National Conference of P.D, D.R.D.As Date: 08 th July, 2013

1. Welcome National Conference of P.D, D.R.D.As Date: 08th July, 2013

2. N.R.L.M - Structure of presentation • Recent amendments ( May 1st 2013 ) • Social mobilization and institution building – professsional staffing, strategies in intensive and non-intensive blocks • Credit strategy • R.S.E.T.I s • Livelihoods – M.K.S.P • M.I.S

3. AMENDMENTS in NRLM Phased expansion of NRLM to cover all districts in 5 years, all 6000 blocks in 7 years and all villages in 10 years –starting with 2012/13 Each block will be supported for a maximum period of 10 Years, by which institutions of poor become self reliant.

4. AMENDMENTS in NRLM Improved targeting under NRLM: All poor, specially the poorest of poor households, identified through a participatory identification process (PIP). The P.I.P process will also have a set of exclusion criteria, automatic inclusion criteria and a set of deprivation indicators for enabling poverty ranking The P.I.P process will be vetted by the Gram Sabha and approved by the Gram Panchayat. However, the financial allocations to the States under NRLM will continue to be based on the existing allocation criteria of inter-se poverty ratio among States.

5. AMENDMENTS in NRLM Capital Subsidy is abolished. Community Investment Fund (CIF) in Intensive blocks Revolving Fund would continue to be available in both intensive and non-intensive districts/blocks Community Investment Support Fund (CIF) will be provided to SHG Federations and livelihoods organizations of the SHG member in the intensive blocks CIF will be used by the SHGs federations to advance loans to SHGs as per their priorities and micro investment plans and collective socio-economic activities. CIF Works as resource in perpetuity and given as grant to community institutions but as loan to individual SHG members.

6. AMENDMENTS in NRLM Provision of interest subvention and additional interest subvention for prompt repayment to all women S.H.Gs, in the first phase 150 districts: This includes all 82 I.A.P districts. Rest to be selected among intensive N.R.L.M districts. All blocks in the selected districts are covered Applicable to all women SHGs-can avail loans up to Rs. 3 lakh at the interest of 7 % per annum An additional interest subvention of 3% on repayment of loan in time, reducing the effective interest rate to 4%

7. AMENDMENTS in NRLM Remaining districts, all women S.H.G s whose members are from the N.R.L.M target group, availing loans up to Rs.3.0 lakh will be eligible for interest subvention: Applicable interest rate 7%. The amount for this purpose has been allotted to States based on- inter se ratios of the loan outstanding of women SHGs in the respective States (50 % weightage) 50% weightage to inter-se poverty ratios across the States. The modalities for operationalization is being worked out in consultation with the Dept. of Financial Services.

8. AMENDMENTS in NRLM Treatment of professional support cost at Block and sub-Block levels (including BMMU staff training and Capacity Building) as part of Programme Costs under Institution Building and Capacity Building (IBCB) costs and not as administrative costs.

9. AMENDMENTS in NRLM Increase in the allocation for Skills and Placement from 15% to 25%; This will help in achieving the target of skilling 50 lakh youth during the 12th Five Year Plan The approval process of projects under the Scheme is being progressively be devolved to the State Governments

10. AMENDMENTS in NRLM Setting up of National Level Society viz. National Rural Livelihoods Promotion Society (NRLPS) under the Societies Registration Act to as a technical support unit for N.R.L.M

11. AMENDMENTS in NRLM Relaxing in funding norms for the State of Jammu & Kashmir: More intensive implementation of N.R.L.M to reach around two thirds of the rural households within a period of five years The total requirement of funds for the remaining part of the current five year plan is around Rs. 478.70 crore. Funding pattern between Centre and the State of J&K has been changed from the current 75:25 to 90:10.

12. IMPLICATIONS of NEW PROVISIONS UNDER NRLM End of S.G.S.Y – no more direct funding to D.R.D.A s under NRLM Unspent amounts in D.R.D.A s to be recouped to the State mission after meeting committed liabilities launch a campaign- bank branch wise to recoup unspent S.G.S.Y funds End of capital subsidy to individuals and S.H.G s – no fresh sanctions to be given.

13. NRLM – Fund Flow to States (GIA )

14. ROLL OUT - PROGRESS

15. SRLM PROGRESS-AT A GLANCE

16. SRLM PROGRESS-AT A GLANCE

17. SRLM PROGRESS-AT A GLANCE

18. States Transition to NRLM States Yet to Transit to NRLM: • Tripura - by July end • Himachal Pradesh – July end • Sikkim - July end • Arunachal Pradesh - August • Uttarakhand - August • Manipur - August • Goa

19. States Transition to NRLM Note: • End of S.G.S.Y – no more direct funding to D.R.D.A s under NRLM • Non N.R.L.M states would received funds only related to – Interest subsidy, R.S.E.T.I, M.K.S.P and Skills and placement

20. SETTING UP PROFESSIONAL STRUCTURES

21. Overall Status of Recruitment

22. Recruitment and Induction of Staff (%) - SMMU

23. Recruitment and Induction of Staff (%) -DMMU Aug. 13 Aug. 13 July. 13 Oct. 13 Sept. 13 Sept. 13 Sept. 13 Sept. 13 Sept. 13 Sept. 13 Nov. 13 Nov. 13 Nov. 13

24. Recruitment and Induction of Staff (%) -BMMU

25. Status of Recruitment -BMMU

26. 1st Phase districts and intensive block Strategy:

27. NRLM INTENSIVE IMPLEMENTATION Partnership with National Resource organizations – S.E.R.P, A.P and BRLPS, Bihar Roll Out with the support of existing Federations (Partnerships with NGOs). Roll out by SRLM Own BMMU staff

28. Key Interventions in intensive Blocks • Participatory identification of poor • Universal social mobilization of all poor into SHGs and their Federations • Capacity Building of Institutions and Community Cadres • Capitalization of Community Institutions: revolving fund, vulnerability reduction fund and community investment support fund

29. Key Interventions in intensive Blocks • Promotion of SHG Bank Linkage • Promotion of safety nets for Poor • Promotion of primary sector livelihoods for the poor – agriculture, livestock, forest produce, fishery • Promotion of convergence of Institution of Poor with PRIs • Institutions of poor accessing all their entitlements

30. Key Intervention Areas in intensive Blocks Additional thematic layers (as per demand – based on large scale best practices): • Access to Entitlements • Convergence with MGNREGA • Gender and Social Action • Persons with disability • Extremely Vulnerable and Poorest of Poor • Health and Nutrition • Sanitation • Employment and Enterprise Services

31. Key outcomes from intensive blocks - CRPs Available for Scaling Up Note: An intensive block would facilitated to have 750 internal CRPs by the end of year-5, of whom 500 will be available for other blocks for scaling up. Typically 20 CRPs could cover a block.

32. Expected Results of Resource Block (in 5 Years) • No. of poor households mobilized : 12000 • No. of SHGs formed : 1200 • No. of village level federations formed(VO) : 120 • No. of Cluster federations formed : 04 • No. of Internal CRPs generated : 750 • Amount of Mission funds to S.H.G federations (Rs. Cr) : 5.4 7. No. of SHGs linked to Banks : 960 • Amount of Bank credit mobilized (Rs. Cr) : 30

33. N.R.L.M inititatives in other districts and blocks

34. Setting up suitable Support Structures • SRLM/DRDA to select 2-3 blocks in each non intensive district. • SRLM/DRDA to recruit /depute 2 persons in each selected blocks. • In each non intensive district, 2 persons ( capacity building, micro finance) may be recruited additionally and positioned in the selected 2-3 blocks to handhold and monitor the activities. • All the costs may be booked under IBCB head of BMMU. • An independent cell may be placed at SMMU level by SRLMs to monitor and manage non intensive blocks.

35. Key Activities • Building capacity of recruited/deputed staff especially in building capacity of older SHGs, bank linkages and financial management. • Capacity Building of existing SHGs by providing training and immersion in the Resource Blocks. • Revolving fund to SHGs following Panchsutra. • Financial Management and Financial literacy to SHGs. • Facilitating Bank Linkages. • PRI reps, Bank managers, youth also get trained/exposed to best practices

36. Activities … • Bank Mitra strategy introduced for effective bank linkages • In each village, S.H.G book keepers are identified and trained by district team. • Services of Internal CRPs can also be taken for building capacity of SHGs. • Formation of new SHGs, as per demand • Community Based Recovery Mechanism (C.B.R.M) to establish.

37. PILOTS IN SOCIAL INCLUSION, P.R.I CONVERGENCE, etc

38. Strategy and outcomes • Social inclusion pilots on: rehabilitation of manual scavengers, sanitation, anti-human trafficiking initiatives, inclusion of persons with disability, special initiatives for persons with disabilities, etc • P.R.I convergence • Any state and district specific initatives – for

39. CREDIT/Financial Inclusion:Creating Access to Finance

40. Credit Targets for year 13-14

41. Credit Targets for year 13-14

42. Credit Targets for year 13-14 PRC MEETING - 7th June, 2013

43. Action Points • Strengthen the “Financial Inclusion” team at the State, district and Block level to look after the financial inclusion • A clear strategy to pursue Financial Inclusion in intensive and non-intensive blocks • Monthly meetings of the Sub-committee under SLBC, to review SHG-bank linkage and the repeat finance to the SHGs • Review the credit target achievements regularly, bank-wise and district wise in the SLBC sub-committee meetings • Conduct regular meetings of the BLBC and DCC meetings and ensure participation of BDO/PD DRDA respectively, including and other stakeholders in the meetings

44. Interest Subvention For 150 districts For the remaining districts All NRLM compliant SHGs will get subvention to the extent of difference between the lending rates and 7% States will add their 25% share. Roll out will be done on the basis of the guidelines finalized by DFS • As per the cabinet decision , all women SHGs can avail the loan at 7% , for the loan upto 3 lakhs. They will also receive a subvention of additional 3% for prompt repayment. • Roll out will be done on the basis of the guidelines finalized by DFS

45. Number of Districts, in 150 districts, state-wise *Estimated Interest subvention that state might avail on the basis of their share of loan outstanding in the country

46. Number of Districts, in 150 districts, state-wise *Estimated Interest subvention that state might avail on the basis of their share of loan outstanding in the country

47. Number of Districts, in 150 districts, state-wise *Estimated Interest subvention that state might avail on the basis of their share of loan outstanding in the country PRC MEETING - 7th June, 2013

48. Number of remaining districts and allocations, state-wise *Allocated on the basis of 50% weightage to the poverty ratio and 50% on the loan outstanding for the year 2011-12

49. Number of remaining districts and allocations, state-wise *Allocated on the basis of 50% weightage to the poverty ratio and 50% on the loan outstanding for the year 2011-12

50. Number of remaining districts and allocations, state-wise *Allocated on the basis of 50% weightage to the poverty ratio and 50% on the loan outstanding for the year 2011-12 PRC MEETING - 7th June, 2013