i.Generation of Rural Employment and Sustainable Livelihood through Cattle Development Centers in Uttar Pradesh and Bihar : NABARD, BAIF and Govt of India collaboration
Ministry of Rural Development (MORD),GOI has sanctioned a project for setting up of 100 Cattle Development Centers (CDC) each in Bihar & UP state. Eighteen districts in UP and thirteen in Bihar are covered under the project. BAIF, Pune is the project implementing agency. The Total cost of the project is Rs. 13.61 Crores for each state to be expended over 5 years.
MORD has designated NABARD as the 'facilitator' of the project for fund channelising and monitoring. The project has commenced from the year 2004-05.
It is envisaged under the project that each CDC will take care of area having 1500-2000 breedable cattle population spread over 10-15 villages. Production of improved cattle out of local non descript low productive animals and generation of income through production and marketing of milk are to be taken up by setting up of CDCs.
The project envisages formation of Dairy Farmers Association (DFA) comprising of the dairy farmers which would be instrumental in implementation of the CDC. CDC provides services such as Artificial Insemination, Pregnancy diagnosis, deworming, mineral supplement and technical inputs on management.
ii. PILOT PROJECT FOR INTEGRATED DEVELOPMENT OF BACKWARD BLOCKS (PPID)
The objective of the PPID is comprehensive development of the selected backward blocks in an integrated manner which would include economic development, infrastructure development and other aspects of human development i.e., education, health, drinking water supply, etc. This necessitates the involvement of all agencies working at grassroot level viz state Government agencies (including Panchayats), banks, NGOs, people’s organisations and other development agencies.
Under the project it is envisaged to facilitate convergence of all major schemes/ support in the identified block . Such support measures include :
- Watershed Development
- NFS programmes
- Micro finance
- Farmers' groups under VVV
- Infrastructure development under RIDF
- Capacity building of banks, Government Departments, NGOs and community based organizations
- Coordination with Government Departments for social development, i.e. education, health, women and child development, etc.
- Implementation of development programmes of the State Government.
NABARD launched PPID in 10 blocks across 5 states during the year 2003-04. The Project has now been extended to 40 additional blocks taking the total coverage of blocks to 50 from 10 states. The identified states are Gujarat, Maharashtra, Uttaranchal, West Bengal, Chattisgarh, Karnataka ,Andhra Pradesh, Tamilnadu , Jharkhand and Orissa..
iii. Special Project under Swaranjayanti Gram Swarojgar Yojna (SGSY) on Livelihood Based Development in Sultanpur District, Uttar Pradesh
Govt of India , Ministry of Rural Development has sanctioned a Special Project under Swarnjayanti Gram Swarozgar Yojana (SGSY) on Livelihood Based Development for 11,500 BPL families in Sultanpur district, Uttar Pradesh. The total approved cost of the project is Rs.1497.36 lakh (Rs.Fourteen crore ninety seven lakh and thirty six thousand only). The project consists of two sub - projects viz i) Demand driven Skill development through Livelihood Advancement Business School (LABS). (ii) Multi activity approach for Poverty Alleviation in clusters of villages through BAIF.
The Sub-project on Livelihood Advancement Business School (LABS) implemented by Dr Reddy's Foundation involves an extensive labour market scan to research the sustainable livelihood generating short-term interventions that can be undertaken in the district. LABS will train the youths in skills needed in the local economy. Individual youth Development Plan is worked out during the training to assess the individual needs and gaps in each person, so that he is completely moulded and rendered employable at the end of 3-4 months.
- The budget approved by Govt of India under the LABS project is Rs 307.50 lakh.
The Sub project on Multi activity approach for Poverty Alleviation envisages cluster based poverty allievation approach by taking multiactivity interventions covering 4000 Below Poverty Line (BPL) families in two clusters comprising of about 12-15 villages in Amethi tehsil of Sultanpur district. The project period is five years.
Objectives set out in the project are
a) Awareness building about the scope for drudgery reduction and improvement in quality of life through intensive training and follow up.
b) Improvement of livelihood opportunities for families living below the poverty line.
c) Building the capacities of the families for sustainable livelihood opportunities.
d) Developing People’s Organisations.
The project is being implemented in two clusters of Bhadar & Sangrampur blocks of Amethi Tehsil in Sultanpur district of U.P. The total cost of the project is Rs 1189.86 lakh spread over a period of 5 years.
Based on the natural resources available with the farmer, the activities are classified into three core components:
(a) Land based activities,
(b) Live stock based activities and
(c)Rural Non-Farm Sector.
The project is implemented by BAIF through its associate organization, BAIF Institute of Rural Development (BIRD,UP).The People’s Organisation formed during the implementation of the project will play a significant role in the entire programme implementation.
NABARD is involved in operationalising the project, channelising the funds received from MoRD, GoI to the Project Implementing Agencies for implementation of the project, and undertake regular monitoring of the programme implementation at State and District level.
iv. Scheme for setting up of Agriclinic and Agribusiness centers
With the diversification and modernisation of agricultural practices, there is a need to augment support and extension services for agriculture. For this purpose, a scheme for setting up agriclinics and agribusiness centres by agriculture graduates has been launched by GoI with the support of NABARD. These centres will provide a package of input facilities, consultancy and other services. They will strengthen transfer of technology and extension services and also provide self employment opportunities to technically trained persons. MANAGE is the nodal agency for imparting training under the scheme. List of trained graduates is sent to various banks in the region for financial assistance. As on 31.08.2006 , 10856 agri graduates have received training and 3386 ACABC units have been set up across the country,of which 2123 units have been set up with financial assistance from banks .
Initiatives taken for promotion of the Scheme
RBI has classified loans to agri-clinics and agribusiness centres as direct agricultural loans, even though input supply is normally classified as indirect loans to agriculture.
Margin money/collateral requirement has been waived for loans upto Rs.5 lakh..
Refinance support under ARF is being allowed. Shortfall in margin money/down payment by the borrower can be supported out of ‘ soft loan margin money assistance fund’ of NABARD subject to a maximum of 50% of margin prescribed by banks. Such soft loan assistance for margin money from NABARD to banks would be without interest, but the banks may levy service charge which is 2% p.a.
Soft loan assistance for margin money may be availed irrespective of availment of refinance from NABARD.
Rate of interest on refinance from NABARD has been fixed at 5.5% irrespective of the size of the loan.
Six months' expenses for setting up of units is allowed to be capitalised and included in the project cost.
District level task force has since been constituted for selection of projects and recommending the same for bank loan assistance. Lead District Manager, DDM, NABARD, representative from the nodal training institution and other leading bankers are members of the district level task force.
A target of financing at least 10 units of Agriclinics & Agribusiness Centres. in each district has been set. Concerted efforts have been initiated to increase the credit flow for the activity.
Regular monitoring of the scheme is done in the state & district level co-ordination committees.
Nodal officers have been identified at the NABARD RO level to monitor effective implementation of the scheme.
NABARD has been providing faculty support to nodal institutions wherever required, and DDMs have been asked to actively associate in proper implementation of the scheme.
Nine activities have been made eligible by Ministry of SSI ,GOI for coverage under the Credit Guarantee Fund Scheme for small industries.
v.Crop Insurance
In pursuance of the announcement made in the Union Budget, 2002-03 for setting-up of an Agriculture Insurance Corporation for farmers, a new Company, viz., Agriculture Insurance Company of India Ltd. (AICI) was established in 2002 with the authorised and paid up capital of Rs.1,500 crore and Rs.200 crore, respectively. NABARD and General Insurance Company (GIC) have contributed 30 and 35 per cent, respectively, and four other Insurance Subsidiaries, at 8.75 per cent each to the equity. One of the objectives for the formation of AICI was to act as the implementing agency for the Government's 'National Agriculture Insurance Scheme' (NAIS). The company has obtained Certificate of Registration from Insurance Regulatory and Development Authority (IRDA). The Pilot Scheme on Seed Crop Insurance that was implemented through GIC has also been transferred to AICI.
NAIS is in operation since rabi 1999-2000 and is being implemented by 23 states and 2 UTs. So far, 624.37 lakh farmers have been covered under the scheme.NAIS has replaced the Comprehensive Crop Insurance Scheme (CCIS), which was in operation in the country since 1985. The main objective of the NAIS is to protect the farmers against losses suffered by them due to crop failure on account of natural calamities, such as, drought, flood, hailstorm, cyclone, fire, pest / diseases, etc., so as to restore their credit worthiness for the ensuing season.
The salient features of NAIS are as follows:
The premium rates in respect of food crops and oilseeds are determined on the basis of flat rates of premium or actuarial rates whichever is less as per the scheme in accordance with the decision of GoI. The rates are ranging from 1.5 -3.5% of sum insured, under both kharif and rabi crops.
In respect of annual commercial / horticulture crops, the premium rates are charged on actuarial basis.
The actuarial premium rates are worked out on the basis of yield of the past ten years as per the data provided by the State Government concerned. The variation is high due to high variation in the yield during the specified period i.e. ten years. The premium rates, for example, are high in the case of groundnut and cotton (risky crops) because of high variation in yield whereas in case of sugarcane and wheat, the rates are comparatively low since these are stable crops.
The scheme stipulates transition of premium rates from flat to actuarial in case of cereals, millets, pulses and oilseeds in a period of five years and till such periods, claims beyond 100% of premium are borne by the Government.
In the case of annual commercial / horticulture crops, the implementing agency is to bear all normal losses i.e. claims up to 150% of premium in the first three years and 200% of premium thereafter subject to satisfactory claim experience.
The small and marginal farmers are entitled to a subsidy of 50% of the premium charged.
The scheme provides for compulsory coverage in respect of loanee farmers whereas non-loanee farmers may opt for insurance cover on voluntary basis.
Apart from implementing NAIS, the AICI has introduced Varsha Bima in a few districts. The basic objectives of Varsha Bima are to guarantee financial compensation to the insured in the event of rainfall adversity, to facilitate ready flow of financial liquidity in rural sector through expeditious claim settlements in adverse years, to enhance confidence level of the insured by insulating him against weather risks and to help stabilise farm income particularly in disaster years.
At the State level, NABARD is a member of the Steering Committee that decides the area/regions and crops to be covered under crop insurance and other implementation related issues. NABARD representatives also attend various meetings at State and District level to popularize and facilitate grounding of Crop insurance at grassroots level.
The Govt. of India had set up a Working Group to examine various aspects related to Crop Insurance. The Working Group in its report has suggested several refinements to make the insurance product more farmer friendly. The report of the Working Group is under consideration of GOI.
Some of the important changes proposed by Working Group among other things are as follows;
a) Village to be considered as the unit for settlement of insurance claim.
b) Provision of ‘on account’ payment of claims to farmers wherein 50% of likely compensation may be paid in advance subject to adjustment in final payment.
c) Post harvest losses on account of specified peril are also to be covered.
d) Additional coverage for personal accident, dwelling and contents and subsidy on live stock insurance.
Swaranjayanti Gram Swarozgar Yojana (SGSY)
The GoI introduced the Swarnjayanti Gram Swarozgar Yojana (SGSY) in 1999 by restructuring various Self-employment programmes viz. IRDP, TRYSEM, SITRA, DWCRA etc. It envisages formation of SHGs by 'Swarozgaries' and financing them by bank in different stages. It is a holistic scheme covering all aspects of self-employment such as organisation of the poor into Self Help Groups, training, credit, technology, infrastructure and marketing. The Central theme of the scheme is to bring every assisted family above the poverty line by providing them income generating assets through a mix of bank credit and government subsidy. The rural poor such as those with land, landless labour, educated unemployed, rural artisans and disabled are covered under the scheme.The scheme is funded by the centre and the States in the ratio of 75:25 and is being implemented by Commercial Banks, Regional Rural Banks and Co-operative Banks. DRDAs, NGOs, Technical Institutions etc. in the district are involved in the process of planning, implementation and monitoring of the scheme. NGO's assistance is sought in nurturing of SHGs as well as in monitoring the progress of Swarozgaries. Besides providing refinance to banks under the scheme, NABARD is a member of District, State and Central level co-ordination committees constituted to review the implementation of the scheme. NABARD is also a member of the Central Monitoring Committee on SGSY, constituted by Ministry of Rural Development, GoI and convened by RBI to assess the ground level operational problems in implementation of the scheme. Ason 31 March 2006, a total of 22.20 lakh SHGs have been formed of which 2.70 lakh groups have been assisted for taking up economic activities; the total number of swarozgaries assisted stood at 59.83 lakh of which 30.10lakh were SHG members and 29.83 lakh individuals, since its inception.
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