1. Presentation on Swarnjayanti Gram Swarozgar Yojana (SGSY)/
National Rural Livelihoods Mission (N.R.L.M)

2. Structure of Presentation
SGSY – status
Re-structuring S.G.S.Y into N.R.L.M
NRLM – Salient Features
NRLM roll out status
Issues

3. S.G.S.Y - Main Features
S.G.S.Y : covering all aspects of self- employment
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.

4. 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 to over Rs.4450 crore in
Per capita investment: Rs per beneficiary in 1999 to Rs in 2009
Skills and placement special projects: About lakh beneficiaries have been trained & 1.75lakh placed

5. 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
Total Swarozgaris Assisted (lakh)
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%)
Number of Minorities Swarozgaris (lakh)
2.41(12%)
2.44(12%)
Total Central Release (%age against central allocation) (crore)
Rs.2230 (96%)
Rs.2665(89%)
Total Investment (credit +subsidy) (crore
Rs.6409
Rs.6400
Total Subsidy Disbursed (crore)
Rs.1962
Rs.1814
Total Credit Disbursed (% against target) (crore)
Rs.4447(100%)
Rs (88%)
Per Capital Income (in Rupees)
31817
31375

6. 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

7. 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
Recommendations of Prof. Radhakrishna Committee

8. Key lessons from large scale Experiences
Even the poorest family can come out of abject poverty , in 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 lakh per family required 8

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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 acre irrigated 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

20. 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.

21. 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

22. 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

23. 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

24. Progress till
Skills and placement projects through private sector and N.G.Os - initiated in % of SGSY/NRLM allocation set apart for Special Projects.
Under this component 148 placement projects sanctioned to cover lakh beneficiaries (Total investment Rs Cr. approx.)
Projects approved 1 15 66 61
Beneficiaries
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
Trained
Placed
22,000
18,000
14,500
80,000
55,000
1,40,000
1,10,000 24

25. 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

26. 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)

27. 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

28. Partnerships for livelihoods
Partnerships with industries, industry associations – for skills and placement, micro- enterprise 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

29. 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

30. 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

31. 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

32. Process intensive – hence phased implementation
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 blocks in 7 years 32

33. 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

34. 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

35. Progress under NRLM - Setting up of Society
SRLM formed
SRLM to be formed by Sep. 2011
SRLM to be formed after Sep (by Dec. 2011)
Andhra Pradesh
Bihar
Gujarat
Kerala
Orissa
Tamil Nadu
Madhya Pradesh
Rajasthan
Puduchery
Punjab
Haryana
Himachal Pradesh
Tripura
Sikkim
Assam
J&K
Karnataka
Maharashtra
West Bengal
Chhatisgarh
Jharkhand
Uttarakhand
Meghalaya
Uttar Pradesh
Nagaland
Mizoram
Manipur
Arunachal Pradesh
Andaman & Nicobar
Daman & Diu
Dadra&NH
Goa
Lakshadweep

36. NRLM Progress – Deputing CEO
Full time CEO
An in-charge Officer is working
Andhra Pradesh
Bihar
Gujarat
Kerala
Madhya Pradesh
Odisha
Rajasthan
Tamil Nadu
Chattisgarh
Puducherry
Sikkim
Punjab
Tripura

37. N.R.L.M launched on June 3rd at Banswara, Rajasthan

38. Issue: Suitable Name for NRLM
Aajeevika
Mahila Shakti
Swavalamban
Grama Shakti,
Mahila Swashakti
Samridhi
Mahila Kranti
Sampoorn
Sanjeevani

39. Issue: Suggested Names for NRLM
Abhyodaya
Jana Jagriti
Swa Shakti
Ujwala
Roshni
Swarna Bharat
Aalok,
Bhagyashree 
Abhilasha
Biswas
Navodaya
Jiwan Aadhar
Swachetna

40. 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

41. 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

42. 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

43. 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 professionals

44. 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

45. 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.

46. Issue:Target group Two formulations:
All those who are not falling under automatic exclusion
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

47. 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)

48. Issue: Financial inclusion
National bank for women S.H.Gs – essential to focus on the issues of rural poor women

49. 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)

50. Issue: subsidies and administration of subsidies
At present N.R.L.M provides for the following subsidies:
Revolving fund
Capital subsidy
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

51. 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 ?

52. 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

53. 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

54. 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