Lok Sabha Question No. 4705 (UNSTARRED), answered on 2017-03-30
Subject: SHGs under NRLM
Ministry: RURAL DEVELOPMENT
Asked by: OM BIRLA, BHARTRUHARI MAHTAB

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION NO .4705

TO BE ANSWERED ON 30.03 .2017

## SHGS UNDER NRLM

## 4705. SHRI OM BIRLA: SHRI BHARTRUHARI MAHTAB:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) the  criterion/norms  for  allocation  of  funds  under  the  National  Rural  Live Mission (NRLM) in the country;
- (b) whetherthe Government has allocated sufficient funds under NRLM as per the s criterion/norms during each of the last three years and the current year and details thereof and if not, the reasons therefor, State/UT - wise;
- (c) whether  the  Government has  implemented  interest  subvention  scheme  for  Women Self Help Groups (SHGs) associated with NRLM and if so, the details thereof with the number of poor rural women organised into SHGs under NRLM across th country during the said period, State/UT - wis ;
- (d) whether the Union Government proposes to ensure effective functioning of Self Groups (SHGs) under NRLM as many of them become defunct after two or three years and if so, the details thereof;
- (e) whether the Government also proposes any mec hanism to monitor the works done by the SHGs under the said scheme, and if so, the details thereof; and
- (f) whether the Government has taken steps/proposes to take steps to attend every and macro details required for the effective implementation and success of NRLM in a time bound manner without slackening its pace of coverage across the count empower marginalised sections especially women and if so, the details thereof achievements made so far?

## ANSWER MI NISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT ( SHRI RAM KRIPAL YADAV )

- ( a) : The criteria adopted for allocation of funds to States under the Deendayal An Yojana- National Rural Livelihoods Mission  (DAY - NRLM),  earlier  names  as  Natinal Rural Livelihoods Mission,  is as under: -
- ( b) : A statement indicating State/UT - wise allocation of funds under DAY -NRLM during the years 2013 - 14, 2014 -15, 2015 - 16 and 2016 - 17 is enclosed as Annexure - I. The funds w ere  allocated  keeping  in  view  the  availability  of  funds  and  the  criteria  ad allocation of funds.
- ( c) : Under DAY -NRLM, Interest Subvention is given in the following forms: -

|   Sl.No. | Year    | Criteria adopted for allocation of funds to States                                         | Name of States where applicable                                                                                                                                                                                       |
|----------|---------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | 2013-14 | Inter-se poverty ratio among all states as determined by the erstwhile Planning Commission | All States except Jammu & Kashmir. A special package was approved for J&K to enable coverage of 2/3 rd of their vulnerable rural households and the 2 nd Instalment during the year was released based on the special |

|    |                   |                                                                                                                                                                  | package.                                                                                                                                                                                                                                                                                                                                                                                   |
|----|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  2 | 2014-15           | a) Inter-se poverty ratio among all states as determined by the erstwhile Planning Commission. b) On demand basis to enable coverage of 2/3 of rural households. | a) All States except Jammu &Kashmir. b) Jammu &Kashmir                                                                                                                                                                                                                                                                                                                                     |
|  3 | 2015-16 & 2016-17 | a) Inter-se poverty ratio among all states as determined by the erstwhile Planning Commission. b) On demand basis to enable coverage of 2/3 of rural households  | a) All States except Jammu & Kashmir, and North Eastern (NE) States. A special package was approved for the NE states other than Assam, to enable coverage of 2/3 rd of their vulnerable rural households and additional funds were released during the year based on the special package. b) Jammu & Kashmir, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, &Tripura. |

Interest subvention : - Interest subvention is provided to women SHGs to cover the differe between the bank's lending rate of  interest and 7%, on credit availed by the SHGs from the banks for a maximum of Rs 3, 00,000 per SHG. This will be available across the coun two ways:

## Category I:

- i . Applicable to category I districts - 250 most backward districts.
- ii . All women SHGs can avail loans upto Rs 3 lakhs at 7 percent interest per an
- iii . All women SHGs will also be eligible to an additional interest subvention on prompt repayment, reducing the effective rate to 4%.

## Category II:

In  the  remaining  districts,  on  prompt  repayment,  all  women  SHGs  under  NRLM  will eligible for interest subvention to the extent of the difference between the Banks' lending rate and 7 % on loans upto Rs. 3 lakh.

A statement each indicating number of accounts and amount of  interest subvention a under Category -I and Category -II is enclosed as Annexure - II & Annexure - III respectively.

- (d) : DAY - NRLM  is  a  Centrally  Sponsored  Scheme.  As  per  DAY - NRLM  framework, each  SHG  needs  to  follow  'Panchsutra'  viz.  regular  meetings,  regular  savings,  regular lending, regular repayment and regular record keeping, which has to be ensured by t Missions promoted  by  State  Government  through  effective  monitoring,  which  ensur effective functioning of Self Help Groups (SHGs) promoted under DAY -NRLM.
- (e) : The State Government implements  the Mission activities and also monitors the done by the SHGs re gularly. The Ministry of Rural Development has rolled out an effec monitoring mechanism of SHGs functions through a Management Information System (MIS) of SHGs which records all the transactions of the SHGs crucial for the implementa DAY - NRLM.  S tates  have  been  requested  to  implement  the  transaction  based  sys effectively. As of now,16 out of 29 States have initiated rolling out of the trans monitoring system. In addition, the progress in all key parameters is monitored th on- line system of Monthly Progress Report.
- (f) : DAY - NRLM  works  in  a  mission  mode  taking  care  of  effective  planning  an implementation  processes  as  prescribed  under  standard  protocols  issued  by  DAY -NRLM. This mission also uses differential strategies for soc ial inclusion of all identified rural po households into functionally effective and self - managed institutions, with particular focus on more  vulnerable  section.  DAY - NRLM  focuses  on  stabilizing  and  promoting  existing livelihood  portfolio  of  the  poor  by  wa y  of  'vulnerability  reduction'  and  'livelihoods enhancement' through deepening/enhancing and expanding existing livelihoods options and tapping  new  opportunities  in  farm  and  non - farm  sectors.  To  this  end  Mahila  Kisan Sashaktikaran Pariyojana (MKSP) and Sta rt - up Village Entrepreneurship Programme (SVEP) have been initiated. In addition, dedicated funds under World Bank  supported Nation Livelihood Project (NRLP) have been allocated for livelihood projects, financial projects and convergence projects.  Thus, under DAY - NRLM adequate steps and processes have been taken to cater to macro and micro details required for effective implemen the programme .

*****

## Allocation of funds under DAY - NRLM

(Rs. in lakh)

| Sl. No.   | Name of the State/UT   | *2013-14   | *2014-15   | *2015-16   | 2016-17   |
|-----------|------------------------|------------|------------|------------|-----------|
| 1         | Andhra Pradesh         | 23466.00   | 20301      | 2680.53    | 1185.81   |
| 2         | Telangana              |            |            | 1915.71    | 847.01    |
| 2         | Bihar                  | 19616      | 10142      | 5690.71    | 4835.89   |
| 3         | Chattisgarh            | 4405       | 2208       | 1265.58    | 1074.08   |
| 4         | Goa                    | 31.00      | 168        | 153.75     | 150.00    |
| 5         | Gujarat                | 3201       | 1652       | 916.37     | 765.19    |
| 6         | Haryana                | 2028       | 1009       | 546.41     | 450.18    |
| 7         | Himachal Pradesh       | 966        | 466        | 231.68     | 189.59    |
| 8         | Jammu &Kashmir         | 1014       | 4871       | 2031.38    | 2500.00   |
| 9         | Jharkhand              | 7423       | 3692       | 2143.55    | 1823.41   |
| 10        | Karnataka              | 9489       | 5606       | 2191.83    | 1535.07   |
| 11        | Kerala                 | 4537       | 2396       | 977.90     | 688.78    |
| 12        | Madhya Pradesh         | 9305       | 4719       | 2709.81    | 2300.98   |
| 13        | Maharashtra            | 12866      | 6732       | 3651.46    | 3034.46   |
| 14        | Odisha                 | 10655      | 5730       | 2854.41    | 2325.13   |
| 15        | Punjab                 | 1020       | 484        | 262.72     | 218.78    |
| 16        | Rajasthan              | 5276       | 2754       | 1417.07    | 1165.63   |
| 17        | Tamil Nadu             | 11679      | 7329       | 2602.08    | 1797.46   |
| 18        | Uttar Pradesh          | 28747      | 14223      | 8261.14    | 6962.06   |
| 19        | Uttarankhand           | 1634       | 772        | 434.61     | 366.56    |
| 20        | West Bengal            | 11558      | 7028       | 3221.30    | 2583.93   |
| 21        | A&N Islands            | 32.35      | 57.35      | 50.00      | 25.00     |
| 22        | Daman &Diu             |            | 25         | 50.00      | 25.00     |
| 23        | D &NHaveli             |            | 25         | 50.00      | 25.00     |
| 24        | Lakshadweep            | 0.65       | 25.65      | 50.00      | 25.00     |
| 25        | Pondicherry            | 200.00     | 325        | 475.00     | 250.00    |
|           | Total (Non NE)         | 169149     | 102740     | 46835.00   | 37150.00  |
|           | NORTH EASTERN STATES   |            |            |            |           |
| 1         | Arunachal Pradesh      | 793        | 226        | 161.82     | 600.00    |
| 2         | Assam                  | 18897      | 7103       | 4588.89    | 7000.00   |
| 3         | Manipur                | 1328       | 467        | 285.71     | 800.00    |
| 4         | Meghalaya              | 1462       | 467        | 319.00     | 400.00    |
| 5         | Mizoram                | 472        | 207        | 74.75      | 1600.00   |
| 6         | Nagaland               | 1046       | 318        | 221.66     | 2400.00   |
| 7         | Sikkim                 | 459        | 146        | 82.43      | 600.00    |
| 8         | Tripura                | 2643       | 866        | 535.74     | 2700.00   |
|           | Total (NE)             | 27100      | 9800       | 6270.00    | 16100.00  |
|           | Grand Total            | 196249     | 112540     | 53105.00   | 53250.00  |

Annexure - II referred in reply to  part ( c) of the Lok Sabha Unstarred Question No. 4705 for answer on 30- 03- 2017

## Interest Subvention in Category 1 Districts

(Rs. in lakh)

| Sl No   | State Name        | 2013-14         | 2013-14    | 2014-15         | 2014-15    | 2015-16         | 2015-16    |
|---------|-------------------|-----------------|------------|-----------------|------------|-----------------|------------|
| Sl No   | State Name        | No. of Accounts | I.S Amount | No. of Accounts | I.S Amount | No. of Accounts | I.S Amount |
| 1       | Andhra Pradesh    | 712271          | 30994.7    | 279809          | 35300.44   | 176660          | 14859.41   |
| 2       | Arunachal Pradesh | 43              | 1.1        | 95              | 3.99       | 74              | 2.98       |
| 3       | Assam             | 991             | 27.57      | 1630            | 38.33      | 2488            | 49.63      |
| 4       | Bihar             | 7442            | 198.96     | 9372            | 273.25     | 11727           | 391.8      |
| 5       | Chhatisgarh       | 1363            | 95.73      | 2394            | 217.36     | 3411            | 105.67     |
| 6       | Goa               | 463             | 28.03      | 659             | 40.6       | 591             | 36.3       |
| 7       | Gujarat           | 1912            | 66.4       | 1938            | 75.28      | 1410            | 29.82      |
| 8       | Haryana           | 66              | 42.26      | 270             | 31.97      | 434             | 8.18       |
| 9       | Himachal Pradesh  | 665             | 42.83      | 838             | 44.02      | 1026            | 47.86      |
| 10      | Jammu And Kashmir | 1238            | 25.33      | 2132            | 31.98      | 2996            | 50.08      |
| 11      | Jharkhand         | 2232            | 59.06      | 2961            | 104.42     | 3851            | 100.1      |
| 12      | Karnataka         | 24005           | 1855.77    | 93845           | 3167.29    | 107859          | 4308.3     |
| 13      | Kerala            | 6728            | 328.74     | 15132           | 506.28     | 22249           | 2135.2     |
| 14      | Madhya Pradesh    | 1299            | 25.25      | 3240            | 52.13      | 4491            | 163.78     |
| 15      | Maharashtra       | 5804            | 245.39     | 6167            | 237.16     | 7644            | 260.7      |
| 16      | Manipur           | 25              | 0.31       | 0               | 0          | 0               | 0          |
| 17      | Meghalaya         |                 |            |                 |            | 0               | 0          |
| 18      | Mizoram           | 11              | 0.72       | 8               | 0.47       | 5               | 0.33       |
| 19      | Nagaland          | 21              | 0.39       | 19              | 0.48       | 11              | 0.33       |
| 20      | Odisha            | 33646           | 960.16     | 28371           | 2500.94    | 27679           | 1253.66    |
| 21      | Puducherry        |                 |            |                 |            | 0               | 0          |
| 22      | Punjab            | 80              | 2.84       | 68              | 1.95       | 46              | 1.44       |
| 23      | Rajasthan         | 1711            | 67.94      | 1354            | 73.41      | 922             | 69.16      |
| 24      | Sikkim            | 18              | 0.93       | 67              | 1.87       | 104             | 3.12       |
| 25      | Tamil Nadu        | 25617           | 2038.86    | 26619           | 2111.66    | 26788           | 2284.95    |
| 26      | Telangana         |                 |            |                 |            | 135860          | 13382.84   |
| 27      | Tripura           | 218             | 5.06       | 247             | 4.65       | 240             | 4.07       |
| 28      | Uttar Pradesh     | 688             | 43.53      | 802             | 27.55      | 970             | 27.25      |
| 29      | Uttarakhand       | 96              | 2.45       | 122             | 5.86       | 130             | 2.09       |
| 30      | West Bengal       | 15167           | 984.08     | 22670           | 1432.68    | 28638           | 831.5      |
|         | Total             | 843820          | 38144.38   | 500829          | 46286.02   | 568304          | 40410.58   |

Annexure - III referred in reply to part ( c) of the Lok Sabha Unstarred Question No. 4705 for answer on 30- 03- 2017.

Disbursal of Interest Subvention to SHGs - Category II

|        |                   | Category - II districts (From 2013-14,to 15-16)   | Category - II districts (From 2013-14,to 15-16)   |
|--------|-------------------|---------------------------------------------------|---------------------------------------------------|
| Sl. No | State Name        | No. of Accounts                                   | I.S. Amount (in Lakhs)                            |
| 1      | ANDHRA PRADESH    | 592355                                            | 17803.00                                          |
| 2      | ASSAM             | 1788                                              | 15.09                                             |
| 3      | BIHAR             | 4077                                              | 22.30                                             |
| 4      | CHHATISGARH       | 5055                                              | 86.79                                             |
| 5      | GUJARAT           | 583                                               | 5.52                                              |
| 6      | HARYANA           | 55                                                | 0.60                                              |
| 7      | HIMACHAL PRADESH  | 609                                               | 26.88                                             |
| 8      | JHARKHAND         | 444                                               | 5.82                                              |
| 9      | Jammu and Kashmir | 500                                               | 2.90                                              |
| 10     | KARNATAKA         | 342403                                            | 4437.69                                           |
| 11     | KERALA            | 51234                                             | 985.64                                            |
| 12     | MADHYA PRADESH    | 5153                                              | 16.96                                             |
| 13     | MAHARASHTRA       | 3245                                              | 49.26                                             |
| 14     | ODISHA            | 113436                                            | 1412.24                                           |
| 15     | TAMIL NADU        | 111910                                            | 2456.00                                           |
| 16     | TELANGANA         | 337421                                            | 10709.00                                          |
| 17     | UTTAR PRADESH     | 181                                               | 2.73                                              |
| 18     | WEST BENGAL       | 40309                                             | 284.74                                            |