Deendayal Antodaya Yojana - National Rural Livelihood Mission, 2011

April 3, 2018

 

Ministry: Ministry of Rural Development

 Aim:

To reduce poverty by enabling the poor households to access gainful self-employment and skilled wage employment opportunities, resulting in appreciable improvement in their livelihoods on a sustainable basis, through building strong grassroots institutions of the poor.

Background:

  1. The Swarnjayanti Gram Swarozgar Yojana (SGSY) was a flagship programme of the Ministry of Rural Development. It was started in 1999 and  was restructured in FY 2010-11 for implementation as the National Rural Livelihoods Mission. The SGSY aimed at providing sustainable income to rural BPL households through income generating assets/economic activities in order to bring them out of poverty. 

  2. Deficiencies of SGSY:

    • Uneven geographical spread of Self Help Groups (SHGs).

    • High Attrition rates among members of SHGs.

    • Lack of adequate banking sector response.

    • Several states did not fully invest the funds received under SGSY.

    • Lack of proper delivery systems and dedicated efforts for skill training and building capacity for resource absorption among the rural poor.

    • Considerable mismatch between program capacity and program requirements. 

  3. Ministry of Rural Development (MoRD), Government of India (GoI) constituted a Committee on Credit Related Issues under SGSY (under the Chairmanship of Prof. Radhakrishna) to examine various aspects of the scheme implementation. The Committee recommended the adoption of "Livelihood Approach" to rural poverty alleviation. The approach encompassed the four inter-related tasks

    • Mobilising poor households into functionally effective SHGs and their federations

    • Enhancing access to bank credit and financial, technical and marketing services

    • Building capacities and skills for gainful and sustainable livelihoods development

    • Converging various schemes for efficient delivery of social and economic support services to poor households

  4. The government accepted the recommendation of the Committee and restructured SGSY into National Rural Livelihoods Mission (NRLM) in FY 2010-11 to provide a sharper and greater focus as well as momentum for poverty reduction. The decision also aimed to achieve the Millennium Development Goals (MDG) by 2015.

National Rural Livelihood Mission:

 

It seeks to enable the following:

  1. Shift from the present allocation based strategy to a demand driven strategy enabling the states to formulate their own livelihoods-based poverty reduction action plans,

  2. Focus on targets, outcomes and time bound delivery,

  3. Continuous capacity building, imparting requisite skills and creating linkages with livelihoods opportunities for the poor, including those emerging in the organized sector, and

  4. Monitoring against targets of poverty outcomes.

 

Features:

  1. Universal Social Mobilisation under NRLM:

    • At least one woman member from each identified rural poor household, is to be brought under the Self Help Group (SHG) network in a time bound manner.

    • Special emphasis is particularly on vulnerable communities such as

      • Manual scavengers,

      • Victims of human trafficking,

      • Particularly Vulnerable Tribal Groups (PVTGs),

      • Persons with Disabilities (PwDs) and

      • Bonded labour.

    • NRLM has devised special strategies to reach out to these communities and help them graduate out of poverty.

  2. Participatory Identification of Poor:

    • Target Group is identified through the Participatory Identification of Poor (PIP) method. The NRLM Target Group (NTG) derived through the PIP is de-linked from the BPL.

    • The PIP is conducted at frequent intervals to revise the list of poor in the village. The list of poor identified through the PIP must be vetted by the Gram Sabha and approved by the Gram Panchayat.

    • All the households in the PIP list are eligible to receive all benefits under NRLM.

  3. Community Funds as Resources in Perpetuity:

    • NRLM provides Revolving Fund (RF) and Community Investment Fund (CIF) as resources in perpetuity to the institutions of the poor, to strengthen their institutional and financial management capacity and build their track record to attract mainstream bank finance.

  4. Financial Inclusion:

    • NRLM works on both demand and supply sides of financial inclusion.

    • On the demand side, it promotes financial literacy among the poor and provides catalytic capital to the SHGs and their federations.

    • On the supply side, the Mission coordinates with the financial sector and encourages use of Information, Communication & Technology (ICT) based financial technologies, business correspondents and community facilitators like ‘Bank Mitras’. 

  5. Livelihoods:

    • NRLM focuses on stabilizing and promoting existing livelihood portfolio of the poor through its three pillars -

      • Vulnerability reduction and livelihood enhancement

        • Deepening/enhancing and expanding existing livelihoods options and tapping new opportunities in farm and non-farm sectors;

      • Employment:

        • Building skills for the job market outside

      • Enterprises:

        • Nurturing self-employed and entrepreneurs (for micro-enterprises).

  6. Convergence and Partnerships

    • It places heavy emphasis on convergence of this scheme with other initiatives of MoRD and other Central ministries.

    • Partnership with NGO and other Civil Society Organisations.

    • Linkage with Panchayati Raj Institutions.

  7. Sensitive Support Structure:

    • NRLM has set up sensitive and dedicated support structures at the National , State , district and sub-district levels.

 

 

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