INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

DAY-NRLM
 Introduction
• Swarnajayanti Grameen Swarojgar Yojana (SGSY, launched in 1999, has been
restructured as the National Rural Livelihoods Mission (NRLM) in 2011 and
DAY-NRLM in 2015, to reduce poverty by enabling 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 and sustainable grassroots institutions of the poor.
• It works on three pillars:
– Enhancing and expanding existing livelihood options of the poor
– Building skills for the job market outside; and
– Nurturing self-employed and entrepreneurs.
• The Mission provides financial and capital services, production and productivity
enhancement services that include technology, knowledge, skills and inputs,
market linkages, etc.
• The interested rural BPL youth would be offered skill development
after counseling and matching their aptitude with the job requirements and
placed in jobs that are remunerative.
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• Self-employed and entrepreneurial oriented poor would be provided skills and
financial linkages and nurtured to establish and grow with micro-enterprises for
products and services in demand.
• It aspires to connect all rural BPL families with opportunities for sustainable
lives. Supporting them till they are free from poverty.
• The process of social mobilization, institution building, and empowerment
through an external, committed, and sensitive support framework.
• Their upward mobility by facilitating information sharing, skill development,
credit access, marketing access, and access to other livelihood services.

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 Core Belief of NRLM

• The core belief of NRLM is that the poor have innate capabilities
and a strong desire to come out of poverty. The challenge is to
build their capabilities to generate meaningful livelihoods and
enable them to come out of poverty.
• NRLM focuses on universal inclusion of the poor, prioritizing the
poorest of the poor, identified through participatory processes and
converted into institutions of the poor that are supported to
leverage formal credit and access services and benefits meant for
the poor, as well as develop innovative community-led
interventions leading to sustainable livelihoods and improved
quality of life.

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Eligibility for DAY-NRLM

• SHGs must have been active for the past 6 months according to
their financial records, not just since the opening of their savings
account.
• SHGs should follow the 'Panchasutras,' which include regular
meetings, savings, inter-loaning, timely repayments, and
maintaining up-to-date account books.
• They must meet the qualification criteria set by NABARD for
grading.
• If SHG federations are formed, they can conduct grading
assessments to assist banks.
• Even previously inactive SHGs can qualify for credit if they are
revived and remain active for at least 3 months.

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Key Features of NRLM

• Social Inclusion and Institutions of the Poor

– Universal Social Mobilization (SHGs of SC/ST, women, and vulnerable groups, 50%
SCs, 15% minorities, 3% disabled persons out of 100% coverage).
– Promotion of Institutions of the poor (SHGs, etc)
– Training, Capacity building and skill building
– Revolving Fund and Capital Subsidy:
– Universal Financial Inclusion
– Provision of Interest Subsidy
• Livelihoods
– NRLM would look at the entire portfolio of livelihoods of each poor household, and
work towards stabilizing and enhancing the existing livelihoods and subsequently
diversifying their livelihoods.
– Infrastructure creation and Marketing support
– Skills and Placement Projects (National Skill Development Corporation
– Rural Self-Employment Training Institutes
– Innovations (5% central allocations)

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• Convergence and Partnerships
– Convergence with other programs
– Partnerships with NGOs and CBOs
– Linkages with PRIs

• Monitoring and Learning

• Funding Pattern (75:25 for center-state and 90:10 for northeast,
Sikkim, J&K, Uttarakhand, HP, etc., and 100 % for UTs)

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Financial Assistance under the NRLM

• Rs. 10000 per SHG to be given to NGOs/ CBOs/ Community Coordinators/

Facilitators/Animators towards group formation and development.
• Revolving Fund (RF): As a corpus to SHG with a min. of Rs. 10000 to a max. of
Rs. 15000 per SHG, only for SHGs with more than 70% BPL members.
• Capital Subsidy (CS): Individual beneficiaries @Rs. 15,000 per general category
and Rs. 20,000 per SC/ST category only for BPL members. The maximum
amount of subsidy that an SHG is eligible for is Rs. 2.50 lakh, only those SHGs
with more than 70% BPL members are eligible for the subsidy to SHGs.
• Capacity building and skills training: Rs. 7500 per beneficiary for training and
capacity building not only for the beneficiaries but also for all other
stakeholders. The skills training here refers to member-level/ training for self-
employment and is distinct from the Placement-linked Skills training.

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• Interest subsidy - Subsidy on interest rate above 7% per annum for all SHG
loans availed from banks.
• One-time grant for corpus fund for sustainability and effectiveness of federations
• Rs 10,000 for Village/Panchayat level federation
• Rs 20,000 for Block level federation
• Rs 100,000 for the District level federation
• Administrative expenses: 5% of the allocation, net of the component relating to
skill development & placement, and net of the component of RSETIs.
• Infrastructure and Marketing - Up to 20% (25% in the state’s program in the case
of northeastern states and Sikkim) of the Central share and State share of
allocation, i.e.utlay.
• Skills and Placement Projects and Innovations (20% of the Central allocation) -
Expenditure on innovative projects should not exceed 5%, and the remaining
15% is for placement-linked skill development projects. 50% of the allocation
for placement-linked skill development projects

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Sub-schemes under NRLM
Sub-scheme Description
Deen Dayal It focuses on rural youth between the ages of 15 and 35 from low-income
Upadhyaya families.
Grameen It is tasked with two goals: diversifying the incomes of rural poor
Kaushalya Yojana households and catering to the career aspirations of rural youth.
(DDU-GKY)
Saansad Adarsh On October 11, 2014, it was founded with the goal of developing a
Gram Yojana holistically developed model of Gram Panchayats across the country.
(SAGY)
Pradhan Mantri By providing pucca houses with essential amenities to all homeless
Awaas Yojana- households and households residing in kutcha and dilapidated houses in
Gramin (PMAY-G) rural areas, it hopes to provide “Housing for All” by March 2024.

Shyama Prasad It was launched by the Prime Minister on February 21st, 2016. to provide
Mukherji Rurban rural communities on the edge of growth with catalytic interventions.
Mission (SPMRM) Upon being re-classified as a Centrally Sponsored Scheme, the Critical
Gap Funding is now shared between the Centre and the State in a ratio of
60:40 for Plain area States and 90:10 for Himalayan and NE States.

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Convergence of DAY-LRLM
• Convergence between NRLM and MGNREGS
• Convergence with rural housing, drinking water and sanitation, watershed
management programs, etc.
– Provide Rural poor with their entitlements,
• Industry Associations
– Carry out market research and HR and skill evaluations.
– Create a plan for placement-related skills.
• Partnership with Civil Society Organizations (CSOs)
– Upscaling various thematic interventions Getting service in areas like knowledge management,
capacity building and training, technology transfer, and livelihood promotions
– Linking SHGs with various line ministries
– Understand innovations
• Academic and research institutions
– Developing professionals for rural livelihood programs.
– Policy formulation process through evidence-based research and action research.
– Monitoring macro and micro level trends impacting rural livelihoods

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Concluding Points

• The low potential of SHGs as entrepreneurs is an issue.

• Effective involvement of NGOs and CBOs.
• Training and capacity building
• Financial planning and management
• Effective convergence
• Sustainability of SHGs

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