NRLM MODEL IN INDIA (VISION AND MISSION)

To reduce poverty by enabling the poor households to access gainful self employment and skilled wage employment opportunities resulting in improvement in their livelihoods on a sustainable basis through building strong grass root institutions of the poor. NRLM mandate is also to reach out all the poor families, link them to sustainable livelihood opportunities and nurture them till they come out of poverty and improve the quality of life.

AN OVERVIEW OF

NRLM

NIRD,Hyderabad.

NRLM MISSION

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

 NRLM mandate is also to reach out all the poor families, link them to sustainable livelihood opportunities and nurture them till they come out of poverty and improve the quality of life.

• An external dedicated and sensitive support structure

is required to induce the social mobilization, institution building and empowerment process.

• Facilitating knowledge dissemination, skill building, access to credit, access to marketing, and access to other livelihoods services underpins this upward mobility.

NRLM Values

The core values which guide all the activities under NRLM are as follows:

1 Inclusion of the poorest, and meaningful role to the

poorest in all the processes

2 Transparency and accountability of all processes and

institutions

3 Ownership and key role of the poor and their

institutions in all stages –

NRLM WORKS ON THREE PILLARS

1 Enhancing and expanding existing

livelihoods options of the poor

2 Building skills for jobs market for outside;

and

3 Nurturing self employed and

entrepreneurs (for micro enterprises)

• In the states, there is a widespread acceptance of the need for poor to be organized into SHGs as a prerequisite for the poverty reduction

• Out of the estimated 10 crore rural vulnerable households, 2.5 crore rural BPL households have been organized and brought into SHG network, 7.5 crore households still need to be organized into SHGs.

• Even the existing SHGs need further strengthening and greater

financial support.

• It was in this background the Government has approved the

restructuring of SGSY as NRLM to be implemented in mission

mode across the country.

2a SHG formation – basis is

common activity Affinity groups

Key Differences in SGSY & NRLM

(MCP) MCP – SHG will prepare

Convergence (Line Departments)

- Mid day Meal

- Distribution of Pensions

- Watershed Management

- Insurance Programme

- IAY

- Planting trees – Afforestation programmes

8 Uniformity in all states States have flexibility

(CB, Interest subvention)

9 Target Oriented Process Oriented Social Mobilization

SHG Formation

CB & IBSHG – Bank Linkage

Egg

Larva Butterfly

Pupa

S.No SGSY NRLM

10 Departmental Staff leads

Government to Community Poor has to lead – CRP, CC, PRP- Community to Community

11 All blocks – on par - Intensive & Non-Intensive blocks

- Resource blocks

12 No Involvement of NGO’s Involvement of NGO’s/ RO/Own

(Intensive blocks)(PP – CP approach)

13 No Project Cycle Project cycle in a block for 10 years

S.No SGSY NRLM

15 Credit for IGA Credit

Consumption Debts Existing livelihoods New livelihoods

16 No follow up Follow up and Monitoring

- Facilitation

- CRP, CC, PRP, DPM, SPM (supporting team)

- Only then bankers will come forward to lend

17 Target approach Saturation approach

(In a village – All the poor into SHG 1 block will be supported for 10 years)

Enough Capital to survive

18a Only money transactions

(savings, internal lending) Every meeting – agenda -Social change, Social capital

- Credit plans - Education, Health, IGA etc

19 One time subsidy

Ex:- Fish No Capital SubsidyEx:- Skill of catching Fish

- At all stages – birth, education, agriculture, livelihoods, death etc

20 Only Subsidy Linked Loan Variety of Funds (Repeat Finance)

S.No SGSY NRLM

20 Only Subsidy Linked Loan - VRF – After formation - Panchasutras –

6 months – 1st installment

- After 1 year - 2nd instalment

- After 2-3 years – 3rd instalment (Food security, Insurance activities etc.)

22 No role for Gram Panchayat - In the presence of Gram Sabha

- Gram Panchayat has to wet the PIP

(EGMM, SERP, BRLP, Kutumbashree, TNWDC)

- National Resource States

24 Self Employment - Self Employment (RSETI’s)

- Skilled wage employment (ASDP)

Group Activities livelihood collectives

(Optimize their limited)

Livelihood Multiple Lvelihoods

25 Development of a HH Comprehensive Development of a HH

- Increase in income

- Decrease in expenditure

- Increase in savings

- Decrease in risks

S.No SGSY NRLM

26 No CB manuals Every State should have

COM –approval from state government

- Perspective Plan – Next 7 years

- Annual Plan – Every year

27 No facilitators for SHG –

Bank linkages System of Bank Mithras- Banking Correspondent

- Facilitators from Community

30 Capital subsidy linked loan

is given once Loans are given repeatedly

S.No SGSY NRLM

31 Errors of exclusion and

inclusion - BPL

Minimize the errors – PIP

32 Launched all over the

country

Tasted & Standardized in states (AP, Bihar, Kerala, TN)

Lessons learned

1 There is a need for a sensitive support structure right from State level

to district and subdistrict levels The sensitive support structure has the responsibility for inducing social mobilisation and building strong

grassroots institutions of the poor, particularly women.

2 These institutions Provide continuous nurturing support which a poor household require during this Journey to come out of poverty.

3 For a poor family to come out poverty nurturing and handholding

support of its own organisations for a period of 6 - 8 years is extremely critical.

4 Rural poor households of women, organised into SHGs require

repeated doses of finance at affordable rates such that over a period of

6 – 8 years they have accessed at least Rs.100,000/-

• 5 The strength of individual SHG in providing support to their members

is multiplied when all the poor in a village are organised into SHGs and all the SHGs come together at the village level and form a federation.

• 6 A second tier of federation of the village federations at the block or

sub-block level is required to provide necessary linkages with ongoing Government programmes and to link with the sub-divisional level structure of the State Livelihoods Missions.

• 7 The poor need to overcome livelihoods risks by developing a variety

of livelihoods This enables them to survive from the shocks to any particular livelihoods streams.

• 8 Poor are very vulnerable to tackle the shocks and they need safety

nets in their organisations to access safety needs entitlements under various Government programmeslike MGNREGA, Social Assistance Programmes, PDS etc.

19

NRLM: KEY AMENDMENTS/ENDORSEMENTS

 Phased expansion - 8 years to reach all districts/blocks

 Institutions, Internal Animation, Dedicated Support

 Support for 10 years in a Block

 Participatory identification of Poor (PIP)

 Financial allocations based on inter-se poverty ratio

 Funds, Linkages, Enabling Environment

 Capitalization of all IOPs [Resources in Perpetuity]

 Interest Subvention

 Capacity Building includes Professional Costs

 25% Skills and Placement

 National Society

 HR Best Practices

State Support

• State Anchoring

– Team of Professionals from NMMU support each SRLM in NRLP States: State Anchor-led Team

– State Anchor to spend at least a week per month in the state

– Support by Senior development worker(s) as part of the team

– State Anchors from NROs;

– 2 staff each from NSO in 4 states

– Participation in the monthly reviews of SRLM and de-briefing of CRPs– Mentoring of SRLM by Academic/Management Institution- planned– Half-yearly Missions

• Monthly/bi-monthly Video Conferences with SMDs/SMMUs

• Monthly/bi-monthly thematic meetings with States

• Quarterly planning and review meetings with SRLMs

• Facilitating planning, review and learning systems in SRLMs

07/23/2024

TA and Partnerships

• 6 NROs – SERP, Kudumbashree, BRLPS, TNSRLM/PVP,

EGMM, NIRD; BIRD as NRO in financial inclusion

• SERP’s role expanded to include Financial Inclusion - MIS

• PRADAN on board as NRLM Support Organization in

Livelihoods

• Initiated discussions with FAO for collaboration on

sustainable agriculture and livestock

• No cost Partnership with NGOs – guidance finalized

• Partnership Blocks – guidance being issued

• Partnership with CBAs and other organizations –

consultations are on - guidance to be issued shortly

07/23/2024

Preparation Initial orientation on NRLM; followed by 2-4 week village stay and 1-2

week exposure visit [plus 1-2 week block stay for state team/district leads]

Focus

Visioning;

Thematic/District Management Orientation;

attachment with counterpart leads in advanced states

Phase 5,

Classroom Consolidation & Action plan

07/23/2024

Thank You One

and All

NRLM Resource Cell

NIRD,Hyderabad