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NRLM - Ministry of Rural Development


									National Rural Livelihoods Mission
            Restructuring of SGSY
SGSY restructured as NRLM for the following
Shortcomings experienced during implementation
 of SGSY
Large scale initiatives of some states – A.P, Kerala,
 Bihar, TN and experiences of N.G.Os
Steering Committee constituted by the Planning
 Commission for the 11th Plan – 2007
Recommendations of Prof. Radhakrishna
        Key lessons from 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

   Poverty elimination through social mobilization,
   institution building, financial inclusion and a
   portfolio of sustainable livelihoods.

   Each poor family should have annual income of
   at least Rs.50,000 per annum

   To reach out to 7.0 crore rural poor households
   and stay engaged with them till they come out
   of abject poverty

Organising the poor, Inclusion of the poorest,
Institutions of poor and their social capital
 drive all project initiatives
Scaling up by community best practitioners
Dedicated, professional, sensitive and
 accountable support structure to initiate the
Process intensive – hence phased approach
             N.R.L.M - financial inclusion

Financial inclusion at affordable cost holds the key

•   Access to credit key to coming out of poverty.

•   A minimum of Rs.1 lakh per family required, in
    several doses over a period of 5 – 6 years. Of
    this 90% has to come from financial
•   This is the biggest constraint – as bank linkages
    not happening in most of the states
     Strengthening Existing Livelihoods

   Critical livelihoods are: agriculture, livestock, forestry and
    non-timber forest produce

   Promote institutions around livelihoods

   M.K.S.P – special projects

   Promote end-to-end solutions, covering the entire value

   Key – knowledge dissemination. Development of
    community professionals in a large number
         Skill Development and Placement
• Short-term placement linked, market driven training for 6 to
  12 weeks to rural poor youth between the age of 18-35

• Implemented through private companies or NGOs. They are
  responsible for: skilling, placement, and post-placement
  tracking ( 1 – year)

• Up-scaling Skill development and placement through public-
  private partnerships – 1.0 crore youth over a period of 7 years
• Special initiatives for J&K, IAP Districts (78), Minority
  concentrated districts and North East

• Challenges – state missions need to gear up, and, at
  Ministry level – reforms in appraisal, monitoring
   Rural Self Employment Training Institutes
• 526 RSETIs have started functioning
• Each RSETI will train 750 youth / year and
  enable them to start their enterprises
• RSETIs graded, based on multiple criteria (
  state wise lists distributed to State RD
• MoU with N.A.R for capacity building

• Challenges: quality of RSETIs, linkages with
  D.R.D.A s, credit linkages for trainees
 Transition from SGSY to NRLM
Basic requirement for states:
• Setting up of a State Society or using an existing

• Appointment of a full time CEO

• Recruitment of professionals at SPMU and approval
  for recruitment in the first phase districts/blocks

• Preparation of AAP/SPIP
               Progress -NRLM
Approval for rolling out of NRLM – 26 states/UT
  All States, except J&K, Arunachal Pradesh, Goa,
  Daman and Diu, Andman and Nickobar Island,
  Laksdweep and Dadra & Nagar Haveli
• Appointment of fulltime Mission Director- 16
  (Andhra Pradesh, Assam, Tamil Nadu, Kerala,
  Karnataka, Bihar, Jharkhand, MP, Gujarat,
  Maharashtra, Chhattisgarh, Odisha, Rajasthan,
  Tripura, Mizoram, Puducherry)
                 Progress- NRLM
• Recruitment of SMMU core team -13 States
  (AP, Bihar, TN, Odisha, Kerala, Assam, Jharkhand, MP ,
  Maharashtra, Chhattisgarh, Rajasthan, Gujarat, Tripura)
• Preparation and submission of AAP -23 states
  (J&K, Punjab, Haryana, Rajasthan, Bihar, Odisha, MP,
  Jharkhand, Chhattisgarh, Gujarat, Maharashtra, Kerala, TN,
  AP, Assam, Sikkim, Arunachal Pradesh, Mizoram, Tripura,
  Meghalaya, Nagaland, HP, Pudducherry)
• Approval of AAP-10 States
  (AP, Bihar, TN, Odisha, Kerala, Assam, Jharkhand, ,
  Maharashtra, Chhattisgarh, MP)
        Implementation of NRLM
For implementation of NRLM two approaches will
   be followed
(i)Intensive approach in selected blocks/districts
(ii)Non- Intensive approach in remaining
• The implementation will be in phases
• After 8 years all the blocks will be under
   intensive approach
          Phasing strategy under NRLM
             Year         Districts                         Blocks

Phase I      1-2    150                               600

Phase II     3-4    150                               1500

Phase III    5-6    300 + ( all balance districts)    2100

Phase IV     7-8    ( all districts would have been   1800 + ( all balance
                    covered by phase III)             blocks)
                Intensive approach
What is intensive block?
• NRLM implementation in an intensified manner
• Dedicated 5 – 6 project staff
• Support system at District & State level with a team of domain
• Entitlement of Rs.300 lakh Community Investment Support per
• Saturation approach
   – 100% coverage of poor into S.H.G s
   – External C.R.P s for inducing the process
   – Creation of large pool of social capital
   – Food security, social security
   – Inclusion of most vulnerable
    Expected Outcomes of Intensive Block
•   All poor and poorest are covered under SHGs
•   All SHGs switch over to ‘panchasutras’
•   All SHGs are federated at Village level
•   Availability of Trained social capital
•   Cadre of para professionals functioning as part of internal
    sensitive support system
•   Self managed institutions of Poor at village, cluster/block
•   Poor HHs access multiple doses of investments
•   Creation of sustainable livelihoods
•   Enhancement of HH level incomes
•   Internal C.R.P s
    Non- Intensive blocks - approach
•   Lean project staff at Block and district level
•   Focus on few activities in the block
•   Improving the quality of S.H.G s
•   Effective utilization of Revolving fund,
•   Promoting Bank linkages
 Capacity building in non-intensive blocks

SRLM hires a resource N.G.O, or, SIRD
In turn N.G.O/ SIRD hires 15 – 20 State resource
persons, and guides D.R.D.A s
Each DRDA hires a resource N.G.O or 5 DRPs,
SRLM trains the DRPs
In each district 1 block is adopted initially for
intensive capacity building
    Flow of Activities in the Non-Intensive blocks

• Block divided into 4 clusters, and a 4 – 5 member team
  of E.Os or N.G.O resource persons
• Block team trained by the SRPs in social mobilization,
  institution building and C.R.P strategy
• This team and the resource N.G.O identify internal
  Community Resource Persons (C.R.Ps) and Capacity
  building resource professionals (CBRPs), within the
  block or within the district
• C.R.P teams and the CBRPs are given intensive training
  by DRPs- 4 weeks training for CBRPs and about 2 weeks
  training for CRPs
    Flow of Activities in the Non-Intensive blocks

• Work starts in the block - C.R.P team spends 15 days in
  a village. The CBRP also stays in the village and follow
  up the work of CRP
• The C.R.P strategy is implemented for 2 years without
  interruption – by which team all the villages would
  have been covered.
• PRI reps, Bank managers, youth also get
  trained/exposed to best practices
• Bank mitra strategy introduced for effective bank
• In each village, S.H.G book keepers are identified and
  trained by the CBRPs
   Flow of Activities in the Non-Intensive blocks

• A forum of S.H.G s is formed and sub-committee
  system (bank linkage) is also introduced for
  working on SHG Bank linkages
• Community Based Recovery Mechanism
  (C.B.R.M) is operationalized
• Focus will be on building good quality S.H.G s and
  fostering S.H.G – bank linkages
• The district team will run several campaigns in
  this block for sensitizing the S.H.Gs to various
  social issues and building their capacities around
    Non-intensive blocks - Activities during
              Expansion Phase
• After 6 months of commencement of work in
  the 1st block, another 3 blocks are selected
  and the same process is repeated
• After 6 months, the balance blocks in the
  district are covered
• This will ensure that all S.H.G s in the district
  are trained and they are able to access bank
  loans without much trouble
    Non-intensive blocks - Financial
• Build relationship with Banks
• Give banks annual S.H.G – bank linkage targets
• Provide assurance to them on repayment
• Continuous training and orientation of
• Take ex-bankers as ‘Relationship managers’
    Livelihoods and other initiatives
• Each district to identify its best livelihoods
  initiatives on ground working for more than 3
  years – N.G.Os and C.B.Os
• Prepare a project for consolidation, deepening
  and horizontal expansion ( a 3 – 5 year plan)
• Sustainability plan to be an integral part of the
• Empanel livelihoods resource organizations to
  help districts. Plans appraised at state level, with
  the help of experts and sanctioned
   Micro enterprise development

• RSETIs – unique opportunity to train and
  nurture micro enterprises
• Take the support of EDI and other
  organizations working on micro enterprises
           Skills and placement
• Effective monitoring of ongoing skills and
  placement projects
• Identify one A.P.O exclusively for skills and

• Youth counselling – one block as resource

• Post placement monitoring
              Success Stories
CMSA- Andhra Pradesh

Convergence under NRLM/SGSY- Wayanad,

Bank mitra – Bihar and A.P

SHG Net working – West Bengal
     Community Managed Sustainable
        Agriculture (CMSA)-SERP
• CMSA is meant to support poor farmers to
  adopt sustainable agriculture practices
• It reduces costs of cultivation and increase net
  incomes to improve and sustain agriculture
  based livelihoods
• 28 lakh Acres during Khariff 2011-12 were
  under CMSA benefitting 11.79 lakh farmers in
  8556 villages in 553 mandals of 22 districts
 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
  Historical Backdrop of the Initiation Wayanad
• The District faced agrarian crisis due to severe drought
  experienced 2001-2004
  – Fall in the price of Plantation crops – Coffee, Cardamom,
  – Fall in agricultural Productivity
  • 83% of People Depends Agriculture for livelihood.
  • Alternative income generation schemes envisaged
    under SGSY and enquire the possibilities of convergence
    with other development schemes

• Ponds constructed under MGNREGA spending an
  amount of Rs.3 Lakhs
• Employment was given to 45 ST wage seekers while
  digging the pond
• Pisciculture Unit at Panamaram Grama Panchayath in
  Mananthavady Block Panchayath
• A Self Help Group-Athira SHG-was formed consisting
  10 members
• In one Pond fingerlings are reared and in another
  pond fishes are reared.
• The main source of income is selling fingerlings-
• Co-operative Bank Panamaram sanctioned
  Rs.1 Lakh as loan and Rs.1 lakh as subsidy
  under SGSY.
• In one pond fingerlings are reared and in
  another pond fishes are reared.
• The unit is making Rs.35000/- every month
  They are regularly repaying bank loan.
    Convergence with the Nutrition Programme of
            Social Welfare Department
• A Nutrimix Making Unit was formed at Vellamunda
  Panchayath to produce packed nutrition food
• An Agreement with Director, Social Welfare Department
  to purchase all the finished products to supply Anganvadi
• Bank , sanctioned a loan amount of Rs.6,90,000/- and
  Rs.11000/- has been sanctioned as subsidy
• 11 Members are working in the unit and 3 of them
  belongs to Minority Communities
• On an average they earn Rs.64,000/- as income per
They have an assured market since Social Welfare department
             will purchase all the final products
• In Service Sector, Auto Rickshaws given to 8
  women drivers in Edavaka Gram Panchayath.
• Out of the 8, 5 members belongs to Minority
• Given training in Driving with the help of AMRIT-
  (Ambedkar Memorial Rural Institute for Training)
  a Tribal Co-operative Society
• Rs. 11,29,600/- as loan and Rs.80,000/- as
  subsidy given
• Each member earn Rs.500/-per day as income.
             Bank Mitra Scheme
• Bank Mitras are community members, positioned as
  customer relationship managers in rural bank branches
• Bank Mitras are provided space and computers in the
  bank branches and trained managing documentation for
  opening accounts loan applications etc.
• Bank Mitras support rural SHG women in banking
  transactions and they are also an asset for the under
  staffed rural branches.
• It improves quality of banking services for the rural
• The scheme is successfully implemented in AP & Bihar
      Networking of SHGs- West Bengal
• Objective- Strengthening of SHG movement,
  providing benefits of various programme,
  empowerment of rural poor
• Four tiers of SHG based institutions
  –   Starts from SHG
  –   Up – Sangha at Gram Sansad ( VO)
  –   Sangha at GP level
  –   Mahasangha at Block level
• 10 block level federations running MFI/CFI for
  providing credit to SHGs

• 4 BLF & 4 GP level federations manufacturing
  sanitary napkins to be supplied under NRHM

• BLF & GPLF cooking midday meal in schools
  supply to ICDS, supply of cooked diet to rural

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