NRLM Guidelines English
NRLM Guidelines English
NRLM Guidelines English
Mission Document
T
he mandate of the Ministry of Rural have not been able to fully utilise the funds received
Development (MoRD), GoI is rural poverty under SGSY due to lack of dedicated human
alleviation through programmes directly resources and appropriate delivery systems. In
targeted at the rural poor households. Within the the absence of aggregate institutions of the poor,
‘directly targeted’ category, there are programmes such as the SHG federations, the poor households
focused on wage employment and programmes could not access higher order support services for
focused on self-employment. The Swarnajayanti productivity enhancement, marketing linkage, risk
Grameen Swarojgar Yojana (SGSY) is the Ministry management, etc. SGSY has been found to be
programme which focuses on self-employment. more successful wherever systematic mobilisation
This programme was launched in the year 1999, of the poor into SHGs and their capacity building
by restructuring the Integrated Rural Development and skill development has been taken up in a
Programme (IRDP). systematic manner. In other places, the impact has
The cornerstone of the SGSY strategy was that the not been significant.
poor need to be organised and their capacities The magnitude of the task of rural poverty alleviation
built up systematically so that they can access through direct interventions in self-employment is
self-employment opportunities. In the 10 years enormous. Out of the estimated 7.0 crore rural BPL
of implementing SGSY, there has developed a households, 4.5 crore households still need to be
widespread acceptance in the country of the need organised into SHGs. A significant number of these
for poor to be organised into SHGs as a pre- households are extremely vulnerable. Even the
requisite for their poverty reduction. existing SHGs need further strengthening. It was in
Comprehensive reviews of SGSY have brought this background that Government have approved
into focus several shortcomings like vast regional the restructuring of SGSY as the National Rural
variations in mobilisation of rural poor; insufficient Livelihoods Mission (NRLM), to be implemented in
capacity building of beneficiaries; insufficient a mission mode across the country. NRLM builds
investments for building community institutions; on the core strengths of the SGSY and incorporates
and weak linkages with banks leading to low credit the important lessons from large scale experiences
mobilization and repeat financing. Several states in the country.
Introduction |
NRLM has an ambitious mandate. It aims and institutions for the poor. The dependence
to reach out to all the rural poor families (BPL on external support structures should decline over
families) and link them to sustainable livelihoods time. Their successful and empowered members
opportunities. It will nurture them till they come and leaders take charge of and accelerate many
out of poverty and enjoy a decent quality of life. of these processes. Thus, the programme for the
To achieve this, NRLM will put in place dedicated poor becomes the programme by the poor.
and sensitive support structures at various levels. These two transitions are critical for the success of
These structures will work towards organising the NRLM. Poverty is a complex and multidimensional
poor, building their capacities and the capacities phenomenon. The institutions of poor therefore
of their organisations, enabling them access to need to engage in many sectors and with several
finance and other livelihoods resources. The service providers. Their ability and effectiveness
support institutions will play the roles of initiating improves with time and experience. However, after
the processes of organising them in the beginning, the initial learning curve, the progress picks up
providing the livelihoods services and sustaining speed with quality.
the livelihoods outcomes subsequently. The support
structures will also work with the unemployed Based on MoRD’s extensive consultations
rural poor youth for skilling them and providing with various stakeholders including the State
employment either in jobs, mostly in high growth Governments, Civil Society Organisations,
sectors, or in remunerative self-employment and Bankers and academicians, the NRLM ‘Framework
micro-enterprises. for Implementation’ has been developed. NRLM
is a learning mission and learns from all the best
The Institutions of the poor – SHGs, their federations
practices of poverty eradication and also from
and livelihoods collectives - provide the poor
failures. Like the Mission, its ‘Framework for
the platforms for collective action based on self-
Implementation’ is a learning, live and dynamic
help and mutual cooperation. They become a
framework. This framework offers space for local
strong demand system. They build linkages with
plans based on local context and offers space
mainstream institutions, including banks, and
for learning from the experiences in the field
Government departments to address their core
as the implementation progresses. Each state
livelihoods issues and other dimensions of poverty.
These institutions provide savings, credit and other would develop its own Operational Guidelines
financial services to meet their priority needs. These for implementation of NRLM within the broad
include consumption needs, debt redemption, food contours of the framework. Thematic and issue-
and health security and livelihoods. They augment based National Operational Manuals would
knowledge, skills, tools, assets, infrastructure, own also be made available as the implementation
funds and other resources for the members. They progresses.
increase incomes, reduce expenditures, increase NRLM endeavours, through its dedicated sensitive
gainful employment and reduce risks for their support structures and organisations at various
members. They also increase their voice, space and levels, to reach out to all the BPL households in
bargaining power in dealing with service providers. the country, and take them out of poverty through
Mobilising the poor into their institutions needs to be building their capacities, financial muscle and
induced by an external sensitive support structure. access, and self-managed self-reliant institutions;
Government agencies, NGOs and civil society through placement in jobs, and nurturing them into
organisations, Local self governments, banks and remunerative self-employment and enterprises.
corporate sector can play this role. With time, as The institutions of the poor gradually take charge
the institutions of poor grow and mature, they of supporting their members being in control of
themselves become sensitive support structures their livelihoods, lives and destiny.
The core belief of National Rural Livelihoods resources, skills and preferences. Thus, they come
Mission (NRLM) is that the poor have innate out of abject poverty and do not fall back into
capabilities and a strong desire to come out poverty. NRLM also believes that the programme
of poverty. They are entrepreneurial, an essential can be up scaled in a time bound manner, only if
coping mechanism to survive under conditions it is driven by the poor.
of poverty. The challenge is to unleash their
capabilities to generate meaningful livelihoods NRLM Mission
and enable them to come out of poverty. The first
step in this process is motivating them to form “To reduce poverty by enabling the poor
their own institutions. They and their institutions households to access gainful self-employment and
are provided sufficient capacities to manage the skilled wage employment opportunities resulting
external environment, enabled to access finance, in appreciable improvement in their livelihoods
and to expand their skills and assets and convert on a sustainable basis, through building strong
them into meaningful livelihoods. This requires and sustainable grassroots institutions of the
continuous handholding support. An external poor.”
dedicated, sensitive support structure, from the
national level to the sub-district level, is required to NRLM Guiding Principles
induce such social mobilisation, institution building
and livelihoods promotion. Poor have a strong desire to come out of
poverty, and they have innate capabilities.
Strong institutional platforms of the poor, enable
Social mobilisation and building strong
them to build-up their own human, social, financial
institutions of the poor is critical for
and other resources. These capabilities enable them
unleashing the innate capabilities of the
to access their rights, entitlements and livelihoods
poor.
opportunities and services, both from the public
and private sector. The social mobilisation process An external dedicated and sensitive support
enhances solidarity, voice and bargaining power of structure is required to induce the social
the poor. These processes enable them to pursue mobilisation, institution building and
viable livelihoods based on leveraging their own empowerment process.
NRLM
Livelihood Services
M ka
ity
Li
ar ge
Pr ech
n
ke s
T
o
Institutional
Platforms of Poor
(SHGs, Federations and
Dedicated Support Livelihoods Collectives: Human and
Institutions Aggregating and Federating Social Capital
(Professionals, Poor, Women, Small & (Leaders, CRPs,
Learning Platform Marginal Farmers, SCs, STs Community Para-
M & E Systems) and other marginalized and Professionals)
vulnerable)
La live er
m to
D lic
st ry vic
Pu
ts
e S
le s
en
m o es
n
tit es
ile f
En Acc
INNOVATIONS
1. Formation of SHGs: Rs. 10,000 per SHG immersion visits is also to be covered under
to be given to NGOs/CBOs/Community this component. The skills training here refer
Coordinators/Facilitators/Animators towards to member level training for self-employment
group formation and development. and are distinct from the Placement-linked
Skills training.
2. Revolving Fund (RF): As a corpus to SHG
with a minimum of Rs. 10,000 to a maximum 5. Interest subsidy: Subsidy on interest rate
of Rs. 15,000 per SHG. This is given to all above 7% per annum for all SHG loans
SHGs that have not received RF earlier. Only availed from banks, based on prompt
those SHGs with more than 70% BPL members repayment. Interest subsidy would be
are eligible for RF. provided to an individual beneficiary or
SHG member till he/she has availed a bank
3. Capital Subsidy (CS): Capital subsidy ceiling
loan up to an amount of Rs 1.00 lakh. It is
is applicable, both for members of SHGs and
expected that there will be repeat doses of
individual beneficiaries @Rs. 15,000 per
financing to members in SHGs and this limit
general category and Rs. 20,000 per SC/ST
of 1.0 Lakh is the cumulative loan availed by
category. The maximum amount of subsidy that
a member (household). This subsidy is not
an SHG is eligible for is Rs. 2.50 lakh. Only
available on such occasions when the SHG
BPL members are eligible for individual subsidy,
is availing capital subsidy.
and only those SHGs with more than 70% BPL
members are eligible for the subsidy to SHGs. 6. One time grant for corpus fund for sustain-
ability and effectiveness of federations:
4. Capacity building and skills training -
Rs 10,000 for Village/Panchayat level
Rs. 7,500 per beneficiary: The amount
federation
available under this component is used
Rs 20,000 for Block level federation
for training and capacity building not only
Rs 100,000 for District level federation
of the beneficiaries but also of all other
stakeholders, including programme officers 7. Administrative expenses: 5% of the
and staff, community professionals, concerned allocation, net of the component relating to
government officials, NGOs, PRI functionaries skill development & placement and net of
etc. Expenditure on exposure visits and the component of RSETIs. This amounts to