Mobilization of all the rural BPL households into functionally effective, self-managed and self governed institutions of the poor viz., SHGs; particular focus will be on the most vulnerable like SC/ST, especially Vulnerable Tribal Groups (PTGs), single women headed households, , landless, migrant labour, etc., following a bottom-up approach. Formation of affinity groups in the pockets with concentration of high poverty and vulnerable populations will receive priority attention to remove regional disparities in social mobilization of poor. The field level staff placed at the sub district level will undertake intensive IEC to reach the target population. The services of Community Resource Persons (CRPs) from successful groups/ Best Practitioners will be used to accomplish the mobilization target. Wherever necessary the services of NGOs will be used for supporting mobilization. For maintaining the records and accounts of the SHGs in the first year, a one-time assistance of Rs.1,000/- will be provided to each newly formed individual SHG.
Federations/People's Institutions:
Promotion of people owned, people managed & people centered institutions by federating the SHGs at various levels will provide space, voice and resources for the poor and create aggregate institutions to derive economies of scale. Efforts will be made to form federations of rural poor SHGs at he cluster of villages/Gram Panchayat and block levels. The federations will undertake mobilization of the leftover poor households into SHG network, arrange training and support services to SHG, facilitate access to information, credit and markets, community enterprises for co-production and delivery of social and economic services (for e.g., PDS shops, food security, livelihood support services, milk collection centers, collective marketing, etc.). For sustainability of federations one time grant assistance of Rs. 10,000 to village/Panchayat level, Rs 20,000 to block level, Rs 100,000 to district level federations will be provided..
Universal Financial Inclusion:
Universal financial inclusion is a very significant element of activities under NRLM. It will ensure opening of accounts of all SHGs/individuals, managing thrift and credit activities, access to revolving fund, credit linkages with banks and financial institutions, access to insurance services for risk mitigation, etc. NRLM will coordinate with RBI, NABARD, Public Sector Banks and other financial institutions to increase the coverage of rural poor by expansion of branch network to un-banked areas and also facilitate partnership arrangements with major commercial banks. The Mission will also work with Insurance Companies to develop alternate insurance products and client friendly business processes to deliver insurance services to rural poor.
Training and Capacity building for Self Employment:
Lack of capacity (productive as well as skill) has proved to be a great barrier for the rural poor in managing an enterprise successfully. In the last 10 years of implementation, less than 1/4th of SHGs were able to access bank credit for income generating activities including micro-enterprises. This indicates that for credit absorption and credit worthiness of the SHGs, there is need for augmenting the training and long term handholding of rural poor including skill up-gradation and entrepreneurial guidance.
In addition to the apparent shortcomings in the existing structure for training and capacity building for SHGs/benificiaries, there is absence of whole range of service providers in rural areas such as that of technical and management cadre, supply-chain actors (e.g. suppliers of inputs like seeds, fertilizers etc.) last tier implementation personnel (e.g. Rojgar / Aajivika Mitra) which adversely affects rural productive system. Thus, a multi pronged approach is required for training and capacity building of SHGs in order to enable them to run successful microenterprises and come out of poverty.
The proposed approach under NRLM will be:
. NIRD, Hyderabad and its chain of State Institutes of Rural Development (SIRDs) and Extension Training Centers (ETCs) and other sister institutions to act as the hub of training in the programme.
Optimal use of the existing infrastructure facilities at the district as well as the block levels such as Industrial Training Institutes (ITIs), Polytechnics, Krishi Vigyan Kendras, Khadi and Village Industries Boards, State Institutes of Rural development, other facilities available with the government departments and with NGO & Private Sectors.
Creation of grassroots community trainers and pools of professionals.
Encouraging on-the-job training of rural poor through apprenticeship with trainers/ master crafts persons/private partners.
Refresher trainings for beneficiaries and all stakeholders will be a regular feature under NRLM.
At present Rs. 5000 per beneficiary is provided for basic training and skill development of beneficiaries to strengthen their creditworthiness for availing credit and take up micro enterprises. It is proposed to increase it to Rs 7500 per beneficiary.
Package of Economic Assistance for setting up of Micro Enterprises:
Revolving Fund - SGSY has provision for providing revolving fund to the SHGs which is equal to the group corpus or a minimum of Rs. 5000 and maximum of Rs. 10,000 per SHG. This is proposed to be enhanced to an amount equal to the group corpus or a minimum of Rs. 10,000 and maximum of Rs. 15,000 per SHG to be given directly to the SHGs or through their federations.
Capital Subsidy - At present, the subsidy available to individual beneficiaries is up to a maximum of Rs. 7,500 for general category and Rs. 10,000 for SC/STs and differently abled and the maximum limit in case of SHGs is Rs 1.25 lakh. It is proposed to double the amount of subsidy for all the categories of beneficiaries i.e. to Rs 15,000 for general category, Rs 20,000 for SC/ST and differently abled beneficiaries and to Rs 2.5 lakh (maximum limit) in the case of SHGs to be given directly to the SHGs or through their federations.
Introduction of Interest Subsidy -
The rural poor need credit at low rate of interest and in multiple doses to make their venture economically viable and to overcome poverty. To ensure this, it is proposed to introduce interest subsidy, being the difference between PLR and 7% per annum, on all credit from banks/financial institutions for a maximum of Rs 1.0 lakh loan per capita.
Infrastructure creation and Marketing support:
Under SGSY, provision is available for utilizing 20% (25% in case of north eastern states and Sikkim) of the allocation to meet critical gaps in common infrastructure, including marketing infrastructure. This is proposed to be continued under NRLM.
Convergence and larger role for the SHGs and their federations:
Institutional platform created by NRLM will allow people's institutions to provide bundled services through convergence with programs of different ministries creating synergy; convergence opportunities with MGNREGS through formation of SHGs of MGNREGA workers at the worksites, involving them in preparation of job cards, selection of work, access to assets, assistance in payment of wages, creating awareness about entitlements and rights under MGNREGA, social auditing etc and other social safety net programs like pensions, etc. will enable NRLM to explore livelihood opportunities beyond self-employment. Similar initiatives for small holding agriculturists, mahila Kisan etc. and vulnerability reduction programs like food security, maternal and child health, etc can be shepherded to peoples' institutions.
The Mission will also take initiative to ensure universal coverage of rural poor against loss of life, health and assets through convergence with programmes like Aam Admi Bima Yojana, Rashtriya Swasthya Bima Yojana, Jan Swasthya Bima Yojana etc. Efforts will be made to develop other innovative insurance products also. Necessary funds required for insurance will be met by Government of India & State Governments.
Skill Development and Placement Support through Placement linked Skill Development &Innovative Marketing Linkages/livelihood projects:
Investment in skill development and trainings is very crucial for capturing emerging market opportunities in high growth markets. At present, placement linked skill development programme is being implemented on a small scale. In order to enable the rural youth to secure wage employment opportunities in the rapidly expanding private sector in various sectors like textiles, construction, retail, leather, health care & hospitality, food parks, housekeeping, security services, repairs & maintenance, automobile & allied services etc. the Mission will focus on training and placing rural youth in new economy jobs. The purpose of these interventions is to bridge the skill gap and entry level barriers for the youth from the rural BPL households and facilitate their entry into relatively high wage employment. Towards this end, the NRLM will take steps to make skill development as an entitlement of the rural poor. The National Mission will handle only multi-state placement linked skill development projects and the State Mission the state specific projects. Further, experienced firms with a good track record will be engaged for the skill development and placement support intervention. A prime contractor model will be adopted for this purpose along with continuation of existing programme such that even the smallest organization will be able to participate and bring in new innovations. The multi-state projects will be considered by the National Mission to be executed under the prime contracting model.
It is proposed to make special projects as a subset of NRLM by earmarking 20% of its allocation for special projects out of which 15% will be for placement linked skill development projects and 5% for innovative projects. 7.5% of the allocation will be retained at the centre for multi-state skill development projects and 7.5% will be given to states to implement state specific special project. Priority will be given in approval of projects to those states that have lagged behind in the last ten years under the SGSY programme.
