National Rural Livelihoods Mission. Government of India, Ministry of Rural Development

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1 National Rural Livelihoods Mission Government of India, Ministry of Rural Development 1

2 Estimates of Poverty from 1973 to 2004 Percentage - Numbers in crore Years Rural Urban Combined Rural Urban Combined Source: Planning Commission

3 Swarnjayanti Gram Swarojgar Yojana (SGSY) SGSY started in 1999, a holistic programme covering all aspects of self-employment employment encompassing: Social mobilization of rural BPL & formation of their Self Help Groups (SHGs) Capacity building & training for income generating activities Subsidy for leveraging credit provision for infrastructure marketing support Preferred allocation for SC/STs 50%, Women 40%, Minorities 15% and disabled 3%

4 Performance of SGSY Deliverables 1999 to June 2009 No. of SHGs formed Economically Assisted SHGs Total Swarozgaris Assisted Number of SC/ST Swarozgaris Number of Women Swarozgaris Total Central Release 34 lakh 7.68 lakh 124 lakh 58 lakh (47% of total Swarozgaris) 71 lakh ( 57% of total swarozgaris) Rs crore Total Investment (credit +subsidy) Total Subsidy Disbursed Total Credit Disbursed Per Capita Investment Rs crore Rs crore Rs crore Rs.17,000 Rs. 30,000

5 Zonewise %age of BPL Persons and SHGs formed since inception Zone Central %age BPL %age SHGs Persons formed since inception East North East North South West

6 Major Constraints in Present Scheme Skewed distribution of Self Help Groups (SHGs) across states Of the SHGs formed only 23% accessed credit Insufficient quantum of credit Absence of hand-holding holding of SHGs SHGs not sustainable Uneven distribution of credit across states Inadequate Capacity building of SHG members to undertake income generating activities Weak Institutional Structure for capacity building & training Weak forward linkages design, branding, packaging, marketing Weak backward linkages technology, knowledge, inputs Dearth of professionals and dedicated staff in delivery system Lack of mobilization and federation 6

7 National Rural Livelihoods Mission Salient Features Promotion of diversified and gainful self- employment of rural BPL HHs for sustainable rural livelihoods. Tapping of emerging wage employment opportunities in the growing sectors of economy Ensuring broad-based based inclusive growth by reducing disparities across regions, sectors and communities. 7

8 Sensitive Support Organizational Structure: Multi- disciplinary team of trained and competent professionals for Social Mobilization, Risk Mitigation, Food Security, Micro Finance, Capacity Building, MIS, Institution Building, Marketing & livelihood Promotion Umbrella Organizations at National & State Level District Level Dedicated Agency 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) self-employment, employment, and (iii) skill based wage employment

9 Universal mobilization of BPL households Saturation approach to mobilize 25 lakh new BPL Self Help Groups Clear targeting principles means, vulnerability, Focus on SC/ST, PTGs,, minorities, single women, disabled, migrant labour, Focus on Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa, Rajasthan and Uttar Pradesh Federations/People s s Institution SHGs and their Federations at village, block and district level Social capital in the form of book keepers, animators, etc. Bring economies of scale in forging backward & forward linkages, financial inclusion Capacity building and training Involvement of PRIs Creating a pool of multi-functional service providers at GP level Optimal use of exiting existing institutes of including NIRD, SIRDs ETCs, JSSs, KVKs Partnership with Banks for Creation of new dedicated RSETIs

10 Build pro-poor poor financial sector Financial Inclusion Increase outreach of brick-mortar branch network Leverage IT and create agency arrangements with PACS, India Posts Introduce business facilitators and business correspondents models Sensitive support mechanisms using Bank Mitras Financial literacy and financial counseling Loans to SHGs at PLR Micro insurance to cover life, health and assets Skill Development and Placement Support Strive to confer skill development as entitlement of poor Leveraging master craftsmen, community resource persons and best practitioners for improving existing livelihoods Public-private partnerships for jobs Private agencies for placement services

11 Productivity Enhancement and Marketing Support Linkage with information, credit, technology and markets Community based rural extension and input supply services Aggregation of produce and local value addition Productive partnerships with public, private and NGO sectors Specialized marketing company Convergence with other programs Improved access to entitlements like NREGS, Pensions, Insurance, PDS, Food Security, Health and other local opportunities for livelihood. Productivity Enhancement Schemes of Agriculture & Allied Activities ies etc. SHG federations as one stop shop for last mile service delivery particularly for community nutrition centers, PDS shops, mid-day day meal scheme and other goods & services Accountability Systems: Institution of systems like social auditing for transparent and accountability and dedicated MIS.

12 Formation of SHGs at NREGS work site Mobilization of savings, thrift & revolving fund Development and creation of productive assets on Land belonging to BPL through NREGS Value addition with a provision of technical inputs and credit under NRLM Development and revival of natural resources, creation of community assets and their access to rural poor for livelihood opportunities. Last tier implementers manpower from SHGs To tap various livelihood opportunities generated in different processes of NREGS. To tap opportunities emerging from IAY, PMGSY, DWS, TSC etc

13 Overall Strategy Of NRLM strengthening and improving existing livelihoods, increasing access to wage employment and income security schemes (for e.g., NREGS, pensions, etc.), leveraging the institutional platforms of the poor providing placement linked skill development to tap employment opportunities in the burgeoning private sector and setting up of micro enterprises.

14 Thank You

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