National Rural Livelihood Mission (NRLM)

The Gross Domestic Product (GDP) in India has been on a steady rise. However, it is concerning that a significant portion of the rural population continues to live below the poverty line. Various studies indicate that the rate of rural poverty fluctuates at different levels. Despite numerous schemes and subsidies formulated to eliminate rural poverty, it remains a significant challenge for the Indian Government. To address these challenges, the Ministry of Rural Development initiated the National Rural Livelihood Mission (NRLM).

The Mission

The Deendayal Antyodaya Yojana - National Rural Livelihood Mission is a centrally sponsored scheme, jointly funded by the Central and State Governments. However, the onus of its implementation lies with the State Rural Livelihood Missions. A District Mission Management Unit, collaborating with the District Administration, is responsible for planning and execution at the district level. At the block level, the Block Mission Management Unit executes the Mission.

Mission Components

The Mission comprises four essential components:

Social Mobilisation, Community Institution and Capacity Building
Financial Inclusion
Livelihood Promotion
Convergence

The Mission takes a methodical approach by phasing out specific blocks every year, aiming for comprehensive mobilisation of every poor rural household by 2024. The Department of Rural Development within the Government's Ministry of Rural Development oversees the policy formulation, monitoring, and evaluation of the Mission.

Objectives of the Mission

The primary objective of the NRLM is to provide sustainable livelihoods for the rural poor, enabling them to rise out of poverty. The Mission aims to offer:

Access to formal credit
Support for diversification and strengthening of rural livelihoods
Access to public services and entitlements

Key Features of the Mission

The Mission embraces several features and components:

Formation of Self Help Groups at various levels, including villages, to empower rural communities, especially women, by providing voice, space, and resources.
A focus on women SHGs involving bank linkage arrangements.
Conducting participatory social assessments to identify and rank households based on vulnerability, including single women, women-headed families, and the poorest of the poor.
Support for skill development, training, and self-employment through Rural Self Employment Institutes (RSETIs).
Providing training in managing institutions, livelihoods, and financial capacity building.
Provision of a Revolving Fund to enhance SHGs' financial management capacity and build a strong credit history.
Facilitating community investment through the Community Investment Support Fund (CIF) to enable collective socio-economic activities.
Encouraging convergence with various government departments and agencies focused on poverty reduction
Introducing interest subvention on loans availed by SHGs
The Mission adopts a decentralised planning approach, granting states the liberty to develop their own action plans for poverty alleviation.

For further insights into rural innovations and market support, visit the Agricultural Technology Management Agency (ATMA) Scheme.

Funding Mechanism

The NRLM is a centrally sponsored scheme where the financial burden is shared between the Central and State Governments in a 75:25 ratio. However, an enhanced ratio of 90:10 is applicable for specific states, including Tripura, Arunachal Pradesh, Assam, and others. Funds are distributed through the State Rural Livelihood Mission, with a bank account created for fund management. The funds are tracked and monitored through an IT-based system by the Ministry of Rural Development.

Conditions for Fund Release

The State Government discloses its previous year's share
Utilisation of at least 60% of available funds, including the opening balance
Maintenance of an opening balance within 15% of the allocation threshold
Submission of Audit Report and Utilisation Certificate

Services and Beneficiaries

The NRLM aims to support the rural poor, moving beyond financial aid to provide organisational and institutional support, capacity building, and access to institutional credit. This enables the rural population to pursue livelihoods based on their skills and resources. For a comprehensive understanding of how government aid benefits such service-oriented missions, explore the GST exemptions to Food and Agricultural Organisations.

Additionally, for states like Tripura, further details on integrated financial planning and tax implications can be explored through the ITR 2 Form in Tripura.

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Frequently Asked Questions

Common questions about National Rural Livelihood Mission: Empowering India's Rural Poor.

The National Rural Livelihood Mission (NRLM) is a centrally sponsored scheme aimed at providing sustainable livelihoods for the rural poor in India. It is a joint initiative of the Central and State Governments, with the responsibility of implementation lying with the State Rural Livelihood Missions.

The primary objective of the NRLM is to reduce poverty among the rural population by providing them access to formal credit, supporting the diversification and strengthening of their livelihoods, and facilitating access to public services and entitlements.

The NRLM works by promoting the formation of Self Help Groups (SHGs) at the village level, which serve as platforms for the rural poor to voice their concerns and access resources. It also provides capacity building, skills training, and support for self-employment through Rural Self Employment Training Institutes (RSETIs).

The beneficiaries of the NRLM are the rural poor, with a particular focus on vulnerable groups such as single women, women-headed families, landless, disabled, and migrant laborers.

The NRLM is a centrally sponsored scheme, with the funding shared between the Central and State Governments in the ratio of 75:25. For certain North-Eastern and Himalayan states, the ratio is 90:10.

Self Help Groups (SHGs) are the primary institutions through which the NRLM operates. They provide a platform for the rural poor, especially women, to come together, access resources, and pursue livelihood opportunities.

The NRLM promotes financial inclusion by facilitating bank linkages for Women SHGs, providing a Revolving Fund to support SHGs, and offering interest subvention on loans availed by SHGs from banks.

The Community Investment Support Fund (CIF) is a fund provided to SHG Federations in intensive blocks to advance loans or undertake collective socio-economic activities for the benefit of the rural poor.

The NRLM aims to converge with various departments of the government and other agencies dealing with poverty reduction of the rural poor. It also has suitable linkages at the district level with District Rural Development Agencies (DRDAs) and Panchayat Raj Institutions (PRIs).

The NRLM follows a highly decentralized planning method, where the States have the liberty to develop their own action plans for reducing poverty in their respective areas. This allows for tailored approaches to address the specific needs of different regions.