Presentation on Swarnjayanti Gram Swarozgar Yojana (SGSY)/ National Rural Livelihoods Mission (NRLM)

S.G.S.Y - STATUS S.G.S.Y - 1999: a holistic programme covering all aspects of self-employment Implemented in all the States/UTs except Delhi & Chandigarh Main Achievements since inception 38.9 lakh SHGs formed 1.47 crores Swarozgaris assisted financially with bank credit & subsidy

S.G.S.Y - STATUS Credit mobilization: from Rs.1100 crore in 1999-00 to over Rs.4450 crores in 2009-10 Per capita investment: from Rs.17000 in ’99 to Rs. 31800 in ’09 Skills and placement projects: About 1.72 lakh beneficiaries trained & 1.35 lakh placed

PROGRESS : S.G.S.Y – 2009-10 Item 2009-10 1 SHGs formed (in Lakh) 3.9 Swarozgaris assisted (Lakhs) Target 18.2 3 Ach (% ach) 20.8 (116%) 4 SC/ST s 10.8 (52%) 5 Women 15.2 (72%) 6 Minority 2.4 (11.6%)  7 Total Investment (Rs. Cr) 6409   8 Subsidy : Credit Ratio 2.3  9 Per Capita Investment 31817  

NEED FOR RESTRUCTURING Shortcomings experienced during implementation Feedback from key stakeholders Large scale initiatives of some states Recommendations of various studies Steering Committee constituted by the Planning Commission for the 11th Plan Recommendations of Prof. Radhakrishna Committee

KEY LESSONS FROM LARGE SCALE EXPERIENCES Building institutions of poor critical to address poverty holistically Even the poorest family can come out of abject poverty , in 6 - 8 years provided they are: organized, build and nurture own institutions provided continuous handholding support able to access thrift and credit in repeat doses, for meeting varied priority requirements minimum Rs.1.0 lakh per family required 6

KEY LESSONS FROM LARGE SCALE EXPERIENCES Institutions of poor – greatest source of strength for the poor Poor to drive all project initiatives – poor can best be reached through empowered poor Role of project staff and N.G.Os – redefining required – as facilitators of the process for enabling emergence of community resource persons 7

NATIONAL RURAL LIVELIHOODS MISSION: GOAL - POVERTY ELIMINATION Sustainable livelihoods for the rural poor through social mobilization and institution building 8

NATIONAL RURAL LIVELIHOODS MISSION Two major livelihoods streams: accessing and optimizing self employment opportunities, and, accessing skilled wage employment opportunities in growing sectors of the economy 9

GUIDING PRINCIPLES Poor have a strong desire to come out of poverty, and, have innate capabilities Social mobilization and building strong institutions of the poor critical for unleashing their capabilities Dedicated and sensitive support structure required to induce social mobilization 10

Financial & Capital Services Production & Productivity NRLM Livelihood Services Financial & Capital Services Market Linkages Production & Productivity Institutional Platforms of Poor (Aggregating and Federating Poor, Women, Small & Marginal Farmers, S.Cs and S.Ts) Dedicated Support Institutions (Professionals, Learning Platform M & E Systems) Human and Social Capital (Leaders, CRPs, Community Para- Professionals) Last Mile Delivery of Public Services Access to Entitlements INNOVATIONS Building Enabling Environment Partnerships and Convergence

SALIENT FEATURES: UNIVERSAL SOCIAL MOBILISATION Saturation approach One member from each household, preferably a woman, would be organized into a S.H.G All villages, blocks and districts – in a phased manner Focus on most vulnerable: SC/ST, PVTGs, minorities, women headed households Special focus on states with large tribal population and LWE districts

INSTITUTION BUILDING Formation, nurturing - SHGs and their Federations at village, block and district level Other collectives – livelihoods organisations Institutional platform to provide space, voice and resources for the poor Best done through community resource persons, federations of the poor

CAPACITY BUILDING Continuous capacity building – key to strong institution building and empowerment Multi-pronged approach Knowledge dissemination to all members Most effective training – at village level Creating a cadre of trainers, service providers, Community Resource Persons (CRPs) and Master Craftsmen Network of training institutions for capacity building at districts and State level

BUILDING PRO-POOR FINANCIAL SECTOR Access to credit key to coming out of poverty. Out of Rs.100,000 per family required – around 90% has to come from financial institutions Strategic partnerships with banking sector Leverage IT and business correspondents models Facilitation support: ‘Bank Mitras’ Financial literacy and financial counseling Interest subsidy on loans to SHGs Micro insurance to cover life, health and assets

KEY LIVELIHOODS PROMOTION 2 major livelihoods – account for 80 – 85 % of the incomes of the poor – agriculture and livestock Promote end-to-end solutions, covering the entire value chain Promote community managed sustainable agriculture – for food security and for secure livelihoods

SKILL DEVELOPMENT AND PLACEMENT Up-scaling of Skill development through public-private partnerships 15% of allocation for placement linked skill development projects 50% of the funds for projects transferred to States for inter district projects Clear focus on placement 60 lakh skilled jobs for rural poor in 7 years planned

SELF EMPLOYMENT AND MICRO ENTERPRISE DEVELOPMENT Entrepreneurship development among local youth to generate in situ employment 60 – 70 lakh micro-enteprises Successful RUDSETI model will be replicated

ESTABLISHMENT OF RSETIS AND THEIR EFFECTIVE FUNCTIONING Plan to set up 500 Rural Self Employment Training Institutes (RSETIs) Bank led institutes. MoRD grant Rs.1 crore for building, and, reimbursement of training cost for BPL candidates. State Government would provide land free of cost.

LINKAGE WITH PRIs Establish healthy relationship between institutions of the poor and the PRIs – based on mutual respect and understanding Institutions of the poor have a regular dialogue with PRIs, provide all information to them, and, actively participate in the Gram sabhas PRIs understand the role that S.H.Gs and federations play in the life of the poor, and, include pro-poor initiatives in their plans

PARTNERSHIPS: N.G.O N.G.Os – pioneers in the country in grassroots social mobilisation, building institutions of poor Partnership based on: mutual respect, core principles of NRLM, accountability to institutions of the poor, outcomes based Learn from best practices of N.G.Os Strengthen social capital created and nurtured by them Resource villages and resource blocks – for mentoring other blocks and districts Pilots for innovations

PARTNERSHIPS Industry/ Industry associations: Livelihoods promotion – forward and backward linkages Skills and placement Academic institutions Capacity building of development professionals, village level community professionals Evaluations and mid-course corrections

FINANCIAL NORMS Formation of S.H.G – Rs.10,000 per S.H.G Revolving fund: Rs. 10,000 to Rs. 15,000 per SHG equivalent to corpus of SHG Capital Subsidy: Max Rs. 2.50 lakh per SHG calculated @ Rs 15,000 for general and Rs 20,000 for SC/ST per Swarozgari RF and Capital subsidy - directly to SHGs or through their federations

FINANCIAL NORMS Capacity building, skills training: Maximum of Rs 7500 per Swarozgari Interest subsidy: Difference between PLR and Rs 7% per annum interest rate Corpus fund for federations Rs 10,000 at Village/Panchayat level Rs 20,000 at Block level Rs 100,000 at District level

ACCOUNTABILITY Extensive use of I.T for transparency and real time monitoring 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 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

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