Presentation on 22nd July, 2010
S.G.S.Y/NRLM
Main Features of SGSY
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Formation of Self Help Groups of Rural BPL.
SHGs are encouraged to inculcate the habit of thrift.
Capacity Building and Skill Development Training of SHGs
Provision of credit linkage and subsidy for economic activity
Credit linked subsidy is provided in the form of Revolving Fund
& Capital Subsidy
20% (25% for NE States) of the allocation for infrastructure &
marketing support
15% of total allocation for special projects in the nature of
pioneer projects, capable of triggering growth impulses.
Reservation of benefits for SC/STs (50%), Women (40%),
Minorities (15%) and the disabled (3%) swarozgaris.
PERFORMANCE SINCE INCEPTION
Deliverables
Apr.1999 May’10
2009-10
Total Central Releases (Rs. In crore)
Total Investment (Rs. In crore)
Total Subsidy Disbursed (Rs. In crore)
Total Credit Disbursed (Rs. In crore)
Subsidy Credit Ratio
Per Capita Investment (in Rs.)
No. of SHGs formed (No. in lakhs)
Economically Assisted SHGs (No. in lakh)
Total Swarozgaris Assisted (No. in lakh)
Number of SC/ST Swarozgaris Assisted (No. in lakh)
14100
34000
11000
23000
1.98
24000 (avg)
38
9
140
67.92 (46%)
2230
6410
1960
4450
2.27
31800
3.89
1.36
21
10.75 (51%)
Number of Women Swarozgaris (No. in lakh)
84.27(59%)
15.02(72%)
Areas of Concerns under SGSY
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Uneven spread (weak in the poverty pockets in the country)
Poor quality of SHGs
Inadequate flow of credit-Need of multiple doses of credit
High interest rates
Inadequate Manpower & lack of professionals to implement the
complex and process oriented programme
 need a strong and huge team of community resource
persons
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Inadequate institutional arrangement for training
Fund driven rather than need based
Little flexibility to states
Most of the SHG enterprises economically unviable
Need for up-scaling of placement linked skill development
projects
New Paradigm……
Where the poor participate as subjects
and not as objects of the development process,
it is possible to generate growth, human
development and equity, not as mutually
exclusive trade-offs but as complementary
elements in the same process
--- Meeting the challenge, Report of the Independent South Asian
Commission on Poverty alleviation, 1992
Pro-poor Perspective & Premises for Action...
Building organisations of the poor is an essential
prerequisite for poverty alleviation. Through these
organisations, the poor can save and invest efficiently
Empowerment of the poor is the means to poverty
eradication. Through empowerment, the poor can
also assert the right to resources intended for them
and enhance their dignity and self respect
Poor women can effectively overcome their double
burden through the same process.
The need for sensitive support mechanisms to
catalyse the process of social mobilisation.
 --- Meeting the challenge, Report of the Independent South Asian Commission
on Poverty alleviation, 1992
Learnings regarding Way out of Poverty
 Poor have desire & capability to come out of poverty
 Capabilities are suppressed by variety of obstacles –
psychological, economic, social, religious, and political
 Way out of poverty
- Organizing the poor into institutions that they truly own.
-Building and nurturing S.H.Gs, enabling them to access
credit for
 coming out the high cost debt trap ( debt swapping)
 meeting their consumption needs – food, health, education,
etc
 acquiring assets for income generation
Flexible Design of NRLM
 Demand driven strategy
 Dedicated support organization for NRLM
 Universal Social mobilization of the rural poor
 Building institutional platforms for the poor
 Training and capacity building
 Developing pro-poor financial sector
 Access to services and entitlements
 Linking with markets
 Risk Mitigation
 Convergence
 Gender empowerment
 Monitoring and transparency
Sensitive Support
Organization
National Rural Livelihoods Mission
 Sensitive Support Organizational Structure
 State Level Support Organization
 Dedicated structure at District and Block Level
 Demand Driven Approach: Moving away from ‘allocation
based approach’
 States to prepare specific time bound action plans for poverty
elimination through (i) building peoples’ institutions, (ii)
livelihood development, and (iii) skill based wage employment
 Accountability Systems: Institution of systems like social
auditing for transparent and accountability
Financial Norms under NRLM
 5% of allocation for Administrative Cost
 Rs 10,000 per SHGs for formation
 Rs. 15,000 RF per SHG
 Capital Subsidy -Rs. 15,000 per swarozgaris for general &
Rs.20,000 for SC/ST & Disabled subject to Max Rs.2.5 lakh
per SHG
 Ensuring availability of credit at 7% rate of interest
 Rs. 7500 per swarozgari for training & CB
Financial Norms under NRLM
 One time grant assistance of Rs. 10,000 to
village/Panchayat level, Rs 20,000 to block level, Rs
100,000 to district level federations
 20% of allocation, of which expenditure on innovative
projects should not exceed 5%. 7.5% to be retained at
the centre for multi-state skill development projects and
remaining 7.5% for states to implement state specific
special projects for skill development and placement.
Strategies/Interventions proposed to be
adopted under NRLM
 Participatory identification approach for the poor
 CRP Strategy for formation of SHGs and their Capacity
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building & training
Federation to act as financial intermediaries
Facilitating SHG Bank linkage
Food security fund
Health Risk Fund
Risk Mitigation
Livelihood Interventions in Agriculture (SRI,SWI), animal
husbandry, off farm activities
Skills upgradation and placement of rural youth
Role of PRIs, NYKs, NGOs etc.
 Identification of the poor
 Capacity building & training
 Infrastructural Support
 Linkages of SHGs with Banks
 Marketing support
 Maintenance of record of SHG/VFs/BFs/DFs
 Monitoring and Social auditing
 Dissemination of best practices
 Engaging youths as BC/BFs
Role of PRIs, NYKs, NGOs etc.
 Career counselling for youth
 Database of youth – skills inventory and aptitudes
survey
 Opportunities for skill training
 Opportunities for placement
 RSETIs – self employment
Role of Media & IT
 Mass campaign through Radio, TV and print media by
introducing small films, TV serials etc
 Capacity building & training through Visual Media
 Development of content
 Showing best practices through media
 Promote community radio movement
 Use of local radio stations – involvement of local
communities in content
Poverty is an affront to human
dignity, and a cost to
the economy and the polity. Poverty
creates vulnerability, dependence
and
helplessness. It deprives society of
the productive energies of a
substantial
segment of its population,
contributing to instability and social
unrest.
Thank you