Lok Sabha Question No. 69 (STARRED), answered on 2015-12-03
Subject: National Rural Livelihood Mission
Ministry: RURAL DEVELOPMENT
Asked by: PRAHLAD SINGH PATEL

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

## LOK SABHA

## STARRED QUESTION NO. 69 TO BE ANSWERED ON 03 . 12.2015

## NATIONAL RURAL LIVELIHOOD MISSION

## *69 . SHRI PRAHLAD SINGH PATEL:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether  the  Government  seeks/  proposes  to  seek  consultancy  services  from experienced  firms  for  management  support  for  implementing  the  National  Rural Livelihood Mission (NRLM) in the country;
- (b) ifso, the details thereof along with proposed consultancy fee as well as the c for selecting the Consultancy firm for the purpose;
- (c) whether the Government has come across any irregularities in the implementation NRLM and if so, the reaction of the Government thereto; and
- (d) the estimated number of households whose income has been increased as a result NRLM in the country, State/UT - wise?

## ANSWER MINISTER OF RURAL DEVELOPMENT (SHRI BIRENDER SINGH)

(a)to(d): A statement is laid on the Table of the House.

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## Statement referred in reply to parts (a) to (d) of the Lok Sabha Starred Question No. 69 for answer on 03.12.2015

(a)and (b): The  Ministry  of  Rural  Development  launched  National  Rural  Livelihoods Mission  (NRLM)  in  June,  2011 .  NRLM  laid  emphasis  on  promotion  of  professionally competent and dedicated implementation structures at the national, state, district a -district  level  for  managing  and  supporting  mission  activities.  For  this  purpose  a Mission Management Uni t (NMMU) was constituted at the central level. Subsequently, the Ministry decided to engage the services of an agency for providing management support NRLM,  Ministry  of  Rural  Development,  under  the  World  Bank  aided  National  Rural Livelihood  Project  (NRL P).  As  per  the  terms  of  reference,  the  management  agency  was required to provide thematic support services for ideas incubation, framing of policy and  formulating  implementation  strategies  for  core  programme  implementation  at  bo national  and  stat e  level  on  key  thematic  areas  such  as  social  inclusion  and  communit mobilization;  institution  building;  financial  inclusion;  agriculture,  livestock  and - farm livelihoods;  jobs  placement  and  market  linked  skill  development;  self - employment  and micro - ent erprise  development;  etc.  The  manpower  was  expected  to  provide  the  followin services for supporting implementation of NRLM: -

- Thematic Support;
- Technical Assistance;
- Programme Management;
- Skill, Placement and Self Employment; and
- Convergence  between  NRLM and  Mahatma  Gandhi  National  Rural  Employment Guarantee Act (MGNREGA).

Based  upon  the  Quality  and  Cost  Based  Selection  Method  (QCBS),  M/s.  DD International & N.R. Management Consultants  India Pvt Ltd., in association with Strateg Alliance  Management  Service  P  Ltd.were  awarded  the  contract.    M/s.  N.R.  Management Consultant India Pvt. Ltd. had indicated that they would sign the contract as they w Indiansubsidiary of DD International (This was indicated in their Expression of Intere Technical Bid submissions).The contract was signed by the Ministry of Rural Developme and  M/s.  N.R.  Management  Consultants  India  Pvt  Ltd.,  the  managing  agency,  on  21s September, 2012 effective from 1 st October, 2012.

As per the contract, the managing agency has been allowed 6% of the remuneratio paid  to  the  consultants  as  their  charges  plus  service  tax  and  other  applicable  tax adjustment of 5% will be appl ied after 12 months of contract period. In addition, they a reimbursed all other expenses on actual basis.

In the contract, i t was inter alia provided that t he time period shall be one year, though the total duration of the management support assignment will be for threeyears. Depending on the annual performance review of the consultant and available budget, the contract would be  extended  further  on  a  12  monthly  basis,  up  to  a  period  of  thre e  years,  with  mutual agreement. In  the  meanwhile, in July 2013 National Rural Livelihoods Promotion Society (NRLPS) has been set up under the Ministry of Rural Development, to provide professio and technical support to the National and State Missions. Accordingly, it was decided that further  extensions  of  contract would  be  done  by  this  society. Subsequently,  with  mutual consent, the period of contract was further extended and will expire on 31 st December, 2015.

NRLPS  has  already  initiated  the  process  to  engage  the  services  of  an  experien consulting firm to provi de management support services. The scope of work of the consulting firm would include recruitment of professional staff, support staff, management of p and providing back - office support. The consulting fee will be determined through a biddi proce ss.  The  consulting  firm  will  be  selected  based  on  Quality  and  Cost  Based  selec method with 75% weightage to quality and 25% weightage to cost.

(c): Since NRLM is a centrally sponsored scheme, the responsibility of implementati rests  with  State  Gove rnm nt/  State  level  agencies.  Any  complaint  received  regarding  th implementation of the programme is forwarded to the concerned State Government / Sta level agency for appropriate action.

(d): NRLM  was  launched  only  on  3 rd June  2011.  Simultaneously,  Sw arnjayantiGram SwarozgarYojana  (SGSY)  was  also  under  implementation  till  31 st March,  2013.  From  1 st April, 2013, SGSY ceased to exist and NRLM was completely under operation. Since, this a process intensive programme and the programme has been fully in operation only from 1.4.2013, it is too early to make a formal assessment of income generation on account programme.