National Rural Livelihood Mission (NRLM)



About NRLM

In order to establish efficient and sustainable institutions of the rural poor that enable them to increase household income through livelihood enhancements and improved access to financial and selected public services, the Government of India launched National Rural Livelihood Mission (NRLM) in 2010. On June 2011, the NLRM was renamed as Aajeevika.

The project NRLM is, perhaps, the largest poverty reduction initiative, and the largest programme for women in the world with its goal of reaching nearly 70 million rural households. NRLM was launched in 12 states that account for 85 per cent of the rural poor households in India.

The basic objective of this theme is to improve economic condition of the agricultural below poverty line (BPL) sections by promoting paid self-employment and wage employment opportunities. Within the long-term, it paves the way for broad-based inclusive growth and scale back disparities by spreading out the advantages from the islands of growth across regions, sectors and communities.

The special focus of NRLM is on poorest households. The families covered under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) are supported to broaden their livelihoods through assets and talent acquisition.

Brief History

On the recommendations of Hashim Committee, the Ministry of Rural Development restructured all the agricultural Development and economic condition Alleviation programmes like the Integrated Rural Development Programme (IRDP), Training of Rural Youth for Self-Employment (TRYSEM), Development of Women and Children in Rural Areas (DWCRA), the South India Textile Research Association (SITRA), Ganga Kalyan Yojana (GKY) and Million Wells scheme with a view to improving the efficacy of programmes.

All these schemes were unified into one self employment programme referred to as Swarna Jayanti Gram Swarozgar Yojana (SGSY). The Ministry of Rural Development has determined to re-design and re-structure the continuing SGSY into NRLM. The concept has been formed as a cornerstone of national economic condition reduction strategy.

Why NRLM Started?

In order to support and sustain the poor, the government of India started the SGSY. However, individual Self-Help Group (SHG) teams weren't able to sustain and that they folded, thanks to lack of initial support and talent. Every SHG cluster worked separately. They got restricted support for forward linkage and backward linkage. They had to face significant competition and had very little help from government. The government support was restricted to giving fund and forming SHG teams. They did not consider capability building or the other forward linkages. Since every cluster acted separately they weren't able to get facilities from different aid teams. The banks that gave loan to start out these programmes afterward began to hesitate to relinquish more loans as they doubted the potential of poor. So, even a decade after its implementation, 4.5 crore rural households out of seven crore total rural household still need to be organised into SHGs. But in states where federations of SHGs were formed under poverty alleviation programmes, they worked in a better manner. By forming federation of SHG groups, each SHG works closely with members of other groups in their own village and also with members of other blocks and district. This becomes a bigger collective group, organising all the rural poor in a state under one programme.

The need for restructuring the SGSY has arisen on account of feedback provided and proposals created by varied studies together with those conducted by National Institute of Rural Development (NIRD), Hyderabad, Bankers Institute of Rural Development (BIRD), Lucknow, Centre for Management Development, Thiruvananthapuram etc. and reports of the Design Commission. The Ministry of Rural Development (MoRD), Government of India (GoI) accepted the advice of the Committee on Credit to form NRLM to supply larger focus and momentum to realise the Millennium Development Goal (MDG) by 2015 through fast increase in the coverage of rural poor households under self-employment.

Cost of the project

The central arrange outlay for 2014-15 for Aajeevika/National Rural keep Mission (NRLM) is 4,000.00 crore, out of which RS.335.00 crore has been earmarked for North Eastern Region and Sikkim.

Although, NRLM is a centrally sponsored theme, the funding of the programme is going to be shared between the Centre and the states. The state level agency can compile and consolidate expenditure details, physical progress and different details and withstand National Mission sporadically. MoRD will release 75 per cent of the approved amount to the state Government/DRDA and the state government will release the balance amount of 25 per cent. In respect of north-eastern states, J&K, Himachal Pradesh and Uttrakhand, the GOI and state share will be in the proportion of 90:10, respectively.

The government of India can invest US$5.1 billion in NRLM over next seven years together with expected allocation for 12th FiveYear Plan. The World Bank is committing US$1 billion through its National Rural Livelihoods Project (NRLP)-its largest single investment in an exceedingly economic condition reduction program.

Structure of NRLM

The Mission is envisaged to have a three-tier dependent structure. At the apex of the structure, is NRLM, under the Ministry of Rural Development. At the state level, there are associate degree umbrella organisations under the state department of Rural Development for implementing self-employment/rural livelihoods promotion programmes.

The state level Mission with dedicated professionals and domain specialists under the state department of Rural Department is financially and technically supported by the NRLM.

The national and therefore the state mission can have a dependent relationship. They'll have mutual access to the data and services within the space of rural livelihoods.

Approach of NRLM:

NRLM has multi-pronged approach to strengthen livelihoods of the agricultural poor by promoting SHGs, existing occupations, providing ability development & placement and alternative activities. The coaching and capability building, readying of multidisciplinary specialists and alternative initiatives can enhance the credit goodness of the agricultural poor. The services of craft persons, community resource persons etc are utilised for capability building and coaching under NRLM.

The periodic interaction of Mission with Public Sector Banks and alternative monetary establishments to reinforce the reach of rural poor to the un-banked areas can guarantee their monetary inclusion.

Further, poor have multiple livelihoods and that they want multi-pronged approach to strengthen it. The prevailing strategy of social mobilisation of poor, their organisation into SHGs, coaching & capability building, credit linkage for small enterprise for self employment can continue to be one amongst the most elements of NRLM. Stress is on convergence with numerous schemes of Rural Development together with alternative line departments/ministries to strengthen the exiting occupations of the agricultural poor, guarantee their participation as beneficiary of rising opportunities as a results of numerous schemes and additionally introducing newer technologies in their enterprises.

Loopholes in NRLM

NRLM aims to come up with bread and butter and provision of alternative rural services through SHG teams. However, not everybody in geographic region is also a member of SHG cluster and not everybody would love to be a member of such cluster. Some individuals could prefer to find alternative aggregation mechanism or would love to begin up new bread and butter options singly. Therefore, if the government makes it obligatory to be a part of SHG as a method to access numerous services, the method can get corrupted and exploitative. There are lot of cases where SHGs are disintegrated or taken over by elites among the poor. NRLM has not given serious attention to prioritise agriculture and the Micro Small and Medium Enterprises (MSMEs). In fact, MSMEs are the expansion engines of rising and developing economies and they need targeted intervention. One issue that NRLM will specialise in is developing relevant scheme for agro-MSMEs.

The design of NRLM looks far too academic and as top down approach. This is the main reason for the failure of earlier projects like IRDP and SGSY.

Last Updated on : January 20, 2015







     


     

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