Rural Entrepreneurship Development Programme (REDP)
NABARD's support to RUDSETI type Institutions sponsored by Commercial banks and RRBs.
The Rural Entrepreneurship Development Programmes (REDPs) are being supported by NABARD since the early 1990's, for enabling rural youth to take up self employment ventures leading to generation of employment and income in rural areas. Over the years, NABARD has assisted about 400 NGOs and as many as 18 RUDSETI/ RUDSETI type Institutions in imparting training to over 2 lakh youth.
2.
Effective from 1 April 2007, the assistance from NABARD for the RUDSETIs will be on the lines indicated below :
A.
Capital Expenditure
2.1
Capital expenditure for purchase of land, construction of civil structures, buildings, furniture, etc. for the Training Institute and hostel should be met by the Institute itself, either from its own resources or from the resources made available by the sponsoring bank, State Government etc. NABARD will not provide financial assistance for acquiring such assets.
2.2
Grant assistance would be provided for purchase of essential training related equipments such as Computers, Accessories, Laptop, Overhead projector, LCD/ Multimedia Projector, Screen, White Board Marker, other Audio-visual Aids etc. subject to optimal use of such equipments in dispensation of the training programmes. One time grant assistance shall be provided upto a maximum of Rs.10 lakh (Rupees Ten Lakh Only) or 50 per cent of such expenses, whichever is less, to the new institutes proposed to be set up. As regards the existing institutes which have not availed of such assistance earlier from NABARD, and now propose to acquire such assets anew, the maximum one time grant will be Rs.5 lakh (Rupees Five Lakh Only) or 50% of incurred expenses, whichever is less.
B.
Recurring Expenditure
2.3
NABARD would provide grant support to the RUDSETIs to meet the recurring expenditure on the following items directly related to training :
Inauguration and valediction
Expenses on Boarding & Lodging of the trainees
Raw material for practical/ on the job training
Stationery/ Course material
Salary for trainers/ Faculty Members
Honorarium to Guest Faculty
Rent for Class Room/ Hostel (Only if rented on commercial lines from other than the sponsors)
Expenses for field visits in respect of such of the programmes.
Monitoring and follow-up.
2.4
Rent for premises owned by the sponsoring Institution, depreciation, repairs to property, insurance of the premises, interest on borrowing, registration/ membership charges, audit fee and such other items which are not directly related to capacity building of trainees and training, will not be eligible for financial support from NABARD.
2.5
The training programmes like PMRY, SHG, EDP on agro-processing, etc. sponsored/ supported by any other Agency such as the Ministries/ Depts. of the Central/ State Governments, etc. will not be eligible for NABARDs' support as adequate budget/ funds are provided by these sponsoring agencies. As such, only those programmes on REDPs/Skill Development Programmes relating to the Non-Farm Sector and Farm Sector, not being supported by other Agencies, shall be considered for grant assistance from NABARD.
2.6
The amount of NABARD's grant support for the recurring expenses on eligible items/ eligible training programmes as above, shall be in proportion to the number of sponsors of the RUDSETIs. For example, if the Institute is sponsored by only one bank, either a Commercial Bank or RRB, NABARD's support shall be limited to 50% of the expenditure, and if sponsored by two banks, the support shall be one third of expenses, and so on.
3.
Submission of Proposal
3.1
In order to avail of financial support, the Institution shall prepare the annual training budget and training calendar, indicating the details of unit-wise/ centre-wise trainings proposed to be conducted, number of trainees to be covered, and the cost estimates thereof, clearly indicating the expected contribution from NABARD/ sponsors/ others, etc. The Training Budget/ Calendar, after approval by the Governing Council/ Governing Body of the Institute, may be submitted in the month of April every year to the respective Regional Offices of NABARD where the Institute's Head Office is located. [For example, RUDSETI, Ujire, Karnataka, having 20 units (13 in Karnataka and 7 in other States) may submit its proposal to NABARD, Karnataka RO, Bangalore.] The exact amount of assistance sought from NABARD may be calculated, taking into account the guidelines given in Para 2 above and clearly indicated in the proposal.
3.2
The RO of NABARD shall examine the proposal and forward the same along with its specific recommendations, to NABARD Head Office. Once the proposal is sanctioned by HO, the grant assistance will be released by the RO on quarterly basis on receipt of claims from the units/ centres of the Institute located in the State. (For example, RUDSETI, Ujire shall submit claims in respect of 13 units in Karnataka to NABARD RO at Bangalore and in respect of units in other States, to the respective ROs of NABARD.)
4.
This scheme will be in operation for a period of 3 years, effective from 1 April 2007, and NABARD will decide on its continuance or otherwise on the basis of an Evaluation Study.
