The project, assisted by Commission of European Community (CEC) and commenced in 1996-97, aimed at achieving sustainable development of selected small and marginal farmers and landless families by promoting income generating activities by adoption of simple but appropriate technologies. The major activities covered were orchard development, cattle development, sericulture and suitable off-farms activities. The project is being implemented through BAIF, Pune in 217 villages of 11 districts spread over 5 States i.e. Gujarat, Karnataka, Maharashtra, Rajasthan and Uttar Pradesh. It benefited 33,000 families living below poverty line including those belonging to Scheduled Caste and Scheduled Tribes.

The project cost was European Currency Unit (ECU) 20.5 million, of which CEC has agreed to provide ECU 19.5 million (approximately Rs. 741 million) as grant. About 34,660 families were already enrolled under the project up to 31 March 2003, thus exceeding the original target of 33,000 families. The project was operative till 2004-05. As on 31 March 2003, NABARD had disbursed Rs. 595.64 million against the receipt of Rs.600.08 million from CEC.