to government line agencies and other sources of technicalinformation and support.

22. Support to LCs for infrastructure development with the guidance of the Technical Agency hired by the Project

i. Assist LCs in drawing up proposals for agri business upscalingirrigation, soil and water conservation, and otherinfrastructure with funding from the Project.

ii. Monitor implementation of this infrastructure development, and assist LCs in establishingsystems of user charges and plans for operation and maintenance.

23. Pro-poor market development with the guidance of the Technical Agency of the Project: i. Use the findings of the livelihood survey to beconducted by project to focus on the viable

economicopportunities for enterprise development among project communities. Facilitate initiatives to improve market access for project groups, including support for marketstudies and value chain development, and development of infrastructure for market access.

ii. Act as a link for financial services between UPASAC and its implementing partners andproject groups to assist in identification of needs for financial services, and in communicatingthe availability of these services to project groups and group members.

iii. Preparing exit strategy in year 2 and capacity building of the community institutions therefor, so as to ensure that they carry out the responsibility sustainably after the Project period.

24. Support innovation linkages and vocational training:

i. Facilitate coordination and linkages between project groups and project research partners –such as VPKAS, GBPUAT and HARC and the technical Agency contracted by the Project.

ii. Facilitate in identification of youth of the project area for enrolling them under Vocationaltraining programs of the project.

25. Monitoring

i. Monitor performance of PG, VPG and LCs including carrying our regular participatory M&E ateither the household or group level following project guidelines for such monitoring. Inconjunction with UGVS implement a grading system for the institutional health of thePG/VPG/LC.

ii. Sending reports on the status and performance of the PGs, VPGs and LCs to the UGVS as may be prescribed.

iii. Assist the project M&E unit in carrying out sample surveys by providing lists of householdsand data on poverty and assisting in locating the household in the village.

iv. Monitor implementation and outcomes of activities carriedout by the PG/VPG/LC through theprocess of participatory monitoring & report to the DMUin the prescribed format.

v. Agree annual work programme with UGVS Project Director, and provide monthly, half yearlyand annual reports as per project requirements.

26. Project Management

i. Facilitate compliance with project guidelines, including financial management, humanresources and reporting.

ii. Participate in implementation of a project communications strategy, including notice boards,posters, leaflets, press briefings, and displays at local fairs and other events.

iii. Attend project management and coordination meetings as required by UGVS projectmanagement.

iv. Comply with the provisions made by government under the Right to Information for activitiesimplemented under ILSP.

v. Build sustainability of project groups and enterprises taken up by them, and implement anagreed project exit strategy.

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27. KEY PERSONNEL OF the Partner Agency To implement this programme of work, the Partner Agencies will need to recruit and train staff, provide transport andequipment, and establish field offices. Project budgets include funding for an average of the following staff for each cluster Office: Livelihood Coordinator: 1, Accountant:1 and Livelihood Facilitators: 1 @ 20-25 PGs and VPGs. 28. REPORTING PARTNER Agencies will provide monthly, quarterly and half-yearly reports on project progress and results as perthe standard formats developed by the project. These will include physical and financial progress,reporting on outcomes (such as the results of PME) and a section on achievements and issues. The PARTNER AGENCY will also submit regular (monthly or quarterly) financial statements with supportingdocuments. 29. REVIEW OF PERFORMANCE PARTNER Agencies and the project staff has to work in close cooperation with each other. The workcarried out by the Agencies in the field shall be monitored by the committee constituted by the respective Divisional Managerson monthly basis and by the PMU of UGVS as may be decided. A committee appointed by UGVS shall review PartnerAgency performancequarterly and annually. This review committee may comprise as under:

o Project Director (UGVS) – Chairperson o Chief Programme Manager- Member o Planning and M&E Manager (CPCU) - Member o Programme Manager (Institutions) - Member o Divisional Manager (UGVS) - Member o Finance Manager (UGVS) – Member

30. PERIOD OF THE ASSIGNMENT Period of the assignment would be forthree years. However, annual extension will be on the basis of thesatisfactory performance to be recommended by the Review Committee. 31. TERMS OF PAYMENT The terms of payment will be finalized at the time of signing the contract. However the payment would cover the cost of the staff deployed by the Agency for the ILSP Project and overheads to a reasonable extent as may be finalized while procuring the services of the partner Agency. There will be no advance payment and all payments to the Agency would be on submission of the statements of expenditure (SOEs). For implementing the Project activities, funds will be separately provided to the Agency where necessary for carrying out specific activities like trainings, etc. Funds for procurement of goods/material or infrastructure development would be provided to the community institutions. However the partner Agency would have to provide the required support to the community institutions in carrying out these activities as per requirement of the Project. 32. COMMUNITY PROCUREMENTS The Project requires that at the community level also the procurement system should achieve the objectives of transparency, competition, economy and efficiency, fairness and accountability. So asuitable manual for the purpose will be developed by the Project. The partner Agency will have to provide the necessary guidance and support to the community institutions in this respect.

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33. ACCOUNTING AND AUDITING The PARTNER Agency will open a separate bank account for receipt and expenditure of funds for the contract. Theagency will also maintain separate records; accounting and auditing of the funds allocated for theassignment and will submit the copy of the expense statement on half yearly or quarterly basis. ThePARTNER Agency will cooperate and facilitate ILSP internal and external audits. 34. ARBITRATION In the event of any dispute between the contracted agency and the UGVS the Secretary, Rural Development,Govt. of Uttarakhandwill be the arbitrator whose decision will be final and binding on both the parties.. 35. GENERAL The Partner Agencywould be given access to all documents, correspondence, and any other information relatingto the Project and deemed necessary by the Partner Agency. The Partner Agencywould be provided copies of the ProjectImplementation Plan; Project Design Document (PDD) of the IFAD; and agreements with the IFAD,guidelines, policies and procedures issued by Project management and implementing agencies andrelevant IFAD policies and guidelines. 36. Eligibility criteria of Partner Agencies

i. The agency should have domain knowledge of social mobilization, PRA tools, institutionsbuilding,livelihood improvement, micro-credit and micro-enterprises,;etc.

ii. Should have at least 3 years of experience of hill area of successfully implementing similar/livelihood development Project activities funded by external agencies like UNDP and other UN agencies, World Bank, and reputed Trusts

iii. Should have at least 5 years of experience in rural development, agriculture development, formation of grassroots institutions such as SHG/ JLG, producersgroups, livelihoods collectives/ federations etc

iv. Should have excellent communicationskill; v. Should be familiar with the area, culture and languages vi. Willing to commit qualified staff for full term and willing to work for the entire duration of

theproject; vii. Should be familiar with ongoing programmes in the project area viii. Should not have been black-listed by any of the government agencies

37. Selection Criteria of ULIPH Federations There are over 70 ULIPH Federations in the project area. In accordance with the minutes ofdiscussions of 16 May 2011, UGVS may engage the services of ULIPH Federations as partner Agencies in the new 9 blocks/old 17 blocksfor social andcommunity mobilization. UGVS would,therefore, carry out a capacity profile assessment of these federations and assess theircapability and competency in undertaking the tasks to be assigned to them. In this context, UGVSwould (i) create a profile of all willing federations; (ii) send a short and brief draft TOR to all thoseULIPH Federations and invite their responses; (iii) evaluate these responses received from thosewilling federation through a core committee; (iv) invite them to make a presentation of their proposalsand the way they perceive with the proposed tasks; (v) short list qualified ULIPH federations; (vi)forward the short-listed ULIPH Federations to IFAD before assigning any work to these Federations. Following are the general criteria for selecting any of the ULIPH federations:

i. The agency should have domain knowledge of social mobilization, PRA tools, institutionbuilding, micro-credit and micro-enterprises, etc

ii. Should have at least2 years of experience of working in hill area in activities regarding iii. Should have at least 2 years of experience in rural development, agriculture development, iv. formation of grassroots institutions such as SHG, JLG, producers groups,

livelihoodscollectives, etc v. Should have good communication-skill;

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vi. Willing to commit qualified staff for full term and willing to work for the entire duration (3 years) of theproject with satisfactory performance;

vii. Should be familiar with the ongoing programmes in the project area; viii. Should have transparent financial practices and should be able to commits project funds

asdesigned; ix. Should not have been black-listed by any of the government agencies.

Other wise the federations would be working in their existing area only for enterprise upscaling through the SHGs. 38 .Expected Inputs, Outputs and impacts-Semester-wise Copy of the logical framework Matrix of the Project components 1, 3 and 4 is attached (Annexure D) for information please. To achieve the goal Semester-wise expected performance of the partner Agency will be worked out mutually at the time of contracting the agency.

Annexure 1

FOOD SECURITY & SCALING UP

A. Objective and Purpose The strategy for project‟s livelihood intervention is to create and enhance the livelihoods of hill andmountain households by applying the principle of social mobilization to enhance economies of scaleboth in terms of increased volume of production and reduced transaction costs. The project strategy will include a two stage community organization mobilization. First, Producer Groups (PGs) comprising households with cultivable land and Vulnerable Producer Groups (VPGs)comprising households particularly belonging to Scheduled Caste (SC) and other backward classeswith limited cultivable land will be mobilized. Second, Livelihood Collectives (LCs) will be mobilizedcomprising the PGs and VPGs and their capacity will be built to undertake livelihood improvementactivities. B. Key Success Factors





Support to community-based demands C. Description of Activities The project will facilitate capacity building of project area communities to plan, prioritize andimplement activities of their choice. In addition, the project intends to provide a basket of short term,medium term and long term interventions to enable the community to sustainability diversify the livelihood options and at the same time increase the level of income to move out of poverty. Key activities are



Livelihood upscalingin new and existing ULIPH blocks through federations


Support to Partner agencies and Livelihood Collectives of new Blocks Irrigation and infrastructure Livelihood Collectives will be encouraged to expand cultivation of economically important crops andoff-farm activities at individual households. LCs will also build water and water and soil conservationrelated facilities as required by their communities. Food Security Enhancement through Producer groups Producer groups will be set up in each village and each PG may have about 15 households with aninterest to undertake similar basic livelihood activity at village level. To ensure full participation of thepoorest households at least 20% of PGs will be VPGs. A significant proportion of PG/VPG could beexisting SHGs formed by ULIPH and other programmes and thee would continue under ILSP also andthese would be gradually absorbed into NRLM. At least 50% of groups should be women‟s groups.

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The project will engage Partner NGOs and ULIPH Federations in some cases to mobilize the PGsand VPGs. The Partner NGO and the ULIPH Federations will engage Livelihood Facilitators trained inimplementing livelihood activities. These Facilitators will be responsible for PG and VPG mobilizationat the village level. It is expected that a Livelihood Facilitator will be responsible for about 25-30 PGsand VPGs. The project will build the capacity of the PGs and VPGs to make informed choices of livelihoodactivities (primarily agricultural) with potential for scaling up, prepare plans and implement schemeswith support from formal financial institutions, government programmes and ILSP, as well ascontribution from members. These schemes will focus on food security and basic livelihoods, andinclude activities related to seeds (cereals, vegetables and pulses), soil fertility improvement, livestockfodder, poultry and other on and off-farm sectors to improve the basic livelihood and food supplysystem. The main thrust of the project is to move away from prescriptive activity led implementationapproach to a decentralized planning approach at the PG/VPG level. The PGs/VPGs will elect a Chairperson and a Secretary cum Treasurer. These persons will beresponsible for: (i) identifying beneficiaries to get support from Food Security Improvement Plan inconsultation with the group; (ii) establishment of cost recovery norms; (iii) interacting with the Partner NGO and other agencies to mobilize support for preparation and implementation of Food Security Improvement Plan; (iv) procuring and supplying inputs required for implementation of Food Security Improvement Plan; (v) keeping an account of support provided under Food Security Improvement Plan (FSIP) to each household; and (vi) recovering support provided to households and developingplans for reuse of the same. Livelihood Collectives The second step in the livelihood enhancement process is to federate about 65 PGs/VPGs at thecluster level to form a Livelihood Collective (LC). In some places suitable institutions may alreadyexist (such as the SHG Federations formed by ULIPH) and can be supported straight away by theproject. These LCs will be the focal points to establish input supply linkages and aggregateproduction for establishing market linkages. A total of 60 LCs will be formed and supported in component 1 of ILSP. These may include somefederations of SHGs established by ULIPH in ILSP blocks, which may be adopted as ILSP LCsproviding they fulfil the livelihood role of LCs. The General Assembly of the LC will comprise of all the members of the PGs/VPGs. LCs will be ableto register under the Self Reliant Cooperative Legal Framework. This legal framework does not allowthe PGs/VPGs to be the members. It requires individual members of PGs/VPGs to be the members ofLCs. However, the PGs/VPGs in each of the Gram Panchayat will elect two members (one femaleand one male member) to Governing Council of the LC. The Governing Council will thereafter elect aChairperson, a Secretary, a Treasurer and a management committee comprising three members. Ofthese, the positions of Secretary, Treasurer and two members of the management committee will bereserved for women. The Partner NGO will provide a Livelihood Coordinator and an Accountant tomanage the activities of LC and to provide necessary management support to the Governing Council. Preparation of Food Security Improvement Plan (FSIP) The project will provide LCs with financial support of up to Rs 200,000 per LC each year for twoyears to prepare a plan and implement a set of livelihood up-scaling and agribusiness activities. Further funding for developing individual and community enterprises will be enabled by theimproved access to bank credit and investment funds resulting from component 3 of ILSP. Additional grant funds will be available for irrigation development and for soil and waterconservation, although the scope of this work will be very much less than that undertaken bywatershed management projects. FSIP focus will be on food security enhancement related activities. They include: (i) supply andproduction of quality seeds (cereals, vegetables and pulses); (ii) soil fertility improvement; (iii) otheron-farm activities such as vegetable cultivation; (iv) off-farm sectors such as poultry and goat rearing. The plans of VPGs will include mostly non-farm activities (small ruminant and poultry and drudgeryreduction activities. See Annex-2.1.1

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Preparation of Agribusiness Up-scaling Plan (AUP) The responsibility of preparing AUP rests with the LCs. The first step in AUP preparation will befacilitation of LCs to identify the activities both off-farm and on-farm that hold potential for up-scalingby Partner NGOs. This will be based on a value chain analysis of the selected commodity/crop toassess the input supply, production services and output marketing related constraints andopportunities. Off-season vegetables, potato, vegetable seeds, potato seeds are some of theagriculture sub-sectors that offer potential for up-scaling in the hills of Uttarakhand. In addition, spicesand fruit/nut trees also offer potential for up-scaling. See Annex-2.1.2 D. Implementation arrangements FSIP PREPARATION Implementation of FSIP will be the responsibility of the PGs/VPGs. This will include all aspects relatedto fund management, input purchase, documentation of expenditure and activity implementation. Payment of project support will be directly from project offices to PG/VPG bank accounts. The Partner NGOs will provide required backstopping for implementation including provision of requiredtraining and technology packages. Partner NGOs will also monitor expenditure of support funds andthe activities for which they are used Each PG/VPG will be facilitated by a Partner NGO to prepare FSIP. Situational analysis will be thefirst step in FSIP preparation. This will be to ascertain the current status of livelihood activities beingundertaken by the PG/VPG members. This situational analysis is expected to lead to interventionsrequired for enhancing food security and to assess the investment required to implement these activities7. Envisioning the expected results as a goal for achievement will be part of FSIP preparation. This will be to compare the expected results with that of achievement. Subsequently, the Partner NGOs will facilitate a meeting of the representatives of PGs/VPGs with thegovernment departments and banks to ascertain participation of these organizations both in terms offinancing as well as supply of inputs and services to implement FSIP. The project will allocate INR 80,000 per PG for implementation of their plans. The project will alsoprovide INR 40,000 each year for two years to VPGs to implement their own plans. Based on thecommitments from various interested organizations, the PGs/VPGs will have to prioritise their plansand adjust activities proposed to suit available funding. The participating PGs are required to leverage funding available from the project. This can beachieved through mobilization of own resources, bank finance or through support from governmentdepartments. The leveraging requirements for the PGs will be a minimum of 15% of the projectfunding. This will be in the form of cash contribution and not in the form of labour contribution. However, there will not be any leveraging requirements for the VPGs. FSIP approval for release of project funds is subject to a plan by the PGs/VPGs to recover funds frompersons that have benefited from implementation of FSIP. The funds recovered will be used forimplementing next FSIP to benefit remaining PG/VPG members. The PG and VPG members will internalize the process of achievement review against the originalgoal in order to enable the members to understand deviations from the original goal and reasonsthereof. This will provide valuable inputs into preparation of the next FSIP. PGs/VPGs are required to recover the project inputs from the benefiting members of the householdsand use them for preparation of a plan benefiting remaining members of the groups. FSIP preparationfor the next season will follow the same process. PGs do not get any fund allocation from the project„marketing extension‟ approach may be useful in moving from subsistence to commercial farming. Anoutline of a possible approach is in the draft PIM. But the Partner NGOs will provide required facilitation and backstopping support for itsimplementation. VPGs will get another round of funding of Rs. 30,000 per VPG. AUP PREPARATION Implementation of AUP will be the responsibility of the LC. The Governing Council of LC, the Livelihood Coordinator and the Accountant will be responsible for all activities fund management,input purchase, documentation of expenditure, activity implementation and cost recovery. Partner NGOs will provide required backstopping for implementation including provision of required training,technology packages and market linkage. These NGOs would also monitor and report on AUPimplementation and results

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Partner NGOs will facilitate preparation of AUP. Each LC will establish a small core group comprisingits 3-4 members of the Governing Council and the Livelihood Coordinator to prepare a draft AUP. The AUP will consist of two parts. First part will contain activities related to agribusiness development andthe second part will comprise soil and water conservation activities. Partner NGOs will undertakeinitial activities related to identifying the crops with potential to upscale, establishing market linkagesto ascertain quantity and type of produce to be cultivated, consolidating input requirements forprocurement through LC and motivating the farmers to start cultivation of the identified product toachieve scale required for establishing market linkage. This will be undertaken in close collaborationwith LC members. The core group of each LC will undertake consultation with its PG and VPG members to validate theagribusiness activities proposed by the Partner NGO and to identify soil and water conservationactivities required by the community. Each LC will prioritize the activities to be implemented under AUP. Subsequently, Partner NGOs willfacilitate a meeting of LC Core Group members with the government departments and banks toascertain participation of these organizations both in terms of financing as well as supply of inputs andservices to implement AUP. The project will allocate INR 200,000 per year for each LC for implementation of the agribusinessdevelopment part of AUP. This allocation will be available for two years. In addition, the project willalso allocate an average of INR 1,000,000 per LC for irrigation, soil and water conservation, andpossibly other infrastructure, which can be used over a period of five years. Based on thecommitments from various interested organizations, each LC will adjust its plan to suit availablefunding. The participating LCs will leverage funding available from other projects. This can beachieved through mobilization of funds from own resources, bank finance, or through support fromgovernment departments. The leveraging requirements for the LCs will be a minimum of 15% for agribusiness development and 25% for the irrigation and soil and water conservation works. UPASAC funding will also be availableto support LC enterprises. Approval for release of project funds is subject to a plan by the LC to recover funds from persons thathave benefited from implementation of AUP and establishing a system of user charges for irrigationwater usage. The funds recovered will be used for implementing the subsequent AUP and also forcarrying out maintenance activities for the water infrastructure developed under the project. Upon completion of implementation of AUP, the original goal and achievement will have to bepresented to the General Assembly for review. This will enable the members to understand deviationsfrom the original goal and reasons thereof. This will provide valuable inputs into preparation of nextAUP. SUPPORT FOR OLD ULIPH BLOCKS Component 1 of ILSP is planned to cover 26 blocks in five districts. Of these, 17 blocks are ULIPHblocks. In other areas of the nine blocks around 27 to 30 ULIPH Federations, each with around 600to 700 members, will continue to get a moderate degree of support from ILSP. This support willprovide back-up to Federation leaders in institution building and help in ensuring convergence (linkingFederations with support from other programmes of the government). To do this, leaders andmembers of these Federations could participate in training; workshops and meetings organised forFederations in the ILSP blocks, and also get advice and support from project staff. E. Partner Agencies The project will contract about 30 partner agencies for field implementation of this component. Eachagency will be allocated a working area which may correspond to a district or part of a district. However boundaries of these working areas (termed „divisions‟) may be adjusted to equalize workloads and allow for convenient coverage from the point of view of road access. Component 1 ofthe project is planned to cover 64,175 households in 26 blocks in five districts. Of these, over 22,900 (36%) are in eight blocks in Almora district, so it could be worth splitting this district into two divisions. Partner Agencies will be contracted to carry out the tasks as described in Annex-2.3.1 E. Outcome Indicators The activities recommended in the menu of options are some of the tested and tried activities in Uttarakhand. In the 2010 Annual Outcome Survey of ULIPH, 98% of sample households reportedimproved food security, 45% increased crop production and 51% increased income. With a muchmore comprehensive focus on livelihoods, the activities under the FSIP are expected to enhance foodproduction and cash income level at the household level. The focus is on activities that are

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currentlybeing undertaken with a view to enhancing productivity. The activities proposed under AUP havebeen tested in some parts of Uttarakhand and the project intends to address value chain constraintsto upscale production with market linkage. Activities under these two plans are expected to providefinancial rate of return of more than 15%. The project from the very beginning will have a time bound plan for exit. The project will support Livelihood Facilitators for a period of only two years and thereafter, the LCs will either absorb them orengage community facilitators. Similarly, the project will support a Livelihood Coordinator and anAccountant for a period of four years. Thereafter, it is expected that the LCs will engage required stafffor managing their activities. Implementation of project‟s exit strategy will be one of the keydeliverables of the Partner NGOs.

Annexure 2 (i) Option Menu under Food Security Improvement Plan

(FSIP) FSIP focus will be on food security enhancement related activities. They include: (i) supply and production of quality seeds (cereals, vegetables and pulses); (ii) soil fertility improvement; (iii) other on-farm activities such as vegetable cultivation; (iv) off-farm sectors such as poultry and goat rearing. Input supplies:

Inputs at full cost; List prepared by DMU

Inputs that can be provided by ULIPH federation members at full cost:

Inputs subsidized/supported by project: Community contribution. CRPs of ULIPH

Inputs provided through convergence

FSIP monitoring and reporting Panel of service providers for facilitating the plans of VPGs will include mostly non-farm activities (small ruminant and poultry and drudgery reduction activities). The menu of options for implementing FSIP is provided below. 1. Agriculture: The traditional cropping pattern and cropping calendar vary depending upon the altitude, soil type and availability of irrigation. Traditional cropping pattern and cropping calendar for three altitude zones (Valley Zone: 600-1200 metres, Hill Zone: 1200-1700 metres and Mountain Zone: 1700-2100 metres) are provided in (Working Paper 2 Agriculture). It is estimated that about 20% of the cultivable land falls in Valley Zone, 50% in Hill Zone and the balance 30% in Mountain Zone. 2. Key drivers for up-scaling farming include enhancing productivity and diversification. Valley farmers have started the process of diversification by starting cultivation of vegetables (tomato/ cabbage/ capsicum/cauliflower/Beans) by replacing rice on irrigated land during April-September. Some farmers have also replaced wheat with pea during November- April. This diversification can be further expanded and in addition productivity of rain fed farming in the valleys can be increased with improved seeds, fertilizers and cultivation practices. These activities can be part of FSIP depending upon the preference of the farmers. 3. In the hills, three major cropping systems exist. They are: (i) rice based; (ii) millet based; and (iii) potato based. Productivity of these cropping systems can be further improved by using improved seeds and by improving soil fertility. Similarly, the mountain zone has two major cropping systems: (i) millet based; and (ii) potato based. Based on altitude and aspect, the farmers in valley take three crops. The farmers in the altitudinal range of 1200-1400 metres are able to take 2 crops whereas the farmers in altitudinal range of 1400-1700 meters take three crops in two years. Productivity increase and diversification to increase the income levels of the farmers will be one of the options for implementation of FSIP. 4. Fodder: lack of feed is a major constraint in cattle production, and cutting fodder frm forest areas is extremely laborious for women and damaging to trees. Improving fodder resources would help reduce workloads and protect the environment, as well as enabling increased milk production. Fodder crops, such as Napier grass can be grown on farm land and on plots in Van Panchayat forests. NGOs have been establishing groups that set up community fodder plots and sell fodder to livestock keepers. Similar activities could be carried out by ILSP PGs. 5. Poultry: Kuroiler and broiler poultry remains a low cost activity and it is most suitable for households without cultivable land. Poultry rearing will be one of the options in FSIP. The partner agencies facilitating the PGs/VPGs will have to take into account market potential before supporting a large number of such units. In most hill areas, poultry will be able to service only the local demand.

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For meat production, the minimum size of the poultry unit will be 50 birds. Support for 2nd cycle chicks and about 8-10 weeks of feeding for the second cycle chicks will have to be built into the investment cost. The partner agency will have to access technology for reducing the cost of feed by utilizing locally available resources. 6. Goat Rearing: Goat rearing will be one of the better options for landless households who are the poorest within the project area. These households will not be able to pursue other land based livelihood options. Ability of beneficiaries to manage this activity which requires collection of fodder from forest remains the key determinant for selection of households. The minimum herd size of five goat kids will be supported with minimum support for goat pen construction. 7. Rabbits: The project with the support of its technical team will be able to identify innovative livelihood options that require minimum labour and limited external inputs. Rabbit rearing is one such intervention. Some of these options can be pursued as a part of FSIP.

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Annex-2.1.3: General TOR for UGVS Technical Agencies

I.Background

The Integrated Livelihood Support Project (ILSP) will follow on from the

UttarakhandLivelihood Improvement Project in the Himalayas (ULIPH) which will be

completed at the end of 2012.

ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society

established by the

Rural Development Department, Government of Uttarakhand and Uttarakhand Parvthiya

Ajeevika Samvardhan Company(UPASAC),a social venture capital company. The Food

Security and Livelihood Enhancement and livelihood financing components of ILSP will be

implemented by these two agencies.

2. Rationale: the justification for ILSP is the need to stop the deterioration of the

productiveinfrastructure, make farm labour more productive and farming more remunerative,

and hence provideincentives for people to invest their time and resources in agriculture.

Despite the disadvantages thatagriculture faces in the hill areas, Uttarakhand does have the

advantage of cooler temperatures athigher altitudes, allowing production of out of season

vegetables and temperate fruits. Thehorticultural sector is less developed than in the other hill

states, so there is also considerable potential forgrowth, in other niche products such as

spices, medicinal and aromatic plants, and nuts.

3. Another area with growth potential is tourism. However more needs to be done to ensure

thatlocal people fully participate in, and benefit from, this sector. The population is well

educated, but thelevel of youth unemployment is relatively high. Therefore, proper vocational

training also could help such people findgood quality employment in the growth sectors of

the country.

4. The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand.

Thiswould be achieved via the more immediate development objective of “enable rural

households to takeup sustainable livelihood opportunities integrated with the wider

economy”.

5. The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods

in hilldistricts. The first of these is to support and develop the food production systems which

remain themain means of support for most households. The second main thrust of the project

is to generatecash incomes via the introduction and expansion of cash crops. These would be

grown on asignificant scale for markets outside of the state. ILSP will also support non-farm

livelihoods,especially community involvement in rural tourism, and vocational training.

Component 1 of ILSP

6. Food security and livelihood enhancement to be implemented by UGVS, will supportcrop

and livestock production for food security, and develop higher value cash crops and

otherproducts (such as rural tourism, etc) to provide cash incomes. Crop and livestock

production will bedeveloped via support to Producer Groups (PG) and their higher level

organizations (Livelihood Collectives- LC) formed by federating number (about 60 or so) of

PGs. To up-scale enterprises generating cash incomes, and tointroduce new income sources,

ILSP will also improve access to markets through a value chainapproach and the provision of

technical services and physical infrastructure for market access. The value chain

approachinvolves market/sub-sector studies, introduction of new technologies, market

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linkage, skilldevelopment, product development and promotion, physical infrastructure for

market access.

These activities will cover 64175 households in selected 26 blocks of the five districts i.e.

Almora, Bageshwar, Chamoli, Tehri and Uttarkashi. The project will alsoimprove access to

employment in the non-farm sector by supporting vocational training linked to jobplacement.

Component 3:

7. Livelihood financing component of the ILSP Project is to be implemented by UPASAC.

Despite making significant stridesin financial viability, banks have not been able to provide

significant numbers of poor households withbasic financial services. Therefore, the activities

under this component under the ILSP Project include:





Establishment cost support to UPASAC.

Component 4:

Project coordination and Management:

8. UGVS, has established a Project management Unit (PMU) , headed by the Project

Director. To provide overall coordination, the State nodal agency, i.e. RDD, will set up a

Central Project Coordination Unit (CPCU) within the RDD, headed by a part time Chief

Project Director (CPD). TheCPCU will have two Units: (i) Finance Unit; and (ii) Planning

and M&E Unit. The Finance Unit will belocated within RDD whereas the M&E Unit will be

housed within UGVS.

The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of

RDD.

Convergence:

9. The National Rural Livelihoods Mission (NRLM) will start operations in 2012 andwill be

responsible for forming and supporting SHGs. ILSP will provide complementary support

forlivelihoods for SHG members, many of whom will also join PGs. Producers supported by

ILSP will beexpected to receive support from other government programmes and from formal

financial institutions.

II. ROLE AND QUALIFICATIONS OF THE Technical Agency

Project period

10.The project duration is 7 years and the project cycle in eachGram Panchayat (GP) will be

of 5 years in the following three phases.


The Implementation Phase: - Five years.

The Withdrawal Phase: - sevnth year

The services of the Technical Agency may therefore be required for a period of about 7/6

years

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Need for Technical Agency (TA)

11.The objective of the proposed consultancy assignment of the Technical Agency is to

facilitate, support and implement technical aspects related to component 1 of the Project,i.e.

Food security and livelihood enhancement component to be implemented by UGVS. Brief

details of the activities of this component are given in Annexures 1 and 2.This would involve

support of the Technical Agency to the

Existing federations (71) of SHGs & SHGs formed under ULIPH Project, etc in 17 blocks of the five districts, and

Producers Groups ( approximately ) and vulnerable Producers Groups( approximately) and Livelihood Collectives (60) to be organized in new 9 blocks of the five districts by the contracted partner agencies ,

Total number of HHs to be covered in ILSP are 64175 in total 26 blocks of the five districts

Of the above, the Project beneficiaries are expected to be over 30000 in the 26 blocks

Number of clusters would be 30 in 9 new blocks of the five districts i.e…………….. for which partner agencies would be hired for organizing the community institutions i.e. …. Producers groups& VPGs and 60livelihood collectives and their capacity building insocial aspects. These groups and their Livelihood Collectives would require support of the Technical Agency for supporting them in initiating action forplanning forup scaling enterprises, and implementation of the plan, with hand holding support of the Technical Agency.

In old 17 blocks, the existing federationsof SHGs would also need support and help of the Technical Agency particularly in AUP preparation and implementation including value chain activities including marketing.

In Almora district there will be need of 2 technical agencies and in other districts there will be 1 agency for each of the 4 districts. However it may happen that a technical agency may be hired for more than one district if it has the capacity and is willing to work in more than 1 district.

12. The Results to be achieved by the end of the consultancy period as per the log frame work

are:

i) New high value crop, horticulture and livestock technologies are adopted by more than 70

% of the Producer Groups(PGs).

ii) Appropriate practices for grading, storage & processing and market linkages have

beenadopted by about 70% of the farmers of the PGs, to increase (by at least 20%) the value

realized of their produce to enhance their householdincome levels.

iii) Value-chains in selected sub-sectors have been developed in a sustainable manner to

sustainably increase incomes(by at least 15%) in three value chains in project areas.

iv) Linkage of over 70% livelihood collectives (LCs) to the market.

v) 8000 vocational training graduates gain employment.

III. SCOPE OF WORK

Tasks of TA

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13. The Technical Agency engaged for the district will undertake in the Project district the

following tasks for the fulfillment of the above objectives :

Development of District level action plan

14. The contracted technical agency will develop the action plan for the allotted District

covering the clusters of Project villages, based on an analysis of farmingsystems and

livelihoods among community, the current activity linked to agribusiness in the Division,and

analysis of sub-sectors selected as having (most) high income potential for project

beneficiaries and communities. Thecontracted agency will undertake a Farming Systems

Livelihood Assessment, and study the District Economy Context in accordance with the Food

Security Enhancement and Livelihood Supportstrategy of the project and the Terms of

Reference and Formats developed by Project Management Unit (PMU). It would also prepare

the cluster-wise plan for enterprise upscaling for the new 9 blocks in the selected villages (in

clusters) and for the villages being served by the federationsin the old 17 blocks of ULIPH

Project In the five districts.

15. The plan would also include preparation of exit strategy & capacity building of the

community institutions to manage the same, so as to ensure that the development achieved

with the ILSP project activities is sustainable.

16. Sub-sector value-chain analysis of relevant sub-sectors are to be carried out by the

contracted technical agency inco-ordination with state level analysis being undertaken by the

PMU.

Support to Producer Groups (PGs) and Livelihood Collectives (LCs) /Associations

17. Farmers residing in the Project villages have limited access to the larger market

networkfor their products. To address the existing constraints and to leverage their access to

production andmarketing services, the contracted partner agencies will support farmers to

organize into producers groups atthe village level, according to interest of farmers and needs

of the sub-sectorand to organize the producers groups in local collectives for facilitating AUP

plan, marketing and other services. The contracted technical agencywill also help such groups

and group members,where required to properly plan their production andmarketing of crops.

The contracted technical agency will also provide technical assistance and necessary

management guidance to theLivelihood Collectives formed. These Livelihood collectives

would be registered under SelfReliant Cooperative Act, 200. They would get support of the

partner agencies for building their institutional capacity, record keeping and

businessplanning. In technical matters they would have to be supported by the contracted

technical agency in all respects.

Dissemination of Improved Agricultural Practices and Extension services

18. The contracted technical agency will identify and extend to the farmers and other

beneficiaries (of PGs and VPGs) of the project and their institutions,new and commercially

viable technologies; through a planned extension system and an integratedpackage of services

for the specific sector of intervention. This will include introduction anddissemination of

improved technology and practices for Agriculture, Horticulture and/or Silvi-

pastoraltreatments. Introduction of off- season vegetables and high value crops would be

emphasized. Newvarieties of off-season vegetables, fruit crops, medicinal and aromatic

350

plants, nuts, etc will be introduced basedon agro-climatic factors, demand and assured

market. Related training in application of newtechnologies and improving productivity of

crops by compact area demonstration (with funds from the project for the inputs)of new crops

willalso form part of the tasks to be performed by the technical agency.

Specific resource consultants and sub partnerships with technical institutions will be within

themandate of the contracted technical agency, (Jointly decided between the contracted

technical agency and the PMU).

19. The contracted technical agency will also facilitate technical training and innovative

practices to the vulnerablegroups and individuals for livelihood enhancement and for

improving post harvest handling, providing supply chain management, logistical support

andestablishing market linkages.

20. The contracted agency will work closely with farmers of the Groups and their

associations in developing the sub-sectorvalue chains to enhance incomes. The contracted

agency will be providing technical post harvesthandling support, help arrange logistical

support for farm produce marketing and identify the needsand type of collection and

marketing infrastructure.

21. It will help establish partnerships with inputsuppliers, market operators and agro-

processing companies. It will help establish norms and systemsfor quality control, market

information systems and opportunities for new products, packaging, andmarket related

requirements. Identification of potential niche market opportunities for productsdeveloped as

a result of project interventions and exploration and establishment of linkages withprivate

sector entrepreneurs who could help in exploiting the market potential will also form an

integralpart of the tasks to be performed.

22. The objective of the project is also to transfer to farmers the capacities of linking to

markets to sustainably increase incomes. Thus the agency will not only undertake the above

activities, but also focus on developing individual and group capacities to undertake them

independently after the project.

23. Project interventions may be with farmers or further up the value-chain, as necessary.

Partnerships orcollaboration with public or private agencies can be developed as necessary.

Overall technical support, training and capacity building

24. The contracted agency will provide overall technical support to the farmers and their

institutions in the pre-specified projectvillages and the project as a whole on agribusiness

related issues and will work in close cooperationwith the project management unit and the

state level organizations, Line Departments, Universities,etc.

Coverage

25. The coverage would be limited to the selected villages in the 26 blocks of the above

mentioned 5 districts. The expected coverage is 33000 beneficiary HHs out of the 64175

HHs in 26 block Villagesin the districts of Almora, Chamoli, Bageshwar, Tehri and

Uttarkashi via Producers groups and vulnerable producers groups in new blocks and via

SHGs and federations in old 17 blocks.

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26. Guidance and Support to LCs for infrastructure development

• Assist LCs in the new 9 blocks and federations in the 17 blocks of the 5 districts, in drawing

up proposals for irrigation, soil and water conservation, and otherinfrastructure with funding

from the Project.

• Monitor implementation of this infrastructure development, and assist the above referred

LCs and the federationsin establishingsystems of user charges and plans for operation and

maintenance.

27. Pro-poor market development

• Use the findings of the livelihood survey to beconducted by project to focus on the viable

economicopportunities for enterprise development among project communities.

*Facilitate initiatives to improve market access for project groups, including support for

marketstudies and value chain development, and development of infrastructure for market

access.

More specifically, it would involve following tasks:

i. Undertake value chain analysis of products/commodities identified during the

detaillivelihood survey to be undertaken by the Projectto identify gaps for marketing

intervention which would result inhigher incomes and livelihood opportunities for the project

community.

ii. Study successful marketing initiatives such as collective marketing of agricultureproduce

in the previous project and prepare strategies for their replication.

iii. Develop marketing infrastructure such as collection centers, pathways, river

crossingtrolleys, sub mandies facilitation, store house, etc and value addition facilities such

asdrying platform, technologies and processing units.

iv. Register LCs and the federationsas Commission agent if required to facilitate better

marketing of hillproducts.

v. Facilitate linkages with markets within and outside the markets to reduce number

ofintermediaries.

vi. Develop backward linkages with the concerned Technical Agencies for capacity building,

appropriate technologies, finance, input sourcing etc. for productivity enhancement and

improving efficiency.

28. Staff to be deployed by Technical Agency

The contracted TA is expected to deploy the following staff for the ILSP Project activities in

a district/per district.

Coordinators (1)

Agribusiness officers (4)

Business Development officers (4)

Market Linkage officers (1)

Junior Engineers (1)

Accountants/Assistants (1)

29. Monitoring & evaluation

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The TA is expected to pay adequate attention to periodical concurrent monitoring and

evaluation of the activities implemented on aregular basis and send the reports to PMU of

UGVS. This would enable the TA to achieve the target properly. IFAD as well as the CPCU

in the RDD, Government of Uttarakhand would also be keeping watch on the progress

periodically.

IV. TERMS OF CONTRACT

Broad Terms of contract will be as under:

1. Budgets Allocation and Resources to be provided by WMD

The consultancy contract is essentially for a facilitation role and hence the budget for the

consultancywill be restricted to the direct costs to be borne by the contracted technical

agency. The budget for the contractedagency will therefore include direct operating and

human resource costs, specific technologyintroduction and demonstration costs, market

promotion expenses, and human resources deployed for the Project work. Itwill have to

establish its own office with infrastructure, transport facility, communication system,training

of its staff, etc. Office automation and office accommodation facilities will not be provided

by theproject and the agency will have to hire its own staff and establish its own

accommodation atdivisional and unit levels.

All other costs that arise out of promotion of agribusiness such as input supply will be

directly providedby the project to the Producer Groups: cost of building of collection centres

and market infrastructurewill be directly borne and implemented by the project; and cost of

working capital and related costsdirectly paid to farmers‟ groups and associations. These

costs will be mutually agreed upon throughan annual agribusiness plan prepared and

submitted in advance by the contracted technical agency.

2. Separate accounting & reporting

The contracted agency will open a separate bank account for receipt and expenditure of funds

for thecontract. The agency will also maintain separately records, accounting and auditing of

the fundsallocated and used for the assignment. The agency will submit to the PMU, the copy

of the bank statement andexpense statement on a quarterly basis and audit report on an annual

basis. Agency would besubjected, if necessary, to audits by UGVS staff/ UGVS/IFAD/State

Government appointed auditors for the project funds.

3. Period of the assignment

Period of the assignment would be for 7/6years. Annual extension will be on the basis of

thesatisfactory performance to be recommended by the Review Committee.

4. Performance Review

The following performance review process will be applicable to the contract:

a. On the award of the contract, the agency will prepare a detailed Annual Action Plan,

withinone months of the award of the contract. The Annual action plan/s will specify

clearperformance benchmarks to be achieved after 6 months and after one year.

b. On the basis of the mutually agreed benchmarks the UGVS will review the performance of

theagency on a quarterly basis by the DPIU/PMU.

c. At the end of one year of completion of the contract, a wider review committee as

specifiedbelow will review the performance of the agency against mutually agreed target.

Onunsatisfactory completion of Annual Action plan and/or for any other reason

deemedappropriate the contract may be terminated by UGVS after giving one month‟s

notice.

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d. The performance review committee will comprise of the following members:

Project Director, UGVS - Chair Person

Chief Project manager - Member

Manager (M&E) - Member

JD (Agri.,Hort.,Livestock) - Member (s)

Manager (Planning) - Member

Manager Finance – Member

5. Reporting

a) Quarterly Progress Reports regarding achievement( as specified in the format prescribed

on award

of contract) against targets specified in the Annual Action Plan.

b) Consolidated quarterly/six mointhly reports enumerating the qualitative review of the

project.

6. Relationship with Project Management Unit

The contracted agency will work in close association and in coordination with the

projectmanagement structure of the UGVS at the district and state level. While it will be

directlyresponsible for facilitating and managing the process of agribusiness development

from the farmlevel to the final market, it will work primarily in the project villages already

identified by the projectand the communities within these villages. It may draw upon the

resources generated by the main(i.e. ULIPH) project such as GP level plans being

implemented and other community groups being mobilized bythe project and partner

agencies. Its Annual work plan should be prepared through a consultative process withdistrict

team of the UGVS to ensure coordination during implementation. The required

sanctions,financial disbursements, reporting and performance review will be done by the

relevant authorities atthe state level of UGVS.

7. Terms of payment

The terms of payment as finalized during negotiations by both parties will be applicable.

8. Support to the contracted agency by UGVS

UGVS will provide key background documentation to the team such as Project Approval

Document,

Project Agribusiness Strategy, Supervision Mission Report, Progress Reports, special

studiesconducted by the Project and background information on the Project Area available

with the UGVS.

9. Arbitration

In the event of any dispute between the contracted agency and the UGVS , the Secretary,

RDD, Govt. of Uttarakhand will be the arbitrator and his decision will be final and binding on

both parties.

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Annexure 1

FOOD SECURITY & SCALING UP


The strategy for project‟s livelihood intervention is to create and enhance the livelihoods of

hill and mountain households by applying the principle of social mobilization to enhance

economies of scale both in terms of increased volume of production and reduced transaction

costs.

The project strategy will include a two stage community organization mobilization. First,

Producer

Groups (PGs) comprising households with cultivable land and Vulnerable Producer Groups

(VPGs) comprising households particularly belonging to Scheduled Caste (SC) and other

backward classes with limited cultivable land will be mobilized. Second, Livelihood

Collectives (LCs) will be mobilized comprising the PGs and VPGs and their capacity will be

built to undertake livelihood improvement activities.






Support to community-based demands

C. Description of Activities

The project will facilitate capacity building of project area communities to plan, prioritize and

implement activities of their choice. In addition, the project intends to provide a basket of

short term, medium term and long term interventions to enable the community to

sustainability diversify the livelihood options and at the same time increase the level of

income to move out of poverty.

Key activities are



Livelihood upscaling in new and existing ULIPH blocks through federations


Support to Partner agencies and Livelihood Collectives of new Blocks

Irrigation and infrastructure

Livelihood Collectives will be encouraged to expand cultivation of economically important

crops and off-farm activities at individual households. LCs will also build water and water

and soil conservation related facilities as required by their communities.

Food Security Enhancement through Producer groups

Producer groups will be set up in each village and each PG may have about 15 households

with an interest to undertake similar basic livelihood activity at village level. To ensure full

participation of the poorest households at least 20% of PGs will be VPGs. A significant

proportion of PG/VPG could be existing SHGs formed by ULIPH and other programmes and

thee would continue under ILSP also and these would be gradually absorbed into NRLM. At

least 50% of groups should be women‟s groups.

The project will engage Partner NGOs and ULIPH Federations in some cases to mobilize the

PGs and VPGs. The Partner NGO and the ULIPH Federations will engage Livelihood

355

Facilitators trained in implementing livelihood activities. These Facilitators will be

responsible for PG and VPG mobilization at the village level. It is expected that a Livelihood

Facilitator will be responsible for about 25-30 PGs and VPGs.

The project will build the capacity of the PGs and VPGs to make informed choices of

livelihood activities (primarily agricultural) with potential for scaling up, prepare plans and

implement schemes with support from formal financial institutions, government programmes

and ILSP, as well as contribution from members. These schemes will focus on food security

and basic livelihoods, and include activities related to seeds (cereals, vegetables and pulses),

soil fertility improvement, livestock fodder, poultry and other on and off-farm sectors to

improve the basic livelihood and food supply system. The main thrust of the project is to

move away from prescriptive activity led implementation approach to a decentralized

planning approach at the PG/VPG level.

The PGs/VPGs will elect a Chairperson and a Secretary cum Treasurer. These persons will be

responsible for: (i) identifying beneficiaries to get support from Food Security Improvement

Plan in consultation with the group; (ii) establishment of cost recovery norms; (iii) interacting

with the Partner

NGO and other agencies to mobilize support for preparation and implementation of Food

Security

Improvement Plan; (iv) procuring and supplying inputs required for implementation of Food

Security

Improvement Plan; (v) keeping an account of support provided under Food Security

Improvement

Plan (FSIP) to each household; and (vi) recovering support provided to households and

developing plans for reuse of the same.

Livelihood Collectives

The second step in the livelihood enhancement process is to federate about 65 PGs/VPGs at

the cluster level to form a Livelihood Collective (LC). In some places suitable institutions

may already exist (such as the SHG Federations formed by ULIPH) and can be supported

straight away by the project. These LCs will be the focal points to establish input supply

linkages and aggregate production for establishing market linkages.

A total of 60 LCs will be formed and supported in component 1 of ILSP. These may include

some federations of SHGs established by ULIPH in ILSP blocks, which may be adopted as

ILSP LCs providing they fulfil the livelihood role of LCs.

The General Assembly of the LC will comprise of all the members of the PGs/VPGs. LCs

will be able to register under the Self Reliant Cooperative Legal Framework. This legal

framework does not allow the PGs/VPGs to be the members. It requires individual members

of PGs/VPGs to be the members of LCs. However, the PGs/VPGs in each of the Gram

Panchayat will elect two members (one female and one male member) to Governing Council

of the LC. The Governing Council will thereafter elect a Chairperson, a Secretary, a

Treasurer and a management committee comprising three members. Of these, the positions of

Secretary, Treasurer and two members of the management committee will be reserved for

women. The Partner NGO will provide a Livelihood Coordinator and an Accountant to

manage the activities of LC and to provide necessary management support to the Governing

Council.

Preparation of Food Security Improvement Plan (FSIP)

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The project will provide LCs with financial support of up to Rs 200,000 per LC each year for

two years to prepare a plan and implement a set of livelihood up-scaling and agribusiness

activities.

Further funding for developing individual and community enterprises will be enabled by the

improved access to bank credit and investment funds resulting from component 3 of ILSP.

Additional grant funds will be available for irrigation development and for soil and water

conservation, although the scope of this work will be very much less than that undertaken by

watershed management projects.

FSIP focus will be on food security enhancement related activities. They include: (i) supply

and production of quality seeds (cereals, vegetables and pulses); (ii) soil fertility

improvement; (iii) other on-farm activities such as vegetable cultivation; (iv) off-farm sectors

such as poultry and goat rearing.

The plans of VPGs will include mostly non-farm activities (small ruminant and poultry and

drudgery reduction activities. See Annex-2.1.1

Preparation of Agribusiness Up-scaling Plan (AUP)

The responsibility of preparing AUP rests with the LCs. The first step in AUP preparation

will be facilitation of LCs to identify the activities both off-farm and on-farm that hold

potential for up-scaling by Partner NGOs. This will be based on a value chain analysis of the

selected commodity/crop to assess the input supply, production services and output marketing

related constraints and opportunities. Off-season vegetables, potato, vegetable seeds, potato

seeds are some of the agriculture sub-sectors that offer potential for up-scaling in the hills of

Uttarakhand. In addition, spices and fruit/nut trees also offer potential for up-scaling. See

Annex-2.1.2

D. Implementation arrangements

FSIP PREPARATION

Implementation of FSIP will be the responsibility of the PGs/VPGs. This will include all

aspects related to fund management, input purchase, documentation of expenditure and

activity implementation.

Payment of project support will be directly from project offices to PG/VPG bank accounts.

The

Partner NGOs will provide required backstopping for implementation including provision of

required training and technology packages. Partner NGOs will also monitor expenditure of

support funds and the activities for which they are used

Each PG/VPG will be facilitated by a Partner NGO to prepare FSIP. Situational analysis will

be the first step in FSIP preparation. This will be to ascertain the current status of livelihood

activities being undertaken by the PG/VPG members. This situational analysis is expected to

lead to interventions required for enhancing food security and to assess the investment

required to implement these

activities7. Envisioning the expected results as a goal for achievement will be part of FSIP

preparation.

This will be to compare the expected results with that of achievement.

Subsequently, the Partner NGOs will facilitate a meeting of the representatives of PGs/VPGs

with the government departments and banks to ascertain participation of these organizations

both in terms of financing as well as supply of inputs and services to implement FSIP.

357

The project will allocate INR 80,000 per PG for implementation of their plans. The project

will also provide INR 40,000 each year for two years to VPGs to implement their own plans.

Based on the commitments from various interested organizations, the PGs/VPGs will have to

prioritise their plans and adjust activities proposed to suit available funding.

The participating PGs are required to leverage funding available from the project. This can be

achieved through mobilization of own resources, bank finance or through support from

government departments. The leveraging requirements for the PGs will be a minimum of

15% of the project funding. This will be in the form of cash contribution and not in the form

of labour contribution.

However, there will not be any leveraging requirements for the VPGs.

FSIP approval for release of project funds is subject to a plan by the PGs/VPGs to recover

funds from persons that have benefited from implementation of FSIP. The funds recovered

will be used for implementing next FSIP to benefit remaining PG/VPG members.

The PG and VPG members will internalize the process of achievement review against the

original goal in order to enable the members to understand deviations from the original goal

and reasons thereof. This will provide valuable inputs into preparation of the next FSIP.

PGs/VPGs are required to recover the project inputs from the benefiting members of the

households and use them for preparation of a plan benefiting remaining members of the

groups. FSIP preparation for the next season will follow the same process. PGs do not get any

fund allocation from the project „marketing extension‟ approach may be useful in moving

from subsistence to commercial farming. An outline of a possible approach is in the draft

PIM. But the Partner NGOs will provide required facilitation and backstopping support for its

implementation. VPGs will get another round of funding of Rs. 30,000 per VPG.

AUP PREPARATION

Implementation of AUP will be the responsibility of the LC. The Governing Council of LC,

the

Livelihood Coordinator and the Accountant will be responsible for all activities fund

management, input purchase, documentation of expenditure, activity implementation and cost

recovery. Partner

NGOs will provide required backstopping for implementation including provision of required

training, technology packages and market linkage. These NGOs would also monitor and

report on AUP implementation and results

Partner NGOs will facilitate preparation of AUP. Each LC will establish a small core group

comprising its 3-4 members of the Governing Council and the Livelihood Coordinator to

prepare a draft AUP. The

AUP will consist of two parts. First part will contain activities related to agribusiness

development and the second part will comprise soil and water conservation activities. Partner

NGOs will undertake initial activities related to identifying the crops with potential to

upscale, establishing market linkages to ascertain quantity and type of produce to be

cultivated, consolidating input requirements for procurement through LC and motivating the

farmers to start cultivation of the identified product to achieve scale required for establishing

market linkage. This will be undertaken in close collaboration with LC members.

The core group of each LC will undertake consultation with its PG and VPG members to

validate the agribusiness activities proposed by the Partner NGO and to identify soil and

water conservation activities required by the community.

Each LC will prioritize the activities to be implemented under AUP. Subsequently, Partner

NGOs will facilitate a meeting of LC Core Group members with the government departments

and banks to ascertain participation of these organizations both in terms of financing as well

as supply of inputs and services to implement AUP.

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The project will allocate INR 200,000 per year for each LC for implementation of the

agribusiness development part of AUP. This allocation will be available for two years. In

addition, the project will also allocate an average of INR 1,000,000 per LC for irrigation, soil

and water conservation, and possibly other infrastructure, which can be used over a period of

five years. Based on the commitments from various interested organizations, each LC will

adjust its plan to suit available funding. The participating LCs will leverage funding available

from other projects. This can be achieved through mobilization of funds from own resources,

bank finance, or through support from government departments.

The leveraging requirements for the LCs will be a minimum of 15% for agribusiness

development and

25% for the irrigation and soil and water conservation works. UPASAC funding will also be

available to support LC enterprises.

Approval for release of project funds is subject to a plan by the LC to recover funds from

persons that have benefited from implementation of AUP and establishing a system of user

charges for irrigation water usage. The funds recovered will be used for implementing the

subsequent AUP and also for carrying out maintenance activities for the water infrastructure

developed under the project.

Upon completion of implementation of AUP, the original goal and achievement will have to

be presented to the General Assembly for review. This will enable the members to understand

deviations from the original goal and reasons thereof. This will provide valuable inputs into

preparation of next AUP.

SUPPORT FOR OLD ULIPH BLOCKS

Component 1 of ILSP is planned to cover 26 blocks in five districts. Of these, 17 blocks are

ULIPH blocks. In other areas of the nine blocks around 27 to 30 ULIPH Federations, each

with around 600 to 700 members, will continue to get a moderate degree of support from

ILSP. This support will provide back-up to Federation leaders in institution building and help

in ensuring convergence (linking Federations with support from other programmes of the

government). To do this, leaders and members of these Federations could participate in

training; workshops and meetings organised for Federations in the ILSP blocks, and also get

advice and support from project staff.

E. Partner Agencies

The project will contract about 30 partner agencies for field implementation of this

component. Each agency will be allocated a working area which may correspond to a district

or part of a district.

However boundaries of these working areas (termed „divisions‟) may be adjusted to equalize

workloads and allow for convenient coverage from the point of view of road access.

Component 1 of the project is planned to cover 64,175 households in 26 blocks in five

districts. Of these, over 22,900

(36%) are in eight blocks in Almora district, so it could be worth splitting this district into

two divisions.

Partner Agencies will be contracted to carry out the tasks as described in Annex-2.3.1


The activities recommended in the menu of options are some of the tested and tried activities

in

Uttarakhand. In the 2010 Annual Outcome Survey of ULIPH, 98% of sample households

reported improved food security, 45% increased crop production and 51% increased income.

With a much more comprehensive focus on livelihoods, the activities under the FSIP are

expected to enhance food production and cash income level at the household level. The focus

is on activities that are currently being undertaken with a view to enhancing productivity. The

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activities proposed under AUP have been tested in some parts of Uttarakhand and the project

intends to address value chain constraints to upscale production with market linkage.

Activities under these two plans are expected to provide financial rate of return of more than

15%.

The project from the very beginning will have a time bound plan for exit. The project will

support

Livelihood Facilitators for a period of only two years and thereafter, the LCs will either

absorb them or engage community facilitators. Similarly, the project will support a

Livelihood Coordinator and an Accountant for a period of four years. Thereafter, it is

expected that the LCs will engage required staff for managing their activities. Implementation

of project‟s exit strategy will be one of the key deliverables of the Partner NGOs.

Annexure 2 (i)

Option Menu under Food Security Improvement Plan

(FSIP)

FSIP focus will be on food security enhancement related activities. They include: (i) supply

andproduction of quality seeds (cereals, vegetables and pulses); (ii) soil fertility

improvement; (iii) otheron-farm activities such as vegetable cultivation; (iv) off-farm sectors

such as poultry and goat rearing.

???Input supplies:



Inputs subsidized/supported by project: Community contribution. CRPs of ULIPH


FSIP monitoring and reporting

Panel of service providers for facilitating the plans of VPGs will include mostly non-farm

activities (small ruminant and poultry and drudgeryreduction activities). The menu of options

for implementing FSIP is provided below.

1. Agriculture: The traditional cropping pattern and cropping calendar vary depending upon

thealtitude, soil type and availability of irrigation. Traditional cropping pattern and cropping

calendarfor three altitude zones (Valley Zone: 600-1200 metres, Hill Zone: 1200-1700 metres

and

Mountain Zone: 1700-2100 metres) are provided in (Working Paper 2 Agriculture). It is

estimatedthat about 20% of the cultivable land falls in Valley Zone, 50% in Hill Zone and the

balance 30%in Mountain Zone.

2. Key drivers for up-scaling farming include enhancing productivity and diversification.

Valleyfarmers have started the process of diversification by starting cultivation of vegetables

(tomato/cabbage/ capsicum/cauliflower/Beans) by replacing rice on irrigated land during

April-September.

Some farmers have also replaced wheat with pea during November- April. This

diversificationcan be further expanded and in addition productivity of rain fed farming in the

valleys can beincreased with improved seeds, fertilizers and cultivation practices. These

activities can be part ofFSIP depending upon the preference of the farmers.

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3. In the hills, three major cropping systems exist. They are: (i) rice based; (ii) millet based;

and (iii)potato based. Productivity of these cropping systems can be further improved by

using improvedseeds and by improving soil fertility. Similarly, the mountain zone has two

major croppingsystems: (i) millet based; and (ii) potato based. Based on altitude and aspect,

the farmers invalley take three crops. The farmers in the altitudinal range of 1200-1400

metres are able to take2 crops whereas the farmers in altitudinal range of 1400-1700 meters

take three crops in twoyears. Productivity increase and diversification to increase the income

levels of the farmers will beone of the options for implementation of FSIP.

4. Fodder: lack of feed is a major constraint in cattle production, and cutting fodder frm

forest areas

is extremely laborious for women and damaging to trees. Improving fodder resources would

helpreduce workloads and protect the environment, as well as enabling increased milk

production.

Fodder crops, such as Napier grass can be grown on farm land and on plots in Van

Panchayatforests. NGOs have been establishing groups that set up community fodder plots

and sell fodderto livestock keepers. Similar activities could be carried out by ILSP PGs.

5. Poultry: Kuroiler and broiler poultry remains a low cost activity and it is most suitable

forhouseholds without cultivable land. Poultry rearing will be one of the options in FSIP. The

partner agencies facilitating the PGs/VPGs will have to take into account market potential

before supporting a largenumber of such units. In most hill areas, poultry will be able to

service only the local demand. Formeat production, the minimum size of the poultry unit will

be 50 birds. Support for 2nd cyclechicks and about 8-10 weeks of feeding for the second

cycle chicks will have to be built into theinvestment cost. The partner agency will have to

access technology for reducing the cost of feed byutilizing locally available resources.

6. Goat Rearing: Goat rearing will be one of the better options for landless households who

are thepoorest within the project area. These households will not be able to pursue other land

basedlivelihood options. Ability of beneficiaries to manage this activity which requires

collection offodder from forest remains the key determinant for selection of households. The

minimum herdsize of five goat kids will be supported with minimum support for goat pen

construction.

7. Rabbits: The project with the support of its technical team will be able to identify

innovativelivelihood options that require minimum labour and limited external inputs. Rabbit

rearing is onesuch intervention. Some of these options can be pursued as a part of FSIP.

Annexure 2 (ii)

Option Menu under Agri-business Up-scaling Plan

(AUP)

The responsibility of preparing AUP rests with the LCs. The first step in AUP preparation

will befacilitation of LCs to identify the activities both off-farm and on-farm that hold

potential for up-scalingby partner agencies. This will be based on a value chain analysis of

the selected commodity/crop to assessthe input supply, production services and output

marketing related constraints and opportunities. Offseasonvegetables, potato, vegetable seeds,

potato seeds are some of the agriculture sub-sectorsthat offer potential for up-scaling in the

hills of Uttarakhand. In addition, spices and fruit/nut trees alsooffer potential for up-scaling.

Input supplies:


Facilitating bulk discounts from input suppliers for LCs:


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Inputs subsidized/supported by project: Community contribution



Panel of service providers for facilitating business plans

The most important constraints are inadequate volume of production and resultant inability

toestablish market linkages with wholesalers. This can only be addressed first by establishing

contactswith the wholesalers to identify crops and volumes required for making a market lot

and finalizing anarrangement with the wholesalers for purchase of produce. Based on the

potential of the area andalso availability of market linkages the following options can be

considered for implementation of AUP.

Off-season Vegetables: There are opportunities for up scaling off-season vegetable

cultivation tomeet growing demand from the markets in the plains and National Capital

Region. Major vegetablecrops are now potatoes, tomato, peas, cabbage, French bean and

capsicum. The cool temperateclimates of Uttarakhand offer opportunities for off-season

vegetable production for sale in the marketsof the plains during the summer months, when

prices are high. Specific opportunities in this sectorinclude:

Selling directly to more distant and out-of-state markets to increase returns to farmers.

(This opportunity has been enhanced by the recent reform of the APMC Act which willpermit direct contract sales to buyers from outside of the state.)

Improve market access infrastructure with new collection centers, footpaths and rivercrossings.

Improve productivity of OSV crops through better seed, fertilizer, pest control and cropmanagement.

Extend cropping season with protected nurseries in playhouses and polytunnels. Thiswould enable earlier crops to be sold at premium prices, produce more exotic vegetables for niche (but expanding markets. These includebroccoli, Brussels sprout, red cabbage, baby corn, asparagus (perennial) and lettuce.Berry fruits, such as strawberries, may also have potential.

Potato and Potato Seed Production: The potato is a major staple food in the higher hills.

Summergrown

Hill (Pahari) potatoes command a price premium in the markets of plain areas. However,

thereis a severe shortage of quality (certified) seed potato varieties suited to the hills,

necessitating importsfrom Himachal Pradesh. Many farmers are forced to use their own seed

or seed of inappropriatevarieties from the plains. The cool summer climate and disease-free

environment of the high hills

(3,000m +), represent a competitive advantage for producing quality potato seed. There is

opportunityto upscale potato production and potato seed production in areas with potential for

growing this crop.

This requires careful crop planning to achieve economies of scale required to reduce

transactioncosts to reach the market.

Tree fruits: once established, tree crops need less labour and so are useful for households

wheremen have migrated to outside jobs. Mango, litchi and guava can be grown in the

valleys. Citrus(including Malta), apples, pears, peach, plum and cherry can be grown in the

hills. The fruits grown inUttarakhand have seasonal and locationadvantages as these crops

mature at least three weeksearlier than other temperate areas of the country i.e., Himachal

Pradesh and Jammu and Kashmir.

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There is potential to improve market returns by growing better quality fruit and increasing

yields byusing trees on better rootstock and with improved management.

Spices: Hills of Uttarakhand have the potential to grow spices such as garlic, turmeric,

ginger, chillyand coriander. These can be cultivated in hills up to 1500 meters altitude.

Similarly, there is potentialto grow bay leaf trees, which has a huge market within India.

Cultivation of spices is of particularimportance to farmers from areas than with those that

register high incidence of destruction of crops by wildanimals. The spice crops are generally

low volume and high value and hence the farmers are able totransport small lots.

Dairy: Most households keep one or two buffaloes/cattle for milk, manure and draft power. .

Opportunities exist to improve the productivity of dairy animals by: (i) breed improvement

(the projectwill work with the Uttarakhand Livestock Development Board to provide to

provide artificialinsemination services); (iii) feed resources can be significantly improved by

introduction of perennialforage species in the Van Panchayaths and intensification of terrace

risers and bunds with legume grassspecies. There is also opportunity to increase forage base

by promotion of soybean and pigeonpea in the bunds of rice fields; (iv) NABARD offers a

back-ended subsidy of about 30% for farmersinterested in buying dairy animals through bank

loans. The LCs will be able to make use of thisscheme for buying improved animals; and (v)

aggregation and collective marketing of milk and milkproducts to consumers in hill

communities.

Poultry: this is a suitable enterprise for poorer households. ULIPH and other programmes

have beenpromoting Kuroilers, but this initiative has had mixed results. ILSP will adopt a

more flexibleapproach, with emphasis on up-scaling to more commercial enterprises, and

supply chains beingdeveloped for chicks, medicines and feed. LCs could take a role in such

input supply (paravets andother individuals could also become input suppliers). ILSP will

also be flexible in supporting variousproduction models – not just Kuroilers, but also broilers

and other types of bird.

Medicinal and aromatic plants: as described in Working Paper 4, the potential for the

cultivation ofmedicinal plants is limited by illegal collection of wild plans and a opaque

marketing chain for thisproduce. However there is better potential for aromatic plants, with

cultivation and distillation of plantssuch as citronella, palmarosa, basil, camomile, Japanese

mint, geranium, targets and Artemisia,

Lichen and herbs, etc.

Nuts: there is good potential for walnuts, and possibly pecan nuts, hazel nuts, chestnuts

andalmonds. Nuts can grow well in the hills, resist wild animal damage, are not perishable

and are a highvalue/low bulk product that can stand the cost of transport from remote

locations. There are goodmarkets for nuts in India and established export markets.

Other potential enterprises include flowers, organic produce, crops seeds, tourism,

weaving, goats,mushrooms and bees, Rural Non-farm Sector activities and

Ecotourism/Village tourism, etc.

The second of AUP preparation step will be to identify the infrastructural needs of the LC

members toenhance availability of water. The following activities can be considered for

preparation of the waterrelated infrastructure for the community:

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Farm Ponds: Water reservoirs are generally constructed for storing water. This water is used

forwashing, irrigation, drinking, etc. Rainfall and runoff are the main sources of water. This

simpletechnique is very common in the hills where access to water is limited.

Farmer Managed Diversion Channels: Farmers construct diversion channels along the

contourin order to intercept surface runoff as well as to divert the stream flow to the irrigation

channels.

The diversions are constructed using local materials such as boulders, logs, branches

andbushes. The channels are lined with earth. Farmers contribute in kind, cash or labour to

maintainsuch systems. Farmer groups are established to manage distribution of water.

Inadequateirrigation is the main reason for the inability of hill farmers to enhance crop

intensity and changecropping pattern. Improvement to the traditional channels has a big

potential in the hills ofUttarakhand.

Micro-irrigation systems: drip and sprinkler systems make the best use of limited

watersupplies, and are an economic way of providing water to high value cash crops

Lift irrigation – the use of pumps and water rams can get water to land that is otherwise

notcovered by irrigation. LCs implementing such schemes will need to levy user fees to

coveroperating costs.

Other soil and water conservation efforts: Several indigenous technologies have

beendeveloped by the hill people to conserve soil and water resources. These simple cost

effectiveand user friendly technologies could be adopted under the project. An important step

in thisdirection is to motivate people and convince them to make concerted efforts in the

promoting andimproving such technologies.

Simple techniques such as planting nitrogen fixing trees or shrubs along the contour

lines,planting grass species in the vulnerable areas, planting cover crops rather than the tall

trees,contour tillage/planting, rainwater harvesting, can also be applied for soil and water

conservation.

In severely affected areas, where simple vegetative measures may not be sufficient,

physicalstructures such as soil trap, check dam, dry masonry, gabion retaining walls, contour

bunding,river bank erosion control works, land consolidation/terracing, cross drainage

structures, storagedams, water distribution systems, etc., could be constructed with the active

participation of thecommunities.

Other cost effective water harvesting measures such as rehabilitating irrigation schemes,

waterstorage tanks for supplementary irrigation hydraulic rams/lift irrigation and micro-

irrigation can beconsidered as a part of the plan.

Annexure 2 (iii)

MARKET ACCESS


This sub-component will aim to increase access for hill producers to wider markets, and help

themtake advantage of the climatic advantages offered by Uttarakhand‟s hill regions


Appropriate identification and selection of sites for last-mile infrastructure including assemblymarkets and their implementation

Building the capacity of the producers and farmers effectively

Providing reliable market-linkages and buyer and seller contact

Better market information

C. Description of Activities

Specific initiatives to be supported by ILSP will include:

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i. Improve market access infrastructure, so reducing transport cost and time – which in turn willreduce wastage. This can also encourage more buyers to enter hill areas so providing morecompletion in the market.

ii. Make more direct linkages with markets outside of the state to enable produce to passthrough fewer hands and so increase the producers’ share of the final consumer price.

iii. Enter into contract marketing arrangements for direct sales to retail channels and processors.

iv. Process or part-process produce and add value at the producer end. v. Adjust production calendar and methods to align supply with periods of highest prices and

toimprove quality and hence prices. vi. Supply growing local markets, including those linked to the tourist trade.

Sub-sector development will use a value chain approach to focus on produce where the state

has acomparative advantage. Opportunities exist to: (i) increase the productivity and

efficiency ofproduction to both increase the income of farmers and also provide the scale

needed to meet theneeds of markets; and (ii) improve marketing systems and access new

markets with existing or newproducts. More details are in Working Paper 4.

The following specific market opportunities have been identified: i. Off-Season Vegetables: selling directly to more distant and out-of-state markets canincrease

returns to farmers. This opportunity has been enhanced by the recent reform ofthe APMC Act.

ii. Spices: production could be scaled up with marketing linkages to major private sector

spiceprocessing and marketing companies. There are also niche markets for locally processedand branded spices, capitalizing on Uttarakhand’s clean and organic image.

iii. Tree fruits: the price of fruit can be greatly increased by switching to production of betterquality table fruit. There may also be opportunities to expand the processing of low qualityfruit, and produce sub-tropical fruits (litchi and mango) in valleys for off-season markets.

iv. Tree nuts: there is an opportunity to scale-up production of walnut for domestic and exportmarkets. There may also be potential for hazel, pecan and other nuts.

v. Dairying: the producer price of milk can be significantly increased by local aggregation andthen sale to local consumers, and by production of a range of milk products.

vi. Aromatic Plants have potential for cultivation and local processing into products such asessential oils.

vii. Other potential products: seeds for locally produced crops, mushrooms, honey, handicrafts(especially weaving), and fibers (especially nettle fiber). There is also potential to producepoultry and goats for local markets.

The first step in a value chain approach is to make a study of the target sub-sector (which

may be asingle product or group of products). Guidelines for value chain analysis are in

Annex-2.2.1. Astrategy for Market Access as proposed by UGVS is attached in Annex-2.2.2

Market infrastructure: the project will fund development of the physical infrastructure of

markets. Atthe moment the 20 wholesale markets (mandis) in the state are located in the

plains or on the edge ofthe hills. Many hill producers are located at a long distance from these

markets. The project will fundthe establishment of 12 assembly markets (major collection

centers): one in each of the nine hilldistricts, with three more in high potential locations.

Establishment of such markets will takeadvantage of the new APMC Act which allows

private sector involvement in construction andmanagement of such markets – previously all

produce that was sold outside of the state had to passthrough the 20 official mandis where a

number of charges were levied.

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Opening new market locations close to production areas will give opportunities to traders to

come intothe hills. It is recommended that 12 new marketing points be established as soon as

possible, thoughthe exact format for these new marketing points should be flexible.

Discussions suggest that it may bebest to first establish them as informal collection centers

and only later possibly convert them toformal mandis. This approach will allow the market

system to adapt to recent changes in the lawconcerning agricultural marketing - in particular

it needs to be seen how much produce will now bypassthe official mandis and whether

private mandis will be established.

The project will also have funds to support APMC reform and other policy initiatives through

studies ofthe new mandi system together with workshops to gather the feedback and opinions

of market actors.

Other options for market infrastructure include supporting the establishment of farmers‟

marketsbased on the popular rythu concept. Provision has been made for 20 storage-cum-

collection points,each servicing a few villages where produce can be stored for a few days

before moving it to a roadhead or higher level market.

ILSP will also improve „last mile‟ access to markets. This will help increase the area of land

fromwhich production can economically reach the market, and will help producers in more

remote areas tobe competitively connected to markets. Even a distance of one km from the

road head can changethe fate of growers, and 41% of villages in hill districts are more than

this far from a metal road.

In addition, river crossing ropeway trolleys have been included in the project budget. These

will bebacked with appropriate institutional arrangements to manage their continued

operations.

The project will give consideration to supporting a cell-phone query based market

information systemas a means to deliver relevant and timely information to farmers. This

information could includelogistical movement updates, stocks available/expected at various

collection points, price data, andinput availability. Should such a phone-based system be

found not to be feasible, a web basedsystem of communication accessible at the LC level will

help implementers to be better informed aboutneeded efforts to best manage the market

system?

Capacity building will be focused on changing attitudes to dealing with markets. Capacity

buildingefforts will not only aim to better equip farmers but also improve the ability of

partner agencies staff and othersinvolved with execution of market related functions.

Exposure visits, including experience sharingwith successful farmers, would help open the

eyes of producers to real life situations.

It also will beuseful to invite external resource persons to view ILSP efforts, share

experiences, and offer “out of thebox” suggestions.

Beyond improving skill sets of community members, there is a need to invest inmanagement

capability. Depending on needs, the following training programmes may be scheduled:

Farmers – importance of cleaning, sorting, and grading; managing money and

keepingaccounts, improving negotiation skills, calculating net return, etc.

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NGO Staff – understanding markets, forecasting trends, planning efficient logistics,managing

stocks and payments

Steering Committee members and senior PMU staff – workings of markets, need

tounderstand and adapt to market needs, tuning project needs to market needs.

Capacity building will be supported by the proposed linkage with a high level business school

orconsulting company – which would provide the business school or consulting company

with real lifeexamples of community businesses for their own training and research, while

providing support thatwill develop the capacity of project staff, NGOs, Livelihood

Collectives and other enterprises. .

A cell-phone based market information system could deliver relevant and timely information

tofarmers. Apart from market price data, it could also deliver logistical movement updates,

stocksavailable/expected at various collection points, and input availability within the ILSP

network. Whileservices such as Reuters Market Light8 (RML) and IKSP are available, a

customized application willhelp aggregate movement data within the project points, thus

contributing to improved internal coordination.

Should this not be found feasible to pursue, a web based system of communicationaccessible

at the LC level will help implementers be better informed to manage the market system.

D. Outcome Indicators

More households use new marketing channels, and other new opportunities and technologies

Increase of producers’ share of retail price by at least 10%.

Capacity building programs for market linkage conducted.

Buyer-seller meets organized.

MoUs with market agencies executed

Enterprises established in identified sectors

Market information pilot carried and learning disseminated

ILSP may benefit from linking with the support to be provided by the GIZ-funded RED project for the applicationof RML in the state. RML is also being piloted by the current ULIPH in partnership with the Department ofTelecommunications.

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Annex-2.1.4 Sub-Sector Identification Study: Draft TOR

INTRODUCTION

Background: the Integrated Livelihood Support Project (ILSP) will follow on from the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of 2012. ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society within the Rural Development Department, and Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC), a social venture capital company. ILSP will be implemented by these two agencies, along with the Watershed Management Directorate. Rationale: the justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provide incentives for people to invest their time and resources in agriculture. Despite the disadvantages that agriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures at higher altitudes, allowing production of out of season vegetables and temperate fruits. The horticultural sector is less developed than in the other hill states, so there is considerable potential for growth, as there is in other niche products such as spices, medicinal and aromatic plants, and nuts. Another area with growth potential is tourism. However more needs to be done to ensure that local people fully participate in, and benefit from, this sector. The population is well educated, but the level of youth unemployment is relatively high. Better vocational training could help such people find good quality employment in the growth sectors of the country. The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand. This would be achieved via the more immediate development objective of “enable rural households to take up sustainable livelihood opportunities integrated with the wider economy”. The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the main means of support for most households. The second main thrust of the project is to generate cash incomes via the introduction and expansion of cash crops. These would be grown on a significant scale for markets outside of the state. ILSP will also support non-farm livelihoods, especially community involvement in rural tourism, and vocational training. Component 1: Food security and livelihood enhancement implemented by UGVS, will support crop and livestock production for food security, and develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) & higher level organisations (Livelihood Collectives - LC) formed by a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new income sources. ILSP will also improve access to markets through a value chain approach and the provision of physical infrastructure for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development and promotion, physical infrastructure for market access. These activities will cover 64175 households in 26 blocks in five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement. Component 2: Participatory Watershed Development implemented by the Watershed Management Directorate (WMD), will use processes that have been established through a series of watershed development projects in the state, but with an increased focus on food security, livelihoods and market linkages. It will protect and improve the productive potential of the natural resources in selected watersheds along with increasing household income through inclusive and sustainable approaches. The component would cover a total of 41 micro-watershed (MWS) covering an area of about 64,744 ha in six clusters in six districts, with a population of about 39,600 households. It will complement the ongoing watershed development programme funded by the World Bank and GoI, and takes into account availability of required WMD institutional capacity in the selected project districts.

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p) Banking support – capacity building, expansion of branches of RFIs, q) Risk management – piloting and scaling up of insurance services, r) Financial inclusion initiatives – training to LC to be bank agents, product literacy training, s) Provision of development finance via UPASAC including loan and quasi equity funding, t) Establishment cost support to UPASAC.

Component 4: Project coordination and monitoring: Each executing agency, UGVS, WMD and UPASAC, will have their own project management units headed by a Project Director or Chief Executive. To provide overall coordination, the state nodal agency, RDD, will set up a Central Project Coordination Unit (CPCU) within the RDD, headed by a part time Chief Project Director (CPD). Coordination: The Rural Development Department (RDD) will be the nodal agency at the state level. A Central Project Coordination Unit (CPCU) within the RDD. A state level Project Steering Committee (PSC) would be chaired by the Chief Secretary. The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD.

Convergence: the National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will be responsible for forming and supporting SHGs. ILSP will provide complementary support for livelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will be expected to receive support from other government programmes and from formal financial institutions.

Objectives of the Sub-Sector Identification Study To assist UGVS in planning value chain and market development activities for Component 1 of the project, the PMU of UGVS will contract an agency to carry out a study to identify specific sub-sectors which have potential for market-orientated development initiatives and which have the possibility of making a significant impact on the livelihoods of the project‟s target group – marginal and small farmers and poor landless households in the selected 9 blocks of five hill districts of the State. The list of districts and blocks to be covered under the sub-sector study is given in Table-I as follows:

Table-1: List of HH coverage in New Blocks

District Block ILSP HH target

1 Almora Syaldeh 3,928

2 Salt 5,078

3 Bhikiasain 2,033

4 Chaukhutia 1,646

5 Hawalbag 4,384

6 Bageshwar Garur 2,542

7 Chamoli Tharali 2,601

8 Tehri Chamba 4,507

9 Uttarkashi Bhatwari 4,079

Total households 30,798

The agency will be contracted to carry out the following tasks:

Identify potential sub-sectors for development in specific locations (this may be a block or part of a block).

Suggest value chain interventions that would increase returns for producers. Full value chain studies are proposed for selected sub-sectors, so this would be a brief outline that would help justify the identification of specific sub-sectors as having potential for development.

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POSSIBLE SUB-SECTORS Possible sub-sectors for the hills of Uttarakhand include:

Traditional agricultural crops such as millets, upland rice, wheat, oilseeds, pulses

Off-season vegetables

Potatoes

Spices

Tree fruits

Tree nuts

Organically produced products

Seeds for crops and vegetables

Medicinal and aromatic plants

Flowers and ornamental plants

Fibres (such as nettle)

Bamboo

Dairy

Poultry

Goats

Sheep

Honey

Rural tourism

Weaving

Other handicrafts

Metal working (blacksmith) There are, no doubt, other possible sub-sectors. The sub-sectors listed above may need to be divided into more specific product groups in order to separate out those with potential in certain locations. For instance medicinal and aromatic plants could be divided into medicinal plants and aromatic plants, off-season vegetables into individual crops, and rural tourism could be divided into eco-tourism, restaurants and catering, hotels and lodges, and sports and activities. A number of these sub-sectors were reviewed in the ILSP design document – in particular in Working Papers 2 (Agriculture), 3 (Livestock) and 4 (Marketing) and in Annex 1 of Working Paper 8 (Livelihoods). However these papers did not cover all potential sub-sectors, and some that were covered were only briefly described and reviewed. The papers also made no attempt to say in what parts of the state individual sub-sectors greatest potential had.

SUB-SECTOR SELECTION CRITERIA Criteria for sub-sector selection include:

Potential market demand

Potential to increase in rural incomes Assessment of potential market demand needs to take account of the following:

Size of potential markets either internal (within the block, district or State), or external markets in the rest of India and even abroad.

Competition from other sources of supply. This includes supplies from out-of-state to markets within the state, as well as other supplies to external markets.

Competiveness in a market needs to take account of the cost of transport from production areas in Uttarakhand to markets outside of the state. This varies considerably according to location within the state, and transport by mule and head-load, even over short distances, can be very expensive. At the same time high transport costs can make locally produced products more competitive in local markets than good transported in from outside – although the relatively small size of these local markets needs to be taken into account.

Potential to increase rural incomes depends on the following:

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Physical suitability of the area to produce the crop or other product – topography, soil, climate, water etc. Account should also be taken of another environmental factor - the risk of damage to crops by wild animals.

The current and potential number of producers (and other poor people participating in the value chain) will help determine if it will have a significant impact on incomes and poverty levels.

The potential for producers and other poor people to earn significant income by engaging in the value chain. This requires the production and other value chain activities to be profitable.

Potential for improvements to the value chain to increase returns for producers and other poor people. The objective of the project is to increase incomes, which will not come about by just operating an existing value chain. Changes and innovations are needed to improve returns. These may be technical and/or institutional, and at any stage of the value chain from input supply, through production to output marketing.

The advantages and disadvantages of potential sub-sectors should be summarised in a SWOT analysis matrix – showing the current strengths and weaknesses of the sub-sector in terms of its ability to generate income for poor people, and possible future opportunities and threats

PRIORITISATION OF SUB-SECTORS Once potential sub-sectors have been identified and their potential analysed, their overall attractiveness can be rated using a matrix showing potential market demand on one axis and potential to increase rural incomes on the other. Sub-sectors are placed in cells in this matrix, and greatest priority given to those with the highest potential market demand and greatest potential to increase rural incomes. The matrix below allows scores of 1 to 5 to be given for both market potential and potential to increase income, so adding the two scores together may produce an overall rating.

Table-2: Attractiveness Matrix

Potential market demand

Low High

1 2 3 4 5

Potential to increase rural incomes

Low

High

1

2

3

4

5

While some sub-sectors may be attractive over a considerable area, some may have a more localized appeal – the potential to increases rural incomes should take account of this, and give high ratings to sub-sectors that have a good potential to increase rural incomes other both large areas and within smaller localities. Similar consideration could be given to sub-sectors that have potential to increase incomes for a specific socio-economic group, such as landless people. The study should also identify some new sub-sectors that are not now widely produced in the state, but which could have potential, and should be tried out on a pilot scale. In identification of potential sub-sectors, account should also be taken of the experience of ULIPH and other programmes (especially the GIZ-supported RED project), and the degree to which the design of ILSP will allow for interventions in particular value chains. Some sub-sectors may be well covered by other programmes, so there is little logic in ILSP getting involved. In other sub-sectors the case for intervention may be strengthened through the possibility of convergence with other programmes and engagement with the private sector.

STUDY OUTPUTS The study shall be conducted in two steps and the identified outputs of each step are elaborated below:

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STEP I:

A report describing each sub-sector, evaluating its potential in terms of present status of production, market linkages, stakeholder mapping and possibilities for interventions based on scientific calculations and making recommendations for interventions based on the findings.

A SWOT analysis matrix of potential sub-sectors

Attractiveness matrix rating of potential sub-sectors.

A map showing the areas where the identified sub-sectors have good potential. The areas of potential for sub-sectors may well overlap, with some areas having potential for more than one sub-sector.

Identification of specific products and commodities which will form the basis of proposed interventions.

Identification of potential clusters and villages as per identified value chain. A business plan and detailed project report for each identified to be prepared.

Time line for Step I: As part of Step I the contracted agency will produce a draft report for review

by UGVS and IFAD within six to eight weeks of starting the survey. Based on the feedback

received the final report will be prepared. The report will include a brief writeup in Hindi explaining

the process of selection of identified sub sectors, value chains, shortlisted products and business

opportunities and plans. The draft findings and conclusions will be discussed with the project

before the report is finalised within a further 2 weeks.

STEP II:

Organise Stakeholder workshops at block and district level to finalise the identified clusters and sharing of proposed business plan of identified value chains. PRI members, line department representatives, NGOs to be invited and their inputs documented for incorporating into the final report.

The final report will be presented in the meeting of the Project Management Committee (PMC) of the project which is Chaired by the Secretary, Rural Development. If required by the PMC the presentation can also be made at the Project Steering Committee which is Chaired by the Chief Secretary.

Step II is expected to be completed within four weeks. On completion of Step II of the assignment the final report will be prepared and submitted to the project along with documentation.

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Annex-2.1.5: Option Menu under Food Security Improvement Plan (FSIP)

FSIP focus will be on food security enhancement related activities. They include: (i) supply and production of quality seeds (cereals, vegetables and pulses); (ii) soil fertility improvement; (iii) other on-farm activities such as vegetable cultivation; (iv) off-farm sectors such as poultry and goat rearing.

Input supplies:



Inputs subsidised/supported by project: Community contribution. CRPs of ULIPH


FSIP monitoring and reporting Services:

Panel of service providers for facilitating

The plans of VPGs will include mostly non-farm activities (small ruminant and poultry and drudgery

reduction activities. The menu of options for implementing FSIP is provided below.

1. Agriculture: The traditional cropping pattern and cropping calendar vary depending upon the

altitude, soil type and availability of irrigation. Traditional cropping pattern and cropping calendar

for three altitude zones (Valley Zone: 600-1200 metres, Hill Zone: 1200-1700 metres and

Mountain Zone: 1700-2100 metres) are provided in Working Paper 2 Agriculture). It is estimated

that about 20% of the cultivable land falls in Valley Zone, 50% in Hill Zone and the balance 30%

in Mountain Zone.

2. Key drivers for up-scaling farming include enhancing productivity and diversification. Valley

farmers have started the process of diversification by starting cultivation of vegetables (tomato/

cabbage/ capsicum/cauliflower/Beans) by replacing rice on irrigated land during April-September.

Some farmers have also replaced wheat with pea during November- April. This diversification

can be further expanded and in addition productivity of rain fed farming in the valleys can be

increased with improved seeds, fertilizers and cultivation practices. These activities can be part of

FSIP depending upon the preference of the farmers.

3. In the hills, three major cropping systems exist. They are: (i) rice based; (ii) millet based; and (iii)

potato based. Productivity of these cropping systems can be further improved by using improved

seeds and by improving soil fertility. Similarly, the mountain zone has two major cropping

systems: (i) millet based; and (ii) potato based. Based on altitude and aspect, the farmers in

valley take three crops. The farmers in the altitudinal range of 1200-1400 metres are able to take

2 crops whereas the farmers in altitudinal range of 1400-1700 meters take three crops in two

years. Productivity increase and diversification to increase the income levels of the farmers will be

one of the options for implementation of FSIP.

4. Fodder: lack of feed is a major constraint on cattle production, and cutting fodder for forest areas

is extremely laborious for women and damaging to trees. Improving fodder resources would help

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reduce workloads and protect the environment, as well as enabling increased milk production.

Fodder crops, such as Napier grass can be grown on farm land and on plots in Van Panchayat

forests. NGOs have been establishing groups that set up community fodder plots and sell fodder

to livestock keepers. Similar activities could be carried out by ILSP PGs.

5. Poultry: Kuroiler and broiler poultry remains a low cost activity and it is most suitable for

households without cultivable land. Poultry rearing will be one of the options in FSIP. The F NGO

facilitating the PGs/VPGs will have to take into account market potential before supporting a large

number of such units. In most hill areas, poultry will be able to service only the local demand. For

meat production, the minimum size of the poultry unit will be 50 birds. Support for 2nd cycle

chicks and about 8-10 weeks of feeding for the second cycle chicks will have to be built into the

investment cost. The F NGO will have to access technology for reducing the cost of feed by

utilizing locally available resources.

6. Goat Rearing: Goat rearing will be one of the better options for landless households who are the

poorest within the project area. These households will not be able to pursue other land based

livelihood options. Ability of beneficiaries to manage this activity which requires collection of

fodder from forest remains the key determinant for selection of households. The minimum herd

size of five goat kids will be supported with minimum support for goat pen construction.

7. Rabbits: The project with the support of its technical team will be able to identify innovative

livelihood options that require minimum labour and limited external inputs. Rabbit rearing is one

such intervention. Some of these options can be pursued as a part of FSIP.

8. Prevention of attack from wild animals:

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Annex-2.1.6: Option Menu under Agri-business Up-scaling Plan (AUP) The responsibility of preparing AUP rests with the LCs. The first step in AUP preparation will be

facilitation of LCs to identify the activities both off-farm and on-farm that hold potential for up-scaling

by F NGOs. This will be based on a value chain analysis of the selected commodity/crop to assess

the input supply, production services and output marketing related constraints and opportunities. Off-

season vegetables, potato, vegetable seeds, potato seeds are some of the agriculture sub-sectors

that offer potential for up-scaling in the hills of Uttarakhand. In addition, spices and fruit/nut trees also

offer potential for up-scaling.

Input supplies:


Facilitating bulk discounts from input suppliers for LCs:


Inputs subsidised/supported by project: Community contribution



Services:

Panel of service providers for facilitating business plans

The most important constraints are inadequate volume of production and resultant inability to

establish market linkages with wholesalers. This can only be addressed first by establishing contacts

with the wholesalers to identify crops and volumes required for making a market lot and finalising an

arrangement with the wholesalers for purchase of produce. Based on the potential of the area and

also availability of market linkages the following options can be considered for implementation of AUP.

Off-season Vegetables: There are opportunities for upscaling off-season vegetable cultivation to

meet growing demand from the markets in the plains and National Capital Region. Major vegetable

crops are now potatoes, tomato, peas, cabbage, French bean and capsicum. The cool temperate

climates of Uttarakhand offer opportunities for off-season vegetable production for sale in the markets

of the plains during the summer months, when prices are high. Specific opportunities in this sector

include:

Selling directly to more distant and out-of-state markets to increase returns to farmers.

This opportunity has been enhanced by the recent reform of the APMC Act which will

permit direct contract sales to buyers from outside of the state.

Improve market access infrastructure with new collection centres, footpaths and river

crossings.

Improve productivity of OSV crops through better seed, fertiliser, pest control and crop

management.

Extend cropping season with protected nurseries in polyhouses and polytunnels. This

would enable earlier crops to be sold at premium prices,

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Produce more exotic vegetables for niche (but expanding markets. These include

broccoli, Brussels sprout, red cabbage, baby corn, asparagus (perennial) and lettuce.

Berry fruits, such as strawberries, may also have potential.

Potato and Potato Seed Production: The potato is a major staple food in the higher hills. Summer-

grown Hill (Pahari) potatoes command a price premium in the markets of plain areas. However, there

is a severe shortage of quality (certified) seed potato varieties suited to the hills, necessitating imports

from Himachal Pradesh. Many farmers are forced to use their own seed or seed of inappropriate

varieties from the plains. The cool summer climate and disease-free environment of the high hills

(3,000m +), represent a competitive advantage for producing quality potato seed. There is opportunity

to upscale potato production and potato seed production in areas with potential for growing this crop.

This requires careful crop planning to achieve economies of scale required to reduce transaction

costs to reach the market.

Tree fruits: once established, tree crops need less labour and so are useful for households where

men have migrated to outside jobs. Mango, litchi and guava can be grown in the valleys. Citrus

(including Malta), apples, pears, peach, plum and cherry can be grown in the hills. The fruits grown in

Uttarakhand have seasonal and locational advantage as these crops mature at least three weeks

earlier than other temperate areas of the country i.e., Himachal Pradesh and Jammu and Kashmir.

There is potential to improve market returns by growing better quality fruit, and increasing yields by

using trees on better rootstock and with improved management.

Spices: Hills of Uttarakhand have the potential to grow spices such as garlic, turmeric, ginger, chilly

and coriander. These can be cultivated in hills up to 1500 metres altitude. Similarly, there is potential

to grow bay leaf trees, which has a huge market within India. Cultivation of spices is of particular

importance to farmers from areas with that register high incidence of destruction of crops by wild

animals. The spice crops are generally low volume and high value and hence the farmers are able to

transport small lots.

Dairy: Most households keep one or two buffaloes/cattle for milk, manure and draft power. .

Opportunities exist to improve the productivity of dairy animals by: (i) breed improvement (the project

will work with the Uttarakhand Livestock Development Board to provide to provide artificial

insemination services); (iii) feed resources can be significantly improved by introduction of perennial

forage species in the Van Panchayaths and intensification of terrace risers and bunds with legume-

grass species. There is also opportunity to increase forage base by promotion of soybean and pigeon

pea in the bunds of rice fields; (iv) NABARD offers a back-ended subsidy of about 30% for farmers

interested in buying dairy animals through bank loans. The LCs will be able to make use of this

scheme for buying improved animals; and (v) aggregation and collective marketing of milk and milk

products to consumers in hill communities.

Poultry: this is a suitable enterprise for poorer households. ULIPH and other programmes have been

promoting Kuroilers, but this initiative has had mixed results. ILSP will adopt a more flexible

approach, with emphasis on up-scaling to more commercial enterprises, and supply chains being

developed for chicks, medicines and feed. LCs could take a role in such input supply (paravets and

other individuals could also become input suppliers). ILSP will also be flexible in supporting various

production models – not just Kuroilers, but also broilers and other types of bird.

Medicinal and aromatic plants: as described in Working Paper 4, the potential for the cultivation of

medicinal plants is limited by illegal collection of wild plans and a opaque marketing chain for this

produce. However there is better potential for aromatic plants, with cultivation and distillation of plants

such as citronella, palmarosa, basil, camomile, Japanese mint, geranium, targets and Artemisia,

Lichen and herbs etc.

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Nuts: there is good potential for walnuts, and possibly pecan nuts, hazel nuts, chestnuts and

almonds. Nuts can grow well in the hills, resist wild animal damage, are not perishable and are a high

value/low bulk product that can stand the cost of transport from remote locations. There are good

markets for nuts in India and established export markets.

Other potential enterprises include flowers, organic produce, crops seeds, tourism, weaving, goats,

mushrooms and bees. .

Rural Non-farm Sector:

Ecotourism/Village tourism:

The second of AUP preparation step will be to identify the infrastructural needs of the LC members to

enhance availability of water. The following activities can be considered for preparation of the water

related infrastructure for the community:

Farm Ponds: Water reservoirs are generally constructed for storing water. This water is used for

washing, irrigation, drinking, etc. Rainfall and runoff are the main sources of water. This simple

technique is very common in the hills where access to water is limited.

Farmer Managed Diversion Channels: Farmers construct diversion channels along the contour

in order to intercept surface runoff as well as to divert the stream flow to the irrigation channels.

The diversions are constructed using local materials such as boulders, logs, branches and

bushes. The channels are lined with earth. Farmers contribute in kind, cash or labour to maintain

such systems. Farmer groups are established to manage distribution of water. Inadequate

irrigation is the main reason for the inability of hill farmers to enhance crop intensity and change

cropping pattern. Improvement to the traditional channels has a big potential in the hills of

Uttarakhand.

Micro-irrigation systems: drip and sprinkler systems make the best use of limited water

supplies, and are an economic way of providing water to high value cash crops.

Lift irrigation – the use of pumps and water rams can get water to land that is otherwise not

covered by irrigation. LCs implementing such schemes will need to levy user fees to cover

operating costs.

Other soil and water conservation efforts: Several indigenous technologies have been

developed by the hill people to conserve soil and water resources. These simple cost effective

and user friendly technologies could be adopted under the project. An important step in this

direction is to motivate people and convince them to make concerted efforts in the promoting and

improving such technologies.

Simple techniques such as planting nitrogen fixing trees or shrubs along the contour lines,

planting grass species in the vulnerable areas, planting cover crops rather than the tall trees,

contour tillage/planting, rainwater harvesting, can also be applied for soil and water conservation.

In severely affected areas, where simple vegetative measures may not be sufficient, physical

structures such as soil trap, check dam, dry masonry, gabion retaining walls, contour bunding,

river bank erosion control works, land consolidation/terracing, cross drainage structures, storage

dams, water distribution systems, etc., could be constructed with the active participation of the

communities.

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Other cost effective water harvesting measures such as rehabilitating irrigation schemes, water

storage tanks for supplementary irrigation hydraulic rams/lift irrigation and micro-irrigation can be

considered as a part of the plan.

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Chapter-2.2: MARKET ACCESS

A. Objective and Purpose This sub-component will aim to increase access for hill producers to wider markets, and help them

take advantage of the climatic advantages offered by Uttarakhand‟s hill regions

B. Key Success Factors Appropriate identification and selection of sites for last-mile infrastructure including assembly

markets and their implementation

Building the capacity of the producers and farmers effectively

Providing reliable market-linkages and buyer and seller contact

Better market information

C. Description of Activities Specific initiatives to be supported by ILSP will include:

Improve market access infrastructure, so reducing transport cost and time – which in turn will

reduce wastage. This can also encourage more buyers to enter hill areas so providing more

completion in the market.

Make more direct linkages with markets outside of the state to enable produce to pass

through fewer hands and so increase the producers‟ share of the final consumer price.

Enter into contract marketing arrangements for direct sales to retail channels and processors.

Process or part-process produce and add value at the producer end.

Adjust production calendar and methods to align supply with periods of highest prices and to

improve quality and hence prices.

Supply growing local markets, including those linked to the tourist trade.

Sub-sector development will use a value chain approach to focus on produce where the state has a

comparative advantage. Opportunities exist to: (i) increase the productivity and efficiency of

production to both increase the income of farmers and also provide the scale needed to meet the

needs of markets; and (ii) improve marketing systems and access new markets with existing or new

products. More details are in Working Paper 4.

The following specific market opportunities have been identified:

Off-Season Vegetables: selling directly to more distant and out-of-state markets can

increase returns to farmers. This opportunity has been enhanced by the recent reform of

the APMC Act.

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Spices: production could be scaled up with marketing linkages to major private sector spice

processing and marketing companies. There are also niche markets for locally processed

and branded spices, capitalising on Uttarakhand‟s clean and organic image.

Tree fruits: the price of fruit can be greatly increased by switching to production of better

quality table fruit. There may also be opportunities to expand the processing of low quality

fruit, and produce sub-tropical fruits (litchi and mango) in valleys for off-season markets.

Tree nuts: there is an opportunity to scale-up production of walnut for domestic and export

markets. There may also be potential for hazel, pecan and other nuts.

Dairying: the producer price of milk can be significantly increased by local aggregation and

then sale to local consumers, and by production of a range of milk products.

Aromatic Plants have potential for cultivation and local processing into products such as

essential oils.

Other potential products: seeds for locally produced crops, mushrooms, honey, handicrafts

(especially weaving), and fibres (especially nettle fibre). There is also potential to produce

poultry and goats for local markets.

The first step in a value chain approach is to make a study of the target sub-sector (which may be a

single product or group of products). Guidelines for value chain analysis are in Annex-2.2.1. A

strategy for Market Access as proposed by UGVS is attached in Annex-2.2.2

Market infrastructure: the project will fund development of the physical infrastructure of markets. At

the moment the 20 wholesale markets (mandis) in the state are located in the plains or on the edge of

the hills. Many hill producers are located at a long distance from these markets. The project will fund

the establishment of 12 assembly markets (major collection centres): one in each of the nine hill

districts, with three more in high potential locations. Establishment of such markets will take

advantage of the new APMC Act which allows private sector involvement in construction and

management of such markets – previously all produce that was sold outside of the state had to pass

through the 20 official mandis where a number of charges were levied.

Opening new market locations close to production areas will give opportunities to traders to come into

the hills. It is recommended that 12 new marketing points be established as soon as possible, though

the exact format for these new marketing points should be flexible. Discussions suggest that it may be

best to first establish them as informal collection centres and only later possibly convert them to

formal mandis. This approach will allow the market system to adapt to recent changes in the law

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concerning agricultural marketing - in particular it needs to be seen how much produce will now by-

pass the official mandis and whether private mandis will be established.

The project will also have funds to support APMC reform and other policy initiatives through studies of

the new mandi system together with workshops to gather the feedback and opinions of market actors.

Other options for market infrastructure include supporting the establishment of farmers‟ markets

based on the popular rythu concept. Provision has been made for 20 storage-cum-collection points,

each servicing a few villages where produce can be stored for a few days before moving it to a road

head or higher level market.

ILSP will also improve „last mile‟ access to markets. This will help increase the area of land from

which production can economically reach the market, and will help producers in more remote areas to

be competitively connected to markets. Even a distance of one km from the road head can change

the fate of growers, and 41% of villages in hill districts are more than this far from a metalled road.

In addition, river crossing ropeway trolleys have been included in the project budget. These will be

backed with appropriate institutional arrangements to manage their continued operations.

The project will give consideration to supporting a cell-phone query based market information system

as a means to deliver relevant and timely information to farmers. This information could include

logistical movement updates, stocks available/expected at various collection points, price data, and

input availability. Should such a phone-based system be found not to be feasible, a web based

system of communication accessible at the LC level will help implementers be better informed about

needed efforts to best manage the market system.

Capacity building will be focused on changing attitudes to dealing with markets. Capacity building

efforts will not only aim to better equip farmers but also improve the ability of NGO staff and others

involved with execution of market related functions. Exposure visits, including experience sharing

with successful farmers, would help open the eyes of producers to real life situations. It also will be

useful to invite external resource persons to view ILSP efforts, share experiences, and offer “out of the

box” suggestions. Beyond improving skill sets of community members, there is a need to invest in

management capability. Depending on needs, the following training programmes may be scheduled:

Farmers – importance of cleaning, sorting, and grading; managing money and keeping

accounts, improving negotiation skills, calculating net return, etc.

NGO Staff – understanding markets, forecasting trends, planning efficient logistics,

managing stocks and payments

Steering Committee members and senior PMU staff – workings of markets, need to

understand and adapt to market needs, tuning project needs to market needs.

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Capacity building will be supported by the proposed linkage with a high level business school or

consulting company – which would provide the business school or consulting company with real life

examples of community businesses for their own training and research, while providing support that

will develop the capacity of project staff, NGOs, Livelihood Collectives and other enterprises. .

A cell-phone based market information system could deliver relevant and timely information to

farmers. Apart from market price data, it could also deliver logistical movement updates, stocks

available/expected at various collection points, and input availability within the ILSP network. While

services such as Reuters Market Light8 (RML) and IKSP are available, a customised application will

help aggregate movement data within the project points, thus contributing to improved internal co-

ordination. Should this not be found feasible to pursue, a web based system of communication

accessible at the LC level will help implementers be better informed to manage the market system.

D. Outcome Indicators

More households use new marketing channels, and other new opportunities and technologies

Increase of producers‟ share of retail price by at least 10%.

Ccapacity building programs for market linkage conducted.

Buyer-seller meets organised.

MoUs with market agencies executed

Enterprises established in identified sectors

Market information pilot carried and learning disseminated

8 ILSP may benefit from linking with the support to be provided by the GIZ-funded RED project for the application

of RML in the state. RML is also being piloted by the current ULIPH in partnership with the Department of Telecommunications.

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Annex-2.2.1 Guidelines for Value Chain Studies

INTRODUCTION This note aims to describe the elements that go into value chain analysis study, and then identifies some specific sub-sectors where such studies would be useful in the early stages of ILSP. The description of what is required for a value chain study can be included in the ToR for these studies, so agencies undertaking this work for ILSP are quite clear on what is needed.

COMPONENTS OF A VALUE CHAIN The value chain describes the full range of activities which are required to bring a product or service through the different phases of production (involving a combination of physical transformation and the input of various producer services) and delivery to final consumers. Figure 1 illustrates a typical value chain for a fresh fruit or vegetable commodity. This shows that production is only one of a number of links, each one of which adds value. The arrows with solid lines in Figure 1 represent flows of physical materials – production inputs and the commodity produced by farmers using those inputs. Arrows with the dashed lines show services – such as bank loans, advice from the Department of Horticulture, transport of the crop to the market and on to consumers. Market information is also shown as a dashed line flowing back to farmers from their immediate customers. Figure 1 shows that there can be a number of parallel flows in a value chain. Different types of producers of the commodity (in this case commercial farmers and subsistence-based farmers, but they can also be defined by location), can be linked to different value chain participants or “actors” – input suppliers, service providers and marketing agents. There may also be parallel flows on the input supply and marketing sections, with material moving though different chains. In the traditional selling system farmers produce commodities that are "pushed" into the marketplace. Farmers are isolated from the end-consumer and have little control over input costs or of the funds received for their goods. In a value chain marketing system, farmers are aware of the needs of consumers, and work closely with suppliers and processors to produce the specific goods that consumers demand. Similarly, through flows of information and products, consumers are linked to farmers. Under this approach, and through continuous innovation, the returns to farmers can be increased and livelihoods enhanced. Rather than focusing profits on one or two links, players at all levels of the value chain can benefit.

VALUE CHAIN ANALYSIS Value chain analysis is a useful tool in planning how to improve returns to producers. By examining the whole process of input-production-marketing, constraints and bottlenecks can be identified and interventions designed to overcome these problems. Value chain analysis involves the following steps:

a. Selecting the sector or sub-sector for analysis. Within agriculture a sector can be defined as a major group of crops – such as vegetables or cereals, and a sub-sector as a single crop (e.g. rice) or sub-group of similar crops (such as pulses). Value chain analysis would normally be focused on a sub-sector, or even a single crop within a sub-sector. Criteria for selection of a sub-sector/crop for analysis include: (i) current or potential importance for the livelihood of the target group; (ii) potential for demand growth; (iii) ability to compete in the market; (iv) opportunity to improve returns to producers; and (v) potential synergy with other programmes.

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Figure 1: Typical Value Chain for Fresh Fruit and Vegetables

b. Mapping the value chain – drawing up a diagram similar to that in Figure 1 which identifies the value chain actors and flow of materials and services through the chain. Inevitably this will require a degree of simplification as every flow and participant cannot be included. However significant flows and actors should be included. It is a mistake to try and draw up value chains that encompass a whole group of products or an entire sector as different products will involve different processes.

Consumer

Traditional retail market

Modern retail shops

Urban wholesale market

Rural assembly market (wholesale)

Commercial farmer

Packing

material supplier

(boxes, crates)

Subsistence-based farmer

Local aggregator

Packaging

material supplier (bags, baskets)

Input supply shops (seed, pesticide)

Public sector fertiliser supplier

Fertiliser dealer

Private sector vegetable seed companies

Agrochemical Company

Equipment supplier

Bank loans

Dept Horticulture advice

Transporter

Transporter

Transporter

Market information

Market information

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c. The next step is to approximately quantify the volume of production and estimate the shares in this that are produced by different types of farmers and that flow through different streams in the marketing chain. Further details may be added if these flows vary through the season. It may also be possible to estimate the numbers of the various actors in the chain – such as number of input dealers, commercial farmers, subsistent farmers, wholesale buyers etc.

d. The third stage is to gather information on the characteristics of the main actors in the value

chain, and to identify the extent to which they play a critical role. A checklist for this information is shown in Table 1.

e. The fourth stage is to identify constraints that depress returns to producers and opportunities

to increase returns.

f. The fifth and final stage is to draw up a strategy to implement interventions that will capitalise on the identified opportunities.

Table 1 lists, in each column, information that may be collected from actors (participants) in the value chain. No all this information will be needed for every value chain that is investigated. If there are clear problems at the marketing stage, it may not be necessary to investigate input supply actors in detail. However problems at one stage can often have implications for other stages. For example, low prices for a fresh vegetable may be related to timing of harvest, with crops coming to the market at a time of over-supply. Improving timing, quality (such as by changing variety or production methods), grading, cleaning, packing and drying are all things that could be done at the producer level top increase prices. Such production level interventions may require inputs, so the supply chain becomes important.

Table 1: Checklists of information for value chain analysis

Input supply actors Production actors Market actors

Scale of operation Differentiation of different groups of producers

Scale of operation How many enterprises involved How many enterprises involved Sources of supply Scale of operation – both overall farm

size and area of the crop under study

Who buy from, who sell to

Trends and changes over time Trends and changes over time Prices and profit margins Sources of market information Finance Trends and changes over time Packaging and transport costs

Problems and constraints Where grown - type of land used Prices, costs and profit margins Policy and legal framework When grow – seasonality How are prices set Opportunities for improvement Production method – technology How is volume determined

Yields and yield variability Market fees and taxes Sources of production advice Commission agents Sources of market information Seasonality – volume and prices

Prices through the season Losses (volume and grade) Where sell, to whom, and why? Finance: loans, trade credit Risk and risk mitigation Problems and constraints

Production costs Policy and legal framework Finance (access and costs) Barriers to entry into the business Gross margins analysis Opportunities for improvement

Comparison with other crops Constraints and problems Opportunities for improvement

In investigating sources of information (technical, market), it is important to appreciate that information can come from a wide range of sources, including mass media and other producers. Transporters can have a role beyond simply transport, and act as collection agents on behalf of wholesalers. Traders in wholesale markets may act as commission agents, selling produce in return for a commission, but not actually taking ownership of the product. In the market chain, selling prices at each stage should be investigated, along with the costs incurred by traders (including taxes and market fees), and losses in volume. Factors that influence the decision-making for each actor should be identified. The share of the sale value of the product to the consumer that accrues to the farmer can be calculated from selling prices, but this needs to take account of losses or other shrinkage in volume, such as that caused as the product dries. Table 2 illustrates a calculation of the share of the value of a product that accrues to the farmer. In terms of

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the product price the farmer on received one third of the consumer price (Rs15/kg, out of Rs45/kg), but when total loss in volume of 35% is taken into account, farmers get a little more than half of the total amount paid by consumers for their production. Another form of loss in the marketing system is a loss of quality as products pass through the marketing chain. Although a batch of produce entering the marketing chain at the farm gate may be 80% grade A and 20% grade B, when it is sold by a retailer, only 60% may be grade A and 40% grade B. This needs to be taken into account in calculating the average prices at each stage in the market chain.

Table 2: Calculation of farmers‟ share of consumer expenditure

Details Product price Rs/kg Volume Total value

Unit price

producer share

1 Net of loss Value2 producer

share1

Farmer 15 100% 100 1500 100%

Losses 10%

Wholesale 20 75% 90 1800 83%

Losses 10%

Retail 30 50% 81 2430 62%

Losses 20%

Consumer 45 33% 65 2916 51%

1 farmers‟ price or value as % of wholesale/retail/consumer price or value

2 unit price x volume

On the marketing side, a value chain analysis should show the prices that apply at each transaction stage between the farmer and consumer, and the costs that are incurred at each step in the market chain. These costs relative to margins between buying and selling prices at each step (and taking account of losses), will help show if intermediaries are taking excessive profits, in which case there is a clear opportunities to improve producer returns through using a different marketing channel. But even if intermediaries are not making excessive margins, there may still be an opportunity for improving producer prices if the marketing system can become more efficient, such as by reducing transport costs or by reducing the number of steps needed for the product to reach the consumer. The process of setting prices and measuring quantities should be investigated. In some market systems, once farmers have dispatched their produce to the market, they have to accept the price offered and the buyer‟s estimate of the volume that the farmer is sold, with any material considered as being below grade rejected. In some systems there may be charges for weighing and even compulsory deductions in weight for assumed losses through the market chain – in which case the calculation of the share of value received by farmers should be adjusted from that shown in Table 2. Sources of finance can have an important impact on a value chain. Lack of finance can prevent optimal use of inputs by farmers, constrain their adoption of technologies and prevent them holding non-perishable crops in store until prices rise. Farmers may become tied to sell their crops to buyers who have provided them with credit – and the cost of this credit can be a lower price they receive for their production. Such credit can also be in the form of inputs procured by the buyer and supplied to farmers – so buyers become involved in decisions about what inputs are used. There are also credit relationships within the input supply and output marketing chains, with intermediaries receiving credit from suppliers or buyers in the supply chain. Producers may also be tied in a similar way to suppliers of inputs who have provided these inputs on credit terms.

OPPORTUNITIES FOR INTERVENTIONS IN VALUE CHAINS Opportunities for improvement in returns to producers looking at what the best farmers now achieve, and what is done in other locations, or can come from research agencies – provided the research has been field-tested under farmer-managed conditions.

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Examples potential value chain interventions are shown in Table 3. This aim to benefit producers through: (i) expanding production and/or reducing the unit of production. This can be done by increasing area or yield, and/or reducing production costs; and (ii) increasing prices paid to farmers. The first group of interventions primarily involves production interventions, but may also require interventions in the input supply chain to make inputs available, or to reduce the cost of inputs. The other group of interventions aims to increase prices received by farmers, and include interventions in marketing beyond the farm gate. These may require changes to marketing arrangements – such as production on contract for a buyer. However other interventions that aim to increase prices paid to producers require interventions on the farm – such as improving quality, and grading, drying before sale – and in turn these interventions may require improvements to input supply. The interventions in Table 3 primarily apply to the crop and horticultural sectors. However similar interventions could be applied in the livestock sector – such as breed improvement, better or lower cost animal nutrition, disease control, and aggregation/cooling/processing of milk to access the market at a higher wholesale/retail level.

Table 3: Value chain interventions

Benefit for producers Intervention Notes

Expand production and /or reduce unit cost of production. This can be done by increasing area/yield, and/or reducing production costs.

Change in variety Seeds, grafted trees etc.

Improve irrigation Reduce moisture stress, more efficient water use Soil fertility management Additional fertiliser, more efficient use of fertiliser Cultivation / mechanisation Reduce labour cost, more efficient machinery use Pest control Effective control increases yield, reduce cost through IPM Other technologies Protection from weather, staking, weed control More efficient use of land Catch crop, intercropping (possible increase in cost)

Use land that is not now in agricultural use. Reduce unit cost of inputs Bulk purchasing1, may also need credit

Increase unit price paid to farmer

Improve quality Variety, production methods (such as irrigation)

Harvest when seasonal prices rise May require change of production method Store until seasonal prices rise1

May have to allow for a loss of volume and extra costs Grade/sort before sale Clean, dry before sale Sell through a different outlet Access market further up the market chain1. May need to pack and

brand products1 if sell at retail level Avoid market taxes and charges Provide finance for producers Results in no longer being tied a buyer/supplier who has provided

credit. Reduce losses in marketing chain Faster transport1, packaging1, drying/cooling, less handling Reduce transport costs Larger volumes1, more direct routes1, less handling Processing1 Low cost raw material is needed to be competitive

May provide a better market/price for low grade produce Intermediate processing (e.g. drying) and storage may be needed to enable the processing plant to run for an economically long period in a year.

Branding1 Build an image to obtain premium price from consumers.

1 interventions that may involve up-scaling – which may mean aggregation of production from small farmers.

Points of entry for value change interventions (i.e. means of their implementation) include:

a. Establishment of producer organisations – to enable aggregation of production, create scale for supply of inputs, and help deliver changes in production methods and marketing strategies in an efficient manner.

b. Producer organisations can also be based around input supply – such as seed production groups, fruit tree nurseries, animal/poultry breeding, animal health services, machinery contractors. In some cases members of such groups may not themselves be producers (e.g. para-vets) but would be from the same target group. Such groups provide inputs or other production services, and so become sources of advice to producers.

c. Working through a major private sector company (or group of companies through a trade association or joint venture) acting on the demand side (retail or wholesale buyer, processor), or input supply (seed, planting material). This company would then organise farmers with which it would link its services. This can also be integrated with the provision of finance.

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What distinguishes value chain interventions from other development initiatives is that they do not just focus on a single element of the system – such as training farmers in new technologies. Although adopting a new technology may help increase farm income, farmers will be more motivated to adopt if this can be linked with higher producer prices, while they may need new inputs to be available if they are to use a new production method.

VALUE CHAIN STUDIES FOR ILSP ILSP would benefit from commissioning a number of value chain studies at the start of its implementation. These include:

a. Tree nuts – this sector has been identified as having considerable potential, but has received relatively little development attention in Uttarakhand. A study is needed to describe the value chains that exist in this sector, identify opportunities to expand production for specific market outlets, and outline interventions to increase production and drive down costs.

b. Tree fruits – although this sector appears to cover as large an area of land as off-season vegetables (OSV), it seems to not have had such the significant impact, and the sector is said to be performing badly. For citrus ILSP is planning an action-research pilot project, and a number of separate value chain studies could be useful for other sub-sectors, such as apples and pears; peaches, plums and apricots; and sub-tropical fruits in hill valleys. Such studies would aim to come up with specific opportunities for interventions in input supply, production and marketing.

c. Potatoes: ILSP design studies have identified problems with seed supply, disease and low yields. Potatoes are a major OSV, and a value chain study would provide a better understanding of the marketing of this crop, production constraints and opportunities for intervention.

d. Aromatic plants are a niche product with much better prospects than medicinal plants. A value chain study could provide an overview of how this sub-sector operates, and propose specific interventions.

e. Spices are already well established as a crop for many hill farmers. A value chain study could aim to identify interventions for significant up-scaling, involving accessing larger markets outside of the state.

Sufficient seems to be known about the other potential sub-sectors within OSV, and in milk and poultry, to be able to design (or at least pilot in the case of poultry) interventions without a full value chain analysis. However there will be other potential and niche sub-sectors where value chain studies will be useful.

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Annex-2.2.2 Strategy for Market Access

INTRODUCTION

Now-a-days, marketing systems are undergoing rapid transformation. Traditional marketing channels with unplanned sales are now being replaced by coordinated links between farmers, processors, retailers and others links in the value chains. As incomes increase, food consumption patterns are changing, with a greater emphasis on meat, dairy products and fruits and vegetables. This is opening new avenues for the producers to have direct access to the market and is putting more challenges before the organizations and livelihood programs to coordinate between the producers, traders, processors and retailers. Further initiative have been taken by various programs like ULIPH wherein producers are organized into groups and further cooperatives to increase their negotiation power and have direct penetration into the market. Projects like ULIPH and ILSP can also act as a catalyst for the producers to work more closely with the private market players that would lead to a win win situation for both. Another model could be of larger ventures, such as contract farming, wherein many private companies can provide inputs to producers on credit. Project may make credit arrangements through existing financial institutions, where companies are unwilling to do so. MARKET ACCESS

Types of linkage between the producer and the market can be established in various ways depending upon the situation and the resources available. Some of the categories are described as below.

1.1 Producer to domestic traders; 1.2 Linkages through cooperatives; 1.3 Producer to processors; 1.4 Producer groups to trader or retailer or processor; 1.5 Contract farming.

These categories do not represent the whole range of market opportunities available to producers but some that may have scope in context of Uttarakhand. Purchases by government institutions, such as the military, hospitals, school-lunch program, can also be an important market that provides direct-sale opportunities for rural producers. Furthermore, the above categories are clearly not always mutually exclusive. Exporters can also be processors, Processors can also run contract farming operations, and Retailers may buy from producers through traders. In addition to these, spot markets such as wholesale markets (mandies), commodity exchanges and auctions the types of market access for rural produces. (i) Producer to domestic trader

In Uttarakhand and many other states, traders have traditionally interacted with producers on a one-to-one basis for either buying from them at local markets or at the farm gate. This many times involves timely supply of inputs and easy debt for personal needs by the traders and recovery is done at the time when produce is ready. Purchases at local markets can be relatively efficient if they enable the trader to buy sufficient quantity to achieve economies of scale with subsequent transport, which is usually the main marketing cost. On the other hand, purchases at village level can often be extremely inefficient and this can contribute to the high marketing costs that often lead to allegations of exploitation of producers by traders. Such costs can be reduced if farmers can work together to assemble all their products at one location, for purchase by one or more traders. However, an arrangement such as this rarely develops without an external catalyst. It should not be forgotten that many traders experience significant cash flow constraints and while they may well have considered the idea of working more closely with farmers, the time taken to discuss and make arrangements with them is often a transaction cost they cannot absorb.

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(ii) Linkages through cooperatives

Such arrangements are experimented and experienced under ULIPH at several locations for different commodities and so far have proven a good arrangement in the context of Uttarakhand. The cooperatives are self reliant cooperatives having complete governance by the producers themselves. Aggregation of produces at one location reduces the transportation and attracts buyers. Such arrangement also increases the negotiation power of the producers. Such cooperatives if plan their business efficiently, may eliminate the role of local traders completely by not only facilitating the marketing but also meeting the input and debt need of the producers in time. Under ULIPH we have successful cases of cooperatives doing collective marketing of peas in Uttarkashi, collective marketing of milk in Chamoli which will be used as reference. Access to finance by the cooperatives is one of the key aspects that need attention at the time of commodity aggregation and storage. (iii) Producer to processor

The produce that is perishable may be directly supplied to the processor. A list of all such processing centers needs to be prepared and their month wise need to be assessed. Production of such produce is to be planned in advance. One of the major challenges that processors may face is that investment in buildings and equipment necessitates full utilization of that capacity. Processing is therefore not always viable for crops that have a limited growing season, unless they can be stored for a considerable time. (iv) Producer group to trader or retailer or processor

One of the key learning of ULIPH is that in context of hills like Uttarakhand, it would not be feasible to get into scattered production and thus cluster based approach was conceived and implemented for prominent value chain. This has led to make the activity more viable for markets. Similar strategy would be adopted under ILSP and PGs and VPGs would be facilitated to take up activities in cluster approach. From among the PGs and VPGs, some groups may focus primarily on marketing and thus would act as marketing groups. This would eliminate the dependency of these groups on any other external source for market access.

CONTRACT FARMING

As a form of agricultural production contract farming has been in practice for many years in different parts of the country. There are many advantages with this mode of production for companies. Linking with small farmers enables them to overcome land constraints that would be present if they attempted to produce everything themselves. It is more efficient than plantation agriculture and is more politically acceptable. The other arrangements have ever-present risk, for many crops, of extra-contractual marketing by farmers. There are also complications associated with ensuring that production is to the required standard, and in organizing the supply of inputs to farmers and the collection of outputs. Project may help facilitate such arrangements by organizing farmer groups to receive inputs and collect outputs for supply to the companies in context of the APMC act passed by the Government of Uttarakhand. MARKET INFORMATION SYSTEM

Market information is one of the key ingredients of the success of any project. Timely information and analysis of market trends helps to take appropriate decision about the selection of produce, manage timely supply of products in the appropriate market to fetch better prices. ULIPH has done pilot for SMS based market information system for selected commodities and this has helped the cooperatives to take appropriate decisions at the right time. Similar efforts would be continued under ILSP. Apart from this, district websites would reflect regular update on market prices for selected commodities and its availability in there region. INFRASTRUCTURE

One of the major bottlenecks observed in market access of that of proper storage of produce. Basic infrastructure support of a collection and storage center would be addressed under ILSP at all the

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aggregation points. These would be complemented with suitable storage material, sorting, grading and packaging techniques. Capacity building of local resources to run these centers would be another area to be addressed by the project. Cold storage and chilling plants which are backbones for fetching better prices for many commodities are not available anywhere in hills. Project may facilitate setting up of 1-2 such units at prominent locations to serve the producers. Government would play a vital role in setting up such infrastructure. Convergence from various government departments to making the land/ building/ funds available would be yet another focus area. Government role would also be important in providing good feeder roads, reliable power and water supplies which are vital for such interventions.

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Chapter-2.3: INNOVATIONS AND MARKET LINKAGES

A. Objective and Purpose Key objective of this sub-component is testing and dissemination of innovative technologies and

approaches to improving food security, livelihoods and access to markets


Support and assistance of reputed R&D institutes

Favourable response from the growers and farmers

Selection of appropriate technologies that are location-specific and potential for upsacling

Availability of adequate funds in the hands of the implementing agencies

Effective mechanism for on-the-site evaluation of results and upscaling them

C. Description of Activities A number of research institutions in Uttarakhand and other Himalayan States have developed

improved seeds and other technologies for the benefit of hill farmers. However these organizations

are unable to expand the outreach of tested research outputs due to the lack of linkages with the

community organizations.

ILSP will have, via its partner NGOs, the field staff needed to extend useful technologies. Annex

has specific proposals for ILSP to work with VPKAS, a research institution of Indian Council of

Agricultural Research, G B Pant University of Agriculture and Technology (GBPUAT) and Citrus

Action Research with the support of HARC to test and disseminate technologies appropriate to the

needs of hill farmers.

This work could include: (i) testing, with ILSP PGs, improved varieties of crops; (ii) investigation of

soil fertility issues and testing the use of mineral fertilisers; (iii) trials of new production methods,

such as conservation farming; (iv) studies and testing vermicompost and other bio-fertilisers; (v)

demonstration of methods for control of white grubs; (vi) testing of cultivation of Napier grass;

and (vii) testing/demonstration of use of greenhouses to support vegetable production.

There is an opportunity to pilot an intervention that will provide sustained access to forest based

livelihoods for the poorest households. It will be achieved through assigning usufruct (user) rights

for plots of degraded community forest to groups of targeted poor households and facilitating the

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members of the groups to develop the assigned degraded forest plot. This innovation sub-project

could be implemented by a contracted NGO in close coordination with the Forest Department.

The PIM includes a proposal for a small action research sub-project in citrus production to be

implemented by HARC, an NGO, in partnership with a specialised citrus research agency.

There is also a need for action research in the livestock sector, which could include development of

an improved model for poultry production in the hills. Another area for action research and studies

is marketing and enterprises in the non-farm sector. This could include working with the Khadi

and Village Industries Board, Bamboo and Fibre Development Board and other agencies who are

developing interventions for off-farm enterprises at the community level.

The above activities and other emerging innovative ideas will be funded by the project. The

funding will be based on a proposal submitted by the interested organizations appraised and

approved by UGVS. Other opportunities for innovation will come from linking with IFAD grant-

funded projects – in particular the dairy project now being agreed with ILRI (see main report).

D. Key Roles of Partner Agencies Partner agencies would also

(i) organise field days, visits and other events to disseminate successful

interventions;

(ii) train project staff and leaders of project groups in technologies and

approaches; and

(iii) monitor the outcome of the initiative


Number of new models on market linkages and technical support developed and

disseminated as part of project interventions.

MoUs executed with partner agencies for implementation of the innovation and market linkage programme

Identified innovations tested, documented & recommendations shared with stakeholders for

upscaling.

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Annex-2.3.1: Proposal for a Citrus Action Research Programme

INTRODUCTION The diverse climatic conditions of Uttaranchal promote the production of various tropical as well as temperate fruits. Horticulture can become the cash cow for the state if proper measures are taken in proper direction. Malta (Citrus sinensis), a kind of orange is grown in Uttarakhand mainly in districts of Chamoli, Champawat, Rudraprayag, Bageshwar, Pauri, Tehri, Almora. Around 20000 poor and marginal farming families in Chamoli are involved in Malta cultivation and its trading activities alone. Malta is grown at a height of 2000 ft. to 6000 ft. The volume of Malta available in Chamoli district is about 1500 metric tons. Since last 30 years, different development agencies have been trying its best for promoting better cultivation and marketing of Citrus in the region. Despite, Malta cultivators are not getting optimum price for their product due to unavailability of quality/variety of planting material and lack of knowledge of package of practices. As a result, the yield is very low (only 4.85 tons per hectare, which is much lower than citrus in other states) and also the product could not make a niche in the market. Therefore the poor Malta cultivators of the area have started destroying Malta trees. Approximately 20-25% of Malta trees have already been cut down by the farmers of the area and as a result, once grown Citrus on large scale in the state is now among the list of „Other Fruits‟ We feel, it‟s a high time that nurseries must be expeditiously established to ensure timely and quality availability planting material supplies to the farmers. This can be ensured by developing high tech nursery where there will be large-scale multiplication of planting material as vegetative propagate. The initial planting material can come from the NRCC, Nagpur and PAU while horticultural farms can be engaged in multiplication of sapling production. A meeting was organized with officials of Punjab Agriculture University (PAU), National Research Citrus Centre (NRCC), Nagpur and Department of Horticulture, Government of Uttarakhand. The main points of discussion with Punjab Agriculture University (PAU) and National Research Citrus Centre (NRCC)

Technical guidance and techniques will be provided by PAU, NRCC, Department of

Horticulture, Government of Uttarakhand for citrus production.

Field visits will be organized by the scientists for providing technical knowledge for production.

Quality planting materials will be provided by PAU and NRCC.

Technical guidance will be provided by PAU and NRCC for developing model citrus nurseries.

Availability of quality planting material is of utmost importance in citrus cultivation. Citrus plants are very sensitive to various biotic and abiotic stresses. Therefore selection of an ideal rootstock is a continuing challenge for the citrus industry of India. Currently used rootstocks viz. rough lemon and Rangpur lime have gone through a lot of variation over the last five decades. Therefore ideal selections developed from the conventional rootstocks by National Research Centre for Citrus (NRCC), Nagpur and at other places under State Agriculture Universities may be obtained for propagating quality planting material. For budwood selection, disease free mother plants developed from the elite progeny of known pedigree through shoot tip grafting method available at NRCC, Nagpur may only be used. The proposed action research programme would be located in Chamoli district, concentration of citrus fruit trees. Main emphasis of programme is;

Package of practice for specific crops in specific regions

Development of dense horticulture

Identifying if rootstocks good for hill horticulture

Integrated Nutrient Management (through organic Farming)

Protected cultivation through use of plastic/poly house.

STG techniques to enhance the propagation practices

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Post harvest management of produce. GOAL OF THE PROPOSAL

The purpose of the Proposal is to Ensuring livelihood promotion opportunities through development of

quality planting material & Orchard Management.

IMPLEMENTATION STRATEGY

In order to achieve the objective various activities are to be ascertained before achieving the targeted

Success. A state of art plant model nursery will be established in Chamoli district.

The programme will be implemented by UGVS & HARC in close collaboration with and technical support of Horticulture Department, Government of Uttarakhand and specialised citrus research institutes, such as National Research Centre for Citrus (NRCC) & Punjab Agriculture University (PAU).

A two phased implementation strategy will be followed to get desired results of the proposed project. The first phase will be focused on developing model nursery for preparing quality planting material. For the purpose the rootstock will be procured form National Research Centre for Citrus & Punjab Agriculture University. After the successful seedling production the plants will be distributed to the targeted farmers and intensive trainings will be provided to them on the best package of practices to grow quality fruits. Demonstration will be given to the target groups regularly.

In the second phase of the program implementation strategy an assessment of old plant/ orchards will be done to identify the factors responsible for decline in plants and production and to work out remedies or rejuvenation the old plants/orchards during the period. Number of New orchard will also be developed

Village level demonstration, farmer selection, information dissemination and monitoring will jointly done with existing cooperative and village level groups.

The program will be implemented by using collective approach to development.

Model nursery will established in Govt. owned land (horticulture department) and it will be provided through the ILSP Project.

PHASE -I

Baseline survey.

Site selection foe nursery development.

Establishment of the citrus nursery.

Identification and procurement of the best suited rootstocks and scion varieties.

Hiring the suitable manpower to supervise the project activities

Propagation of the planting material within the nursery.

Developing the standard package of practices on cultivation of citrus crops.

Training the targeted farmers on orchard management and adoption of standard package of

practices.

Organizing Farmer‟s exposure visits within and outside the state.

PHASE- II

Propagation of the planting material within the nursery.

Distribution of the planting material within the targeted farmers.

Training the targeted farmers on water and soil moisture conservation techniques.

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Training the targeted farmers on orchard management and adoption of standard package of

practices.

Training the targeted farmers on pre and post harvest management of the fruits.

Organizing Farmer‟s exposure visits within and outside the state.

IMPLEMENTATION OF THE PROPOSAL

Targeted Area: Chamoli

Planting material to be developed and distributed: 200,000. Land Required for model nursery: 4

Ha.

Targeted Farmers: 2000 small and marginal farmers

Period of the Project: 03 years and possible extension for another three years

SWOT MATRIX OF IDENTIFIED ISSUES:

The Strengths/Weaknesses/Opportunities threats (SWOT) analysis has been done keeping in mind the

geographical, social- economic related core issued and conditions existing in the region.

Strengths Weaknesses

Opportunities

Threats

Mass availability of the Citrus in 9 district of Utttarakhand approximately 15,000 tons.

Over 1 lakh poor and marginal farmer families are engaged in Citrus production.

The proposed project

area is Geographically & Climatically suitable for Malta Cultivation

The proposed project is strongest way to protect environment through Citrus plantation

Malta has good potential

in the domestic as well as national market

Unknown Variety of Citrus trees

Unavailability of quality planting material

Lack of package of practices

No self identity of citrus fruits in the market

Less shelf life of the citrus fruit. No regular availability due to seasonal production

Less Technical knowledge related to technology (timely pre-post harvesting/grading/packaging etc.)

Low education level and poor economic condition of the farmers or cultivators.

Lack of knowledge about Value added products

Establishment of model nurseries for developing quality planting material

Scope for enhancing productivity of the citrus by adopting good package of practices.

Development of business approach amongst the cultivators by developing nurseries/ improved orchards.

Scope for Increasing employment and self-employment for the local people.

Possibility of creating Value added products range beside the existing products to explore the market.

Higher cost of production

Non up gradation of process technology may also affect sustainability

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SWOT IN CONTEX OF GENDER

Strengths

Weakness Opportunities

Threats

70% of the SHGs members are women

Leadership in farmer existing federation & cooperative

Active participation of women in every developing activity

Equally active in agricultural practices

Policy supported by Govt.

Men dominated society in decision making specially in money transactions

Less importance given to women during planning/ implementation of any development activity

Low technical knowledge about pre-post harvesting techniques

Less business understanding

Equally involved in income generation activity

Increase understanding of the importance of gender dynamics the target families

Greater inclusion of women in leadership in related activity

Excess work load on women

ISSUES, PROPOSED SOLUTIONS AND INPUT MATRIX: Identified issues which are

to be addressed through project support

Proposed solutions (outcomes & outputs)

Activity proposed (input) Time Line

1. Assessing the present status of citrus cultivation (production, Technique, Variety and Income)

Base line Selection of target group Developing action plan

Base line survey with 200 household.

Site selection for nursery developed

Action Plan developed

2. Lack of quality planting material facilities in the state

Model nursery development

Quality planting material production

Nursery development in 0.2 hectare Demonstration of technique of model nursery (Drip irrigation, shade and structure development etc.)

3. Inadequate linkages with research institutions for supply of quality planting material

Identification and procurement of the best suited rootstocks and scion varieties

Form Resource pool of technical expert

Assuring availability of best planting material

Sampling of quality planting material; Collaboration with technical resource institutions

4 Package of practices on citrus cultivation

Development of Package of practices on Citrus

Conduct action research for development of PoPs eg on

nursery mgt

Grafting techniques

Pest & insect mgt

Harvesting and storage of fruits

Packaging & transport

Processing of fruit and other products

Package of Practices published

4. Capacity gaps Enhance Technical knowledge and skills

Training the target farmers on orchard management Adoption of standard package of practices

Organizing farmer‟s exposure visits to NRCC & Punjab Agriculture Univ

LOGFRAME OF PROPOSED ACTION RESEARCH

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Intervention Objective verifiable

indicators Data Gathering Methods and Frequency

Information Use: Analysis, Reporting, Corrective Actions & Sharing Process

Assumptions

Overall Goal

Ensuring the livelihood promotion by development of quality planting material & Orchard management

Outcome

State of the art nursery of citrus will be available for Uttarakhand State as a major resource

Over 2 lakhs quality planting material will distributed to the target farmers (2000)

Production

record (Annually)

Quarterly

Production analysis reports

Increased production, better orchard management & Assured Income for pro-poor families

50% of the total target beneficiary will start planting new varieties

Distribution record

(Annually) Orchard

development report Annually

Demonstration report

Outputs

Establishment of model nursery for development of Quality planting material

Functional citrus nursery producing two lakh saplings total with advance technique; Nos. of quality planting material distributed annually

Technical collaboration report

Nursery development & management report

(Annually)

Activity Report

Selection / introduction of Improved Citrus cultivars

Four variety of citrus plant tested; Three thousand of mother plants grown.

Nursery development report (Annually)

Activity report

Development of Package of practices to be adopted for quality citrus production

10 Demonstrations of pr

harvest management

techniques (500 families)

10 Demonstrations on

orchard management

techniques ( 500 families)

Package of practices

(Annually)

Demonstration report

Phasing out old and senile orchards with improved varieties

1000 old orchard rejuvenated with improve varieties

Progress (annually)

Progress Report

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STAKE HOLDER‟S ROLES AND RESPONSIBILITIES

Stake holder‟s Role

Activity Phase-I

HARC ILSP Cooperative Other dept.

Establishment of model nursery

Site selection of nursery

Arrangement of Quality planting material

Demonstration on model nursery technique

Collaboration of technical institute

Arrangement of space for model nursery (Horticulture nursery, Kothiyal Sain, Chamoli)

Demonstration of planting material

Arrangement of Quality planting material

Subject expert‟s Interface with target groups

Demonstration & training at village level

Supervision and M&E Selection and ensuring participation of target groups for demonstration

Enhance Technical knowledge

Capacity building through diff. techniques

Development & Disseminate of package of practices

Supervision and M&E Selection & ensure of farmer groups for training/ exposure

Rejuvenate citrus orchards

Selection of old orchards

Organizing Training & demonstration

Supervision and M&E Selection & facilitation of target groups as per action plan

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ACTIVITY MATRIX

Activities proposed Year Input provided by

HARC ILSP Cooperatives

1 2 3

Base line survey Survey Format; Selection of target group;

Facilitation village level meeting

Site selection for nursery Facilitation to with Horticulture dept.

Mother Nursery development in 4 hectare

Nursery structure development; Providing best quality planting material

Supervision and M&E

Facilitation of demonstration of

the farmers

Collaboration of technical institute Collaboration with the research institutes /interface of the experts

Supervision and M&E

Development the standard package of practice on cultivation of citrus crops

In collaboration with research institute

Supervision and M&E

Dissemination of Information

Organizing Training & demonstration for old orchard management

Conduction training with subject experts

Supervision and M&E

Selection of farmers

Capacity building on package of practice

Organizing training for target groups

Supervision and M&E

Dissemination of Information

Organizing farmer‟s exposure visits

Visit to Extension centres & Citrus orchards

Supervision and M&E

Selection of farmers

MONTH WISE BREAKUP MATRIX

Activities proposed Year 1 Year 2 Year 3

I II III IV I II III IV I II III IV

Base line survey

Site selection for nursery

Mother Nursery development in 4 ha

Collaboration of technical institute

Development the standard package of practice on cultivation of citrus crops

Organizing Training & demonstration for management of old orchards

Capacity building on package of practice

Organizing farmer‟s exposure visits

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Annex-2.3.2 Guidelines for Farmer Marketing Education

Background 1. Prices that farmers receive for their production can be increased if farmers have a better understanding of the importance of marketing as well as the benefits that they could accrue by taking greater responsibility for their own marketing. This paper describes the basic concepts of Farmer Marketing Education.

2. Most small farmers, even if members of groups sell their produce individually. Most farmers have a reasonable understanding of current market prices at more than one point in the marketing chain, obtaining this information from neighbours, visiting markets and listening to market information broadcasts on the radio. However, despite their knowledge of market prices, many small farmers are still “price-takers” and did not recognise that they could improve their returns by taking greater responsibility for their own marketing. They also have a poor understanding of the basic principles of marketing. This lack of marketing awareness certainly constrains their potential returns. Examples of lack of marketing awareness included:

A tendency to accept the price offered rather than negotiate, i.e., farmers were price-takers. Too often the timing of sales were determined by the need for short-term finance, i.e, a distress selling;

There were few instances of cooperating to reduce transport and other marketing costs or to gain increased bargaining power;

A lack of understanding of how prices could be increased by improving quality;

Very few farmers used previous year‟s market data to improve their pre-planting decisions; most farmers reacted to a low price in one year by not planting for the next season. A farmer with good marketing expertise would have recognised this and increased planting (anticipating a shortage); and

There were very few instances of any serious price negotiations taking place at the time of sales, nor were there any efforts to differentiate their produce through, for example, better quality and improved packaging.

3. The farmers‟ limited understanding of marketing and their reluctance to take responsibility is typical in many countries where government officials have decided their role is to tell farmers what to grow and where to market. In other words, it is prevalent where there has been a controlled, or non-liberalised, market for many of the main products. Where government policy has controlled markets, much of the advice offered to farmers was predicted on producing food for the urban population at the expense of ensuring an adequate return to the farmer‟s own labour. Even where markets have been liberalised, too few farmers are really benefiting from pro-actively selling in a liberalised market. In order to modernise agriculture to reduce rural poverty, it is important that farmers‟ marketing skills are improved. It is necessary that farmers take responsibility for their commercial decisions – including their choice of crops and their subsequent marketing. Farmer Marketing Education is a serious effort to educate farmers in the basics of marketing and demonstrate how returns can be improved if they take a more pro-active approach to marketing.

4. Farmer Marketing Education gives farmers the necessary tools and confidence to make their own marketing decisions. It is important that government, donor-assisted projects and NGO officials do not give marketing recommendations to farmers. This is because if such advice turns out to be incorrect, then the trust with the small-scale farmer is broken and it becomes more difficult to deliver further extension messages

9. All too often, public sector extension staff and marketing specialists are

9 A good marketing extension officer would provide the farmer with information that would allow him/her to make

better marketing decisions. For example, a historical record of daily market prices would help a farmer decide

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not up-to-date with market information – marketing education should teach farmers only to rely on these officials after they have proved that they are a reliable and best source of information. In fact, an important part of marketing education is to discourage a passive dependency on government to solve problems – but to stimulate farmers to find solutions themselves. Also, marketing education is designed to educate more than just farmers; it should also include traders, agro-processors and government officials. It is important that these groups are assisted, though the main thrust should be to train the farmers and their representatives.

Basis of Farmer Marketing Education 5. Farmer market education has a number of elements, including the following:

Demonstrate to farmers why they must take responsibility for marketing their produce and highlight the improvement in returns from a pro-active marketing;

Show how group marketing can improve profitability through reduction in marketing and transport costs, as well as increasing prices through a better negotiating position;

Explain the potential advantages of group marketing. Group marketing can operate at many levels – it can simply be neighbours occasionally hiring a vehicle to take their produce to the market where they sell it as individuals or through formal marketing agreements where a group of farmers give the authority to one person to develop a strategy and then co-ordinate the marketing for them all;

Explain why farmers and traders need market information and how to use it to improve their profitability;

Discuss the available sources of market information and how they can obtain such information;

Demonstrate how to use market price information to improve negotiation positions;

Demonstrate how to use market price information to make pre-planting decisions. This is perhaps the most important use of market information data;

Explain the principles of a free market and how market prices change in both the short and longer term. If farmers understand, they would be able to accept when the prices they are offered decrease because world market prices are falling and that it is not the “fault” of local market intermediaries;

If farmers have an improved understanding of how the market works, then they are in a better position to understand the inevitable risks associated with a particular crop and would be in a better position to evaluate the benefits of a guaranteed market offered by a processor

10;

Explain how to calculate the profitability of a crop that has a long harvesting season (e.g., some horticultural crops) – and why it is better not to sell when the market price does not cover the direct harvesting and marketing costs. The theme is that farmers must expect some price variations, but as long as the total revenue gives an acceptable margin over total costs, the farmer can accept some price fluctuations;

Give farmers the tools to be able to evaluate the advantages and disadvantages of supplying agro-processors- i.e., a guaranteed market, but probably lower prices;

when to plant to try to meet the high market prices. Also, a good marketing extension officer would help bring actors in the marketing chain together to improve the flow of information. 10 For example, if a farmer has a well informed background as how the market works, then perhaps accepting a

lower price from a processor for a guaranteed market would seem more attractive

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Market information is much more than just providing price data; it covers information such as quality, who else is supplying the market and what is the likely future supply position. Market intelligence is also an important issue – for example, competitor information on plantings and productivity. Farmer Marketing Education encourages farmers to search out the answers to these questions from a range of sources;

Show how to calculate marketing costs, and

Stimulate the discussion on possible actions to reduce marketing costs.

6. Good farmer marketing education should naturally lead to better informed enterprise decision-making. It is important that as part of the marketing education, farmers are encouraged to compare the potential margins for different enterprises, i.e, a gross margin analysis.

Establishment of a Marketing Education Training System 7. The Food and Agriculture Organisation (FAO) has pioneered the role of marketing extension in developing countries. It has also produced booklets on using market information and costs

11 as

well as horticultural marketing12

as well as a set of videos13

. The horticultural marketing book is currently being updated taking greater cognizance of the increasingly important role of the private sector in providing marketing advice and training and the reduction in the importance of the traditional extension systems. It is recommended that any future interventions to improve smallholder marketing skills should be based on these FAO training materials.

8. The main focus of any farmer marketing education must be the farmers. However, it is important that consideration is given to bring other stakeholders into the marketing education process. One of the core philosophies of any assistance given to improving the efficiencies of the marketing chain is to eliminate the “us versus them” culture between the farmers and the other actors in the marketing chain. It is therefore important to stimulate discussion between market intermediaries and encourage the flow of information in order to develop a culture of mutual co-operation. It is also important that it is recognised that all the market intermediaries must make a reasonable margin. Other stakeholders to benefit from the development of farmer market education would include:

Trainers (or service providers) working with farmer groups – whether they are employed by a project, an NGO, or by government;

Traders, agents and other market intermediaries in the market chain;

Service providers to the marketing system – e.g., transporters, packaging companies and input suppliers; and

Government and project staff - must recognise the importance of farmers, not themselves, taking responsibility for marketing decision-making. Also, this group would benefit from an improved understanding of marketing.

9. When the awareness of farmers on the importance of marketing has improved and they can take more responsibility for marketing, the trainers or service providers would need to bring participants in the marketing chain together to identify and discuss the main issues of each participant.

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Marketing Extension Guide - Understanding and Using Market Information by Andrew W Shepherd Food and Agriculture Organisation of the United Nations, Rome 2000 & A Guide to Marketing Costs and how to calculate them by Andrew W Shepherd Food and Agriculture Organisation of the United Nations, Rome 1993. 12

Horticultural Marketing – A resource and training manual for extension officers – FAO Agricultural Services Bulletin No. 76 – Rome 1989. 13

Horticultural Marketing – Marketing Extension & Horticultural Marketing – Extension Techniques; both are available from The Food and Agriculture Organisation of the United Nations in Rome

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Improving the Efficiency of the Marketing Chain 10. In addition to improving farmers‟ understanding of marketing, it is also important to bring together all the intermediaries in the market chain. Currently, these market intermediaries have a poor understanding of farmers‟ issues and problems. Also, farmers often “blame” market intermediaries for the relatively low prices they receive. Farmers do not understand the costs market intermediaries incur and the risks they take. A better understanding of the marketing chain should facilitate market information flow, and help farmers to produce what the market requires – thus generating better farm-gate returns. Establishing meetings between participants in the marketing chain would also help market intermediaries identify better and more reliable sources of produce – where they can develop a longer-term marketing relationship, which should lead to better farm-gate returns. In addition, better communication within the market chain might also help identify new products and market opportunities.

11. One of the most important “commodities” that should be traded in a marketing chain is information. It is important for the market intermediaries to know about the location of production, and the expected productivity. It is also important that farmers have an understanding of market price levels, quality, as well as who else is supplying or planning to supply to the market. Farmers also need to know what products are likely to be in demand in the future.

12. Discussion amongst market intermediaries needs to cover the customer‟s needs, quality, costs (especially transport), post-harvest losses and packaging. If such discussions meetings are properly managed, the outcome could include the following:-

alternative marketing strategies;

a better understanding of the difficulties faced by each of the actors, including making the market intermediaries more aware of the issues faced by smallholder-producers;

a greater awareness of the costs which each of the participants needs to carry; discussions can often lead to ways of reducing costs - which can then be shared throughout the chain

14;

improved quality of product, including better product presentation; the packaging can be improved, as can the servicing of the market; and

Provision of useful information, (e.g., contacts for buyers, transport and packaging companies, processors, buying and other technical specifications).

13. A core feature of all the effective courses involving actors in the market chain should be a considerable amount of group participation with presentations, role play, practical exercises (e.g., averaging prices, calculating margins), as well as visits to markets, buyers, processors, etc.

Benefits 14. Experience has shown that marketing education gives farmers better returns through slightly higher prices, as well as reduced marketing and transport costs. The education also enables farmers to understand the need to secure better market information, where to look for it, as well as to make more informed cropping and longer-term marketing and enterprise decisions. But perhaps the biggest but non-quantifiable benefit of marketing education is the empowerment of a large number of smallholder farmers to take a creative and pro-active role in marketing and to realise that they do not have to operate simply as price takers.

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Many multi-national companies hold regular meetings with participants in their supply chain, where each participant‟s cost is made available for detailed discussion, often resulting in significant cost reductions.

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Annex-2.3.3: Bamboo & Natural Fibre-based Enterprises Development

PROPOSAL PURPOSE AND OBJECTIVE

The aim of the proposal is to promote plant fibres and bamboo based enterprises as

livelihood option to the artisans of Uttarakhand.

OBJECTIVES

Demonstrating and disseminating plant fibre & bamboo based micro enterprise

technologies that are simple easy to adopt, socially acceptable, economically viable

and environmentally friendly.

Establishing a community owned plant fibre and bamboo based enterprises.

Transforming artisan‟s skills and capacities into sustainable micro enterprises

Enhancing income level of artisans.

PROJECT AREA

The project will be implemented in 8 blocks viz. Kapkot of Bageshwar district, Ghat, Dewal

and Tharali of Chamoli district and Mori, Purola and Bhatwari of Uttarkashi district, where

have intensive coverage of artisans‟ villages. UBFDB will implement project activities in

villages selected for ULIPH and to be selected under ILSP. A topical base line survey will be

carried out for selection of project villages.

Project Coverage- Targeted Resource and Thematic area

Block/ District Resource Thematic area

1 Kapkot (Bageshwar) Nettle, Hemp and Ringal Products diversification in to various market focused Products

2 Ghat, Dewal and Tharali (Chamoli)

Nettle, Hemp and Ringal Products diversification in to various market focused Products

3 Mori, Purola and Bhatwari (Uttarkashi)

Nettle, Hemp and Ringal Products diversification in to various market focused products

PROPOSED METHODOLOGY

Resource assessment and identification of collection points

Awareness and Sensitization

Identification of beneficiaries

Institutional development (group formation and strengthening)

Resource Building

Raw material collection

Establishing primary processing unit

Training and capacity Building of the artisans on primary processing techniques.

Establishing secondary unit

Training and capacity building on improved techniques identified and perfected by the

UBFDB.

Design development and value addition

Product development workshop as per market focused design development.

Market testing of ready products.

EXPECTED OUTCOMES

Benefitting directly and indirectly more than 450 and 600 artisans respectively.

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Primary and secondary processing systems will be upgraded with scientific manner

Developing 40 to 50 new market focused products design

Improvement in per capita income from natural fibre and Rignal based activities.

Exploring potential of natural fibre to improve rural livelihood of Uttarakhand

Improving the quality of environment in the Himalayan region by reducing synthetic

products.

Technologies and package and practices will be developed to product refinement.

Traditional knowledge in the field of natural fibre extraction and utilization will be

explored.

Man-animal conflict will be reduced by introducing nettle farming.

Up gradated skill and new design developed will enhance artisan‟s income level of

Rs. 1200 to 1500 per month from natural fibre and Bamboo.

JUSTIFICATION

Uttarakhand has huge potential in natural fiber because of the forest is home to variety of non-timber forest produces (NTFPs) used traditionally by the local communities for various tribal communities because of forest being major land use type in the state it is quite pertinent to expect livelihood support for tribal from the forest area of the state. As such the project holds great importance of the development of Bamboo and natural fiber based activities to enhance artisan‟s livelihood. Research and development on design development and training programmes for skill up gradation have indicated the potential for enterprise development in various natural fiber based products. Appropriate inputs in infrastructure development, product design and marketing strategy will help achieve the sustainable development of these rural craft communities by engaging them in small-scale cottage industries.

EXPERIENCE OF UBFDB

Uttarakhand Bamboo & Fibre Development Board since its inception has been working in

close association with the most marginalized communities of Uttarakhand in the most

geographically challenged areas of Uttarakhand. The communities that have been associated

so far in the livelihood ambit of UBFDB includes the Rudias working on the hill bamboo, The

Tharus of the Tarai region and their indigenous grass-based crafts, The Kuthlia Boras and

their associated natural fibre based crafts.

It has been observed by the board this proposal can be help in livelihood improvement of the

artisans/weaver in sustainable way. The Board with this proposed program will try to

understand the community in greater depth and in this process try to address their

sustenance needs and in this process make an effort to mainstream the community, and in

this process adequate care will be required as the very foundation of their livelihood pattern

will be touched through the various activities earmarked in the project.

SOCIAL COST BENEFIT

The project will not only focus the economic pace of the Bhotia and Tharu communities but also enhance their social acceptability among other community. In Indian traditional culture particularly in Uttarakhand the people involved in doing bamboo/natural and its related activities are always treated as a low status people but here in this project will be emphasized to accept all the barriers and their acceptability among other dominated community of the state. The community will be sensitized to manage their local resources with better manner as well accelerate their economic status. Women, in particular, will be empowered both economically and organizationally.

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PROPOSED ACTIVITIES & WORK PLAN Baseline survey for resource assessment: The immediate task would include conducting a baseline survey for resource assessment to analyse the scale of operations appropriate for the area. This study would indicate availability of the raw material, identifying traditional artisans and identify potential villages for promoting the natural fiber and Ringal (Hill Bamboo) based small industries. The data generated from the field survey will be documented in the form of a field report. Social Mobilization Efforts: The project will have a social mobilization component this will include, understanding the existing livelihood scenarios of the community and building upon this information make efforts to improve the existing livelihood scenario of the community. Social mobilization effort will also be undertaken taking into consideration the fact that the project will need to be grounded strongly within the community. Local Institutions Building: In each clusters, community institution such as SHG's will be formed which are linked up into primary cooperatives will be established. The cooperatives will manage the resource production, processing and production centers. The primary cooperatives will be further linked together to secondary cooperative for interlinking markets and production centers, sustainably enhancing both value and market share and to sustain the enterprise activities after the project phase. SHGs and federations which have been formed by ULIPH and have to be formed under ILSP will be adopted under this programme. Raw material collection and developing primary processing units: Establishing primary processing units and raw material collection would be primary activities under the programme. The primary processing units will be a conglomeration of self help group members, and cooperative members who are already associated with UBFDB and will be established by its. One or two primary processing unit will be established in each selected cluster.

Establishing Secondary Units: A secondary processing unit will be established in each cluster

based on the feasibility report was prepared by the technical person. Need based machines

and tools will be installed at the secondary processing unit (The cost of the machine and the

one year running cost is being incorporated into the project). The secondary unit will be

handled by respective cooperative with the technical support of deputed staff of Uttarakhand

Bamboo and Fiber Development Board.

Resource Generation: Usually, the local people collect the nettle fiber from forest and Van

Panchayat area and initial scenario of raw material versus the market trends is favorable for the state as the market has yet to be tapped, however once the market is tapped and nettle based enterprises is developed as commercial way, the pressure on the natural resources will

be overwhelming.

Considering the problem in future, the plantation and resource generation of the Himalayan

nettle from the areas of harvesting will be carried out simultaneously by the primary

processing unit beneficiaries, the beneficiaries will be trained initially in the strip sowing

plantation techniques. The strip sowing activity will be carried out in the 100 hectare land

under forest/Van Panchayat and community land and 1600 Nali (32 hectares) under private

land through transplant.

Training on Skill up-gradation and Capacity building: Under this section a capacity building cum skill up-gradation programme will be organized for the craft persons. This will be need based and continuance process where the crafts-persons selected will be trained in the field of natural fiber extraction, primary and secondary processing, craft design, yarn development, fabric development and finishing, ringal handicrafts and design etc.

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The proposed base line survey and the awareness program proposed in the project will be the first step in identifying the potential artisans from amongst the community. It is being felt that a strong selection criterion has to be placed in order to insure that the right persons are trained to insure sustainability of the interventions. These selection parameters will be inbuilt in the base line survey subject to further verification. The selected Crafts person will undergo skill assessment in order to ascertain their present skill level and their capacity to upgrade their present skill assessment as per the changing requirement. The third phase of the training program will start with the prototype development, care will be

taken to insure that the prototypes being developed have market feasibility, utility as well as

aesthetic wise and the prototypes developed can be produced within a fixed time frame and

also the comparative ease for mass production with the present craft skill level. The process

will be practiced in both crafts natural fiber and bamboo so that market focused enterprise

could be developed in sustainable manner.

Design development: After the initial ground work exercise the best craft persons will be identified and an extensive workshop will be conducted, either fully or in phases for exploring and refining their skills, the initial product line developed will become the basis of further product diversification in the field. The said exercise will be utilizing the existing potential of the craft carriers and can also be used as a leverage exercise to infuse confidence among the other to revive the craft to its past glory. The secondary unit will be managed by master trainer who will be trained in design development and to act as trainers for the community on aspects of design improvement. It is being proposed that the design based interventions will be outsourced to design institutes/ textile designers/product designers/accessories designers as and when required.

Research and Development: Key Areas of research and development will include:

a) Standardize harvesting practice: Little is known about the right time of

harvesting the plant so the resultant fibre obtained maintains its desired length

throughout the processing phases. Under the project harvesting practice will be

standardized as well as economical and ecological aspects will be covered.

b) Degumming Process: There is a need to standardize the degumming process

after harvesting of the plant from the wild, from the resultant fibre so obtained is

not free from the bark portion, these bark portion are difficult to separate and they

find their way all up to the carding stage and are visible in the resultant thread

making the developed clothing material course.

c) Modification and improvement in fibre opening, carding and spanning

system: In past two years, Uttarakhand Bamboo and Fibre Development Board

has carried out research and development project to mechanize fibre processing

systems such as fibre opening, carding and spanning but still need to refine the

system gaining the desired level of quality outputs.

Marketing promotion: Marketing and promotion will be one of the key activities of the

project to show case the ready items into the market and also strengthening the community

to handle the marketing part of the trade. The products developed by the craft cluster will

be put on a market testing exercise in various outlets in the state and outside the state to

have a feed back on the product quality and possibilities of demand.

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Since the product being developed have to be positioned in the market, this activity will be

carried out by the project through expert marketing companies; the markets of USA, Canada

and Britain where this material has already a substantial market will be targeted through web

based campaigns. Other marketing avenues will also be carried out through the outlets/shops

of the project.

ROLE OF UBFDB IN MARKETING PROMOTION

a) Create market linkages to reduce time-to-market and ensure faster cash returns

for artisans

b) Strengthen the concept of marketing centers already being established by the

Government. Increase participation of bamboo/fiber products in the Urban Haats

being set up, first one at Dehradun, on the lines of Dilli Haat

c) Improve distribution reach and establish linkages with markets in larger urban

locations to fetch improved realization

d) Commodities intermediate forms such as strips, slats and slivers once usage for

manufacturing picks up

e) Improve distribution network once quality has improved and stabilized in volumes.

Address external urban markets, and then export markets; after establishing local

markets

f) Establish market chain with the gift and presentation market players

HANDHOLDING SUPPORT TO ARTISANS

One of the bottlenecks observed in programs related to livelihood improvement is the absence of handholding, the project proposed is of five year duration, the project will be implemented in a phased manner starting from community mobilization, group formation, federating the groups into cooperative, institutional establishment and strengthening. Once the community is ready to venture into product development and are associated with the markets, demands are generated, the production-revenue cycle in cases of enterprises often extends to three to four months, honoring production orders require raw material, transportation etc and funds are generally not available to handle such situations, even the micro financing sector has its own shortcoming in handling this peculiar situation pertaining to honoring job orders. Taking this scenario into consideration a line item of handholding has been incorporated in the project. Apart from this, after having cauterization of all producer groups‟ seed money will be given as revolving fund to the federations/Cooperatives/ which is incorporated under the project, so that enterprises set up could be developed in sustainable way. The seed money would be used in fostering business volume and marketing promotion of natural fiber and ringal (Hill Bamboo) products. This component will quite useful to artisans that their work will not hamper just because of the paucity of money for the purchase of supporting items. The project will be implemented to ensure overall sustainability of interventions; the details and mechanism to ensure sustainability are as follows: Resource sustainability: The nettle plantation undertaken under the project, the clustering

approach provides continuous supply of raw material for the enterprises (Selective harvesting

of nettle will not lead to deforestation and nettle is annually harvestable plant).

Social/institutional sustainability: Focus on capacity building and strengthening institutions

at the local level supports the development and success of small enterprises. One of the long-

term goals is for community members to develop and operate their enterprises independently.

The project will also assist in identifying potential areas of conflicts and will promote equitable

distribution of benefits.

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Technical sustainability: Community members will be trained to utilize and maintain

equipment and gain an understanding of production, manufacturing and marketing processes.

Market sustainability: Changes in the market environment will be assessed and products

adapted in order to remain competitive and attractive to targeted customers. Even though the

initial support of a facilitator is needed, the community members participating in the project

will be the main decision-makers. A long-term project goal is to ensure that community

members will have the capacity to develop their enterprises and operate them independently.

For this to occur, community members must be leaders in the enterprise development. This

activity will only be initially supported by the proposed project.

Project Monitoring and Evaluation: The project being highly innovative requires constant internal monitoring as such the project is proposed to be monitored internally be an expert groups from the Board and Integrated Livelihood Support Project (ILSP) regularly and periodically. If it so ILSP can depute an external evaluator, if necessary. PROJECT COST Total project budget requested from the Integrated Livelihood Support Project (ILSP) is given in Table below.

Indicative Project Budget (Amount in INR 000)

Key interventions Year-1 Year-2 Year-3 Year-4 Year-5 Total

Cluster development 1,020 792 871 958 1,054 4,695

Resource development 440 440 20 40 940

Primary processing unit 592 492 492 392 392 2,360

Secondary proc. unit 630 1,630 1,630 1,430 1,430 6,750

Training, capacity building 370 410 180 110 110 1,180

Design development 0 300 400 300 100 1,100

R&D 400 200 0 0 0 600

Marketing promotion 100 220 332 345 360 1,357

Handholding Artisans 100 100 100 500 500 1,300

Operating costs 1,738 1,917 2,112 2,326 2,561 10,655

Total 5,390 6,501 6,137 6,401 5,453 30,937

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KEY COMPONENTS OF THE PROPOSAL AND EXPECTED IMPACT

Activity/ Area of work

Implementation Design Outreach and Expected Impact

Resource appraisal/ and base line survey

Baseline survey for resource assessment to analyse the scale of operations appropriate for the area. This study would indicate availability of the raw material, identifying traditional artisans, appraisal artisan’s skill and identify potential villages for promoting the natural fiber & bamboo based small industries. The data generated from the field survey will be documented in the form of a field report.

Outreach: (a) Direct : 600 house holds and (b) Indirect: 600 -700 . Area Coverage: 8 blocks within 3 districts of Uttarakhand Outcomes: (a) A data on resource availability, potential villages/areas, identification of artisans and appraisal of artisan’s skill will be documented to further course of action. Impact: (a) Strategy for raw material and regeneration of nettle fiber will be made. (b) Strategy for skill up-gradation and capacity building will be made.

Resource Generation and harvesting.

The plantation and resource generation of the Himalayan nettle from the areas of harvesting will be carried out by the primary processing unit beneficiaries, the beneficiaries will be trained initially in the strip sowing and harvesting technique. The strip sowing activity will be carried out in the 100 hectare land under forest/Van Panchayat and community land and 1600 Nali (32 hectares) under private land.

Outreach: (a) Direct : 600 house holds and (b) Indirect: 600 -700 . Area Coverage: 8 blocks within 3 districts of Uttarakhand Outcomes: a) An around 100 ha. Land will be coved under strip sowing in the forest/Vanpanchayat and community land and 1600 Nali (32 hectares) under private land in 8 blocks of 3 districts. b) Artisan’s skill up-gradated in harvesting techniques in better regeneration. Impact: A sustainable supply of raw material and regeneration of nettle fiber will be ensured.

Local institution Building

The group formation will be based on the craft being practiced by the community in the project location, case specific and activity specific. The SHGs which are linked up in to primary cooperative will be established. The cooperative will be managed the resource production, processing and production center and will be further linked with other institutions interlinking markets and sustainability enhancing both value and market share and to sustain the enterprise activities after the project phase.

Outreach: (a) Direct : 600 house holds and (b) Indirect: 600 -700 . Area Coverage: 8 blocks within 3 districts of Uttarakhand Outcome: 600 artisans/farmers will benefit under this activity and link with federations/cooperatives for enhancing value chain and market network. Impact: Collective work culture will be developed among producers/weavers/craftsmen and bulk production could be ensured to cater market demand.

Raw material collection and developing primary processing units:

In each cluster primary unit will be established and primary producer groups/SHGs will collect/produce the fibre. The primary processing unit and storage facility will be established according to raw material amount collected by artisans/producers.

Outreach: (a) Direct : 600 house holds and (b) Indirect: 600 -700 . Area Coverage: 8 blocks within 3 districts of Uttarakhand Outcomes: 600 persons will benefit from resource collection. Up-scaling of best practices of nettle fiber will ensure sustainable supply of raw material. Impact: (a) implementation of activities in focused clusters will be possible; (b) bulk production could be ensured to facilitate the marketing; and (c) process would be standardized to ensure cost effectiveness.

Training & Capacity Building of artisans

Considering the entire supply-chain mechanism with complete forward and backward linkages which starts from harvesting, primary processing, commoditization, value addition and quality control different training programs are proposed under this project.

Outreach: (a) Direct : 200 individuals and (b) Indirect: 600 -700 individuals Area Coverage: 8 clusters within 3 districts of Uttarakhand. Outcomes: (a) (a) 200 persons benefited in skill up-gradation fiber processing, ringal handicrafts, design development ect. Impact: The artisans will be exposed to tools, techniques and machinery and have enriching work experience working with regular production orders and will understand the concept of production – quality and quantity in a much better way

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Secondary Processing units and Loom up-gradation in 4 plant fiber clusters.

One secondary processing unit will be established in each cluster after feasibility report of the technical person. Need based machines and tools will be installed at the secondary processing unit. UBFDB will help in establishing the same.

Outreach: (a) Direct : 450 individuals (b) Indirect: 500 -700 individuals Area Coverage: 4 clusters in 3 districts of Uttarakhand. Outcomes: (a) Quality of yarn would be maintained; (b) process would be standardized; (c) centralized process would ensure the cost effectiveness. Impact: Cost effectiveness through centralized operation would ensure the technical and financial viability of nettle enterprise, thus providing long term livelihood options to the stake holder. Upgraded looms will enhance artisans’ capacity to weave natural fibers, thus enhancing their livelihood and keeping the weaving tradition alive.

Design Development and marketing

Design development part will be more focused area under the project. The design based interventions will be outsourced to design institutes/ textile designers/product designers/accessories designers as and when required. A series of training programme for the artisans will be organized in 6 clusters. The products developed by the craft cluster will be put on a market testing exercise in various outlets in the state and outside the state to have a feed back on the product quality and possibilities of demand.

Outreach: (a) Direct : 600 individuals and (b) Indirect: 600 – 700 individuals Outcomes: (a) 40 new designs will be developed; and (b) market linkages will be established to ensure good value for the natural fiber and bamboo products. Impact: up gradated skill and new design developed will enhance artisan’s income level of Rs. 1200 to 1500 per month from natural fiber and Bamboo.

Research and Development

Research and development will be key area of the project. Considering the main hurdles in natural fiber processing, the R&D will be focused to standardize harvesting, degumming, carding and spanning system. The R&D based interventions will be out sourced to research institute, subject matter specialist and textile engineers as and when required.

Outreach: (a) Direct : 600 individuals (b) Indirect: 600 – 700 individuals Outcomes: (a) Package of practices developed in Himalayan nettle harvesting, degumming, softening, carding and spanning. Impact: A quality of nettle and hemp yarn will be developed in count and a quality of fabric will be made to cater niche market.

Marketing Promotion Marketing and promotion will be one of the key activities of the project to show case the ready items into the market and also strengthening the community to handle the marketing part of the trade. The products developed by the craft cluster will be put on a market testing exercise in various outlets in the state and outside the state to have a feed back on the product quality and possibilities of demand. Focus will be given on only those Exhibitions and Fairs which are handicraft/handloom centric.

Outreach: (a) Direct : 600 individuals; (b) Indirect: 600 – 700 individuals Outcomes: (a) Show cased the ready items in to market and generated demand. (b) Federation and Cooperatives linked with market. Impact: (a) A sustainable market demand will be generated through participating exhibitions/trade fairs and established contact with consumers/buyers/companies for business networking. (B) Community will be sensitized to have a feed back on the product quality, design and possibilities of demand.

Handholding and capital money to artisans groups/ cooperatives

With a view to ensure sustainability of programme and also to strengthen community based enterprise development, a system like hand holding to producer groups/cooperatives will be developed. A certain amount will be provided to the producer groups as a revolving fund which will be utilized by respective groups for increasing business volume, market access etc.

Outreach: (a) Direct : 600 individuals; (b) Indirect: 600 – 700 individuals Outcomes: (a) Consistent production system developed without any paucity of money. (b) The artisans took initiatives for the establishment of community owned enterprise development. Impact: (a) Community owned enterprise development project will be established with sustainable manner. (b) Items will be prepared in bulk to facilitate market demand.

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Annex-2.3.4: VPKAS Proposal for Sustainable Farming Practices INTRODUCTION

Farming is the mainstay of the people of the North West Himalayas. However, the region is plagued by low production and productivity levels due to several factors, the prominent being poor accessibility, small holdings, low input agriculture and over exploitation of natural resources. All these have affected the carrying capacity resulting in marginalization of the hill farmers. However, owing to the huge natural-resource base, there is an immense scope of agricultural development in the region. The proposed research project has been developed after conducting need assessment surveys and identifying the critical gaps in the production systems in the selected villages. The major issues needing immediate attention are low productivity of crops and cropping systems due to poor management, over exploitation of natural resources leading to their degradation, unavailability of water for irrigation, less and unproductive desi breed of animals, lack of fodder for animals leading to stray cattle menace, absence of appropriate rural structures, and extensive migration of villagers in search of employment opportunities. With this background, the objectives of the project were framed with the aim of raising the productivity and profitability of the existing farming system and animals through adoption of successful interventions developed by VPKAS, Almora. The activities planned for each objective will lead to conservation of natural resources, diversification of agriculture, and returns to farmers for their produce. Sustainable livelihood systems models will be demonstrated with the collaboration of Ajeevika. The focus will be on integrated farming modules suitable for small & marginal farmers, comprising of popularization of scientific farming practice and crop diversification through introduction of high value crops. Adequate capacity building and exposure programmes for the staff and farmer groups of Aajeevika will be facilitated on various aspects of crop production. Technical site-specific guidance on natural resource conservation will be provided.

The critical gaps in the clusters and some of the proposed interventions are shown in the following

table

Gaps/constraints Proposed intervention

Poor seed replacement rate (4-6%) and use of farm saved seed

Capacity building of Aajeevika staff and selected Aajeevika farmers groups for quality seed production

Abundance of degraded soils Providing technical know-how on land capability classification and suitable land use to Aajeevika farmer groups, sample soil testing and application of soil resilient technologies in selected sites

Low crop productivity and high infestation of pests and diseases

Imparting training and demonstration to few selected Aajeevika farmers groups, on improved package of practices, in-situ moisture conservation techniques such as land smoothening, green mannuring, bunding, crop diversification for maximizing profit, promotion of legume-based cropping system, contour and strip cropping, IPNM, IPM, zero-tillage

Low water availability for irrigation

Water harvesting techniques for ground water recharge and supplemental irrigation, water saving through micro-irrigation systems (sprinklers/drips)

High rates of runoff and soil loss Mechanical and vegetative measures of soil conservation – contour bunds, minor leveling on terraces, fodder on terrace risers, vegetative barriers, gully plugs, etc.

Migration due to insecure employment and income

Capacity building of the SHGs on micro-enterprises

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RATIONALE OF THE PROPOSAL

The project has been developed as a holistic approach by adopting an integrated farming system with focus on diversifying income streams leading to increase in overall agricultural productivity and reduction in overexploitation of national resource base;

The soil and water management technologies will promote environmentally sound and beneficial activities like micro irrigation (gravity-fed irrigation), water harvesting and judicious utilization of rain water, and soil erosion and quality management;

Most of the technologies are low external input based. The Project will promote organic agricultural technologies such as vermi-composting and organic agriculture that will generate environmental benefits;

The project will promote different agro-forestry systems which will have positive impact over environment;

The project aims at the comprehensive capacity building of the farmers‟ groups by training them on production and post-production technologies, natural resource management, and agricultural

entrepreneurship.

OBJECTIVES

Goal: The goal of this proposal is to create a sustainable working model that would address the issue of rural livelihood security in a holistic manner. The specific objectives (along with the underlying hypotheses) for achieving this goal are:

1) Raising productivity and profitability from farming through adoption of improved production technologies (Hypothesis - Farm productivity and profitability can be increased by adoption of scientific technologies)

2) Mitigating soil and water losses and enhancing bio-mass production through management of

natural resources (Hypothesis – Sustainable productivity and sound ecological balance can be achieved through judicious management of natural resource base)

3) Creating participatory rural structures /processes for socio economic capacity building of hill

farmers / farm women and reduction in drudgery (Hypothesis – Sustainability of farming systems and enhancement of livelihood security can not be achieved unless dully supported and managed by necessary group organizations (SHG and Federations) and capacity building of beneficiaries)

WORK PROGRAMME

The whole programme will be carried out in the sequence as shown in the following flow chart

Selection of target groups based on the criteria of poverty socio-economic status

Setting objectives and identifying activities under each objective.

Implementation of activities/interventions

Monitoring the performance of indicators and mid-term corrections

Analysis and documentation of outputs and outcomes

Impact assessment

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CORE OBJECTIVES AND INTERVENTIONS

Objective Key Activities

Objective- 1: Raising productivity and profitability from farming through adoption of improved production technologies

Preparation of baseline report on land, water, forests, animal and human resources (with the help of ground data collected by Aajeevika) and resource maps.

Identifying critical constraints in crop production and opportunities for diversification through participatory rural appraisal (with the help of ground data collected by Aajeevika)

Demonstration of improved package of practices, integrated plant nutrient and pest management systems of cereals, pulses, vegetables etc to selected Aajeevika farmers groups. Training of Aajeevika staff on these aspects

Capacity building of Aajeevika staff and their farmers groups for quality seed production to improve the seed availability.

Forage promotion for enhancing its availability through Aajeevika and their farmers groups

Objective-2: Mitigating soil and water losses and enhancing bio-mass production through management of natural resources

Site-specific application of agronomic, agro-forestry and bio-engineering measures for arresting runoff, soil loss as well as improving soil health

Analysis of soil and water samples (suitability for irrigation) for physical, chemical and biological properties and development of soil quality indices

Construction of Demo units of vermi-compost, organic farming/low input sustainable agriculture in selected villages

Promotion of cost-effective water harvesting and ground water recharge techniques through training and demonstrations

Promotion of water saving gravity-fed micro-irrigation devices, training and demonstrations on the installation, maintenance and use of the system

Demonstration and training on protected agriculture

Objective-3: Creating participatory rural structures/processes for socio economic capacity building of hill farmers / farm women and reduction in drudgery

Promote micro-enterprises (Mushroom, beekeeping and others) and facilitating linkages with markets and banks in selected villages

Farm mechanization and Post-harvest technology dissemination for value addition and reduction in drudgery

Capacity building of SHGs, master trainers, NGO staff and paraworkers through trainings and demonstration.

Publications.

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ACTIVITIES BY YEAR

Major activities Year-1 Year-2 Year-3 Year-4 Year-5 Year-6

OBJECTIVE 1: Raising productivity and profitability from farming through adoption of improved production technologies

1 Preparation of baseline report on land, water, forests, animal and human resources (with the help of ground data collected by Aajeevika) and resource map.

a Conducting preliminary surveys at selected sites for ground- truthing.

b Preparation of resource map

C Compilation of a baseline report

2 Identifying critical constraints in crop production and opportunities for diversification through participatory rural appraisal (with the help of ground data collected by Aajeevika)

a Selection of beneficiary farmer/farmers’ groups with the help of Aajeevika

3 Demonstration of improved package of practices, integrated plant nutrient and pest management systems of cereals, pulses vegetables etc to selected Aajeevika farmers groups. Training of Aajeevika staff on these aspects

a Demonstration of crop production technologies in selected farmers’ fields (seeds/INM/IPM/cropping and farming systems including agro-forestry) in selected districts

b Capacity building of farmers and Aajeevika staff on above aspects

c Comparison of performances (applied technology vs farmers’ practice) and documentation

d Organizing farmers’ field day and exposure visits

4 Capacity building of Aajeevika staff and their farmers groups for quality seed production to improve the seed availability.

a Training of selected Aajeevika staff on seed production technology of related crops.

b Training of selected Aajeevika farmers’ group on seed production technology of related crops.

c Two visits at least per crop season to monitor the seed production activities at the seed production sites by the experts.

5 Forage promotion for enhancing its availability through Aajeevika and their farmers groups

a Demonstration of improved/locally important fodder varieties, their management technologies and training on production and storage of fodder

b Capacity building of farmers’ groups and Aajeevika staff on the creation and maintenance of fodder banks

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OBJECTIVE 2: Mitigating soil and water losses and enhancing bio-mass production through management of natural resources

1 Site-specific application of agronomic, agro-forestry and bio-engineering measures for arresting runoff and soil loss and improving soil health

a Selection of beneficiaries for the application of soil and water conservation technologies through Aajeevika.

b Conducting Land Capability Classification surveys on the selected farmers’ fields

b Demonstration of technologies on farmers’ fields as per decided land use

c Impact assessment of applied technologies

2 Analysis of soil and water samples (suitability for irrigation) for physical, chemical and biological properties and development of soil quality indices

a Soil sample collection from selected farmers’ fields (list of beneficiaries finalized in 2 a), and analysis for soil properties

b Developing the soil quality indices for these sites and reporting problems (where applicable) and their remedial measures

3 Construction of Demo units of vermi-compost, organic farming/low input sustainable agriculture in selected villages

a Selection of interested beneficiaries

b Construction of demo units of vermicompost

c Demonstrating the application and benefits of vermicompost in selected farmers’ fields

4 Promotion of cost-effective water harvesting and ground water recharge techniques through training and demonstrations

a Design and construction of cost-effective water harvesting structures (for providing supplemental irrigation and multiple water use) on selected farmers’ fields through Aajeevika

b Design and construction of recharge pits in selected sites/farmers’ fields

c Impact assessment of applied technologies

5 Promotion of water saving gravity-fed micro-irrigation devices, training and demonstrations on the installation, maintenance and use of the system

a Design and installation of micro-irrigation devices.

b Demonstration of use of micro-irrigation devices on horticultural crops.

c Capacity building on the installation, use and maintenance of these devices to selected farmers’ groups and Aajeevika staff

6 Demonstration and training on protected agriculture

a Installation and demonstration of protected cultivation units in selected sites with the help of Aajeevika

b Capacity building on the installation, use and maintenance of these units to selected farmers’ groups and Aajeevika staff

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OBJECTIVE 3: Creating participatory rural structures /processes for socio economic capacity building of hill farmers / farm women and reduction in drudgery

1 Promote micro-enterprises (Mushroom, beekeeping and others) and facilitating linkages with markets and banks in selected villages

a Selection of beneficiaries/groups with the help of Ajeevika

b Demonstration of bee-keeping, mushroom culture, etc. to the beneficiaries

c Capacity building of selected farmers’ groups on these micro-enterprises

2 Farm mechanization and Post-harvest technology dissemination for value addition and reduction in drudgery

a Demonstration of post-harvest technologies developed by VPKAS for value addition

b Demonstration of small farm tools to selected farmers’ groups

c Capacity building of selected farmers’ groups on post-harvest processing of commodities and value addition

3 Capacity building of SHGs, master trainers and Aajeevika staff through trainings and demonstration.

a Creation of master trainers in different target clusters

4 Publications

MONITORABLE INDICATORS

The following bench mark will be used as monitoring indicators for measuring of the success.

Livelihood

Man days of employment generated

Reduction in migration

Increase in household income

Productivity enhancement and Nutritional Security

Improvement in productivity of major crops, cropping intensity & cropping pattern

Enhanced availability of quality seed

Area under organics/INMs and diversified food production

Increased farm mechanization

Energy, nutrient and water use efficiency and improved water productivity

Cost reduction, Agronomic management and increase in high value cropping

Prevention of losses and maximization of factor productivity

Demand based market linked commodity product

Per cent produce processed after harvest and value addition through post harvest management

Risk Minimization and State of Environment

Area treated with soil and water conservation measures, soil and irrigation water quality, reduction of runoff and water loss

Improvement in vegetative cover

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Increased availability of irrigation/harvested water

Protected cultivation to combat extreme weather conditions.

Social Status, Farmer Organizations

Relative improvement in SHGs covering all the communities and livelihood enterprises.

Reduction in indicators of women drudgery

Levels of social acceptance in sustainability of the programme

OUTPUTS AND OUTCOMES

Outputs

Activity

Output quantification

Adoption of Integrated farming systems Increase in system productivity by at least 25%

Agronomic and bio-engineering measures of soil and water conservation

Reduced runoff and soil loss by at least 25% over 5 years; Increasing ground water recharge by at least 40%;

Alternative land use/Biological measures Increase in biomass productivity by at least 30%; Increase in area under fruits/agri-horticulture by at least 40% over five years;

Better trained manpower in seed production and availability

At least 100-125 Ajeevika Staff and farmers will be trained in seed production in 5 years;

Installation and use of water saving devices/micro irrigation techniques

Reduce irrigation water requirement by at least 40%;

Outcomes A positive shift in attitude of farmers from exploitation of natural resources to their conservation

and judicious management

Better confidence and knowledge levels of the farmers to decide and take up alternative livelihood

generating options

INDICATIVE BUDGET BY YEAR (AMOUNT IN LAKH INR)

Budget Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Total

A. Recurring exp.

TA 2.00 2.00 2.00 2.00 2.00 1.00 11.00

Contractual services 18.07 18.07 18.07 18.07 18.07 11.26 101.66

Operational costs 31.00 46.00 44.50 32.50 25.00 19.00 198.00

Sub-total (A) 51.07 66.07 64.57 52.57 45.07 31.26 310.66

B. Non-Recurring

Equipments 20.40 0 0 0 0 0 20.40

Works 2.00 4.00 0 0 0 0 6.00

Furniture 1.00 1.00 0 0 0 0 2.00

Sub-total (B) 23.40 5.00 0 0 0 0 28.40

C. Institutional charges 5.10 6.60 6.45 5.25 4.50 3.12 31.01

Total (A+B+C) 79.58 77.68 71.03 57.83 49.58 34.39 370.13

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Chapter-2.4: VOCATIONAL TRAINING


Key objective is to develop a skilled workforce for the new industries that have been attracted to Uttarakhand by Government tax incentives, particularly in the automotive and pharmaceutical sectors

B. Key Success Factors Establishing linkage with reputed training institutions

Favourable response from the participating youth

Adequate financial support from the project

Satisfactory post-training placement of the trainees

C. Skill Development in Uttarakhand Uttarakhand has particular needs for and opportunities of vocational training. The population of the

hills districts is particularly, and increasingly, reliant on out-migration and opportunities outside of the

hill districts. Better employment opportunities are emerging in new industries and developing sectors.

The Government has provided tax incentives for major industries to set up in the state. This has

resulted in the development of automotive and pharmaceutical clusters, but these are almost all in the

plain districts of Haldiwar and Udham Singh Nagar, rather than in the hills. These new industries have

agreed to recruit workers from within the state, but report that it is hard to find the required manpower

and most workers come from outside of the state.

Uttarakhand has the usual vocational training institutions, with a total of 107 ITIs in the state, along

with polytechnics. However the State Government is keen to develop new avenues for vocational

training in partnership with the private sector.

The National Skill Development Corporation (NSDC) is currently supporting three vocational training

organisations in Uttarakhand: B-ABLE (with 2 centres), IIJT Computer Education (with three centres)

and Gras Academy (with one centre). IIJT courses cover finance and information technology, while

Gras training is on computers, sales, English, automotive repair, mobile phone repair, and air

conditioning and refrigeration.

GoUK has its own vocational training in partnership with 6 industries. This “Blessings” programme is

for 6 months classroom and 6 months on the job training, and aims to train 21,000 students this year.

Between 5 and 7 private training centres have been set up, and the private Graphic Era University is

training 1,000 students on short vocational courses.

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D. Description of Activities There are two key activities under this sub-component: (i) conducting a study on skill development

with the help of an external agency; and (ii) providing vocational training that are linked to job-

placement to about 10,000 rural youth.

Skill Development Planning Study: The formulation report for ILSP proposed that the project fund

vocational training scholarships for 10,000 students from hill communities. However further

investigations on approaches to supporting vocational training; including an international workshop on

Skills Development for Poverty Alleviation held at IFAD headquarters, show that more work is needed

to plan the provision of vocational training by ILSP. To do this, a study would be commissioned in the

start-up phase of ILSP. This study would address the following key issues:

The need to develop a skilled workforce for the new industries that have been attracted to

Uttarakhand by Government tax incentives, particularly in the automotive and pharmaceutical

sectors.

The need to ensure that the benefits of economic development reach the more rural hill regions

of the state as well as the more urbanised plain districts

The need to address high youth unemployment levels in Uttarakhand

The need to foster new avenues for education and training by encouraging more private sector

involvement in the sector, and by supporting poor households who cannot afford to pay for

training.

The need to ensure training offers are taken up by genuinely motivated individuals who will go

on to pursue work and careers in their chosen training areas.

The need to ensure quality of any training delivered.

The study would include:

A survey of local employers to determine their exact skill requirements, and to understand the

profile of their current skilled workforce

A survey of the target group of learners to determine their current skill levels and their

attitudes to key questions such as:

o Willingness to pay for all or part of training

o Willingness to move to another part of the state to study

o Willingness to move to another part of the state to work

o Attractiveness of the key sectors as job / career options

A review of current training institutions to determine whether they have capacity to deliver

the type and volume of training envisioned and that adequate quality controls are in place

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A comparative literature review of existing practice in education funding initiatives in similar

socio-economic environments, to determine whether the scholarship model proposed is likely

to be appropriate and effective for this specific project, and how any distorting effects might

be reduced.

A full set of recommendations would then be produced, including:

The most appropriate sectors / industries for training

Key skills and competencies that should be covered

The funding model most likely to be effective for the target learners

Any additional support learners may require

Any changes required to ensure training institutions have capacity to deliver

Mechanisms to ensure quality The design team has identified Manipal City and Guilds Joint Policy Advisor Group as the appropriate

agency to carry out this study. City and Guilds is a non-government organisation in the UK and is a

major vocational training qualification agency in the UK and overseas. It has established at joint

venture in India with Manipal, IndiaSkills, to provide this service in India.

Manipal and City and Guilds have also established a Joint Policy Advisory Group, with an office in

Delhi to provide advisory services to the vocational training sector. This group operates at arms-

length from IndiaSkills and so is independent of any provider of vocational training and vocational

qualifications.

Terms of reference for this study is given in Annex-2.4.1.

Vocational Training: Based on the recommendation of the study, the project will provide funds for

vocational, residential training to about 10,000 rural youth over a six year period. The facilitating

agency will identify rural and urban youth who are willing to undergo training and identify appropriate

training institutions for providing them vocational training. The training institutions would ensure that

the trainees, after their successful completion of training are provided job-placement.


10,000 youth trained in vocational training of which at least 60% women.

At least 8,000 vocational training graduates gain employment

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Annex-2.4.1: Proposal from Manipal-City & Guilds

The Integrated Livelihoods Support Project proposes to include a key element of vocational training for young people in Uttarakhand to develop workplace-applicable skills, and to foster links to local employers to ensure training can lead to sustainable livelihoods. To ensure that the initiative is a success and that it meets local needs, further research is required on a number of fronts. The IFAD design team for ILSP has identified Manipal City and Guilds Joint Policy Advisor Group as the appropriate agency to carry out this study. City and Guilds is a non-government organisation in the UK and is a major vocational training qualification agency in the UK and overseas. It has established at joint venture in India with Manipal, IndiaSkills, to provide this service in India. Manipal and City and Guilds have also established a Joint Policy Advisory Group, with an office in Delhi to provide advisory services to the vocational training sector. This group operates at arms-length from India Skills and so is independent of any provider of vocational training and vocational qualifications. UNDERSTANDING OF THE KEY ISSUES

The need to develop a skilled workforce for the new industries that have been attracted to Uttarakhand by Government tax incentives, particularly in the automotive and pharmaceutical sectors.

The need to ensure that the benefits of economic development reach the more rural hill regions of the state as well as the more urbanised plain districts

The need to address high youth unemployment levels in Uttarakhand

The need to foster new avenues for education and training by encouraging more private sector involvement in the sector, and by supporting poor households who cannot afford to pay for training.

The need to ensure training offers are taken up by genuinely motivated individuals who will go on to pursue work and careers in their chosen training areas.

The need to ensure quality of any training delivered THE PROPOSED STUDY In order to ensure that the project addresses these key issues, it is proposed that the following investigations should be undertaken before the project gets underway:

A survey of local employers to determine their exact skill requirements, and to understand the profile of their current skilled workforce

A survey of the target group of learners to determine their current skill levels and their attitudes to key questions such as:

o Willingness to pay for all or part of training o Willingness to move to another part of the state to study o Willingness to move to another part of the state to work o Attractiveness of the key sectors as job / career options

A review of current training institutions to determine whether they have capacity to deliver the type and volume of training envisioned and that adequate quality controls are in place

A comparative literature review of existing practice in education funding initiatives in similar socio-economic environments, to determine whether the scholarship model proposed is likely to be appropriate and effective for this specific project, and how any distorting effects might be reduced.

A full set of recommendations would then be produced, including:

The most appropriate sectors / industries for training

Key skills and competencies that should be covered

The funding model most likely to be effective for the target learners

Any additional support learners may require

Any changes required to ensure training institutions have capacity to deliver

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Mechanisms to ensure quality THE TEAM The project would be managed by MCG‟s Joint Policy Advisory Group (JPAG) based in Delhi. JPAG would also take responsibility for analysing the original data collected during the first three research phases outlined above, and for writing the final report for IFAD. The City & Guilds Centre for Skills Development (CSD) would take responsibility for designing the research tools, under advice from IFAD as to the details of their requirements. It would be necessary to recruit a reliable local research institute to carry out the data gathering exercise for the first three pieces of research. If IFAD have access to reliable local researchers who could be recruited for this purpose, this would speed the process up considerably. The comparative literature review would be conducted either internally by CSD and JPAG, or else by an externally recruited research institute with experience in comparative skills policy and the Indian skills environment. TIMELINES The estimated delivery time for the project is 12 weeks. Time to deliver the project will depend partly on the size of the research team recruited to carry out the data collection. The estimates below assume a team of three people. Note that this does not include time required to recruit the research team.

Wk 1

Wk 2

Wk 3

Wk 4

Wk 5

Wk 6

Wk 7

Wk 8

Wk 9

Wk 10

Wk 11

Wk 12

Refinement of research brief Identification of sample groups Conduct literature review Development of research tools Pilot and amend research tools

Data Collection

Data entry

Data analysis

Report writing

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Chapter-3.1: LIVELIHOOD FINANCING

A. Objective and Purpose The objective of this component is to provide venture capital support facilities to the target groups

such as SHGs, producer groups, livelihood collectives and such institutions


Developing specialised expertise in capital structuring and financing

Development of viable financing models

Favourable response from the target groups

Effective business promotion at grassroots levels

C. Description of Activities This component will be implemented by UPASAC, the social venture capital company established by

ULIPH. In order to be effective in financing enterprise promotion, UPASAC will need to develop

specialised expertise in capital structuring and financing. However the business promotion role will be

carried out by UGVS and other resource organisations.

Despite making significant strides in financial viability, profitability and competitiveness, the banks

have not been able to provide significant numbers of poor households with basic financial services.

With support to develop their capacity, banks could do more, but developing an effective delivery

system requires additional channels at the retail level such as SHGs, producer groups, livelihood

collectives and other institutions.

Livelihood Collectives under ILSP will have to play a crucial facilitating role in ensuring adequate

credit for production in order to break the nexus of marketing agent, and also to ensure timely

production for marketing. In order to be organisationally sustainable LCs will need year round

activities.

Households in distant villages need a range of financial services for which banks need the services of

business facilitators/ agents. A stand alone bank Business Correspondent model is not likely to be

viable in hill districts. Some LC can act as business facilitators/ correspondents of banks to provide

savings, small loans, and remittances. They can also act as agents of insurance companies for

insurance services.

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As households shift from subsistence to market based production, they will need adequate insurance

against shocks and risks in increasingly volatile climate and market conditions.

The activities under this component may include:

a) Banking support – capacity development support to banks and expansion of branch

network of a local financial institution.

b) Risk management – piloting and scaling up of weather index based insurance, cattle

insurance and health mutual.

c) Financial inclusion initiatives – training to livelihood collectives to act as BF/BC, and

product literacy training to project households.

d) Provision of development finance via UPASAC including (i) viability gap funding support

to LC; and (ii) loan and quasi equity funding.

e) Establishment cost support to UPASAC.

BANKING SUPPORT

Options for developing banking support include:

Agreement with banks: State Bank of India, Regional Rural Banks and District Co-operative

banks have a major presence in the project districts. UPASAC will carry out a stock taking

exercise of the availability of bank branches and their outreach, and enter into MoUs for

livelihood and enterprise financing with the banks having a larger presence in project blocks.

UPASAC will conduct a quarterly review with the banks to smooth implementation.

Workshops: Livelihood Collectives or Field NGOs will carry out an annual credit need

assessment. These plans will be discussed with banks, Government programmes and

NABARD at annual district and state-level workshops.

Training will be imparted to the branch and senior staff of the banks especially in appraisal

skills for lending to producer groups, livelihood collectives and larger social enterprises and

also new methods such as value chain financing. These trainings will be conducted by

reputed bank training institutions. Exposure visits will be arranged to other hill states and

countries to study good practices in enterprise promotion and financing.

Branch expansion: KGFS, a local rural finance institution, will be contracted by UPASAC to

expand operations in the project blocks through opening 20 new branches in order to provide

comprehensive financial services at the door step of the clients and to set good practices in

innovative products for main stream institutions to adopt. This will fill gaps in what is available

from banks and the SHG system. KGFS should be selected for this role as it has: a) over two

years of experience of working in the hill districts, b) proven systems and technology to

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upscale operations, c) good quality of management, d) comprehensive financial services and

products which suit needs of target group, e) viable business model, and f) availability and

willingness to commit their own resources to provide branch capital and the costs of

management support. UPSAC will provide support in the form of: a loan of Rs 30 million as

subordinate debt; a grant of Rs 7 million for branch expansion overheads and product

development; and a comprehensive impact assessment in year 4 of the project.

RISK MANAGEMENT

Options for development of risk management instruments include:

Weather risk insurance: UPASAC may enter into MOUs with the Department of Agriculture

and/or Horticulture, insurance companies and a Technical Assistance provider to develop

weather index based insurance products. The support will include: (i) product development

Technical Assistance for the insurer; (ii) improving the infrastructure of weather stations and

quality of weather data; (iii) linking with LC for client education and integrating with a wider

package of services; (iv) linking with banks and local financial institutions;

Cattle insurance: technology driven pilots in cattle insurance in coordination with NGOs/LCs.

UPASAC will study the integrated cattle insurance and risk mitigation model of KGFS and

pilot this initiative through KGFS and/or other interested institutions.

Mutual Health Insurance: UPASAC will contract experienced institutions to carry out a study

of existing health care in project districts, the possibilities for linking with existing schemes,

gaps in health insurance products, and the possibility for community based mutual risk

management solutions. If found to be feasible, ILSP will provide initial funding for a mutual

health insurance scheme.

FINANCIAL INCLUSION

The project will seek to improve financial inclusion using one or both of the following initiatives:

Livelihood Collectives to be BF/BC: UPASAC will facilitate the Livelihood Collectives to act as

banking facilitators/ correspondents for providing small savings, livelihood credit, remittance

etc. LCs will require in depth training from a specialised institution such as the Indian Institute

of Banking and Finance.

Financial product literacy will include training modules on lifecycle needs and suitable

financial products, risk and insurance, savings, insurance, and pensions. Training will be

provided to NGOs and LCs, with ToT provided by specialised agencies. Promotional

material with details of products and their benefits will be displayed in project villages,

Livelihood Collectives as well as distributed to client households.

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DEVELOPMENT FINANCE FUND

UPASAC was provided with USD 1 million in funding via ULIPH, which has not yet been utilised. The

budget for ILSP will allocate an additional USD 1.5 million (from Government resources) but these

funds will not be disbursed to UPASAC until an IFAD review has assessed the utilisation of the ULIPH

funds and the requirement for additional finance. UPASAC‟s governance and management systems

will also be revised – details are in Working Paper 10.

UPASAC will solicit proposals from community enterprises, enterprises promoted by NGOs, social

entrepreneurs, etc. To be eligible for support the enterprises will need to meet one or more of the

following criteria: (i) source products/services from hill area communities, (ii) provide products/

services to these communities, (iii) provide employment opportunities for these households; (iv) allow

members of hill areas communities to share in the ownership/profits of the businesses; and (v)

provide specific work opportunities for women and persons from the Scheduled Castes.

Focus areas - The sectors for development capital support will be largely related to livelihood

opportunities in the hills such as:

Agriculture and allied activities such as livestock, horticulture

Non farm sector

Clean energy and water

Tourism including eco tourism

Aggregated marketing of products of community groups; post harvest processing

Input supply to project area households

Other rural enterprises with downstream benefits to community

The instrument for financing will depend on the legal form, the stage of growth of enterprise and

risk/return potential of the enterprise. Development capital will be backed by the cash flow from the

business rather than its assets, but personal guarantees from the entrepreneur may also be taken.

UPASAC will fund up to 49% of the financial outlay of the enterprise. The rest will be owners‟

equity/contribution, Government grant, bank loans etc.

The UPASAC investment may take the following forms:

First lender loan to create the credit history needed to access bank loans at the initiation

of the enterprise. This would be for up to two years.

Loan term loan of 3 to 5 years – this would aim to supplement, not replace, bank loans

Equity and quasi-equity – UPASAC funds would mean allow an enterprise to be funded in

situations where the promoters are unable to invest sufficient equity capital that will allow

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loans to cover the balance of the financing needs with an acceptable level of gearing.

UPASAC funds will provide additional equity finance, but with a planned exit strategy.

This could involve the business refunding the equity at a later date along with a share of

profits, or conversion of the equity into a loan when the net worth of the business can

support a higher level of borrowing.

Viability gap grants for Livelihood Collectives. Some LCs may establish collective

enterprises. Traditionally such enterprises are provided grant funds to cover their

operational costs for a limited number period, but a sudden transition to self-financing can

stress the business and lead to loss of staff. UPASAC will support community enterprises

for up to two years until these enterprises achieve viability and cash flows are stabilised.

ESTABLISHMENT COST SUPPORT TO UPASAC

UPASAC‟s salary and overhead costs including consultants‟ fees will be supported by the project in

the initial 3 years and on a tapering basis thereafter. Based on the business plan of UPASAC and the

robustness of income from development finance funding, the position will be reviewed at mid-term and

further support will be determined. Promotional expenses for dissemination of the financing facility will

also be funded by the project. UPASAC will receive a management fee for managing the activities

(other than the Development Finance Fund) of the component on behalf of ILSP – the fees will be

paid as a percentage of the budget spent during the year on the basis of satisfactory performance

indicators.

More information on this component is in Working Paper 10.

D. Implementation Arrangements Monitoring would be carried out every level right from the producer groups to the PMU/UPASAC. The

aspects to be monitored at every level would be clearly identified and the indicators developed for the

same.

The MIS of UPASAC would be designed to capture the necessary information on the performance of

the development finance fund. Monitoring data in respect of Livelihood Collectives and enterprises will

also be captured and analysed periodically. UPASAC will also provide data to PMU on progress of

other activities under the component, managed on behalf of ILSP

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E. Sustainability

UPASAC will be a self-sustaining institution if the development finance fund is deployed effectively. If

UPASAC can earn an overall return of 10% on the fund, UPASAC will be profitable and hence no

issue is foreseen in the exit strategy for the project.

The lending relationship between banks and producer groups, livelihood collectives, social enterprises

is expected to continue beyond the project period.

Additional services provided by livelihood collectives as banking facilitators/collectives are expected to

strengthen their revenues apart from client satisfaction thus leading to their sustainability.

Local financial institution is expected to be viable sooner because of the funding support from the

project for the branch expansion.

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Annex-3.1.1: Livelihoods Financing Arrangements

Product Coverage & Target households

Credit Channels Facilitators

Livelihood Finance

Livelihood credit Target households Banks/ Local financial institution to Producer groups/SHGs Banks to producer groups/SHGs through BCs Banks to livelihood collectives to producer groups Banks to individuals

NGOs, UPASAC,

Enterprise credit (usually loan sizes above RS.50,000)

Household enterprises Banks/ Local financial institution to enterprises

NGOs, UPASAC

Savings Target households and others in the villages

Households to banks through BCs. Household to LFIs

UPASAC

Cattle Insurance Dairy farmers in project Village/block

Insurance company, financial institution

UPASAC, technology provider, livelihood collectives

Health Mutuals Households in project Village/block

Mutual, insurance company for back up insurance

Technical support provider, UPASAC

Other insurance products

15

Households in project Village/block

Insurance company, Livelihood collective

NGO

Pension Households in project Village/block

Household to LFI like KGFS

UPASAC

Remittance Households in project Village/block and migrants

Banks either directly or through BC LFI to household

UPASAC

Development Finance

Quasi equity/equity and debt instruments from project and bank credit

Livelihood collectives, social enterprises

UPASAC to enterprise Bank credit to enterprises

NGOs, commodity boards, industry organisations, KVIB etc.,

Viability gap funding Livelihood collectives UPASAC to enterprise NGOs etc.,

15

The livelihood collectives will also be enabled to act insurance agents for distribution of life, asset insurance products as also Government insurance schemes such as Aam Aadmi Bima Yojana etc., the concerned insurance companies will provide need based training to the livelihood collectives for the same.

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Annex-3.1.2: SKG Financial Services

By intent a KGFS is a tightly focused local financial institution (LFI) with about 50 branches providing a complete range of financial products and services. SKGFS is a new generation local financial institution functioning on the hill districts of Uttarakhand for the past two years. As per the recommendations of QA, an institutional assessment of KGFS following the due diligence principles was commissioned and the assignment was carried out by Micro Save, India.

The key findings of the assessment have been: The institution has strong governance and management systems. Promoted by the IFMR group, the institution has on going technical assistance for product and systems development from IFMR Rural Finance and funding support from group companies. In a short period of 2 years, the institution has established itself as a professionally managed institution with well defined and documented processes and systems. The processes are technology intensive and is likely to support future growth, lowering incremental costs of delivery of financial services. SKGFS offers 15 financial products meeting different lifecycle needs of clients – 7 loan products, 2 remittance, 2 investment and 4 insurance products are being offered.The total loan clients are 2936, number of loans per wealth manager was 49 and loan outstanding per wealth manager was INR.9.96 lakhs as of July 2011. Under risk management and investment products 16979 clients are covered - 14521 clients have personal accident insurance and another 1684 have term life policies. Average

SKGFS follows the responsible financing principles following the wealth management approach focusing on financial education, a range of products to suit the client needs, reasonable product pricing; the institution thus is not driven by numbers and profit maximization. The company complies with margin and interest rate norms in the guidelines announced by the RBI and proposed in the micro finance bill though the institution is operating in challenging hilly terrain and sparsely populated area and thus incurs high costs. The institution has designed its operations in such a way that the break even is not aimed early by loading the clients with higher charges. The institution aims to be viable within 4 to 5 years. KEY WEAKNESSES Though there are many products the promotional efforts need to step up for marketing of the products. The financial health is not very strong – the operational self sufficiency is 38% and operational expense ratio is at 43% where as the yield on portfolio is 18%. The present institutional form (Section 25) poses limitations for offering large ticket loans as well as for raising equity and thus have repercussions on financial viability of the institution. DISCUSSIONS WITH SKGFS During appraisal detailed discussions were held with SKGFS team to understand the institution‟s future plans for addressing the key weaknesses and possibilities for collaboration with ILSP. Though there are 7 loan products including a cattle loan, the loan product in demand is largely retail loans and this product is the key driver to sustainability of a branch at present. In order to work with

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ILSP, the range of loan products will include financing of agriculture and allied activity, tourism related enterprises, livelihood collectives etc., IFMR Rural Finance will support in product development. SKGFS is keen to offer large ticket loans and will finance some of the enterprises the project will be working with in tourism sector, vocational training linked loans, financing livelihood collectives etc., Since the present institutional form (section 25 not for profit company) has restriction on loan size (Rs.50,000), the SKGFS proposes to integrate the operations under a group NBFC. This will also address the issue of raising equity. In the proposed restructuring, all the three KGFS will come under the umbrella of Pudhuaru, NBFC which will be a non MFI NBFC (keeping in view the recent guidance from RBI for MFI NBFCs). Pudhuaru is fully owned by Emerging channels and structures company which is a private limited company. Emerging channels will float another MFI NBFC for distributing the micro finance loans (as per RBI guidelines). Emerging Channels will also enter into an agreement with leading banks for developing agency network for offering savings, domestic remittance and mutual funds (since NBFCs at present cannot/find it difficult to offer these products). These institutions in different legal forms are necessary to offer a wide range of products and comply with the regulatory requirements. Thus through this complex institutional arrangement the SKGFS will offer all types of financial products. The NBFCs will carry out lending, insurance distribution, pensions, international remittance and the agency network will be offering savings, domestic remittance and mutual funds products. However, in the proposed restructuring there will not be any change in the front end operations and SKGFS will retain the present branch network, systems and products etc., Any funds received from the project will be accounted for separately and mandatorily used for SKGFS operations. It is expected that this restructuring will be complete before ILSP is launched. With the funding situation improving on the ground, fresh equity is being mobilised for Emerging Channels, the holding company and negotiations are on going with some banks for loans. However, SKGFS is in need of quasi equity to leverage further funds. Instead of the compact 50 branch local institution model, SKGFS is planning to open 100 branches in order to achieve financial viability in the hills. The institution expects the new branches to break even by second year (as against the projection of three years by Micro Save) in future. CRITICAL PERFORMANCE INDICATORS AND OTHER FINANCIAL TERMS Operational Self sufficiency (OSS) – This measures how well a financial institution covers all its costs (operating, financial and loan loss) from its revenue. The indicator should be more than 100%. OSS = Revenue / (Operating costs+ financial expenses+ loan loss expenses) Portfolio at risk >90 days (PAR) – The value of all loans outstanding that have one or more principal overdue past due for more than 90 days. This includes the entire principal outstanding including the instalments past due and future instalments. The lower is the ratio the better. PAR = Portfolio at risk >90 days/Gross loan portfolio outstanding Subordinate debt – is a debt that is considered as tier 2 capitals and hence enables leveraging additional debt. However, it ranks lower than the other debts should a company fall into receivership. It has usually long term of maturity of 5 or more years with proper amortization arrangements in order not to affect liquidity of the company. It usually carries a higher interest rate though it is not unusual for development financing institutions like NABARD to lend at low rates of interest to promote growth of an institution. SUPPORT TO BRANCH EXPANSION OF SKGFS

SKGFS will be contracted by UPASAC to expand operations in the project blocks in order to provide comprehensive financial services at the door step of the clients and to set good practices in innovative

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products for main stream institutions to adopt. This will fill gaps in what is available from banks and the SHG system. It is recommended that SKGFS be selected for this role as it has: a) over two years of experience of working in the hill districts, b) proven systems and technology to upscale operations, c) good quality of management, d) comprehensive financial services and products which suit needs of target group, e) potential to be a viable business model, and f) availability and willingness to commit their own resources to provide branch capital and the costs of management support.

UPASAC will provide three types of support to SKGFS

1) Subordinate debt 2) Branch expansion and product development 3) Impact assessment

Subordinate debt - As per the institutional assessment carried out by Micro Save, the institution will require adequate subordinated debt to ensure liquidity to the nascent institution apart from allowing the institution to leverage resources from other institutions

16.

UPASAC will provide subordinated debt of INR 30 million The amount will be drawn in two or three instalments as per the branch expansion plan. This will be funded out of the development finance fund.

Project will finance SKGFS for quasi equity on market rates of interest. On achieving performance indicators including viability of branches, on the basis of agreed parameters a) credit outreach and outstanding, b) Operational Self Sufficiency of branches, c) Portfolio At Risk (PAR) >90 at 2.5%, a rebate of 4 % will be offered on interest rate. These parameters will be reviewed and reset if necessary by the supervision missions of IFAD.

The quasi equity will remain with the SKGFS for 4/5 years and there after will be returned in quarterly instalments in the fifth to seventh year of the project.

Interest payment needs to be serviced from the beginning of disbursement of debt and has to be paid every quarter on a regular basis.

The subordinated debt will be primarily deployed in the area of 20 branches. Any amount leveraged through this debt will also be largely deployed in the project area including in other branches set up with own resources but operating in project area.

Branch expansion plans - UPASAC will provide INR.7.0 million as grant for establishment costs and overhead costs for 20 branches

17 and product development for financing agriculture and allied

activities, tourism related enterprises, livelihood collectives etc.:

The branches will provide comprehensive financial services, including livelihood and enterprise credit, insurance, remittance and pensions. It is expected that about 40,000 households will receive need based financial services through this branch expansion.

The expected outcomes of the branch expansion in year 1 and year 2 after the branch opening are given below;

Indicators Year 1 Year 2

Enrolment of new customers each year

1000 1000

16 As per the financial projections, Rs. 3.86 crores is expected as equity in year 2013 and Rs. 4.91 crores in year 2014 and a total of Rs.9.51 crores by 2016. 17 The setting up costs of a branch is Rs.2.5 lakhs and the operational expenses till the branch achieves viability

is about Rs. 2.25 lakhs. Thus the project is bearing about 60% of the setting up costs.

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Credit customers At least 20 % of enrolled customers

Loan outstanding Rs.50 lakhs Rs.1.2 crores18

Insurance 50% of the customers

Pension 10% of the customers

Savings product if BC arrangement is tied up

20% of the customers 30% of the customers

OSS of a branch 30% 75%

PAR >90 days Less than 2.5 % Less than 2.5 %

In 2012, Sahastradhara KGFS is expected to set up 5 branches in the project area of ILSP followed by 15 branches in 2013. Sahastradhara KGFS will take 50% of the financial assistance upfront and the rest once the branch attains financial viability i.e by third year or earlier.

In order to work with ILSP, focus needs to be on developing new products on agri and allied activity financing like dairy, horticulture, services sector such as tourism, linking vocational training to setting up of enterprises, financing livelihood collectives etc., IFMR Rural Finance which is already involved in product and systems development of all three KGFS will support in product development.

Impact assessment – ILSP will also provide grant to SKGFS to carry out a comprehensive impact assessment in the fourth year of the project. However, SKGFS will need to design the base line data for each branch in such a way that a systematic impact assessment is made possible. The impact assessments will be carried out by a reputed institution such as the Centre for Micro Finance Chennai or EDA Rural Systems New Delhi.

Reporting - Financial statements and portfolio performance report for the branches supported and for SKGFS will be submitted every month and the audited financial statement will be submitted every year. A social performance management report needs to be furnished every quarter by Sahastradhara KGFS. The standard format developed by agencies like CMF and Microsave can be used for the same. CGAP responsible financing principles will also be followed and reported in the progress reports. UPASAC will also carry out any special audit such as portfolio audit in case of need.

A formal agreement between UPASAC and KGFS will specify the terms of support, outputs expected from the funding support, reporting requirements and recourse in case of any dispute etc.,.

18

Normally this is Rs.80 lakhs. With lending to ILSP related livelihoods and enterprises the figure is expected be higher.

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Annex-3.1.3: Aajeevika Livelihood Financing Schemes

INTRODUCTION

The International Fund for Agricultural Development (IFAD) assisted Uttarakhand Livelihoods Improvement Project for the Himalayas (ULIPH), also known as Aajeevika, is being implemented by the Uttarakhand Gramya Vikas Samiti (UGVS), a registered society formed by the Rural Development Department, Government of Uttarakhand.

Uttarakhand Parvatiya Aajeevika Sanvardhan Company (UPASaC) is a Social Venture Capital Company (SVCC) registered under Section 25 of the Companies Act,1956 to implement the Livelihood Enhancement and Development Component and Livelihoods Support Systems Component of the project. The company is promoted by Rural Development Department, Government of Uttarakhand The Project‟s primary objective is to improve the livelihood of vulnerable groups in a sustainable manner through the promotion of improved livelihood opportunities and strengthening of local institutions that relate to livelihood development. Specific objectives are to:

i) To promote a more sensitive approach to the design and implementation of development

interventions

ii) To enhance the capabilities of local people to select appropriate livelihood opportunities,

access required financial resources, manage new technologies and institutions at the

village level

iii) Increase incomes through more sustainable income generating cultivation systems and the

establishment of non-farm enterprises at the micro and small scale level, and

iv) Establish effective and appropriate delivery systems for inputs and for maintenance of

assets and resources, with emphasis on microfinance, savings and thrift, and micro

insurance products, along with access to business development services that will link

household based livelihood activities with the larger economy.

Aajeevika was initiated in 2004 and has a project life span of 8 years coming to an end on December, 2012. With the need to put more concerted efforts for the fulfilment of objectives of Aajeevika, a new project named as Integrated Livelihood Support Project (ILSP) under Rural Development Department, Government of Uttarakhand with assistance from International Fund for Agricultural Development (IFAD) has come up and its implementation has begun from April, 2012. ILSP will have a project span of seven years.

The project covers 959 villages of 17 blocks in 5 districts (namely Almora, Bageshwar, Chamoli, Tehri, and Uttarakhand) of Uttarakhand where approximately 40 percent of the total population in each selected block is covered under the project interventions. The project has formed 3560 Self-Help Groups and 71 federations (Self reliant cooperatives). The project has been organising demonstrations related to enterprise based livelihood enhancement opportunities with participation from the community along with providing various techno-commercial inputs for the same.

The Project has identified value chains in sub-sectors namely Organic Farming, Off season vegetables, Soil water resources, Dairy, Poultry (Kuroiler), Medicinal and Aromatic Plants, Eco-tourism and Rural Non Farm Sector (RNFS) for organising demonstrations which are to be taken up further by the project beneficiaries on demand driven approach. The project focus from now on will be on up-scaling and replication of the project demonstrations to derive the economic benefits for the community while linking them with larger economy.

The Project is being implemented in 17 remote and underdeveloped blocks in five districts of Uttarakhand. The districts and blocks are as under:

Almora : Dhauladevi , Lamgara and Bhaisia Chana

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Bageshwar : Kapkot and Bageshwar Chamoli : Dewal, Ghat, Dasholi and Narayan Bagar Tehri : Bhilagna, Pratapnagar, Devprayag and Jaunpur Uttarkashi : Purola , Mori, Dunda and Naugaon

TERMS AND CONDITIONS FOR EXTENDING GRANT AND LOAN FROM PROJECT IN CO-

FINANCING MODE WITH BANK:

AAJEEVIKA FEDERATIONS

1.1.1. Eligibility Conditions

i. Federation should have been formed under IFAD assisted Uttarakhand Livelihood

Improvement Project for the Himalayas or Integrated Livelihoods Support Project.

1.1.2. Term Loan norms

i. Up to 49% of the Project Cost can be financed from Social Venture Capital Fund

(SVCF).

ii. Rate of interest will be 9% p.a. or at such rate as may be decided from time to time

iii. Repayment to start as per Bank norms.

iv. Tenure of loan will be maximum 7 years.

v. No processing fee will be charged.

vi. Security will be on the basis of second charge on assets pledged as collateral with

Bank.

vii. Margin money should be minimum 10% of the Project Cost.

viii. Grant up to 25% of the Project Cost or Rs. 5 lakhs whichever is less for proposals

sanctioned up to 31st December, 2012.

ix. Insurance charges on assets under loan charged in the first year to be borne by

Project for proposals sanctioned up to 31st December, 2012.

AAJEEVIKA SHGS/JOINT LIABILITY GROUPS

Eligibility Conditions

Self Help Group / Joint Liability Group have been formed under IFAD assisted

Uttarakhand Livelihood Improvement Project for the Himalayas or Integrated

Livelihoods Support Project.

SHG bank account should be at least 1 year in existence.

SHG should have been sanctioned CCL after 1st grading by Bank and account has

been categorized as regular by Bank.

Term Loan norms

Up to 49% of the project cost or Rs. 5 lakhs whichever is less with a limit of Rs.

50,000 per member.

Rate of interest will be 9% p.a. or at such rate as may be decided from time to time.

Repayment to start as per Bank norms.

Tenure of loan will be maximum 7 years.

No processing fee will be charged.

Security will be on the basis of second charge on assets pledged as collateral with

Bank.

Margin money should be minimum 10% of the Project Cost.

Grant up to 15% of the project cost or Rs. 25,000 whichever is less for proposals

sanctioned up to 31st December, 2012.

Insurance charges on assets under loan charged in the first year to be borne by

Project for proposals sanctioned up to 31st December, 2012.

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PROCEDURE FOR SUBMISSION OF LOAN APPLICATIONS AND RELEASE OF COUNTERPART

FUNDS FROM “AAJEEVIKA”

Following are the steps for processing of loan application under the scheme:

The Project will facilitate the meeting of the Board of Directors of Federations / SHG members

to take decision for availing loan from Bank under Aajeevika Udhyamita Vikas Scheme.

The Project will provide technical support to federations and SHGs in preparation of business

proposals of federations and SHGs.

Federation business plan and SHG loan application in prescribed format will be submitted to

the service area branch of Federation / SHG with a copy of the same to District Management

Unit (DMU). The DMU will compile list of proposals on weekly basis and submit the same to

Bank Head Office for information and necessary action.

The Bank after reviewing the proposal can accord their approval for loan on the application

format and forward the same to District Management Unit for further necessary action at their

end.

After receiving the approval from Bank, the Project will issue sanction letter along with

remittance for the approved amount of Grant and loan from SVCF to the Bank Head Office.

Grant from Project will be held by the Bank at the back end and has to be adjusted against

the last remaining instalments after repayment of loan by the borrower satisfactorily during the

stipulated tenure. No interest will be charged to the borrower on the Grant Component.

The interest rate on SVCF will be charged at 9% or such rate as may be decided from time to

time.

The Bank shall ensure that disbursement of total loan is carried out not later than 7 days after

receipt of funds from the Project.

The Bank shall provide the status of all loans disbursed as at the end of every month by 10th

of next month.

The status of loans will be discussed in the quarterly reviewing committee as proposed in the

MOU entered between Bank and the Project.

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Annex-3.1.4: MOU with Uttarakhand Gramin Bank

This agreement is entered into on 22 March 2012 by and between Uttarakhand Gramya Vikas Samiti (UGVS) represented by State Project Director, Project Management Unit, Uttarakhand Livelihood Improvement Project for the Himalayas (ULIPH) under Rural Development Department, Government of Uttarakhand having its principal place of office at 272 C, Phase II, Vasant Vihar hereinto referred as ULIPH and Uttaranchal Gramin Bank represented by Chairman having its head office at 18, New Road, Dehradun hereinto referred as UGB. WHEREAS the UGVS under Rural Development Department, Government of Uttarakhand (GoUK) desires to implement the Rural Finance and Services Support under the International Fund for Agricultural Development (IFAD) assisted Uttarakhand Livelihood Improvement Project for the Himalayas (ULIPH) in the 17 project blocks in Almora, Bageshwar, Chamoli, Tehri and Uttarkashi districts of Uttarakhand. WHEREAS ULIPH has provision for co-financing the project identified enterprises from Social Venture Capital Fund (SVCF) and other funding facilities. WHEREAS , the UGB being a participating Bank in the ULIPH area is willing to provide banking services support to the Self Help Groups (SHGs), Federations and Enterprises that are promoted by ULIPH in the project Blocks. WHEREAS the UGB having expressed its willingness to collaborate with the ULIPH and provide all financial services that are required by the SHGs, federations and enterprises promoted by the ULIPH. 2. AND WHEREAS BOTH PARTIES AGREE THAT 2.1 The UGB shall perform the services during the period commencing from ……….2012 to till

the date of Project Completion and/or any other period as may be subsequently and mutually agreed by the parties in writing.

2.2 Targets and achievements shall be reviewed every quarter and any shortfalls in achieving the

stipulated targets will accordingly be discussed and measures for rectifying the shortfall will be initiated on the basis of mutual discussion and agreement.

2.3 The UGB and UGVS undertake the responsibility to perform the services with the highest

standards of professionalism, ethical competence and integrity. 2.4 ULIPH will be responsible for all expenses incurred on training and purchases relating to

toolkits, raw material or any other relevant items for training and development of training manuals and materials on financial literacy.

2.5 The ULIPH will designate the respective District Project Managers who shall be responsible

for the coordination of activities under this MOU and in addition, the Business Promoters and project staff will also provide adequate support and facilitate the training.

2.6 Proposals to be facilitated by ULIPH under co-financing from SVCF and other funding

facilities under ULIPH for the development of enterprises for individual SHG member (s), SHGs, federations and enterprises promoted by ULIPH will be subject to technical and financial appraisal by a Committee constituted by ULIPH. Cost of such technical and financial appraisal, wherever necessary, will be borne by ULIPH. However final lending decision will be at the sole discretion of UGB depending on the merit of the case.

3. THE ULIPH MAKES THE FOLLOWING ASSURANCES TO UGB 3.1 The ULIPH will assure that it shall follow best practices in mobilizing SHGs and build their

capacities to save, borrow and utilize the funds in the best possible manner as to improve their economic condition.

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3.2 The ULIPH further assure that it shall continue to support the SHGs and their Federation operations in livelihood activities and financial support services with appropriate monitoring and supervision.

3.3 The ULIPH will facilitate proposals to UGB the cases of individual SHG member (s), SHGs,

federations and enterprises promoted by ULIPH that have shown a good record of functioning on aspects considered critical by the UGB in taking credit decisions and further assure that the ULIPH shall cause the individual SHG member (s), SHGs, federations and enterprises promoted by ULIPH approaching the UGB for linkage, to produce the records and documents as may be needed by the UGB.

3.4 The ULIPH assures UGB that it shall take necessary steps so that group would exert peer

pressure on the defaulter members, if any in the group, so that eventually the SHG may be considered as default free.

4 WHEREAS, FURTHER TO ABOVE-MENTIONED ASSURANCE, ULIPH OFFERS THE

FOLLOWING FACILITIES AND SUPPORT TO UGB 4.1 The ULIPH shall designate an Official or Bank expert at the PMU level to ensure smooth

coordination and problem solving across the ULIPH Project area. 4.2 The ULIPH shall explore and implement with UGB the best means of expanding outreach of

services in the remote regions where distance from villages to Bank branches is too long. 4.3 The State Project Management Unit will assist UGB in developing ICT-based pilots where

needed, that would not only serve the target clients of the ULIPH Project Area but also facilitate financial inclusion.

4.4 ULIPH through its field level presence will facilitate branches in recovery of loans from its

Project beneficiaries. 4.5 ULIPH will take due care in ensuring that the proposals under SVCF are technically feasible

and economically viable. ULIPH will ensure that such enterprises get enough capacity building and business development services support for their sustainability.

4.6 The ULIPH assures the UGB that it shall provide the SHGs and Federations with seed capital

and corpus support on criteria fixed by ULIPH, so that their financial strength is sufficiently built for leveraging higher quantum of Bank loans.

4.7 ULIPH will facilitate the marketing of the products for the units financed under the project

through tie–ups with bulk buyers. ULIPH, to the extent possible, will facilitate necessary documentation and arrangements for crediting the sale proceeds to bank accounts of the groups. Recovery of loan installments of the units financed by the UGB, wherever possible, can be sourced through receipt of sale proceeds in a centralized manner at appropriate level.

4.8 Apart from facilitation for financing, ULIPH will give priority in placing the deposits with the

UGB as long as the interest rates offered by UGB are competitive with other nationalized banks.

4.9 The PMU shall introduce a scheme of awards for best performing branches of UGB in the

ULIPH Project Area for recognizing excellence in operations in consultation with UGB. 4.10 Under Financial Inclusion policy of RBI, ULIPH will facilitate its federations to work as

Business Correspondent of UGB and facilitate the appointment of Customer Service Points (CSP) in the unbanked areas. However, the committee at UGB Regional Office will confirm the appointment of CSP.

4.11 ULIPH shall frame necessary guidelines for financing from SVCF and other facilitating funds

under ULIPH. Representation to UGB will be given in the Committees for enterprises proposal appraisal for financing from SVCF and other facilitating funds under ULIPH.

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4.12 The ULIPH shall design new credit products and refine existing ones for financing enterprises to be undertaken by ULIPH beneficiaries in collaboration with UGB.

5. WHEREAS THE UGB HAVING TAKEN NOTE OF THE ASSURANCES GIVEN BY ULIPH

MAKES THE FOLLOWING ASSURANCES: 5.1 The UGB shall designate Nodal Officer(s) at the State and district level to ensure smooth

coordination and problem solving across the ULIPH Project Area. 5.2 The UGB shall provide the Business Promoters and Project staff with a check list of

documents and other documents relating to fulfillment of formalities while making a proposal for linkage.

5.3 The UGB, with a view to ensuring appropriate financing of ULIPH promoted SHGs, shall

provide the rating parameters along with appropriate capacity building inputs to the Business Promoters and ULIPH staff so that they could conduct the rating/grading appropriately and submit the same to UGB. The UGB agrees to the ULIPH field staff carrying out the rating/grading and presenting the same along with other documents to the UGB for acceptance thus reducing the documentation/rating/grading at UGBs end.

5.4 UGB will ensure facilitation of finance to women beneficiaries and others engaged in agri-

business activities but not having ownership of land through „Share Cropper Tenant Farmer‟ scheme.

5.5 UGB will do necessary scrutiny, appraisal & necessary sanction of Loan proposals facilitated

by ULIPH and evaluated by UGB. 5.6 UGB staff will do the necessary documentation after the sanction of the loan as well as the

disbursement to customers. 5.7 The UGB shall link those SHGs for saving and credit, which are having members who have

not earlier defaulted to Banks. However a SHG member would not be called defaulter unless she / he herself / himself has taken loan from bank in the past and has not repaid the same. If the spouse or any other member of the family has defaulted the applicant would not be considered as a defaulter.

5.8 The UGB agrees to provide collateral free loans to SHGs as per its internal business norms,

of different types of short term and long term maturities. However, the securities created with bank finance will remain charged / hypothecated to the Bank.

5.9 The UGB agrees that the total turnaround time for the processing of loan application by Self

Help Groups, Federations and Enterprises will be not more than 15 days. In case of rejection of a loan application the Bank would clearly place in writing for the group the reason for rejection of the loan. However granting of credit facilities to any SHG or its member(s), Federations and Enterprises shall be sole discretion of the UGB.

5.10 The UGB further agrees not to insist upon saving of the group being placed on deposit, but to

persuade the SHGs to utilize the saving for internal lending among members and deposit only the short-term surplus of funds representing unutilized saving.

5.11 The UGB agrees to facilitate knowledge support training to ULIPH SHG members through

RUDSETIs set up in project districts. 5.12 Depending on necessity, UGB will nominate its personnel to training courses and exposure

visits organized by the ULIPH as participants to ensure uniformity of understanding about the ULIPH goals and processes and also overarching issues such as gender and poverty sensitization, livelihood development etc. UGB will sponsor their Branch Managers for the orientation and take care of required expenses on training/orientation of their staff.

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6 ENSURING QUALITY AND REVIEW 6.1 To ensure Quality and Review mechanism, two committees at two levels would be formed.

These committees would meet at regular intervals to review the progress, identify bottlenecks and take corrective actions. The Committee will be as follows:

6.1.A District Level Committee: This committee would comprise of the District Project Manager

ULIPH , Representative from the UGB and the representative from the federations of ULIPH. This committee would meet once in every two months.

6.1.B State Level Committee: This committee comprise of the State Project Director ULIPH or its

representative and representative from the UGB. This committee would meet once in every three months.

6.2. The present MoU may be modified or amended only by written agreement between the Parties. IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have on behalf of the Parties hereto signed the MoU at the place and on the day below written. For UGB For ULIPH Name : Name : Title : Title : Place : Place : Date : Date : Witness Witness Name Name Designation

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PART-THREE: GUIDES & GUIDELINES

4.1 DRAFT FINANCE & ADMINISTRATION MANUAL 4.2 DRAFT RFP FOR PARTNER AGENCIES

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Chapter-4.1: DRAFT FINANCE & ADMINISTRATION MANUAL FOR UGVS

Government of Uttarakhand

UTTARAKHAND GRAMYA VIKAS SAMITI

IFAD-assisted Integrated Livelihood Support Project

FINANCIAL AND ADMINISTRATIVE RULES

445


(IFAD-assisted Integrated Livelihood Support Project)


Table of Contents

Preface

Abbreviations and Acronyms used

Chapter- I Short Title and Commencement

Chapter- II Definitions

Chapter- III Committees to be constituted by the Samiti & Functions of Project Units

Chapter- IV Functions and Powers of the Project Authorities

Chapter- V Annual Work plan, Flow of Funds and Accounts

Chapter- VI Procurement of Goods, Works and Services.

Chapter- VII Recruitment and Service Rules

Chapter- VIII Delegation of Powers

Schedule – 1 Conveyance Hire (Hire of taxis) and others,

Schedule II Financial and Administrative Powers o Chairperson, PD and PM, and F&AO

Schedule III Fund Flow System and Reimbursement Procedures

Schedule IV Expenditure and Payment of money, Financial Advice / Concurrence. Prompt Disposal of Audit Observation

Schedule V Accounting of LIPH Expenditure and Books of Account

Part-1 Introduction

Part – II Accounting Principles and Books.

PART- III Payment & Accounting procedures,

PART –IV Pay- roll, Accounting, Income Tax matters

PART- V Receipt and Cash Management

PART- VI Fixed and other Assets, Periodical Financial Statements

PART –VII Data Security and Storage and Maintenance of Past Records

PART –VIII Budgeting and Budgetary control

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(IFAD Assisted-Integrated Livelihood Support Project)


PREFACE

The Uttaranchal Gramya Vikas Samiti was registered under the Societies Registration Act of 1860; on 5/12/2003 with registration number 847/2003-2004 primarily to implement the IFAD assisted Livelihoods Improvement Project for the Himalayas in Uttarakhand. Livelihoods Improvement Project for the Himalayas is scheduled to reach project completion date on 31

st December, 2012. Uttarakhand

Gramya Vikas Samiti has been entrusted with the task to implement the Food Security & Livelihood Enhancement Component under the IFAD assisted Integrated Livelihood Support Project over a period of seven years spread over F.Y 2011-12 to F.Y. 2018-19 . These Financial and Administrative Rules of the Samiti have been framed by largely drawing on the existing Rules of Societies formed for implementing the projects of very similar nature including Jharkhand-Chattisgarh Tribal Development Project, Orissa Tribal Empowerment and Livelihoods Project, Swajal Project, Uttaranchal Decentralized Watershed Development Project, Livelihoods Improvement Project for the Himalayas etc to facilitate smooth implementation of the Integrated Livelihood Support Project. . The Rules framed herein are not meant to be static and they will need to be further evolved and improved as the Integrated Livelihood Support Project cruises along towards meeting its goal and objectives. These Rules will apply exclusively for the project implementation activities related to Integrated Livelihood Support Project and the existing Financial and Administrative Rules of Uttarakhand Gramya Vikas Samiti will apply for implementation of Livelihoods Improvement Project for the Himalayas. The Rules have been approved by the Management Committee of the UGVS in its meeting on ---------

447

Abbreviations and Acronyms used

AWPB Annual Work Plan and Budget.

Bank Means a Nationalized public sector bank / Uttaranchal State Cooperative bank / Regional Rural Bank / District Cooperative Bank or any other bank, mutually acceptable to Lead Project Agency and IFAD in which the funds of the UGVS may be kept in Current/Saving of fixed deposit account.

Budget Means the statement of estimated income and expenditure of the Samiti for any financial year as approved by the competent authority.

Chairperson Means Chairperson of the Project Management Committee of Integrated Livelihood Support Project

CPCU CPD DCMC

Central Project Coordination Unit for Integrated Livelihood Support Project Chief Project Director District Coordination and Monitoring Committee

DMU Divisional Management Unit of Integrated Livelihood Support Project

DM Financial Year

Divisional Manager of Project Division Office of Integrated Livelihood Support Project Means the year beginning on the 1

st April of a calendar year and ending on

the 31st March of the following calendar year.

FM Finance Manager AFM F & A Rules

Assistant Finance Manager Financial and Administration Rules

ILSP IFAD

Integrated Livelihood Support Project International Fund for Agriculture Development also written in short as Fund.

MC Management Committee of UGVS MIS Management Information System NABARD National Bank for Agriculture and Rural Development. Project Means IFAD assisted Integrated Livelihood Support Project PD Project Director of Integrated Livelihood Support Project PFA PMU

Project Financing Agreement Project Management Unit of Integrated Livelihood Support Project

PSC Project Steering Committee of Integrated Livelihood Support Project

PSWMD

Project Society of Watershed Management Directorate of Uttarakhand

SVCC Social Venture Capital Company SOE Statement of Expenditure UGVS Uttarankhand Gramya Vikas Samiti also written in short as Samiti.

UPASaC USCB

Uttaranchal Parvatiya Aajeevika Sanvardhan Company Uttaranchal State Cooperative Bank.

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UTTARANKHAND GRAMYA VIKAS SAMITI

FINANCIAL AND ADMINITRATIVE RULES

CHAPTER -1

SHORT TITLE AND COMMENCEMNT

1) The Management Committee hereby makes the following financial & administrative rules of the Uttarankhand Gramya Vikas Samiti for the administration and management of its affairs for the implementation of Integarted Livelihood Support Project and to achieve its objective under its memorandum of Association.

2) These rules shall be deemed to have come into effect from the date these rules are adopted by

the Management Committee of UGVS.

3) The Financial and Administrative rules are continued in Chapters – 1 to VIII. 4) The Project Management Committee shall decide on any matter having financial implications and

not covered under these rules . In emergent circumstances , the Chairperson shall have the power to take decisions in such matters and report the same to the Project Management Committee at its next meeting.

CHAPTER – II

DEFINITIONS

1. Unless otherwise provided, the terms defined under rules of the Uttarakhand Gramya Vikas

Samiti ( UGVS) are adopted mutatis- mutandis under these rules . 2. Unless there be anything repugnant in the subject of context, the terms which are defined below have been used in these rules in the sense explained here under :

a. “ Rules” means rules of the Uttaranchal Gramya Vikas Samiti ( registered under societies

Registration Act of 1860 ) along with the Memorandum of Association of the Samiti as modified form time to time in accordance with the procedures laid down in this regard.

b. “F & A Rules“ means the financial and administrative rules of UGVS for implementation of Integrated Livelihood Support Project framed by the Management Committee.

c. Management Committee means Management Committee of the UGVS. d. Project Management Committee means the Committee constituted for Integrated Livelihood

Support Project. e. Project means Integrated Livelihood Support Project ( ILSP)

CHAPTER –III

COMMITTEES TO BE CONSTITUTED BY THE SAMITI AND

FUNCTIONS OF PROJECT UNITS The Project Management Committee or the Chairperson or Officers authorized by them may appoint such committees as may be deemed fit, in order to achieve the goals and objectives of the ILSP /Samiti. The following committees may be constituted and their role defined by the Chairperson/Project Director of the ILSP. .

449

1) Project Procurement/purchase committee 2) Staff Selection committee. 3) Other committee/s as may be necessary for implementation of Project etc.

The committees at the district level may be constituted as per the requirement by the Divisional Management Unit (DMU) in-charge in consultation with the District Coordination and Monitoring Committee ( DCMC) under Integrated Livelihood Support Project. . Functions of Project Management Unit (PMU): The PMU is expected to coordinate activities related to: (i) community mobilization, SHG formation and development; (ii) capacity building for NGO staff as well as SHG members;(iii) flow of funds to all project activities including that of the SVCC if considered necessary; (iv) advocacy to usher in necessary legal changes (v) MIS, reporting, concurrent monitoring and impact evaluation as provided in the Project design; and (vi) internal administrative tasks, accounts and housekeeping functions.

The main functions of PMU include:

(i) coordinate and implement activities under Component 1 for Food Security and Livelihood Enhancement under the guidance of Project Management Committee and Project Steering Committee;

(ii) prepare AWPB and annual procurement plan and submit it to CPCU; (iii) finalize and execute partnership agreements/contracts with NGOs, service providers and

specialized institutions for implementing various project activities; (iv) establish an effective M&E and MIS system to track progress under Component 1 for Food

Security and Livelihood Enhancement from output, outcome and impact perspective; (v) prepare and submit consolidated annual and quarterly progress reports to CPCU; (vi) supervise and monitor the Sub-Project related activities and their progress towards

achieving physical, financial and outcome related targets; (vii) prepare sub-project financial statements and prepare statement of expenditures related to

sub-project expenditure for submission to CPCU; (viii) submit annual audit reports of PIAs and RIMS data to CPCU; and (ix) liaise with the State administration, line agencies and other PIAs to ensure coordination in

project implementation. Functions of Divisional Management Unit (DMU): This unit is the implementation arm of the PMU and must be seen as an integral part of the larger unit i.e. PMU. A core team comprising of the Assistant Manager Technical, Assistant Manager Agriculture, Assistant Manager Civil Engineering, Assistant Manager Planning and Monitoring and Assistant Manager Finance would support the DM at the DMU level. The Structure and time-line: The structure and functions of the Units in the Project along with the time line as suggested in the Project Design Report – Appraisal should be observed faithfully;

CHAPTER –IV

FUNCTIONS AND POWERS OF THE PROJECT AUTHORITIES

1. Chairperson (a) Shall ensure that the affairs of the Project are conducted efficiently; and in accordance with

the Detail Project Report – Appraisal of the Project, Project Implementation Manual (PIM), the Memorandum of Association, F&A rules and bylaws of the Samiti.

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(b) Shall preside over the meetings of the Project Management Committee. (c) May herself / himself call or by a requisition in writing signed by her / him may require the

member Secretary to call a meeting of the Project Management Committee at any time.

(d) May exercise casting vote in case the votes for and against a particular issue are equal.

(e) Shall be the sole and absolute authority to judge the validity of the votes cast by the members at all the meetings of the Project Management Committee. (f) Shall be entitled to invite any other person to attend the meeting of the Project Management

Committee provided that such persons shall have no power of voting and may direct the Member Secretary to call a special meeting of the Project Management Committee at a short notice in case of emergency.

2. Powers of Chairperson

Chairperson shall have full financial and administrative powers, including procurement of goods, works & services related to the implementation of the Project subject to fulfilment to procedures laid down in this regard.

3.

3. Project Director:

The Project Director shall be the principal executive officer of the ILSP and shall be responsible for proper administration of the affairs and funds of the ILSP and implementation of various activities of the Project in mission mode under the guidance of the Chairperson, Committees constituted under the Project, and the Project Management Committee of the Project. For effective discharge of functions s/he shall have power to:-

(a) Prescribe the duties of all officers and positions of the Project, (b) Exercise such supervision and disciplinary control as may be necessary. (c) Do all such lawful acts as may be necessary for the achievement of any of the Objects of the

Project with the approval of the Chairperson/Management Committee. (d) Co-ordinate and exercise general supervision over the activities of the Project, Including its

divisional offices. . (e) Help in conducting meetings of Project Management Committee of the Project and its other committees and keep a record of proceedings of these meetings in accordance with the

rules.

(f) Do all activities necessary to discharge all other prescribed responsibilities as per the Terms of Reference and as per the Project document..

(g) The Project Management Committee may assign other function as deemed necessary, to

him/her in furtherance of the objects of the Project. 4. Divisional Manager ( DM )

The Divisional Manager will be primarily responsible for implementation and review of the progress of Project at the field level. S/he shall have the same functional powers and responsibilities in relation to the Project at the district level as the Project Director has at the State level. S/he shall be the Member-Secretary of the District Coordination and Monitoring Committee headed by the Chairman of the Zila Panchayat.

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The Divisional Manager will discharge all other responsibilities as indicated in the Terms of Reference as per the Project Implementation Manual (PIM).

5. Finance Manager and Assistant Manager Finance at PMU and DMU

The Finance Manager and Assistant Manager Finance at PMU and DMUs would be responsible for: (i) budgeting and accounting of the Project. (ii) Expediting the release of funds for timely implementation of different activities by the PMU and the DMUs. (iii) Maintaining records of all financial matters related to the Project. (iv) Preparing requests for release of funds from the State as well as the Central Government and preparation and submission of withdrawal request (v) supervision and inspection of the finance section of DMUs and (vi) all aspects related to personnel and general administration matters at DMU level and (vii) to discharge all other prescribed responsibilities as per the Terms of Reference and as per the project document.

7. Powers for Procurement of works, goods and services – Project Director (PD)

(a) Works: The PD will be competent to accord administrative approval and sanction expenditure for all civil works executed under the Project up to Rs. 25.00 lakhs.

(b) Purchase of Stores: The PD will have competence to sanction expenditure

connected with and place orders for the purchase of all stores, machineries and equipments required for the Project up to a value not exceeding Rs. 25.00 lakhs.

(c) Procurement Committee: There shall be a Procurement Committee constituted with the

approval of the Project Director which shall scrutinize all cases of procurement of works, goods and services involving expenditure exceeding Rs. 50,000/- and the recommendation of the Procurement Committee shall be considered by the PD for sanctioning expenditure for procurements of any work, goods or service. The PD will sanction the expenditure and place orders for execution of the work of purchases of the goods or procurement of services up to value not exceeding Rs. 25.00 lakhs. In case of the value of the work goods or services exceeding Rs. 25.00 lakhs, the PD shall forward the proposal along with the recommendation of the Procurement committee to the Project Management Committee/Chairperson for sanction of expenditure.

(d) Power to enter into contracts etc:. The PD will have full powers to enter into agreement or contract with any executants or suppliers of goods or provider of services in connection with the Project and to approve payments for procurements made by the PMU, subject to compliance of the procurement guidelines as endorsed by the Project Management Committee and approved by the Project Steering Committee.

(e) Contingent Expenditure: The PD will have power to incur contingent expenditure for

smooth running of the PMU and DMUs establishment as follows:

(f ) Staff Remuneration etc: The Project Director will have full power to sanction expenditure for payment of salaries, wages and other forms of remunerations and allowances to the PMU staff as per the approved rates.

The procurement of Goods, Works & Services shall be carried out in accordance with Procurement Guidelines provided under Project Implementation Manual approved by the Project Management Committee in consultation with IFAD and amended from time to time in accordance with experiences gained during the course of implementation.

i) Rent rates and taxes

Full Power

ii) Other contingent Expenditure

i) Not exceeding Rs. 20,000/- in each case for recurring items. Ii) Not exceeding Rs. 50,000/- in each case for non-recurring items.

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CHAPTER-V

ANNUAL WORK PLAN, FLOW OF FUNDS AND ACCOUNTS

1. Annual work plan & budget (AWPB)

(a) CPCU shall consolidate the AWPB of the Project Parties namely UGVS, PSWMD and UPASaC for each project year. The same should be, no later than 60 days before the beginning of the relevant Project Year, forwarded to IFAD for approval after obtaining the approval of the Project Management Committee and Project Steering Committee.. If the Fund does not comment on the draft AWPB within 30 days after receipt, the AWPB shall be deemed approved.. CPCU shall also ensure making of necessary budgetary provision by State Government for implementation of the Project activities.

(b) In accordance with the Project Financing Agreement of the IFAD assisted Project, the PMU shall prepare a draft AWPB for each Project year for the Project activities in the State. Each draft AWPB shall include among other things, a detailed description of planned Project activities during the coming Project Year in the Project Divisions and the sources and uses of funds therefore. The AWPB shall provide distinct and separate categories for Project activities in the State. DMUs shall prepare their Divisional AWPBs accordingly well in advance and send to PMU for consolidation. The PMU shall submit the AWPB to CPCU for onward approval of Project Management Committee, Project Steering Committee and IFAD. If required, the PMU may propose adjustments, in consultation with CPCU, in the relevant AWPB during the relevant Project Year, which shall become effective upon retrospective approval by the Project Management Committee, Project Steering Committee the Fund and the State, (For minor changes such approval is not necessary).

2. Operations of Project Bank Accounts:

The UGVS shall open and thereafter maintain in a Nationalized Bank and /or Regional Rural Bank and / or Uttaranchal State Cooperative Bank and/or District Co-operative Bank or any other bank, current accounts/saving bank accounts, mutually acceptable to UGVS and IFAD denominated in Rupees for Project operations for PMU and DMUs. The Project Director and Divisional Manager are authorized to operate the accounts, within delegated powers by cheques jointly as under or with any other officer as may be authorized by the Chairperson.

3.

PMU Accounts (State Level) - Project Director (PD) and Finance Manager or Assistant Manager Finance or

an Officer of equivalent rank as per the Project Organogram for ILSP

DMU Account District Manager (DM) and Assistant Manager Finance or an Officer of equivalent rank as per the Project Organogram for ILSP

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(a) Finance Manager & Assistant Manager Finance are authorized to sign Cheques up to Rs.10,000 singly, subject to authorization of the expenditure by the competent authority.

(b) In case of DMU Divisional Manager and Assistant Finance Manager are authorized to sign cheques up to Rs. 50,000/- jointly and payments above Rs. 100,000/- will be released by joint signatures after approval of PMU. Payments above Rs. 100,000/- can be released by joint signatures only in case of salary without prior approval of PMU.

(c) The cheque books should be kept in the safe custody of the officer authorized by the PD at PMU and by DM at DMU level respectively.

(d) If at any stage during the Financial Year, the Manager Finance finds that some surplus funds are available for investment, he will bring it to the notice of PD. The PD may consider investing the same in short-term deposit with the Nationalized bank and or Uttaranchal State Cooperative Bank or Regional Rural Bank in consultation with the Chairperson. All investment (A/c Integrated Livelihood Support Project) of funds shall be in the name of Uttarakhand Gramya Vikas Samiti and shall be operated by the PD and Finance Manager jointly.

(e) Similarly in case of Divisional units, investment of surplus funds in short terms deposits can be made by the DM with the approval of PD and Chairperson and to be operated by DM and Assistant Manager Finance.

(f) The income from such investments shall be deemed to be the income of the Samiti or as may be decided by the State Government and shall be credited to interest account.

(g) The term deposit receipts shall remain in the custody of the officer authorized by the PD and Finance Manager of the Project or as may be authorized by the Chairperson in this regard.

4. Flow of Funds: The system for obtaining funds for implementation of the IFAD Assisted Integrated Livelihood Support Project, including flow of funds within the UGVS shall be followed as specified in Project Design Report –Appraisal for the Project

5 Accounts:

(a) For the Project Accounts, double entry system on cash basis and with Computerized accounting system should be followed on decentralized basis at PMU and DMU with appropriate heads of accounts as may be necessary for the Project. The PMU shall prepare receipts and payment accounts/ income & expenditure accounts and balance sheet which should depict complete picture of financial performance at the UGVS level for a given financial year. In addition, the PMU shall ensure that expenditure booked is duly reflected in the project financial statements such as Statement of Expenditure, financial achievement under the cost tables in AWPB or any other statement as may be required in accordance IFAD guidelines for Project Audit.

(b) In the same way the district units (DMUs) shall furnish the required information to the PMU for preparing the project financial statements and annual accounts of the Project and Samiti.

6. Accounting System: Guidelines for accounting of the Project expenditure and receipt of funds are given in Schedule-VI. These guidelines may be expanded or modified as per the needs and experience gained with the approval of the Project Management Committee/Chairperson. The project will maintain accounts and records in accordance with consistently maintained appropriate accounting practices. It is proposed that the project will maintain its accounts on TALLY financial software at all levels.

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7. Audit of Accounts:

The accounts of the Project will be audited by a Chartered Accountant appointed by the PD on approval of the Project Management Committee, General Body of the Samiti and IFAD. Representatives of the Controller and Auditor General of India (CAG) may also audit the accounts of the Samiti at such intervals as the CAG may deem necessary. A certified copy of the audited statement of accounts shall be delivered to the IFAD head quarters as required by the General Conditions of the Fund and the IFAD Guidelines for Project Audits, within six months after the end of the financial year. The project will have a cost effective but efficient internal audit mechanism. The internal audit shall be conducted by a Audit Manager. The TOR will include key aspects of financial

management and procurement contained in IFAD‟s fiduciary aspects checklist. The Internal

Auditor will submit quarterly reports to the Audit Committee headed by PD, Manager Finance, Audit Manager and any other officials as nominated by the Chairperson. . Corrective follow up action will be decided jointly by the Committee.

8. Expenditure and Payment to Money:

The system for incurring expenditure and payment of money etc. shall be followed as specified in Schedule-IV.

9. Other Matters:

(a) Print outs of Cash Book / Bank Book shall be taken out on weekly basis and filed in a separate file.

(b) It should be ensured by the PD & PM that there are no long outstanding entries in the suspense account.

(c) For meeting small expenditure and emergent needs a petty cash balance and register therefor shall be maintained by PMU and DMUs. The limit for holding petty cash balance is fixed at Rs 25,000 for PMU and Rs. 15,000 for DMU, which, can be revised by the Chairperson.

(d) Advance from petty cash should be drawn only with the sanction of PD and PM.

(e) It should be ensured by the PD and PM that monthly reconciliation of bank accounts are prepared by 15

th of every month by the Assistant Manager Finance. Difference if any shall be

settled promptly.

(f) Proper filling system and custody of files shall be evolved for the correspondence of the Project including those relating to the financial matters. A file register shall also be maintained.

(g) Letters shall be opened in the presence of PD and PM or will be opened by the officials authorized by PD and PM in PMU and DMU respectively.

(h) Salary of all positions will be credited to their bank accounts. It would facilitate if the Project Staff open their account at same branch of the Bank where the Project has its account.

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CHAPTER-VI

PROCUREMENT OF GOODS, WORKS & SERVICES

The procurement of goods, services & works shall be subject to the conditions of the funding agency and the decision of the Project Management Committee. As per the agreed minutes of negotiations for Project Agreement and Project Financing Agreement, it has been agreed to adopt Uttarakhand Procurement Rules, 2008 (UPR 2008) with increase in thresholds duly approved by the State Government. In case of gaps in UPR 2008, the IFAD Procurement regulations will apply.

The Integrated Livelihood Support Project Procurement Guidelines approved by the Project Steering Committee and Project Management Committee shall be followed for all procurement of goods, works and services under the Project.

CHAPTER – VII

RECRUTTMENT AND SERVICE RULES

1. Recruitment

Various positions under the IFAD Project have been listed in the Project Design Report – Appraisal. . The recruitment against these positions will be made by the UGVS from the open market by following a due process of selection, which would include (i) formation of a selection panel, (ii) advertisement in news papers and circulation to reputed NGOs /Govt. Depts., etc. (iii) short listing and interview and (iv) obtaining approval of Chairperson/PMC for appointment of selected candidates panel for key positions.

2. The selection committee will comprise of a nominee of the State Government, a prominent

state level/national level person having rich experience and credential of working both with government and /or NGO setup and the PD. In addition to above one or more specialist persons may be included in the selection committee as may be necessary.

3. The selection committee may follow the procedure as shown below in order to pick up the

best possible talent against the positions for the Project. (I) The qualification experience and the overall capability of the candidates to be selected for the

positions in the Project should be commensurate with the work requirement. (ii) The eligibility / qualification / experience as specified in the TOR for each post may be

considered while interviewing the candidate. (III) The prospective candidates to be selected should demonstrate empathy and sensitiveness

towards the poor and women, appropriate personality traits, attitude, management capacity and enthusiasm to achieve Project objectives.

(iv) The consolidated emolument package as indicated in AR for different category of positions shall be generally followed. However the selection committee may recommend higher/lower package as may be necessary in case of deserving/fresh candidates. What is important is selecting appropriate candidates.

4. Service rules

Based on the HR policies followed by UGVS under the IFAD assisted Livelihoods Improvement Project and ongoing developments in policy framework related to hiring of manpower resources manual for ILSP HR Policies and Procedures has been developed and approved by the Project Management Committee. The manpower deployed under the project shall be governed by the policies and procedures as laid down in the manual and as amended thereon from time to time.

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CHAPTER –VIII

DELEGATION OF POWERS

The Chairperson shall have full powers in all financial and administrative matters related to implementation of Integrated Livelihood Support Project in accordance with Project Agreement, Project Financing Agreement, F & A Rules, Project Implementation Manual and any other document approved by the Project Steering Committee and the Project Management Committee in consultation with IFAD.

Under exceptional circumstances, for matters not covered under the above documents, the

Chairperson may approve the same subject to retrospective approval of the Project Steering Committee and Project Management Committee in consultation with IFAD.

The Chairperson may delegate such powers to the PD and other Officials as may be necessary for

smooth implementation of the Project.

Project Director

The Project Director is vested with the following powers Besides the Chairperson may delegate further powers to PD and PM as may be considered necessary.

1. S/He shall have the power to execute‟ Memorandum of Understanding‟ (MOU) / Contracts with

Project partners to perform specific activities in furtherance of the objects of the Samiti and release funds required for performance of tasks as per the MOU/ Contracts. Subject to the condition that selection of NGOs shall be done with the approval of Chairperson and as per the criteria stipulated in AR/Project Document.

2. S/He shall have the power to release funds to the Project partners subject to the fulfilment of conditions stipulated in the Project Agreement, Project Financing Agreement etc.

3. S/He shall have the power to invest the surplus funds of the Project in short term deposits with

the Nationalized bank and/or Uttaranchal State Cooperative Bank and/or Uttarakhand Grameen Bank or any other bank in mutual consultation of UGVS and IFAD, with the approval of the Chairperson and without affecting the day-to-day functioning of the Project. She/He shall have the power to sign all other deeds and documents on behalf of the Project with the approval of the Chairperson.

4. S/He shall have the power to sign contracts with consultants relating to technical, scientific,

financial, managerial and legal matters subject to the provision made therefor in approved AWPB.

5. S/He shall have powers to make payment towards the procurement of goods, works and

services subject to fulfilment of Integrated Livelihood Support Procurement Guidelines provided in the Project Implementation Manual (PIM).

6. She/He shall have full power to incur recurring expenditure over staff salaries. TA, DA and

miscellaneous. Advance, as per F & A rules framed from time to time and terms of appointment of staff.

7. S/He shall have full powers to incur recurring expenditure towards office and related expenses

including for the items shown in Schedule-I. Under the Project technical assistance/training component of the Project S/He shall have full powers to release payment to the experts and consultants hired as per the AWPB and subject to observance of the ILSP Procurement Guidelines.

8. S/He shall have full power to incur expenses in organizing seminars, symposia, training and workshops as per the AWPB in order to meet Project objectives.

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9. The PD may delegate any part of the financial powers to the following officers of the Project or any other officer of the Project subject to the approval of the Chairperson:

( a ) Divisional Manager ( b ) Manager Finance ( c ) Assistant Manager Finance

Such delegation will be done through a written memorandum clearly defining the powers so delegated and the accountability there of.

10. The powers delegated to CPD, PD, DM and Manager Finance are indicated in Schedule- II.

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Schedule - I

1. Conveyance hire (Hiring of taxis).

2. Electricity and water charge, Municipal taxes.

3. Insurance for building, vehicles, other important assets and cash in safe/transit.

4. Furniture and fixture repairs including air conditioners fans, heater, coolers.

5. Motor vehicles- repair and maintenance and POL.

6. Expenditure for refreshment served to members of conferences/committees.

7. Expenditure on hospitality i.e. hosting lunch/dinner etc during mission visits, visits of

delegation etc to Project area.

8. Maintenance of Office Equipment.

9. Rent of Office premises and other premises for smooth implementation of Project

Activities.

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Schedule-II

Integrated Livelihood Support Project Other Financial and Administrative Powers of PD, DM and Manager Finance. Sl

No. Type of Power PD DM Finance Manager*

1. Permission of tour outside the state

Full powers except for self

------------- ----------

2. Purchase of books and periodicals

Full Powers

Rs. 1,000/- per month for books related to the project and one news paper

----------

3. Purchase of stationery Full Powers

Full Powers

----------

4. Taking office premises on rent

Full Powers

----------

----------

5. Purchase of furniture Full Powers

----------

----------

6. Civil works estimate approval, purchase of material and permission of construction

Full Powers (upto Rs.25 Lakhs)

----------

----------

7. Entertainment/ hospitality expenses in respect of Project activities

Full Powers

Rs. 1,500/- per quarter

----------

8. Purchase of equipment As per LCB limits

----------

----------

9. Annual maintenance/contract of equipment

Full Powers

Full Powers

----------

10. Approval of advertising expenses for tenders

Full Powers

----------

----------

11. Approval of tours and tour advances

Full Powers

Rs. 2,000/- per person

----------

12. Printing of stationery, forms, reports

Full Powers

Rs. 2,000/- at a time

----------

13. Appointment /taking on deputation against sanctioned posts

----------

----------

----------

14. a) b)

Leave sanction Contractual Staff Casual Leave Earned Leave Deputation Staff Casual Leave Earned Leave

Full Powers Full Powers Full Powers Full Powers except self

Full Powers Full Powers Full Powers ----------

---------- ---------- ---------- ---------- ----------

15. Telephone/internet bill payment

Full Powers Full Powers ----------

16. Expenses on postage etc Full Powers Full Powers Full Powers

17. Fixation of fees of legal advisor

Upto Rs, 5,000/- at a time

--------------- -------------

18. Payment of salary to officers & positions

Full Powers Full Powers -------------

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19. Signing payment vouchers Full Powers Full powers subject to the above powers & budget provision

Full powers along with PD/DM

20. Issue of money receipts Not applicable Full Powers Full Powers

21. Misc. Office expenses (including office cleaning arrangement).

Rs. 2,000/-per item. maximum Rs. 50,000/- in a month

Rs. 2,000/- per item, maximum Rs.25,000/-in a month

Rs. 1,000/- per item maximum Rs. 5,000/- per month in the absence of PD/DM

22. Reimbursement for local conveyance

Full Powers Full Powers -------------

23. Reimbursement of medical bills

Full Powers Full Power Full Powers except for self.

24. Expenditure on Training Project/Workshop / Seminaries.

Up to Rs. 1.50 lakhs at one time

Upto Rs. 50,000/- at one time

------------

*All bills are to be passed jointly as prescribed in Chapter-V of F&A Rules before releasing payments. *The powers mentioned above are subject to approval of the State Government and keeping them in conformity with Financial Rules of the State Government.

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SCHEDULE-III

FUND FLOW SYSTEM UNDER ILSP 1. Sources of Funds

Project Cost:

Total Project cost of ILSP at November, 2011 prices: Rs. 793.16 crores (US $ 167.87

million) over 7 years. Stakeholders Rs. (in Crore) Percentage Share

IFAD loan: 418.95 53 % State Government contribution: 237.28 30 % Formal financial institutions (credit): 98.00 12 % Beneficiaries: 38.93 5 %

_____________________________ Total 793.16 100% _____________________________

2. System of funds flow to PMU in the case of ILSP:

In accordance with Government of India procedures, the fund flow for the implementation of the Project would be as under:

a. IFAD loan funds would flow from Government of India to the CPCU via the State treasury. GOU funds earmarked for the Project would also be transferred to CPCU. CPCU would establish separate account with a Bank.

b. GOU would provide advance funds to the CPCU for Project Expenditures. The CPCU, in

accordance with the approved AWPB would provide advance funds to the Project Parties viz., UGVS, UPSaC and PSWMD to cover three months of operations. The Project Parties would establish Project Accounts with Banks in consultation with CPCU and IFAD.

b. CPCU would provide advance funds to the PMU for Project expenditures. The DMUs would

establish Project accounts with Banks acceptable to PMU. PMU of the UGVS would transfer funds to the DMU Project accounts in accordance with the AWPB, initially to cover three months of operations. The PMU would also fund some the Project‟s grant contribution as envisaged in the Para 27 of the Working Paper 12: Project Costs and Financing of Project Design Report - Appraisal. expenditure directly. The DMUs would release funds to the Project Stakeholders as per

C. Since most of the Project Stakeholders are not likely to be sufficiently strong financially to

incur expenditures in advance, the PMU / DMUs may ensure that the advance payments are adequate for smooth implementation of activities. It is suggested that the funds covering about three months of estimated costs would need to be advanced. The Project Management Committee/Chairperson may decide in this regard.

3. Reimbursement Procedures:

Project Parties viz., UGVS, UPASaC and PSWMD would prepare their SOEs of their expenditure for submission to the CPCU and IFAD. The CPCU would forward the reimbursement claims to the Controller of Aid, Accounts and Audit of the Department of Economic Affairs (DEA), Ministry of Finance, GOI with a copy to the IFAD Facilitation Cell at New Delhi. Compilation of the SOEs would comply with the standard procedures of the IFAD Facilitation Cell at New Delhi and as normally used by GOU that are acceptable to IFAD.

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Project Stakeholders would submit their SOEs to the concerned DMU who would compile them together with its own expenditure for submission to the PMU. PMU, in turn, would compile the SOE for UGVS as a whole including its own expenditure for onward submission to the PMU.

4. This would mean as under:

State Govt. will, out of its contribution envisaged provide funds to the CPCU every Quarter / half year in advance on the basis of the AWPB to enable the CPCU to incur expenditure for implementation of the Project activities. CPCU would advance the funds to Project Parties viz., UGVS, UPASaC and PSWMD to incur the eligible expenditure under the Project and submit the consolidated Statement of Expenditure (SOE) to the GOI for reimbursement.

The amount reimbursed by the GOI to State Govt. would be passed on to the CPCU by the Govt. as replenishment along with the State Govt. share (gap in the amount of expenditure and the amount reimbursement by GOI): subject to the condition that the overall contribution of the State Govt. would be as stipulated in the Detail Project Report – Appraisal and Project Financing Agreement. Shortfall if any in the Funds left with the CPCU including the replenishment mentioned above vis-à-vis the budgeted expenditure for the next quarter/ half year will be further provided by the State Govt. as advance.

5. The total amount thus given as advance and release of its share in SOE to the UGVS in the above manner by the State Govt. would work out equal to the total share of the State Govt

as envisaged in the Project over the period of 7 years.

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Schedule - IV

Expenditure and Payment of Money

1. No officer shall incur expenditure or enter into any liability involving expenditure or transfer of

moneys or investment or deposit from the Project account unless such expenditure or transfer has been sanctioned by general or special orders of the competent authority.

2. The following should be the general principles governing all expenditure incurred from the

Project funds –

i) That there should be provision of funds authorized by competent authority fixing the limits within which expenditure can be incurred.

ii) That the expenditure incurred should conform to the relevant provisions of the rules of the Project.

iii) That there should exist sanction either general or special accorded by the competent authority, authorizing the particular item of expenditure.

iv) Financial and administrative powers will be exercised in accordance with the provisions kept in AWPB.

3. All sanctions of expenditure shall indicate the details of provision under the relevant budget head. A sanction or order shall come into effect from the date of issue unless the

competent authority specifies any other date.

4. No money should be drawn from the Bank unless it is required for immediate disbursement/replenishment or petty cash balance.

5. Every Officer incurring or authorizing expenditure from the Project funds should be

guided by high standards of financial propriety. Every officer shall exercise the same vigilance in respect of expenditure incurred from the Project funds as a person of ordinary prudence would exercise in spending his own money;.

Among the Principles on which emphasis is generally laid are the following:

i) The expenditure should not be prima facia more than what the occasion demands.

ii) No authority should exercise its powers of sanctioning expenditure to pass an order, which will be directly, or indirectly to its own advantage.

6. The Project moneys should not be utilized for the benefit of a particular person or section of the people, unless

a) a claim for the amount could be enforced in a court of law, or

b) the expenditure is in pursuance of a recognized policy or custom.

7. The amount of allowance granted to meet expenditure of a particular type should be so regulated that the allowances are not on the whole a source of profit to the recipients.

8. No officer of the Project shall pass his own expenditure except as otherwise provided.

9. Each Head of office is responsible for enforcing financial order and strict economy at every step and also for observance of all relevant financial Rules by all.

10. Each Head of office must see not only that the total expenditure is kept within the authorized limits but also that the funds allotted are expended in the interest of the Project and only upon the objects for which the money was provided.

11. Every claim received in the Project Office shall be checked before payment.

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12. All bills presented for payment shall be examined in accordance with the relevant provisions in the rules and the Sanctioning Officer shall check, if the claim is admissible, if the authority is proper, if the signature is true and in order and if the receipt is a legal acquaintance and thereafter, make an order to pay under his signature on the bill (s). The order shall specify the amount payable both in words and in figure.

13. No claim against the Project, which is not presented within forty five days, will be entertained without a special sanction of the Chairperson.

14. No cheque shall be signed unless required for immediate delivery to the payee or drawn in favor of a person other than the actual payee.

15. Delay in the payment of money indisputably due by the Project is contrary to all rules and budgetary principles and should be avoided.

16. Money paid from the Project funds should, under no circumstances be kept out of accounts a day longer than is absolutely necessary.

17. Periodical review of the Samiti‟s revenue, expenditure, investments etc. should be done.

18. Keeping a constant watch over the progress of expenditure is and important step towards financial and budgetary control. It should be always ensured that the expenditure is kept within the budget provision and, where necessary, timely action is taken to obtain funds by permissible re appropriation of funds from the available savings with the approval of the Competent Authority.

Financial Advice /Concurrence

19. The Finance Manager is responsible for exercising general supervision over the funds of the Project. He is also to advise the Project as regards its financial policy and management.

20. If any Division / Section of the Project require advice on financial or accounting matter, it should be referred to the Finance Manager / Assistant Manager Finance.

As a general rule:-

a) In all important matters and transactions with financial implications, advice of the PD/ DM should be obtained at PMU/DMU.

b) The proposals for financial sanction should be routed through the Finance Manager / Assistant Manager Finance.

21. PMU/ DMUs of the Samiti shall afford all reasonable facilities to Auditors for the discharge of their functions and furnish all possible information required by them for the preparation of any official account or report. Bills, information, books or other documents shall be withheld for presentation to the Auditors as and when required by them.

22. A logbook shall be maintained on daily basis for each vehicle and motorcycle. Proforma for Log Book is attached as Annex 1.

23. A logbook shall be maintained on daily basis for each generator, photocopier and any other equipment as directed by management. Proforma for Log Book is attached as Annex 2.

Prompt disposal of Audit Observation

24. It shall be the responsibility of the Finance Manager under the supervision of the PD that replies to Audit observations are furnished within the prescribed time and no objection is allowed to remain unsettled for an unduly long period.

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Schedule-V

ACCOUNTING OF ILSP EXPENDITURE & BOOKS OF ACCOUNT

PART – I

1 INTRODUCTION 1.1 This Schedule of the F&A Rules, prescribes the general outline of the system of the accounts

for accounting of „Receipts‟ as well as „Expenditure‟ incurred under ILSP. Further, it also outlines certain basic procedures to be followed for financial sanctions and approvals to ensure transparency in the operations of the CPCU / PMU.

1.2 The Books of Account and all other memoranda and records, which support in any way the

entries therein, shall be maintained in such a manner as to disclose full information relating to any account. The entries in each account shall be supported by such detailed information as will render certain identification and verification of recorded facts. All books and records shall be maintained on daily basis and all day-to-day transactions shall be recorded in such books & records on every day. All books and records shall be preserved and filed in such a manner as to readily permit examination and Audit thereof by the Auditors appointed by the PMU, Project Authorities and A.G. Uttaranchal and such other agency, whenever necessary.

PART-II 2.1 ACCOUNTING PRINCIPLES & BOOKS 1. Double entry of accounting shall be adopted by the /PMU. 2. The financial year of the PMU shall be from 1

st April to 31

st March.

3. Receipts and payments account and/or Income and Expenditure account for the whole year and Balance Sheet as at Year-end shall be prepared within 3 month after the closure of each financial year.

4. The maintenance of records shall be in such a way as to comply with requirement of Statutory Acts such as the Income Tax Act, 1961, PF/ESI Acts, Societies Registration Act, etc.

5. All the accounts shall be balanced and monthly trial balance shall be prepared within the first week of the subsequent month.

2.2 MAINTENANCE OF BOOKS OF ACCOUNTS I) The books of accounts will be maintained in a computerized form using Accounting software

suitable for the Project. Tally accounting software is one of the cost effective softwares and may be considered for the Project accounting.

ii) Entries of all transactions during the day shall be made in the Books on the same day. A

printout of the weekly Cash Book and Bank Book shall be taken after such entries. The Manager Finance / Assistant Manager Finance shall verify all the entries therein, put up the same to PD / DM for information and preserve the same in a proper file.

2.3 The following books of account shall be maintained by PMU: i) Cash-Books, Bank-Books and Day-Book (Prime Book of entry) ii) General Ledger iii) Imprest and petty cash book iv) Registers like: Salary Register, Assets Register, Stock Register, Fixed Deposit Register, EMD

/ Security Deposit Register, Register of Deposit, TA bill and general bill passing registers, Vehicle Log Book, etc. ( Standard formats provided at Annexure )

Besides the above following subsidiary Ledgers/Registers shall be maintained: DMU – wise advances register, Staff Advances Register, Sundry Advances Register, Sundry

Creditors Register, etc.

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2.4 The accounting heads along with Chart of Accounts are provided at Annexure . To ensure

standardization of accounts across the Project, any new head shall be opened after due authorization from the Manager Finance at PMU.

Journal Book / Day Book 2.5 This is generally maintained for recording transfer vouchers (i.e. vouchers prepared for

transactions not involving cash or bank account). In the normal course the adjustment entries are to be passed for adjustment of advances in the final bills, rectification of mis-classified income and expenditure, depreciation amount on the assets etc. All such entries are normally made in the Journal book, whereas entries regarding transaction involving cash and bank account are made in cashbook and bankbook where there three books are maintained.

2.6 General ledger is maintained to record in individual accounts the day‟s transactions relating to

each kind of receipt and expenditure. This ultimately helps in posting of day-to-day transactions in the respective accounts in General Ledger. Balances (debit/credit) shown by the General Ledger accounts help in preparing the trial balance, statement of Income and Expenditure and other financial statements. General Ledger shall be posted on the basis of original entries recorded in the Day Book, cash book and bank Book. In addition, subsidiary ledgers/registers are also to be maintained to record details of various transactions to supplement the general ledger. The Manager Finance / Assistant Manager Finance shall review the General Ledger accounts periodically.

Bank Reconciliation

2.7 At the end of each month the balance in each Bank account should be reconciled with the

balance appearing in the Bank passbook/bank account statement. For the purpose Bank account statement/up-to-date posted bank passbook should be obtained periodically. If the balance shown by Bank a/c per the General Ledger does not tally with the balances disclosed by the Bank‟s books, items of differences may have to be identified and included in the reconciliation statement. This Statement is to be prepared by the Assistant – Finance & certified by the Manager Finance / Assistant Manager Finance every month by 10

th of the

succeeding month. Follow up action where necessary shall also be initiated by the Manager Finance / Assistant Manager Finance. Inter Unit Reconciliation

2.8 A systematic mechanism for reconciliation of inter-unit fund transfer from PMU to DMU and Implementing Agencies or vice-versa is to be developed at PMU level. At the time of monthly consolidation of accounts funds remitted from inter unit accounts must be tallied with funds received by inter unit accounts. This reconciliation will be done as under.

I) PMU will open separate ledger accounts for fund transactions with DMU and Implementing Agencies.

II) DMU and Implementing Agencies will open separate ledger accounts for fund transactions with PMU.

III) PMU/DMU/Implementing Agencies may incur expenditures on behalf of each other after approval but for the purpose of expenditure booking in correct location and category these expenses transactions will be treated as fund paid on other‟s behalf location and expenditure will be accounted for by the location to whom it relates. It should be ensured that any inter unit transaction between DMUs is routed through PMU only.

iv) A separate cheque /draft in transit account will be opened for booking that cheque/draft which have been dispatched by one location but not received by other location at the month end.

v) PMU will open separate ledger accounts for fund transactions with DMU and Implementing Agencies.

vi) The CPCU will open separate ledger accounts for fund transactions with UGVS, PSWMD and UPASaC.

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PART-III

Payment & Accounting Procedures, etc.

VOUCHER AND SUPPORTING DOCUMENTS

3.1 Generally, Vouchers to be used for recording transactions involving cash are called Cash

Vouchers, while those used for recording transactions involving bank account are called bank vouchers and vouchers used for recording other transactions (involving other then cash or bank accounts i.e. transactions of adjustment nature) are called Journal/Transfer Vouchers.

i) Therefore, the following types of vouchers will generally be used in PMU & DMU: - Cash Vouchers. - Bank Vouchers. - Journal (Transfer) Vouchers. ii) The vouchers shall be self-contained in all respects and shall be printed/prepared in proper

formats. 3.2 The bills attached to the voucher shall be in original. All other supporting documents

pertaining to a particular voucher shall be tagged together with the voucher only. i) To the extent possible it shall be ensured that the attachments to the voucher do not

have over writings and corrections of any kind. However, if it is unavoidable that a document having corrections has to be used as the supporting document, the Manager Finance/ Assistant Manager Finance shall personally authorize the same.

ii) Once payment is made for a particular bill, ‟paid‟ rubber stamp along with the date of payment shall be affixed on the voucher as well as on all the supporting documents.

iii) Each type of voucher should preferably be prepared in different coloured paper.

3.3 Points to be checked before passing of Vouchers

The following shall be checked before passing a voucher for payment. The Manager Finance / Assistant Manager Finance shall also do the following checking before signing the vouchers:

i) Whether the expense is allowable i.e. eligible under the Project ii) Whether prior administrative and financial approval has been obtained from competent

authority, as per approved delegation of powers. III) Whether the approving authority is authorized through the internal delegation of powers to decide on the same. iv) Whether all the necessary supporting documents are available with the voucher. v) Whether all the terms of the purchase order/work order have been satisfied, vi) Whether the receipt of the material has been properly entered in the stock Register. vii) Whether the purchases, if any , made are in accordance with the approved procurement

guideline viii) In case the voucher is a bank payment voucher, whether sufficient funds are available in the bank account and cheque has been issued within the limits prescribed in the Delegation of Powers.

3.4 Cash Payment Procedures, etc. a. Cash payment shall be made only under the following circumstances: i) For payment of honorarium & local conveyance. ii) For advance payment to employees in case of exigencies. iii) For purposes such as payment to participants at training/workshop iv) For smaller payments, such as, to sweepers, gardeners, etc. for which usually the payment cannot be made by account payee cheque. v) For postage and telegram charges. vi) Purchase of non-judicial stamp papers and court fee stamps, if any.

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vii) For any other statutory payments, where it is necessary to remit such payment by cash only. No other cash payment is allowed except when sufficient cause is there & the PD has approved the same.

b. Cash payment by a single voucher, in any case, shall not exceed the maximum limit for cash payment, as set out in the Income Tax Act of 1961 and the Income Tax Rules, as applicable from time to time. (The current maximum limit being Rs 20,000/-)

c. It shall be ensured that revenue stamp is affixed for all cash payments exceeding Rs. 5000/- or such limit as applicable from time to time as per law. The cost of the revenue stamp shall be recovered from the payee.

d. PMU shall procure a proper fire proof cash safe, with double lock for safe custody of cash and other valuables. e. The first key of the lock shall be in the custody of the Assistant Finance and the second key

with the Manager Finance / Assistant Manager Finance or other Officer authorized by PD. F. The duplicate keys of the cash safe shall be properly sealed n cloth-lined envelope and

kept in the safe custody of the banker by the PMU and DMU against proper receipt for the same.

g. The Manager Finance / Assistant Manager Finance shall verify the physical cash balance in the cash box with the book balance randomly from, time to time. However, the PD/DM shall arrange for verification of the cash balance at least once in a month by another Officer.

h. Acknowledgement of receipt of cash shall be taken on the cash voucher/s from the payee/s. i. At the end of each day, the Day Book, petty cash book ( if maintained separately for posting

vouchers involving small expenses like postage, newspaper, etc.) and Imprest cash-book (maintained for giving advances in emergent situation which are to be recouped next day) shall be closed and the denomination of the physical cash balance shall be written and signed by the Accountant & Assistant Manager Finance/ Manager Finance in a book . The physical cash balance shall also include revenue stamps, etc.

j. The PD shall decide the maximum petty cash balance that needs to be kept in the cash safe by considering the followings.

i) The vicinity of the bankers for cash withdrawal. ii) Average daily requirement for cash. iii) Unforeseen requirement for cash.

Initially the PMU may keep imprest cash of Rs. 25,000/- and DMU may keep cash balance of Rs. 15,000/- .The balance at the month end should be minimum.

k. The Manager Finance shall with the approval of PD arrange to take an insurance policy for

cash-in-safe and in transit against all risks for the amount equivalent to the maximum cash balance.

3.5 Bank Payment Procedures

If terms of order/agreement do not require advance payment then all efforts will be done to clear dues of suppliers, NGO‟s and other related parties within reasonable period. Generally 15 days period from the date of supply of goods/completion of works & services may be taken to clear dues. All procedural formalities i.e. inspection/approval goods /works/services, entries in fixed assets/stock registers will be completed within this period before releasing payment. If concerned/inspecting officer is not satisfied with the quality of goods/works/services then concerned party will be intimated to rectify/replace the same within above period.

3.6 Except in cases where the PMU needs to withdraw cash for office use, all cheques issued shall be crossed „A/c Payee Only” clearly written on the cheque or by affixing a rubber samp.

i) All cheques shall be written in clear, legible handwriting, using special indelible ink pens. The counterfoil of the cheque shall also be filled and preserved in serial order. ii) A cheque-safe sticker or a piece of transparent cello tape shall be affixed on the „amount

in figures‟, to prevent tampering with the figure. iii) All cancelled cheques shall be clipped / retained in the cheque book itself. iv) The Chairperson shall approve the signatories for operating the bank account/s of whom

at least two can sign the cheques in emergent situation. Otherwise normally the Bank Account would be operated by Manager Finance / Assistant Manager Finance , as a single signatory upto an amount of Rs.10,000/-Where the withdrawal is more than Rs.10,000/-

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cheques shall be signed jointly by Manager Finance/ Assistant Manager Finance and either PD or another officer nominated by him. Till Manager Finance / Assistant Manager Finance is not posted CPD / PD can be authorized by the Chairperson to operate the account singly.

v) The PD shall approve all the bank payments; only thereafter such payments should be effected. vi) The authorized signatories, who sign the cheque, shall also sign on the voucher to confirm their having signed the cheque for payment. vii) The accounts section shall maintain a cheque issued register, wherein entries shall be made on daily basis in respect of the cheques issued. viii) Before issuing a cheque the Manager Finance / Assistant Manager Finance shall ensure that

there are sufficient funds in the bank account. ix) The Manager Finance / Assistant Manager Finance shall arrange to collect the bank

statement/updated passbook from the bankers every month and keep the same in the concerned file.

x) In case a party desires to take the payment by way of demand draft or a banker‟s cheque, the Accounts section shall arrange to procure demand draft or banker‟s cheque. While preparing cheque for the demand draft, the cheque shall be drawn in favour of the Bank as “Yourself – for issue of DD as per list overleaf”. The name of the party in whose favour the DD has to be prepared shall be clearly mentioned overleaf of the cheque along with the amount. Generally bank charges for issuing draft/pay order will be deducted from the party‟s bill unless specified otherwise in the terms of order/agreement.

3.7 Posting of vouchers

a. After posting all the vouchers in the Cash Book, Bank Book, Day Book and Petty Cash Book (when maintained), the posting in these books will be checked independently by the Manager Finance / Assistant Manager Finance.

b. Thereafter from the Day Book, cash & bankbook the postings shall be made in the General Ledger in the respective accounts in the debit or credit columns as the case may be. Brief particulars shall also be indicated in the General Ledger Accounts. These postings in the Sub-heads/heads of the General Ledger Accounts will also be checked daily by Manager Finance and balances will be worked out on daily basis.

3.8 General Ledger

At the end of the month the Finance &Administration (F&A) Department should ensure that all

entries have been incorporated in the General Ledger. The same may also be verified from a

checklist of records from which entries are posted in the General Ledger.

3.9 Trial Balance

Having ensured that all entries have been incorporated in the General Ledger and also after ascertaining the arithmetical accuracy of the balances in the General Ledger, Trial balance i.e. a list of Accounts and their balances either debit or credit, should be drawn up every month by 10th of next month for the previous month.

Normally the trial balance should tally i.e. the total of debit and credit side will be equal. Whenever there is an error due to arithmetical inaccuracy or omission in posting in the General Ledger trial balance may not tally. In such cases rechecking of postings and totalling, etc. may be carried out and trial balance should be made to tally.

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3.10 Registers

Registers are to be maintained to facilitate tracing out the outstanding items for settlement and for keeping a track of certain payments & receipts, which are in the nature of advances as well as sundry liabilities. Details for posting in some of the important Registers are suggested as under:

3.11 Sundry Advances Register/Ledger

(i) The original entry in this register shall be a debit entry and the reversal entry will always be a credit entry. Therefore, without an original debit entry there will not be a reversal credit entry. Hence, if a debit entry is passed and reversed on the same day, the debit voucher will be posted first and then the credit voucher.

(ii) Full particulars will be given in particulars column for all the debit entries.

(III) In case a debit voucher consists of different individual debits, the break up of amount shall be shown in the column “Amount of individual item”.

IV) In case of credit vouchers, the date of passing the original debit entry for that credit entry will be written in the voucher as also in the column “Date of Contra” against the credit amount. The date of passing the reversal entry will be written in the column “Date of Contra”* against the original debit entry.

(v) If a credit voucher comprises of reversal entries for debit entries passed on different dates the break up of the amount will be shown in the column “Amount of individual item” and the respective date of passing the original entry will be written in the column “Date of Contra Provided it is possible to have these columns in the software.

(vi ) Since the Sundry Advances Account is an intermediary account the debits will not be allowed to remain outstanding for more than three months. To ensure this, the outstanding entries under each of the heads of account in the Register will be listed out at the end of each quarter. The list will then be put up to the PD for perusal. Effort will be made to keep the outstanding balance in the Sundry Advances Account at minimum. S/He will ensure that no items shall remain outstanding for more than three months.

3.12 Sundry Creditors Register/Ledger

(i) Full particulars will be given in the „particulars‟ columns for all the credit entries.

(ii) In case a credit voucher consists of different individual credits, the break up of amount will be shown in the column “Amount of individual items”.

(iii) In case of a debit voucher, the date of passing the original credit entry for that debit entry will be written in the voucher as also in the column “date of contra” against the debit amount. The date of passing the reversal entry will be written in the column “date of contra”.

(iv) If a debit voucher consists of reversal entries, for credit entries passed on different dates the break up of the amount will be shown in the column “amount of individual items” and the respective date of passing the original entry will be written in the column “date contra.

(v) Since the Sundry Creditors Account is an intermediary account, the credits will not be allowed to remain outstanding for more than three months. To ensure this, the outstanding entries under each of the heads of account shall be listed out every month.

The list will then be put up to the PD for perusal. Efforts should be made to keep the

outstanding balance in the Sundry Creditors Account at minimum. The Manager

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Finance / Assistant Manager Finance will ensure that no items shall remain outstanding for more than three months.

3.13 Cheques issue / Collection Register

Bank wise cheque issued / sent for collection register will be maintained and cheques will be issued only after entering the particulars of the same in the cheques Issue Register. The Register will contain name of the party in whose favour the cheque has been issued, purpose of issue, cheque no., amount etc. Cheque Books will remain in the joint custody of the F&AO and PD/or an officer nominated by him in writing in this regard. In this register particulars of cheque/draft sent for collection will also be entered immediately at the time of receipt/depositing in the bank and bank balance will be calculated on daily basis.

3.13 PETTY/IMPREST CASH BOOKS

IMPREST CASH BOOK

To enable the office to meet any unforeseen expenditure like urgent purchase of rail/air tickets, sudden deputation of staff on tour, etc. generally after normal banking hours (where the option of withdrawal from bank is not available), suitable imprest Cash limit will be sanctioned by the PD. The imprest Cash shall be used only for grant of advances beyond banking hours due to exigencies and shall not be used for meeting normal expenditure. Advances thus made from the imprest cash shall be recouped on next working day by booking the withdrawal under appropriate head of account.

(i) Accounting Entries for drawing the imprest cash for the first time:

Dr. Imprest Cash a/c

Cr. Bank a/c

(ii) No vouchers shall be passed involving the imprest cash a/c for subsequent withdrawal /deposits made from/in the imprest cash unless there is enhancement or reduction in the amount of imprest cash limit sanctioned earlier.

(iii) For drawing advance from imprest cash, an application shall be made to be Officer-in-Charge.

(iv) The amount withdrawn from Imprest Cash shall be replenished on the next working day by the withdrawing staff by debiting the appropriate account head.

(v) A Register shall be maintained to record the transactions of Imprest Cash.

3.15 PETTY CASH BOOK

The Petty Cash Book will be maintained by the PMU/DMU as and when considered necessary. Particulars of receipt expenditure and balance shall be recorded in it on day-to-day basis. The particulars of expenditure will be narrated in brief in the petty cash voucher. These vouchers shall be serially numbered in a continuous series beginning with 1 from the first of every month till the end of that month. The cash memos, bills receipts, etc. shall be attached to the vouchers.

1. The vouchers as well as attached cash memos etc. shall be branded with dated

“paid” stamp and filed chronologically in a separate file. 2. The operation on the petty cash account shall be restricted to the minimum extent

and shall cover only petty expenses like those on revenue stamps, postage, daily conveyance, courier charges, cash purchases of small items etc.

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3. The transactions routed through petty cash register for a month will be

summarized and a consolidated transfer voucher will be passed for incorporation in the Day Book and the General Ledger on the last day of a month before the trial balance is drawn up.

3.16 GENERAL INSTRUCTIONS FOR MAINTENANCE OF BOOKS OF ACCOUNTS

(i) Every entry in the registers maintained manually will be written in ink.

(ii) Every entry will be duly authenticated by the concerned official posting it and by the Manager Finance in token of having checked it.

(iii) All the entries will be posted date-wise.

(iv) Due care will be taken in respect of date, digits and columns.

(v) It will be ensured that there are no alterations, corrections, overwriting, etc. In an event of any alteration/correction/overwriting, the same will be duly authenticated by the checking official.

(vi) If any alteration/correction is to be carried out, it will be done by neatly cancelling the narration/figures other than those appearing under the column for total or progressive total.

(vii) Under no circumstances alteration, overwriting or cancellation will be allowed in the column for total or progressive total, For a wrong entry a cross will be put in red ink against such figures and the correct figures re-written just below the incorrect figure with the suitable remarks as indicated below.

If the progressive total is a credit balance, the indication in the particulars column will be “By correct balance”. Similarly if it is a debit balance the indication shall be “To correct balance”.

(viii) All the debit balances will be written in red ink and credit balances in blue or black ink in manually maintained books of accounts.

(ix) While carrying over the balance amount the last entry on the existing folio will be “carried forward to folio no Similarly the first entry on the new folio will be “brought forward from folio no for each account in the General Ledger.

(x) All vouchers shall be posted in the books of accounts on the same day.

(xi) The summation of debits and credits will be taken at the end of each folio as well as at the end of each month and will be cross-tallied with the closing balance of that folio and month respectively.

(xii) The books of account will be maintained on the financial year basis i.e. from 1 April to 31 March. If considered necessary new set of registers/ledger will be used for subsequent financial year.

(xiii) After completion of statutory as well as internal audit of a financial year, the books of accounts along with related vouchers pertaining to that financial year would be packed in a bundle and transferred to the Record Room/ separate cupboard.

(xiv) All transactions will be rounded off to the nearest Rupee (fraction of 50 Paise and above to be rounded off to the next higher Rupee and fraction of less than 50 Paise to be ignored).

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3.17 ACCOUNTING PROCEDURE FOR DEPOSITS PAID

The following accounting procedure will be adopted in case of deposits (refundable and non-refundable) paid to Electricity Boards, Water Boards, Municipal Authorities and Allied Agencies, Government Departs, etc. in respect of own premises and leased/rented premises.

3.18 Refundable Deposit

An amount paid as refundable deposit will be booked under the account head “Deposit with Government Departments and Others A/C” with appropriate sub-head. The original deposit receipt will be kept under safe custody. However, a Xerox copy of the deposit receipt will be attached to the concerned voucher for ready reference.

3.19 Non- Refundable Deposits

(i) The non-refundable deposit, such as amount paid to the Electricity Board, Telephone Authority, etc. as contribution to the expenditure incurred by them in connection with laying cables, installation of transformer, etc. for electric, etc. connections to the premises owned by the Office, will be booked under the head expenditure.

(ii) Where such deposit is paid in respect of the premises not owned by the Office, the expenditure will be charged to the appropriate expenditure account.

The details of such deposits would be entered into the Property Register.

3.20 Structuring the Expenses Account

a. The Budget items would broadly determine the expense account to be maintained. However, at times, the budget items may indicate a category of expenses, in such circumstances, the expense accounts head/sub head may have to be defined within it for specific expenses.

b. Further, structuring of the expense accounts should be viewed from the perspective of expenditure control. For example, travel expense for a category of staff might have been budgeted under a single budgeted item. However, for control purposes it may be essential and convenient to keep separate account of the travel expenses incurred by each of the staff in the same category.

c. There shall be restricted access, permitted only to the Manager Finance / Assistant

Manager Finance PD, for opening of new ledger accounts in the software with approval of PD. This is mainly to ensure that there is no duplication in the creation of ledger accounts and also the accounts are created in the proper groups.

d. The Manager Finance shall keep a printout of the account heads / sub heads for

reference at the time of voucher preparation.

3.21 Staff Advance Accounts

i) Advance to the staff shall be released only with prior approval of the PD. ii) Advances may be paid by „bearer cheque/cash‟. The PMU/DMU shall issue a memo

stating the amount and the purpose of release of the advance, to ensure that the office personnel do not have any income tax problem in future with respect to these transactions in their bank account.

iii) In case the staff has old outstanding advances, further advances shall not be released

without satisfactory explanation stating the reason for the outstanding advance.

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3.22 GENERAL INSTRUCTIONS FOR ANNUAL CLOSING OF ACCOUNT

It will be appropriate to make provisions for unpaid liabilities and pre-paid expenses at the

end of the year so as to ensure that the accounts reveal the true position. Therefore only for the purpose of preparing financial account for Income tax and Societies Registration Act or any relevant Act the following procedures may be followed for making such provisions, which are reversed on the next date in the next financial year. The depreciation may be charged by way of creating depreciation reserve/fund.

Annual Provision for liabilities:

3.23 At the end of every accounting Year provision is required to be made for the revenue/capital expenditure incurred during the year but not paid, by debit to concerned expenditure account and credit to “Sundry Creditors A/c-Annual provision”. However, no provision needs to be made in case of revenue expenditure upto Rs. 10,000/- for each sub-head of account. In other words, all revenue expenditure the total of which exceeds Rs. 10,000/- for any sub-head of account shall only have to be provided for.

3.24 No provision will be made on the basis of budgetary sanction and purchase orders. The provision will be made only on receipt of materials/services/benefits during the relevant accounting year.

3.25 As regards the outstanding amount of Tour Advance, Advance for training as on 31

March i.e. close of the accounting year, a provision will be made for the total amount of outstanding advance less the amount refunded, if any, by the staff members. Further, a provision will also be made in respect of pending traveling bills for which no advance has been given. The amount of provision in such cases will be equivalent to the amount claimed in the bills.

3.26 A provision will be made towards contribution to be made to Provident Fund in case it is applicable.

Provision for prepaid expenses

3.27 If, prepaid amount of individual item of expenditure (i.e. expenditure pertaining to the succeeding accounting year) is Rs. 10,000/-or more, such prepaid expenses will be

debited to “Sundry Advances a/c Pre-paid Expenses” by crediting the relevant expenditure account. This entry will be reversed on 1 April by debiting the concerned head of expenditure and crediting “Sundry Advances a/c Pre-paid Expenses”. In cases where prepaid expenses for individual items/liabilities are less that Rs. 10,000/-, they will be charged to the revenue expenditure of the current year.

3.28 At the time of annual closing of books of account i.e. on 31 March, depreciation will be

provided on all the fixed (movable and immovable) assets (excepting freehold land if any owned by the office) appearing in the books of account by creating depreciation reserve at the rates of depreciation followed by the State Government.

3.29 Closing of accounts in the General/Subsidiary Ledgers

At the time of annual closing of book of accounts necessary provisions will have to be made to comply with the provisions of Income Tax Act, Societies Registration Act and other applicable Acts.

3.30 Assets and Liabilities

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All the General Ledger heads of account with corresponding Sub-heads accounts under the Assets and Liabilities will be closed on 31 March every year and the balances in these accounts will be carried forward to the respective General Ledger and Sub-heads of account for the new accounting year commencing from 1 April. The closing balances as on 31 March in all Assets and Liabilities heads of account will become opening balances as on 1 April of the next financing year.

3.31 Income and Expenditure

The balances in Income and Expenditure heads of accounts will be transferred to Income and Expenditure account for the year. After transferring the balances under Income and Expenditure heads, these accounts will show NIL balances as on 31 March i.e. on close of the accounting year.

PART - IV

Pay- roll, accounting

4.1 Once the pay roll is drawn and before payment is effected a journal entry is required

to be passed by debiting “Salaries Account” for the gross amount as per the roll and crediting various recoveries made from the Roll and for crediting the net payable amount to the staff to the “Salary Payable Account”.

4.2 Cheques issued against the salary (net) to the Employees should be entered in the Day

Book under the Head “Salaries Payable account”. Salary Payable Account is only for making payment. The details of deductions from the salary under various Heads of Accounts should be available in the General Ledger.

4.3 The recoveries made from the pay rolls should be entered in Recovery Register. For each

type of recovery, proper entry is to be recorded in this Register separately in the folios / pages. As per the due dates, recoveries made from the salaries/receivables of the person on deputation should be remitted to their parent organization. The delay in remittance will attract penal interest on this account. Hence all remittances should be made in time.

4.4 Income tax deducted at source should be credited to the account of the Government on the due date, failing which interest is payable as per Income Tax Rules. Merely making a cheque and depositing the same on the due date to Government Account will

not be treated as amount credited on the due date. In such cases the cheque realization date will be treated as actual date of credit to the Government Account. Manager Finance / Assistant Manager Finance is responsible for ensuring timely payment, keeping all records, and for issue of all certificates and returns prescribed by IT authority under the Act in this regard.

4.5 Similarly provident fund subscription, etc. along with employer‟s contribution should also be deposited with Regional Provident Fund Commissioner in the Account specified by them on a particular due date. This date also should be observed strictly by the Manager Finance and Assistant Manager Finance.

4.6 Employer‟s contribution to the provident Fund is normally equal to the allowable

percentage of deduction made from each employee according to the Rules in force. In addition to the amount certain amounts such as Administrative expenses are also payable, these percentages are to be verified from the Act in consultation with the local provident fund Commissioner‟s office. The amount paid by the organization other than the recovery from the employees should be classified as Employer‟s contribution to the Provident Fund.

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4.7 Registers prescribed under the Rules of the Provident Fund Act, etc. are mandatory and therefore, should be maintained & kept updated by Manager Finance / Assistant Manager Finance.

4.7 Remittance of Income Tax, Provident fund amounts should be made through the prescribed

forms and the returns of monthly remittances are also to be submitted in the prescribed forms. Due dates of submission of such returns are compulsory and hence, the same should be submitted in time by Manager Finance / Assistant Manager Finance.

Salary Register

4.8 A salary register is to be maintained wherever rolls are prepared. The register contains the total amount of salary drawn and paid to every employee of the organization. Entries are posted from the Pay Bills, and the supplementary claims, if any, paid to the employees. The register should contain all elements constituting the gross salary and various recoveries and net paid. This Register is to be totalled at regular intervals to enable the calculations / information for the following. 1) Income Tax deductible & deducted at source.

(2) Income tax certificate to be issued.

(3) For calculation of different elements constituting the salary.

The salary register may be maintained manually till the software package for salary is procured.

PART – V

RECEIPT & INVESTMENTS

Bank Interest 5.1 Interest received on Bank deposit is to be duly accounted for. 5.2 Procedures i) The PMU shall not invest any part of the funds received in any manner other than for

which it is received. However, surplus funds can be invested in short term deposits with the PMU Banker, with the approval of the Chairperson.

ii) In case of receipt of an instrument, which is not crossed, F&AO shall affix the “Payee‟s A/c only” & cross on the instrument for purposes of safety.

iii) All instruments received during the day shall be deposited on the same day or very next banking day.

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PART –VI

FIXED & OTHER ASSETS

6.1 The Minimum cost of an asset to be capitalized would be more than Rs.5,000. Assets can be grouped into following categories:

6.2. Buildings A building is to be treated as a fixed asset when the same is constructed/purchased for the exclusive purpose of the ISLP implementation and said to have been completed as and when it is ready for use. In other words it is capitalized to the extent it is ready for use. In case of building purchased, it is to be capitalized as and when the possession is handed over.

Furniture & Fittings

6.3 Furniture and fittings are to be accounted for on the basis of physical possession. This type of expenditure is of non-recurring nature. However, as these items are having longer life, they should be entered in the asset register.

Office Equipment‟s

6.4 Purchase of office equipments with cost up to Rs.5,000/- may be charged to Expenditure Account. However, stock of these items may be indexed and a separate stock register should be maintained.

Partitions

6.5 Partitions are in the nature of common expenditure, which either occurs due to new construction or replacement or repair. All expenditure, which is in the nature of replacement or repair, is to be charged to expenditure Account. New construction of partition should be debited to furniture and fixture a/c. However, partition valued up to Rs.0.20 lakh should be charged to the expenditure account and a separate register for such assets is to be maintained.

PERIODICAL FINANCIAL STATEMENTS

6.6 The PMU should prepare Receipt & Payments/Income and Expenditure Account and Balance Sheet at the end of every financial year.

6.7 Receipts & Payment A/c is the consolidated cash flow for a particular period. This is prepared to know the liquidity position as well as to know whether the funds have been utilized property or not. This also speaks whether idle funds of the PMU had been kept in deposits with bank to earn interest.

6.8 Income & Expenditure Account speaks about how efficiently funds have been utilized by assessing the surplus or deficit of funds utilized.

6.9 Balance Sheet states the statement of affairs on a particular date. From the Balance Sheet the sources of funds and utilization of funds on a particular date can be assessed. It will be

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necessary to prepare a consolidated Income & Expenditure account and Balance Sheet of by consolidating the figures of DMU and PMU.

6.10 All Books of Accounts are to be kept as prescribed above and within the prescribed guidelines and should be promptly produced for verification of the Statutory Auditors, Internal Auditors, Government Auditors as and when the audits are conducted & overall to the Project Director and Manager Internal Audit of PMU.

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PART – VII

DATA SECURITY

7.1 It is envisaged that the PMU & DMUs would maintain computerized books of accounts; hence it is essential that a proper system for data security is followed. This is required in order to ensure that:

i) The PMU does not loose crucial accounting information as a result of any unexpected media corruption or a hardware problem in the computer.

ii) The accounting information is secured against possible manipulations from hackers, who may have their own ulterior motives to hack into the system and manipulate the data.

III) The PMU shall procure along with the computer hardware, suitable media for taking back up, such as a CD writer or a back up drive or data cartridge.

iv) The PMU shall take backup of the accounting data on daily basis. Always the backups shall be taken in sets of two, i.e., in two different CDs or data cartridges. In case, a re-write-able media is being used, 3 sets of backups shall be kept in the fireproof cash safe, in the custody of the Mnanger Finance / Assistant Manager Finance and PD to ensure that the data is not damaged in the unfortunate event of a fire accident in the office.

v) All accounting information shall be password protected. Only the Manager Finance / Assistant Manager Finance and PD should know the full access password (It is necessary for at least two people to know the password for safety reasons).

vi) The powers to change the access levels of a particular user shall remain with the Manager Finance / PD.

vii) A hard copy of the Day Book shall be taken on daily basis, as soon as all the data entry for the day is over.

viii) The Day Book hard copy shall be verified and signed by the Accountant, and Manager Finance / Assistant Manager Finance and rectification of any data entry, if any shall be carried out immediately. Rectification made shall be marked on the printout of the Day Book. In case of a major rectification, printout shall be taken afresh. However, the original printout shall be retained in the files, with the remark “Modified and cancelled” written across the entire width of the page.

ix) At the end of every month, the Manager Finance / Assistant Manager Finance shall take hard copy of all the printouts as listed in above. Such printouts shall preferably be taken on ledger quality continuous computer stationery and filed in continuous paper files.

x) After taking printouts the account for the month shall be frozen in the computer. Thereafter, rectification if any shall be carried out only through a rectification Journal Voucher, which shall be verified by the Manager Finance / Assistant Manager Finance and PD.

xi) The internal auditors shall verify the hard copies of the printout with the supporting vouchers and base documents.

7.2 Storage and Maintenance of Past Records

i) All financial records shall be preserved for at least 10 years after the Project closure.

ii) All vouchers shall be properly bound in chronological order and preferably stored in a record

room. The bound volumes shall be properly labelled and numbered.

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iii) Access to the record room shall be restricted and the Accountant shall keep a logbook, which

shall contain details of person accessing the record room, the records accessed, time of entry

and exit there from for future reference.

iv) Records from the record room/cupboard shall be issued only with the permission of the

Manager Finance. The Accountant shall maintain an issue- register for any record, issued

form the record room.

v) The annual accounting records shall also be stored in electronic media and copies of the

same shall be kept in the custody of the Manager Finance and PD.

PART – VIII

BUDGETING AND BUDGETARY CONTROL

I) For each year a projected cash flow statement (AWPB) in the required format shall be

worked out by splitting of yearly activities in which the projected receipts & expenditure

details should be given.

II) The budgeted amount shall be based on the level of activity to be performed during the

period for which the budget is made.

III) It is essential that the expenditures incurred are continuously monitored with the amounts

budgeted. This will be required to ensure that expenditures incurred do not normally

exceed amounts budgeted. For this purpose, the main head-wise balance available as

per the budget will have to be monitored periodically.

IV) The Manager Finance / Assistant Manager Finance will prepare the variance report

monthly and submit the same to the PD/Chairperson for

V) Every proposal for obtaining approval for expenditure shall have a mention of the

budgetary provision available, expenses already incurred, other committed expenses out

of the provision and the net budget available. The competent authority shall approve the

proposed expense only after verifying the availability of provision of the expense in the

budget. In case of exigencies, where an expense has to be approved for which no

provision is available, the competent authority shall forward the proposal to the

Chairperson for approval.

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Chapter-4.2: DRAFT RFP FOR PARTNER AGENCY

Selection of Field-NGOs & Other Partner Agencies

ILSP

Funded by IFAD and the Government of Uttarakhand …………….2013

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Request for proposals from FNGOs & Partner Agencies

Section 1: Letter of Invitation

[insert: Name and Address of FNGO & Partner Agency] ______________________________ ______________________________

Dear Mr./Ms

1. The Government of India (hereinafter called “Borrower”) has received financing from the International Fund for Agricultural Development (IFAD) (hereinafter called “loan”) towards implementing “Integrated Livelihoods Support Project in ....villages in ……..Panchayats and ---------blocks of ………. Uttarakhand State. The Borrower intends to apply a portion of the funds to eligible payments under the contract for which this Request for Proposals (RFP) is issued. UGVS being Implementing Agency for Component 1 has established a Project Management Unit (PMU) at Dehradun and District Offices…...

2. The PMU invites proposals from Non-Governmental Organizations (NGOs, Institutions, Agencies) to implement social mobilization and livelihood related activities of the Integrated Livelihoods Support Project. Details regarding the services to be provided are given in the Terms of Reference (Section 4 of the RFP).

3. This RFP has been addressed to the following shortlisted FNGOs/Institutions/Agencies:

[insert: List of Shortlisted NGOs /Institutions/Agencies]

It is not permissible to transfer this invitation to any other organization.

4. FNGOs/Institutions/Agencies will be selected based on screening of the applications taking into account minimum selection criteria and procedures described in this RFP, in accordance with the policies of IFAD.

5. The RFP includes the following documents:

Section 1 - Letter of Invitation Section 2 - Instructions to FNGOs (including Data Sheet) Section 3 - Technical Proposal - Standard Forms Section 4 - Terms of Reference

Section 5 - Standard Forms of Contract

6. Please inform in writing at the following address, upon receipt of invitation:

The Project Director, UGVS (Address)

Telephone: Fax: Email id:

(a) That you have received the Letter of Invitation; and (b) Whether you will submit a proposal alone or in association.

Yours sincerely, Project Director

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Section 2: Instructions to FNGOs and Partner Agencies

Definitions (a) “Fund” means the International Fund for Agricultural Development, Rome, Italy.

(b) “Client” means the agency with which the selected FNGOs sign the Contract for the Services, and in this case, the UGVS, Dehradun.

(c) “FNGO” means any Agency, Institute, Organisation, entity or person that may provide or provides the Services to the Client under the Contract.

(d) “Contract” means the Contract signed by the Parties and all the attached documents listed in its Clause 1, that is the General Conditions (GC), the Special Conditions (SC), and the Appendices.

(e) “Data Sheet” means such part of the Instructions to FNGOs used to reflect specific country and assignment conditions.

(f) “Day” means calendar day.

(g) “Government” means the Government of Uttarakhand.

(h) “Instructions to FNGOs” (Section 2 of the RFP) means the document which provides shortlisted FNGOs with all information needed to prepare their Proposals.

(i) “LOI” (Section 1 of the RFP) means the Letter of Invitation being sent by the Client to the shortlisted FNGOs and Partner Agencies.

(j) “Personnel” means professionals and support staff provided by the FNGO or by any Sub-FNGO and assigned to perform the Services or any part thereof; “Foreign Personnel” means such professionals and support staff who at the time of being so provided had their domicile outside the Government‟s country; “Local Personnel” means such professionals and support staff who at the time of being so provided had their domicile inside the Government‟s country.

(k) “Proposal” means the Technical Proposal and the Financial Proposal.

(l) “RFP” means the Request For Proposal to be prepared by the Client for the selection of FNGOs, based on the SRFP.

(m) “SRFP” means the Standard Request for Proposals, which must be used by the Client as a guide for the preparation of the RFP.

(n) “Services” means the work to be performed by the FNGO pursuant to the Contract.

(o) “Sub-FNGO” means any person or entity with whom the FNGO subcontracts any part of the Services.

(p) “Terms of Reference” (TOR) means the document included in the RFP as Section 4 which explains the objectives, scope of work, activities, tasks to be performed, respective responsibilities of the Client and the FNGO, and expected results and deliverables of the assignment.

1. Introduction 1.1 The Client named in the Data Sheet will select a consulting firm/organization from those listed in the Letter of Invitation, in accordance with the method of selection specified in the Data Sheet.

1.2 The shortlisted FNGOs are invited to submit a Technical Proposal and a

Financial Proposal, or a Technical Proposal only, as specified in the Data

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Sheet, for facilitating services required for the Project named in the Data Sheet. The Proposal will be the basis for contract negotiations and ultimately for a signed Contract with the selected FNGOs.

1.3 FNGOs or Partner Agencies should familiarize themselves with local

conditions and take them into account in preparing their Proposals. To obtain first-hand information on the assignment and local conditions,

FNGOs are encouraged to visit the Client before submitting a proposal and to attend a pre-proposal conference if one is specified in the Data Sheet. Attending the pre-proposal conference is optional. FNGOs should contact the Client‟s representative named in the Data Sheet to arrange for their visit or to obtain additional information on the pre-proposal conference. FNGOs should ensure that these officials are advised of the visit in adequate time to allow them to make appropriate arrangements.

1.4 The Client will provide at no cost to the FNGOs the inputs and facilities specified in the Data Sheet, assist the firm in obtaining licenses and permits needed to carry out the services, and make available relevant project data and reports.

1.5 FNGOs shall bear all costs associated with the preparation and submission of their proposals and contract negotiation. The Client is not bound to accept any proposal, and reserves the right to annul the selection process at any time prior to Contract award, without thereby incurring any liability to the FNGOs.

Conflict of Interest

1.6 IFAD policy requires that FNGOs provide professional, objective, and impartial advice/service and at all times hold the Client‟s interests paramount, strictly avoid conflicts with other assignments or their own corporate interests and act without any consideration for future work.

1.6.1 Without limitation on the generality of the foregoing, FNGOs, and

any of their affiliates, shall be considered to have a conflict of interest and shall not be recruited, under any of the circumstances set forth below:

Conflicting activities

(i) A firm/organization that has been engaged by the Client

to provide goods, works or services other than consulting

services for a project, and any of its affiliates, shall be

disqualified from providing consulting services related to

those goods, works or services. Conversely, a firm hired

to provide consulting services for the preparation or

implementation of a project, and any of its affiliates, shall

be disqualified from subsequently providing goods or

works or services other than consulting services resulting

from or directly related to the firm‟s consulting services for

such preparation or implementation. For the purpose of

this paragraph, services other than consulting services

are defined as those leading to a measurable physical

output, for example surveys, exploratory drilling, aerial

photography, and satellite imagery.

Conflicting assignments

(ii) A FNGO (including its Personnel and Sub-FNGOs) or any

of its affiliates shall not be hired for any assignment that,

by its nature, may be in conflict with another assignment of

the FNGO to be executed for the same or for another

Client. For example, a FNGO hired to prepare engineering

design for an infrastructure project shall not be engaged to

prepare an independent environmental assessment for the

same project, and a FNGO assisting a Client in the

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privatization of public assets shall not purchase, nor advise

purchasers of, such assets. Similarly, a FNGO hired to

prepare Terms of Reference for an assignment should not

be hired for the assignment in question.

Conflicting relationships

(iii) A FNGO (including its Personnel and Sub-FNGOs) that

has a business or family relationship with a member of the

Client‟s staff who is directly or indirectly involved in any

part of (i) the preparation of the Terms of Reference of the

assignment, (ii) the selection process for such assignment,

or (iii) supervision of the Contract, may not be awarded a

Contract, unless the conflict stemming from this

relationship has been resolved in a manner acceptable to

IFAD throughout the selection process and the execution

of the Contract.

1.6.2 FNGOs have an obligation to disclose any situation of actual or potential conflict that impacts their capacity to serve the best interest of their Client, or that may reasonably be perceived as having this effect. Failure to disclose said situations may lead to the disqualification of the FNGO or the termination of its Contract.

1.6.3 No agency or current employees of the Client shall work as FNGOs under their own ministries, departments or agencies. Recruiting former government employees of the Client to work for their former ministries, departments or agencies is acceptable provided no conflict of interest exists. When the FNGO nominates any government employee as Personnel in their technical proposal, such Personnel must have written certification from their government or employer confirming that they are on leave without pay from their official position and allowed to work full-time outside of their previous official position. Such certification shall be provided to the Client by the FNGO as part of his technical proposal.

Unfair Advantage 1.6.4 If shortlisted FNGOs could derive a competitive advantage from having provided facilitating services related to the assignment in question, the Client shall make available to all shortlisted FNGOs together with this RFP all information that would in that respect give such FNGO any competitive advantage over competing FNGOs.

Fraud and Corruption

1.7 IFAD requires that all Borrowers (including beneficiaries of IFAD loans), as well as FNGOs participating in IFAD-financed projects adhere to the highest ethical standards, both during the selection process and throughout the execution of a contract. In pursuance of this policy, IFAD:

(a) defines, for the purpose of this paragraph, the terms set

forth below as follows:

(i) “corrupt practice” means the offering, giving,

receiving, or soliciting, directly or indirectly, of anything of

value to influence the action of a public official in the

selection process or in contract execution;

(ii) “fraudulent practice” means a misrepresentation

or omission of facts in order to influence a selection

process or the execution of a contract;

(iii) “collusive practices” means a scheme or

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arrangement between two or more FNGOs with or without

the knowledge of the Borrower, designed to establish

prices at artificial, non-competitive levels;

(iv) “Coercive practices” means harming or

threatening to harm, directly or indirectly, persons or their

property to influence their participation in a procurement

process, or affect the execution of a contract.

(b) will reject a proposal for award if it determines that the

FNGO recommended for award has, directly or through an agent,

engaged in corrupt, fraudulent, collusive or coercive practices in

competing for the contract in question;

(c) will cancel the portion of the loan allocated to a contract if

it determines at any time that representatives of the Borrower or

of a beneficiary of the loan were engaged in corrupt, fraudulent,

collusive or coercive practices during the selection process or the

execution of the contract, without the Borrower having taken

timely and appropriate action satisfactory to the Fund to remedy

the situation.

(d) will sanction a FNGO, including declaring the FNGO

ineligible, either indefinitely or for a stated period of time, to be

awarded a IFAD-financed contract if at any time determines that

the FNGO has, directly or through an agent, engaged in corrupt,

fraudulent, collusive or coercive practices in competing for, or in

executing, a Fund-financed contract; and

(e) will have the right to require that, in contracts financed by

the IFAD, a provision be included requiring FNGOs to permit the

IFAD to inspect their accounts and records and other documents

relating to the submission of proposals and contract performance,

and have them audited by auditors appointed by the Fund.

1.8 FNGOs, their Sub-FNGOs, and their associates shall not be under a declaration of ineligibility for corrupt and fraudulent practices issued by the IFAD in accordance with the above para. 1.7. Furthermore, the FNGOs shall be aware of the provisions on fraud and corruption stated in the specific clauses in the General Conditions of Contract.

1.9 FNGOs shall furnish information on commissions and gratuities, if any, paid or to be paid to agents relating to this proposal and during execution of the assignment if the FNGO is awarded the Contract, as requested in the Financial Proposal submission form (Section 4).

Origin of Goods and Consulting Services

1.10 Goods supplied and Consulting Services provided under the Contract may originate from any country except if:

(i) as a matter of law or official regulation, the Borrower‟s

country prohibits commercial relations with that country; or

(ii) by an act of compliance with a decision of the United

Nations Security Council taken under Chapter VII of the Charter of

the United Nations, the Borrower‟s Country prohibits any imports

of goods from that country or any payments to persons or entities

in that country.

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(iii) The Country is not an IFAD Member Country. List of IFAD

Member Countries is available on www.ifad.org.

Only one Proposal

1.11 Shortlisted FNGOs may only submit one proposal per block. If a FNGO submits or participates in more than one proposal, such proposals shall be disqualified. However, this does not limit the participation of the same Sub-FNGO, including individual experts, to more than one proposal.

Proposal Validity

1.12 The Data Sheet indicates how long FNGOs‟ Proposals must remain valid after the submission date. During this period, FNGOs shall maintain the availability of Professional staff nominated in the Proposal. The Client will make its best effort to complete negotiations within this period. Should the need arise; however, the Client may request FNGOs to extend the validity period of their proposals. FNGOs who agree to such extension shall confirm that they maintain the availability of the Professional staff nominated in the Proposal, or in their confirmation of extension of validity of the Proposal, FNGOs could submit new staff in replacement, who would be considered in the final evaluation for contract award. FNGOs who do not agree have the right to refuse to extend the validity of their Proposals.

Eligibility of Sub-FNGOs

1.13 In case a shortlisted FNGO intends to associate with FNGOs who have not been shortlisted, such other FNGOs and/or individual expert(s) shall be subject to the eligibility criteria set forth in the Expression of Interest.

2. Clarification and Amendment of RFP Documents

2.1 FNGOs may request a clarification of any of the RFP documents up to the number of days indicated in the Data Sheet before the proposal submission date. Any request for clarification must be sent in writing, or by standard electronic means to the Client‟s address indicated in the Data Sheet. The Client will respond in writing, or by standard electronic means and will send written copies of the response (including an explanation of the query but without identifying the source of inquiry) to all FNGOs. Should the Client deem it necessary to amend the RFP as a result of a clarification, it shall do so following the procedure under para. 2.2.

2.2 At any time before the submission of Proposals, the Client may amend the RFP by issuing an addendum in writing or by standard electronic means. The addendum shall be sent to all FNGOs and will be binding on them. FNGOs shall acknowledge receipt of all amendments. To give FNGOs reasonable time in which to take an amendment into account in their Proposals the Client may, if the amendment is substantial, extend the deadline for the submission of Proposals.

3. Preparation of Proposals

3.1 The Proposal (see para. 1.2), as well as all related correspondence exchanged by the FNGOs and the Client, shall be written in the language (s) specified in the Data Sheet.

3.2 In preparing their Proposal, FNGOs are expected to examine in detail the documents comprising the RFP. Material deficiencies in providing the information requested may result in rejection of a Proposal.

3.3 While preparing the Technical Proposal, FNGOs must give particular attention to the following:

(a) If a shortlisted FNGO considers that it may enhance its

expertise for the assignment by associating with other FNGOs in

a joint venture or sub-consultancy, it may associate with either (a)

non-shortlisted FNGO(s), or (b) shortlisted FNGOs if so indicated

in the Data Sheet. A shortlisted FNGO must first obtain the

approval of the Client if it wishes to enter into a joint venture with

non-shortlisted or shortlisted FNGO(s). In case of association

with non-shortlisted FNGO(s), the shortlisted FNGO shall act as

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association leader. In case of a joint venture, all partners shall be

jointly and severally liable and shall indicate who will act as the

leader of the joint venture.

(b) The estimated number of Professional staff-months or the

budget for executing the assignment shall be shown in the Data

Sheet, but not both. However, the Proposal shall be based on the

number of Professional staff-months or budget estimated by the

FNGOs.

For fixed-budget-based assignments, the available budget is

given in the Data Sheet, and the Financial Proposal shall not

exceed this budget, while the estimated number of Professional

staff-months shall not be disclosed.

(c) Alternative professional staff shall not be proposed, and

only one curriculum vitae (CV) may be submitted for each

position.

Language (d) Documents to be issued by the FNGOs as part of this assignment must be in the language(s) specified in the Reference Paragraph 3.1 of the Data Sheet. If Reference Paragraph 3.1 indicates two languages, the language in which the proposal of the successful FNGO will be submitted shall govern for the purpose of interpretation. It is desirable that the firm‟s Personnel have a working knowledge of the Client‟s national language.

Technical Proposal Format and Content

3.4 Depending on the nature of the assignment, FNGOs are required to submit a Full Technical Proposal (FTP), or a Short Technical Proposal (STP). The Data Sheet indicates the format of the Technical Proposal to be submitted. Submission of the wrong type of Technical Proposal will result in the Proposal being deemed non-responsive. The Technical Proposal shall provide the information indicated in the following paragraphs from (a) to (f) using the attached Standard Forms (Section 3). Paragraph (c) (ii) indicates the recommended number of pages for the description of the approach, methodology and work plan of the STP. A page is considered to be one printed side of A4 or letter size paper.

(a) (i) For the FTP only: a brief description of the FNGOs‟ organization and an outline of recent experience of the FNGOs and, in the case of joint venture, for each partner, on assignments of a similar nature is required in Form TECH-2 of Section 3. For each assignment, the outline should indicate the names of Sub-FNGOs/ Professional staff who participated, duration of the assignment, contract amount, and FNGO‟s involvement. Information should be provided only for those assignments for which the FNGO was legally contracted by the client as a corporation or as one of the major firms within a joint venture. Assignments completed by individual Professional staff working privately or through other consulting firms cannot be claimed as the experience of the FNGO, or that of the FNGO‟s associates, but can be claimed by the Professional staff themselves in their CVs. FNGOs should be prepared to substantiate the claimed experience if so requested by the Client.

(ii)For the STP the above information is not required and Form TECH-2 of Section 3 shall not be used.

(b) (i)For the FTP only: comments and suggestions on the Terms of Reference including workable suggestions that could improve

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the quality/ effectiveness of the assignment; and on requirements for counterpart staff and facilities including: administrative support, office space, local transportation, equipment, data, etc. to be provided by the Client (Form TECH-3 of Section 3).

(ii)For the STP Form TECH-3 of Section 3 shall not be used; the above comments and suggestions, if any, should be incorporated into the description of the approach and methodology (refer to following sub-para. 3.4 (c) (ii)).

(c) (i)For the FTP, and STP: a description of the approach, methodology for performing the assignment covering the following subjects: technical approach and methodology and organization. Guidance on the content of this section of the Technical Proposals is provided under Form TECH-4 of Section 3.

(ii)For the STP only: the description of the approach, and methodology should normally consist of 5 pages, including charts, diagrams, and comments and suggestions, if any, on Terms of Reference and counterpart staff and facilities.

(d) The list of the proposed Professional staff team by area of expertise, the position that would be assigned to each staff team member, and their tasks (Form TECH-5 of Section 3).

(e) CVs of the Professional staff signed by the staff themselves or by the authorized representative of the Professional Staff (Form TECH-6 of Section 3).

(f) For the FTP only: a detailed description of the proposed methodology and staffing for training, if the Data Sheet specifies training as a specific component of the assignment.

3.5 The Technical Proposal shall not include any financial information. A Technical Proposal containing financial information may be declared non responsive.

Financial Proposals

Taxes 3.6 The FNGO may be subject to local taxes (such as: value added or sales tax, duties, fees, levies) on amounts payable by the Client under the Contract. The Client will state in the Data Sheet if the FNGO is subject to payment of any local taxes. Any such amounts shall not be included in the Financial Proposal as they will not be evaluated, but they will be discussed at contract negotiations, and applicable amounts will be included in the Contract.

3.7 FNGOs may express the price of their services in a maximum of three freely convertible currencies, singly or in combination. The Client may require FNGOs to state the portion of their price representing local cost in the national currency if so indicated in the Data Sheet.

3.8 Commissions and gratuities, if any, paid or to be paid by FNGOs and related to the assignment will be listed in the Financial Proposal Form FIN-1 of Section 4.

4. Submission, Receipt, and Opening of Proposals

4.1 The original proposal (Technical Proposal and, financial information; see para. 1.2) shall contain no interlineations or overwriting, except as necessary to correct errors made by the FNGOs themselves. The person who signed the proposal must initial such corrections. Submission letters for both Technical and Financial Proposals should respectively be in the format of TECH-1 of Section 3, and FIN-1 of Section 4.

4.2 An authorized representative of the FNGOs shall initial all pages of the original Technical and Financial Proposals. The authorization shall be in the form of a written power of attorney accompanying the Proposal or in any other form demonstrating that the representative has been dully authorized to sign. The signed Technical and Financial Proposals shall be

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marked “ORIGINAL”. 4.3 The Technical Proposal shall be marked “ORIGINAL” or “COPY” as

appropriate. The Technical Proposals shall be sent to the addresses referred to in para. 4.5 and in the number of copies indicated in the Data Sheet. All required copies of the Technical Proposal are to be made from the original. If there are discrepancies between the original and the copies of the Technical Proposal, the original governs.

4.4 The original and all copies of the Technical Proposal shall be placed in a sealed envelope clearly marked “TECHNICAL PROPOSAL” Similarly, the original Financial Proposal (if required under the selection method indicated in the Data Sheet) shall be placed in a sealed envelope clearly marked “FINANCIAL PROPOSAL” followed by the Loan/TA number and the name of the assignment, and with a warning “DO NOT OPEN WITH THE

TECHNICAL PROPOSAL.” The envelopes containing the Technical and Financial Proposals shall be placed into an outer envelope and sealed. This outer envelope shall bear the submission address, reference number and title of the Loan, and be clearly marked “DO NOT OPEN, EXCEPT IN

PRESENCE OF THE OFFICIAL APPOINTED, BEFORE [insert the time and date of the submission deadline indicated in the Data Sheet]”. The Client shall not be responsible for misplacement, losing or premature opening if the outer envelope is not sealed and/or marked as stipulated. This circumstance may be case for Proposal rejection. If the Financial Proposal is not submitted in a separate sealed envelope duly marked as indicated above, this will constitute grounds for declaring the Proposal non-responsive.

4.5 The Proposals must be sent to the address/addresses indicated in the Data Sheet and received by the Client no later than the time and the date indicated in the Data Sheet, or any extension to this date in accordance with para. 2.2. Any proposal received by the Client after the deadline for submission shall be returned unopened.

4.6 The Client shall open the Technical Proposal immediately after the deadline for their submission. The envelopes with the Financial Proposal shall remain sealed and securely stored.

5. Proposal Evaluation

5.1 From the time the Proposals are opened to the time the Contract is awarded, the FNGOs should not contact the Client on any matter related to its Technical and/or Financial Proposal. Any effort by FNGOs to influence the Client in the examination, evaluation, ranking of Proposals, and recommendation for award of Contract may result in the rejection of the FNGOs‟ Proposal.

Evaluators of Technical Proposals shall have no access to the Financial Proposals until the technical evaluation is concluded and the Fund issues its “no objection”.

Evaluation of Technical Proposals

5.2 The evaluation committee shall evaluate the Technical Proposals on the basis of their responsiveness to the Terms of Reference, applying the evaluation criteria, sub-criteria, and point system specified in the Data Sheet. Each responsive Proposal will be given a technical score (St). A Proposal shall be rejected at this stage if it does not respond to important aspects of the RFP, and particularly the Terms of Reference or if it fails to achieve the minimum technical score indicated in the Data Sheet.

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Financial Proposals for QBS Public Opening and Evaluation of Financial Proposals (only for QCBS, FBS, and LCS)

5.3 Following the ranking of technical Proposals, when selection is based on quality only (QBS), the first ranked FNGO is invited to negotiate its proposal and the Contract in accordance with the instructions given under para. 6 of these Instructions.

5.4 After the technical evaluation is completed and the Fund has issued its no objection (if applicable), the Client shall inform the FNGOs who have submitted proposals the technical scores obtained by their Technical Proposals, and shall notify those FNGOs whose Proposals did not meet the minimum qualifying mark or were considered non responsive to the RFP and TOR, that their Financial Proposals will be returned unopened after completing the selection process. The Client shall simultaneously notify in writing FNGOs that have secured the minimum qualifying mark, the date, time and location for opening the Financial Proposals. The opening date should allow FNGOs sufficient time to make arrangements for attending the opening. FNGOs‟ attendance at the opening of Financial Proposals is optional.

5.5 Financial Proposals shall be opened publicly in the presence of the FNGOs‟ representatives who choose to attend. The name of the FNGOs and the technical scores of the FNGOs shall be read aloud. The Financial Proposal of the FNGOs who met the minimum qualifying mark will then be inspected to confirm that they have remained sealed and unopened. These Financial Proposals shall be then opened, and the total prices read aloud and recorded. Copy of the record shall be sent to all FNGOs and the Fund.

5.6 The Evaluation Committee will correct any computational errors. When correcting computational errors, in case of discrepancy between a partial amount and the total amount, or between word and figures the former will prevail. In addition to the above corrections, as indicated under para. 3.6, activities and items described in the Technical Proposal but not priced, shall be assumed to be included in the prices of other activities or items. In case an activity or line item is quantified in the Financial Proposal differently from the Technical Proposal, (i) if the Time-Based form of contract has been included in the RFP, the Evaluation Committee shall correct the quantification indicated in the Financial Proposal so as to make it consistent with that indicated in the Technical Proposal, apply the relevant unit price included in the Financial Proposal to the corrected quantity and correct the total Proposal cost, (ii) if the Lump-Sum form of contract has been included in the RFP, no corrections are applied to the Financial Proposal in this respect. Prices shall be converted to a single currency using the selling rates of exchange, source and date indicated in the Data Sheet.

5.7 In case of QCBS, the lowest evaluated Financial Proposal (Fm) will be given the maximum financial score (Sf) of 100 points. The financial scores (Sf) of the other Financial Proposals will be computed as indicated in the Data Sheet. Proposals will be ranked according to their combined technical (St) and financial (Sf) scores using the weights (T = the weight given to the Technical Proposal; P = the weight given to the Financial Proposal; T + P = 1) indicated in the Data Sheet: S = St x T% + Sf x P%. The firm achieving the highest combined technical and financial score will be invited for negotiations.

5.8 In the case of Fixed-Budget Selection, the Client will select the firm that submitted the highest ranked Technical Proposal within the budget. Proposals that exceed the indicated budget will be rejected. In the case of the Least-Cost Selection, the Client will select the lowest proposal among those that passed the minimum technical score. In both cases the evaluated proposal price according to para. 5.6 shall be considered, and the selected firm is invited for negotiations.

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6. Negotiations

6.1 Negotiations will be held at the date and address indicated in the Data Sheet. The invited FNGO will, as a pre-requisite for attendance at the negotiations, confirm availability of all Professional staff. Failure in satisfying such requirements may result in the Client proceeding to negotiate with the next-ranked FNGO. Representatives conducting negotiations on behalf of the FNGO must have written authority to negotiate and conclude a Contract.

Technical negotiations

6.2 Negotiations will include a discussion of the Technical Proposal, the proposed technical approach and methodology, work plan, and organization and staffing, and any suggestions made by the FNGO to improve the Terms of Reference. The Client and the FNGOs will finalize the Terms of Reference, staffing schedule, work schedule, logistics, and reporting. These documents will then be incorporated in the Contract as “Description of Services”. Special attention will be paid to clearly defining the inputs and facilities required from the Client to ensure satisfactory implementation of the assignment. The Client shall prepare minutes of negotiations which will be signed by the Client and the FNGO.

Financial negotiations

6.3 If applicable, it is the responsibility of the FNGO, before starting financial negotiations, to contact the local tax authorities to determine the local tax amount to be paid by the FNGO under the Contract. The financial negotiations will include a clarification (if any) of the firm‟s tax liability in the Client‟s country, and the manner in which it will be reflected in the Contract; and will reflect the agreed technical modifications in the cost of the services. In the cases of QCBS, Fixed-Budget Selection, and the Least-Cost Selection methods, unless there are exceptional reasons, the financial negotiations will involve neither the remuneration rates for staff nor other proposed unit rates. For other methods, FNGOs will provide the Client with the information on remuneration rates described in the Appendix attached to Section 4 - Financial Proposal - Standard Forms of this RFP.

Availability of Professional staff/experts

6.4 Having selected the FNGO on the basis of, among other things, an evaluation of proposed Professional staff, the Client expects to negotiate a Contract on the basis of the Professional staff named in the Proposal. Before contract negotiations, the Client will require assurances that the Professional staff will be actually available. The Client will not consider substitutions during contract negotiations unless both parties agree that undue delay in the selection process makes such substitution unavoidable or for reasons such as death or medical incapacity. If this is not the case and if it is established that Professional staff were offered in the proposal without confirming their availability, the FNGO may be disqualified. Any proposed substitute shall have equivalent or better qualifications and experience than the original candidate and be submitted by the FNGO within the period of time specified in the letter of invitation to negotiate.

Conclusion of the negotiations

6.5 Negotiations will conclude with a review of the draft Contract. To complete negotiations the Client and the FNGO will initial the agreed Contract. If negotiations fail, the Client will invite the FNGO whose Proposal received the second highest score to negotiate a Contract.

7. Award of Contract

7.1 After completing negotiations the Client shall award the Contract to the selected FNGO, publish in UNDB on line and in the Development Gateway the award of the Contract, and promptly notify all FNGOs who have submitted proposals. After Contract signature, the Client shall return the unopened Financial Proposals to the unsuccessful FNGOs.

7.2 The FNGO is expected to commence the assignment on the date and at the location specified in the Data Sheet.

8. Confidentiality 8.1 Information relating to evaluation of Proposals and recommendations concerning awards shall not be disclosed to the FNGOs who submitted the Proposals or to other persons not officially concerned with the

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process, until the publication of the award of Contract. The undue use by any FNGO of confidential information related to the process may result in the rejection of its Proposal and may be subject to the provisions of the IFAD‟s antifraud and corruption policy.

Instructions to FNGOs- Data Sheet

Number of Cluster/Block to be allocated per FNGO: ONE Number of districts to be allocated per FNGO in a region: Multiple

Paragraph Reference

1.1

Name of the Client: UGVS, (Address) Method of selection: Fixed Budget Selection

1.2 Financial Proposal to be submitted together with Technical Proposal: No Name of the assignment is : Engagement of Field NGOs

1.3

A pre-proposal conference will be held: Yes, at Dehradun at XXXX hrs on

Date/Month/Year

The Client‟s representative is: The Project Director, ILSP, UGVS, Address: UGVS (Address) Telephone: Fax: Email:

1.4 The Client will provide the following inputs and facilities: Detailed discussions on Project Concept and Roles and Responsibilities of FNGOs. Any other specific and reasonable requirements from participants.

1.5 The Client envisages the need for continuity for downstream work: Yes

1.11 FNGO shall submit one proposal. Each selected FNGO will be allocated one Cluster/Block per district. FNGO may be allocated clusters/ blocks in multiple districts.

1.12

Proposals must remain valid for 90 days after the submission date, i.e. until: Date/Month/year.

1.13 Association with other NGOs/Organizations or using other NGOs/organizations as sub-NGOs to participate in this RFP is not allowed

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2.1 Clarifications may be requested not later than 14 days before the submission date. The letter seeking clarifications will have to reach the address given below not later than 14 days before the submission date: The address for requesting clarifications is: The Project Director, UGVS, ILSP (Address) Telephone: Fax: Email:

3.1

Proposals shall be submitted in the following language: English/ Hindi

3.2 Shortlisted FNGOs may associate with other shortlisted FNGOs: No

3.3 (b)

The budget proposed for establishing a required office infrastructure including human resource team for one Cluster/Block covering xx villages is provided in the Terms of reference. The budget has three components. (i) Capital costs – Vehicles and equipments for establishing office to be provided by the Client; (ii) Operational Costs to be reimbursed by the client to the FNGO; and (iii) Overheads payable by the Client to the FNGO.

3.4 The format of the Technical Proposal to be submitted is: STP (Short Technical Proposal)

3.4 (a) TECH 2A required

3.6 No financial proposal is to be submitted by bidders. By executing the Tech 1 Form, bidders affirm that they will deliver the technical proposal within the fixed budget as per Clause 3.2(b) above. By submitting this proposal the bidder agrees to deliver services at the fixed cost provided in the RFP. Amounts payable by the Client to the FNGO under the contract to be subject to local taxation: Yes. (a) reimburse the FNGO for any such taxes paid by the FNGO: yes (In case the FNGO is a registered service tax payer, the service tax can be added to the invoice of the FNGO and will be paid by the client) (b) Pay such taxes on behalf of the FNGO by deducting from their service bills : Yes except where the FNGO provides tax exemption certificate.

3.7 FNGO to state all local cost in Rupees only: Yes.

4.1 FNGO must submit the Original and 2 copies of the Technical Proposal in a sealed envelope. Financial Proposal not required

4.2

The Proposal submission address is: : Project Director, Uttarakhand Integrated Livelihood Support Project, Dehradun (Address) Telephone: Fax: Email: Proposals must be submitted no later than the following date and time: on or before Date/Month/Year by 3.00 PM

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Process of FNGO Selection Step 1: a) Publication of the advertisement in newspapers and details on the Web Site of UGVS for inviting Expression of Interest (EOI) from suitable FNGOs/Organizations/Agencies. b) Scrutiny of all EOI applications received by an Evaluation Committee comprising (i) ……………..; (ii) …………………… (iii); and (iv) ………………. to verify whether: (i) the applications are complete; and (ii) applicant FNGOs fulfil the following minimum essential qualifications.

i. Registration under an appropriate legal framework and in existence for five years.

ii. Minimum five years experience implementing any two of the activities provided below supported by multilateral donors/Bilateral donors/ International FNGOs/ other donors.

a) SHG mobilization. b) In-situ Soil and Water Conservation works, Watershed projects and

Integrated natural resources management activities c) Livelihood development activities

iii. Average annual receipts of INR 20 lakhs during the last three financial years (2009-2010, 2010-2011 and 2011-2012).

iv. Not affiliated to religious and political organizations and not blacklisted by GOI, State Governments and any other public sector organisation.

(FNGOs fulfilling above minimum qualifications will be shortlisted) Step 2: The short listed FNGOs (from step 1) will be requested to submit detailed Technical Proposal. The Technical Proposal will be evaluated by the Evaluation Committee.

Parameter for Evaluation [these could be modified where necessary] Score

A Organizational Profile

1 Staff Strength

i. More than 10 long term staff members

3

ii 5-10 staff members 2

iii Less than 5 0

2 Staff Capacity

2.1 i. More than 5 professional staff with over 3 years of experience in social mobilization 3

ii. 2-5 professional staff with over 3 years of experience in social mobilization 2

iii. Less than 2 professional staff with experience in social mobilization 0

2.2 i. 3 or more professional staff with over 3 years of experience in Livelihoods Development

5

ii. 1-2 professional staff with over 3 years of experience in Livelihoods Development 3

iii. No professional staff with experience in Livelihoods Development 0

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3 Gender balance in staffing

i. More than 30% women programme staff 3

ii. 20-30% women programme staff 2

iii. Less than 20% women programme staff 0

4 Infrastructure

i Has its own a training centre / has access to training centre for conducting ; training and has curriculum and training materials related to: (i) SHG mobilization; (ii) in-situ Soil and Water Conservation Works; and (iii) Livelihood Development

3

ii Has curriculum and training materials related to two out of three activities ((i) SHG mobilization; (ii) in-situ Soil and Water Conservation Works; and (iii) Livelihood Development)

2

iii Has curriculum and training materials related to one out of three activities ((i) SHG mobilization; (ii) in-situ Soil and Water Conservation Works; and (iii) Livelihood Development)

1

iv. Has none of the above 0 B Resources and Financial Management

1 Total fixed assets (Average for last three years)

i. More than Rs. 25 lakhs 5

ii. Rs. 20-25 lakhs 3

iii. Rs. 15-20 lakhs 2

2 Average Annual Receipts (Average for last three years)

i. More than Rs. 40 lakhs 5

ii. Rs. >30-40 lakhs 3

iii. Rs. 20-30 lakhs 2

3 Audit Report

i. Compliance to: (i) Annual report published with audited financial statements for 2011-

12; (ii) Audit report with no major discrepancy /observation. 3

ii. Compliance to one of the above 2

iii. Compliance to none of the above

0

4 Resource Mobilization

i. Received funding from Multilateral projects/Bilateral donors / NABARD during the last three financial year in addition to other donors

5

ii. Received funding from Large National Trusts/INGOs during the last three financial year and not from Multilateral projects/Bilateral donors.

3

iii Received funding only from government organizations and local NGOs during the last three financial year.

2

5 Compliance to regulatory requirements

i Compliance to: (i) regular submission of Audited balance sheet to the regulatory authorities; and (ii) regular submission of income tax returns.

2

ii. Non-compliance to the above 0

C Experience in SHG Mobilization

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1 No. of SHGs mobilized

i. More than 500 SHGs mobilized

ii. >300-500 SHGs mobilized

iii. >200-300 SHGs mobilized

2 SHG Credit Linkage – First Linkage

i. More than 500 SHGs linked

ii. >300-500 SHGs linked

iii. >200-300 SHGs linked

D Experience in In-situ Soil and Water Conservation Works

i Experience of implementing In-situ soil and water conservation works

ii No experience in working with any of the above programmes

E Experience in working with Livelihood programmes

i Experience in working with several value chains

ii No experience working with any of the value chains

F M&E and Knowledge Management

i. Has developed a system of : (i) continuously monitoring performance of SHGs through MIS; (ii) developed a rating system for SHGs; and (iii) documenting the experience of SHG mobilization for wider dissemination

ii. Has not developed any of the above systems

G Social and Gender

1 Social Development

i. Has introduced other social sector activities such as education, health and sanitation, HIV awareness, etc

ii. Has not implemented any social sector programmes

2 Gender

i. Has implemented advocacy programmes on women‟s rights, legal aid to women and/ or such other programmes

ii. Has not implemented any of the above programmes

Step 3: The scores obtained by all FNGOs that have submitted the Technical proposals will be tabulated. In case there are more than three FNGOs that have obtained more than 55 scores, only three top ranking FNGOs will be selected for pre-approval inspection. In case there are less than three FNGOs that have obtained more than 55 scores all such FNGOs will be selected for pre-approval inspection. Thereafter, the Evaluation Committee will institute a Committee for Pre-approval Inspection. Pre-approval Inspection will ascertain the capacity, systems and processes for (i) SHG mobilization; In-situ SWC works; and (iii) livelihood development and correctness of the statements made in the bid for which scores.

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Based on this, the Evaluation committee will categories the selected FNGOs as: (i) Excellent, (ii) Good; (iii) Highly satisfactory; (iv) Satisfactory and (v) Unsatisfactory. An explanation for categorization will have to be provided by the committee. The following scores will be given based on the assessment of the committee: Excellent : 10 Good : 7.5 Highly satisfactory : 5 Satisfactory : 2.5 Unsatisfatctory : 0 These scores will be added to the scores given to the Technical Proposal Thereafter, final ranking will be worked out and approval from competent authorities will be obtained. UGVS will allocate name of the cluster(s) block(s) and districts with the highest ranking FNGO shortlisted.

6.1 Expected date and address for contract negotiations: Day/month/Year at PMU –Dehradun

7.1 The UGVS shall publish in its web-site instead of publishing in UNDB on-line and in the Development Gateway

7.2 Expected date for commencement of consulting at allotted/preferred block: Day/month/Year

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Section 3: Technical Proposal - Standard Forms

[Comments in brackets [ ] provide guidance to the shortlisted FNGOs for the preparation of their Technical Proposals; they should not appear on the Technical Proposals to be submitted.] TECH-1 Technical Proposal Submission Form TECH-2A FNGO‟s Organization and Experience

A FNGO‟s Organization B FNGO‟s Experience

TECH-3 Comments or Suggestions on the Terms of Reference – not provided

and not required TECH-4 Description of the Approach and Methodology for Performing the

Assignment TECH-5 Team Composition and Task Assignments TECH-6 Curriculum Vitae (CV) for Proposed FNGO Coordinator

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FORM TECH-1 TECHNICAL PROPOSAL SUBMISSION FORM

[Location, Date] To: [Name and address of Client] Dear Sirs: We, the undersigned, offer to provide services for ILSP in accordance with your Request for Proposal dated [Insert Date]. We are hereby submitting our Proposal, which includes this Technical Proposal only in a sealed envelope. We hereby declare that all the information and statements made in this Proposal are true and accept that any misinterpretation contained in it may lead to our disqualification. If negotiations are held during the period of validity of the Proposal, i.e., before the date indicated in Paragraph Reference 1.12 of the Data Sheet, we undertake to negotiate on the basis of the proposed staff. Our Proposal is binding upon us and is subject to the modifications resulting from Contract negotiations. We undertake, if our Proposal is accepted, to initiate the services related to the assignment not later than the date indicated in Paragraph Reference 7.2 of the Data Sheet. We confirm that our Technical Proposal can be delivered within the fixed budget indicated under clause 3.2 (b) of the Bid data Sheet and the attached Terms of Reference. We are interested in implementing the ILSP in the following cluster (s) /block (s) of ………district(s):

1) 2) We understand you are not bound to accept any Proposal you receive. We remain, Yours sincerely, Signature [In full]: Name and Title of Signatory: Name of FNGO: Address:

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FORM TECH-2A FNGO‟S ORGANIZATION AND EXPERIENCE

A - FNGO‟s Organization

[Provide here a brief (five pages) description of the background and organization of your FNGO and each associate if any for this assignment covering the points indicated below. Please provide documentary evidence wherever possible to substantiate your statements. The bidders should carefully study the Evaluation parameters and provide information and documents to substantiate those parameters.]

1. Background of the organization

2. Management structure

3. Details of staff: Provide a list containing names, gender, age, designation, qualification, total number of years of experience and number of years of experience in the organization of all professional staff.

4. Infrastructure Availability: Provide details of main office. Branches/sub-offices, training centres, computers, etc.

5. Experience: Provide details of coverage of the organization in terms of Districts, Blocks and Gram Panchayats with types of activities being implemented and the target group..

6. Financial Statements: Provide a copy of the audited Balance Sheet, Receipts and Payments, Income and Expenditure statement, Audit Reports along with Audit Observations and compliance thereof for 2009-2010, 2010-2011 and 2011-12.

7. Audit Reports: Provide copies of the Audit Reports along with Audit Observations and compliance thereof for 2009-2010, 2010-2011 and 2011-12.

8. Resource mobilization: Provide details of donors along with funds received with details of purpose during 2009-2010, 2010-2011 and 2011-12.

9. Compliance to regulatory requirements: Provide certified copies of tax returns/ acknowledgements for filing Balance Sheet and related financial statements with the regulatory authorities for 2009-2010, 2010-2011 and 2011-12.

10. SHG Mobilization: Provide details regarding coverage of states and districts, total SHGs mobilised, system of SHG account maintenance, audit of SHG accounts, number of SHGs credit linked, Provide letters from Banks/MFIs to evidence the number of SHGs mobilised and credit linked.

11. INRM/ Watershed Development/ In-situ water harvesting: Provide details regarding INRM/ Watershed Development/ In-situ water harvesting works undertaken with details of programmes in which the organization has participated and quantum of funding utilized with letters/MOU/Agreement with the donor agency.

12. Income generating Activities: Provide details of income generating activities promoted by the organization with methodology used for mobilising and financing beneficiaries, sub-sectors supported and number of households supported.

13. Integrated production and marketing support: Provide details of Integrated production and marketing / value chain related activities implemented by the organization including value chains promoted, methodology used, support provided, area coverage and number of households promoted.

14. Social Sector Activities: Provide information on experience in social sector activities such as education, health, sanitation, legal rights and HIV awareness.

15. Gender: Provide details regarding implementation of activities related to women‟s

rights, legal aid to women and other gender related programmes.

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16. Annual Report and MIS: Provide a copy of the Annual Report for 2011-12 that provides an analysis of the FNGO performance. Provide details of the existing system of MIS with a copy of the format used for reporting.

17. Documentation: Provide copies of the documents published that disseminate knowledge regarding SHG mobilization/ INRM/ Watershed Development/ In-situ water harvesting/ Livelihood Promotion.

B - FNGO‟s Experience

[Using the format below, provide information on each assignment for which your FNGO was legally contracted for implementing projects related to SHG mobilization, In-situ water harvesting, Integrated Production and Marketing Support/Value Chain Development and Enterprise development similar to the ones requested under this assignment during the last five years. Use not more than 5 pages. The bidders are required carefully study the Evaluation parameters and provide information and documents to substantiate those parameters.]

Project name:

Approx. value of the contract (in INR):

Country: India Location: Dehradun

Name of Client: UGVS

Address: Start date (month/year): Completion date (month/year):

Duration of Project (months):

Total No of staff-months of the assignment:

Approx. value of the services provided by your firm under the contract (in INR):

No of professional staff-months provided by

associated NGOs:

Name of associated NGOs, if any:

Name of senior professional staff of your firm involved and functions performed (indicate most significant profiles such as Project Director/Coordinator, Team Leader)

Narrative description of Project:

Description of actual services provided by your staff within the assignment:

Achievements:

FNGO/Institution/Agency‟s Name:

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FORM TECH-4 DESCRIPTION OF APPROACH AND METHODOLOGY FOR

PERFORMING THE ASSIGNMENT

[Technical approach and methodology are key components of the Technical Proposal. You are suggested to present your Technical Proposal (2 pages, inclusive of charts and diagrams) divided into the following two chapters:

a) Technical Approach and Methodology,

b) Preferred District and Blocks.

a) Technical Approach and Methodology. In this chapter you should explain your understanding of the objectives of the assignment, approach to the services, methodology for carrying out the activities and obtaining the expected results,. You should highlight the problems being addressed and their importance, and explain the technical approach you would adopt to address them.

b) Preferred District (s) and Block (s)/Cluster(s): The information relating the districts and blocks selected for implementation of the programme is provided in the Terms of Reference. The FNGO

is required to specify the districts and blocks of preference and indicate the reasons for the same.

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FORM TECH-6 CURRICULUM VITAE (CV) FOR PROFESSIONAL STAFF (FNGO COORDINATOR PROPOSED) 1. Proposed Position [only one candidate shall be nominated for each position]: 2. Name of FNGO [Insert name of FNGO proposing the staff]: 3. Name of Staff [Insert full name]: 4. Date of Birth: Nationality: 5. Education [Indicate college/university and other specialized education of staff member,

giving names of institutions, degrees obtained, and dates of obtainment]: 6. Other Training [Indicate significant training since degrees under 5 - Education were obtained]: 7. Languages [For each language indicate proficiency: good, fair, or poor in speaking, reading,

and writing]: 8. Employment Record [Starting with present position, list in reverse order every employment

held by the staff member since completion of academic training, giving for each employment (see format here below): dates of employment, name of employing organization, positions held.]:

From [Year]: To [Year]:

Employer: Positions held: Tasks performed: ____________________________________ 9. Certification: I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes myself, my qualifications, and my experience. I understand that any wilful misstatement described herein may lead to my disqualification or dismissal, if engaged. Date: [Signature of staff member or authorized representative of the staff] Day/Month/Year Full name of authorized representative:

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Section 4: Terms of Reference

1. Project Area

The Government of Uttarakhand (GOUK), with the support of the International Fund for Agricultural Development (IFAD) is implementing Integrated Livelihood Support Project (ILSP) in the districts as indicated in Table below. Under this assignment, each cluster will have about xxx

villages within a block and sometimes in two blocks. District Block Number of Villages and households

The project will ensure full participation of women in SHGs, Gram Sabhas and producer organisations. All households below the poverty-line will be able to participate in SHGs, the basic

unit of social mobilization.

2. Targeting

[to be inserted]

3. Project Rationale and Objectives

[to be inserted]

4. Detailed Tasks of FNGOs

[to be inserted]

5. Terms of Reference of FNGO staff

[to be inserted]

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6. Detailed costs of Engaging FNGO

Period of Engagement: The selected FNGOs will be engaged for a period of xxxx years subject to satisfactory performance. Allocation of Blocks: The selected FNGOs will be allocated to undertake all tasks listed above in all the villages to be covered in an allocated block/Cluster. Capital costs for FNGO for undertaking activities in xxxx villages: A field office would be established by the FNGO in a convenient location for servicing the villages. The capital costs for establishing an office is provided below. The Project will provide funding for purchase of office equipments including the furniture. The equipments provided and purchased shall be used only for official purposes connected with the implementation of the project. At the time of contract termination FNGO will have to reimburse the cost of major equipments and furniture at a depreciated cost of 30% per annum for computers and printers and at 25% per annum for other equipments and furniture.

Capital cost per Block office for procuring these equipments is estimated at Rs. xxxx

Vehicle and Equipments Unit cost

(Rs) Quantity Total cost

Lap top Computer

Printer

Other equipments

Furniture

Miscellaneous equipment and facilities

Total

Operational Costs: The operational costs would be Rs. XXX per month.

Details Cost per month (Rs.)

Total monthly operational costs

UGVS will reimburse the net monthly operational costs as indicated above to the FNGO. The reimbursements will be based on submission of statement expenditure by the FNGO supported with copies of vouchers. An allocation of Rs xxx per month has been made towards user charges of Motorbikes. Each staff with motorbike will get this user charge. In the event, some staff are not able to purchase motorbike, it is the responsibility of FNGO to provide motorbike and claim the user charges. Salary and Operational costs will be reviewed every year to ensure yearly increment to the staff. The revision will be applicable to all the selected FNGOs. In the event, FNGOs are not able to engage staff with qualifications as indicated above, UGVS and FNGO may agree by mutual consent to reduce the salary payable to staff with lower qualification and less experience and an addendum to the contract will be signed between the FNGO and JTDS. Overhead costs: UGVS will provide an overhead cost at a 25% rate to FNGOs

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FNGO’s Reporting Obligations

The FNGO will initiate its activities in the villages/cluster assigned to it soon after signing the Agreement. The FNGO will report to the DPMO of the respective district. All reports will have to be submitted to the DPMO based on the format provided by UGVS. The FNGO‟s reporting obligations are as follows:

An Inception Report within one month of the start of the assignment covering activities undertaken to date and a Tentative Quarter-wise Plan of Action for the First Year of the assignment.

Regular Monthly/Quarterly Reports through the period of the Agreement and these reports will be submitted within 15 days from the end of the reporting month/quarter. The Quarterly Report will have to also contain action plan for the following month/quarter.

Annual Reports at the end of each fiscal year showing progress, issues addressed, emerging issues to be addressed in the next plan, problems/constraints encountered and problems/constraints still to be resolved. It will also report on any innovative methods used to do work or work done differently; and also qualitative and quantitative reporting of short-term impacts of the project interventions on the community in their respective clusters.

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Section 5: Standard Form of Contract

FNGO Services

CONTRACT FOR FNGO SERVICES

Between

UGVS

and

…………………………………….

Dated:

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Standard Form of Contract

This CONTRACT (hereinafter called the “Contract”) is made the ……… day of the ………month of Two thousand eleven, between, on the one hand, UGVS (hereinafter called the “Client”) and, on the other hand, …………………………..(hereinafter called the “FNGO”). WHEREAS

(a) the Client has requested the FNGO to provide certain services as defined in this Contract (hereinafter called the “Services”);

(b) the FNGO, having represented to the Client that it has the required professional skills, and personnel and technical resources, has agreed to provide the Services on the terms and conditions set forth in this Contract;

(c) The Client is the Lead Project Agency for implementing the Integrated Livelihood Support Project (ILSP) funded jointly by a loan from the International Fund for Agriculture Development (IFAD) and financial support from GOUK. The client intends to apply a portion of the proceeds to eligible payments under this Contract. It being understood (i) that payments by IFAD will be made only at the request of the Client and upon approval by the IFAD, (ii) that such payments will be subject, in all respects, to the terms and conditions of the agreement providing for the loan between GOI/GoUK and IFAD and (iii) that no party other than the GOI/GoUK shall derive any rights from the agreement providing for the loan or have any claim to the loan proceeds;

NOW THEREFORE the parties hereto hereby agree as follows: 1. The following documents attached hereto shall be deemed to form an integral part of this

Contract: (a) The General Conditions of Contract; (b) The Special Conditions of Contract; (c) The following Appendices:

Appendix A: Description of Services Appendix B: Reporting Requirements Appendix C: Key Personnel of FNGOs

2. The mutual rights and obligations of the Client and the FNGO shall be as set forth in the Contract, in particular: (a) The FNGOs shall carry out the Services in accordance with the provisions of the

Contract; and (b) The Client shall make payments to the FNGOs in accordance with the provisions

of the Contract. IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be signed in their respective names as of the day and year first above written. For and on behalf of the UGV Society Project Director, [Authorized Representative] For and on behalf of …………………. __________________________________ [Authorized Representative]

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General Conditions of Contract

1. GENERAL PROVISIONS

1.1 Definitions Unless the context otherwise requires, the following terms whenever used in this Contract have the following meanings: (a) “Applicable Law” means the laws and any other instruments having

the force of law in the Government‟s country, or in such other country as may be specified in the Special Conditions of Contract (SCC), as they may be issued and in force from time to time.

(b) “Fund” means the International Fund for Agricultural Development, Rome, Italy

(c) “FNGO” means any private or public entity that will provide the Services to the Client under the Contract.

(d) “Contract” means the Contract signed by the Parties and all the attached documents listed in its Clause 1, that is these General Conditions (GC), the Special Conditions (SC), and the Appendices.

(e) “Contract Price” means the price to be paid for the performance of the Services, in accordance with Clause 6;

(f) “Effective Date” means the date on which this Contract comes into force and effect pursuant to Clause GC 2.1.

(g) “Foreign Currency” means any currency other than the currency of the Client‟s country.

(h) “GC” means these General Conditions of Contract.

(i) “Government” means the Government of the Client‟s country.

(j) “Local Currency” means the Indian Rupees.

(k) “Member” means any of the entities that make up the joint venture/consortium/association, and “Members” means all these entities.

(l) “Party” means the Client or the FNGO, as the case may be, and “Parties” means both of them.

(m) “Personnel” mean persons hired by the FNGO assigned to the performance of the Services or any part thereof.

(n) “SCC” means the Special Conditions of Contract by which the GC may be amended or supplemented.

(o) “Services” means the work to be performed by the FNGO pursuant to this Contract, as described in Appendix A hereto.

(p) “In writing” means communicated in written form with proof of receipt. 1.2 Law Governing Contract

This Contract, its meaning and interpretation, and the relation between the Parties shall be governed by the Applicable Law.

1.3 Language This Contract has been executed in the language specified in the SC, which shall be the binding and controlling language for all matters relating to the meaning or interpretation of this Contract.

1.4 Notices

1.4.1 Any notice, request or consent required or permitted to be given or made pursuant to this Contract shall be in writing. Any such notice, request or consent shall be deemed to have been given or made when delivered in person to an authorized representative of the Party to whom the communication is addressed, or when sent to such Party at the address specified in the SCC.

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1.4.2 A Party may change its address for notice hereunder by giving the other Party notice in writing of such change to the address specified in the SCC.

1.5 Location The Services shall be performed at such locations as are specified in Appendix A hereto and, where the location of a particular task is not so specified, at such locations, whether in the Government‟s country or elsewhere, as the Client may approve.

1.6 Authority of Member in Charge

In case the FNGO consists of a joint venture/ consortium/ association of more than one entity, the Members hereby authorize the entity specified in the SC to act on their behalf in exercising all the FNGO‟s rights and obligations towards the Client under this Contract, including without limitation the receiving of instructions and payments from the Client.

1.7 Authorized Representatives 1.8 Taxes and Duties 1.9 Fraud and Corruption 1.9.1 Definitions

Any action required or permitted to be taken, and any document required or permitted to be executed under this Contract by the Client or the FNGO may be taken or executed by the officials specified in the SCC. The FNGO, Sub-FNGOs, and their Personnel shall pay such indirect taxes, duties, fees, and other impositions levied under the Applicable Law as specified in the SCC, the amount of which is deemed to have been included in the Contract Price. It is the Fund‟s policy to require that Borrowers (including beneficiaries of Fund loans), as well as FNGOs under Fund-financed contracts, observe the highest standard of ethics during the selection and execution of such contracts. In pursuance of this policy, the Fund:

(a) defines, for the purpose of this provision, the terms set forth below as follows: (i) “corrupt practice” means the offering, receiving, or soliciting,

directly or indirectly, of any thing of value to influence the action of a public official in the selection process or in contract execution;

(ii) “fraudulent practice” means a misrepresentation or omission of facts in order to influence a selection process or the execution of a contract;

(iii) “collusive practices” means a scheme or arrangement between two or more FNGOs, with or without the knowledge of the Borrower, designed to establish prices at artificial, noncompetitive levels;

(iv) “coercive practices” means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract;

1.9.2 Measures to be taken

(b) will cancel the portion of the loan allocated to a contract if it determines at any time that representatives of the Borrower or of a beneficiary of the loan were engaged in corrupt, fraudulent, collusive or coercive practices during the selection process or the execution of that contract, without the Borrower having taken timely and appropriate action satisfactory to the Fund to remedy the situation;

(c) will sanction a FNGO, including declaring the FNGO ineligible, either indefinitely or for a stated period of time, to be awarded a Fund-financed contract if it at any time determines that the FNGO has, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercive practices in competing for, or in executing, a Fund-financed contract;

1.9.3 Commis-sions and Fees

(d) will require the successful FNGO to disclose any commissions or fees that may have been paid or are to be paid to agents, representatives, or commission agents with respect to the selection process or execution of the contract. The information disclosed must include at least the name and address of the agent,

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representative, or commission agent, the amount and currency, and the purpose of the commission or fee.

2. COMMENCEMENT, COMPLETION, MODIFICATION AND TERMINATION OF CONTRACT

2.1 Effectiveness of Contract

This Contract shall come into effect on the date the Contract is signed by both Parties and such other later date as may be stated in the SCC. The date the Contract comes into effect is defined as the Effective Date.

2.2 Commence-ment of Services

The FNGO shall begin carrying out the Services not later than the number of days after the Effective Date specified in the SCC.

2.3 Expiration of Contract

Unless terminated earlier pursuant to Clause GC 2.6 hereof, this Contract shall expire at the end of such time period after the Effective Date as specified in the SCC.

2.4 Modifications or Variations

Any modification or variation of the terms and conditions of this Contract, including any modification or variation of the scope of the Services, may only be made by written agreement between the Parties. However, each Party shall give due consideration to any proposals for modification or variation made by the other Party.

2.5 Force Majeure

2.5.1 Definition For the purposes of this Contract, “Force Majeure” means an event which is beyond the reasonable control of a Party and which makes a Party‟s performance of its obligations under the Contract impossible or so impractical as to be considered impossible under the circumstances.

2.5.2 No Breach of Contract

The failure of a Party to fulfil any of its obligations under the contract shall not be considered to be a breach of, or default under, this Contract insofar as such inability arises from an event of Force Majeure, provided that the Party affected by such an event (a) has taken all reasonable precautions, due care and reasonable alternative measures in order to carry out the terms and conditions of this Contract, and (b) has informed the other Party as soon as possible about the occurrence of such an event.

2.5.3 Extension of Time

Any period within which a Party shall, pursuant to this Contract, complete any action or task, shall be extended for a period equal to the time during which such Party was unable to perform such action as a result of Force Majeure.

2.5.4 Payments During the period of their inability to perform the Services as a result of an event of Force Majeure, the FNGO shall be entitled to continue to be paid under the terms of this Contract.

2.6 Termination

2.6.1 By the Client

The Client may terminate this Contract in case of the occurrence of any of the events specified in paragraphs (a) through (f) of this Clause GC 2.6.1. In such an occurrence the Client shall give a not less than thirty (30) days‟ written notice of termination to the FNGO, and sixty (60) days‟ in the case of the event referred to in (e). (a) If the FNGO does not remedy a failure in the performance of their

obligations under the Contract, within thirty (30) days after being notified or within any further period as the Client may have subsequently approved in writing.

(b) If the FNGO becomes insolvent or bankrupt.

(c) If the FNGO, in the judgment of the Client has engaged in corrupt or fraudulent practices in competing for or in executing the Contract.

(d) If, as the result of Force Majeure, the FNGO are unable to perform a material portion of the Services for a period of not less than sixty (60)

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2.6.2 By the FNGO

days.

(e) If the Client, in its sole discretion and for any reason whatsoever, decides to terminate this Contract.

(f) If the FNGO fails to comply with any final decision reached as a result of arbitration proceedings pursuant to Clause GC 8 hereof.

The FNGOs may terminate this Contract, by not less than thirty (30) days‟ written notice to the Client, such notice to be given after the occurrence of any of the events specified in paragraphs (a) through (c) of this Clause GC 2.6.2: (a) If the Client fails to pay any money due to the FNGO pursuant to this

Contract and not subject to dispute pursuant to Clause GC 7 hereof within forty-five (45) days after receiving written notice from the FNGO that such payment is overdue.

(b) If, as the result of Force Majeure, the FNGO is unable to perform a material portion of the Services for a period of not less than sixty (60) days.

(c) If the Client fails to comply with any final decision reached as a result of arbitration pursuant to Clause GC 8 hereof.

2.6.3 Payment upon Termination

Upon termination of this Contract pursuant to Clauses GC 2.6.1 or GC 2.6.2, the Client shall make the following payments to the FNGO: (a) payment pursuant to Clause GC 6 for Services satisfactorily

performed prior to the effective date of termination; (b) except in the case of termination pursuant to paragraphs (a) through

(c), and (f) of Clause GC 2.6.1, claims of task completed to the prompt and orderly termination of the Contract.

3. OBLIGATIONS OF THE FNGO

3.1 General 3.1.1 Standard of Performance 3.2 Conflict of Interests 3.2.1 FNGOs Not to Benefit from Commissions, Discounts, etc. 3.2.2 FNGO and Affiliates Not to be Otherwise Interested in Project

The FNGO shall perform the Services and carry out their obligations hereunder with all due diligence, efficiency and economy, in accordance with generally accepted professional standards and practices, and shall observe sound management practices, and employ appropriate technology and safe and effective equipment, machinery, materials and methods. The FNGO shall always act, in respect of any matter relating to this Contract or to the Services, as faithful advisers to the Client, and shall at all times support and safeguard the Client‟s legitimate interests in any dealings with Sub-FNGOs or third Parties. The FNGO shall hold the Client‟s interests paramount, without any consideration for future work, and strictly avoid conflict with other assignments or their own corporate interests. The payment of the FNGO pursuant to Clause GC 6 shall constitute the FNGO‟s only payment in connection with this Contract or the Services, and the FNGO shall not accept for their own benefit any trade commission, discount, or similar payment in connection with activities pursuant to this Contract or to the Services or in the discharge of their obligations under the Contract, and the FNGO shall use their best efforts to ensure that the Personnel similarly shall not receive any such additional payment. The FNGO agrees that, during the term of this Contract and after its termination, the FNGO and any entity affiliated with the FNGO, as well as any Sub-FNGOs and any entity affiliated with such Sub-FNGOs, shall be disqualified from providing goods, works or services (other than consulting services) resulting from or directly related to the FNGO‟s Services for the preparation or implementation of the project.

3.2.3 Prohibition of Conflicting Activities

The FNGO shall not engage, and shall cause their Personnel as well as their Sub-FNGOs and their Personnel not to engage, either directly or indirectly, in any business or professional activities which would conflict

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with the activities assigned to them under this Contract.

3.3 Confidentiality Except with the prior written consent of the Client, the FNGO and the Personnel shall not at any time communicate to any person or entity any confidential information acquired in the course of the Services, nor shall the FNGO and the Personnel make public the recommendations formulated in the course of, or as a result of, the Services.

3.4 Insurance to be Taken Out by the FNGO

The FNGO (a) shall take out and maintain, and shall cause any Sub-FNGOs to take out and maintain, at their (or the Sub-FNGOs‟, as the case may be) own cost but on terms and conditions approved by the Client, insurance against the risks, and for the coverage, as shall be specified in the SC; and (b) at the Client‟s request, shall provide evidence to the Client showing that such insurance has been taken out and maintained and that the current premiums have been paid.

3.5 FNGO‟s Actions Requiring Client‟s Prior Approval

The FNGO shall obtain the Client‟s prior approval in writing before taking any of the following actions: (a) entering into a subcontract for the performance of any part of the

Services, (b) appointing such members of the Personnel not listed by name in

Appendix C, and (c) any other action that may be specified in the SC.

3.6 Reporting Obligations

(a) The FNGO shall submit to the Client the reports and documents specified in Appendix B hereto, in the form, in the numbers and within the time periods set forth in the said Appendix.

(b) Final reports shall be delivered in CD ROM in addition to the hard copies specified in said Appendix.

3.7 Documents Prepared by the FNGO to be the Property of the Client

(a) All plans, drawings, specifications, designs, reports, other documents and software submitted by the FNGO under this Contract shall become and remain the property of the Client, and the FNGO shall, not later than upon termination or expiration of this Contract, deliver all such documents to the Client, together with a detailed inventory thereof.

(b) The FNGO may retain a copy of such documents and software. Restrictions about the future use of these documents, if any, shall be specified in the SC.

3.8 Accounting, Inspection and Auditing

The FNGO (i) shall keep accurate and systematic accounts and records in respect of the Services hereunder, in accordance with internationally accepted accounting principles and in such form and detail as will clearly identify all relevant time changes and costs, and the bases thereof, and (ii) shall periodically permit the Client or its designated representative and/or the Fund, and up to three years from the expiration or termination of this Contract, to inspect the same and make copies thereof as well as to have them audited by auditors appointed by the Client or the Fund, if so required by the Client or the Fund as the case may be.

4. FNGO‟S PERSONNEL

4.1 Description of Personnel

The FNGO shall employ and provide such qualified and experienced Personnel and Sub-FNGOs as are required to carry out the Services. The titles, agreed job descriptions, minimum qualifications, and estimated periods of engagement in the carrying out of the Services of the FNGO‟s Key Personnel are described in Appendix C. The Key Personnel and Sub-FNGOs listed by title as well as by name in Appendix C are hereby approved by the Client.

4.2 Removal and/or Replacement of Personnel

(a) Except as the Client may otherwise agree, no changes shall be made in the Key Personnel. If, for any reason beyond the reasonable control of the FNGO, such as retirement, death, medical incapacity, among others, it becomes necessary to replace any of the Key Personnel, the FNGO shall provide as a replacement a person of equivalent or better

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qualifications.

(b) If the Client finds that any of the Personnel have (i) committed serious misconduct or have been charged with having committed a criminal action, or (ii) have reasonable cause to be dissatisfied with the performance of any of the Personnel, then the FNGO shall, at the Client‟s written request specifying the grounds thereof, provide as a replacement a person with qualifications and experience acceptable to the Client.

(c) The FNGO shall have no claim for additional costs arising out of or incidental to any removal and/or replacement of Personnel.

5. OBLIGATIONS OF THE CLIENT

5.1 Assistance and Exemptions

The Client shall use its best efforts to ensure that the Government shall provide the FNGO such assistance and exemptions as specified in the SC.

5.2 Change in the Applicable Law Related to Taxes and Duties

If, after the date of this Contract, there is any change in the Applicable Law with respect to taxes and duties which increases or decreases the cost incurred by the FNGO in performing the Services, then the remuneration and reimbursable expenses otherwise payable to the FNGO under this Contract shall be increased or decreased accordingly by agreement between the Parties, and corresponding adjustments shall be made to the amounts referred to in Clauses GC 6.2 (a) or (b), as the case may be.

5.3 Services and Facilities

The Client shall make available free of charge to the FNGO the Services and Facilities as set out in the SC.

6. PAYMENTS TO THE FNGO

6.1 Lump-Sum Payment

The total payment due to the FNGO shall not exceed the Contract Price which is an all inclusive fixed lump-sum covering all costs required to carry out the Services described in Appendix A. The reporting requirements and the Key Personnel of the FNGO are provided in Appendix B and C. Except as provided in Clause 5.2, the Contract Price may only be increased above the amounts stated in Clause 6.2 if the Parties have agreed to additional payments in accordance with Clause 2.4.

6.2 Contract Price (a) The price payable in foreign currency/currencies is set forth in the SCC. (b) The price payable in local currency is set forth in the SCC.

6.3 Payment for Additional Services

For the purpose of determining the remuneration due for additional services as may be agreed under Clause 2.4, a breakdown of the lump-sum price is provided in clause 6.4 of the SCC.

6.4 Terms and Conditions of Payment

Payments will be made to the account of the FNGO and according to the payment schedule stated in the SCC. Unless otherwise stated in the SCC, the first payment shall be made against the provision by the FNGO of an advance payment guarantee for the same amount, and shall be valid for the period stated in the SCC. Such guarantee shall be in the form set forth in Appendix D hereto, or in such other form, as the Client shall have approved in writing. Any other payment shall be made after the conditions listed in the SCC for such payment have been met, and the FNGO has submitted an invoice to the Client specifying the amount due.

7. GOOD FAITH

7.1 Good Faith The Parties undertake to act in good faith with respect to each other‟s rights under this Contract and to adopt all reasonable measures to ensure the realization of the objectives of this Contract.

8. SETTLEMENT OF DISPUTES

(i) Amicable

Settlement

The Parties agree that the avoidance or early resolution of disputes is crucial for a smooth execution of the Contract and the success of the assignment. The Parties shall use their best efforts to settle amicably all disputes arising out of or in connection with this Contract or its interpretation.

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8.2 Dispute Resolution

Any dispute between the Parties as to matters arising pursuant to this Contract that cannot be settled amicably within thirty (30) days after receipt by one Party of the other Party‟s request for such amicable settlement may be submitted by either Party for settlement in accordance with the provisions specified in the SCC.

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Special Conditions of Contract

Number of GC Clause

Amendments of, and Supplements to, Clauses in the General Conditions of Contract

1.1(a) “Applicable Law” means the laws and any other instruments having the force of law in India for the time being

1( q) “Day” means calendar day.

1 (m) “Personnel” means professionals and support staff provided by the FNGO or by any Sub-Contractors and assigned to perform the Services or any part thereof;

1 (r) “Sub-Contractors” means any person or entity to whom/which the FNGO subcontracts any part of the Services.

1 (s) “Third Party” means any person or entity other than the “Client” or the FNGO.

1.3 The language/s English/Hindi

1.4 The addresses are: Client: The Project Director UGVS -ILSP Dehradun, Uttarakhand Facsimile: E-mail: FNGO: Facsimile: E-mail:

1.7 The Authorized Representatives are: The Project Director, UGVS, Dehradun, Uttarakhand For the FNGO:

1.8 The Management Fee shall include applicable service tax if any. The Client will deduct applicable TDS from the management fee and production of tax exemption certificate acceptable to the Client will entail cessation of TDS deduction.

1.9.2 Measures to be taken by the Client (a) The Client may terminate the contract if it determines at any time that representatives of the FNGO were engaged in corrupt, fraudulent, collusive or coercive practices during the selection process or the execution of that contract, without the FNGO having taken timely and appropriate action satisfactory to the client to remedy the situation; (b) The Client may also sanction against the FNGO, including declaring the FNGO

ineligible, either indefinitely or for a stated period of time, to be awarded a contract if it at

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any time determines that the FNGO has, directly or through an agent, engaged in

corrupt, fraudulent, collusive or coercive practices in competing for, or in executing, a Client-financed contract;

2.1 The Effective Date is …………………

2.1.1 Termination of Contract for Failure to Become Effective: If this Contract has not

become effective within such time period after the date of the Contract signed by the

Parties as specified in the SCC, either Party may, by not less than twenty one (21) days

written notice to the other Party, declare this Contract to be null and void, and in the

event of such a declaration by either Party, neither Party shall have any claim against the

other Party with respect hereto.

2.2 The date for the commencement of services is …………….

2.3 The time period shall be five Years and to be extended based on the performance as assessed by UGVS.

2.5 Force majeure

2.5.1 Definition (a) For the purposes of this Contract, “Force Majeure” means an event which is beyond the reasonable control of a Party, is not foreseeable, is unavoidable and not brought about by or at the instance of the Party claiming to be affected by such events and which has caused the non-performance or delay in performance, and which makes a Party‟s performance of its obligations hereunder impossible or so impractical as reasonably to be considered impossible in the circumstances, and includes, but is not limited to, war, riots, civil disorder, earthquake, fire, explosion, storm, flood or other extreme adverse weather conditions, strikes, lockouts or other industrial action (except where such strikes, lockouts or other industrial action are within the power of the Party invoking Force Majeure to prevent), confiscation or any other action by Government agencies. (b) Force Majeure shall not include (i) any event which is caused by the negligence or intentional action of a Party or by or of such Party‟s Sub-contractors or agents or employees, nor (ii) any event which a diligent Party could reasonably have been expected both to take into account at the time of the conclusion of this Contract, and avoid or overcome in the carrying out of its obligations hereunder. (c) Subject to clause 2.5.2, Force Majeure shall not include insufficiency of funds or

inability to make any payment required hereunder.

2.5.3 Measures to be Taken: (a) A Party affected by an event of Force Majeure shall continue

to perform its obligations under the Contract as far as is reasonably practical, and shall take all reasonable measures to minimize the consequences of any event of Force Majeure. (b) A Party affected by an event of Force Majeure shall notify the other Party of such event as soon as possible, and in any case not later than fourteen (14) days following the occurrence of such event, providing evidence of the nature and cause of such event, and shall similarly give written notice of the restoration of normal conditions as soon as possible. (c) Any period within which a Party shall, pursuant to this Contract, complete any action or task, shall be extended for a period equal to the time during which such Party was unable to perform such action as a result of Force Majeure. (d) During the period of their inability to perform the Services as a result of an event of

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Force Majeure, the FNGO, upon instructions by the “Client”, shall either: (i) demobilize,; or (ii) Continue with the Services to the extent possible, in which case the FNGO shall continue to be paid proportionately and on prorate basis, under the terms of this Contract. (e) In the case of disagreement between the Parties as to the existence or extent of

Force Majeure, the matter shall be settled according to Clause GC 8.

2.5.5 Suspension: The “Client” may, by written notice of suspension to the FNGO, suspend

all payments to the FNGO hereunder if the FNGO fails to perform any of its obligations under this Contract, including the carrying out of the Services, provided that such notice

of suspension (i) shall specify the nature of the failure, and (ii) shall allow the FNGO to

remedy such failure, if capable of being remedied, within a period not exceeding thirty

(30) days after receipt by the FNGO of such notice of suspension.

2.6 Termination

2.6.1.1 By the “Client”: The “Client” may terminate this Contract in case of the occurrence of

any of the events specified in paragraphs (a) through (i) of this Clause. (a) If the FNGO fails to remedy a failure in the performance of its obligations hereunder, as specified in a notice of suspension pursuant to Clause GC 2.5.5 hereinabove, within thirty (30) days of receipt of such notice of suspension or within such further period as the “Client” may have subsequently approved in writing. (b) If the FNGO becomes (or, if the FNGO consists of more than one entity, if any of its Members becomes and which has substantial bearing on providing Services under this contract) insolvent or go into liquidation or receivership whether compulsory or voluntary. (c) If the FNGO fails to comply with any final decision reached as a result of arbitration proceedings pursuant to Clause GC 8 hereof. (d) If the FNGO, in the judgment of the “Client”, has engaged in corrupt or fraudulent

practices in competing for or in executing this Contract.

(e) If the FNGO submits to the “Client” a false statement which has a material effect

on the rights, obligations or interests of the “Client”.

(ee) If the FNGO places itself in position of conflict of interest or fails to disclose promptly any conflict of interest to the Client. (f) If the FNGO fails to provide the quality services as envisaged under this Contract. (g) If the FNGO fails to satisfactorily respond to the grievances if any of the members of SHGs mobilized on behalf of the ”Client” (h) If, as the result of Force Majeure, the FNGO is unable to perform a material portion of the Services for a period of not less than sixty (60) days. (i) If the “Client”, in its sole discretion and for any reason whatsoever, decides to terminate this Contract.

2.6.1.2 In such an occurrence the “Client” shall give a not less than thirty (30) days‟ written

notice of termination to the FNGO, and sixty (60) days‟ in case of the event referred to in

(h).

2.6.2 By the FNGO: The FNGO may terminate this Contract, by not less than thirty (30) days‟

written notice to the “Client”, in case of the occurrence of any of the events specified in

paragraphs (a) through (d) of this Clause GC 2.6.2.

(a) If the “Client” fails to pay any money due to the FNGO pursuant to this Contract

and not subject to dispute pursuant to Clause GC 8 hereof within forty-five (45) days

after receiving written notice from the FNGO that such payment is overdue.

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(b) If, as the result of Force Majeure, the FNGO is unable to perform a material

portion of the Services for a period of not less than sixty (60) days. (c) If the “Client” fails to comply with any final decision reached as a result of arbitration pursuant to Clause GC 8 hereof. (d) If the “Client” is in material breach of its obligations pursuant to this Contract and has not remedied the same within forty-five (45) days (or such longer period as the FNGO may have subsequently approved in writing) following the receipt by the “Client” of the FNGO‟s notice specifying such breach.

2.6.3 Payment upon Termination: Upon termination of this Contract pursuant to Clauses SCC 2.6.1 or SC 2.6.2 hereof, the “Client” shall make the following payments to the FNGO: If the agreement is terminated pursuant of Clause 2.6.1 (a) to (i), the FNGO shall not be entitled to receive any agreed payments upon termination of the contract. However, the “Client” may consider making payment for the part satisfactorily performed on the basis of Quantum Merit as assessed by it, if such part is of economic utility to the Client.

2.6.4 Cessation of Rights and Obligations: Upon termination of this Contract pursuant to

Clauses SCC 2.1.1 or clauses 2.6.1 and 2.6.2 of GC and SCC hereof, or upon expiration of this Contract pursuant to Clause GC 2.3 hereof, all rights and obligations of the Parties hereunder shall cease, except (i) such rights and obligations as may have accrued on the date of termination or expiration, (ii) the obligation of confidentiality set

forth in Clause GC 3.3 hereof, (iii) the FNGO‟s obligation to permit inspection, copying and auditing of their accounts and records set forth in Clause GC 3.8 hereof, and (iv) any right which a Party may have under the Law.

2.6.5 Cessation of Services: Upon termination of this Contract by notice of either Party to the other pursuant to Clauses GC 2.6.1 or GC 2.6.2 hereof, the FNGO shall, immediately upon dispatch or receipt of such notice, take all necessary steps to bring the Services to a close in a prompt and orderly manner and shall make every reasonable effort to keep expenditures for this purpose to a minimum. With respect to documents prepared by the FNGO and equipment and materials furnished by the “Client”, the FNGO shall proceed as provided, respectively, by Clauses GC 3.9 or GC 3.10 hereof.

3.2 The FNGO shall hold the “Client‟s interests paramount, without any consideration for future work, and strictly avoid conflict of interest with other assignments or their own corporate interests. If during the period of this contract, a conflict of interest arises for any reasons, the FNGO shall promptly disclose the same to the Client and seek its instructions

3.7 The FNGO shall not use the documents, data and software generated during the program implementation for purposes unrelated to this contract without prior approval from the Client.

3.8 The FNGO shall maintain a separate bank account and books of accounts to receive project support. The FNGO shall as a part of its regular auditing process, obtain an Audit Certificate from its Auditor reconciling the funds received from the Client and utilization for the eligible program activities. This certificate shall be submitted to the Client not later than 90 days from the end of each financial year. FNGO shall keep all documents related to the bid and contract for three years after completion of the contract. FNGO shall allow and cooperate with agents or representatives of IFAD to carry out audit or inspection of these documents.

3.9 Equipment, Vehicles and Materials Furnished by the “Client”: Equipment, vehicles and materials made available to the FNGO by the “Client”, or purchased by the FNGO wholly or partly with funds provided by the “Client”, shall be the property of the “Client” and shall be marked accordingly.

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Upon termination of this contract prior to expiration of the contract, FNGO will have to reimburse the cost of major equipments and furniture at a depreciated cost of 30% per annum for computers and printers and 25% per annum for other equipments and furniture. Upon expiration of this Contract, the FNGO shall make available to the “Client” an inventory of such equipment, vehicles and materials and shall dispose of such equipment and materials in accordance with the “Client‟s” instructions. While in possession of such equipment, vehicles and materials, the FNGO, unless otherwise instructed by the “Client” in writing, shall insure them at the expense of the “Client” in an amount equal to their full replacement value.

3.10 Equipment and Materials Provided by the FNGOs: Equipment or materials brought by

the FNGO and the Personnel and used either for the Project or personal use shall

remain the property of the FNGO or the Personnel concerned, as applicable.

4.1 The FNGO shall not engage any person with criminal records as its staff for

implementing this programme.

4.2 FNGO shall ensure minimum tenure of three years for the NGO Coordinator In event the

FNGO intends to change a NGO Coordinator due to unavoidable circumstance, approval

of the Client will have to be obtained detailing the reasons for change along with a bio-

data of the replacement.

5.3 Not Applicable

6.2

The details of the Bank Account of the FNGO are: [insert account]

Names of the Cluster(s)/ Block(s) allotted to the FNGO: COST OF FNGO SERVICES PER CLUSTER/BLOCK Cost of Equipments and Furniture

The total capital cost of procuring these equipments is estimated at Rs. XXX

Vehicle and Equipments Unit cost


Laptop Computer

Printer

Other equipments

Furniture

Other and miscellaneous equipment

Total

The Client shall pay a 50% of the COST of equipment and furniture upon signing the contract and release the balance upon submission of the utilization certificate for at least 75% of the amount released supported by copies of bills/invoices and vouchers. Operational Costs: The operational costs per month.

Salary, O&M costs, vehicle running etc Unit cost


(Rs)

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The client will reimburse net monthly operational costs as indicated above to the FNGO. The client will provide an advance to cover three months‟ expenditure and reimbursements will be made monthly based on submission of statement expenditure by the FNGO supported with evidence of payment of salary and copies of vouchers. An allocation of Rs xxx per month has been made towards user charges of Motorbikes. Each staff with motorbike will get this user charge. In the event, some staff are not able to purchase motorbike, it is the responsibility of FNGO to provide motorbike and claim the user charges. Salary and Operational costs will be reviewed every year to ensure yearly increment to the staff. The revision will be applicable to all the selected FNGOs. Each year the Client and TSA will assess the performance of each FNGO and take a decision of salary and operational cost escalation and also continuation of FNGO services. In the event, FNGOs are not able to engage staff with qualifications as indicated above, UGVS and FNGO may agree by mutual consent to reduce the salary payable to staff with lower qualification and lees experience and an addendum to the contract with be signed between the FNGO and the Client. Overhead costs: The project will provide an overhead costs at a rate of a 25% over and above of the total cost of equipment, furniture and other operating costs. It is about 30% in case of technical NGO.

TOTAL PAYMENT TO FNGO: (The total amount payable will be arrived at by multiplying

the costs per Cluster/Block with the number Cluster/Block actually allocated to the FNGO

Rs......................

The invoices submitted will be settled within one month of receipt of claim with all relevant documents.

6.3 The Client may increase the number of Cluster/Blocks allotted during the course of the contract period and the contract price will be amended accordingly by signing an addendum to the contract.

6.4 Advance Payment Guarantee will be in the form of a Letter of Guarantee acceptable to the client.

7.2 Operation of the Contract: The Parties recognize that it is impractical in this Contract to

provide for every contingency which may arise during the life of the Contract, and the Parties hereby agree that it is their intention that this Contract shall operate fairly as between them, and without detriment to the interest of either of them, and that, if during the term of this Contract either Party believes that this Contract is operating unfairly, the Parties will use their best efforts to agree on such action as may be necessary to remove the cause or causes of such unfairness, but no failure to agree on any action pursuant to this Clause shall give rise to a dispute subject to arbitration in accordance with Clause GC 8 hereof. The contract shall be amended by mutual agreement by exchange of a letter between the FNGO and the Client.

8.2

Arbitration

a. If any dispute, difference or question shall at any time arise between the parties

concerning anything or as to the rights, liabilities and duties of the parties under this

agreement, except in respect of matters for which it is provided hereunder that the

decision of the Client is final and binding, the same shall be referred to arbitration and a

final decision after giving at least 30 days' notice in writing to the other (hereinafter

referred to as the “Notice for Arbitration”) clearly setting out the items of dispute to a sole

arbitrator who shall be appointed as hereinafter provided. For the purpose of appointing

the sole arbitrator referred to above, the Client shall send to the FNGO within thirty days

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of the “Notice of Arbitration”, a panel of three names of persons who shall be presently

unconnected with the organization of the Client or the FNGO.

b. The FNGO shall on receipt of the names as aforesaid select any one of the persons

so named to be appointed as the Sole Arbitrator and communicate his name to the

Client within 15 days of receipt of the names. The Client shall thereupon without any

delay appoint the said person as the Sole Arbitrator. If the FNGO fail to communicate

such selection as provided above within the period specified, the Client shall make the

selection and appoint the said person as the Sole Arbitrator.

c. If the Client fails to send to the FNGO the panel of three names as aforesaid within

the period specified, the FNGO shall send to the Client a panel of three names of

persons who shall be unconnected with either party. The Client shall on receipt of the

names as aforesaid, select any one of the persons and appoint him as the sole

arbitrator. If the Client fails to select the person and appoint him as the Sole Arbitrator

within 30 days of receipt of the panel and inform the FNGO accordingly, the FNGO shall

be entitled to appoint one of the persons from the panel as sole arbitrator and

communicate his name to the Client.

d. If the Arbitrator so appointed is unable or unwilling to act or refuses his appointment

or vacates his office due to any reason whatsoever another sole arbitrator shall be

appointed as aforesaid.

e. The arbitration shall be governed by the Arbitration & Conciliation Act, 1996 as in

force from time to time or any Ordinance or Legislation that may be made in lieu thereof.

The award of the Arbitration shall be binding and final on the parties. It is hereby agreed

that in all disputes referred to the Arbitration, the Arbitrator shall give a separate award

in respect of each dispute or difference in accordance with the terms of reference and

the award shall be a reasoned award.

8.3 The Arbitration proceedings shall take place in Dehradun, India

8.4 Fees: The fees, if any, of the arbitrator shall, if required to be paid before the award is

made and published, be paid in equal proportion by each of the parties. The cost of the

arbitration including the fees, if any, of the arbitrator shall be directed to be borne and

paid by such party or parties to the dispute in such manner or proportion as may be

directed by the arbitrator in the award.

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9. Miscellaneous provisions: (i) “Nothing contained in this Contract shall be construed as establishing or creating

between the Parities, a relationship of master and servant or principal and agent. The FNGO, subject to this Contract, has complete charge of Personnel and Sub-Contractors, if any, performing the Services and shall be fully responsible for the Services performed by them or on their behalf hereunder.

(ii) Any failure or delay on the part of any Party to exercise right or power under this Contract shall not operate as waiver thereof.

(iii) The FNGO shall notify the Client/ of any material change in their status, in particular, where such change would impact on performance of obligations under this Contract.

(iv) Each member/constituent of the FNGO, in case of a consortium, shall be jointly and severally liable to and responsible for all obligations towards the Client for performance of works/services including that of its Associates/Sub Contractors under the Contract.

(v) The FNGO shall at all times indemnify and keep indemnified the Client against

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all claims/damages etc. for any infringement of any Intellectual Property Rights (IPR) while providing its services under the Project.

(vi) The FNGO shall at all times indemnify and keep indemnified the Client against any claims in respect of any damages or compensation payable in consequences of any accident or injury sustained or suffered by its (the Contractor‟s/FNGO‟s) employees or agents or by any other third Party resulting from or by any action, omission or operation conducted by or on behalf of the FNGO.

(vii) The FNGO shall at all times indemnify and keep indemnified the Client against any and all claims by Employees, Workmen, Contractors, sub-contractors, suppliers, agent(s), employed engaged or otherwise working for the Contractor, in respect of wages, salaries, remuneration, compensation or the like.

(viii) All claims regarding indemnity shall survive the termination or expiry of the Contract.

(ix) It is acknowledged and agreed by all Parties that there is no representation of any type, implied or otherwise, of any absorption, regularization, continued engagement or concession or preference for employment of persons engaged by the (Contractor/FNGO) for any engagement, service or employment in any capacity in any office or establishment of the Client.

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IV. APPENDICES

APPENDIX A – DESCRIPTION OF SERVICES (INCLUDE INFORMATION FROM THE TOR)

APPENDIX B – REPORTING REQUIREMENTS (INCLUDE INFORMATION FROM THE TOR)

APPENDIX C – KEY PERSONNEL OF FNGOS (INCLUDE INFORMATION FROM THE TOR)