MITIGATING POVERTY IN WESTERN RAJASTHAN

MPOWER, JODHPUR

Need and Justification

• To achieve the goal of inclusive growth, efforts for poverty mitigation need to be scaled up.

• Strategies for direct attack on poverty have proved to be more effective in poverty reduction (Trickle down effect of growth does not happen automatically).

• Poverty in Tribal and Desert areas is not only high but entrenched more in certain pockets requiring saturation approach.

Project Area

Selected poorest blocks

DistrictsBayatu

Sankada

Bap

Sanchor

Aburoad

Bali

Jaisalmer

Barmer

Jodhpur,

Jalore

Pali

Sirohi

six poorest blocks of the Jodhpur division (one per district)

Project ObjectivesThe overall goal of the Project is to improve the quality of life of the poor and create sustainable livelihood opportunities for vulnerable and marginalized groups in the project area. The specific objectives are

(i) Drought mitigation and water securitization(ii) Income enhancement and employment generation (iii) Market led productivity improvements (iv) Favorable market access in terms of realizing better producer prices (farm gate prices) and backward –forward linkages (v) Empowerment and mainstreaming of women,the

marginalized and vulnerable groups and (vi) Leveraging substantial govt. funds through

convergence and dovetailing.

Project Rationale

The project region is beset with a harsh arid climate with low erratic variable rainfall; drought is a recurrent phenomenon across the region at least once every three years. The core problems faced are severe water insecurity, poor agricultural, livestock and IGA productivity, low investable surpluses and a social system that greatly discriminates against women and the socially disadvantaged.

Project Components:(I) Strengthening of Grassroots Institutions,

divided in 2 sub-components: (i) Mobilisation and Capacity Building (ii) Community Infrastructure Development Fund (CIDF).

(II) Livelihoods Support, divided in 2 sub-components: (i) Income Generating, Marketing and

Employment Creation and (ii) Development Finance

(III) Project Management

Core Approach The core approach of CIDF component, in particular, is

convergence. All applicable and relevant on-going schemes of the Government are to be dovetailed and implemented in this project. Given that allocated resources are very limited in comparison with what Government will provide for infrastructure development (land and water resources development, afforestation, etc), the project funding will be for , “gap filling and complementary financing”. Where gaps or slippages that would compromise the quality, impact or targeting in regard to beneficiaries occur, Project funds will complement the effort.

Target Group.The target group consists of all BPL households in the project area, as determined by the GOR (100% saturation is the goal).

S.N Name of District  Name of the BlockTotal BPl

population

1 Jaiselmer Sankra 11066

2 Jodhpur Baap 8637

3 Jalore Sanchore 33973

4 Barmer Baitu 24317

5 Sirohi Abu road 9152

6 Pali Bali 12800

  

 Total 99945

Innovative Features(i) It attempt to make markets work for the poor by securing better

access and better producer prices (ii) It seeks to let markets signal and provide the incentives for people to

adopt new technologies and better management regimes (iii) By growing SHGs into Marketing Groups and making them into micro

entrepreneurs, the project transforms a mechanism of social empowerment into one for economic empowerment

(iv) It seeks to make equity a concern of the village elite also (not only that of the project)

(v) It uses project resources to provide the incentives as well as the follow up to leverage govt. funds through dovetailing and convergence of govt. schemes, especially NREGA.funds. This results in substantial augmentation of project resources.

Pilot activities

• Farmer Field Schools • Promotion of Opuntia Ficus• Tropical Sugarbeet Cultivation Trial• Pilot Juliflora Processing • Crop Demonstrations• Fodder Storage & Treatment• Promotion of Feed & Fodder Practices• Fodder Crop demonstrations• Breed Improvement and Vaccination Camps

Nodal Office,Jaipur

PROJECT MANAGEMENT STRUCTURE PROJECT MANAGEMENT STRUCTURE

SPMU, JODHPUR

BPMUs at Block

Project Partners (NGOs)

SHG VDCMARKETTING

GROUPS

Target groups (BPLs)

STATE PROJECT STEERING COMMITTEE

(Headed by Hon’ble Minister(RD&PR)

PROJECT STEERING COMMITTEE( Headed by

Divisional Commissioner, Jodhpur)

DPCC(Headed by District Collector)

GPDC(Headed by Sarpanch)

Clusters/ Federation

s

Financial Outlay (Rs in Crore)

FINANCING AGENCY CONTRIBUTION (Crore)

IFAD 124(Rs. 2.4 Crore as Grant)

Sir Ratan Tata Trust 13(as grant)

Beneficiaries Contribution 10.5

Bank Credit Leverage 180

Govt. of Rajasthan 87.5

Total Project Cost 415

• Not Credit alone: Holistic approach to address root cause of poverty i.e Education, Health, Natural Resources, Skills and Empowerment.

• Creating ownership.• Diversifying risks & Enhancing productivity.• Ensuring good governance.• Involving NGOs and Private sectors for market linkages.• Mainstreaming gender.• Convergence with ongoing programmes like NREGS, BRGF,SSA,

NRHM, Nutrition, Social Security etc.• Decentralized Participating Planning at village level for

Convergence.• Building Public Private Partnership.

IMPLEMENTATION STRATGY

Grassroot level implementation will be assigned to NGOs on task based agreement for the entire project period

PROJECT COORDINATOR

Team leader ( for 10-12 GPs)

Team leaderTeam leader

CF CF CF CF CF CF CF CF CF

VFVFVF VF VF VF VF VF VF VF VF VF

SHGs-Target groups

KEY TASKS Preparation and approval of Village plan (includes target house holds survey in

prescribed format) - 5 months Formation of SHGs , opening of bank A/C for imparting basic orientation

trainings on SHG concepts, group dynamics, maintenance of records and books of accounts, conducting group meetings &financial transactions and approval from BPMU.- 18 months

(i)Formation of VDCs, identification of livelihood based infrastructure, land based activities and facilitate the sanctioning committee to get approval of the proposal and release of funds by concerned line depts.(ii)Successful completion and submission of CC- 24 &30 months

Group qualifies for revolving fund and gets linked to the bank by way of availing credit and subsidy from Project and continues to work satisfactory. Grade-I- 24 months

After the SHG takes up an economic activity by formulating a Sub-Project and getting it financed from bank along with Project subsidy ,completion of requited Skill based trainings and submission of CC-Grade-II- 36 months

Successful execution of sub-Projects by the SHGs and repayment of first 6 instalments as per repayment schedule of the Bank- 42 months

Ensure each member of SHGs to get benefits from minimum 5 different identified schemes as per schedule.- 60 months

Formation of Marketing groups and SHGs linked with cluster/federation & Sustainability of the Clusters.- 60 months

Project Interventions and Benefits Nos

Number of villages benefited 1040

Number of BPL households benefited 86880

Total Population benefited 432660

Number of VDC promoted and empowered 1040

Number of CID interventions 1040

Number of target group households benefited by CID 20880

Number of SHGs organised and linked to bank 6000

Number of micro-enterprises supported 5500

Number of Marketing Groups organised 125

Number of market enterprises supported 125

Number of target group households involved in MG 2250

Number of Partnerships promoted 20

Number of households benefited by SME training 4160

Number of households benefited by NFA training 4160

Farmers benefited by Para vet training 245

Household benefited by village demonstrations 5200

Households benefited by vocational training 5200

Households benefited by partnership training 3600

Number of women benefited from FFS 750

Road traveled so far IFAD Loan effective from 11th December 2008. GoR allocated Rs 8.39 crore budget for FY 2009-10. PMU established at Jodhpur. BPMUs established at all project blocks. Base line &RIM survey work completed through CmF(Nodal agency of Project Co-financier SRTT). Project staffs two days orientation training and two days workshop on M&E completed. All Project managers trained through HCM,RIPA,Jodhpur on Rajasthan Service Rules and financial Management. Project staffs two days two days workshop on Financial management

and Procurement guidelines of IFAD completed. Livelihood related community infra structure work and individual benefit scheme under NREGS identified and included in MGNREGA action plan for the FY2010-11. Proposal submitted for budget allocation of Rs 14 crores for F.Y 2010-11. FNGO selection is under progress.

• After NGOs deployment start up workshop to be scheduled by Apr’10.• After FNGO deployment village planning exercise which includes 100% target HH survey will be carried out.• Capacity building of FNGO staffs/ PRIs carried out with the help of SRTT co financing part.• Sensitization workshop for bankers ;• Need assessment study has to be carried out;• Gender workshops carried out in state level as well as in blocks level;• Infra structure works carried out in 300 villages;• Drudgery reduction activities carried out in 200 villages;• Demonstrations at Gram panchayat level carried out with the help of concerned line departments/FNGOs;• Some 3000 SHGs will be formed and more than 1000 SHGs credit linked with banks.

Action plan for 2010-11

Reasons for slow Progress

Due to election code of conduct (Since loan effectiveness Parliament, state legislative and PRI elections held in our state)pre- implementation activities delayed.Concurrence on NGO selection procedures cause delay in grassroot implementation.

Thanks