Presentation on Swarnjayanti Gram Swarozgar Yojana (SGSY)/

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

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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

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

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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

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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 rural
• poor 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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NRLM
Livelihood Services
Institutional Platforms of Poor (Aggregating and
Federating Poor, Women, Small Marginal Farmers,
S.Cs and S.Ts)
Human and Social Capital (Leaders, CRPs,
Community Para- Professionals)
Dedicated Support Institutions (Professionals, L
earning Platform M E Systems)
Building Enabling Environment Partnerships and
Convergence
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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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 _at_ 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

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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

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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

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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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• Thank you