Presentation on Swarnjayanti Gram
Swarozgar Yojana (SGSY)/
National Rural Livelihoods Mission
(N.R.L.M)
Structure of Presentation
SGSY – status
Re-structuring S.G.S.Y into N.R.L.M
NRLM – Salient Features
NRLM roll out status
Issues
S.G.S.Y - Main Features
 S.G.S.Y - 1999: covering all aspects of selfemployment
 Organising Rural BPL into S.H.Gs, provision of
credit linked with subsidy for income generating
assets
 Identification of key activities
 Support provided for marketing and infrastructure
creation ( upto 20% of the SGSY allocation )
 Skill Development and Capacity Building Training
of SHGs leading to micro enterprise.
S.G.S.Y - Status
 Main Achievements since inception
 20 lakh BPL S.H.Gs covering 250 lakh
Swarozgaris
 152 lakh Swarozgaris assisted with bank credit
& subsidy
 Credit mobilization: Rs.1100 crore in 1999-00
to over Rs.4450 crore in 2009-10
 Per capita investment: Rs.17000 per beneficiary
in 1999 to Rs. 31800 in 2009
 Skills and placement special projects: About
2.31 lakh beneficiaries have been trained &
1.75lakh placed
SGSY- Progress – 2009-10 and 2010-11
09-10
10-11
No. of SHGs formed (lakh)
3.89
3.11
Economically Assisted SHGs (lakh)
2.92
3.12
20.85
21.09
Number of SC/ST Swarozgaris (lakh)
10.76 (52%)
10.97 (52%)
Number of Women Swarozgaris (lakh)
15.02(72%)
14.24 (67%)
2.41(12%)
2.44(12%)
Rs.2230 (96%)
Rs.2665(89%)
Total Investment (credit +subsidy) (crore
Rs.6409
Rs.6400
Total Subsidy Disbursed (crore)
Rs.1962
Rs.1814
Rs.4447(100%)
Rs. 4586 (88%)
31817
5
31375
Total Swarozgaris Assisted (lakh)
Number of Minorities Swarozgaris (lakh)
Total Central Release (%age against central
allocation) (crore)
Total Credit Disbursed (% against target)
(crore)
Per Capital Income (in Rupees)
S. No.
S.G.S.Y / N.R.L.M BUDGET FOR
2011/12 ( Rs.2914 crs)
Total
(Rs. in cr.)
1.
SGSY/NRLM - Grant in aid to
States
(support for formation of SHGs,
RF, Trg. and CB, subsidy, Mktg.
and infrastructure)
2191
2.
Special Projects
450
3.
M.K.S.P
200
4.
RSETI s
50
Restructuring S.G.S.Y
Shortcomings experienced during
implementation
Large scale initiatives of some states – A.P,
Kerala, and experiences of N.G.Os
Steering Committee constituted by the
Planning Commission for the 11th Plan - 2007
Recommendations of Prof. Radhakrishna
Committee - 2008
Key lessons from large scale Experiences
Even the poorest family can come out of
abject poverty , in 6 - 8 years provided:
• They are organized, build and nurture own
institutions, and, provided continuous
handholding support
• able to access thrift and credit in repeat
doses, for meeting varied priority
requirements. External finance of Rs. 1.0
lakh per family required
8
NRLM
Goal:
Poverty elimination through social
mobilization, institution building,
financial inclusion and a portfolio of
sustainable livelihoods.
VISION:
Each poor family should have an annual
income of at least Rs.50,000 per annum
( current poverty line is equivalent to
Rs.23,000 per family per annum)
9
NRLM
 Task: to reach out to 7.0 crores rural
poor households, and, stay engaged
with them till they come out of poverty
 Mission: To do this in a time bound
manner
N.R.L.M - SOCIAL MOBILISATION
Organising the poor – to ensure a woman from
each poor family is part of a S.H.G
Inclusion of the poorest, and meaningful role to
them in all processes
Institutions of poor, greatest source of strength
for the poor
Dedicated, professional, sensitive and
accountable support structure to initiate the
process
11
N.R.L.M – SOCIAL MOBILISATION
Poor to drive all project initiatives – key
role of social capital: S.H.G and federation
leaders, community professionals
Scaling up through community best
practitioners
Exit policy for external support structures
Transparency and accountability
Community self reliance and self
dependence
12
N.R.L.M – SOCIAL MOBILISATION
Piloting by national unit: Triggering this work in
40 districts and 100 Blocks
Proof of concept, training for state teams
Partnerships with experienced C.B.Os and
resource state societies
Similar strategy was followed in Bihar
Eventually these 100 blocks, and 1000 villages
become resource villages – training centres and
immersion sites
13
N.R.L.M - financial inclusion
Access to credit key to coming out of poverty.
A minimum of Rs.100,000 per family required,
in several doses over a period of 5 – 6 years. Of
this 90% has to come from financial
institutions.
Financial inclusion at affordable cost holds the
key
Building pro-poor financial sector
 Strategic partnerships with banking sector - intensive
district adoption by select banks
 SPV promoted by NABARD, SBI and State
Governments to finance S.H.Gs ( Karnataka)
 Accessing Co-operative banks – restructured after
Vaidyanathan committee recommendations
 Promoting Financial intermediation by mature S.H.G
federations
 A national bank for women S.H.Gs on the
lines of NABARD
Building pro-poor financial sector
 Leverage IT and business correspondents
models. SHGs and federations as B.Cs
 Facilitation support: ‘Bank Mitras’, Financial
literacy and financial counseling
 Interest subsidy on loans to S.H.Gs
 Micro insurance to cover life, health and assets
National Rural Livelihoods Mission
Four streams of livelihoods promotion:
 coping with vulnerabilities – debt bondage,
food insecurity, migration, health shocks
 existing livelihoods – stabilising and
expanding, making them sustainable
 self employment - micro-enterprise
development
 skilled wage employment - opportunities in
growing sectors of the economy
17
strengthening existing livelihoods
 Critical livelihoods are: agriculture, livestock, forestry
and non-timber forest produce
 Promote institutions around livelihoods
 Promote end-to-end solutions, covering the entire
value chain
 Key – knowledge dissemination. Development of
community professionals in a large number
strengthening existing livelihoods
 Community managed sustainable agriculture
holds immense promise
 A family can secure additional annual incomes
of Rs.50,000 with 0.5 – 1.0 acre of land ( 0.25 to
0.50 acre irrigated + 0.50 to 0.75 acre rainfed
lands )
 Natural farming, multi layer, poly crop models
for food security and sustainable livelihoods
 Convergence with MG NREGS to improve soil
and moisture conservation, and, soil fertility
Mahila Kisan Sashaktikaran Pariyojana (MKSP)
• MKSP to improve the present status of women in
Agriculture, and to enhance the opportunities for
her empowerment.
• MKSP is a sub component of the National Rural
Livelihood Mission (NRLM)
• The primary objective of the MKSP is to empower
women in agriculture by strengthening
community institutions of poor women farmers
and leverage their strength to promote
sustainable agriulture.
MKSP Non-Negotiables
• Strong Community institutions of Women farmers
• Community managed Sustainable Agriculture - Low cost
sustainable practices such as NPM/ IPM/ Integrated
Nutrient Management
• Promoting and enhancing food and nutritional security
at Household and Community level
• Drudgery reduction for women farmers
• Focus on landless, small and marginal farmers as project
participants
• Value addition and marketing
• Resilience to climate change
Promotion of Livelihoods in the primary sector
• Similar schemes will be formulated for :
Livestock,
dairying,
N.T.F.P,
Fisheries,
handloom sector
• Learnings from these pilots will feed into the
strategies for N.R.L.M
skill development and placement
 Up-scaling Skill development and placement
through public-private partnerships – 1.0
crore youth over a period of 5 years
 Special initiatives for J&K, IAP Districts (60),
Minority concentrated districts and North
East
Progress till 2010-11
 Skills and placement projects through private sector and N.G.Os initiated in 2006. 15% of SGSY/NRLM allocation set apart for
Special Projects.
 Under this component 148 placement projects sanctioned to cover
11.50 lakh beneficiaries (Total investment Rs. 1655 Cr. approx.)
2007-08
2008-09
2009-10
2010-11
1
15
66
61
24,000
1,65,000
4,34,000
4,20,000
Total cost (crore)
10.81
140.20
634.32
797.01
Funds released(Cr.)
16.21
49.96
158.10
253.89
22,000
18,000
18,000
14,500
80,000
55,000
1,40,000
1,10,000
Projects approved
Beneficiaries
Beneficiaries
Trained
Placed
24
Special Skills and Placement Mission in
J&K
 J&k Jobs Project was approved by Cabinet on May 19,
2011, as a 100% Central assisted scheme.
 This scheme will cover all youth: from rural and urban
areas, and, BPL and non-BPL category in J&K.
 1 lakh J&K youth will be trained for salaried and self-
employment in the next 5 years.
 MoRD will take first year (July 2011 to June 2012) as a
year of experimentation to try out new models
Self employment and micro enterprise
development
 Entrepreneurship development among local
youth to generate in situ employment
 5 – 6 million ‘micro-entrepreneurs’
 Successful RUDSETI model will be replicated
– MoU with RUDSETI
 Other innovations: Kerala KUDUMBASREE (
community EDP trainers)
convergence and partnerships
Convergence – institutions of poor provide a
platform for convergence and optimisation of all
anti-poverty programmes
Linkages with PRIs
Partnerships with N.G.Os and CSOs
Partnerships with resource C.B.Os and resource
state agencies ( S.E.R.P, KUDUMBASREE, BRLPS)
27
Partnerships for livelihoods
Partnerships with industries, industry
associations – for skills and placement, microenterprise development, and, marketing support
for agri-forest produce
Different thematic groups will be set up, like
agro-processing, garmenting, hospitality,
automobiles, construction, IT services, etc.
28
sensitive support mechanism
Dedicated sensitive support structures at all
levels to trigger social mobilisation.
 A national mission management unit
 State wide sensitive support structure, full
time dedicated head of the mission
 Positioning multi-disciplinary team of trained
and competent professionals at state, district
and sub-district level
 Quality human resources from open market
and from Govt.
29
Accountability
 Extensive use of I.T for transparency and real
time monitoring
 Databases of S.H.Gs and members
 Link with BPL data base
 Accountability Systems
• Regular meetings of S.H.Gs and
federations – financial transactions read
out in the meeting
• Social audit for transparency and
accountability
RESULTS MONITORING
 Computerised MIS : submission and sanction of
proposals and online monitoring – centre to
states to districts
 Periodic monitoring by teams of experts visiting
states
 Baseline and impact evaluation by independent
agencies
 Large scale independent study – panel data monitoring same households, once a year
over 10 years
NRLM implementation
Implementation:
Process intensive – hence phased
implementation
Intensive implementation starts with 10%
blocks in the country – they are developed
as resource blocks.
Social capital from the 1st phase blocks
enables organic scaling in the rest of the
blocks in a phased manner – all 6000
blocks in 7 years
32
NRLM - ACTION TAKEN BY MoRD
• Framework for Implementation prepared.
• States to prepare their action plans ( State
perspective plan and Annual action plan)
• Funds for preparatory activities released
• World Bank loan of $1.0 billion negotiated
• Workshops held: preparation of state action plans,
Strategy in intensive and non-intensive blocks,
procurement procedures, HR Policy and recruitment
procedures
• Secretary’s letters to all C.S s – 3 times
33
Transition from SGSY to NRLM
Basic requirement for states:
• State Govt. approval for setting up of a society or using
an existing society
• Setting up of a State Society
• Appointment of a full time CEO
• Recruitment of professionals at SPMU and Govt approval
for recruitment in the first phase districts
• Preparation of SPIP
SGSY will cease to exist after 31st December, 2011
Progress under NRLM - Setting up of Society
SRLM formed
SRLM formed
• Andhra
Pradesh
• Bihar
• Gujarat
• Kerala
• Orissa
• Tamil Nadu
• Madhya
Pradesh
• Rajasthan
•
•
•
•
Puduchery
Punjab
Haryana
Himachal
Pradesh
• Tripura
• Sikkim
SRLM to be
formed by
Sep. 2011
SRLM to be
formed after
Sep. 2011 (by
Dec. 2011)
• Assam
• Uttar Pradesh
• J&K
• Nagaland
• Karnataka
• Mizoram
• Maharashtra • Manipur
• West Bengal • Arunachal
• Chhatisgarh
Pradesh
• Jharkhand
• Andaman &
• Uttarakhand
Nicobar
• Meghalaya • Daman & Diu
• Dadra&NH
• Goa
35
• Lakshadweep
NRLM Progress – Deputing CEO
Full time CEO
•
•
•
•
•
•
•
•
Andhra Pradesh
Bihar
Gujarat
Kerala
Madhya Pradesh
Odisha
Rajasthan
Tamil Nadu
An in-charge Officer is
working
• Chattisgarh
• Puducherry
• Sikkim
• Punjab
• Tripura
36
N.R.L.M launched on June 3rd at
Banswara, Rajasthan
Issue: Suitable Name for NRLM
• Aajeevika
•
•
•
•
•
•
•
•
Mahila Shakti
Swavalamban
Grama Shakti,
Mahila Swashakti
Samridhi
Mahila Kranti
Sampoorn
Sanjeevani
Issue: Suggested Names for NRLM
•
•
•
•
•
•
•
•
•
•
•
•
•
Abhyodaya
Jana Jagriti
Swa Shakti
Ujwala
Roshni
Swarna Bharat
Aalok,
Bhagyashree
Abhilasha
Biswas
Navodaya
Jiwan Aadhar
Swachetna
Issue: setting up of committees
N.R.L.M Advisory committee headed by
Minister, RD
N.R.L.M Co-ordination committee headed
by Secretary, RD
N.R.L.M Empowered committee – for
approving state action plans
Issue: dedicated support structures
• Dedicated support structures a must to trigger
social mobilisation, institution building of the
poor, and livelihoods promotion
Poor should not be served poorly
• Best talent should work for the poor
• Working for the poor should be seen as an
attractive career option
• Govt servants should not think that they have
been punished, when they are posted to N.R.L.M
• Serious mismatch between outlay for programme
funds and funding support costs
Issue: dedicated support
structure
• Present provision of administrative cost is 5% of
program fund (excluding placement linked skill
development and RSETI component) – is a serious
constraint
• Professional support of multi-disclinary teams,
drawn from the open market and from the
Government is essential.
• Good and dynamic HR policy ( Compensation and
other terms) to attract and retain the best
• HR policy benchmarked with the best in the
market
Issue: dedicated support structure
• National level – EFC has not agreed to the
Ministry’s request for setting up a National level
society for managing N.R.L.M
• However need for a dedicated society at the
national level exists – this will reduce the learning
curve for the states
• This unit will shrink when states pick up
• Full time Mission Director – essential. At present
JS, S.G.S.Y is also the Mission Director
• Need for recruiting dedicated manpower, by
paying them market rates for development
Issue: dedicated support
structure
• State level – except for A.P, T.N and Bihar –
problems in each state as far as manning of the
missions is concerned
• This is a serious issue in most of the states
Issue: target group of N.R.L.M
•
•
•
Target group for N.R.L.M: Present N.R.L.M
formulation - only those categorised as
BPL.
In view of large exclusion errors in the
present BPL list, what should be the
target group under N.R.L.M
2011 BPL enumeration - many of the
previous errors are expected to be fixed.
Issue:Target group
•
Two formulations:
1. All those who are not falling under
automatic exclusion
2. BPL list, plus,
– All those groups eligible under Category IV
MGNREGS works: SC/STs, beneficiaries of
land reforms, beneficiaries of Indira Awas
Yojana, small farmers or marginal farmers
as defined in the Agriculture Debt Waiver
and Debt Relief Scheme, 2008
– Worked in MGNREGS – 30 days – for the
last 2 years
Issue: Financial inclusion – a
serious challenge
Poor performance of banks in lending to
the rural poor, including S.H.Gs.
Innovations required:
• NBFC – State Govt, banks and NABARD –
for exclusively lending to S.H.Gs and S.H.G
Federations
• Mature S.H.G federations to become CFIs –
community owned financial institutions (
Mahila banks)
Issue: Financial inclusion
• National bank for women S.H.Gs –
essential to focus on the issues of rural
poor women
Issue: Financial inclusion
• Interest subvention on the same lines as
‘crop loans’ – to be taken with Finance
Ministry ( DFS)
• Support states to set up their own NBFC s
to finance S.H.Gs and S.H.G federations
exclusively – to be taken up with Finance
Ministry (DFS)
Issue: subsidies and administration
of subsidies
At present N.R.L.M provides for the following subsidies:
1. Revolving fund
2. Capital subsidy
3. Interest subsidy
Restructuring the first 2 subsidies in view of the negative
experiences of S.G.S.Y.
Subsidies should strengthen the institutional architecture
and not weaken them
Issue: Role of subsidies and
administration of subsidies
Who will administer the subsidies: desirable to
delink subsidy administration from DRDAs
• To make DRDAs focus on building quality institutions of
the poor
• To create a level playing field for all S.H.Gs and S.H.G
federations to access grants – whether they are promoted
by N.G.Os, DRDAs or banks
• Alternative mechanisms: Banks, NABARD ?
Issue: Placement linked skill
development programme
• To achieve the target of 1 crore job opportunities
for rural poor by the end of 12th Five Year Plan
• Present allocation is pegged at 15% of N.R.L.M
outlay – this needs to be lifted
• This needs to be lifted and we should be funded
for creating 1.0 crore jobs for BPL youth
Strategy for IAP districts
 Special focus on states with large tribal
population and IAP districts
 States to be advised to cover these districts
under intensive N.R.L.M in the next 2 years
 Support to N.G.Os already working in these
districts
 Saturation approach – cover all families
 Formation of S.H.Gs and federations in all
villages
 Creation of Social capital – S.H.G and federation
leaders, community resource persons, village
para professionals
Institution building – IAP districts




Financial inclusion – a big challenge ??
Agriculture livelihoods – C.M.S.A strategy
N.T.F.P livelihoods – with forest dept.
Convergence – MG NREGS, N.R.L.M and
Forest dept funds
 Securing land rights of the tribals – para
legal approach
 Focus on youth – placement linked skill
development – special scheme to be taken
up on the lines of the J&K SEE programme