Umbrella Programme for Natural Resource Management(UPNRM)

Background NABARD has been implementing

NRM projects (watershed, Tribal Development) for the last two decades.

To further upscale and integrate existing and future NRM efforts into participatory interventions Umbrella Programme on NRM (UPNRM) was launched by NABARD in collaboration with GIZ

Under Phase I :From KfW

€ 15 million loan on IDA terms, € 1.4 million grant

€ 3 million for accompanying measuresFrom GIZ

Technical Cooperation (TC) of € 8.5 million assistance by GDC to NABARD from GIZ.

Under Phase IIFrom KfW

€ 10 million loan on IDA terms, € 42 million loan on RIL

€ 2 million for accompanying measures

What UPNRM offers

Flexible Financial product with Loan cum grant

– Term Loan

– Working capital

– Revolving fund

– Grant for capacity building, product design, market

development, branding, management cost etc. Need Based

( Max. 20% of the loan component)

Supports innovations ( technology/ methodology/

approaches) for livelihood enhancement through NRM

Working on the issues related to climate change and

livelihoods

In next phase special programme of 5 million Euro for

preservation of bio diversity in different ecological zones

• Develop and market flexible loan cum grant products for NGOs, Corporate, Producer Companies, State Governments, Banks, MFIs, Cooperatives

• Promoting private sector’s participation through PPPs in the implementation of public investment programmes for rural areas

• Establishing a vibrant IKM system to upscale successful models

• Awareness creation and capacity building of stake holders• Achieving synergy within communities and other

stakeholders for sustainable NRM• Dissemination of learning to decision makers for guiding

national Policies and Public investments.

Major areas of intervention under UPNRM

GIZ-NABARD Project Management Units (PMU)

The collaboration between NABARD & GIZ for implementing UPNRM in

Lucknow, Pune, Bangalore

TASKS INCLUDE:

• Handholding of CPs• Scouting of new projects• Appraisal of proposals/

projects• Capacity building• Convergence with other projects/ programmes

All projects must meet the criteria of the five guiding principles to quality for support

• Pro-poor: improves employment, reduces poverty, improves access to credit, information, entitlements

• Ensuring sustainability: conserves / augments NRM base of the region, prevents degradation

• Good Governance: Equity in ownership and access and use of resources, decentralized decision making, accountability and transparency

• Community participation: ownership / management/ empowerment

• Integrated approach: need-based and flexible, convergence with other schemes / programmes

• Efficient and Effective (PPP) : Increasing Outreach and efficiency. Reduction in cost of delivery, improvement in quality of service delivery.

Guiding Principles

• Credit (TL+WC); investment, marketing, production, etc.

• Cost of fund• Margin (owner’s stake)• Moratorium & Repayment period• Security – collateral – type and extent

Loan Product

UPNRM Grant Component

• Need based grant• Common, non –revenue

generating infrastructure• Training and skill building, • Community mobilization, • System development

State Governments & Government owned, aided, related department, corporations, organization, agency, institute, promotion councils, authorities, boards etc

• Banks • Corporate s• Producer Company • Producer cooperative/ federation, • Not for profit companies registered under

section 25 of Indian Companies Act • Civil Society Organization’s enterprise • Societies registered under Soc. Registration Act • Trusts registered under Indian Trusts Act 1880

UPNRM Clients/ Channel Partners

Sectors Covered Under UPNRM (1/2)

• Soil and water conservation (watershed, dry land farming systems)

• Plantation and horticulture (tree based farming, Bamboo based farming, organic farming, energy plantations)

• Forestry activities (rehabilitation and management, community forest management, biodiversity conservation)

• Farming systems management (including livestock and aquaculture resources)

• Climate change adaptation / Clean Development Mechanism (CDM)

Core Areas

Sectors Covered Under UPNRM (2/2)

• Forward and backward linkages and livelihood generating activities; processing, storage, marketing, supply chain

• Critical rural infrastructure (including rural roads, minor irrigation, drinking water)

• Renewable energy (micro/mini-hydel, biomass based power generation, biofuels, wind-power, solar power)

• Livelihood generating activities (dairy, poultry, fisheries, etc)• Information and Knowledge Management

Supplementary / Support areas

Key Players in PPP in the NRM Sector

Public Sector• Central Government• State Government• Panchayati Raj Institutions (PRIs)• Development Financial Institutions• Technical Universities• Promotion Councils- APEDA and State Marketing Board• Institutions/Agencies under Central/State departments-

National Rainfed Authority, CAPART

Private Sector• Corporate/ Business houses• Civil bodies/organizations• NGOs, MFIs, research organizations, implementing agencies• CBOs- SHGs, producers companies, co-operatives

Others• Commercial Banks• Multilateral/Bilateral development agencies (often considered

as Public organizations)

• No. of projects sanctioned – 173• Total Amount sanctioned – Rs. 3959.87 million

– Loan – Rs. 3721.92 million– Grant – AM – Rs. 220.81 million– FC Grant – Rs. 17.19 million

• Total amount disbursed – Rs. 2286.84 million– Loan – Rs. 2173.62– Grant – AM – Rs. 109.678 million– FC Grant – Rs. 3.55 million

• Repayment Recd as on Date INR 1037 million• Outstanding INR 1288 million

COOPERATIVE, 10%, 11%

CORPO-

RATE,

18%, 9%

CORPN OF

STATE

GOVT,

6%, 1%

MFI, 4%, 2%

NGO, 44%, 51%

PO, 17%, 24%

BANK, 1%, 1%

Channel Partner –wise no of projects/Assistance sanctioned

Sl.No. State No. of projects UPNRM assistance committed (incl. AM + FC grant) ` in million

1 Arunachal Pradesh 1 81.992 A&N Islands 7 940.703 AP 39 6764.904 Assam 1 59.715 Bihar 9 993.526 Chhattisgarh 1 34.407 Gujarat 2 913.018 Himachal Pradesh 2 50.219 Jharkhand 6 3017.42

10 Karnataka 16 8027.2211 Kerala 3 2223.5712 Madhya Pradesh 2 684.6913 Maharashtra 26 4972.4214 Orissa 8 1036.7015 Rajasthan 3 383.6516 Tamil Nadu 21 847.7917 Uttarakhand 5 435.9118 Uttar Pradesh 1 46.0019 West Bengal 6 633.0220 Multi state 14 7451.92

Total 173 3956.87

State-wise no. of projects/assistance

1 AGRICULTURE 37 6704.512 SRI 2 4564.733 ORGANIC FARMING 8 950.184 SEED PRODUCTION 1 37.225 AGRO FORESTRY 6 1170.026 AGRO PROCESSING 15 3896.007 AH 41 7069.838 DRINKING WATER 6 5243.009 EFFICIENT IRRIGATION 14 2698.13

10 FISHERIES 4 321.5211 FOREST ECOTOURISM 2 328.7512 MAP 6 267.5313 MARKETING 14 2123.3514 NTFP 12 3705.6515 RENEWABLE ENERGY 3 250.8216 WASTE MANAGEMENT 2 267.50

Total 173 39598.74

Sector-wise number of projects and assistance sanctioned (Rs. In million)

Key Learning Points / Major Outcomes

7/29/2011

1. Convergence with Govt programmes increased the outreach and scalability

2. Few projects could not achieve desired cash flow due to insufficient market research (market access, commercialisation) and marketability of the end product – Gubbi coir – Coir Panel are not marketed sufficiently in spite of it better quality parameters.

3. Few natural resource based projects were limited by the geographical reach and continuous availability of inputs. Increasing volumes (eg. Medicinal Herbs) beyond a point is becoming uneconomical/unviable/unsustainable. Cultivation is not favoured due to various factors.

4. Poor insurance cover of the beneficiaries though assets created were insured.

5. Over a period, the income generation dominates the natural resource conservation and tend to become a routine loan lending/on-lending programme.

Key Learning Points / Major Outcomes

7/29/2011

1. Necessity for a digital platform to exchange ideas & for cross learning purpose.

2. Traditional activities such as Rearing Milch animals, sheep rearing are found to be preferred choice of CPs due to continuous cash flow and CP’s confidence in loan recovery.

3. Emergence of successful farm enterprises/entrepreneurs (Small scale cashew processors in Cuddalore Districts)

4. Many projects could reach the individuals who were never near formal banking system (except local money lenders)

5. Diversification of Food security options and emergence of individual level commercial organic farming

7/29/2011

THANK YOU FOR YOUR ATTENTIVE HEARING