Centre today approved changes in some key rural development programmes on poverty reduction and employment creation by increasing flexibility in fund allocation and expanding benefits of interest subvention to 100 more districts under National Rural Livelihood Mission.
The changes are expected to achieve a focussed and targeted intervention in poverty reduction.
The Union Cabinet chaired by Prime Minister Narendra Modi today gave its nod for expanding benefits of interest subvention under NRLM to 100 more districts and flexibility in fund 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 North Eastern states other than Assam to cover all vulnerable rural households by 2023-24.
Changes in the implementation framework of NRLM include 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, a government release said.
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.
Another significant change was extending interest subvention in 100 more districts.
The interest subvention to all women Self Help Groups to avail loans up to Rs three lakh from banks at the interest rate of 7 per annum and also an additional subvention of 3 per cent for prompt repayment, bringing the effective rate of interest to 4 per cent is being extended to 100 more districts from the current financial year.
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 this list of 100 districts.
The states have been granted flexibility to have only a single allocation under NRLM, based on poverty ratio.
There will now be greater thrust on skill development to Deen Dayal Upadhyaya Grameem Koushal Yojana (DDU-GKY).
The Cabinet has also approved removal of existing restriction, which limits the allocation of DDU-GKY to 25 per cent of NRLM allocation to enable ministry to expand its focus to cover training courses of longer duration for placements in foreign jobs and carry out re-skilling and up-skilling of rural poor youth. Besides, the existing ceiling for Professional Management cost has been enhanced to 6 per cent of NRLM allocation.
Under the changes, the human resource component under NRLM as per the terms of the project implementation plan and financing agreement with World Bank are to be kept outside the purview of the ceiling.
The changes will also facilitate need based financial allocation of Himayat programme of Jammu and Kashmir.
With this, 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. The scheme will be funded entirely by the central government.
In another move to reach out to the North East, which has been a priority area of the Modi government, the Cabinet also approved 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.
With this all vulnerable rural households in these states estimated at two thirds of all the rural households by the year 2023-24, will be covered under NRLM.
