ANANDADHARA An Overview West Bengal State Rural Livelihoods

ANANDADHARA An Overview West Bengal State Rural Livelihoods Mission 1

What it is NOT!!! • • a delivery project of physical infrastructure grant or subsidy oriented programme a short term programme a micro credit programme about setting up of huge infrastructure a fund rich programme easy to see quick results

Pr Pr odu od ct uc ion tiv & ity Livelihood Services Financial & Capital Services M Lin ar ka ket ge s Institutional Platforms of Poor under NRLM Dedicated Support Institutions (Professionals, Learning Platform M & E Systems) (Aggregating and Federating Poor, Women, Small & Marginal Farmers, Destitutes) ile f M o s st ry ice La live erv S De lic b Pu INNOVATIONS Building Enabling Environment Partnerships and Convergence Human and Social Capital (Leaders, CRPs, Community Para. Professionals) s to ts es en c Ac itlem t En

Poverty elimination & improved quality of life - What is the way out 4

NRLM in WEST BENGAL Darjeeling Jalpaiguri Total Population: 9. 13 Crores • Rural/Urban Popln. %: 68. 13: 31. 87 • Literacy: 76. 26 % Cooch Behar Uttar Dinajpur Dakshin Dinajpur Malda Birbhum • Murshidabad Male: 81. 69% Female: 66. 57% • Total Rural Population: 7. 05 Crores • Total Rural Households: 1. 57 Crores • Total BPL Rural Households: 68 lakh (43%) • Total Rural Districts : 20 Bardhaman Out of which Intensive: 9 Nadia Purulia Hooghly • Intensive: 32; Model : 11; Non Intensive: 298 Howrah Bankura 24 parganas (N) • Paschim Medinipur Total Number of Blocks: 341 Total Gram Panchayats: 3347 Intensive/ Model GPs: 313/99 = 412 24 parganas (S) Purba Medinipur Intensive districts for the 1 st phase • Total Gram Sansads (Wards): 37, 139 • 4, 12, 535 SHGs: 41, 66, 605 Members 5

NRLM’s Strategy STATE Intensive (8+1=9) Intensive (4) [32] Resource (1 Max) Non-Intensive (11) Non Intensive (Rest) Model (1) – 5+6 = 11 DISTRICT (DRDC) BLOCK (BDO) Non Intensive (Rest) Interventions are taken up considering the status of the Block/ District The difference is mainly the availability of funds for Community Investment Fund and HR support in Intensive Blocks and Districts, budget support is also substantially different amongst intensive and non intensive units.

SMMU CEO/ CF Thematic Experts Admin. BMMU • Women Development Officer / Lady Gram Sevika, • SHG Supervisor • Block Project Manager • Area Coordinators (3) in Intensive / Model Block STATE DMMU DISTRICT BLOCK GRAM PANCHAYAT HR in Place • DRDC officials and personnel • Thematic Personnel support under NRLP only for Intensive Districts District Level Trainers Team SANGHAS Community Service Providers (3)

NRLM: Unique features • Building strong self reliant institutions of women SHGs, and their federations – for long term sustainability • Long term Hand-holding support - each poor HH receives a minimum 6 -8 years of intensive support. Subsequent support from their own institutions • Implementation by the poor – C. R. P strategy ( Be the ‘change’ that you want to see ) • Diversifying Livelihoods and reducing risks - Providing support to poor HHs in 3 - 4 key livelihoods • Clear Exit strategy for the mission - After 10 years in an intensive block, since community institutions start handling their own affairs 8

Progression Foundation Livelihoods Convergence • Social mobilization, institution building, capacity building, community funds, bank linkages, community cadres, CRP generation • Agriculture, livestock, N. T. F. P , risk / coping management , micro enterprises , Business Development services, . . • PRI Convergence, gender, social development (Health, nutrition, sanitation, shelter, education etc. ) 9

SGSY Vs NRLM Issue SGSY Target Groups Women, Men & Mixed SHGs Only Women SHGs Linked with CC Directly credited to SB A/c, not Linked with CC Linked with TL (Project Loan) No provision of Capital Subsidy Nature of Bank Credit • After 1 st Grading: RF-linked CC • After 2 nd Grading: Subsidy-linked TL • • Amount of Bank Credit Up to 4 times of Group Corpus Need-based, not linked with Group Corpus; 1 st time credit limit - minimum Rs. 1, 000 No specific provision Repeat financing must so that after 5 -7 years every member gets loan limit of Rs 1, 000 minimum. No provision Provision is there for loan provided to women SHGs up to Rs. 3 lakh not linked with capital subsidy under SGSY RF Capital Subsidy Repeat Financing Interest Subsidy Support of Community Not specified NRLM • • After Initial Grading: – CC (not linked with RF) After Subsequent Grading: – Enhancement of CC & or TL (not linked with Subsidy) Engagement of” Bank Sakhi” at Bank branches Community–Based Recovery Mechanism (CBRM)

SHGs and SHG Institutions in West Bengal LEVEL SHG INSTITUTIONS BLOCK 10 -12 Sanghas GRAM PANCHAYAT MAHASANGHA [53] (15%) SANGHA [2930] (87%) 10 -12 Upa Sanghas UPA SANGHA [29, 803] (80%) WARD 10 -15 SHGs HAMLET SHG 4, 12, 535 Members’ Profile : 35. 5% SC, 8% ST, 25. 2% Minorities, 4. 2% Widows, SHG 11

BASICS • • Underlying philosophy is Strength in Numbers 10 -20 members from poor womenfolk Member must be more than 18 years of age Practice of Panchasutras – #1. Regular Meetings – #2. Regular Savings – #3. Regular Inter-lending – #4. Regular Repayment – #5. Regular Record-Keeping • Opening of Bank Account

TIME PROGRESSION of an SHG • 1 st Grading – After 3 months; SHG receives Revolving Fund • 2 nd Grading – After 6 months; SHG is credit linked with the bank (in West Bengal, the SHGs are availing Cash Credit Limits) • 3 rd Grading – After one year of availing of first time credit from bank; Enhancement of Credit Linkage from bank …. and so on and so forth at yearly intervals… Term loans given to SHGs for starting common economic activity by matured SHGs TARGET: EACH MEMBER AVAILS Rs. ONE LAKH LOAN in 5 -7 years [The basis of all grading exercises is the quality of the practice of Panchasutras by the SHG. From the 3 rd grading onwards, utilization of external loan is also judged. We are expecting 6 monthly grading of all SHGs facilitated by the Sanghas and Banks. ]

Livelihood Services - Financial Capitalization of SHGs and their Federations COMMUNITY REVOLVING FUND INVESTMENT FUND DISBURSED IN 2014 -15 Rs. 27. 62 Crores Rs. 26. 94 Crores SHG Sangha Bank Capitalization of 12 Maha Sangha CFIs SEED CAPITAL GIVEN TOTAL LOANS SO FAR EXTENDED TO SHGs Rs. 4. 25 Crores Rs. 34. 40 Crores 14

BANK FINANCE TO SHGs in WEST BENGAL Disbursement of Credit to SHGs (in Crores) 534. 22 575. 91 551. 36 514. 15 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 National Average – Rs 1. 75 lakhs 0. 80 0. 40 685. 16 Average Loan Per SHG (in Lakhs) 1. 00 0. 60 989. 52 0. 43 0. 44 0. 55 0. 77 0. 54 0. 35 0. 20 0. 00 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 Source: NABARD MF India Report; 2014 -15 from NRLM Bank Linkage Portal

Livelihoods: Interventions and Initiatives Livelihoods Enhancement ü Skill upgradation on Natural Resource Management and Off-farm Income Generating Activities ü Entrepreneurs Development Programmes (SIPARD) ü Placement linked skill development (DDU-GKY) , RSETIs, ü Mahila Kisan Sashakti Pariyojna – sustainable agriculture for landless, Tasar, etc. ü Livelihood Activity Clusters across the State Marketing ü SARAS ü Melas across the country ü District and Block level marketing outlets (87) ü Marketing Consultants trained by FICCI Convergence ü Mid Day Meal, SAHAY, hospital diets, canteens ü Production and supply of school uniforms, sanitary napkins ü Nirmal Bangla Campaign ü Nutrition supplements to ICDS Centres (Pushtika) ü MGNREGS 16

Capacity Building TARGET GROUP: SHG members, the office bearers of Upa Sanghas, Sanghas and Maha Sanghas, Community cadres, Mission staff and other stakeholders including Bankers and PRI representatives. bank linkage, income generation livelihood activities, creation of para professionals , marketing and convergence, THROUGH: Community Cadres (like CRP/CSP/SC), Mission Staff, Training organisations and 19 RSETIs, collaborations with specialised organisations and bodies as well as line departments. 17

Special Initiatives for 2015 -16 Elderly. Focused intervention Livelihood Initiative for Lepcha (ST) Community Apna Bazaar – captive market development Community Managed Sustainable Agriculture e-commerce platform for marketing of SHG products from producers across districts Toll free HELPLINE for SHG members 18002000864 18

Issues and Challenges • Per capita support to SHGs under NRLM is very low especially in the non-intensive districts. • Enhancement of number of intensive blocks / districts for enabling more support to SHGs – proposal submitted. • Banking – • • More proactive role in enhancing Credit support by Banks – message to go down to the branch level. • Interest Subvention challenges Scope for SHG Institutions to receive support for Poverty Reduction from funds of Gram Panchayats received under 14 th Finance Commission. 19

5 Year Vision • 6 Lakh vibrant women SHGs – covering the most vulnerable sections of society : 3. 24 Crore poor people impacted positively by the movement. • 3349 Women’s Cooperatives in the State at the Gram Panchayat providing financial services to members. • SHG Institutions playing a positive and significant role in the poverty reduction plan of the Gram Panchayat (meaning the entire rural landscape). • Women leaders developed at the grass-root level for ensuring women have a voice in determining their future as well as the future of their community.

• Vision +Skills +Motivation +Resources +Action Plan = CHANGE • ……+ Skills + Motivation + Resources + Action Plan = CONFUSION • Vision +……. + Motivation+ Resources + Action Plan = FAILURE • Vision + Skills + ……… +Resources + Action Plan = RESISTANCE • Vision + Skills + Motivation+ ……. . +Action Plan = FRUSTRATION • Vision + Skills + Motivation + Resources + ………. . = TREADMILL LET US BE THE CHANGE THAT WE WANT TO SEE – MAHATMA GANDHI 21

How can you support SHGs? • Support their Institutions – work out models where you are engaging with the Sanghas instead of individual SHGs. That will be the only reason why the Sanghas will have a pull factor and the institutions will become stronger. • If SHGs are already engaged- are payments timely? One should not forget that they don’t have capital lying around and most of their funds come with interest – delay means cost of activity is increased thereby decreasing profitability. • Training requirements– get in touch with the DRDC • Be an advocate for the SHGs with Bankers “What gets monitored gets done”

THANK YOU 23