PRC Meeting GROUP-I Date: 28 th May, 2013

1. Welcome PRC Meeting GROUP-I Date: 28th May, 2013

2. N.R.L.M - Structure of presentation • Recent amendments in NRLM • Annual action plans – 2013-14 • Restructuring of NRLP • Roll out-Progress: structure, intensive and non-intensive blocks • Credit strategy • R.S.E.T.I s • Livelihoods – M.K.S.P • Systems PRC MEETING - 28th May, 2013

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 – abolished Community Investment Fund (CIF) in Intensive blocks to SHG Federations and livelihoods organizations of the SHG member in the intensive blocks – financial intermediation and collective social and economic actions Revolving Fund would continue to be available in both intensive and non-intensive districts/blocks

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 by States among intensive N.R.L.M districts. 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. 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. In non-N.R.L.M states: Interest subsidy / R.S.E.T.I / M.K.S.P / Skills and placement

13. Annual Action plans – 2013-14

14. Annual Action plan – 2013-14 Process adopted: • Tentative budgets communicated in April 2013-14 • Since there was a major restructuring of the World Bank funded N.R.L.P – the revised components were communicated in the last week of April • A 2 – day consultation with the State missions on the structure of A.A.P for 2013-14 – last week of April PRC MEETING - 28th May, 2013

15. Annual Action plan – 2013-14 Process adopted: • May 1st – Cabinet approval received for restructuring of N.R.L.M • What was communicated as tentative allocation to the states could now be officially communicated • N.M.M.U visited states ( 2-day visit) for communicating the elements of the revised N.R.L.M and N.R.L.P and to answer doubts PRC MEETING - 28th May, 2013

16. Annual Action plan – 2013-14 Process adopted: • Revised plans received from States • Appraisal of State plans revealed wide diversity in understanding different components and the basis for costing components • N.M.M.U Appraisal w.r.t N.R.L.P cost norms, and the I.B/C.B norms evolved in the 10 – day writeshop, cost norms developed by experienced states, cost norms evolved in consultations with the World Bank ( for N.R.L.P components) PRC MEETING - 28th May, 2013

17. Annual Action plan – 2013-14 Process adopted: • Discussions with I.F.D of the Ministry on cost norms – 2 rounds • After approval of the appraisal norms – State plans will be appraised and comments sent to States before the E.C meeting • E.C meetings now scheduled from June 10th to 14th - 19 states PRC MEETING - 28th May, 2013

18. OUTPUTs expected in 2013-14 • A.A.P of each State will have 2 components – • Setting up of structures – mission structures, partenrships with resource organizations, institutions of academic excellence, systems ( M&E, I.C.T, F.M, etc ) • Social mobilization outcomes • no. of good quality S.H.G s formed, revived, trained, linked with banks, enabled them to access credit and interest subvention, repeat loaning, access livelihoods etc. • In intensive blocks – S.H.G federations formed, social capital identified, community professionals trained and positioned, internal C.R.P s – identified, trained and deployed PRC MEETING - 28th May, 2013

19. NRLM – Component Wise Allocation of Fund

20. NRLM – Fund Flow to States (GIA )

21. RESTRUCTURING of NRLP Scaling down the size of the project from IDA credit US$ 1 billion to US$ 500 million Project implementation period extended by 1 year Reallocation of project budgets and opening of all NRLP components for states, except support to NMMU (D.1). Reducing the geographical spread of the project from 400 blocks to 327 blocks from 118 districts of 13 states. Further review in October 2013.Only those blocks where human resources are in place and a fully functional office has been set up –would be considered under NRLP. NOTE: FUNDING SUPPORT UNDER NRLP IS NOT AN ENTITLEMENT. IT IS BASED ON PERFORMANCE

22. RESTRUCTURING of NRLP(NRLP – No. Districts and Blocks)

23. RESTRUCTURING of NRLP (NRLP Blocks and their Readiness)

24. RESTRUCTURING of NRLP 50 Resource Blocks would be supported for full five years by NRLP 277 intensive Blocks would be supported to the tune of Rs.1320 Crore by NRLP (or about 1000 Crore by World Bank) rest will be co-financed by the MoRD. Partnerships with institutions with proven track record in rural development and capacity building of community federations. Financing existing SHGs and their Federations through a process of quality assessment and validation.

25. RESTRUCTURING of NRLP: Investments for 13 NRLP States (over 5 years) SMMU (Rs. 19.10 crore per state) Staffing- those recruited through open, transparent and competitive process of recruitment Office lease, refurbishment, Air Conditioning, AV equipment, Wi-fi, Video Conferencing Equipment like Computers, Tablets, Photo-copiers, etc. Websites, Social Media, Publishing, Printing, AV films, etc. Operating expenses like telephones, mobile CUG, trainings, workshops, hiring vehicles, travel, etc. DMMU (Rs. 2.96 crore per district) - 118 districts Staffing Office set-up Operating expenses like telephones, mobile CUG, trainings, workshops, hiring, vehicles, travel, etc.

26. RESTRUCTURING of NRLP: Investments for 13 NRLP States (over 5 years) Block level Investments (327 blocks depending upon readiness) 50 Resource Blocks – Rs. 15.5 crore per block (Includes additional costs of developing community cadres, generating social capital and costs of layering) 277 Other Intensive Blocks or Home Grown Models – Rs. 12 crore per block

27. M & E (INR 3.46 crore per State) • Baseline studies, mid term and final evaluation • Process monitoring studies • Thematic studies • eNRLMS (Rs. 6.92 crore per State) • State and district level data centers, IT servers, State level Implementing Agencies • Block level computers, tablets, data cards, applications, etc. RESTRUCTURING of NRLP: Monitoring & Evaluations(over 5 years)

28. TA Partnerships (Rs. 50 crore on demand basis) • Professional staffing for dedicated cells • Studies, workshops and consultancies • Action pilots • Innovations and Partnerships (Rs. 50 crore on demand basis) • Cost of organizing innovation forum, cost of knowledge and process partners • Investments in Public-private-community partnerships RESTRUCTURING of NRLP: Technical Assistance, Innovations and R&D (over 5 years)

29. ROLL OUT - PROGRESS

30. SRLM PROGRESS-AT A GLANCE

31. States Transition to NRLM States Yet to Transit to NRLM: • Uttarakhand and • Goa • 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 PRC MEETING - 28th May, 2013

32. SETTING UP STRUCTURES

33. Overall Status of Recruitment PRC MEETING - 28th May, 2013

34. Recruitment and Induction of Staff (%) - SMMU PRC MEETING - 28th May, 2013

35. 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 PRC MEETING - 28th May, 2013

36. Recruitment and Induction of Staff (%) -BMMU PRC MEETING - 28th May, 2013

37. Status of Recruitment -BMMU PRC MEETING - 28th May, 2013

38. Human Resource- Best Practices • Complete Recruitment at State level immediately directly or through hiring HR Agency, to be completed by June • Interview Panel to include senior officer at state level, civil society and NMMU representatives • District, Block and Cluster levels through HR Agency, to be completed by July/August in NRLP Blocks • Pre-selection 15-30 day stay/immersion in the village • Written test for 3R Skills and Logical Reasoning • BehaviouralComptency-based selection • Deselection during initial induction • Human Resource Manual as in Bihar and Jharkhand • HR Performance Planning and Review Systems PRC MEETING - 28th May, 2013

39. Induction and Capacity Building • Generic Induction • To State Teams – to be facilitated by NMMU and National Resource Pool • To District Teams – to be facilitated by SMMU and State Resource Pool and supported by NMMU and National Resource Pool • Visioning, adaptation of Community Operation Manual • Elements • Orientation, Immersion/Village Stay, Exposure (Resource States) • Hands on Fieldwork along with CRPs in Resource Blocks • 30-40 day Classroom Inputs in 3-4 spells including understanding poverty, livelihoods, institutions, vulnerability, planning, Participatory Processes, and Development of Action Plan for the first year PRC MEETING - 28th May, 2013

40. Induction of Block /Field Teams Building Pools of Resource Persons within state team and outside for facilitating Induction • Initial Orientation (3-4 days); Participatory Processes (3-4 days) • 25-day village stay (in 2-3 villages) in resource/intensive blocks to understand the reality on ground; Debriefing/sharing – 2-3 days • 10-12 day Immersion in the Resource Organization like SERP/BRLPS including staying with community, SHGs, VO and Cluster Federation • Intensive Induction – Round 1 – 8-9 days, followed by fieldwork including hands on along with CRPs in Resource Blocks • Intensive induction – Round 2 – 8-9 days, followed by fieldwork including hands on along with CRPs in Resource Blocks • Intensive induction – Round 3 – 8-9 days, followed by fieldwork including hands on along with CRPs in Resource Blocks • Development of Action Plan for 12-18 months. • Thematic/Programme Workshops/Reviews, Customized Programs PRC MEETING - 28th May, 2013

41. Intensive Strategy:Roll Out of Resource Blocks

42. Rollout Plan of Resource Block Strategy PRC MEETING - 28th May, 2013

44. Outputs in a Typical Resource block (Chhattisgarh) PRC MEETING - 28th May, 2013

45. Key Intervention Areas in Resource Blocks • Mobilization of poor into SHGs and their Federations • Capacity Building of Institutions and Community Cadres • Capitalization of Community Institutions • Promotion of SHG Bank Linkage • Promotion of safety nets for Poor • Promotion of primary sector livelihoods for the poor • Promotion of convergence of Institution of Poor with PRIs PRC MEETING - 28th May, 2013

46. Key Intervention Areas in Resource 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 • Employment and Enterprise Services PRC MEETING - 28th May, 2013

47. Key outcomes from Resource blocks - CRPs Available for Scaling Up Note: A resource 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. PRC MEETING - 28th May, 2013

48. 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 PRC MEETING - 28th May, 2013

49. NRLM INTENSIVE – 2ND STREAM: Roll Out with the support of existing Federations (Partnerships with NGOs). Roll out by SRLM Own BMMU staff

50. SHG Federations – NGO - SRLM Partnership A large number of SHGs and their federations across states have been promoted by NGOs and others– through livelihoods programs funded by World Bank, IFAD, DFID, N.A.B.A.R.D, etc. A lot of resources have been invested in creating and nurturing such institutions We need to build upon these existing mobilisations under the National Rural Livelihoods Mission.