The National Rural Livelihoods Mission (NRLM) is a comprehensive program aimed at reducing poverty by empowering rural communities through self-help groups (SHGs) and various livelihood activities. This article provides an overview of the financial norms and ceilings for economic assistance under NRLM, focusing on the key components of the scheme.
Key Components of Financial Assistance
The NRLM provides financial assistance through several key components:
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Formation of SHGs: Financial support is provided to NGOs, Community-Based Organizations (CBOs), community coordinators, facilitators, and animators to form and develop self-help groups. Each SHG receives Rs. 10,000 for this purpose.
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Revolving Fund (RF): SHGs that have not received RF earlier are eligible for a revolving fund as a corpus, ranging from Rs. 10,000 to Rs. 15,000 per SHG. Only SHGs with more than 70% members from Below Poverty Line (BPL) households are eligible for RF.
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Capital Subsidy (CS): Capital subsidies are provided to members of SHGs and individual beneficiaries, with a ceiling of Rs. 15,000 for the general category and Rs. 20,000 for SC/ST categories. The maximum subsidy for an SHG is Rs. 2.50 lakh. Only BPL members are eligible for individual subsidies, and SHGs with over 70% BPL members are eligible for the subsidy.
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Capacity Building and Skills Training: The scheme allocates Rs. 7,500 per beneficiary for training and capacity building. This component supports training not only for beneficiaries but also for other stakeholders, including program officers, government officials, NGOs, and PRI functionaries. This component also covers expenses for exposure visits and immersion visits.
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Interest Subsidy: NRLM provides interest subsidies for SHG loans with interest rates above 7%. This subsidy is applicable to SHGs with over 70% BPL members, until a member avails a loan up to Rs. 1 lakh. The subsidy is not available when a SHG avails capital subsidy.
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One-time Grant for Federations: One-time grants are provided to support the sustainability and effectiveness of federations:
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Rs. 10,000 for Village/Panchayat level federation.
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Rs. 20,000 for Block-level federation.
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Rs. 100,000 for District-level federation.
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Administrative Expenses: 5% of the allocation, net of skill development and placement and RSETI components, is allocated for administrative expenses at the central and state levels.
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Infrastructure and Marketing: Up to 20% (25% for North Eastern States and Sikkim) of the central and state share is allocated for infrastructure and marketing.
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Skills and Placement Projects and Innovations: 20% of the Central allocation is earmarked for skill and placement projects and innovations. Of this, 5% is for innovative projects, while 15% is for placement-linked skill development. 50% of the allocation for placement-linked projects is retained at the center for multi-state projects, and the remaining is allocated to states to implement state-specific projects.
Key Financial Norms and Ceilings
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Revolving Fund (RF): Rs. 10,000 to Rs. 15,000 per SHG.
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Capital Subsidy (CS): Rs. 15,000 for general category, Rs. 20,000 for SC/ST.
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Training and Capacity Building: Rs. 7,500 per beneficiary.
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Interest Subsidy: Subsidy on interest rate above 7% for SHG loans up to Rs. 1 lakh.
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Administrative Expenses: 5% of allocation, excluding skill development and RSETI components.
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Infrastructure and Marketing: Up to 20% of the central and state share.
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Skills and Placement Projects: 20% of the Central allocation, with 5% for innovations and 15% for skill development.
Implementation and Monitoring
The scheme emphasizes the following:
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Transparency: Open and transparent processes for financial transactions.
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Accountability: Clear guidelines for the use of funds and reporting.
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Monitoring: Regular monitoring of fund utilization and project progress.
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Convergence: Integration with other government schemes to maximize impact.
Conclusion
The financial norms and ceilings under the National Rural Livelihoods Mission (NRLM) are designed to provide targeted and effective support to rural communities. By focusing on self-help groups, skill development, and infrastructure improvements, the scheme aims to empower the poor and enhance their livelihoods. The emphasis on transparency and accountability ensures that funds are utilized effectively and that the benefits reach the intended beneficiaries.