Rural Entrepreneurship Development Programme (REDP) is one of the important NFS promotional programmes supported by NABARD for creating sustainable employment and income opportunities in a cost effective manner for the benefit of educated unemployed rural youth.
Objective
Developing entrepreneurial and activity-oriented skills among unemployed rural youths willing to set up small/ micro-enterprises by assisting Voluntary Agencies (VA)/ Non-Governmental Organisations (NGO)/ Development Agencies (DA)/ RUDSETIs etc. with good track record in conducting REDPs.
Features and Coverage of REDP
REDP comprises 3 distinct phases, viz., pre-training, training and post-training phase. The success of the programme depends on the strict adherence to these phases.
i) Pre-training
Detailed survey for identifying potential business activities/ market, publicity, awareness creation and motivational campaign, Coordination with various agencies - especially banks, Govt. Dept.. Formation of Selection Committee, Project Monitoring Committee, Selection of trainees etc.
ii) Training
The duration of the programme is 6-8 weeks. Training module comprises : Achievement motivation, Opportunity identification and guidance, Knowledge on supporting agencies and schemes, Preparation of project reports/profiles, Management of resources (men, material, money), Marketing aspects, Book-keeping/Accounting. In case of technical/ activity based REDP, inputs on technical aspects/ skill development/appropriate technology will be included. Case-studies on potential activities, field visits, practical work, visit to successful units, etc., to be integral part of training programme.
iii) Post-training
Facilitating credit linkages for setting up units and Escort services to trainees for atleast two years.
Eligible Institutions
NGOs / Voluntary Agencies / Development Agencies and RUDSETI type institutions. NABARD provides promotional assistance to capable agencies with good track record and professional competence to successfully implement REDP.
Recent Initiatives in REDP
With a view to accelerate the process of REDP and to achieve the desired objective at a faster pace, NABARD has initiated the following steps :
Institutionalisation of REDP
In order to have a focussed direction in the implementation of REDP, NABARD has decided to forge long term collaboration with 3 or 4 selected VAs / NGOs in each State.
Technical REDP
With a view to ensure setting up of units as well as their successful management, it has been decided to encourage Technical / activity based REDP. Consequently, select ITIs have also been included as eligible institution for conducting REDP.
Incentive based REDP
To ensure continued follow-up/ monitoring and escort services to the trainees, an incentive scheme has been evolved whereby the REDP implementing agencies will be suitably rewarded with cash incentives based on the number of trainees setting up their own units, preferably with bank loan.
Financial Assistance - Components
NABARD provides promotional assistance to select agencies to meet the recurring expenditure in conducting REDP. Under institutionalisation of REDP, the select institutions are provided with need-based capacity building support and long-term assurance by way of continued financial assistance, for conducting REDP. Some of the major items that are covered under grant assistance include :
- Cost of pre training survey
- Publicity
- Selection of candidates
- Inauguration and valediction
- Rent for training hall
- Reading material for trainees
- Stationery, tool kit
- Stipend in exceptional cases
- Raw material
- Hire charges, electricity charges
- Honorarium for trainer-motivator, guest faculty, coordinator
- Exposure visit of trainees
- Overhead cost
- Expenditure on follow up/escort services.
Progress and Impact
During the year 2006-07, 688 REDPs were sanctioned with a grant support of Rs.5.26 crore covering 20648 educated unemployed rural youths. As on 31 March 2007, a total of 8358 REDPs were supported by NABARD with financial assistance of Rs.39.47 crore covering 2.16 lakh rural youth. |
