The Swarnjayanti Gram SwarozgarYojana (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 Livelihood Mission. The SGSY or NRLM Scheme aimed at providing sustainable income to rural BPL households through income generating assets/economic activities in order to bring them out of poverty.
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 adoption of a “Livelihoods Approach” to rural poverty elimination. The approach encompassed the following four inter-related tasks:-
- Mobilizing 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
The government accepted the recommendation of the Committee and restructured SGSY into National Rural Livelihood 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. The Framework for Implementation for N.R.L.M was approved by the Ministry on 9th December, 2010 and the Mission was formally launched on 3rd June, 2011.
Mission of National Rural Livelihood Scheme (NRLM)
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.” National Rural Livelihood Mission (NRLM) implementation is in a Mission Mode which enables the following:-
- 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.
- Focus on targets, outcomes and time bound delivery
- Continuous capacity building, imparting requisite skills and creating linkages with livelihoods opportunities for the poor, including those emerging in the organized sector, and
- Monitoring against targets of poverty outcomes.
As NRLM follows a demand driven strategy, the States have the flexibility to develop their livelihoods-based perspective plans and annual action plans for poverty reduction. The overall plans would be within the allocation for the state based on inter-se poverty ratios.
DAY-NRLM Guiding Principles
- Poor have a strong desire to come out of poverty, and they have innate capabilities
- Social mobilization and building strong institutions of the poor is critical for unleashing the innate capabilities of the poor.
- 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.
National Rural Livelihood Mission (NRLM) Values
The core values which guide all the activities under NRLM are as follows:
- Inclusion of the poorest, and meaningful role to the poorest in all the processes
- Transparency and accountability of all processes and institutions
- Ownership and key role of the poor and their institutions in all stages – planning, implementation, and, monitoring
- Community self-reliance and self-dependence
Components of DAY-NRLM Scheme
- Institutional Building & Capacity Building
- Financial Inclusion
- Livelihoods Promotion
- Social Inclusion & Development
DAY NRLM List of Schemes 2021 – Aajeevika Initiatives
DAY-NRLM covers several additional blocks under “Intensive Strategy”. This scheme is helpful in tackling farm distress. NRLM Scheme generates new income avenues and provide financial stability to rural families. NRLM will mobilize crores of households into Self Help Groups (SHGs). DAY-NRLM provides and alternative source of income to the poor families and farmers earning below MSP. Govt. has included the following initiatives under DAY-NRLM. See complete DAY NRLM List of Schemes 2021 below:-
- Mahila Kisan Shashaktikaran Pariyojana (MKSP) – The main objective of this sub-scheme is to empower women in agriculture by making systematic investments to enhance their participation and productivity. The programme also seeks to create and sustain agriculture-based livelihoods concerning women in rural areas. Other aims are to ensure food and nutrition in the households, enable better access to services and inputs for women, improve the managerial capabilities of women, etc.
- Community Institution Building (CIB)
- Aajeevika Grameen Express Yojana (AGEY) – AGEY provides safe and affordable rural transport services to connect remote rural villages. This scheme was initiated in 2017. It aims at providing alternative sources of livelihood to members of SHGs under the parent scheme by enabling them to offer public transport services in backward rural areas. The scheme offers affordable, safe, and community-monitored rural transport services to connect villages in remote areas with key amenities & services (access to health, markets, and education) for the overall economic development of the region.
- Financial Services in Remote Areas – SHGs provide credit services to every person whether it is deposit, credit, remittance, disbursement of old age pensions, scholarships, payment of wages in MNREGA and insurance facilities. As of now, there are Banking Corresponding Agents which have already provided banking services to SHGs.
- Start-up Village Entrepreneurship Programme (SVEP) – SVEP provides support to entrepreneurs in rural areas to set up new local enterprises. The objective of this sub-scheme is to promote startups in rural areas. The scheme will address the three key hiccups concerning rural startups: a) A missing knowledge ecosystem, b) A missing financial ecosystem, c) A missing incubation ecosystem. SVEP envisions the generation of sustainable self-employment opportunities for rural poor youth, facilitating them to engage effectively with the market and help generate wealth locally.
- Deendayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY) – DDUGKY aims at providing long term skill training to rural youth and to get them placed in higher wage employment sectors. To simplify the process of registration for training, DAY-NRLM has also launched KAUSHAL PANJEE App. CIPET and Indo German Tool Rooms are included as the implementing agency for this project.
- National Rural Livelihoods Project (NRLP) – The NRLP is designed to create proof of concept and build capacities at the central and state levels, to have a facilitating environment for all states and UTs to transit to the NRLM
- Interest Subsidy / Subvention – DAY-NRLM will provide interest subvention to women SHGs who have availed bank loans worth Rs. 3 lakhs. Interest subsidy reduces the effective cost of borrowing to 7% p.a. Govt. will also provide Interest subsidy of additional 3% for timely repayment of loans which reduces it to 4%.
- Community Livelihood Professionals – NRLM Mission has given training to community members to provide support to themes like bookkeeping, training and capacity building, financial services etc. This mission also includes Community Livelihoods Resource Persons (CLRPs) like Krishi Sakhi and Pashu Sakhi to provide 24 X 7 doorstep services to small and marginal farmers.
- Rural Self Employment Training Institutes (RSETI) – DAY-NRLM supports setting up of Rural Self Employment Institutes (RSETIs) to skill rural youth to provide self-employment. Moreover this mission will launch Standard Operating Procedures to ensure transparency, efficiency and Quality assurance in implementation of skill training in RSETIs.
- Rural Haats – For marketing of SHG products and agricultural produce, this mission will set-up haats at village and block levels along with MGNREGS and district / state level resources. Members from women SHGs, Panchayati Raj Institutions (PRIs) and local government officials will manage these haats.
- Promotion of Farm Livelihood – DAY-NRLM is going to include 5 lakh women farmers under its farm livelihoods interventions. These interventions are sustainable agriculture, livestock and NTFP based activities and to support SHG member families through farm-based value chain initiatives. This mission will also promote organic cultivation in village clusters and to develop Community Resource Persons through intensive training.
- Financial Inclusion – DAY-NRLM works with Department of Financial Services (DFS), RBI and the Indian Bank Associations (IBA) in order to provide bank credit to SHGs.
Implementation of DAY NRLM Scheme
National Rural Livelihood Mission is a highly process oriented programme and requires intensive application of resources, both financial and human, in order to mobilize the poor into functionally effective institutions, promote their financial inclusion and diversify and strengthen their livelihoods. It is, therefore, not feasible to roll out the programme in full scale across the country in one go, and therefore, it has been decided to phase the implementation of the programme over period of 10 years.
The blocks and districts in which all components of N.R.L.M are implemented are treated as ‘intensive’ blocks and districts, whereas the remaining as ‘non-intensive’ blocks and districts.
Implementation of National Rural Livelihood Mission at Block Level
Implementation in the blocks is being done in four ways –
a) Resource Blocks* with the support from National Resource Organization(s) (NRO) [5-6% blocks in a state];
b) Intensive Blocks** implemented with SRLM staff and internal community resource persons and the CRPs generated in resource blocks;
c) Partnership Blocks*** with the support from local community federations and NGO partners; and
d) Non-intensive Blocks**** are the remaining blocks in the state which are not taken up for implementation in the initial phase.
This mission will enable poor candidates living in rural areas to have access to formal sources of finance. Moreover, SHGs will now have access to bank credit and other financial services. DAY-NRLM focuses on expansion of banking services to under-served regions.