Union Cabinet approves MoU between Rural Development Ministry & FAO

•  The Union Cabinet has approved MoU between Ministry of Rural Development and Food and Agriculture Organisation (FAO) to improve effectiveness of rural development programmes in country.
• The MoU will facilitate South-South cooperation mechanisms around Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)'s experience through exchange visits and dialogues, and establishment of a good-practice Learning Centre.
• It will strengthen the vertical up scaling of the livelihoods of rural populations that are supported by DAY-NRLM, help to develop inclusive and sustainable value chains for key crops and agro-industrial products, employment diversification, skills development, especially for rural youth, strengthening of social protection, risk management mechanisms and enhanced resilience building, especially in arid and disaster risk-prone districts.
• The MoU will also provide for collaboration on activities of common interest to support an integrated approach to rural poverty reduction through activities aimed to promote the economic empowerment of rural women, access of rural poor to natural resources and their sustainable use and social protection.

About Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM):

• Deen Dayal Antyodaya Yojana - National Livelihoods Mission (NRLM) was launched by the Ministry of Rural Development (MoRD), Government of India in June 2011. The Mission aims at creating efficient and effective institutional platforms of the rural poor enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services. The scheme was succeeded by Deen Dayal Antyodaya Yojana on 25 September 2015.
• Under the scheme the rural poor will be targeted through self-managed Self Help Groups (SHGs) and federated institutions will support them for livelihoods collectives in a period of 8-10 years.
• In addition, the poor would be facilitated to achieve increased access to their rights, entitlements and public services, diversified risk and better social indicators of empowerment. NRLM believes in harnessing the innate capabilities of the poor and complements them with capacities (information, knowledge, skills, tools, finance and collectivization) to participate in the growing economy of the country.

Key Features

• Universal Social Mobilisation - At least one woman member from each identified rural poor household, is to be brought under the Self Help Group (SHG) network in a time bound manner. Special emphasis is particularly on vulnerable communities such as manual scavengers, victims of human trafficking, Particularly Vulnerable Tribal Groups (PVTGs), Persons with Disabilities (PwDs) and bonded labour.
• Participatory Identification of Poor (PIP) - The inclusion of the target group under NRLM is determined by a well-defined, transparent and equitable process of participatory identification of poor, at the level of the community.
• Community Funds as Resources in Perpetuity - NRLM provides Revolving Fund (RF) and Community Investment Fund (CIF) as resources in perpetuity to the institutions of the poor, to strengthen their institutional and financial management capacity and build their track record to attract mainstream bank finance.
• Financial Inclusion - NRLM works on both demand and supply sides of financial inclusion. On the demand side, it promotes financial literacy among the poor and provides catalytic capital to the SHGs and their federations. On the supply side, the Mission coordinates with the financial sector and encourages use of Information, Communication & Technology (ICT) based financial technologies, business correspondents and community facilitators like ‘Bank Mitras’. It also works towards universal coverage of rural poor against risk of loss of life, health and assets. Further, it works on remittances, especially in areas where migration is endemic.
• Livelihoods - NRLM focuses on stabilizing and promoting existing livelihood portfolio of the poor through its three pillars – ‘vulnerability reduction’ and ‘livelihoods enhancement’ through deepening/enhancing and expanding existing livelihoods options and tapping new opportunities in farm and non-farm sectors; ‘employment’ - building skills for the job market outside; and ‘enterprises’ - nurturing self-employed and entrepreneurs (for micro-enterprises).

By: Vishal