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 – 2009-10Item 2009-10

1 SHGs formed (in Lakh) 3.92 Swarozgaris

assisted (Lakhs)

Target 18.23 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

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NATIONAL RURAL LIVELIHOODS MISSION: GOAL - POVERTY ELIMINATION

Sustainable livelihoods for the ruralpoor through social mobilization and institution building

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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

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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

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Human and Social Capital(Leaders, CRPs,

Community Para-Professionals)

Dedicated Support Institutions

(Professionals,Learning PlatformM & E Systems)

Institutional Platforms of

Poor

(Aggregating and Federating Poor, Women, Small &

Marginal Farmers, S.Cs and S.Ts)

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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