Cabinet approves changes in the Implementation Framework of National Rural Livelihood Mission

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has today given its approval for changes in the rural welfare programmes for a focussed and targeted intervention in poverty reduction, expanding the benefits of interest subvention under National Rural Livelihood Mission (NRLM) to 100 more districts and flexibility in allocation to Himayat programme and Deen Dayal Upadhyaya Grameen Kaushal Yojana for skilling and placing more youth from poorer sections. The Cabinet has also approved relaxation in the existing criteria for the allocation of funds to NE States other than Assam to cover all vulnerable rural households by 2023-24. These include:- (A). Changes in the implementation framework of NRLM. (i). Planning for targeted reduction of poverty using The Socio-Economic and Caste Census, SECC database and convergence with other social sector interventions – The use of SECC data would enable the Government to introduce much need focussed and targeted intervention in poverty reduction in rural area programmes The NRLM will use the SECC data to undertake planning for poverty free Panchayats involving Panchayati Raj institutions and Self-Help Group (SHG) of households. (ii). Extending interest subvention in 100 more districts. The interest subvention to all women SHGs to avail loans upto Rs.3 lakh from Banks at the interest rate of 7% per annum and also an additional subvention of 3% for prompt repayment, bringing the effective rate of interest to 4% is being extended to 100 more districts from the current financial year. The criteria for identification of districts is as follows:- (a) All new districts declared as Integrated Action Plan (IAP) districts which were not covered in the earlier list of 150 districts will be included in the list. (b) The remaining districts will be allocated to the States on a pro-rata basis in proportion to the total number of districts in the State/UT. The States will identify the eligible districts from among the IAP districts of NRLM. (c) The States have been granted flexibility to have only a single allocation under NRLM, based on poverty ratio. (iii). Greater thrust on skill development to Deen Dayal Upadhyaya Grameem Koushal Yojana. The Cabinet has approved removal of existing restriction which limits the allocation of DDU-GKY to 25% of NRLM allocation to enable Ministry to expand its focus, inter-alia, to cover training courses of longer duration for placements in foreign jobs, captive jobs, industry internships, training by accredited institutes and champion employers, and re-skilling/up-skilling of rural poor youth, including rural poor youth who have passed out from ITls/Polytechnic Institutes. (iv). Professional Management cost (administrative expenses) for NRLM. (a) The existing ceiling for Professional Management cost (administrative expenses) to be enhanced to 6% of NRLM allocation. (b) Skill development and placement as under Deen Dayal Upadhyaya Grameem Kaushal Yojana to be allowed administrative expenses as part of NRLM. (c) The human resource component under NRLM as per the terms of the project implementation plan and financing agreement with World Bank to be kept outside the purview of the ceiling. (B). Need based financial allocation of Himayat programme of Jammu and Kashmir. The Cabinet has approved the existing cap of Rs.235.30 crore on the total outlay for Himayat may be replaced with a demand-based allocation and target within the overall budget provision of NRLM, and the scheme will be funded entirely by the Central Government. (C). Relaxation in the existing criteria in the allocation of funds for the NE states, other than Assam, to cover all vulnerable rural household by 2023-24. The Cabinet has approved providing relaxation in the existing criteria for allocation of funds to make adequate provision for the NE states, other than Assam, to cover under NRLM all vulnerable rural households in these States estimated at two thirds of all the rural households, by the year 2023-24, without linking the allocation to inter-se poverty ratios