Executive Summary 001

Transcription

1

2

3

4

5 Content Chapters Page No. Executive Summary State Situational Analysis Demographic Profile of the State Rural Poverty Context of the State Vulnerabilities Context of Social Inclusion and Social Mobilization Context of Financial Inclusion Livelihoods Context Performance of MGNREGA in the State Performance of Leading Social Welfare Schemes Summary and Conclusion Mission and Objectives of NRLM Mission, Principles, Values Approach Social Inclusion and Mobilization- Strategies and Activities Social Inclusion and Universal Social Mobilization Promoting Self Help Groups Inclusion of pre-existing SHGs Formation of Village Organizations Inclusion of Pre-existing Federations Cluster Level Federations Block Level Federations Livelihood Based Producer Groups Role of Community Professional and Community Resource Person Social Mobilization in Non- Intensive Blocks 088 Annexure 1 Essential Feature of SHG 089 Annexure 2 Development Milestones of SHGs 091 Annexure 3 - Phases and Life Cycle of a VO Financial Inclusion Context of Financial Access to the Poor Strategies for Financial Inclusion Strategies and Activities to be taken up as a part of Livelihoods Promotion Vulnerability Reduction Livelihoods Promotion Employment Building Skills for the Job Market outside Enterprise Promotion and RSETI Convergence and partnerships Convergence with MGNREGA Convergence with Other Line Departments Innovation Forum Partnerships with NGOs and Other Civil Societies Convergence with Externally Aided Programs Partnerships with Academic, Training and Research Institutions Public-Public, Public- Private, Public- Private Community Partnership 143

6 7. Implementation Plan Implementation Startegy Intensive and Non- Intensive Approaches Selection of District & Block Project Cycle in a Village and Block in Typical Intensive Block Phasing (Non Intensive and Intensive) Results Frameworks Targets Project Costing Support Structure State Project Management Unit District Project Coordination Unit Block Project Implementation Unit Projected Manpower Requirement HR Policy of BRLPS Administrative and Financial Rules Training and Capacity Building Strategy Objective of Capacity Building Institutional Arragement Key Approach / Strategy to be followed Training and Capacity Building of Staff Training and Capacity Building of Communities and their Institutions Training and Capacity Building of Community Professionals Capturing Learning for Capacity Building Efforts 198 Annexure1 List of Training Programme with Training content for the Project Staff 199 Annexure2 Suggested Training and Content in Institutional Building 201 Annexure 3 Suggested Training Components for SHG and Federation Monitoring, Evaluation and Learning Objectives of the Social Observatory Components of the Bihar Livleihoods Social Observatory Mixed-Methods Input Evaluation Peer Reviews Rating System Developing Learning System (DLS) Advisory Committee The Key Outputs of the Social Observatory Communication Major Constraints in Communication Communication Plan Role and Levels of Communication Communication Flows (Internal and External) Communication Strategy Communication for Field Implementation Knowledge Management Role of Community Strategic Communications Operational Communications Summarizing Communication in NRLM 212

7 12. Financial Management Financial Management Framework Fund Flows Staffing and Capacity Building Accounting Policies and Procedures Audit Arrangements Financial Reporting Computerized Accounting System Procurement Arrangements Procurement of Goods & Works Procurement of Services and Consultants Community Based Procurement Threshold of Review Procurement Planning, Management and Supervision Arrangement 14. Social Management Framework Methodology Rationale Outreach under the different Social Benefits Programme Proposed Initiatives Tribal Development Plan Social Inclusion Plan Community Based Gender Strategy and Action Plan Consultation and Participation Social Monitoring Grievance Redressal Machanism Environment Management Framework Methodology Rationale and Objectives Environmental Status and Issues in Bihar BRLPS Experience in Integration of Environmental Sustainability into Poverty Reduction Efforts Strategies for integration of environmental Sustainability Institutional Arrangements Budget 275 Annexure 1 Environmental Profile of Bihar 278 Annexure 2 Green Opportunity Set 299 Annexure 3 Regulatory Requirements List 246 Annexure 4 Environmental Guidelines for Producer Collective Federations 348 Annexure 5 Environmental Guidelines Agriculture 350 Annexure 6 Inputs to the terms of Reference for Technical Support 356 Annexure 7 List of Pesticides / Pesticides Formulations Banned in India 358 Annexure 8 List of Pesticides not Permissible (WHO Classes Ia, Ib and II) 360 Annexure 9 List of Dayes banned in India Governance and Accountability Plan Introduction Good Governance and Accountability Initiatives in Place Objectives of GAAP Strategy Governance and Accountability Action Plan Matrix 370

8 List of Tables 1.1 State Scenario at a Glance Districts wise Population, 2001 and District wise SC, ST and Minority Profile District wise Mahadalit profile Ranking of Districts by Sex Ratio, 2001 and Percentage of Female Literacy Rate Poverty Index District wise BPL Households Health & Nutrition Indicators Comparison of Indicators Health Infrastructure Indicators Used to Compute Food Security Outcome (FSO) Index Percentage of Household getting insufficient Food Disability Profile of the State District wise Indices for Vulnerability Catagorisation of Districts SHG formed in the State by various agencies District wise SHG Formed Category wise distribution Distributions of Commercial Banks Branches in Bihar Distribution of Branches of Commercial Banks among states ( ) Distribution of Employees of SCB s (As on March 31, 2009) State wise Deposits and Credit of SCB s in India (As on March 31, 2010) Credit Deposit Ratio of all Banks in Bihar Credit Deposit Ratio of the SCB s in terms of Sanction and Utilization District wise Credit Deposit Ratio in Bihar Coverage of JLG s by MFI s in State of Bihar Year wise Progress of SHG Bank Financing in Bihar Growth of SHG Bank Linkage in Selected States (Comulatively) Bank Loan Outstanding against SHG s Micro Financing by RRB s Savings of SHG s with Banks Performances of Banks under SGSY Status of SHG s assisted under SGSY as on Nov Status of utilization of fund in the SGSY WDC Progress Update (till March 2011) BRLPS Progress Update (till March 2011) Livelihoods Oppertunities Net cultivated Area, Production & Yield Animal Husbandry Potential Dairy Unions in the State Density of Goat Population Available Water Area in Hectares for Pisciculture Bee Flora Calender in Bihar Performance of MGNREGA Division of Man days in the State District wise Coverage of MDMS (Class I-V) ( ) Overview of Public Distribution System ICDS District-wise Projects ICDS Number of Projects NRHM Indicators JEBSY Status Flagship Schemes to Address Gender Disparity 072

9 5.1 Entitlements Social Security Pensions Livelihoods Promotion System of Rice Intensification System of Wheat Intensification Agriculture Extension Mechanisms Fishery Extension System Innovation Forum Study of Poverty and Social Assessment Done by ADRI Sorting of district on the basis of blocks Year-wise entry plan Phasing (Intensive & Non-Intensive) Project wise Division of Blocks Result Framework and Monitoring Year wise Phasing of Indicators for Monitoring Targets Project Costing Major Components of Project Budget Resource Planning Key Roles and Responsibilities of Positions at SPMU Key Roles and Responsibilities of Positions at DPCU Key Roles and Responsibilities of Positions at BPIU Year wise Manpower Requirement under NRLM List of Training Programme Suggested Training Themes Suggested Training Components for SHG Template for the M, E & L System Framework Key Finance Management Personnel Internal Reports Reports to be submitted by SMMU to NMMU Report from VO/ BLF to Project Goods & Works Procurement at Various Level Goods & Works for CBOs Prior Review Procurement Roles & Responsibilities Educations Status of SC, ST, OBC and other Castes Key Elements Community Based Gender Action Plan Key Livelihoods Activities List of Green Opportunity Matrix of Enviromental Interventions in SRLM Training Session for SRLM Staff Training Programmes for District and Block Level Environment Coordinators Training Programmes for Community Institutions Internal Monitoring of Implementation of EMF Institutional Arrangements Institutional Arrangements in SRLM for EAP Budget Agroclimatic Zones of Bihar Land use in Bihar Wastelands of Bihar River Basins of Bihar 283

10 15.15 Districts affected by poor groundwater Quality Use of Chemical Fertilizers Trend in Pesticide Consumption in Bihar Livestock Population in Bihar Production of fodder in Bihar Land use in Districts of Bihar Wastelands of Bihar Wastelands District of Bihar Status of Soil Mactonutrients District wise Normal and Actual Rainfall Probability of Drought in Bihar Groundwater Resources in Bihar District wise Habitations affected by poor water quality in Bihar Net Area Irrigated Source wise in Bihar Details of Protected Area in Bihar List of Opportunity Sets Proposed Green Opportunities Agriculture Green Opportunities Renewable Energy Phasing Way Detail Activities & Responsibilities Earnings per member for different eco-enterprises KB Drip vs. Conventional Drip Indomitalbe Spirit Summary of Timing of Benefits from TBFS Prioritized List of Animal Health Conditions Folk Understaning of Mastitis & Clinical Features Comparative Assessment of remedies from different Sources Comprative Assessment of local remedies for treating mastitis Products of PHPC Capital Cost & Financing Profitability of SCS Environmental Guidelines Agriculture Environmental Guidelines Dairy Environmental Guidelines Fisheries Environmental Guidelines Poultry Environmental Guidelines Goat Rearing Environmental Guidelines Use of Chemicals, Machinery, Intense heat List of Pasticides List of Pesticide Refused Registration Psticides Restricted for Use in India Extremely Hazardous Highly Hazardous Moderately Hazordous List of Benzidine based Dyes Prohibited List of Azo Dyes Prohibited Accountability Action Plan Matrixes 370

11 List of Figures 1.1 Bihar Map Decdal Growth Rate in Bihar Tendulkar Committee Report PCDE Comparison Food Security Atlas of Bihar Flood Zones of Bihar Indian Scenario LWE Affected Districts Growth Rate of Commercial Banks Serving Population / Branch CD Ratio of Bihar Graphical Representation of SHG Bank Linkages Bank Linkage with RRBs Institutional Delivery in the State Immunisation in the State NRLM Headcount of Poverty Rate Framework for Project Interventions Project Cycle Support Structure Support Structure at SPMU Support Structure at DPCU Support Structure at BPIU Fund Flow Institutional Model of SMF MGNREGA Work in Bihar Process of VO NRMP Process of Federation Land use in Bihar Agroclimatic Zones of Bihar Wastelands of Bihar Forests of Bihar Pathways TP, Aomstrea Green Opportunities Integrating Green Opportunities into EMPs Source of Green Opportunities Concept of Biovillage DRIP Irrigation Water Conveyance Pipes Channel Partner of IDE India Channel Partner of IDE Income Impact of KB Drip Tree Based Farming System Rapaid Assessment of Local Health Traditions Ayurvedic Feed Addative LaBL Solar Charging Station Schematic LaBL Solar Charging Station LaBL Partnership Network Oorja Gasifier Stove Clean, Smokeless Flame from Oorja Gasifier Stove 344

12 Abbreviations APL : Above Poverty Line BIF : Bihar Innovation Forum BLFs : Block Level Federations BMMU : Block Mission Management Unit BPIU : Block Project Implementation Unit BPL : Below Poverty Line BRLPS : Bihar Rural Livelihoods Promotion Society BRLP : Bihar Rural Livelihoods Project CIF : Community Investment Fund CLFs : Cluster Level Federations DFID : Department for International Development CID : Community Institution Development DMMU : District Mission Management Unit DPCU : District Project Coordination Unit FSF : Food Security Fund HHs : Households HRF : Health Risk Fund ICF : Initial Capitalization Fund KVK : Krishi Vigyan Kendra LHF : Livelihoods Fund NABARD : National Bank for Agriculture and Rural Development NGO : Non Governmental Organization NiF : National Innovation Foundation OBC : Other Backward Classes PACS : Poorest Area Civil Society NRLM : National Rural Livelihoods Mission PoP : Poorest of Poor SC : Scheduled Castes SGSY : Swarn Jayanti Gram Swarozgar Yojana SHGs : Self Help Groups SMMU : State Mission Management Unit SPMU : State Project Management Unit SRLM : State Rural Livelihoods Mission ST : Scheduled Tribes STA : Special Technical Assistance VO : Village Organization WDC : Women Development Corporation WoW : Women Outreach Workers CGTMSE : Credit Guarantee Fund Trust for Micro and Small enterprises MGNREGA : Mahatma Gandhi National Rural Employment Gurantee Act

13 Executive Summary Bihar is one of the least developed and fastest growing economies in the country. It is 12 th largest in terms of geographical size and 3 rd largest in population. After the bifurcation of the state into Bihar and Jharkhand in 2000, it retained 75% of the population of undivided Bihar and was left with 54% of the natural resources. Bihar now struggles with difficult demographic indicators. The state has a decadal population growth of 25.07% ( ) which stands substantially higher than the national average (i.e 17.64%). The population density is about 3 times the national average. The state has a high proportion of rural population (89.53% against national average of 72.20%). There is a good proportion of SC population (15.7%) and minority communities (primarily Muslims). The Mahadalits, as part of SCs, account for 15.69% of the population in the state. The Poverty ratio for the entire population in Bihar is 54.4% (37.2- national average). The state also falls way below the national figures in terms of the key human development indicators. The sex ratio for the state stands at 916. The same figures for district varies to as low as 879. The female literacy rate is In terms of disability, 90% of the persons with disabilities reside in the rural areas. The state also falls behind the national figures on mortality and nutritional status. The growth in the state is severely affected by Left Wing Extremism, which is present in almost 41% areas of the state in varying degrees. In addition to this, disasters comprising of both droughts and floods affect almost the entire state on a regular basis. In terms of social inclusion for rural poverty alleviation in Bihar, the early efforts promoted the SHG model through various government schemes. These SHGs are able to cover only a fraction of the rural poor in the state. A further analysis of these SHGs highlight clear gap in terms of quality parameters and coverage of poorest of poor and poor households. As regards the financial inclusion in the state, presence of banking infrastructure (both physical and human) for credit-linkage of poorest of the poor and poor is much below the desired level. This has resulted into much to be realized in this regard. The livelihoods profile for the rural households comprise of multiple sources. Agriculture, as the primary source, with a combination of livestock rearing, fishery, agriculture labor and a mix of off-farm activities comprise the livelihoods basket for a rural family. MGNREGA has provided the much needed wage labor. However, the average man days per household stands at for the state which is amongst the lowest in the country. The limited industrial growth and constraint of resources has resulted into large scale unemployment and consequently into migration. Given the above scenario, NRLM in the state aims to reduce poverty by enabling the poor households to access gainful self-employment and skilled wage employment opportunities, 1

14 resulting in appreciable improvement in their livelihoods on a sustainable basis, through building strong grassroots institutions of the poor. The approach is towards building, supporting and sustaining livelihoods of the poor, NRLM harnesses the innate capabilities of the poor, complements them with capacities (information, knowledge, skills, tools, finance and collectivization) to deal with the rapidly changing external world. Being conscious of the varying livelihoods options, NRLM works on three strategies enhancing and expanding existing livelihoods options of the poor; building skills for the job market outside; and nurturing self-employed and entrepreneurs (for microenterprises). Dedicated support structures build and strengthen the institutional platforms of the poor. These platforms, with the support of their built-up human and social capital, offer a variety of livelihoods services to their members across the value-chains of key products and services of the poor. These services include financial and capital services, production and productivity enhancement services, technology, knowledge, skills and inputs, market linkages etc. These platforms also offer space for convergence and partnerships with a variety of stakeholders, by building an enabling environment for poor to access their rights and entitlements, public services and innovations. The aggregation of the poor, through their institutions, reduces transaction costs to the individual members, makes their livelihoods more viable and accelerates their journey out of poverty. The Mission has four key components as pillars for NRLM in the state. These include social inclusion and mobilization, financial inclusion, vulnerability reduction with livelihood enhancement and sensitive and dedicated support structure. In terms of social inclusion and institutions of the poor, there are about 2.5 Lakh SHGs in the state, 70% of these have been formed under the SGSY. However, only one-fourth of rural poor and 12% of the Scheduled Castes have been organized into SHGs. In addition to this there is a huge disparity in the quality of SHGs formed. Under the SRLM, the mandate is to mobilize and organize almost 1.25 (+.25) crore households in 10 lakh self help groups. To achieve this, a bundle of strategies has been formulated. The Mission focuses on including / mobilizing the poorest of the poor and poor households into functionally effective and self managed institutions with special focus on the most vulnerable sections of the society. A comprehensive scanning of the pre-existing SHGs and federations would be undertaken and efforts would be made towards their inclusion based on Community Operations Manual. This also opens an arena for building partnership with potential NGOs / CSOs. In addition to this, new SHGs of the target groups would be formed. As the task would be herculean, utilizing the services of multi stakeholders is proposed. These SHGs would be federated in the form of Village Organizations (VOs), Cluster Level 2

15 Federations (CLFs) and Block Level Federations (BLFs). Given the potential for sub-sector / commodity based livelihoods promotion, producer groups (livelihoods groups) and their federations (producer co-operatives / companies) will also be facilitated. The project would provide necessary support for establishment and running of the enterprises. The role of community professionals accountable entirely to the Community Based Institutions (CBOs) has also been proposed in order to manage the CBO activities. In terms of financial inclusion of the poor in the state, the banking scenario vis-à-vis its reach to the poor does not portray a very promising picture. The number of SHGs credit linked (30241) and amount of credit linkage (Rs. 295 crores) for the year leave much to be realized. The density of scheduled commercial banks is very low in the state as compared to other states and is almost half against the national average. Similarly, the credit deposit ratio is less than half of the national average. Given the regular risks that the poor face and as one of the main reasons for falling into the debt trap, the need for insurance need not be emphasized more for the state. To ensure universal financial inclusion, the SRLM has a three pronged strategy. The micro-planning process indicates that there is a large credit gap at the member level. The Mission would provide financial assistance to the SHG / VO in the form of Initial Capitalization Fund (ICF) and Community Investment Fund (CIF). The CIF would be parked with the SHG / VO for addressing the credit need as Health Risk Fund, Food Security Fund, Livelihoods Fund and Miscellaneous Fund. As a second strategy, the project would facilitate access to mainstream financial sources through developing partnership with commercial banks, improving quality of services at bank branches, expanding banking foot print in project villages by leveraging technologies and making micro-planning a fiduciary requirement for credit. The third strategy would be to facilitate access to insurance services. Here, the substrategy would be to facilitate access to government supported insurance schemes, provide insurance to livestock and insurance against recurring health shocks. The Mission, in addition to making available various insurance schemes / products, as discussed above, to the target group, would also work towards strengthening the service delivery of various government schemes and programs to reduce the risk on the target group. In terms of livelihoods, a rural family depends upon multiple sources. Agriculture, however, remains the backbone of the state s economy with 81% of workforce engaged in it. The Food security index, based on mortality and malnutrition among children under 5, shows that of the 38 districts in the state, only 8 are categorized as secure, 12 as moderately secure and rest 18 as extremely insecure districts. Furthermore it has been observed that a majority of the districts having large percentage of SC population are categorized as extremely insecure. Given the situation, three broad strategies for livelihoods enhancement have been defined. The three strategies are vulnerability reduction, income enhancement and skill development. 3

16 The vulnerability reduction strategy focuses on securing food needs, reducing health expenditure and ensuring entitlements to the poor. The interventions for securing food needs comprise of production enhancement, collective purchase of food grains at the village level and through ensuring PDS entitlements. The intervention in reducing health expenditure cover setting up of a health risk fund at the village level, establishment of a community dispensary (Mobile Van Services) and through ensuring health entitlements. The interventions under ensuring entitlements would be primarily creating VOs acting as centre point. Convergence with various government schemes like MGNREGA, Social Security Pensions, Education, Health & Nutrition etc would help in facilitating access to various entitlements for the deserving households. The income enhancement strategy focuses on interventions in farm sector, off farm sector and non farm sector. The interventions in farm sector primarily comprise of productivity enhancement, participatory varietal selection and promotion of seeds, value chain interventions and development of community managed extension system. The off farm sector focuses on interventions in dairy, goat rearing, poultry, bee keeping and fisheries subsectors. The area of intervention in these sub-sectors would primarily be on building partnerships, technical support, developing marketing linkages etc. The interventions in non farm sectors focus on promoting individual activities, developing clusters of specific arts and crafts and value chain development. The skill development strategy takes a holistic approach. On one hand it focuses on youth, to train them on market demand areas and creation of database to capture both the demand and supply side, on the other hand it focuses on creating an enabling environment for migrant youth with support services and build strategic alliance with PPP model for placement of potential workforce. In addition to this, it also takes this opportunity to create a cadre of professionals working for community institutions. To ensure that the activities are environmentally sustainable and socially relevant, Environmental Management Framework (EMF) and Social Management Framework (SMF) have been developed by BRLPS. The EMF has been developed by an expert team after due consultations at various levels. The EMF has been devised to address the environmental issues and to mainstream them in the planning, design and implementation of project supported activities. The EMF includes activity specific Technical Environmental Guidelines (TEGs), environmental management indicators for the project monitoring and evaluation plan and capacity building for environmental awareness and management. The social management framework ensures equality of opportunities for all poor and poorest of the poor coming under the target group of the project. To ensure proper application of SMF, the Mission would undertake capacity building of individuals involved in the implementation of the activities from staff to community cadres on rights. In addition, awards and rewards would 4

17 be placed to felicitate agencies / individuals for innovation and proper targeting of the poorest families. Both the frameworks have also been shared with relevant departments and disclosed as required. The implementation of the above mentioned strategies would be undertaken by a sensitive support structure under BRLPS, an autonomous body under the Department of Finance, Government of Bihar. The NRLM in Bihar would be implemented through its three tier structural unit i.e. State Project Management Unit (SPMU / SMMU), District Project Coordination Unit (DPCU / DMMU) and Block Project Implementation Unit (BPIU / BMMU). BRLPS has already framed Human Resource Manual which has been improved over the years of experiential learning. This HR manual would further be modified and enlarged as per the requirements of SRLM under the framework of NRLM. The Mission would be implemented in all 534 blocks of the state. As scaling up of such a holistic poverty alleviation program to the entire state at one go might dilute the quality, it has been planned that the implementation would be taken up in a phased manner. There would be two approaches intensive and non-intensive. Under the intensive approach, there would be full strength of human resources and operational BMMU with required amenities at the Block level. The Mission strategy is to saturate the block with the whole livelihoods framework within a period of five years. Under the non-intensive approach there would be a limited team covering fewer Gram Panchayats. The team would be supported by the operational BMMU in the same district and the DMMU established in the adjacent district would hand hold the BMMU for a period of one year. They would start the foundation work at the Block level i.e. initial rapport building, mobilization and institution development and program awareness generation. The segregation of districts, blocks and villages for intensive and non intensive approaches has been done on the basis of a set of criteria. It is important to mention here that all the districts and blocks would be brought under the intensive approach by the year To implement NRLM in Bihar, the costs would include those of formation and development of CBOs, for capacity building of the institutions, for capital investment for credit rotation, for special technical assistance, for skill enhancement & innovation, for monitoring and evaluation, for communication and for overall project management. The costing of NRLM in Bihar amounts to Rs crore for the period to including the existing projects (BRLP & BKFRP Livelihoods Component). Out of this, 21.19% is for Community Institution Development Fund, 63.81% for Community Investment Fund, 9.52% for Special Technical Assistance & Skill Enhancement / Innovation Fund and 5.49% for Project Management Fund. It is planned that the above fund requirement would be met form the GoI grants under NRLP and SGSY / NRLM provisions apart from the existing World Bank loan for BRLP and BKFRP. There still would be a financing gap and this gap is proposed to be 5

18 bridged through additional financing for the existing projects, State Government share and convergence with other GoI / GoB programmes. The expected result of the Mission is that an investment of a total of Rs Crore would result in a poor family accessing cumulative credit of Rs. 1 Lakh over the program period and by using which the household would have retired all the high cost debt, have invested in a basket of income generating activities (2 to 3 livelihood activities) thereby leading to an incremental income of Rs. 10,000/- per month (based on existing experiences), have substantially reduced expenditure on health and become food secure for the entire year and thus come out of poverty in 5 to 8 years time frame. Overall it is expected that 1.25 (+0.25) crore rural poor and poorest of the poor families of Bihar would be enabled to come out of poverty through this program by These 1.25 crore women would be organized into 10 Lakh SHGs, 65 thousand VOs, 1600 CLFs and 534 BLFs. Nearly 3 Lakh community para-professionals and community resource persons would be identified and trained. It is envisaged that the households would cumulatively save nearly Rs crore, access Rs crore of CIF and Rs crore of credit from Banks. These community institutions would be self supporting in the direction of sustainable livelihoods enhancement including focused approach for vulnerability reduction. Nearly 65 lakh HHs would be practicing comprehensive agriculture, whereas 37.5 lakh HHs would be linked with dairy activities. Similarly, goat rearing, poultry, fishery and bee keeping activity options would be taken up with 25 lakh, 25 lakh, 3 lakh and 6.25 lakh HHs respectively lakh HHs are planned to be linked with non-farm livelihoods both on individual and cluster mode, whereas 15 lakh youth would be trained and placed in the organized sectors with special focus on skill development and moving up to an exclusive employment generation mission. 6

19 Chapter - 1 State Situational Analysis 'The abode of Brahma.' that's what people once called this Eastern state of around million in India. Surrounded by other Indian states of Uttar Pradesh, Jharkhand, West Bengal and a neighboring country Nepal, it is one of the most populous and constantly inhabited places in the country. In his book The Wonder That Was India, A L Basham calls Bihar a place full of intellectual ferment. He further writes of Bihar as a region which has not only produced philosophers and ascetics, but also merchant princes and men of action. Bihar takes its name from Vihar. Vihars the ancient Buddhist monestaries (also mean home) found preponderently in the region and so the name was spread. Bihar, as the world knows it now, is an ancient land, dating back to the civilizations beginning. This is where the seeds of the first republic were sown and the first democracy evolved from it. In the epic Ramayan, Sita the concert of Lord Rama was a princess of Bihar. It was in Bihar that prince Gautam attain enlightainment and became the Buddha. It is also here that lord Mahavira, the founder of another great religion, Jainism, was born and attained nirvana. It is in Bihar that the tenth and the last Guru of the Sikhs, Guru Gobind Singh was born and attained sainthood of Sikhism. Time was when Patliputra (modern Patna) was home to Chandra Gupta; was capital of the Maghadh Empire; its bouderies extending to the modern Afganistan. His prime minister Chanakya, the author of Arthashastra, the first treatise of the Science of Economics was was known for his great wisdom. Another legendary mauriyan King Emeror Ashoka, who reigned around270 BC, was the first to formulate firm tenets for the governence of people. Edicts of Ashoka, inscribed on stone pillars feature lion denoted strength, the wheel denoted the eternal (endless) nature of truth (dharma), hence the name Dharma Chakra. This lion was adopted as the Official Seal of the independent Republic of India. Ashoka wheel (dharma chakra) was incorporated into the national flag of India. Ancient Bihar also saw the emencipation of women, involving them in the matters of the state affairs. It was here that Amrapali, a courtesan of Vaishali in the kingdom of the lichhavies, attained and wielded enormous power. At Nalanda the world s first seat of higher learning, a university was established during the Gupta period. During Medieval period, Shershah, a Bihar resident, was noted not only as a ferocious warrior but also a remakable administrator. Pioneering acts of land-reform are attributed to him as is the construction of the first pan-india highway the Grand Trunck or GT Road. It was from Bihar that Mahatma Gandhi launched his first Civil Disobedience Movement in India, which ultimately led to India s independence. During late medieval period and early British regime, Bihar and Bengal was governed unitedly and in the year 1912, it was divided and Bihar and Orissa was seperated from Bengal. In 1935, again, Orissa was seperated from Bihar. During reorganisation of states in 1956, Bihar got its geographical bounderies and that remained intact till 15 November On that date, the state of Jharkhand was created with the southern portion of Bihar and the rest part of the state remain as the State of Bihar. At present the State has 38 Districts. All the Districts are shown in Figure

20 Figure 1.1. Bihar Map Bihar is located between 82-19'-50" ~ 88-17'-40" E longitude in the eastern part of the country. It is an entirely land locked state and is surrounded by West Bengal in the east, Uttar Pradesh in the West and the State of Jharkhand in the South. In the North, Bihar shares its boundary with Nepal. Humid West Bengal in the east and the sub humid Uttar Pradesh in the West provides it with a transitional position in respect of climate, economy and culture. The Bihar plain is divided into two unequal halves by the River Ganga which flows through the middle from West to East. Close to 85% of the population lives in village. PHYSICAL FEATURES Rural Area - 92, sp. Kms. Urban Area - 1, sq. kms. Total Area - 94,16.00 sq. kms. ADMINISTRATIVE UNITS Divisions - 09 Districts - 38 Sub-Divisions CD Blocks Panchayats - 8,471 Number of Revenue Villages - 44,875 Number of Urban Agglomerations - 14 Number of Towns

21 1.1. Demographic Profile of the State The Bihar state is 12th largest in terms of geographical size (94,163 sq. km) and 3rd largest by population (10.38 crores - Census 2011) in the country. It is also known for its abundant natural resources, perennial rivers, fertile lands and a long glorious history. In spite of all these conditions, the state remained one of the poorest states in the country since independence. Condition further deteriorated after the state s division in The state retained almost 75 percent of the population, while it is left with only 54 percent of the land and a lot of strain in resources. Following table gives a glance at the general scenario of the state. Table 1.1. State Scenario at a Glance 1 Particular Bihar India Area 94,163 sq. Km 32,87,240 sq. Km No. of divisions 9 NA No. of districts No. of blocks 534 NA No. of Panchayat 8,471 NA No. of Revenue villages 44,874 6,41,000 Population 10,38,04, ,01,93,422 Female 4,96,19,290 58,64,69,174 Population density 1,102 per sq. km 382 per sq. km Sex ratio Literacy rate % % Male literacy rate 73.39% 82.14% Female literacy rate 53.33% 65.46% The sex-ratio of state is 916 which are lower than the national average of 940. Among 38 districts in Bihar, the district with highest and least sex-ratio is Gopalganj (1,015) and Munger & Bhagalpur (879) respectively. The average literacy rate in Bihar is percent which is lower than national average of percent. The female literacy rate in Bihar is percent against the national average of percent. Among 38 districts of Bihar, the districts with highest and lowest literacy rate are Rohtas (75.59 percent) and Purnia (52.49 percent) respectively. As per the census, 2011, Bihar is having percent of rural population which is higher than the national average of percent. The total SC population of Bihar is 15.7 percent which is lower than the national average of percent. The rural population growth rate of Bihar is percent) is also higher than the national average of percent. Among the population category, 16.4 percent of rural SC population and nearly 1 percent of rural ST population makes the state population more diverse. The decadal population growth ( ) of Bihar is percent against the national average of percent. The districts with highest and least decadal growth rate are Madhepura (30.65 percent) and Gopalganj (18.83 percent) respectively. The population density of the state is 1,102 per 1 SOURCE Provisional Census, 2011 ( 9

22 sq. km against the national average of 382 per sq. km. The most densely and least populated districts are Sheohar (1,882) and Kaimur (488) respectively. The graph below shows the trend of population growth over the last five decades. Figure 1.2. Decadal Growth Rate in Bihar District wise population The district wise population figures are given in the table below. The table shows that Patna has the highest population and Sheikhpura the least. Table 1.2. District wise Population, 2001 and 2011 Rank in 2011 District 1 Patna 2 Purbi Champaran 3 Muzaffarpur 4 Madhubani 5 Gaya 6 Samastipur 7 Saran 8 Paschim Champaran 9 Darbhanga 10 Vaishali 11 Sitamarhi 12 Siwan 13 Purnia 14 Katihar 15 Bhagalpur 16 Rohtas Population ,772,804 5,082,868 4,778,610 40,476,044 4,379,383 4,254,782 3,943,098 3,922,780 3,921,971 3,495,249 3,419,622 3,318,176 3,273,127 3,068,149 3,032,226 2,962,593 % age to total Population of the state Population , 718,592 3, 939,773 3, 746,714 3, 575,281 3, 473,428 3, 394,793 3, 248,701 3, 043,466 3, 295,789 2, 718,421 2, 682,720 2, 714,349 2, 543,942 2, 392,638 2, 423,172 27,464,243 % age to total Population of the state Rank in

23 17 Begusarai 2,954, ,349, Nalanda 2,872, ,370, Araria 2,806, ,158, Bhojpur 2,720, ,243, Gopalganj 2,558, ,152, Aurangabad 2,511, ,013, Supaul 2,228, ,732, Nawada 2,216, ,809, Banka 2,029, ,608, Madhepura 1,994, ,526, Saharsa 1,897, ,508, Jamui 1,897, ,398, Buxar 1,707, ,402, Kishanganj 1,690, ,296, Khagaria 1,657, ,280, Kaimur (Bhabua) 1,626, ,275, Munger 1,359, ,137, Jehanabad 1,124, , Lakhisarai 1,000, , Arwal 699, , Sheohar 656, , Sheikhpura 634, , District wise SC / ST / Minority details In terms of the proportion of SCs, Aurangabad has the highest proportion (29.6%) followed by Nawada (24.1%) and Kaimur (22.2%). Of the 38 districts, Kisanganj has the least proportion of SCs (6.6%). The maximum proportion of STs are in Katihar (5.9%) followed by Banka (4.7%) and Purnia (4.4%). As far as minority proportion is concerned, Kisanganj has the maximum (67.6%) followed by Katihar (42.5%) as against the state average of 16.6%. Table 1.3. District wise SC, ST and Minority Profile 2 Districts Rural Populatio n (%) SC (%) ST (%) Minorit y (%) Districts Rural Populatio n (%) Kisanganj Vaishali Nalanda Begusarai Lakhisarai Munger Bhagalpur Sheohar Gaya Saran Bhojpur Rohtas Sitamarhi Jehananbad Madhepura Sheikhpura Muzaffarpur Kaimur Nawada Samastipur SC (%) ST (%) Minorit y (%) 2 Source: 2001Census 11

24 Saharsa Araria Gopalganj W.Champar an E.Champar an Aurangabad Jamui Katihar Banka Bihar Darbhanga Patna Khagaria Purnea Buxar Madhubani Supaul Siwan Mahadalit The state government formed the State Mahadalit mission for the development of the most deprived amongst the Scheduled castes. The Commission observed that out of the 22 scheduled castes in Bihar, 20 are acutely deprived in terms of educational, economic, socio-cultural and political status. The Commission identified these 20 castes primarily on the basis of their literacy rate. The literacy rate of Mahadalit is 16.7 percent against 28.5 percent literacy rate of schedule caste in Bihar. The Table below gives the district wise proportion of Mahadalits. Table 1.4. District wise Mahadalit profile Districts Rural Population (%) Mahadalit (%) Districts Rural Population (%) Mahadalit (%) Kisanganj Patna Katihar Darbhanga Bhagalpur Bihar Purnea Lakhisarai Banka Muzaffarpur Gopalganj Madhepura E. Champaran Jamui Munger Jehananbad Madhubani Nalanda Araria Kaimur Buxar Aurangabad Khagaria Nawada Begusarai Gaya Bhojpur As per the table, Bihar has percent of Mahadalit. The top three districts in terms of mahadalit proportion, are Gaya (29.62%), Nawada (24.04%) and Aurangabad (23.46%) Ranking of Districts by Sex Ratio The table below ranks the districts on the basis of sex ratio. As per data, Gopalganj has the best ratio and Bhagalpur has the lowest. 12

25 Table 1.5. Ranking of Districts by Sex Ratio, 2001 and 2011 Rank in 2011 District Sex-ratio (No. of Females per 1000 Males) i ii iii iv v 1 Gopalganj 1,015 1, Siwan 984 1, Saran Kishanganj Nawada Gaya Purnia Arwal Sheikhpura Madhubani Supaul Buxar Araria Nalanda Jamui Kaimur (Bhabua) Jehanabad Katihar Aurangabad Rohtas Madhepura Darbhanga Samastipur Banka Pashchim Champaran Saharsa Purba Champaran Lakhisarai Bhojpur Sitamarhi Muzaffarpur Begusarai Vaishali Patna Sheohar Khagaria Munger Bhagalpur Rank in

26 District wise percentage of Female Literacy As per census 2011, Bihar has percent of literacy rate against the national average of percent. The literacy decadal growth rate is percent in Bihar as compared to national averagee of 9.24 percent. The female literacy rate in India is percent whereas in Bihar it is 53.7 percent. The female literacy decadal growth rate in Bihar is percent in comparison to the national average of 11.7 percent. Similarly, in case of male literacy decadal growth rate, Bihar has 13.23percent as compared to national growth rate of 6.84 percent. As per census 2001, the female literacy rate is highest in Munger followed by Rohas and Patna districts. Table: 1.6. Percentage of Female Literacy Rate State/District Saharsa Madhepura Purnia Sitamarhi Araria Katihar Supaul Pashchim Champaran Darbhanga Sheohar Purba Champaran Kishanganj Madhubani Banka Jamui Nawada Khagariaa Samastipur Nalanda Females State/District Lakhisarai Sheikhpura Gayaa Gopalganj Jehanabad Bhagalpur Muzaffarpur Arwal Saran Begusarai Vaishali Kaimur Buxar Bhojpur Siwan Aurangabad Patna Rohtas Munger Females Rural Poverty Context of the State Poverty Level in the State The Planning Commission of India has accepted the Tendulkar Committee report which says that 37% of people in India live below the poverty line. The Arjun Sengupta Report (from National Commission for Enterprises in the Unorganized Sector) states that 77% of Indians live on less than 20 a day (about $0.50 per day). The N.C. Saxena Committee report states that 50% of Indians live below the poverty line. A study by the Oxford Poverty and Human Development Initiative using a Multi-dimensional Poverty Index (MPI) found that there were 645 million poor living under the MPI in India, 421 million of whom are concentrated in eight North Indian and East Indian statess of Bihar, Chhattisgarh, Jharkhand, 14

27 Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal. This number is higher than the 410 million poor living in the 26 poorest African nations. The states are listed below in increasing order of poverty based on the Multi-dimensional Poverty Index: Table: 1.7. Poverty Index MPI Rank States Population (in millions) 2007 MPI Proportion of Poor Average Intensity Contribution to Overall Poverty Number of MPI Poor (in millions) India 1, % 53.5% Kerala % 40.9% 0.6% Goa % 43.4% 0.0% Punjab % 46.0% 1.0% Himachal % 42.3% 0.3% 2.1 Pradesh 5 Tamil Nadu % 43.6% 2.6% Uttaranchal % 46.9% 0.5% Maharashtra % 48.1% 6.0% Haryana % 47.9% 1.3% Gujarat % 49.2% 3.4% Jammu and % 47.7% 0.7% 5.4 Kashmir 11 Andhra Pradesh % 47.1% 5.1% Karnataka % 48.3% 4.2% Eastern % 52.5% 4.0% 25.5 Indian States 14 West Bengal % 54.3% 8.5% Orissa % 54.0% 4.3% Rajasthan % 54.7% 7.0% Uttar Pradesh % 55.2% 21.3% Chhattisgarh % 53.9% 2.9% Madhya % 56.0% 8.5% 48.6 Pradesh 20 Jharkhand % 60.2% 4.2% Bihar % 61.3% 13.5% 77.3 These numbers also are more or less in line with the latest World Bank estimates of the below-thepoverty-line households that may total about 100 million (or about 456 million individuals) Poverty Estimates Tendulkar Committee The incidence of poverty, as reflected in the Planning Commission estimates based on the Tendulkar Committee s report, continues to be very high in Bihar, compared to the national average. Rural poverty in Bihar has been estimated as 55.7 percent in , compared to an all-india average of 41.8 percent. Urban poverty in Bihar has been estimated at 43.7 percent, as compared to 25.7 percent nationally. The poverty ratio for the entire population in Bihar has been at

28 percent, compared to the national average of 37.2 percent. Total urban unemployment has been estimated at 10 percent, while the rural unemployment has been at 6.8 percent. Figure 1.3. Tendulkar Committee report District wise Poverty (BPL) Estimates Government of Bihar The table below provides district wise number of BPL families as per the State Government. Table District Districts Raria Arwal Aurangabad Banka Begusarai Bhagalpur Bhojpur Buxar Darbhanga E. Champaran Gaya Gopalganj Jamui Jehananbad Kaimur Katihar Khagaria Kishenganj Lakhisarai Health and Nutrition wise BPL households BPL HHH No % BPL Districts Madhepura Madhubani Munger Muzaffarpur Nalanda Nawada Patna Purnia Rohtas Saharsa Samastipur Saran Sheikhpura Sheohar Sitamarhi Siwan Supaul Vaishali W. Champaran BPL HH No % BPL Data on seven critical indicators that reflects the status of health and nutrition among households, especially children and women was analysed. The table below compares the performance of Bihar with other states on each of these indicators. The data shows that Bihar is lagging behind the national average on all of the above indicators. Also high malnutrition levels coupled with high 16

29 mortality among children point towards poor feeding practices in Bihar. Poor access to food emanating from meager economic conditions is the prime reasons for such a situation in this State. Table 1.9. Health & Nutrition Indicators Under Five- Mortality Infant Mortality Underweight Children (%) Wasted children (%) Stunted children (%) Anaemic Children (%) Thin Women (%) India UP MP Jharkhand Orissa Chhattisgarh Rajasthan Bihar Best state 16.8 Kerala State 96.4 UP 15.3 Kerala 72.7 UP 22.9 Kerala 60 MP Source: National Family Health Survey, Punjab 35.0 MP 24.5 Kerala 56.8 UP 44.5 Kerala 78.0 Bihar 18.0 Kerala 45.1 Bihar Note:* Only those states have been selected that have under-five mortality higher than 80 per thousand live births Per Capita Expenditure In the last one year, two important aspects of human development food security and education, have been accepted as constitutional rights in India. These are important first steps to address the fact that the historically low quality of human life in the country as a whole compared to the rest of the world has further slipped down in the period of accelerated economic growth of in India. In these circumstances, human development in Bihar has the challenges of bridging a double historical gap that the distance from the world average and also from the distance from the all state average. The development gap in terms of Per Capita Development Expenditure (PCDE) between India s all- State average and Bihar can be seen underneath: Figure 1.4. PCDE Comparison Chart Title India Bihar

30 In , Bihar PCDE was less than half of the national average. This gap widened between and , but had started narrowing between and There was again a reversal in this trend in In and , there are projected spurts in PCDE in Bihar, but the overall distance from the all-state average has started widening again Migration During the last two decades both the intensity and pattern of migration in rural Bihar have considerably changed. According to the report (1998) to assess the living standards of Bihar and Uttar Pradesh conducted by the World Bank 95 percent of the migrants in Bihar are male, and migration is highest in the richest and poorest quintiles and the poorest migrate for shorter durations. Studies in north Bihar (Karan 2003) show a phenomenal increase of migration rates from 28 percent to 49 percent in 17 years of period. The proportion of migrants has approximately doubled and destination of migration has now become widespread. The nature of migration has largely changed from short-term period to long-term period of migration. The migration of workers is fairly distributed across all castes and classes and now upper castes and Muslims report more longterm migration compared to others Castes. In terms of the choice of destination, migration is now observed to be more widespread. During the early 1980s the most important destination was the rural areas of Punjab and Haryana. By the end of the 1990s migrants were opting for many other towns and cities as their destinations. Some of the new destination cities are Delhi, Bombay, Surat, Kolkata, Guwahati, Hyderabad, Nagpur etc. In fact, there has been a directional change in the destination of migrants from rural-rural to rural-urban. Migrants remit a sizeable proportion of their incomes and often work over time to earn as much as possible during their time at the destination. But the costs of such migration may be high in social and health terms: long periods of separation cause loneliness and working in industries with poor labour standards exposes workers to numerous hazards. Health complaints are common. Migrants are not fully aware of the health risks at work and often are not in a position to demand protection. The work place is unsafe. The workers have no social security, compensation to injuries, access to drinking water, and health care. In the India has the world's highest accident rate among construction workers. A recent study by the International Labor Organization shows that 165 out of every 1,000 workers are injured on the job. They are victims of constant verbal and sexual abuse, working without any grievance Redressal mechanism (Sarde-2008).The seasonal Pattern of migration has been shown in above figure, which depicts that maximum of the migrants dip down in May Vulnerabilities Household level Vulnerability As part of the household level vulnerabilities, situation in the state with respect to health and nutrition, food security and disability has been detailed in the sections below Health and Nutrition Data on seven critical indicators (already given in the table 1.9) that reflects the status of health and nutrition among households, especially children and women shows that Bihar is lagging behind the 18

31 national average on all of the above critical indicators. High malnutrition levels coupled with high mortality among children point towards poor feeding practices in Bihar. However the state has shown improvement in Immunisation coverage and institutional deliveries over the last few years. Table Comparison of indicators Indicator Children months fully immunised Institutional Delivery Source : District level household survey III, Ministry of Health and Family Welfare Inspite of these improvements, it is clear from the data that access to public health services is low for rural households. Data on the status of health infrastructure in the state supports the above statement. Table Health Infrastructure Category Required In-position Shortfall Sub-Centre Primary Health Centre Community Health Centre / Refferal Hospitals ANM Source : State Health Society, National Rural Health Mission The table above clearly shows the huge gap in health infrastructure and the resultant lack of access to public health services Food Security The Food Security Atalas of Bihar prepared by World Food Programme arrives at a district level food security outcome index based on the Under 5 Mortality Rate of children and Child under Nutrition indicators. On the basis of this index, the districts have been classified into five groups, namely, those which are secure (S), moderately secure (MS), moderately insecure (MIS), severely insecure (SIS) and extremely insecure (EIS). The classification has been done on the basis of five equal divisions of values lying between the maximum and minimum overall Food Security Outcome Index values. Figure 1.5. Food Security Atlas of Bihar 19

32 As may be observed, the secure group contains 7 districts, followed by 11 in the moderately secure group which is the largest group, 11 in the moderately insecure group, 7 in the severely insecure group, and 2 in the extremely insecure group. The Classification has been done on the basis of five equal divisions of values lying between the maximum and minimum overall Food Security Outcome Index Values. Furthermore, the 38 districts of the state have been ranked based on the above index. Table Indicators Used to Compute Food Security Outcome (FSO) Index Districts Under-Five Mortality Rank Under Weight 20 Rank FSOI Rank Araria Aurangabad Banka Begusarai Bhagalpur Bhojpur Buxar Darbhanga Gaya Gopalganj Jamui Jehanabad Kaimur Katihar Khagaria Kishanganj Lakhisarai Madhepura Madhubani Munger Muzaffarpur Nalanda Nawada W. Champaran Patna E. Champaran Purnia Rohtas Saharsa Samastipur Saran Sheikhpura Sheohar Sitamarhi Siwan Supaul Vaisali

33 The two most food insecure districts are Araria and Kisanganj. As may be seen from Map, these lie in the north-east corner of Bihar and belong to the least developed region. As brought out earlier, the Northern portion of Bihar is by and large less developed than the Southern region. Among the seven districts in the very insecure category, Katihar, Madhepura, Purnia, Sheohar and Sitamarhi also lie in the Northern least developed region. Thus these nine districts belonging to the severely or very food insecure category need to be the special target of policies to eliminate food insecurity. The ten districts in the moderately insecure (MIS) category comprise a mix of districts. Supaul, Purbi Champaran, Paschim Champaran and Madhubani all lie in the Northern region and belong to the low development category. Jehananbad belongs to the Southern region. The remaining districts all lie in the Southern region, which is relatively more developed. In contrast, the eighteen districts belonging to the secure (S) and moderately secure (MS) category are mostly located in the Southern region with the exception of two or three districts, e.g. Gopalganj, Saharsa and its neighbour Khagaria. Although the overall food availability in rural Bihar has improved over the years, the per capita availability of food grains in Bihar is among the lowest in the country. The overall per capita availability of cereals has declined over the years. Approximately one-fourth of all the households face an acute food crisis and does not get sufficient food round the year. According to a study conducted by the Institute for Human Development (Sharma, et al., 2000), the percentage of households not getting enough food round the year has come down to 26 per cent in from 68 per cent in (Table below). The situation of food availability to the landless and agricultural labour households, although considerably improved, is still grim. Almost two-thirds of the households of agricultural labourers find that they do not get enough food round the year. Table Percentage of House Hold getting Insufficient Food Type of HH % of HHs getting Insufficient Food Land Owned (in acres) 82 Land less Up to to to B. Social Group Agriculture labour Poor peasants Big peasants The study shows that there is a period of near starvation for at least two to three months (from August-September to October-November), coupled with a period of general food shortage for at least another two to three months during other off-seasons (Sharma, et al., 2000). Apart from this, the period of shortage and starvation varies widely across different regions and population groups. Since most of the households belonging to the Scheduled Castes, agricultural labour and poor peasants depend mainly on currently produced cereals; the period of food shortage is the longest for them. The analysis of the food security context in the state clearly reveals that food insecurity is a major vulnerability issue being faced by the rural poor in Bihar. 21

34 Disability Profile of the State As per the WHO estimation in the Bihar State Policy on disability, it is approximately 10% of the total population who suffer from some or other kind of disabilities. However, as per the Census 2001the total disabled population in Bihar is 18, 87,611, which is 3.2% (approx.) of the India s total population. 16, 92,454 population which is approximately 90% of the total disabled population lives in the rural Bihar. The total disabled male population is 11, 31,526 (60 % approx.) as against the female population of 7, 56,085 (40 %). In terms of category wise distribution of disability in the state, visual handicapped is 53% followed by 27 % locomotors disability against the total disabled population. Out of the total visually and speech handicapped population, female (44.64 %) and male (55.53%) population and female (40.83 %) and male (59.16 %) are affected respectively in the rural area of Bihar. The table below shows the the division of male and female among various types of disable groups. Table Disability Profile of the State Disability Population Status Total Rural Male Female Total Visual Speech Hearing Locomotors Mental The disability in terms of speech and hearing is 11% of the total disabled population whereas the intellectual handicapped is 9% of the total disabled population. Out of the total hearing, locomotors and intellectual disability female (41.27%), female (32.30%) and female (35%) respectively State / District level Vulnerabilities As part of the state / district level vulnerabilities, situation in the state with respect to social vulnerability, drought and flood conditions and naxalism has been detailed in the sections below Social Vulnerability The social vulnerability of a rural household to poverty is determined both by its asset holdings as well as its social standing vis-à-vis religion and caste. In the rural areas, especially in Bihar, land is the principal base of occupation and, quite often, it is probably the only occupational option. BRLPS had conducted a study on the subject in The study used the criteria of proportion of landless, SC/ST and Muslim households to map the social vulnerability situation in the state. District wise data on the above criteria is provided in the table below. 22

35 Table District wise Indices for Vulnerability Division/ District Rural workers engaged as agricultural labourers in %age Vulnerability Criteria SC/ST among rural population in %age 23 Muslims in among rural population in %age Rank with respect to combined Vulnerability Index Patna Division Patna Nalanda Rohtas Kaimur Bhojpur Buxar Magadh Division Gaya Jehananbad Arwal Nawada Aurangabad Bhagalpur Division Bhagalpur Banka Munger Division Munger Lakhisarai Shekhpura Jamui Khagaria Begusarai Saran Division Saran Siwan Gopalganj

36 Vulnerability Criteria Division/ District Rural workers engaged as agricultural SC/ST among rural Muslims in among rural Rank with respect to combined labourers in %age population in %age population in %age Vulnerability Index E.Champaran W.Champaran Muzaffarpur Sitamarhi Sheohar Vaishali Darbhanga Division Darbhanga Madhubani Samastipur Koshi Division Saharsa Supaul Madhepura Purnia Division Purnia Araria Kishanganj Katihar Bihar

37 Table Catagorisation of districts Above Average Above Average Average Below Average Below Average Kishanganj Nawada Saharsa Madhubani Munger Araria Kaimur Jamui Khagaria Gopalganj Purnia E. Champaran Arwal Banka Siwan Gaya Sitamarhi Nalanda Rohtas Bhagalpur Katihar Samastipur Muzaffarpur Begusarai Buxar W. Champaran Aurangabad Sheikhpura Lakhisarai Bhojpur Sheohar Madhepura Vaishali Jehananbad Saran Darbhanga Supaul Patna The table indicates that 23 districts are vulnerable (average and abobe) and needs attention to address the issue Drought Southern part of Bihar has traditionally been prown to severe droughts. The state faced a serious drought arising out of scanty rainfall during 2009 south west monsoon. The rainfall deficit till 6 th Aug, 2009 was 42%. 28 Districts out of 38 Districts were declared drought hit that year. The arrival of monsoon in the State was delayed by two weeks and during the peak sowing season of the main kharif crop, the rainfall deficit was more than 20% and shortfall in crop coverage more than 60 % of the entire State. Not only the last year, the state has faced either severe or partial hit of drought seven times in last 10 years Floods Bihar is India s most flood-prone State, with 76% of the population in the north Bihar living under the recurring threat of flood devastation. According to some historical data, 16.5% of the total flood affected area in India is located in Bihar while 22.1% of the flood affected population in India lives in Bihar. About 68,800 square kilometers (26,600 sq mi) out of total geographical area of 94,160 square kilometers (36,360 sq mi) comprising 73.06% is flood affected. Floods in Bihar are a recurring disaster which on an annual basis destroys thousands of human lives apart from livestock and assets worth millions. Out of 38 Districts, 28 districts in the state, mostly in the North Bihar, which are affected by floods almost every year. These districts are declared as flood prone which is also shown in the Map. Figure 1.6. Flood zones of Bihar 25

38 The link between India and Nepal through the Kosi River is one of the main reasons for the flood in Bihar. Rainfall in Nepal overloads dams and lead to flash floods in the Bihar region. Geographically Nepal is a hilly region. When heavy rains occur the water flows to the Kosi River. When the water level rises too high, Nepal opens the shutters of Kosi Barrage Pool to protect the Kosi River dams as well as the bridge. This causes water logging in the Gangetic plains of Bihar. The large amount of water discharged from Nepal through Kosi Barrage mainly reaches the Bagmati, Budhi Gandak and Ganges rivers, causing them to break the banks and over flow. In order to fight the menace of disaster, the state government has taken steps right from the state to the village level Left Wing Extremism (LWE) In Bihar, the LWE Movement was started by several groups including the Maoist Coordination Centre or the MCC, way back in the late seventies. They were the armed squad of the erstwhile underground Communist Party of India Marxist-Leninist (Liberation) and were founded to counter oppression of the upper caste landowners. The movement as witnessed in Bihar is thus entirely different from the other states. The figures below show the LWE affected zones in the state. Figure 1.7. Indian Scenario Figure 1.8. LWE affected districts As indicated, percentage area is moderately affected by LWE while percentages is marginally affected. Moderately affected Districts are Rohtas, Jehananbad, Aurangabad, Gaya, and Jamui whereas marginally affected area are Champaran (W+E), Sitamarhi, Nawada, Nalanda, Patna, Bhojpur and Kaimur Context of Social Inclusion and Social Mobilisation The sections below provide a description of overall status of the SHG mobilisation and the inclusion of poorest groups like SC/STs in their fold Status of SHG Mobilisation in the State The SHG formation history in the state refers to 90s, when NGOs like Adithi, ASSEFA took an initiative to form SHGs with support of Central projects like Rashtriya Mahila Kosh. But subsequently the SHG formation scaled up with government programmes like SGSY, PACS, Mahila Samakhya, 26

39 WDC etc. 30,79,380 HHs have meen mobilized in to 2,56,615 SHGs as a result of the various government and non government agencies Efforts of Govt. Departments / Agencies The Departments of Rural Development, Women and Child Welfare, Finance etc. have been playing an important role in the promotion of the SHG movement in Bihar. Specifically, the Dept. of RD through SGSY, which was implemented through the DRDAs has promoted 1,79,830 SHGs and has emerged as the biggest player in terms of Numbers. Aiming at women empowerment in the state, Woman Development Corporation under Dept. of Social Welfare has formed and nurtured SHGs in 72 blocks with support of the 62 local NGOs. With various interventions and models, WDC as a whole has promoted 29,200 SHGs. Starting in 2007, with a dedicated Structure and systems, BRLPS under department of Finance and with support of World Bank has contributed significantly towards SHG movement of the state. BRLPS has not only created an institutional platform, but also added value to it with quality capacity building inputs and sectoral livelihoods interventions Efforts of NABARD and other Agencies The banker s mandate to finance the poorest of the poor community has emerged as another significant player in the state. With support of the local governance and NGOs, The NABARD has promoted 8,026 SHGs. When it comes to early projects which were based on the SHG model in the State, Rashtriya Mahila Kosh and Indira Mahila Yojna are the major projects. The DFID funded Poorest Area Civil Societies (PACS) also contributed very much to the SHG promotion in the state NGO Efforts Most of the above projects, the model of implementation has been through support of NGOs. In case of BRLPS, the dedicated structure has been strongly adopted for social mobilization. Some of the NGOs like NIDAN, CENCORD etc. have also contributed for social mobilization through SHG formation with own initiatives. An estimate of SHGs formed by different agencies / programmes is given in the table below. Table SHG formed in the State by various agencies No. of SHGs promoted (Till March 2011) No. of SHG NABARD 8,026 SGSY 1,79,830 PACS 4,500 Bihar Mahila Samakhya 7,908 WDC 29,200 BRLPS 25,206 NGOs Own Initiation 1945 TOTAL

40 The district wise split of the above SHGs is given in the table below. Table District wise SHG Formed Sl. Districts Total Sl. Districts Total 1 Araria Madhepura Arwal Madhubani Aurangabad Munger Banka Muzaffarpur Begusarai Nalanda Bhagalpur Nawada Bhojpur Patna Buxar Purnia Darbhanga Rohtas E. Champaran Saharsa Gaya Samastipur Gopalganj Saran Jamui Sheikhpura Jehanabad Sheohar Kaimur (Bhabua) Sitamarhi Katihar Siwan Khagaria Supaul Kishanganj Vaishali Lakhisarai W. Champaran 7471 Total Inclusion of the Poor in to SHGs A critical indicator for inclusion of the poorest is the proportion of Sc/STs that have been mobilized. The table below throws light on the above proxy indicator. 28

41 Table Category wise distribution Sl. District Total SC Population Total ST Population Total SHG HH Inclusion of SCs / total SC Inclusion of STs / Total ST SC % in SHGs ST % in SHGs 1 Araria Arwal Aurangabad Banka Begusarai Bhagalpur Bhojpur Buxar Darbhanga E.Champaran Gaya Gopalganj Jamui jehanabad Kaimur Katihar Khagaria Kishanganj Lakhisarai Madhepura Madhubani Munger Muzaffarpur Nalanda Nawada Patna Purnia Rohtas Saharsa Samastipur Saran Sheikhpura Sheohar Sitamarhi Siwan Supaul Vaishali W.Champaran Total The above data is based on Inclusion of BRLPS, Federation Data of WDC and Economic inclusion data of SGSY. 29

42 Analysis of the above data refers that, we have covered a little among the vulnerable class like SC and STs. Only 11.94% of total SC households of the state have been included under the economic activities in major SHG projects. Similarly only 12.59% of the Total ST households of the state have been taken in the economic activities fold. Secondly, only % of SCs and 0.70% of STs are included in the SHG s economic activities. The factors are multiple and one major among it is limited area intervention in various schemes. A large general intervention with focus on quality institution building and saturation of the social mobilisation needed Context of Financial Inclusion The sections below provide a detailed description of both supply side issues (Banking infrastructure, CD Ratio, Manpower position) and demand side issues (SHG Bank Linkage etc) of the financial inclusion landscape of the state Banking Infrastructure Presence of Physical Infrastructure As regards the existence of the physical presence of banking branches in the state at the end of March 2010, total number of branches of commercial banks in Bihar stood at % of these branches are located in rural areas, 22.45% in semi-urban and 19.83% in urban areas. The growth in the number of branches on yearly basis has been following: Table Distributions of Commercial Banks Branches in Bihar % share in total Year End (March) Total Growth Rate % Rural Semi Urban Urban Source: The economic survey, Government of Bihar,

43 The graph below shows growth rate of commercial banks from 2005 to 2010: Figure 1.9. Growth Rate of Commercial Banks Source: The economic survey, Government of Bihar, In the national context, Bihar accounted for only 4.76% of all the bank branches in the country at the end of March 2009 and is far behind UP s share of nearly 12% and Maharashtra s 9.62%. Bihar s share in the total bank branches has remained same over past few years at little less than 5%. Following is the data in the National Perspective: Table Distribution of Branches of Commercial Banks among states ( ) Name of the State Andhra Pradesh % share in state Total Rural Semi Urban Urban State % Share In All Total India Bihar Gujarat Haryanaa Himachal Pradesh Karnataka Kerala Madhya Pradesh Maharashtra Punjab Tamilnadu Uttar Pradesh West Bengal All India

44 Presence of Human Resources to support the Banking Sector It is important to know and analyze the presence of human resources to run the banking sector across the country. From the data given below, it is explicitly clear that as on March 2009, Bihar accounts for only 3.43% of all the employees of scheduled commercial banks in India. Table Distribution of Employees of SCB s (As on March 31, 2009) State Officers Clerks Sub-ordinates Total Number Share (%) Number Share (%) Number Share (%) Number Share (%) Haryana Punjab Rajasthan Bihar Orissa West Bengal Jharkhand Chhattisgarh Madhya Pradesh Uttar Pradesh Uttranchal Gujrat Maharashtra Andhra Pradesh Karnataka Kerala Tamilnadu All India Source: Statistical Tables Relating to Banks in India, , RBI The data makes it explicit that Bihar is lagging a lot in terms of presence of human resources in the banking sector and states like Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, West Bengal, Uttar Pradesh and others are much ahead in terms of the human resources manning the bank branches. This is adversely affecting the CD ratio in the state Deposits and Credits The scenario of deposits and credits in the state is an important indicator for assessing the development of economic activities in the state. An attempt has been made to portray the data in the national perspective and make a comparison. Following is the data in terms of deposits and credits at the national level including that of Bihar: 32

45 Table State wise Deposits and Credit of SCB s in India (As on March 31, 2010) Deposits Credits State % % % % Amount Amount Amount Amount share share Share Share (in cr.) (in cr.) (in cr.) (in cr.) in total in total in total in total Haryana Punjab Rajasthan Bihar Jharkhand Orissa West Bengal Chhattisgarh Madhya Pradesh Uttar Pradesh Uttarakhand Gujrat Maharashtra Andhra Pradesh Karnataka Kerala Tamilnadu All India Source: Statistical Tables Relating to Banks in India, , RBI Figure Serving population / branch Besides this, it shall be important to look at the dataa related to per capita deposits and credit at the state level and make a comparison in the national perspective. In order to meet the purpose, the per capita deposits and credit of scheduled commercial banks in the major Indian statess are shown in table It is a matter of notice and concern that both in terms of per capita deposit and per capita credit, Bihar ranks the lowest among the major Indian states. The population served by an independent unit of bank office remains the highest in the country. Following is the data about the per capita deposits and credit: 33

46 In terms of population, estimates suggest that the branch population per bank in Bihar is approximately persons (23924 number of people per branch to be specific) in comparison to the national average of States like Karnatakaa and Andhra Pradesh have average population per bank office lower than national average, at and respectively. The rural urban divide in Bihar is also very stark with each rural branch serving people as compared to people in the urban areas Credit Deposit Ratios of Scheduled Commercial Banks The Credit-Deposit ratios of Bihar since , according to the data released by the State Level Banker s Committee (SLBC) chaired by the State Bank of India are presented in table below: Table Credit Deposit Ratio of All Banks in Bihar State Deposit ( crore) Credit (crore) (Till June 2010) Source: The economic survey, Government of Bihar, CD Ratio The graph showss CD ratio of all banks in Bihar since till (June 2010) based on data released by State Level Banker s Committee: Figure CD Ratio of Bihar The CD ratio is conventionally calculated on the basis of credit sanctions. This connotes the extent to whichh the banks employ the deposits mobilized in a state to meet its credit demands. However, a low CD ratio based on credit sanctions would indicate the migration of deposits from one state to 34

47 another, while a low CD ratio based on credit utilization would indicate the migration of credit. A comparison between these two types of ratios, therefore, assumes importance. For the country as a whole, these two ratios would evidently be identical, but the utilization ratio would be larger in respect of less developed states. The difference between these two types of ratios has narrowed down substantially in the recent years because of the massive expansion of branches, especially in rural areas and also due to the change in borrower s attitude to seek credit from the banks located at the places of actual utilization. From the table 1.4.6, it may be noted that Bihar s utilization ratio had started declining from 49% in to 45 percent in and then dropped abruptly to 26% in The higher ratio till indicated a lesser migration of credit from the state in that year. Table Credit Deposit Ratio of the SCB s in terms of Sanction and Utilization 7-Mar 8-Mar 9-Mar 10-Mar State As per As per As per As per As per As per As per Sanction utilization Sanction utilization Sanction utilization Sanction Haryana Punjab Rajasthan Bihar Jharkhand Orissa West Bengal Chhattisgarh Madhya Pradesh Uttar Pradesh Uttaranchal Gujrat Maharashtra Andhra Pradesh Karnataka Kerala Tamilnadu All India Source: The economic survey, Government of Bihar, Credit Deposit Ratio of Districts The data in the table below depicts the CD ratio of all Scheduled Commercial Banks as well as the Regional Rural Banks in all the 38 districts of Bihar as on June 2010: 35

48 Table District wise Credit Deposit Ratio in Bihar District Patna Arawal Aurangabad Bhojpur Buxar Gaya Jehanabad Kaimur Lakhisarai Nalanda Nawada Rohtas Araria Jamui Kishanganj Madhepura Purnea Saharsa Supaul Darbhanga E.Champaran Gopalganj Madhubani Muzaffarpur Saran Siwan Vaishali W.Champaran Katihar Sheikpura Banka Begusarai Bhagalpur Munger Sheohar Sitamarhi Khagaria Samastipur Source: The economic survey, Government of Bihar, Status of Micro finance in the state of Bihar Bihar is a state that has approximately half of its population living below the poverty line. Poverty is manifested not only in terms of lack of finance available to the poor people but also with the fact that access to finance is also limited in its scope. Thus the entrepreneurial abilities of the people have 36

49 still not been unshackled for lack of finance. Still people are dependent on non-formal source of finance from money lenders. This form of finance is not only exploitative but also is not sufficient enough to make an impact on the livelihood dimension of a household. Poor are the greatest and worst victim of such a lack of access to the mainstream financial institutions. Still poor is not considered a bankable client for the mainstream financial institutions. In such a scenario, initiatives by the project like JEEViKA, WDC and similar other institutions comes as a hope for the poor as it aims at not only ensuring the access of finance by the poor from the mainstream financial institutions but also institutionalizing the process for greater sustainability. This means that a lot of effort is being put to nurture the SHG s on issues related to capacity building, Financial Literacy and credit counseling in the form of Micro Plans initiated and making provisions for assured improved service from the banks by putting Bank Mitras in the related branches of operation. Of late the process of impacting livelihoods through the process of SHG s has started showing its result in terms of not only social empowerment but also financial strengthening for the members of the Self Help Groups. The idea is getting acceptance and momentum as the project has entered in agreement in form of MOU with major commercial banks and regional rural banks. At the same time, sensing an opportunity and need to strengthening SHG movement in the state, SLBC has formed a core steering committee to look in to the specific issues related to SHG s and Financial Inclusion. Miles are yet to be covered before it brings smile on the face of the poor people. Nonetheless, the process has started and results are likely to impact a poor household in a positive way. The status of financing to the poor through banks or the MFI s is not very significant in dimension as regards the state of Bihar. Some of the data related to it are following: Total Number of SHG s Bank credit linked during : Total amount of Bank credit linkage during : Rs Million Number of SHG s Bank credit linked during (up to Sept): Total Amt. of Bank credit linkage during , up to Sept: Rs Million Total Number of SHG s Bank credit Linkages as on 31 st March 2010: Total Loan outstanding as on March 2010: Rs Million Total Loan Outstanding of SHG s across the country : Rs Million Percentage share of Bihar in terms of outstanding at National level: 1.98 % The above mentioned data is in relation to the Bank credit Linkages provided to SHG s. The SHG portfolio in the state is likely to take a leap in coming years with the support of institutions like JEEViKA, Women Development Corporations and many others which are working on a similar pattern. The project JEEViKA itself anticipates to link around groups worth Rs. 900 million. The number and amount shall increase in geometric progression with the saturation of the project in existing areas and scaling in the new areas. At the same time, there are some prominent Micro Finance Institutions that are working in the state and providing financial support. In most of the cases the modus operandi is working through the Joint Liability Groups. The data related to them are following: Total number of JLG s financed during Lakhs Total Number of members financed during Lakhs Total amount disbursed during Rs Million Total expected disbursement during Rs Million. 37

50 Sl The interest rates charged by the prominent MFI s range from 24 to 30% for most of the prominent MFI s. They practice both fixed rate of interest as well as diminishing balance rate of interest. The above mentioned rate is after converting the fixed rate of interest in to diminishing balance. However, there are few smaller ones which charges between 30 to 32% to bring operational sufficiency Outreach of Major MFIs through JLG model IN BIHAR The outreach of major MFIs through the JLG model is given in the table below. Table Coverage of JLG s by MFI s in state of Bihar Growth % No. of No. of Name the MFI of No. of JLG Beneficiari es Amount (Rs Lakh) No. JLG of Beneficia ries Amount (Rs. Lakh) of loan amt. in over Cashpor Micro Credit % 2 C-DOT % 3 Saija Micro- Finance % 4 Basix SKS % 6 BDT % 7 Trust Micro Finance % 8 SURAJE % 9 Bandhan % 10 Mass Care % 11 Creation Welfare % 12 Gramin Jan Kalyan % Parishad Grand- Total % Source: Report from CIMP (Chandra Gupta Institute of Management, Patna) The SHG Bank Linkage Program The self-help groups and SHG bank linkage programs implemented by commercial banks, RRB s and Cooperative Banks have emerged as major microfinance program in the country. The graph below shows the number of SHGs which were credit linked to banks and that stands at cumulative number of SHG s. The total credit flows to these SHGs had been Rs.1003 crores cumulatively till June The trend of the development is mentioned below: 38

51 Table Year wise progress of SHG Bank Financing in Bihar Year No. of SHGs with bank linkage Up to Total Amount of credit (Rs. crores) Source: SLBC (Obtained From) Economic Survey If the comparison of the growth of SHG Bank Linkage is made in the national perspective, things become crystal clear in terms of the journey the state has to make in order to reach to the poor through SHGs. Following is the data in thatt context: Table Growth of SHG Bank Linkage in selected states (Cumulatively) Name of the state Maharashtra Rajasthan Uttar Pradesh West Bengal Orissa Madhya Pradesh Bihar India Source: The economic survey, Government of Bihar, Figure Graphical Representation of Table (Growth of SHG Bank Linkages) 39

52 Despite the reasonable number of SHGs linked to bank, the growth from 2007 to 2010 has been around 13% for Bihar, where as it is 66% for India. It contributes only 1.69% of all SHGs in India as on 31 st March Other states have far better penetration of microfinance compared to Bihar. A few reasons cited for this are skewed distribution of SHGs across the districts, weak infrastructure, increasing costs and low efficiency, caste conflicts, extremists activities, conservative attitude of bankers towards SHGs, fund constraints for startup, the absence of reputed NGOs and low awareness about SHG lending among stakeholders are major handicaps in the spread of SHG-Bank linkage program. However of late there has been a very favorable environment being generated by the government and the banking sector and SHG bank linkage is given high amount of focus. There is tremendous potential to leverage the strength of SHG s and integrate it with the policy of Financial Inclusion as stipulated by the banking industry. The bank loans outstanding against SHGs from commercial banks, RRBs and cooperative banks were Rs557 crores as on 31 st March, The total savings of 1.4 lakh SHGs amounted to only Rs 85 crores. Table Bank Loan outstanding against SHG s as on 31 st March 2010 (Rs Crores) Bank Loans Outstanding against SHGs in the National Perspective Commercial Cooperative RRB s Total Banks Banks State No of SHGs Loans O/s No of SHGs Loans O/s No of SHGs Loans O/s No of SHGs Loans O/s Maharashtra Rajasthan UP West Bengal Orissa M P Bihar India Source: The economic survey, Government of Bihar, Regional Rural banks play an important role in facilitating the SHG Bank Linkage program in the state. Bank Financing by RRB s as on March 2010, by 4 RRB s together stands at Rs crores. This much of amount has been provided to 10,237 numbers of SHGs. The financing by RRB s to SHG s is about 11% of total credit of Rs1008 crores to SHGs in Bihar. The date related to the same is mentioned below: Table Micro financing by RRB s (March 2010) No of SHG with Bank Name of the RRB Linkage Madhya Bihar Gramin Bank Samastipur Gramin Bank Kosi Gramin Bank Uttar Bihar Gramin Bank Total Source: The economic survey, Government of Bihar, Amount of Credit (In Rs Lakhs) 40

53 * The dataa presented above has the figures distinctively for Kosi Gramin Bank and Uttar Bihar Gramin Bank. Of late these 2 banks have been amalgamated and there exists only one Bank with name Uttar Bihar Gramin Bank. The following graph represents the status of Bank Linkage with different RRB s. Figure Bank Linkage with RRBs Source: The economic survey, Government of Bihar, The above mentioned figures and graphs are symbolic of the fact that Regional Rural Banks are going to play a vital role in the linkage of the SHG s with Banks. The network of RRB s transcends to the most interior areas and thus can very instrumental in ensuring that poorest of the poor and vulnerablee section of the society which have been till now away from the mainstream financial systems make an access to the banking sector for fulfilling one s needs related to livelihoods and other social support activities. They shall be instrumental in paving the way for higher saving tendency amongst the community. The SHG s in general are formed and nurtured to function as thrift and credit entities to meet the requirements of the individual households. It is important to facilitate better savings habit with group in order to make it sustainable. The above mentioned data is mostly related to the credit off by the SHG s from the banks. While this is important, equally important is the aspect of savings of SHG s with different banks. Following is the dataa related to the savings component of SHG s with Banks: Table Savings of SHG s with Banks as on 31 March 2010(Amount in Rs. Crores) Commercial Cooperative RRB s Name of the Banks Banks Total State No. of No. of Savings Savings of No. of Savings SHG s SHG s SHG s SHG s Savings Maharashtra Rajasthan UP West Bengal Orissa MP Bihar India Source: The economic survey, Government of Bihar,

54 Role of SGSY in Financial Inclusion context and its status SGSY is a major ongoing program for self-employment of rural poor in effect from April It aims at establishment of large number of micro enterprises in rural areas based on the area s potential and skill of the poor. This comprehensive program includes all aspects of self-employment such as organizing the poor in form of SHGs, training, loans, basic infrastructure and marketing etc. SGSY is the biggest poverty alleviation program in Bihar. Different banks in collaboration with rural development departments have been participating in the scheme in a big way. The SGSY program is a major conduit of bank linkage of SHG s with banks and thus the functioning of SGSY has its deep impact on the SHG movement in the state. It shall be important to detail the progress of SGSY in the state and for the same following is the table depicting the progress of Banks under SGSY program: As regards the status in the year , at the National level, the data for the number of SHG s assisted under SGSY remains as mentioned below in the table: Table Performances of Banks under SGSY (Amount in Rs, Crores) Indicators Number Amount Number Amount Number Amount Target 1,88, ,96, Proposals Received 85, , Proposal Sanctioned 79, , Proposal Disbursed 76, , Achievement in % (Sanction/Target) Achievement in % (Disbursement/ Target) Proposal Returned/Rejected 5, , Proposal Pending for Disbursement 3, Source: State Level Banker s Committee The table below shows the number of SHGs assisted under SGSY during Table Status of SHG s assisted under SGSY as on Nov 2010 States Target Achievement Percentage Andhra Pradesh Bihar Karnataka Maharashtra Tamil Nadu Uttar Pradesh Source: SGSY/NRLM performance analysis, According to performance analysis of SGSY/NRLM for PRC meeting held in December 2010, Bihar s achievement in utilization level of funds stood at 21.45%, below national average of 50%. States like Andhra Pradesh and Tamil Nadu had high percentage of fund utilization at 72.47% and 94.05%. The 42

55 national level % achievement of swarozgaries assisted against the target was 41%. Bihar was one of the states which could not achieve even 50% of the target and stood at 20.40%. The coverage of SC/ST at the national level was 51% that of Bihar was 40.78%. Bihar had 66.9% achievement in assisting women swarozgaries whereas the national average was 66.5%. The table below shows the percentage of utilization against total funds under SGSY during (As on Nov 2010). Table Status of utilization of fund in the SGSY Name of the state Total fund available(lakhs) Utilization(Lakhs) % utilization Andhra Pradesh Bihar Karnataka Maharashtra Tamil Nadu Uttar Pradesh Source: SGSY/NRLM performance analysis, The above mentioned data makes it amply clear that a lot is desired to be done with regard to the streamlining of the systems for the leveraging of financial services from the mainstream financial institutions. A dedicated approach is required to not only form and nurture the SHG s across the area but also put systems in place to sensitize bankers for taking a positive look at the portfolio of SHG s. The systems of capacity building and transparent management are required to be put in place at the SHG level to garner faith of the mainstream financial systems. The data mentioned above also points to the fact that the present status of financing from the banks is much short of desired level and multifaceted strategy has to be put in place for ensuring better financial linkage from the banks Role of Women Development Corporation in SHG movement and its status The Women Development Corporation (WDC) works in close conjunction with Dept. of Welfare, Govt. of Bihar and is the nodal agency for implementing women development programmes of the State. WDC endeavours to increase the income of poor women through their involvement in income generating activities thereby contributing to poverty alleviation through microfinance. For the economic, social and cultural empowerment of women the Mukhya Mantri Nari Shaki Yojana has been conceived and is being implemented since the year Earlier SHGs were organized and nurtured for microfinance activities under projects of Swashakti (follow up of the World Bank/IFAD project), Swayamsiddha (working through Community Development Project Offices), Swavalamban;, and DEEP (with the Ministry of Social Welfare, Government of Bihar focusing on women from scheduled castes). WDC acts as the main funding and selection agency of NGOs that implement and facilitate its policies and strategies. WDC also plays a key role in promoting the project concept as well as guiding, coordinating and monitoring the activities of these NGOs. The data related to WDC can be summarized as mentioned below: 43

56 Table WDC Progress Update (till March 2011) Sl. Particulars Progress (till March 2011) 1 No. of Working Districts 27 2 No. of Working Blocks No. of SHGs formed Total Members No. of Villages Covered No. of Groups A/C opened Total SHG Credit Linked with Banks Amount of Credit Linkage Rs 270 Million Report from Women Development Corporation Role of BRLPS (JEEViKA) in SHG movement and its status The Government of Bihar (GoB), through the Bihar Rural Livelihoods Promotion Society (BRLPS) is spearheading an ambitious World Bank aided Bihar Rural Livelihoods Project (BRLP). It aims to promote rural livelihoods and enhance social and economic empowerment of the rural poor and women. The project is supposed to work in 4,000 villages of 42 blocks within the six districts (Gaya, Muzaffarpur, Nalanda, Madhubani, Khagaria and Purnea) of Bihar in a phased manner. The project seeks to achieve saturation within the targeted blocks during the project period. In order to promote sustainable livelihoods of the poor & women, it assumes significant importance that continuous and supportive role is played by different stakeholders like that of mainstream financial institutions and other market players. In order to bring different players achieve the aim of economic prosperity in the state of Bihar, BRLPS envisages to make significant strides in terms of building and nurturing quality institutions like that of SHG s and their Federations. BRLPS has to play an important role in the nurturing of the community institutions and ensuring their inclusion both in terms of financial and social aspects. Some of the developments related to Jeevika have been mentioned as below: Table BRLPS Progress Update (till March 2011) Sl. Particulars Progress (till March 2011) 1 No. of Working Districts 9 2 No. of Working Blocks 55 3 No. of SHGs formed Total Members No. of Villages Covered No. of Groups A/C opened Total SHG Credit Linked with Banks Amount of Credit Linkage Rs 490 Million 9 Total savings by SHG members Rs 230 Million 10 Inter-Loaning of the Savings amount Rs 530 Million Source: Quarterly Report of BRLPS 44

57 Micro Insurance Sector It is interesting to note that except for the primary sources there is a complete dearth of documentation in the area of insurance at regional level particularly in Bihar. The aggregated data for the total number of policies sold and actual premium accrued is not available. Hence to analyze the actual number of people insured becomes an interesting area of primary research, which has still not been covered either by the researchers of India or any international agency. In addition to this, the regional offices covering more than one state are lacking the concept of data aggregation. Bifurcation of the data state wise is entirely out of ambit of this study. Hence in absence of aggregated data it is very difficult to portray an accurate picture of the current insurance scenario in Bihar. Keeping this backdrop in mind the status can be viewed from the references stated in various newspapers, magazines and websites and by reviewing certain indexes like a) Total population vs. insurance coverage, b) Governmental program and policies for risk mitigation, livelihood and social security, c) efforts made by NGOs and civil societies, d) Players from the supply side NGOs and MFIs and other intermediary agencies inclusive of financial institutions. Rajesh Sood, Executive Director, Max New York Life opines that studies reveal that only 1.5 percent of the total population in Bihar has opted for insurance cover. On the other hand the national indices, according to various sources, in terms of coverage of insurance do not exceed 10 percent of the total population. However, the fact remains that the insurance market is growing by 20 percent per annum keeping this fact in view, roughly a minimum of 12 lakh 45 thousand people are insured in Bihar and by any standard it cannot exceed 83 lakh populations in Bihar. It is interesting to note that the insurance coverage in Bihar is positioned in a way where the urban population has been insured for life and assets and insurance coverage in the rural area is almost decimal. The rural coverage in Bihar is normally done to satisfy the regulatory norms of social and rural obligation. A core study however reveals that even this compliance is fabricated by issuing insurance in urban areas based on rural addresses. If we view the players particularly in terms of insurance companies functional in Bihar, we would find an interesting field that besides the governmental insurance company operational in life and general there is a total absence of private player in general insurance in Bihar. It is true that ICICI Lombard made some efforts in the year but closed down their operations for reasons best known to them. However, since Bajaj Allianz general insurance has started functioning in Bihar. As far as in the contribution of NGO-MFI is concerned in terms of insurance NIDAN has an outstanding position because the organization has made a conscious effort in this direction and this year the target was to rope in 2 lakh lives. Concrete figure of 40 thousand life with remarkable process and terms of claims is already documented by them. They had a system in conference on micro insurance along with their network partners since October In the field of micro insurance and rural insurance the role of AVARAN cannot be undermined in terms of the training being imparted by them. The organization has made efforts to sensitize 20 implementing agencies for rural and micro insurance. They have done a need assessment in the rural areas of Bihar and the risks have been clearly identified for redressal through insurance. As a result the product has been designed with simplified processes and systems at affordable price at the doorsteps of rural poor. The organization has bridged the gap on the demand and supply side and is in the process of continuous development of need-based product and capacity building. 45

58 Except for SEWA s bundled product promoted by NIDAN, the concept of buying the bundle product at a low cost is absent. The demand and supply in Bihar is done on a piecemeal basis and the emphasis is health, life or accident. The coverage of assets is not on a priority basis though recurrent floods in Bihar are an annual phenomenon. NIDAN as one among the major and first MI promoting agency, began with linkage with LIC, Group Insurance Scheme and with NIC with Medi-claim. Poor had multiple insurance needs. Thus after exploring various schemes, it finally decided to come out with a unified scheme with multiple benefits in one package being run by Vimo-Sewa. It covers life, health, asset and disability benefits for self and spouse at a low premium. Livestock Insurance: The Bihar Dairy Cooperative through its huge network has sold more than 55,000 livestock policies Livelihoods Context The rural inhabitants of Bihar depend on multiple sources of income for their livelihood. The most common livelihood options in the rural area for the poor is wage labor in agriculture land, farming in the small patch of land or in leased land or in sharecropping land, livestock husbandry such as milch cattle and small ruminant rearing, practicing fishery, cultivating makhana, practicing apiculture, etc. The commonly found non-farm sector is bangle making, vegetable vending, petty shop, arts & crafts, carpentry, black smithy, etc. The table below indicates a list of opportunities across various sub-sectors. Table Livelihoods opprtunities District Agriculture Livestock Enterprises Araria Paddy, Maize, Jute Cow, Buffalo, Goat, Poultry, Jute Mills Pig Arwal Paddy, Maize, Wheat Aurangabad Paddy, Wheat, Lentils Cow, Buffalo, Goat, Sheep, Carpet, Poultry, Pig Weaving Banka Paddy, Wheat, Maize, Lentil Cow, Buffalo, Goat, Sheep, Poultry, Pig Begusarai Wheat, Maize, Chilly, Cow, Buffalo, Goat, Poultry Pepper, Vegetable Bhagalpur Paddy, Maize, Lentil Cow, Buffalo, Goat, Poultry Tussar Silk 46 Blanket Bhojpur Paddy, Wheat, Maize Cow, Buffalo, Goat, Sheep, Rice & Oil Mills Poultry, Pig Buxar Paddy, Wheat, Maize, Cow, Buffalo, Sheep, Poultry Rice & Oil Mills Sugarcane Darbhanga Paddy Cow, Buffalo, Goat, Poultry Paper Mills, Sugar Factories, Handlooms, Pisciculture East Champaran Basmati Rice, Sugarcan, Jute, Lentil Gaya Paddy, Wheat, Potato, Lentils Cow, Buffalo, Goat, Poultry, Pig Cow, Buffalo, Goat, Sheep, Poultry, Pig Sugar Factories, Button Factories, Honey Oil Mills, Sugar Factories, Lac

59 District Agriculture Livestock Enterprises Gopalganj Paddy, Wheat, Maize Cow, Buffalo, Goat, Poultry Sugar Factories, Vegetable Oil Mills Jamui Paddy, Wheat, Lentils Cow, Goat, Sheep, Poultry, Pig Jehanabad Paddy, Wheat, Lentils Buffalo, Poultry, Pig Kaimur Paddy, Wheat, Maize, Sugarcane Cow, Buffalo, Goat, Poultry, Pig Katihar Paddy Cow, Goat, Poultry, Pig Jute Mills, Paper Mills Khagaria Paddy, Wheat, Maize, Jute Cow, Goat, Poultry Kishanganj Paddy, Wheat, Maize, Jute Cow, Goat, Poultry Jute Mills Lakhisarai Paddy, Wheat, Lentils Cow Madhepura Paddy, Jute Cow, Buffalo, Goat, Poultry Jute Mills Madhubani Paddy Cow, Buffalo, Goat, Sheep, Poultry, Pig Munger Paddy, Wheat, Lentils Cow, Goat, Poultry Muzaffarpur Paddy, Wheat, Maize, Lentils, Litchi, Mango Cow, Buffalo, Goat, Poultry, Pig Nalanda Paddy, Potato, Onion Cow, Buffalo, Goat, Poultry, Pig Nawada Paddy Cow, Buffalo, Goat, Poultry, Pig Patna Paddy, Potato, Onion, Vegetable Cow, Buffalo, Goat, Sheep, Poultry, Pig Purnea Jute Cow, Buffalo, Goat, Poultry, Pig Rohtas Paddy, Wheat Cow, Buffalo, Goat, Sheep, Poultry, Pig Sugar Factories, Pisciculture Sugar Factories, Honey Handloom Weaving Bidi Factories Sugar, Fireworks, Biscuit, Flour Mills, Shoes Jute Mills Vegetable Oil Mill, Paper Factory Saharsa Paddy Cow, Buffalo, Goat, Poultry Jute Factory Samastipur Paddy, Maize Cow, Buffalo, Goat, Poultry Sugar Factories, Paper Mill, Jute Mill, Pisciculture, Honey Saran Paddy, Wheat, Sugarcane Cow, Buffalo, Goat, Poultry, Sugar Factories Pig Sheikhpura Paddy, Wheat, Lentils Sheohar Sitamarhi Paddy, Wheat, Maize, Lentils Cow, Buffalo, Goat, Poultry, Pig Siwan Paddy, Wheat, Sugarcane Cow, Buffalo, Goat, Poultry, Pig Supaul Paddy Cow, Buffalo, Goat, Poultry Vaishali Banana, Paddy, Wheat, Maize, Lentils West Paddy, Sugarcane, Champaran Canereeds Source: Economic Survey & Bihar website Cow, Buffalo, Goat, Poultry Cow, Buffalo, Goat, Poultry, Pig Sugar Factory, Rice & Oil Mills Sugar Factories Sugar Factory, Honey Sugar Factory, Honey 47

60 The subsequent sections describe in detail, the context of some of the livelihoods subsectors like Agriculture, Animal Husbandry, Fisheries, Bee keeping etc Agriculture Agriculture is the key to the overall development of the State economy. Agriculture is the backbone of Bihar's economy 81% of workforce and generating nearly 1/5 th of GDP of the state. Nearly 90 million population lives in the rural area. Bihar has a total geographical area of about lakh hectare, out of which only lakh hectare is the net cultivated area and gross cultivated area being lakh hectare. About lakh hectare net area and lakh hectare gross area receive irrigation from different sources. Principal food crops are paddy, wheat, maize and pulses. Main cash crops are sugarcane, potato, tobacco, oilseeds, onion, chillies and jute. Bihar has notified forest area of 6, sq km, which is 7.1 per cent of its geographical area. The lakh hectares of land have three important agro-climatic zones. These are North-west zone with 13 districts have mms rainfall & loam to sandy loam soil; North-east zone with 8 districts have mms rainfall & loam to clay loam soil and South-zone with 17 districts have mms rainfall & have variety of soils e.g., sandy loam, clay loam, loam & clay. The average annual rainfall of the state is 1091 mms. The topography of Bihar can be easily described as a fertile alluvial plain occupying the Gangetic Valley. The plain extends from the foothills of the Himalayas in the north to a few miles south of the river Ganges as it flows through the State from the west to the east. Rich farmland and lush orchards extend throughout the state. There are three major types of soil in Bihar i.e. Piedmont Swamp Soil - found in northwestern part of West Champaran district. Terai Soil - found in northern part of the state along the border of Nepal. Gangetic Alluvium - the plain of Bihar is covered by gangetic alluvium (both new as well as old). Bihar is endowed with good soil, adequate rainfall and good ground water availability. Cold weather season (December to February), Hot weather season (March to May), Southwest monsoon (June to September) and Retreating southwest monsoon (October to November). Agriculture is prone to natural disasters, particularly flood in north Bihar and drought in south Bihar. Risk of natural disasters can be minimized through use of appropriate crop technology and extending crop insurance to all farmers. Insurance cover may be extended to all the crops in general and horticultural & cash crops in specific. Seed bank can be maintained to quickly restore supply of seed material. Human resource can be developed to quickly react and restore normalcy in case of a natural disaster. The state is endowed with rich biodiversity. The major crops are Paddy, Wheat, Lentils, Sugarcane, Jute (hemp, related to the marijuana plant, but a source of tough fibers and "gunny bags"). Also, cane grows wild in the marshes of West Champaran. The principal fruits are: Mangoes, Banana, Guava and Litchis. Bihar is the third largest producer of vegetables and fourth largest producer of fruits in the country. It is the largest producer of Litchi, Makhana, Guava, Lady s finger in India. The state already exports Litchi, Basmati rice and snow pea. It has competitiveness in maize, rice and fruit such as banana, mango, litchi and vegetables like onions, tomato, potato and brinjal. High, stable and regular supply of agricultural produce provides adequate opportunity for marketing and food processing industries. 48

61 Although, Horticulture (Fruits, vegetable, spices, honey, medicinal & aromatic plants) occupies 15% of land area but income generated from horticulture is much higher. The state has a monopoly in production of litchi and makhana and continues to grow various fruits, vegetables, spices and floriculture is catching the imagination of people, reflected in their growing interest, across the state, in diversification of horticulture. The total net sown area is lakh hectare and gross sown area is lakh hectare with cropping intensity of 1.37 ( ) out of lakh hectares. The crop wise net cultivated area, production and yield are presented below. Table Net cultivated Area, Production & Yield Total Total Nos. of Cultivable Crop Production District Area (in (MT) Hectare) 49 Yield in Kg / hectare (Bihar) Paddy Wheat Barley Maize-Kharif Maize-Rabi Arhar-Kharif Urad-Kharif Bhadai Moong-Kharif Kulthi-Kharif Ghaghra-Kharif Other Pulses-Kharif Gram-Rabi Lentil-Rabi Pea-Rabi Khesari-Rabi Other Pulses-Rabi Moong-Summer Total Pulses Rapeseed/Mustard Linseed Sesamum Sunflower Ground Nut Safflower Castor Jute Mesta Sunhemp Jowar Bajra Ragi Small Millets Source: Directorate of Statistical and Evaluation Yield in Kg / hectare (India)

62 Land use pattern Availability of agricultural land was low at 62.50% in Bihar as against 86.70% in Punjab and 68.10% in U.P. With high current fallow and culturable waste, the net sown area was still low at 45.20% only. The net sown area showed shrinkage at (-) 0.79% per annum largely due to expanding current fallow, area under miscellaneous trees and land under non-agricultural use. In some districts increasing barren land as well explained the declining net sown area. Shrinking of net sown area with population increasing fast impacting the land-man ratio is getting further adverse for agriculture in the state. Gross cropped area was declining more as a result of stagnant and inadequate irrigation Irrigation There are six major sources of irrigation surface canals (major), surface canals (minor), tanks (including ahars and pynes), tube wells, other wells and other sources (Lift Irrigation). Tanks and other sources (Lift Irrigation) are becoming less important over time, leaving the other four sources for providing irrigation facilities to agricultural operations. In , canals (major and minor) provided percent and tube wells provided percent of total irrigation. Tube wells are an extremely important source of irrigation, providing more than 50 percent of the total irrigation in 30 districts. However, irrigation from surface canals (both major and minor) plays an important part in no less than 8 districts Rohtas, Kaimur, Bhojpur, Buxar, Aurangabad, Banka, Munger and Lakhisarai. In each of these districts, surface canals provide more than 50 percent of the irrigation facilities. All these 8 districts are notable rice producing districts of Bihar. Though irrigation availability is not so high in Bihar, utilization of whatever irrigation facility is available is very high. In ; nearly lakh hectares of land are under irrigated areas Seed Good quality Seed is one of the critical agriculture input for production and productivity enhancement. The application of high yielding variety seeds and its replacement rate are important determinants of productivity in agriculture. Because of dearth of firms in Bihar supplying certified seeds, low Seed Replacement Rates (SRR) are often cited as reasons for low productivity of agriculture in Bihar. Currently, the state is focusing on providing good quality high yielding certified seed to the farmers and the initiatives like Chief Minister s Crash Seed Programme, Seed Village Programme (Beej Gram Yojana), provision of subsidy for use of certified seeds by farmers, revival of hitherto dormant Bihar Rajya Beej Nigam, strengthening of Bihar seed certification agency, multiplication of seeds by state farms has immensely helped to raise agricultural productivity in Bihar. The SRR for major crops like paddy with 26%, wheat with 30%, maize with 58-90%, arhar with 12%, Urad with 17%, moong with 19%, gram-pea-lentil (masoor) with 15% and rapeseed (mustard) with 50%. The Seed Replacement Rate has increased significantly in the state during the last five years Fertilizer With the use of improved seeds in agricultural practices, fertilizer in proper quantity becomes much more important for enhancement of agricultural productivity. The fertilizer consumption in the state has been rising constantly over the last five years. In , the consumption of fertilizer has been lakh tones. The rising trend indicates the willingness of the farmers to adopt new technology based on increased use of fertilizers to enhance agricultural productivity, even if there are severe constraints in the availability of irrigation and other facilities. The consumption of fertilizer went upto kgs per hectare in from a level of kgs per hectare three years ago. However, the consumption of fertilizer varies from district to district and progressive farmers to smallholders due to availability and affordability issues respectively. 50

63 Extension Services With induction of Subject Matter Specialist at sub-block level and Kisan Salahkar at panchayat level, the outreach of the extension service has tremendously increased in recent years and marks revival of extension service in the state, which had reached to a moribund level over the years. These services are extremely important in the sphere of seed management, optimum mix of chemical fertilizers for different crops, adaptability to new cropping patterns and introduction of new and efficient verities of existing crops. The state government in recent years has taken initiative to make farming more productive and make agriculture a rewarding rural occupation. It has taken pains to transfer knowledge treasures of the agricultural institutions to farmers to enhance their level of production. Farmer's training through Farmers Field Schools (Kisan Pathsala) has gained prominence in recent times. Krishi Vikash Shivir, programme for interaction between agricultural scientists and farmers, is providing a platform for technology-transfer. The Shivirs are organised at Panchayat level all over the state. The state government has sanctioned one subject matter specialist for every two Panchayats and a Kisan Salahkar for each Panchyat for meeting growing needs of extension services in the state. Kisan Melas which are organised at the village level expose the traditional cultivators in the village to the new world of technologies being introduced in farming. The Department of Agriculture, Government of Bihar is currently implementing System of Rice Intensification (SRI) in 3.5 lakh hectares of land, which is 10% of paddy area in the state. This intervention has also been implemented through the Subject Matter Specialists and the Kisan Salahkars Organic Farming The state government has started a new programme for promotion of sustainable farming practices. Vermi Compost production by farmers has been made demand based with 50 percent subsidy on making of vermin compost unit. Commercial units of vermi Compost with annual production of 3000 tones are also subsidized. Subsidy on vermi compost purchase is allowed for the first time in the state. Besides vermi compost, bio fertilizers, viz., Rhizobium, Azotobacter, Phosphate Solubilising Bacteria, Blue Green Algae and Mycorrhiza are promoted on large scale. Seed producers are given free kits of the appropriate bio fertilizer. This programme covers around farmers in the state Credit Agriculture credit is one of the most important component for the procurement of agri-inputs and implements for the agriculture operation to undertake, as these are not self-supplied by the farmers. The agriculture credit scenario of the state is not in line with the accumulated farmers demand in the state. The agriculture credit from different financial institutions such as Commercial Banks, Regional Rural Banks and Central Co-operative Banks have never achieved the target set by the farmers of the state. The Commercial Banks have achieved 91.42%, which is amounting to crore; Regional Rural Banks have achieved 83.39%, which is amounting crore and Central Cooperative Banks have achieved 32.58%, which is amounting to crore in It shows that the principal source of agriculture credit is Commercial Banks in the state. The supply of credit is inadequate, when the price rise factor is taken into account. Kisan Credit Card (KCC) has been one of most important instrument in recent years for enhancing the flow of agriculture credit in the rural areas. This scheme was introduced in 1999 and it allows for a maximum credit of Rs. 50,000 to farmers to procure agricultural inputs. In , about lakh farmers were benefited through the facility of KCC. The achievement is as high as percent of the target in The facility of KCC needs to be widened in coming years and if it is not done, the prevalence of informal credit market with exorbitantly higher rates of interest would continue to haunt the farmers, particularly those who are small and marginal farmers. 51

64 Land Leasing This is a general practice among the small and marginal farmers in the state to lease land for practicing agriculture. The leasing is normally done for a year. It starts from June to May of every year. There are three kinds of land leasing varies regions to regions are as izara, sudh bharna, ek chauthai, etc. In the last 4 years of JEEViKA experience, it is observed that nearly 45% of small holders practicing agriculture by taking land on lease Context of Smallholders The context of smallholders in Bihar has been classified into three categories i.e., landholding, input and natural vulnerabilities Low Size of Landholdings and Prevalence of Lease farming In the case of Bihar, 70% of poor households are small and marginal farmers otherwise termed as smallholders across the world. Their average landholding ranges from 0.07 to 0.22 hectare & usually with no irrigation. A significant proportion of households who are landless, either take land on lease or practice sharecropping to undertake agriculture for getting their staple food i.e., paddy. The option of a second crop i.e., wheat or pulses will depend on assured irrigation facility or better residual soil moisture availability, if it is a normal rainfall year. Depending on the family size, the present landholding pattern can only provide food security for 4-5 months. The landless farmers do agriculture on leased land or practice sharecropping Input Constraints (Seed, Extension Services, Credit) Availability of good quality seeds is typically a big constraint faced by the small and marginal farmers in Bihar. The prevalence of fake seeds is rampant. Even in district towns, it is difficult to find well stocked good quality seeds and fertilizer stores. Most of the poor and marginal farmers are using the grains of the previous year to sow their crop (seed replacement rate is nearly 30% in paddy & wheat, 17% pulses, 50% oilseeds & 85% in maize) and most of the existing varieties used are over years old. With the inadequate government extension machinery, farmers have no access to knowledge and problem-solving services. Lack of availability of institutional credit for agriculture and poorly developed water and land resources also contribute negatively for the low productivity of agriculture. Kisan Credit Card (KCC) is not applicable to the small, marginal and land less farmers, whose agriculture land area is ranging from 0.07 to 0.22 hectare Frequent occurrence of Flood and Drought The state experiences flood and drought very frequently. While North Bihar suffers from floods almost every year, about 33% of the area in the state (mostly South Bihar) receives less than 750 mm of rainfall placing Bihar in the category of chronic drought prone state in India, which deadly affects the small holders Different Agriculture Programmes / Schemes of the State The state and centrally sponsored schemes, which directly contributing to the agriculture development through establishing different mission in the state are as follows. 52

65 National Food Security Mission The following activities are being implemented by the state government as part of NFSM. i. System of Rice Intensification ii. Hybrid Rice Technology iii. Hybrid Rice Seed Production iv. Varietal Replacement of Rice & Wheat v. Distribution of Hybrid Rice Seed vi. Seed Mini kit programme of Rice & Wheat vii. Production of Foundation and Certified Seeds of Pulses viii. Distribution of Certified Seeds of Pulses ix. Promotion of Micronutrients in Rice & Wheat x. Application of Lime in Rice xi. Application of Zypsum in Wheat xii. Integrated Nutrient Management in Pulses xiii. Cono-weeders and other farm implements for Rice xiv. Zero-till Seed Drill for Wheat xv. Rotavator for Wheat xvi. Assistance for purchase of Pump sets for Wheat xvii. Distribution of Sprinkler sets for Pulses xviii. Plant Protection Chemicals and Bio-Pesticides for Rice xix. Integrated Pest Management in Pulses xx. Training of Farmers in Farmers Field School Pattern xxi. Exposure visit to International Organization xxii. Publicity, Mass Media and Information Technology xxiii. Pilot Projects under NFSM Wheat on Community Generators for Irrigation xxiv. Pilot Project under NFSM Pulses for Management of Blue Bulls National Horticulture Mission The following activities are being implemented by the state government as part of NHM. i. Production & Productivity Improvement ii. Production & Distribution of Planting Material Model Nurseries Small Nurseries Tissue Culture Units Vegetable Seed Production Seed Infrastructure Establishment of New Gardens Rejuvenation / Replacement of Senile Plantations Creation of Water Resources Precision Farming Development & Extension through PFDCs Promotion of Integrated Nutrient Management / Integrated Pest Management iii. Pollination support through Bee Keeping iv. Distribution of Bee Colonies, Hives and Equipment v. Technology Dissemination through Demonstrations / Front Line Demonstrations vi. Post-Harvest Management 53

66 vii. Creation of Market Infrastructure viii. Export Promotion ix. Contract Farming x. Processing and Value Addition xi. Micro Irrigation Rashtriya Krishi Vikash Yojana i. Integrated development of major food crops such as wheat, paddy, coarse cereals, minor millets, pulses, oilseeds: Assistance can be provided for making available certified/hyv seeds to farmers; production of breeder seed; purchase of breeder seed from institutions such as ICAR, public sector seed corporations, production of foundation seed; production of certified seed; seed treatment; Farmers Field Schools at demonstration sites; training of farmers etc. Similar support would be provided for development of other crops such as sugarcane, cotton or any other crop/variety that may be of importance to the state. ii. Agriculture mechanization: Assistance would be provided for farm mechanization efforts especially for improved and gender friendly tools, implements and machinery. Specific agricultural mechanization projects oriented toward enhancing farm productivity can be considered under this scheme. However, tractors are not covered under the scheme. iii. Activities related to enhancement of soil health: This would include efficient quality control of inputs including strengthening of laboratories and enhancing soil health. Assistance can be provided to the farmers for distributing soil health cards; micro nutrient demonstration; training of farmers for promotion of organic farming including printing of publicity/utility literature; assistance to the state government to strengthen existing soil testing and fertilizer testing laboratories and setting up new ones; amelioration of soils affected with conditions such as alkalinity and acidity. iv. Development of rain-fed farming systems in and outside watershed areas, as also integrated development of watershed areas, wastelands, river valleys: Assistance for development of land as also assistance for horticulture, generating livelihoods for farmers Below the Poverty Line (BPL). v. Support to State seed farms: State farms that are used for both research and seed production purposes may be provided funds in a project mode covering aspects such as land development, creation of irrigation facilities, upgrading technology, etc. However, new land acquisition is not permitted. vi. Integrated Pest Management schemes: This would include training of farmers through Farm Field Schools etc. on pest management practices; printing of literature/ other awareness programmes. vii. Encouraging non-farm activities: Assistance to agri-entreprenuers / agri-graduates to set up agri-clinics / agri-business centres. viii. Strengthening of Market Infrastructure and marketing development: Assistance for setting up of cold storages, cold chains, godowns, formation of farmer s SHGs, setting up collection 54

67 centre etc. Assistance to PRIs / SHGs in promoting collection and sale to mandis/government agencies. ix. Strengthening of Infrastructure to promote Extension Services: This would include new initiatives for skill development and training in the farming community and to revamp the existing State agricultural extension systems. x. Activities relating to enhancement of horticultural production and popularization of micro irrigation systems: Assistance will be available for nursery development, horticulture activities including marketing and drip/sprinkler irrigation. xi. Animal husbandry and fisheries development activities: Assistance will be available for improvement in fodder production, genetic up-gradation of cattle and buffaloes, enhancement of milk production, enlarging raw material base for leather industry, improvement in livestock health, poultry development, development of small ruminants and enhanced fish production. xii. Special schemes for beneficiaries of land reforms: Assistance will be available for improving the net minimum income of this category of beneficiaries. Beneficiaries of land reforms are usually small and marginal farmers. Making their agriculture viable will be possible only when capital investments on land development, irrigation, high technology infrastructure in emerging areas such as floriculture, horticulture, seed production, etc. are made. Specific projects for groups of such beneficiaries can be taken up with provision for common infrastructure. xiii. Undertaking concept to completion projects: Undertaking specific projects under agriculture/horticulture/ allied sectors in a concept to completion mode with attention given to all the components such as crop production, technology induction, farmer training, forward and backward linkages, either entirely in the state sector or in partnership with the private sector, where necessary and possible, is permitted under the scheme. Beneficiaries under such projects should, however, predominately be BPL farmers. Projects in risk-prone, underdeveloped, agriculturally distressed, remote, hilly and tribal areas are especially encouraged. xiv. Grant support to the State Government institutions that promote agriculture/horticulture: Wherever state level institutions that work for promoting agriculture/horticulture/allied sectors require a one-time grant support for their functioning / strengthening, such support can be provided. xv. Study tours of farmers: Study tours of farmers to places of interest to them, especially to research institutions etc. xvi. Organic and bio-fertilizers: Support for decentralized production at the village level and their marketing, etc. This will include vermi-composting and introduction of superior technologies for better production Animal Husbandry Besides Agriculture; livestock and dairy is one of the most significant sector for rural livelihood and income generation opportunities, especially for women folk in the rural area. This sector holds an important position in the state's economy, as it contributes one third of total rural income. Animal 55

68 husbandry is an extremely important income generation activities in rural areas, as 90% of the state s population live in rural villages. The goat rearing is termed as poor man s cow or ATM by experts of rural livelihoods. The landless farmers or wage laborers can take up goatery & poultry for their income generation activity. The table below shows the potential of various sub sectors in animal husbandry in the state. Table Animal Husbandry potential Sl. Name of Livestock Population in Lakhs Concentration is Higher 1 Cow Patna, Bhojpur, Rohtas, Gaya, Banka, 2 Buffalo Muzaffarpur, West Champaran, Madhubani, Purnea 3 Goat Poultry Purnea, Araria, Kishanganj, Katihar TOTAL Source: Livestock census 2003 The total livestock population is lakhs in the state. Milch cattle (Cow & Buffalo) population contributes 39.8%, Goat population contributes 23.5% and Poultry population contributes 34.2%. The growth potential is abundant in livestock sector and the state government has been taking initiatives in breed up-gradation, animal health & nutrition and insurance of cattle for improvement of the sector as a whole. The milk production potential of Bihar is 90 lakhs litre per day, out of which the organized sector procurement by COMFED is nearly 14 lakhs litre per day. In , the production of milk is 61,240 lakh kgs. And production of eggs touched crores Dairy Due to sustained efforts and policies favoring milk production, the milk production in the State is increasing continuously and so is the milk procurement by the dairy cooperatives. It has increased steadily over the years. The dairy cooperative societies promoted by Bihar State Cooperative Milk Marketing Federation Limited (COMFED) have been handling volumes in excess of the capacities created especially during flush. The Bihar State Cooperative Milk Federation (COMFED) has 8 milk unions procuring milk is mentioned in the table. Table Dairy Unions in the state Sl. Name of the Milk Union Location of the Avg daily milk procurement per day Milk Union (000 Kg/Day)-FY Mithila Milk Union Samastipur Vaishal Patliputra Milk Union Patna Tirhut Milk Union Muzaffarpur Shahabad Milk Union Ara Vikramshila Milk Union Bhagalpur Desh Ratna Milk Union Barauni Magadh Dairy Project Gaya Koshi Dairy Project Purnea 6.28 Source : COMFED 56

69 In the financial year , the average daily milk procured by COMFED is LKPD. COMFED is currently procuring milk from nearly milk producers organized through 7000 dairy cooperative societies Animal Health, Nutrition & Artificial Insemination To strengthen the functioning of the animal husbandry sector, the state government has schemes like treatment of animals, sterilization, artificial insemination, immunization and free distribution of fodder seeds. For Bihar as a whole, in , lakh animals were treated and in addition another 156 lakh animals were immunized. The services provided through free distribution of fooder seeds were substantial at 2358 quintals. It should be mentioned here that the services provided, as mentioned above, were not uniform among the districts. This service reached its peak level in when 2.51 lakh animals were covered. Thereafter, it has shown a decline in when 2.36 lakhs animals were artificially inseminated. In (upto October) around 1.46 lakh animals have already been artificially inseminated. In order to improve the dairy and animal husbandry, the Department of Animal Husbandry and Fishery, Government of Bihar has developed few schemes under the two directorates namely Animal Husbandry and Dairy are as follows; In Animal Husbandry Enhancement of milk productivity Providing technical inputs to milk producer like milk and dairy cooperative societies testing equipment and accessories, green fodder seeds, Artificial Insemination equipments and accessories Establishment of chilling plants, bulk cooler and others cold chain facilities for preservation and maintaining quality of milk for collection and marketing In Dairy Establishment of Mini Dairy. Establishment of Cattle Breeding Units. Establishment of Milk Co-Operative Societies. Demonstration of Green Fodder. Man Power Development (Training). Establishment of Adrash Dairy Gram. Establishment of A.I. Centres under Special Component Programme. Supply of Electronic Milko Tester in Co-operative Societies Goat Rearing The livestock sector has a significant potential for round the year income generation particularly in rural areas. This provides subsidiary source of livelihood to the poor households due to lack of sufficient agricultural land to sustain, particularly in the draught prone & remote areas where crop production on its own may not be capable of engaging them fully. According to 50th National Sample Survey (NSSO 1998), the employment in the Animal Husbandry sector was 9.8 million (provisional) in the principal status and another 8.6 million (provisional) in the subsidiary status. However, in case of landless laborers and marginal farmers rearing of large ruminants specially the high yielder are mostly not possible due to shrinkage of common property resources (grazing land) and financial constraints but farming of small ruminants has more or less overcome these problems and can contribute additional income for the family. Goat, in true sense, is called as poor man's cow due to its tremendous economic importance in contributing milk, meat and ultimately the household nutrition security and livelihood to the downtrodden people. Census data revealed that India accounts for 20% 57

70 of the world's goat population with annual growth rate of 1.6% (Department of Animal Husbandry and Dairying 2005). The reasons for high growth rate include low cost and handy technology to the landless laborers, marginal farmers and industrial workers particularly less volume of feed is required than cattle, more resistant to diseases, easily manageable by child or female and easy market accessibility. The state occupies a vast area under rainfed system with regular occurrence of either flood or draught or both. Hence there is a tremendous scope of goat farming that can meet up the large gap between demand and supply of meat in the state Meat & Milk Bihar is the 5 th largest goat populated state ( goats) & contributes about 7.63% of India's total goat population. The state is also a habitat of 42% people below poverty line and hence there is a tremendous scope of goat farming to meet up the large gap between demand and supply of meat. Around goats are slaughtered annually in recognized slaughterhouses contributing 31.17% of total meat production ( tons of meat) of the state, 10.85% of total milk production ( tons of milk). Bihar goat rearing household enterprise has major contribution in household nutrition of the economically weaker section. As per 2003, the average per capital availability of meat in Bihar is g/week as compared to the per capita requirement of meat is 180 g/week. But, in India, goat milk contributes 4.21% to the total annual milk production in the country. However, goat rearing is not well accepted by all classes of people in Bihar. It is mostly confined to backward classes, landless laborers & minorities; who are unable to rear large animals. As a result, goat rearing has not been developed as an industry. Holding size is generally 1-3 goats per family depending on availability of surplus labor in the family Breed & Disease Village goat is mostly of Bengal breed. However, crosses with other breeds like Jamunapari, Barbari, Irohi and Jakharana are also available. Goats are raised on grazing. No vaccination of FMD or PPR is given at farmer's field. Little care is taken to prevent diseases of goat in smallholder production system. No vaccination of FMD or PPR is given. The main limitations to effective livestock health management are an inadequate focus on preventive measures, lack of medicines and equipment in rural veterinary clinics, and ignorance among the farmers. This is reflected in the frequent occurrence of many of these diseases in most parts of the country. However, toxemia and diarrhea due to parasitic infestation were found to be most common diseases at farmers field especially during onset of monsoon. Since the goat is under hand of the poor farmers and being less important animal for the big farmer, the information on goat diseases is mostly reported to quack. Sometime in serious condition, emergency slaughter is practiced to recover certain percentage of cost. Goat has also been playing a significant role in rain-fed farming system. Table Density of Goat Population Districts Kaimur (Bhabua), Jahanabad, Buxer, Rohtas, Bhojpur, West Champaran, Saran, Patna, Aurangabad and Nalanda Lakhisarai, Begusarai, Sheikhpura, Gaya, Madhubani, Darbhanga, Siwan, Jamui, Samastipur and Munger Gopalganj, Banka, Vaishali, Khagaria, Nawada, East Champaran, Purnia, Bhagalpur, Muzaffarpur and Katihar Density of Goat Population - Nos. of goat / sq. kilometer Kishanganj, Sitamarhi, Madhepura, Saharsa, Araria, Supaul and Sheohar >150 Source: Livestock Census (2003), Dept. of Animal Husbandry and Dairying, Government of India 58

71 Feeding practice Since goat is confined to only downtrodden people no scientific feeding practices is followed. Female or child of the family mainly rears goat. Feed requirement is met up mostly by grazing for 6-8 hours a day on common property resources on the bunds of canals, rivers, and ponds or nearby forest. Goat is also kept on grazing after the crop is harvested. In flood prone and waterlogged areas, after the floodwater is subsided. During other seasons it is stall fed with local grasses collected from bunds or grazing area or fodder trees available in the villages. Very little concentrate like broken rice or maize or wheat or pulse chunnies is given along with rice bran and mustard cake. Some farmers who have land either own or taken on lease, occasionally offer green fodder like Sudan or Berseem Marketing Marketing of goat is under the hand of unorganized sector and middleman oriented. Goats from villages are sold to middleman or butcher or in the local goat market that go to the slaughterhouses of organized or unorganized sector. Male goat is sold at the age of months and at higher prices. However, farmer grows the male goat to sell in festive season for more profit. Intact male goat is sacrificed before God in many places. During Bakri Id, male goat is sold even at the cost of thousand. Female goats are sold to market for slaughter at the end of their productive life (Spent goat), which forms a substantial quantity of goat meat in the state. Now private companies have come forward in West Bengal and Jharkhand to promote and market goat meat by establishing goat meat processing unit Poultry The poultry sector currently provides employment to over three million people in the country, and is one of the fastest growing economic sectors, averaging a growth rate of percent per annum over the last decade. The rapid advancement of the poultry sector has however largely by-passed the poor, for whom poultry rearing has been a traditional livelihood activity, contributing significantly to household food and nutrition security. While poultry rearing is recognized as a key poverty reduction strategy, with a number of schemes on poultry development and promotion, the high growth in the sector is currently confined to the commercial, organized sector. This is largely on account of the poor risk bearing capacity of smallholders, the lack of a coordinated supply of inputs, extension and market services, and limited access to new knowledge and technology by small-holders. To enable smallholders to effectively participate in and benefit from the rapidly expanding poultry sector, a distinctly designed approach is required that is based on the existing knowledge, resources, access to inputs and markets, and enables smallholders to graduate from a nutrition and food security focused intervention, to a livelihood and income earning intervention. The production of eggs amounted to 789 million eggs (1.75 per cent of the total egg production in India) in the state in The livestock census carried out in 1982 estimated about 6 million birds in the state. The poultry rearing is mainly a homestead activity in the state with slaughtering mainly occurring in the unorganised sector. No value addition is currently taking place. Poultry meat is the fastest growing animal protein in India with a CAGR of 11 per cent during and estimated to increase further. Bihar with negligible share in national poultry meat trade thus has everything to gain by investing into and creating the right climate to spur the production of poultry and value added products. However, in , the production of eggs touched crore. First and foremost is the selection of the most appropriate model based on the resources of the household (including time and knowledge) and access to markets. Second, is the need to ensure access to reventive vaccination services. Documentation of good practices from the region, 59

72 adequately demonstrates a significant reduction in bird mortality following provision of vaccination services at the door-steps of small-holder poultry rearers. The high cost of feed is another major constraint faced by small-holders in up-scaling poultry rearing. Production of maize which is a key ingredient in poultry feed has remained static over most of the last decade, and the high import costs, have led to an increase in poultry feed prices. The need for the development of alternative sources of poultry feed, based on crops grown locally, as also the diversification of feed sources based on local practices. There are numerous traditional practices, such as rearing termites in earthen vessels as high-protein feed for poultry, adding crushed snail shells to feed, promotion of vermi-compost in mixed farming systems and the feeding of greens, such as onion and garlic leaves. The importance of facilitating and supporting the collectivization of small-holders to enable economies of scale for accessing inputs services and also markets. The same successful Amul model of milk collection and marketing, which is dependent on small farmers collectively market their produce through an institutional system that facilitates access to consumers in markets at considerable distance. The need for extension systems to centre-stage smallholder poultry rearing, as also for the veterinary course curriculum to include small-holder production and rearing systems, rather than the current priority focused largely on commercial production systems Fishery Fisheries is an important, most promising and fast growing food farming sub-sector of India accounting 6% annual growth rate and contributing 4.42% of total agricultural G.D.P., but in Bihar, despite all the available aquaculture resource only 30% are developed and remaining 70% are undeveloped. Bihar has a span of 3.61 lakh hectares of water area. This constitutes around 3.9 percent of the total geographical area. Fish production in the state has been showing a steady growth. The contribution of fisheries sector in GSDP has doubled during the last ten years. Better management and credit inflow to fish farmers would usher in a new era of development for this sector which could contribute to the growth of GSDP. In , the total production of fish in Bihar was 2.67 lakh tones. There was steady increase of fish production thereafter and it reached to a level of 3.06 lakh tones in In , the level of production has come down to 2.97 lakh tones. It is estimated that the rate of growth during the period to was 2.58 percent per annum. The factors for success of fishermen and fish production may be attributed to distribution of fingerlings, training of fish farmers, distribution of loans for maintenance and renovation of private ponds and housing for fishermen. The three districts namely Darbhanga, Madhubani & Samastipur are the major producers of fish. In the financial year ; Darbhanga produced 16.9 thousand tons (5.8%), Madhubani produced thousand tons (5.54%) and Samastipur produced 12.4 thousand tons (4.17%) of the total fish production in Bihar. However, the poor and very poor category of fishermen households couldn t be part of the development of the sector proportionately. Accessing of water bodies is an obstacle for the poorer segment among the fishermen community, who were not the part of the block level fishermen cooperative formed under Indian Cooperative Act The trained fishermen SHGs may be eligible for pond leasing, as per the Fishery Gazette. However, this act couldn t be rolled out successfully. 60

73 Table Aailable water area in hectares for pisciculture Numbe Number of Ponds Water spread Area (in hectare) Water Name of r of Govt. Private Total Govern Private Total Area (ha) District blocks ment per Block Patna Bhojpur Busar Kaimur 11 NA NA NA NA NA Nalanda Rohtas Gaya NA Arwal 5 NA NA 295 NA NA Aurangabad NA Jehanabad 5 NA NA NA Nwada 14 NA NA Saran Gopalanj Siwan Muzaffarpur Sitamarhi Sheohar Vaishali East Champaran West Champaran Darbhanga Madhubani Samastipur Saharsa Madhepura Supaul Bhagalpur Banka 11 NA NA 850 NA NA Munger Begusarai Khagaria Jamui 10 NA NA NA Shekhpura 6 NA NA NA Lakhisarai Purnea Araria 9 NA NA 634 NA NA Katihar Kishanganj 7 NA NA NA NA NA Total

74 Access to Water bodies Government ponds, earmarked for fishery are leased at prescribed rates with preference of Fishermen Co-operative Societies which in turn lease it to its members. These societies are registered under the Co-operative Societies Act The ponds are leased in the name of the Secretary of the society who sub-lets the government ponds to the members. The secretaries are elected by the members and these societies are governed by the rules under the 1935 co-operative act. Attempts have also been made to organize the Machhuara women into thrift and credit groups i.e. Self Help Groups for pond leasing as per the Fishery Gazette. Few civil society organization have separately formed Fisherwomen co-operative Society, registered under the Bihar Self Supporting Cooperative Society Act However this is yet to percolate for pond leasing among the fishermen community Leasing and Credit facility Revenue water bodies were transferred to Fisheries Department with an aim to develop scientific aquaculture in them and to develop these water bodies with subsidy based credit from financing institutions. Due to interferences at various levels, inefficient extension delivery system and poor lending by bankers as well as fisheries co-operative societies the desired development was not achieved. Therefore a holistic approach and multidimensional intervention has been initiated at the state level to make fuller use of these water bodies for maximising fish production and over all benefits of fishers. The process of leasing shall also be transparent as well as sensitive to all these aspects Fish Seed Production Quality fish seed is the most critical input in aquaculture. Easy and round the year availability of adequate and quality fish seed throughout the growing season at farm level is a determining factor in furthering aquaculture growth. The present seed production is about 350 million while the demand is 600 million where the demand gap of 250 million is met by supply from other States and natural collection (10-20%). There are two government run and 26 private hatcheries in the State besides 121 government fish seed farms most of which are non-functional. Lack of trained / skilled personnel in designing, construction and operation of hatcheries, lack of adequate number of hatcheries, particularly in Eastern and Western parts of the State, issues of encroachment, weed infestation, lack of reliable ground water supply in most of Govt. seed farms, poor maintenance and management of seed farms, depleting natural stock in rivers due to unregulated fishing, poor and inadequate transport facilities and a lack of mechanism for supply chain management are the pertinent issues to be addressed. During the coming decade the State will be in need of over 1,000 million fingerlings which would require production of 8,000 million spawn by 2020 so as to bring the potential area under aquaculture Bee keeping Beekeeping has a tremendous potential in Bihar. Taking the acreage of Litchi as about 24,000 hectares, Bihar can support 2,40,000 bee colonies on Litchi alone. The crops of Mango, Guava, Mustard, and Rapeseed can help the bee colonies develop for the Litchi honey flow. Though the crops of rapeseed of over 100, 000 hectares as shown above can support around 10 lakh bee colonies, these crops normally just help to build up the bee colonies after the severe monsoon and help them increase in population for the summer honey flows on Litchi and Karanj. In the world market the demand for honey is around one million tonne. There is an immense possibility for India to increase its export share from 7,000 ton to three lakh tonne and Bihar can lead the way to capture 62

75 this market as it has shown with the increase in productivity. At a conservative estimate, given the various cropping pattern and area under different crops suitable for bee keeping, Bihar has the potential to produce about 40,000 MT of honey with an estimated value of Rs 200 crore annually and creation of more than 6,00,000 employments. Bihar is one of the leading honey producing states in India. The main regions in which beekeeping is one are the districts of Muzaffarpur, Vaishali, Sitamarhi, Champaran, Madhepura, Katihar and Begusarai. Approximately 3,900 MT of honey was produced in the state out of the total country s production of 8,400 MT in Bihar is the only state producing litchi honey on commercial scale, and it should rank at par with some of the premium honey in world market such as the Block Forest Honey of Germany and the Spanish Orange Honey in terms of its uniqueness and quality. Honey yield with the Italian honeybee species is the highest in Bihar as compared to other states with a production rate of 40 and 60 kg honey/hive/year under stationary and migratory bee keeping respectively. The processing industry has not kept pace with the increase in beekeeping in the state with no large processing unit within the state. There are a handful of processing units in the organized sector with most of the processing happening in the unorganized sector with the main being the processing plant run by Mirzanagar Gramudyog Samiti. The Bihar State Honey Federation has provided the much needed thrust to honey production in the state by announcing a minimum support price of Rs 45 per kg in when price nosedived across the country. Small quantities is procured and packed by the KVIC units. However, buyers from North India like Dabur India Ltd, Honeybee Natural Products Ltd., Kejriwal and some other traders pick up the bulk of the honey. Table Bee Flora Calendar in Bihar Flora Jan Feb Mar Apl May Jun Jul Aug Sept Oct Nov Dec Mustard Y Y Y Mango Y Y Y Litchi Y Y Karanj Y Y Guava Y Y Y Y Y Pineapple Y Y Y In India, production of honey is very low compared to China, the highest producer, which exports 80,000 tons annually compared to India s 7,000 tons. Honey production in the country is only about 27,000 tons a year. Only about 20 per cent to 25 per cent of the bees are being exploited at present. India is also one of the low end consumer and in spite of its rich nutritive value, honey is still confined to Ayurvedic drug industry and is yet to become a regular food item. Against a per capita consumption of 1.5 kg in Germany, the Indian per capita consumption is only 5 gm. However, honey is increasingly being recognized as food item in India nowadays and thus presents a significant market potential for the product in the years to come Non-Farm / NTFPs The rural non-farm sector in Bihar has been emerging as a source of additional livelihood, in the face of agriculture having reached its saturation levels of employment, even in the backward regions. The pressure on employment market has been so deep that even in backward areas there has been expansion of rural non-farm employment (RNFE) during the nineties. In comparison to a share of RNFE of 15.2 % in total rural employment during 1991 it has increased to 19.0% in Among the 63

76 three sub-regions, North Bihar has the weakest rural infrastructural base and hence the expansion of RNFE has been the least in the sub-region. Collection, processing and selling of NTFPs has been an integral part of the livelihood basket for the communities living in regions having good forest cover Jobs Bihar is primarily an agricultural economy with 75% of rural population engaged in the sector. However, the state has seen an increase of the service sector contribution to Bihar s GSDP from 35% in to almost 51% in at a CAGR of 5.12%per year. Over the years services and industries have grown but Bihar has had more Industrial growth than India overall. This may seen as an aberration since high industrial growth in Bihar is due to the base effect and not rapid industrialization. The growth of services in Bihar is less than the overall India growth rate in services. At the all India level, services share has increased at a greater rate than industry after while in Bihar, services though have easily increased at a greater rate than agriculture, it has not out shone the industrial performance though with frequent divergence and convergence. There is no clear trend as is the case with all-india level. The main contributors to Services growth over the years has been the Hotel, trades, Transport and Communications. This phenomenon is observed both at the Bihar and all-india level. The other major contributor the services growth has been the growth in other services such as health, education etc. Rapid growth of IT and IT enabled services have been the flag bearer of services led growth in India because of FDI inflows, but this phenomenon is not to be seen in Bihar. The rapid growth in Services in Bihar has been due to Trade, Transport, Hotels & Restaurants and Banking & Insurance sector till 1995, but from 1996 onwards there has been a rapid growth of Telecommunication sector thereby pulling up the services sector growth. The fourth all India survey of micro, small and medium enterprises conducted in by Ministry of MSME reveals that, out of a total number of 71,435 enterprises surveyed in Bihar, around 73 percent or 52,188 units were working. Around 69 percent of these enterprises were manufacturing units and 31 percent services units. While manufacturing units accounted for 81 percent of the total employment, services sector engaged the remaining 19 percent. Thus, the per-unit employment was higher in manufacturing sector (3.64 persons) compared to the services (1.92 persons). In the total market value of fixed investment, the share of manufacturing sector was percent, whereas its share in the value of net worth was percent. The Work Participation Rate (WPR) is 32.9 percent for Bihar, with 14 districts having a WPR of more than 30 percent. The SC population has a higher WPR of 38.2 percent, with 17 districts having levels higher than 45 percent. Among the ST population, WPR is even higher at 45.2 percent. The gender gap is high with the female WPR for the state at 18.4 percent while the male WPR is 46.3 percent. The gender gap is less among SCs, with female WPR at 28.2 percent and the male WPR at 47.5 percent. For STs, the gap is even less at 36.9 and 52.9 percent for females and males respectively (Appendix XVI). It must be noted that urban female WPR in Bihar is 7.0 percent, compared to the all- India figure of 9.4 percent. In 20 out of 38 districts of Bihar, rural female WPR increased by more than 10 percentage points between 1991 and 2001, with Jamui recording the highest increase by

77 percentage points. Poverty, along with male migration, is the main explanatory factor for increasing female WPR with majority of the women being agricultural labourers. Apart from the local employment and income opportunities that arise out of the state s own growth performance, the poverty ratios in Bihar, for both rural and urban areas, are also influenced by the phenomenon of extensive out-migration of workers most of these are from the poorer households. The origin of current migration from Bihar can be traced back to the days of ushering in green revolution in the north-west India, which created unprecedented demand for labour in agriculture. During the early 1970s it started with a small trickle to the rural areas of Punjab which soon took the form of a flood during the next one decade. Search of new and/or better employment has been one of the most important reasons for migration of workers. In fact more than two third of the migrants migrates in search for employment and better wage as the primary reason of their migration. However, there are also various other socio-economic reasons, which contribute to large scale exodus of population from the region. For last two decades both the intensity and pattern of migration in rural Bihar have considerably changed. The proportion of migrants has approximately doubled and destination of migration has now become widespread Performance of MGNREGA in the state The table below shows a comparison between larger states in performance of MGNREGA. Table Performance of MGNREGA States Demanded employment Provided employment 65 Average mandays per HH Andhra Pradesh Arunachal Pradesh Assam Bihar Gujrat Haryana Himachal Pradesh J & K Karnataka Kerela MP Maharashtra Punjab Rajasthan Sikkim Tamilnadu Tripura UP West Bengal Chhattisgarh Jharkhand Uttarakhand Manipur Number of HHs Availed 100 days of Employment

78 States Demanded employment Provided employment Average mandays per HH Number of HHs Availed 100 days of Employment Mizoram Nagaland Orissa Pondicherry Andaman and Nicobar Lakshadweep Chandigarh Dadra & Nagar Haveli Daman & Diu Goa Grand Total It is clear from the table that Bihar has one of the lowest figures for the average man days produced among the larger states. The table below shows the status of SC / ST and women access to MGNREGA in the state. Table Division of man days in the state Heads Person-days ( in Lakhs) % SC ST Women In the State of Bihar, total employment provided to the Household is 47.3 Lakhs and the total persondays are 1602 Lakhs. The Total expenditure made till June,11 is crores against the target of 3270 Lakhs and out of the total works Completed is against the work taken up which is In the MGNREGA, total SC coverage is 45%, ST coverage is 2.14 % and the total women participation is 2.5%. Thus there is a clear need to increase access to MGNREGA in Bihar for the rural poor Performance of Leading Social Welfare Schemes Mid-Day-Meal Scheme (MDM) The Mid Day Meal Scheme, based on the child s right to enhancement of nutrition, educational advancement, social equity and hygiene and sanitation, has been an important intervention in both increasing enrolment and retaining students at the primary level. The MDMS was universalized in 2005 in Bihar covering all primary schools, including learning centres. Table below shows the total coverage of children under MDMS at the primary level (Class I-V). The total number of children covered under MDMS at the primary level is lakh. The total coverage is 72 percent, up from 60 percent in , but there is high variation among the districts. Some of the low coverage districts are Sitamarhi and Supaul (25 percent each), Kaimur 66

79 (26 percent), Purnia (29 percent) and Darbhanga (35 percent). The districts with 100 percent coverage are Gopalganj, Jamui, Munger, Nawada, Saharsa and Sheikhpura. Table District wise Coverage of MDMS (Class I-V) ( ) District Total No of Coverage District Total No of Coverage Enrolment Children (%) Enrolment Children (%) Covered Covered Bihar Muzaffarpur Araria Nalanda Aurangabad Nawada Banka Patna Begusarai Purnea Bhagalpur Rohtas Bhojpur Saharsa Buxar Samastipur Darbhanga Saran Motihari Sheikhpura Gaya Sheohar Gopalganj Sitamarhi Jamui Siwan Jehanabad Supaul Jehanabad Vaishali Kaimur Betiah Katihar Lakhisarai Khagaria Madhepura Kishanganj Madhubani Munger The scheme has been now extended to the upper primary level in all the districts of Bihar. The implementation has been far more uniform at this level in the various districts. The overall percentage of students covered under MDMS is 81 percent. The districts of Jamui, Jehanabad and Muzaffarpur have 100 percent coverage. All other districts have coverage of 80 percent, the only exception being Gaya which is at 76 percent. Even though the access to MDM is found adequate, there are several issues related to the quality of food available to the children. This comes out from the several studies on the subject and the implementation experience of various NGOs and BRLPS over the last few years Public Distribution System (PDS) The Public Distribution System (PDS) for essential commodities has been an important part of the measures to promote food security in the state. Four essential commodities (wheat, rice, sugar and kerosene oil) are distributed through PDS outlets. The consumers are divided into Above Poverty Line (APL) and Below Poverty Line (BPL) categories based on the correction to the state government s original survey carried out in Under the PDS, 39,93,973 BPL households were being provided with 35 kgs of foodgrains per month (25 kgs of rice and 10 kgs of wheat). Under Antyoday, 24,28,523 BPL families are being provided with 35 kgs of food grains per month 21 kgs of rice at the rate of Rs 2 per kg and 14 kgs of wheat at the rate of Rs 3 per kg. Annapurna provides 1,66,600 homeless senior citizens with 6 kgs of wheat and 4kgs of rice free of cost. 67

80 Table Overview of Public Distribution System No of beneficiaries ('000) (as Populatio PDS Shops % of on Oct 2008) n Per lakh of District No. (as population Antyo Anna on Dec BPL Total Total Share (Midyear 2008 day purna 2008) est.) Patna Nalanda Bhojpur Buxar Rohtas Kaimur Gaya Jehanabad Arwal Aurangabad Nawada Saran Siwan Gopalganj Muzaffarpur Vaishali Sitamarhi Sheohar E.Champaran W.Champara Darbhanga Madhubani Samastipur Saharsa Supaul Madhepura Purnea Araria Kishanganj Katihar Munger Jamui Lakhisarai Sheikhpura Begusarai Khagaria Bhagalpur Banka Total

81 It is amply clear from the table above that, only a meager proportion of the rural population is able to acess PDS. Therefore, there is an urgent need to enhance the access to PDS for the poor Integrated Child Development Scheme (ICDS) The ICDS p rovides improved childcare, early stimulation and learning, health and nutrition, water and environmental sanitation. It is a targeted programme for young children, and expectant and nursing mothers, which is implemented through trained community-based Anganwadi workers and helpers, and supportive community structures. The ICDS encompasses interventions in Health (Immunization, Health Check-ups, Referral Services and Treatment of minor illness), Nutrition (Supplementary feeding, Growth monitoring and promotion, Nutrition and Health Education) and Education (Early Childhood Care and Pre-School Education) for children in the age-group 3-6 years. This is done through a five point programme: Improve the nutritional and health status of children below the age of six years. Lay the foundation for the proper psychological, physical and social development of the child. Reduce the incidence of mortality, morbidity, malnutrition and school dropouts. Achieve effective coordination of policy and implementation among various departments to promote child development. Enhance the capability of the mother to look after the normal health and nutritional needs of the child, through proper health and nutrition education. Table ICDS District-wise Projects District Sanctioned Operational District Sanctioned Operational Patna Darbanga Nalanda Madhubani Rohatas Samastipur Kaimur Saharsa Buxar Supaul Bhojpur Madhepura Gaya Purnea Jahanabad 7 7 Araria 9 9 Arwal 5 5 Kishanganj 7 7 Nawada Katihar Aurandabad Bhagalpur Saran Banka Siwan Munger Gopalganj Sheikhpura 6 6 Muzaffarpur Lakhisarai 6 6 Sitamarhi Jamui Sheohar 5 5 Bagusarai W. Champaran Khagaria 7 7 E. Champaran Bihar Vaishali By , 544 ICDS projects were operational in Bihar covering all development blocks in all 38 districts. In , 5440 Anganwadi Centres (AWCs) and an equal number of mini-awcs were added. A total of AWCs are now operational in Bihar. 69

82 Table ICDS Number of Projects No. of No. of Year Projects AWCs Total No. of Mini AWCs The actual number of Anganwadi workers and helpers is 99.3 percent of the sanctioned posts. Thus, at the level of the AWCs, the staffing is adequate. The shortage of supervisory personnel reported in last year s survey has been addressed through appointment of Child Development Project Officers or CDPOs (the executive officers at the project level in the block). The actual strength as a percentage for sanctioned strength has increased from 33.8 percent in to 89.2 percent. However, with just 8.3 percent of the 3288 sanctioned posts for Lady Supervisors filled, there is still shortage of supervisory staff National Rural Health Mission (NRHM) National Rural Health Mission has offered unprecedented opportunity to improve the health of the people in Bihar. The current situation of the selected indicators based on NFHS- 3, SRS 2009 and DLHS 3 shows the overall the state is moving towards achieving the goal. Table NRHM Indicators Important Indicator NFHS 3 (05-06) SRS DLHS III (07-08) Other Sources Total Fertility Rate (TFR) (2007) - - Contraceptive Use 34% % - ANC % - Institutional Delivery 22.80% % 47.9 % (CES 2008) IMR 62 per 1000 live 56 (2009) births - - Percentage of Full Immunisation Coverage Due to various health initiatives, the Maternal Mortality Rate has reduced from 371 in to 312 while the INFANT Mortality Rate has decreased from 61 in the year 2005 to 56 in year Similarly the Total Fertility Rate has decreased from 4.3 to 3.9 in the year Maternal Health 33% % (ISB-FRDS 2009) The figure below shows the number of institutional deliveries in the state. The Total no. of Institutional delivery has increased from in the year to in , while the total no. of deliveries from April to November 2009 is 8,31,513. The percentage of increment has been from 225 in to 27.7% in

83 Figure Institutional delivery in the state Janani Evam Bal Surakhsha Janani Evam Bal Suraksha Yojana was launched on July 1, The number of institutional deliveries went up very rapidly and is estimated to be approximately 8, 38,481 in The month-wise progresss since 2006 in number of institutional deliveries is phenomenal which may be seen undernee ath. The payments of Rs in rural areas and Rs 1000 in urban areas to mothers of neo-natals availing institutional delivery have acted as a strong incentive. Table JEBSY Status Indicators Janani Evam Bal Suraksha Yojana ,839 8,38,481 8,38, Child Health In Immunization % of full Immunization coverage has increased from 10.7% ( ) to 53.8 % (ISB 2009), Under Immunization, various initiatives were introduced like alternate vaccine delivery (Couriers) for reach communities which hitherto never had access to Routine Immunization services, the year 2006 was declared as Immunization Year and Wednesday and Fridays were designatedd as immunization days. Furthermoree in Oct, 2008, MUSKAN EK ABHIYAN was launched which included initial survey and tracking of pregnant women and newborn till full immunization is achieved. The table below shows the immunization picture of the state. Figure Immunisation in the state 71

84 The implementation of NRHM has seen seen significant improvement in the state over the last few years. However a lot more needs to be done to enhance the access to public health services for the rural poor in the state Aam Admi Bima Yojana The Aam Admi Bima Yojna was launched on 7 th Aug, 10. The State Govt. to incur Rs crores on the Scheme. Under Aam Admi Bima Yojana, 3.80 Lakhs persons were insured during During , the numbers of new persons insured were 14 Lakhs.(source Economic Survey ) Other Social Welfare Schemes Social Welfare outlay in the State amounted to Rs Crore in The Single highest share of 52% of expenditure in social welfare was for social security, followed by child development (34.4%) and women s empowerment (12.7). The intervention by the state government to address gender disparity can be clubbed under three main heads: education (Balika Cycle and Poshak Yojana), child protection (Kanya Suraksha Yojana), social and economic activity ( Social Security Pension Scheme, Kanya Vivah Yojana and Nar Shakti Yojana) Table 1.53 Flagship Schemes to Address Gender Disparity (Rs. Lakh) Scheme Lakshmibai Social Secutity Pension Scheme (2007) Actual Actual Actual Actual RE RE Nari Shakti Yojana Mukhyamantri Kanya Vivah Yojana Kanya Suraksha Yojana Mukhyamantri Balika Poshak Yojana Mukhyamantri Balika Cycle Yojana Source: Gender Budget, Department of Finance, GOB Summary and Conclusion It is quite evident from the data mentioned above that a lot of effort is required in order to improve the indices related to social and economic spectrum of the poor people. A lot is required to be done keeping in view the gravity of the situation and need to evolve a mechanism to overcome the hurdles that lay in the path of development of the state. At first, the state has to prioritize the issue of inclusion both social and financial for the poorest of the poor community. All efforts have to be ensured to provide amenable environment and policy support to the poor for coming out of the vicious cycle of poverty and contribute emphatically to the overall prosperity of the state. A number of issues ranging from education, health, empowerment, agriculture, investment, economic activity to political support environment besides many others have been enumerated in detail. An attempt has been to delineate the broader contours of understanding about the embedded problem 72

85 afflicting the broader and macro issues. This has been possible with the description of the data related to the indicators to gauge the problem. It has been quite evident from the data that participation of the poor community in general and women in particular is needed the most. Inclusion of the marginalized and vulnerable section of the society is the essential element that has to be incorporated to pave the way for the equitable and prosperous future of the state. Any strategy that is charted out for the social and economic development of the state shall include the element of empowerment of women and overall social and economic prosperity of the household. Any development design that has the capacity to make a reach to the household level and impact it positively shall unleash the innate development potential of the state. This is primarily because an individual and its household shall be the considered unit of development and thus support structures shall also be put in place by the state to ensure participative growth. It is also evident from the different mentioned data that the effort of the governmental institutions alone shall not be sufficient enough to roll out the development agenda of the state. It shall be equally important and required phenomenon that institutions of the poor are created and given responsibilities to participate. These institutions need to be nurtured in such a way that they develop the art of safeguarding their own interests in a sustained way over a period of time. It is an essential ingredient as it shall ensure their participation in accessing resources streamlined through different government programs and departments. Formation and nurturing of community institutions shall be a milestone as government agencies will have complementary and self-managed institutional mechanism to delegate responsibility for the optimal achievement. The institutional structure of the poor shall be an important wheel to smoothen the processes of last mile service delivery. In such a scenario, ownership to the program of the government will find manifold qualitative and quantitative value addition if the institutions of the poor are considered an important stake holders of the development process. As the challenges of improving different development indices are quite large, so different departments of the government, non-government agencies, private agencies and the institutions of the poor shall join hands to make an indelible impact. One of the factors that shall have everlasting impact on the institutional relation is the preparedness on part of community institutions to meet any requirement of the government department and outside agencies as regards the quality and efficiency parameters. The community institutions need to develop as role models and remain prepared for quality scrutiny of any kind. Thus enough resources have to be mobilized to support the system required for efficient management. The history of development phenomenon is a witness to the fact that magical results have been generated if investments are made in community institutions and its stakeholders. The success of AMUL and other Dairy Cooperatives across the nation is quite exemplary and exhorts the policy makers to frame policies that repose faith in the potential of the community and their institutions. The society is moving towards an arena where development has to be a shared responsibility. Community based mechanisms have to be placed to facilitate the management of the responsibility bestowed upon it as regards participation in the development process. The undeniable requirement is the investments in their preparedness. The investment in preparedness here by implies that a lot of social capital has to be generated at the community level itself in order to ensure the sustainability of the community institutions. The dependence on outside factors gets reduced and the probability of inching towards sustainability enhances if the technical know how to operate institutions gets ingrained at the community level. Once the knowledge rests with community, the institutions created by them becomes eligible for approaching continuity and achieving sustainability in the long run. It is quite explicit that in order to move up the ladder and come out of the vicious cycle of poverty, poor need to be organized through institutions, adequately capacitated to participate in different 73

86 undertaken interventions, scale up the livelihood options at the house hold level and manage it in a very transparent and democratic way to ensure inclusion of the poorest. The institutions shall be trained to put forward the righteous demand to the concerned authorities and to ensure its fulfillment. The strength of the nurtured community institutions shall be a parameter for many other institutions to consider it worth investment. In such a situation, attempt needs to be made to intermittently put systems in place for facilitating statutory and fiduciary requirements of effective governance. Once these community institutions show signs of maturity, they can be a very effective tool to ensure foot prints of social and financial inclusion. As regards the canvass of Financial Inclusion, banking through community institutions shall become the order of the day to ensure maximum number of poor in its fold towards financial mainstreaming. Investment by bank in the institutions of the poor will make it possible for the poor household to plan for new livelihood options and bolster the existing one. At the same time, it will also provide an opportunity for a poor household to come out of the clutches of the money lender. Investment in poor is the need of the hour. All attempt of bringing people out of poverty is deemed to lack the luster if either of social or financial investment is ignored. Investment in poor will create enough vibrancy at the bottom of the pyramid and the results would be very evident and shall be starkly different in a positive way. In a nutshell, it can be said that a strategy has to be framed at the state level to bring poor into the fold of inclusion, create institutions of the poor and more so specific of the women, invest in their capacity building, a line of convergence has to be planned with government agencies, nongovernment agencies, financial agencies and many others to support in enhancing social and financial empowerment of the poor person. 74

87 Chapter - 2 Mission and Objectives of NRLM 2.1. Mission, Principles, Values NRLM Mission To reduce poverty by enabling the poor households to access gainful self-employment and skilled wage employment opportunities, resulting in appreciable improvement in their livelihoods on a sustainable basis, through building strong grassroots institutions of the poor. NRLM Guiding Principles Poor have a strong desire to come out of poverty, and they have innate capabilities Social mobilization and building strong institutions of the poor is critical for unleashing the innate capabilities of the poor. An external dedicated and sensitive support structure is required to induce the social mobilization, institution building and empowerment process. Facilitating knowledge dissemination, skill building, access to credit, access to marketing, and access to other livelihoods services underpins this upward mobility. NRLM Values The core values which guide all the activities under NRLM are as follows: Inclusion of the poorest, and meaningful role to the poorest in all the processes Transparency and accountability of all processes and institutions Ownership and key role of the poor and their institutions in all stages planning, implementation, and, monitoring Community self-reliance and self-dependence 2.2. Approach Towards building, supporting and sustaining livelihoods of the poor, NRLM harnesses the innate capabilities of the poor, complements them with capacities (information, knowledge, skills, tools, finance and collectivization) to deal with the rapidly changing external world. Being conscious of the livelihoods activities being varied, NRLM works on three pillars enhancing and expanding existing livelihoods options of the poor; building skills for the job market outside; and nurturing self-employed and entrepreneurs (for micro-enterprises). Dedicated support structures build and strengthen the institutional platforms of the poor. These platforms, with the support of their built-up human and social capital, offer a variety of livelihoods services to their members across the value-chains of key products and services of the poor. These services include financial and capital services, production and productivity enhancement services, technology, knowledge, skills and inputs, market linkages etc. These platforms also offer space for convergence and partnerships with a variety of stakeholders, by building an enabling environment for poor to access their rights and entitlements, public services and innovations. The aggregation of the 75

88 poor, through their institutions, reduces transaction costs to the individual members, makes their livelihoods more viable and accelerates their journey out of poverty. Figure 2. 1 NRLM The interested rural BPL youth would be offered skill development after counseling and matching the aptitude with the job requirements, and placed in jobs that are remunerative. Self-employed and entrepreneurial oriented poor would be provided skills and financial linkages and nurtured to establish and grow with micro-enterprisess is in a Mission Mode. This enables (a) shift from the present allocation based strategy to a demand driven strategy enabling the states to formulate their own livelihoods-based poverty reduction action plans, (b) focus on targets, outcomes and time bound delivery, (c) for products and services in demand. NRLM implementation continuous capacity building, imparting requisite skills and creating linkages with livelihoods opportunities for the poor, including those emergingg in the organized sector, and (d) monitoring against targets of poverty outcomes. As NRLM follows a demandd driven strategy, the States have the flexibility to develop their livelihoods-based perspective plans and annual action plans for poverty reduction. The overall plans would be within the allocation for the state based on inter-se poverty ratios. In due course of time, as the institutions of the poor emergee and mature, they would drive the agenda through bottom-up planning processes KEY FEATURES OF NRLM Social Inclusion and Institutions of the Poor Universal Social Mobilization: To begin with, NRLM would ensure that at least one member from each identified rural poor household, preferably a woman, is brought under the Self Help Group (SHG) network in a time bound manner. Subsequently, both women and men would be organized for addressing livelihoods issues i..e. farmers organizations, milk producers cooperatives, weavers associations, etc. All thesee institutions are inclusive and no poor would be left out of them. NRLM would ensuree adequatee coveragee of vulnerable sections of the society such that 50% of the beneficiaries are SC/STs, 15% are minorities and 3% are persons with disability, while keeping in view the ultimate target of 100% coverage of BPL families. 76

89 Promotion of Institutions of the poor: Strong institutions of the poor such as SHGs and their village level and higher level federations are necessary to provide space, voice and resources for the poor, and, for reducing their dependence on external agencies. They empower them. They also act as instruments of knowledge and technology dissemination, and hubs of production, collectivization and commerce. NRLM, therefore, would focus on setting up these institutions at various levels In addition, NRLM would promote specialized institutions like Livelihoods collectives, producers cooperatives/companies for livelihoods promotion through deriving economies of scale, backward and forward linkages, and access to information, credit, technology, markets etc. The Livelihoods collectives would enable the poor to optimize their limited resources There are existing institutions of the poor women formed by Government efforts and efforts of NGOs. NRLM would strengthen all existing institutions of the poor in a partnership mode. The self-help promoting institutions both in the Government and in the NGO sector would be supported. Further, existing institutions and their leaders and staff would support the processes of forming and nurturing new institutions Training, Capacity building and skill building: NRLM would ensure that the poor are provided with the requisite skills for: managing their institutions, linking up with markets, managing their existing livelihoods, enhancing their credit absorption capacity and credit worthiness, etc. A multi-pronged approach is, envisaged, for continuous capacity building of the targeted families, SHGs, their federations, government functionaries, bankers, NGOs and other key stakeholders. Particular focus would be on developing and engaging community professionals and community resource persons for capacity building of SHGs and their federations and other collectives. NRLM would make extensive use of ICT to make knowledge dissemination and capacity building more effective Revolving Fund and Capital Subsidy: Subsidy would be available in the form of revolving fund and capital subsidy. The Revolving Fund would be provided to the SHGs (where more than 70% members are from BPL households) as an incentive to inculcate the habit of thrift and accumulate their own funds towards meeting their credit needs in the long-run and immediate consumption needs in the short-run. Subsidy would be a corpus and used for meeting the members credit needs directly and as catalytic capital for leveraging repeat bank finance. The key to coming out of poverty is continuous and easy access to finance, at reasonable rates, till they accumulate their own funds in large measure Universal Financial Inclusion: NRLM would work towards achieving universal financial inclusion, beyond basic banking services to all the poor households, SHGs and their federations. NRLM would work on both demand and supply side of Financial Inclusion. On the demand side, it would promote financial literacy among the poor and provides catalytic capital to the SHGs and their federations. On the supply side, it would coordinate with the financial sector and encourage use of Information, Communication & Technology (ICT) based financial technologies, business correspondents and community facilitators like Bank Mitras. It would also work towards universal coverage of rural poor against loss of life, health and assets. Further, it would work on remittances, especially in areas where migration is endemic. 77

90 Provision of Interest Subsidy: The rural poor need credit at low rate of interest and in multiple doses to make their ventures economically viable. In order to ensure affordable credit, NRLM has a provision for subsidy on interest rate above 7% per annum for all eligible SHGs, who have availed loans from mainstream financial institutions, based on prompt loan repayment (This would not be applicable when a SHG avails capital subsidy. Interest subsidy would be provided to this SHG, when they avail a fresh loan after repaying the capital subsidy linked loan). This subsidy would be available to SHGs, where at least 70% of the members are from BPL households, till a member accesses credit, through repeat cumulative loaning, up to Rs 1.00 lakh per household Livelihoods Poor have multiple livelihoods as a coping mechanism for survival. Their existing major livelihoods are: wage labour, small and marginal holding cultivation, cattle rearing, forest produce, fishing, and traditional non-farm occupations. The net incomes and employment days from the current livelihoods are not adequate to meet their expenditures. NRLM would look at the entire portfolio of livelihoods of each poor household, and work towards stabilizing and enhancing the existing livelihoods and subsequently diversifying their livelihoods Infrastructure creation and Marketing support: NRLM would seek to ensure that the infrastructure needs for key livelihoods activities of the poor are met. It would also provide support for marketing to the institutions of the poor. The range of activities, in marketing support, includes market research, market intelligence, technology, extension, developing backward and forward linkages and building livelihoods collectives and supporting their business plans. NRLM would encourage and support partnerships with public and private organizations and their networks/associations for these activities, particularly for market linkages. Rural Haats would also be encouraged to directly link producer groups (SHGs) and individual producers with urban and peri-urban markets through a well-developed system of continuous identification and rotation of beneficiaries. 20% of the state s programme outlay is reserved for this purpose Skills and Placement Projects: NRLM would scale up the existing skill and Placement projects through partnership mode as one of the best investments in youth, and provide impetus to livelihoods opportunities in emerging markets. For strengthening this, various models of partnerships with public, private, non-government and community organizations would be developed. A strong relationship would also be developed with industry associations and sector specific employers associations. National Skill Development Corporation (NSDC) would be one of the leading partners in this effort. 15% of the central allocation under NRLM is earmarked for this purpose Rural Self Employment Training Institutes (RSETIs) NRLM encourages public sector banks to set up RSETIs in all districts of the country. RSETIs transform unemployed rural youth in the district into confident self-employed entrepreneurs through need-based experiential learning programme followed by systematic handholding support. Banks are completely involved in selection, training and post training follow-up stages. RSETIs partner with others, including the institutions of the poor, to realize their mandate and agenda Innovations: NRLM believes that successful innovations can reduce the learning curve for poverty eradication by showing a different pathway out of poverty. 5% of the Central allocation is earmarked for innovations. Those innovations which have the potential for reaching out specifically to the poorest; or for reaching out to the largest number of poor; and having maximum impact with limited resources would be preferred and supported. 78

91 2.3.3 Convergence and partnerships Convergence: NRLM would place a very high emphasis on convergence with other programmes of the Ministry of Rural Development and other Central Ministries, and programmes of state governments for developing synergies directly and through the institutions of the poor Partnerships with NGOs and other CSOs: NRLM would proactively seek partnerships with Non-Government Organizations (NGOs) and other Civil Society Organizations (CSOs), at two levels - strategic and implementation. The partnerships would be guided by NRLM s core beliefs and values, and mutual agreement on processes and outcomes. NRLM would develop a national framework for partnerships with NGOs and other CSOs. Further, NRLM would seek partnerships with various other stakeholders at various levels directly, or through the institutions of the poor Linkages with PRIs: In view of the eminent roles of Panchayat Raj Institutions (PRIs) that include governance, agency, commercial and political, it is necessary to consciously structure and facilitates a mutually beneficial working relationship between Panchayats and institutions of the poor, particularly at the level of Village Panchayats. Formal platforms would be established for regular consultations between such institutions and PRIs for exchange of mutual advice, support and sharing of resources. However, care would be taken to protect their autonomy. Where there are no PRIs, the linkages would be with traditional local village institutions Sensitive Support Sensitive Support Structures: NRLM s process-intensive effort would require dedicated human resources. Realizing this, NRLM would be setting up sensitive and dedicated support structures at the National, State, district and sub-district levels. NRLM Advisory, Coordination and Empowered Committees and National Mission Management Unit at the national level, State Rural Livelihoods Missions (SRLMs) as autonomous bodies and State Mission Management Units at state level, District Mission Management Units at district level, and sub-district units at block and/or cluster levels would constitute these support structures. The institutions of the poor, their staff and other social capital would also provide the support. These structures would have suitable linkages with Government(s), District Rural Development Agencies (DRDAs), and PRIs. The governance of DRDAs would be revitalized with representatives of institutions of the poor and professionalised so that they respond better to meeting the needs of the poor. These support structures would be staffed with professionally competent and dedicated human resources through appropriate arrangements including partnerships and outsourcing of services Technical Support: NRLM would provide technical assistance to the States and all other partners for creating and strengthening their institutional capacities for its effective implementation. It would build national knowledge management and learning forums/ systems. It would facilitate partnerships between institutions of the poor and banking sectors, public and private sectors, for ensuring last mile service delivery to reach the poor. 79

92 It would build a national pool of experts, practitioners and advisers in all the relevant disciplines including social mobilization, institution building, microfinance, livelihoods, skill development, entrepreneurship etc. They would provide handholding support to SRLMs for developing and executing state poverty reduction strategies Monitoring and Learning: NRLM would monitor its results, processes and activities through web-enabled comprehensive MIS, regular meetings of the Performance Review Committee(s), visits by senior colleagues, Local, District, State and National Monitoring Groups and the mechanisms of Review and Planning Missions. Process monitoring studies, thematic studies and impact evaluations would provide inputs to the above. It would also promote social accountability practices to introduce greater transparency. This would be in addition to the mechanisms that would be evolved by SRLMs and state governments. The learning from one another underpins the key processes of learning in NRLM Funding Pattern: NRLM is a Centrally Sponsored Scheme and the financing of the programme would be shared between the Centre and the States in the ratio of 75:25 (90:10 in case of North Eastern States including Sikkim; completely from the Centre in case of UTs). The Central allocation earmarked for the States would broadly be distributed in relation to the incidence of poverty in the States Phased Implementation: Social capital of the poor consists of the institutions of the poor, their leaders, community professionals and more importantly community resource persons (poor women whose lives have been transformed through the support of their institutions). Building up social capital takes some time in the initial years, but it multiplies rapidly after some time. If the social capital of the poor does not play the lead role in NRLM, then it would not be a people s programme. Further, it is important to ensure that the quality and effectiveness of the interventions is not diluted. Therefore, a phased implementation approach is adopted in NRLM. NRLM would reach all districts and blocks by the end of 12 th Five-year Plan. The blocks that are taken up for implementation of NRLM, intensive blocks, would have access to a full complement of trained professional staff and cover a whole range of activities of universal and intense social and financial inclusion, livelihoods, partnerships etc. However, in the remaining blocks or non-intensive blocks, the activities may be limited in scope and intensity. The outlays in these blocks would be limited to the State average allotment for these blocks under SGSY Transition to NRLM All States/UTs would have to transit to NRLM within a period of one year from the date of formal launch of NRLM. Further funding under SGSY ceases thereafter Agenda before NRLM NRLM has set out with an agenda to reach out, mobilize and support 7.0 Crore BPL households across 600 districts, 6000 blocks, 2.5 lakh Gram Panchayats, in 6.0 lakh villages in the country into their self-managed SHGs and their federal institutions and livelihoods collectives. NRLM s long-term dedicated sensitive support would be with them and extend facilitation support in all their efforts to get out of poverty. 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. 80

93 Chapter - 3 Social Inclusion and Mobilization Strategies and Activities Analysis of the context of Social Mobilisation and Inclusion clearly points out the fact that, A. Inspite the joint efforts of all major players (Govt and non govt agencies), only 1/4 th of the rural poor have been mobilised into SHGs. Also several studies and data point out the fact that the quality of SHGs formed sreads across the entire continuum from defunct to independent and well-functioning entity. This disparity in the quality of SHGs formed also gets reflected in the higher level federations. B. In terms of the inclusion of the poorest, data shows that only 12% of the SC HHs have been mobilised. This reveals the fact that a large proportion of the poorest have not been mobilised. One of the biggest reasons for this is the fact that most of the groups have been formed under SGSY which works only with BPL families. So, a large chunk of poor whose names are not included in the BPL have been excluded from taking benefits from it. A range of strategies to acheiving universal mobilisation along with ensuring the inclusion of the poor would be implemented as part of NRLM in the state. A number of processes to ensure the focus on building quality institutions would also be implemented. Details of all the above implementation strategies are provided in the following sections 3.1. Social Inclusion and Universal Social Mobilization In order to ensure that no poor family is left out, a bundle of strategies for social inclusion/mobilization of all identified PoP and poor households into functionally effective and self-managed institutions will be used. The focus would be particularly on most vulnerable sections like scheduled castes, scheduled tribes (particularly vulnerable tribal groups), single w o m e n and w o m e n headed households, persons with disabilities, landless, migrant labourers, isolated communities, minority communities and communities living in difficult areas (especially flood prone, drought prone and naxalite affected). A detailed operational guideline would be developed for area specific vulnerability. The following are the suggested steps to ensure that the poorest are mobilized: Selection of Village, Preparation /scheduling of village meeting Panchayat and villages where leadership roles are in the hands of women and Dalits will be given priority to start with. This would signal the focus and intention of the project. Every block is to be divided into three clusters and it would be prudent to choose a village which is the nucleus village. The village leadership profile will be prepared. The nature & kind of existing leaderships in the village will be figured out. It is useful to understand other players in terms of broad social composition as well as livelihood patterns. The facilitation team will evaluate the choices between starting in a totally new village vis-à-vis working in a village where already SHGs have been formed and functioning, promoted by other Self Help Promoting Institutions (SHPI) or Non-Governmental Organizations (NGOs). 81

94 3.1.2 Actual village entry Meeting and having a dialogue with the entire village is not possible. However, it would be essential for the staff and the CRPs to together meet and provide information to the leaders and opinion makers of every key community and/or social group in the village. In fact, this will be based on a good understanding that the staff will gain about the village even before they enter it. The facilitation team along with Community resource Persons (CRPs) 3 will be instrumental in doing the village entry and mobilization of households Taking stock of current socio-economic situation in the village It will be done along with villagers especially the poor, and opinion leaders. It is a prerequisite that the day and time chosen for the exercise is appropriate and agreeable to a majority of the villagers especially women and poor. If the village seems much divided, it may be best done hamlet-wise and then the data brought into a larger village level meeting creating the opportunity for the social mapping exercise. This will help the facilitation team in making informed decision and triangulation of information that they receive from different sources Identification of Hamlets, where poor are residing. A social mapping exercise will be conducted, demarcating different hamlets with the number of different caste communities HH. It will be facilitated by the facilitation team but undertaken by the community themselves. The exercise will be done at a public place, particularly at the place where poor can participate easily and comfortably. The women headed family, migrant family, landless will be counted separately. A list will be prepared for future reference HH level mobilization. HH level mobilization will be done by visiting each HH of the identified Hamlet and engaging the individual HH or a smaller group of HH in a facilitative discussion. It would help the staff to establish a personal rapport with the individual households. This is essential because the poor and poorest households have been neglected for most parts in the implementation of most developmental programs. Gaining the trust and confidence of these households will be an important step to move forward Conducting a Hamlet level general meeting. This will bring all the potential SHG members at one platform and they will benefit from each other s dialogue and can take a decision to form SHG. Communication material like flip charts and films will be used to brief the villagers about the project. In this meeting, a few village leaders and husband of participating women members are also present Promoting Self Help Groups Using the concepts of affinity and neighborhood, and making use of culturally sensitive IEC materials and taking help of community resource person, SHGs of the poor would be promoted by the 3 Community Resource Person is a community leader, who has long experience as members of organizations and has developed the faith that SHGs are strong tools for empowerment. These successful women have emerged as CRPs in the project to replicate the institutional building process in the new areas with experiential learning and best practices. 82

95 frontline staff. As the task of mobilizing the poor into SHGs is a massive one, the services of multiple stakeholders including CSOs would be used for this purpose. While mobilizing the identified poor into the SHGs, priority would be given to the vulnerable sections like the SCs, the STs, the landless, migrant labour, isolated communities and households led by single women and people with disabilities. A details regarding essential features of SHGs, the non negotiable and the lyfe cycle of a SHG are given in annexure 1 and 2. The trigger for group formation will be regularity of four consecutive weekly meeting and a minimum of target community women are present on a regular basis and express keenness to be a part of an affinity group. Secondly, prominent people in the village including opinion leaders, religious leaders, Panchayat Representatives and Mukhiya have shown interest to support or at least have no opposition/resistance to the project interventions Once the poor are identified using the process mentioned in the preceding section, the process of SHG formation starts with selection of member on well-defined criteria such as, one woman from one family, age of years, able to save whatever possible regularly and as decided by the members, willing to work in a group and ready to spare time for the meeting. As soon as target community women are identified, the facilitation team will have a detailed concept sharing with these potential women members. This will be done with the support of flip charts and other IEC material like films. The group norm setting such as, saving amount per member per week, weekly meeting day, formation of broad bye laws of SHG by the community incorporating the norms of weekly meeting, weekly saving amount, naming the groups, selection of group representatives, interloaning systems, repayment systems etc. will be dealt in detail. A Saturation approach would be followed which will mobilise and take every poor of village into a SHG fold. Once the poor has been mobilised and they joined SHGs, then Village Organisation will finally confirm the list and village is declared saturated in the General Body meeting. A detailed exercise on the scale of SHG mobilisation was carried out. It is envisaged that a total number of nearly 10 lakh SHGs covering 1.25 crore households would be formed Inclusion of Pre-Existing Shgs As part of social mobilization, a comprehensive scanning of the pre-existing SHGs promoted by line departments and NGOs would be carried out. On the basis of the Community Operation Manual, eligible SHGs would be identified for inclusion into the project. If necessary, MoUs would be entered into with the NGOs/CSOs for this purpose. However, a fundamental principle to be followed in this regard would be to include only SHGs dominated by (at least 80% of members from poor HHs) the poor into the project fold. Further, only functional SHGs would be brought into the project fold. The detailed steps involved in taking pre-existing SHGs is dealt under as- The first step in trying to integrate the existing SHGs into the larger state-wide network is to map the presence of SHGs across the State to understand the geographical spread. In order to build on SHGs, already functioning but not been federated, the quality of SHGs will be ensured that certain basic philosophies, norms and practices are adhered to. Grading of 83

96 SHGs will be done to find out what kind of capacity building inputs are required to ensure a basic standard and quality. Capacity building, being an integral part in the process of promoting SHGs and integrating the existing ones, adequate resource allocation will be done in preparedness for carrying out effectively a robust capacity building action plan. Building Federations at different levels for sustaining Collective Action The upper level federations will involve itself in nurturing and sustaining primary groups through ensuring the quality, facilitate learning, manage revolving funds of different genres, and mobilize access to public services and entitlements. Among other things, federations seek economies of scale, larger aggregation, linkages and convergence Formation of Village Organization (VO) Once a minimum number of functional SHGs are established in the village and micro plans prepared, the facilitation team will undertake promotion of primary federation of SHGs. The triggers for initiation of VO will be at least 8 SHG are functional with membership of 12 members, member of SHGs are doing regular weekly savings from last 3 month and SHGs are given training on VO concepts and they are ready to federate themselves. The CRPs would play a catalytic role in establishing the federations. The CRPs would seed the federation concept among the SHGs, usually about 6 months after the SHG formation. This would be followed by the formation of the federations, building its capacities for self-management as per the standardized operating procedures. This would be followed by the efforts to facilitate the access of the federation to financial services and other livelihood support interventions. The VO will have a General Body comprising of all the group members and an EC (Executive Committee) comprising of 2 representatives from each member SHG. The VO will have 3 to 5 office bearers who will carry out the day-today functions and represent the VO in various forums/institutions. The VO will be encouraged and facilitated to have its EC meeting at least once in a month and the General Body meeting at least once in six months. It will also have sub- committees for execution of various roles. The VO operates as a forum or voice of the poor in the village and raises resources required to take up the appropriate development interventions for their member SHGs. This is the forum where the Community Investment Fund (CIF) will be disbursed for further disbursement to the SHGs and its members. VOs may also access bulk loans from MFIs/ banks to lend to its member SHGs. The VOs will aim at building linkages with line departments and other agencies to access their entitlements. The role of VO will as follows- Providing technical assistance to SHG members. Problem solving and conflict resolution in SHGs. Review SHG performance. Facilitate formation of SHGs of the remaining poor in the village. Compile micro plans for the socio-economic development of its members. Review micro plans for the social and economic development of SHGs. Prepare Action Plan for the socio-economic development of its constituent area. 84

97 Network and establish linkages with resource agencies for implementing the micro plans/investment plans and thus ensure the economic and social empowerment of the poor households. Act as a platform for sharing experiences and concerns of SHG members The detail life cycle of a typical VO is provided in annex 3. A detailed exercise on the scale of VO formation was carried out. It is envisaged that a total number of nearly VOs covering 10 lakh SHGs would be formed Inclusion of Pre-Existing Federations Integration of existing federations does not strictly mean disintegration, reorganization or revamp, it means allowing each federation to function independently according to its pre-set mandate, however not undermining the issues such as governance, clarity about vision, proper sense of ownership and frame work of self-regulation. The detailed steps involved in taking pre-existing Federation is dealt under as- The first step in trying to integrate the existing Federations into the larger state-wide network is to map the presence of SHG Federations across the State to understand the geographical spread. The quality of Federation will be ensured that certain basic philosophies, norms and practices are adhered to. Grading of Federation will be done to find out what kind of capacity building inputs are required to ensure a basic standard and quality. Capacity building, being an integral part in the process of promoting Federation and integrating the existing ones, adequate resource allocation will be done in preparedness for carrying out effectively a robust capacity building action plan Cluster Level Federation (CIF) Once a minimum number of functional VOs are established in the village, the facilitation team will undertake promotion of Cluster level federation of VOs. The triggers for initiation of VO will be at least VOs are functional with membership of SHGs, EC of VO are doing regular monthly meeting from last 2 years and VOs are given training on CLF concepts and they are ready to become part of cluster level federation. The CLF will have a General Body comprising of all Executive Committee members of VO and there will be a Representative Executive Committee comprising 1 representative from each member VO. The CLF will have 3 to 5 office bearers who will carryout the day-today functions and represent the CLF in various forums/institutions. The CLF will be encouraged and facilitated to have its EC meeting at least once in a month and the General Body meeting at least once in six months. The role of the cluster level federation will be as- Giving priority to the demands of SHGs and their Federations in the annual plans of PRI by making suitable financial allocation. Leasing out natural resources such as ponds/tanks, market yards and also involving these institutions for proper management and maintenance. Focussing on gender & legal issues such as managing counselling centres, help lines. Dissemination of information & awareness generation on issues as Gram Shaba, health, nitration sanitation, education. 85

98 Taking up matter of tribal, social evil and labour related issues. Providing immediate support to the vulnerable and the destitute. A detailed exercise on the scale of CLF formation was carried out. It is envisaged that a total number of nearly 1600 CLFs covering VOs would be formed. 3.7 Block Level Federation The apex institution is the Block Level Federation. The Block Level Federation will emerge when the SHGs/ VOs/ CLFs have attained a critical strength both in terms of numbers and capacities. This is when the need for converging/ aggregating at a higher level will be required. The requirement will in terms of dialoguing with Government, Private Entrepreneurs, Banks, and MFIs etc. for supporting development both economic and social in their respective geographical area. The role of BLF will be as- Facilitate provision of technical assistance to the CLF, VO and SHG members Problem solving and conflict resolution Undertaking social audit. Promoting & facilitating all support to producer groups/ livelihood groups through livelihood resource pool & partnership with technical partners i.e. Business Development services. Quality management of SHGs. Maintaining MIS. Undertaking micro finance activities, micro credit, insurance etc. Resource generation through partnerships with govt. & non govt. agencies. Mobilisation of community professionals. A detailed exercise on the scale of BLF formation was carried out. It is envisaged that a total number of 534 BLFs covering 1600 CLFs would be formed Livelihood Based Producer Groups Development of livelihood groups (Producer Groups) and their federations (Producer Cooperatives/Companies) will also be facilitated. The producer groups and their federations would derive membership from the base CBO unit viz., SHG. The livelihood groups would be provided support through customized training for village and block level management of enterprises, productivity enhancement, franchise management, quality enhancement and value addition skills. Linkage of these groups to the commercial sector would also be facilitated. Important commodities and livelihood interventions identified within the project in specific districts are Dairy, Agriculture, Incense Sticks, Jute, Makhana, Fisheries, Banana, Honey, etc. This strategy is envisaged with the view of the strength in aggregation. There will be facilitation in the formation of the Producers Group and enable them to enter the market economy on equal terms by creating a level playing field. The Producers Group will be trained to develop their own norms, how to aggregate their produce and also for collective purchase of the input required for a particular activity. The main functions of the producers group at the collective level will be: Purchase or procurement of inputs for production Local processing and storing of inputs and outputs Marketing and selling of the produce 86

99 Collective approach will provide them the bargaining power with the large traders in the value chain of the livelihoods sectors / sub sectors / commodities. The project would develop appropriate package of practices, handhold the producer groups to adopt suitable practices through technical assistance. The trade/ livelihood specific groups would cut across SHGs and will emerge as an identity outside the self-help groups. For example, groups taking up SRI or PVSP as agriculture group, agarbatti making group, vegetable, banana fibres group etc. will take up activities related to their specific trade. The formation of these groups will in no way, replace the SHG-VO-CLF-BLF structure. Any member of the specific trade group shall first be the member of a base group i.e. SHG. The members of the specific trade group will access all financial services only from SHGs on an individual basis and will get technical support from livelihood institutions. Care should be taken not to destabilize the base groups or existing SHGs in promoting the specific trade groups. 3.9 Role of Community Professional and Community Resource Person In order to manage the CBO activities, a cadre of community professionals accountable entirely to the institutions would be required. The services of the professionals would be hired and paid for by the institutions. However, the professionals would be trained and groomed by the facilitation team initially before they take over the responsibilities assigned by the institutions. The CBOs would also be trained to review the performance of the professionals. There will be an investment in creating a large pool of 'social capital' i.e. institutions of the poor, their members and office bearers, community resource persons, community professionals (book keepers, accountants, community animators/facilitators, customer relationship managers in banks etc), to support poor communities. Supply side processes would ensure i m p r o v e d availability o f s e r v i c e s i. e. community agriculture extension workers, Paravets, village health activists, etc. Demand side processes would ensure increased accesses of services through aggregation (e.g. resource persons supporting commodity procurement centres and milk collection centres, bank mitras etc.). Community Professionals in JEEViKA The programme intends to follow a very intensive community oriented, organic development process to build more than 10 lakh community institutions and their federations. Nonetheless, this requires building a cadre of community professionals at an enormous scale who will not only provide a supporting hand in formation and nurturing of these community institutions but managing and leading these institutions to a meaningful cause by imbibing the values of equity, transparency and accountability. There is a cadre of community members such as Community Mobilisers, Bookkeepers, Bank Mitra, and Village Resource Person who have gained through their experience of working with the community, will become Community Professionals. The home grown Community Professionals, who themselves are community members provide a unique and sustainable resource they have local knowledge, are able to communicate effectively with their peers, are trusted by the communities, and are motivated to find local solutions to their communities' problems. Unlike outside facilitators, Community Professionals have a stake in their community s development, are better suited to identifying the constraints and opportunities in their villages, and are much more effective in instilling confidence and mobilizing their communities. They also tend to be more accountable to their communities as they live there and enjoy local legitimacy and trust. 87

100 Community Resource Persons Community members who have experienced the process of coming out of poverty in their own lives as a result of similar interventions would be of immense benefit to triggering the process of social mobilization in new villages. The experience of working with them reveals that the community resource persons are effective in sharing their live experiences and break the mindset of the poor can convince them easily and are able to create a very positive environment for promoting and building new SHGs in new villages/blocks. CRPs are expected to deliver defined set of outputs in a given time frame and CRPs are used primarily as an interim strategy to trigger the process and support the facilitation team and work on a campaign mode to address specific tasks especially on a scale in a given period of time. CRPs are community members selected based on the following characteristics. Active members of mature SHGs/ Village Organization, who have come out of poverty as a result of the intervention and recognized as role models Have good communications skills and relevant experience as members in their groups, accessed and successfully repaid multiple doses of loans and improved their standard of living Gained knowledge and experience in management of groups, clarity on the need of Bookkeeping and role of Bookkeeper, various processes of VO management, clarity on the role and function of Community Activists. Have the ability and skills to organize training programs for the community by drawing lessons from their personal experiences and the best practices of their SHGs and VOs. They have the ability to use their folklore in the trainings and facilitation for motivating the poor women. Ability to document the SHG / VO profile, case studies and best practices of members and use them as training material in the trainings and facilitation. Tasks of Community Resource Person Meet opinion leaders, village elders of the poorest of the poor community and brief what is the purpose of visit?. Conduct a meeting of all existing SHGs and leftover poor households to have a diagnostic study of SHGs and the poverty issues in the village to understand the village and community. Form new groups with leftover poor households as per COM. Give first level intensive training to all SHGs, in batches, on SHG management, meeting process, role of leadership and decision making. Participate in SHG meetings and convince the groups about the importance of best group management practices like weekly meetings, weekly savings, internal lendings, need and importance of Bookkeeping and Bookkeeper. Facilitate SHG members to identify Bookkeepers/community Mobilisers. Get updation of all SHGs records, prepare status reports and enlighten the members about their groups performance Social Mobilization in Non Intensive Blocks The strategy of intensive block will be replicated in few of the Gram Panchayat of non- intensive blocks with limited resources. Initially one cluster will be operational with deployment of lesser no. of staffs (1/5 th of the strength of intensive block). The process of social mobilization will be similar to that of intensive block. 88

101 Annexure Essential Feature of SHG Ownership of the group by the members: The group exists because the members see some value in it in helping them to solve their problems through their collective efforts. Ownership and control of the group belongs to the members. Affinity as the base for coming together: A sustainable, cohesive group needs a common underlying bond on which trust can be built. This may be caste, sub-caste, community, place of origin, occupation, etc. It is essential that the groups are formed naturally and by the will of the women themselves. Mutual help as the foundation of the group s existence: The rationale for the existence of the group is mutual help and progress towards self-reliance and not the passive receipt of benefits. Forum for collective learning: The groups provide a forum for collective learning which rural people find more friendly, based on mutual respect/support, and which is consequently more effective than the individual approach that is commonly adopted. Forum for inter-agency dialogue and cooperation: The groups provide a firm base for dialogue and cooperation in programs with other institutions like Government departments, cooperatives, financial & panchayat institutions; if the groups are functioning well, they have the credibility and the power to ensure their participation in identifying, planning, budgeting and implementation of programs for the overall empowerment of women with a special focus on poor. Cost-effective credit delivery mechanism: The group provides a cost effective credit delivery system as the transactions costs of lending decrease sharply both to the banks and the borrowers. At the same time, individual members maintain control over the pace, timing size and schedules of loans and programs. The group also helps to build the individual member s management capacity to optimize returns. 1. Non-Negotiable for SHGs The non- negotiable for SHGs formed under the aegis of SRLM will as- Regular meetings and attendance of members: Ensuring conducting of regular weekly meetings and regular attendance by all members would build a sense of responsibility and discipline among members. Regularity of savings and internal loaning: Contribution of weekly regular savings as agreed by members builds a sense of commitment and ownership towards the group. Savings builds stakes of members and forms critical capital to trigger the process of internal loaning among members. Record keeping and updated accounts: Keeping proper records and updating builds trust among members and helps in gaining the confidence of banks and other organizations. Annual auditing of accounts and sharing of information with members and other stakeholders such as banks would promote transparency and helps in building good governance and accountability. 89

102 Rules of the group in place and adhered: Framing of norms and adhering the same by members contributed to enhancing the democratic functioning and building ownership of members. The norms were evolved by members and internalized through repeated practice. Mechanisms such as penalties and discussion on deviations greatly helped help in ensuring adherence by members. Repayment of loans as agreed: Timely repayment of loans availed by members; as per agreed schedule is a key indicator of quality groups. However groups with high-level cohesion have the practice of accommodating temporary deviations that are genuine and provide needed flexibility based on the situation. Such a practice promoted greater trust, ownership and sense of responsibility among members. Higher repayments in groups attracted repeat linkages for leveraging larger resources from banks. Rotation of leaders and sharing the work by members: Building leadership among large number of members contributed to sustainability of group and empowerment of individual members. The practice of rotating the leadership each year or a period as set by the group provided an opportunity for all members to take the leadership roles and built their confidence. In addition members were involved to share various responsibilities such as chairing monthly meetings, collecting savings and loans at the meeting, visiting the bank, attending the federation meetings, local panchayat along with office bearers, which has substantially reduced the domination of few persons. 90

103 Annexure Development Milestones of SHGs a) Preparatory or Pre formation Phase: 2-3 months Diagnosis of the block/location, poverty context/issues and needs of the community, Status of existing SHGs/past experience of SGSY and NGOs, clustering of villages/hamlets and assessing the potential for group formation in the block/location Selection of Community Facilitators/ mobilizes, training and orientation Identification of Poor based on the participatory methods b) Formation Phase: 0-3 months Entry-level activities, winning the confidence of the community Involving community resource persons and community facilitators for social mobilization and group formation Orientation to members, naming ceremony, setting the routine for conducting meetings Savings and internal loaning practice, cash box and collection of cash on rotation, evolving norms over a period, special meetings to get greater familiarity and interaction among members. Books of accounts in place and transactions recorded by Community facilitator/mobiliser. Discussions on Financial literacy and purpose of groups, need for leaders and norms for functioning as group Selection of leaders/office bearers and orientation on roles and responsibilities c) Promotion Phase: 3-12 months Opening bank account, transactions and visits to bank Support for food security line of credit Fund assistance and management of funds, lending policies for loans (support redeeming of old debts from money lenders to arrest the income leakages) Sharing of work by members: i. Conducting meetings ii. Visiting bank along with office bearers iii. Collection of cash during meetings Village level interaction and sharing of experiences across groups for 2-3 months AGM of groups completing one year and sharing of audited accounts at the end of the financial year d) Development Phase: months Livelihood planning and need assessment for bank/ CIF funds followed by linkage supporting new IG or existing livelihood activities Promotion of Primary federation participation at Meetings by groups Credit support for Health or other critical social needs affecting vulnerability Entry level activities of Primary federation Rotation of leaders- selection and orientation for new leaders 91

104 e) Growth Phase: months Livelihood linkages and support activities for skill building Repeat linkages from banks/primary Federation Introduction of savings products or increase in savings Service costs for community facilitator Identify 1-2 key Social issues and work on entitlements Insurance literacy and linkages with existing government schemes/programmes Explore the possibility of promoting activity-based groups for livelihood Promotion of secondary federation- discussion with groups and initiation f) Sustainability Phase: months Stabilizing livelihood activities and linkages with banks/primary federation Building activity groups with selected SHG members of a particular activity Insurance and social security linkages (access to pension and other schemes) Education and health linkages- identify critical gaps and design specific linkages (for e.g. anaemia, nutrition, Pregnant Women and child health, preschools) Graduation of members/leaders as Community resource persons Support secondary federations to stabilize activities Service costs by groups to support federations 92

105 Annexure - 3 Phases and Life Cycle of a Village Organisation a) Pre formation Phase: 0-3 months Scoping study for federation Seeding the concept through Interactions with community leaders and SHG members Exposure visits, Systematic training modules Evolving Bye-laws and initiation of federation Constitution of the general body, Adoption of bylaws, Election of Executive Committee Formation Phase: 3-9 months Constitution of functional committees and training, Opening of Bank account, Appoint of Bookkeeper CIF fund initiation Training Members on their rights and entitlements identify key issues for collective action Support for livelihood planning New group formation and saturation of poor Functional Phase: 9 months onwards Stabilizing Systems of CIF management in terms of appraisal, sanctioning, monitoring, accounting and financial management (includes working capital management, repayment), Supervision and review of Community cadres in place Initiating dialogue for linkages with panchayat/ bank Accomplishment of Legal compliances Growth Phase: 15 months onwards Monitoring and building SHG bank linkage, regular monitoring of the repayments Preparing an action plan with milestones on entitlements and training ( insurance and social security) Linkages with panchayat/ Government and banks Rotation of leader. b) Sustainability: 48 months onwards Perspective plan and future direction Cost coverage of services and operations (salaries of community service providers, other operational costs) 93

106 Chapter - 4 Financial Inclusion 4.1. Context of Financial Access to the Poor Performance of financial institutions addressing the issue of making finance accessible to the poor had been short of desired level in the state. Even the attempt to link the poor who are organized in the form of SHG s to the bank met with unsatisfactory results. A paltry amount of crores had been extended to the number of SHG s as regards the SHG-Bank linkage program in the financial year The data mentioned is for the period up to September The scenario had its implications and they made a detrimental impact on the economic development and business prosperity with in the state of Bihar. Scenario of credit access by the poor is still abysmal as the state has also witnessed a parallel informal financial flow to the poor. The reports confirm that they are doing a roaring transaction of over Rs.3000 crores a year in some selected districts of the state. Such a huge transaction at a high interest rate of around 5 to 10 % has attracted the attention of the antisocial elements also as it became the easy source of money. The operation of organized informal source of banking has its impingements on the self-dignity of the individuals as in many occasions person has to do away with the ancestral property also for not repaying the money on time. Such a scenario exists as mainstream financial institutions failed to meet the needs of poor and deprived sections of the society. The data released by the government on banking scenario Vis- a Vis its reach to the poor does not portray a very promising picture. The data released by the state government in its Economic Survey Report is as following: Total no of Commercial Bank Branches: 4156 % of commercial bank branches located in Rural, Semi Urban and Urban Areas respectively are: 57.72%, 22.45% and 19.83% respectively. No of Regional Rural Banks as on Dec 2009: As on March 2010 with respect to Scheduled Commercial Banks, one bank branch exists for every 23,924 of the population whereas the figures in Punjab, Maharashtra, West Bengal, Tamilnadu, Andhra Pradesh are much better with a bank existing for every 7910, 14016,17052, and respectively. The national average for the same is approximately The credit deposit ratio is pegging at 32.13% much below the national average of 72.7%. NO of SHG s credit linked during : Amount of Credit Linkage done during : 295 Crores At state level, Bank loan outstanding against SHG s in terms of numbers and amount as on March 2010: and 557 crores. At National Level, Bank loan outstanding against SHG s in terms of numbers and amount as on March 2010: and crores. It is very evident from the data that investment by the bank in the state in general is found short of desired level. Similar is the case of investment in the poor who are organized in form of SHG s. To spurt the process of economic development, capital flow to the community is required at the first level. In order to aid the process of credit accessible to people alternate channels have been put in use the world over. The approach of reaching out to the poor with the concept of micro-finance had met with successful results. Therefore, the project has a component of Micro-Finance to leverage timely credit to the poor and aiding the process of their development. A very important aspect of risk mitigation 94

107 measure for the vulnerable community is making provisions of insurance. Poor are the most serious victims of the adversities and thus there is a need of protecting poor from suffering extreme tribulations. Thus the role of insurance will occupy a very significant dimension. Special effort has to be put on rural insurance through community institutions. The scenario of the rural insurance also needs quite innovative interventions. There is an urgent need to look in to the issues of insurance accessible to the poor and vulnerable community. There is a need for the mechanism where a rural poor is protected in monetary terms against the loss of livestock, human lives, crops and other assets which provides him a source of livelihood. This becomes all the more important as the state has large number of districts which get flooded during the rainy season. During the flood season Lakhs of people are rendered homeless and suffer from the huge loss of property Strategies for Financial Inclusion The SLRM shall be leveraging on the quality of the institutions made and nurtured perpetually over a period of time. All effort shall be made to ensure that poorest of the poor are included in the social net of SHG s and their federations. The SRLM shall be working on the twin strategy to capitalize the poor and their community structures. This shall be done prima facie by ensuring capital flow from the SRLM in the form of Community Investment Fund to the quality institutions. At the same time, effort shall be taken to streamline the business processes in such a way that sourcing financial services from the mainstream financial institutions comes with ease and predictability. All the required effort shall be put in place for the inclusion of the poor in to the mainstream of finance. As regards the policy matter and its roll out, Community Operational Manuals shall be made for detailing out the business processes for availing revolving fund as well capital fund from the SRLM. This COM shall be periodically reviewed and due incorporations shall be made to cater to the emerging requirements. Thus the COM made to roll out the business processes for funds from the project shall act as guiding manual.. Following are the broader contours of proposed policy related to capitalization of the community institutions and its scope shall be broadened as per the requirement and need of the institutions nurtured under SRLM: Financial assistance to be provided as part of NRLM The project JEEViKA has a component of Community Investment Fund (CIF) mainly aimed at the process of capitalization to Self Help Groups and their primary level federations. The premise of capitalization addresses the issue of Strengthening of community institutions, improving its dynamics and thus making it much more vibrant and decision oriented. With the progress of the project JEEViKA, the impact of Capitalization had been explicitly visible in terms of strengthened group dynamics, debt reduction of women members and mitigating other vulnerabilities like health shocks. The capitalization of group through the process of Micro-planning indicates that there is a large credit gap felt at member level in terms of its accessibility from the mainstream financial sources. The poor has to depend on informal and exploitative sources of credit flow to meet one s important and urgent requirements. This kind of situation is totally uncalled for as suffers are the most vulnerable sections of the society. Keeping the above scenario in view, the project shall be having a component of Community Investment Fund to cater to the different requirements of the community members and their federations. The project shall be allowing the organic demand from the community institutions. There shall be a process of Micro Planning in place that will ensure the participation of members in the overall planning of estimated investment required. The process of Micro Planning shall be undertaken by the concerned trained people to facilitate the participation of the poorest of the poor in to the whole process. All due attempt shall be made to ensure that most vulnerable people get the priority over others in the utilization of fund being provided. The access to 95

108 resources by the most vulnerable shall be at the top of the priority while the formulation of any strategy. The community Investment Fund shall be categorized under following categories: Initial Capitalization Fund The Initial Capitalization Fund provided by SRLM shall be given to the groups up to a maximum of Rs as stipulated under the project JEEViKA. The SRLM shall build on the experience drawn already through project JEEViKA. Thus the quantum of initial capitalization fund shall be kept at maximum of Rs 50,000/ group initially. However the learning of ensuring finance from the mainstream financial institutions shall also be put in to practice. This shall result in reducing the amount of ICF to around Rs 20,000/ Group. The SRLM shall be open to both the assumptions made above. In the processes under SRLM, the aspect of providing Rs20, 000/ group as seed capital can be tested first and then the same can be supplemented with ensuring credit linkage from the mainstream financial institutions. As regards the flow of ICF to the community institutions, it can be given directly to the SHG s or through the federations of SHG s based at the village level. The federation of SHG s at the village level shall be called Village Organization. The details of the business processes and eligibility criteria of community institutions shall be enumerated with in the ICF manuals for SHG and VO. However, the mention of broader contours of criteria shall help in further incorporating them as quality criteria on part of SRLM. The minimum criteria that shall be adhered to before providing ICF to the groups are following: SHG shall be at least 3 months old. It shall have undergone training modules as stipulated in COM. The members of the SHG have undergone sensitization on Micro Planning and have got a trained book keeper in place. The concerned SHG is following Panchasutra, i.e, Regular Meeting, Regular Savings, Regular Inter Loaning, Regular Repayment, Regular Up-Dation of Books of Records. Similarly the eligibility criteria shall be worked on for routing the ICF flow through the federated structure at the village level. Some of the criteria that shall be taken in to consideration are following: The VO shall be at least 6 months old. It shall have undergone all training modules as stipulated in COM. It shall have a trained Book Keeper in place to ensure updating of all Books of Records. The above mentioned are some of the criteria besides many others that have not been mentioned over here as it shall be decided later and put as ingredients of Community Operational Manual. This related COM shall lay out the business processes for ICF to be routed through Village Organizations Health Risk Fund One of aspects that affect the poor to a large extent is the inability to withstand the pressure of meeting both ends during the time of health shocks. This needs to be addressed by project that aims to make improvements in the livelihoods promotion. Health vulnerabilities affect the livelihood scenario of a household in very adverse way. Taking cognizance of the empirical evidence of the situation, there shall be an attempt to create a dedicated fund addressing the health requirements of the community members. This fund shall be parked at the primary federated structure of the SHG s and all the members shall be accessing it during the health emergencies. The detailed eligibility criteria shall be mentioned in the Community Operational Manual to support business processes of the Health Risk Fund. 96

109 Food Security Fund The state of Bihar is an agrarian society and agriculture is an important source of earning livelihoods. Nonetheless, majority of the population who are poor are landless also. They earn their livelihoods out of the labor done at other s field. This does not remain enough to meet one s both ends. Thus generally family members of the poor household migrate to other places in search of job opportunities and source of income. This leads to dependence of the family members of poor household on the remittances sent from outside. The sent remittances has no regular pattern and thus poor household find some months of the year quite problematic in terms of food availability to feed themselves and their children. They have to approach the informal exploitative systems existing in the village to meet the bare minimum of food requirement. This adversely affects the health requirements of women and children of the poor households. This kind of situation cannot be allowed to continue perpetually and thus effort shall be made to ensure food security to the poor community in general and the most vulnerable poor household in particular. The implementing agency shall be formulating a policy related to the food security fund to be made available to the Village Organizations. The eligibility criteria and business processes to support the fund flow and its recovery shall be enumerated in detail in the Community Operational Manual related to the Food Security Fund Livelihoods Fund The sustainability of the sources of income for the poor households remains the corner stone for any institution implementing the livelihood initiatives. This is possible only if a strategy is being put in place to ensure diversified portfolio of income source for a family members of poor household. This needs that fund is being created to meet the requirements of poor households for diversification issue. Such kinds of activities shall be looked after through the fund created as Livelihoods Fund. This fund shall also be routed through the community institutions at the Village Level. The eligibility criteria and business processes to support the fund flow and its recovery shall be enumerated in detail in the Community Operational Manual related to the Livelihoods Fund Miscellaneous Fund There is an anticipation of emerging requirements of the community with passage of time. These demands can be very diverse and may not be possible to plan about them in the beginning itself. The idea is to keep certain percentage of the total fund earmarked for the emerging requirements of the community and its institutions. As per the need the modalities of the flow of fund shall be formulated and incorporated in the Community Operational Manual. Note: The above mentioned funds shall become part of the Community Investment Fund. This fund shall comprise of the revolving fund and capital fund as available for the community institutions under NRLM Bank Finance As already mentioned one of the most important aspects of the livelihood promotion incorporates within itself a component of enabling environment for access of financial services by the poor and marginalized section of the society. Access to mainstream financial sources will bring a lot of confidence to a poor household in terms of the flexibility it provides at the time of emergency needs. In order to promote sustainable livelihoods of the poor & women, it assumes significant importance that continuous and supportive role is played by different stakeholders like that of mainstream 97

110 financial institutions and other market players. In order to bring different players achieve the aim of economic prosperity in the state of Bihar, BRLPS envisages to make significant strides in terms of building and nurturing quality institutions like that of SHG s and their Federations and linking it with mainstream financial institutions. Some of the efforts that shall be put in practice are following: Taking the issue of Micro Planning with Banks for its acceptance as fiduciary requirement for credit The SRLM shall take opportunities with Banks to inform that it encourages a very comprehensive process of involving community in preparing their own plan to enhance livelihood opportunities and increased income. The process is classified as Micro-Planning of the SHG s. This takes in to account both the consumption and production requirements of the members and estimates the credit and non-credit requirements of the group in due details. There is a great deal of participation by the members of the groups and that is a process initiated to pave the way for disciplined financial transaction with mainstream financial institutions. The project has enough evidence to show that groups have performed very well and have maintained high level of recovery of loans given by different banks. The same can be confirmed from the respective branch of the banks. The project JEEViKA has been getting tremendous support from different mainstream financial institutions and all effort shall be made to ensure that banks stand in good stead in the effort of capitalization of Self Help Groups or other community institutions. The anticipated effort and intervention made by different financial institutions shall go a long way in proving to be a milestone as far as the issue of financial inclusion is concerned. The SRLM shall make all effort to continuously solicit the support of mainstream banks in order to ensure better and predictable access to financial services for the poor and marginalized sections of the society Partnership with the commercial Bank and signing of MOU s Making poor an attractive investment destination for the financial sector is foremost objective of the currently executed World Bank supported rural livelihood project as well as that of SRLM. There shall be primarily investment in developing good quality clients for the commercial banks by mobilizing and building strong community institutions. It is now proposed that these projects enter into formal partnership arrangements (MoUs) with the commercial banks with a view to: Developing shared commitment to increase access to financial services to the poor while making it a profitable proposition for commercial banks Expanding the banking foot print in the unbanked and remote areas and enhancing the quality of service provision in the last mile Joint strategies for deepening financial inclusion efforts by developing alternate models for doing business with the poor delivery channels, new products and financing methodologies Developing partnership with community institutions for reaching financial literacy and credit counseling services to the poor Creating dedicated cadre of community professionals, staff/consultants (spear head teams) for furthering the objectives of MoU Improving quality of service delivery at bank branches by setting up Bank Mitra-Help Desks for SHGs In order to improve the quality of delivery of banking service for the poor and illiterate clients at the branch level, the concept of "Bank Mitra - Help Desks" has been successfully tried out in Bihar. There 98

111 shall be a dedicated effort to scale up the Bank Mitra concept across the operational areas. The Bank Mitra provides help to poor women clients by giving them information on banking products, account balances, opening up of savings accounts, filling up forms, vouchers and loan documentations. They also follow up on recovery of loans. The help desks have considerably reduced the waiting time for poor clients who have to travel long distances. It has also reduced burden of bank staff to facilitate banking transactions by illiterate clients. The strategic partnerships with the banks will help scale up the concept of "Bank Mitra" as well as make investments for dedicated IT terminals, PDA or hand held devices for making this service efficient, reliable and sustainable Expanding banking foot print in program villages by leveraging technologies Current strategies for putting up banking touch points in unbanked areas heavily depend upon the technology providers providing business correspondent services. The partnership with SRLM can help remove this bottleneck by increasing supply of quality business correspondents through: Collaboration with NABARD for creating a pool of potential business facilitators/correspondents under Financial Inclusion Fund. The commercial bank can use this pool for setting up banking touch points in unbanked locations on saturation basis. Collaboration with NABARD and Technology Providers for creating last mile financial architecture under Financial Inclusion Technology Funds. The village level community institutions can act as Customer Service Providers (CSPs) for the banking touch points in different villages. The micro finance operations of these community institutions shall be computerized using sophisticated financial technologies. These platforms can seamlessly integrate with CBS platforms allowing the village level community institutions to originate deposit, loaning and insurance business for the commercial banks Investment in business process re-engineering to cope with the expanding banking foot print : This strategy will have two sub-components. The first component allows the projects to co-produce financial services in the last mile by sharing responsibility for the business origination, client identification and initial documentation related processes. The risks associated with this form co-production model can be effectively mitigated by deploying dedicated self-service terminals or web-enabled terminals with standard business process modules. For example bulk account opening modules which will allow the accredited project staff to provide KYC documentation in both physical and electronic form reducing the lead time for account opening. The second component is to develop centralized processing facilities to effectively back up the business origination services in the front end. This can result in substantial growth in business development in rural branches as well attain objectives of financial inclusion strategy Financial literacy and credit counseling The projects encourage community institutions to prepare a Micro Plan by aggregating investment plans of member households. Financial literacy efforts backed by financial counseling by livelihood professionals have improved the quality of household investments besides enabling them develop clear road map for their wealth management. Linking with the rural livelihood projects will help the banks deepen the reach of their financial literacy efforts through information kiosks, knowledge centers and counseling systems. 99

112 New Product Development The saturated approach adopted by SRLM in mobilizing communities and initiating livelihood support services brings economies of scale and economies of scope to develop customized products to the new class of clients created out of the partnership. Migration is prevalent in several backward districts where the rural livelihood projects are operating. The micro planning processes in these projects can clearly map migration patterns in terms of the scale, the seasonality and size of remittance business. The partnership with community institutions can help the commercial bank to develop customized remittance service. Other opportunities include - savings schemes against NREGA and other social security payments, overdraft facilities against anticipated NREGA payments, accelerated roll out of general purpose credit card to clients graduating from financial literacy and credit counseling sessions. Provision of Interest Subsidy: The rural poor need credit at low rate of interest and in multiple doses to make their ventures economically viable. In order to ensure affordable credit, a provision would be designed for subsidy on interest rate above 7% per annum for all eligible SHGs, who have availed loans from mainstream financial institutions, based on prompt loan repayment (This would not be applicable when a SHG avails capital subsidy. Interest subsidy would be provided to this SHG, when they avail a fresh loan after repaying the capital subsidy linked loan). The detailed process would be worked out taking learnings from the successful interventions across the states Dedicated human resource support for implementing MoU Several projects have tried different mechanisms to make the partnership with the commercial banks work. These include setting up of bank linkage committees at community institutions level, creating trained cadre of community professionals for financial inclusion and hiring of retired banking professionals, etc. Given the range of opportunities that the type of engagement with the commercial banks now envisaged, it would be desirable that banks invest in dedicated staff resource for implementing the MoU. Perhaps, it would be possible for the SRLM to co-invest in such mechanisms based on mutually agreed outcomes Exposure Visit of Bank Branch Officials and other senior officials of the Bank There shall be a strategy being put in place with regard to ensuring the exposure of the bank officials to the functioning of grass root community institutions of the poor. This shall provide the opportunity to bank officials to explore the opportunity of looking at poor with sense of banking opportunity. This approach of empowerment of community institutions is likely to nip the theory of banking with poor as a social obligation in the bud itself Expected Outcomes Flowing from the objectives of the proposed partnership, the success of the MoUs can be measured against the following three outcome indicators. Improved quality service delivery and predictable financial access to the poor. Total financial inclusion of the poor covering full range of financial services, including savings, credit, insurance and remittance Improved profitability of rural branches of commercial banks. 100

113 The above mentioned aspects of the strategy act for both demand and supply side of the phenomenon. The SRLM shall be acting both to create demand and at the same time shall be actively involved in ensuring the supply side Facilitating access to Insurance Services A Poor person has to withstand different shocks that reduces a household adapt to the mercy of the existing exploitative system. These shocks are related to the inability of a poor person to have capital cushion to fight it. Serious health problem or death of an individual member within a poor family makes a detrimental impact on its effort to meet both ends. A poor house hold finds no recourse to overcome with the problem. In such a scenario, it shall be important for the SRLM to provide poor people with a cushion of insurance services to fall back on. This is likely to mitigate some of the problems being faced by a poor HH during the time of adversity. Some of the steps that shall be put in place to facilitate insurance services for the poor are following: Ensuring access to government supported programs like Aam Aadmi Bima Yojana and Janshree Both the Central and the State Government is working towards making an attempt to bring poor into the social safety nets by rolling insurance policies for the life and disability coverage. The Government has rolled out policies like Aam Aadmi Bima Yojana and Janshree to cover the poorest of the poor and poor respectively. The problem lies at lack of its access by poor and more so having lack of knowledge about the same. SRLM shall be working actively to act as bridge between the poor and the government to ensure better spread of awareness about the same and its access. The SRLM shall invest in building capacities of the community institutions to take up the role of reducing or mitigating vulnerability to health or death shocks at a poor house hold level. As regards the implementation arrangement being rolled by SRLM, the details of the roll out shall be put as a policy and shall be incorporated under Insurance COM Insurance to Livestock It is a well-known fact with respect to Bihar that possession of livestock by a poor family helps in enhancing its income. In such a scenario, it becomes very important that the livestock of a poor house are insured against any loss out of death. The SRLM shall work very strongly towards ensuring access to livestock insurance for the poor household. The knowledge gap shall be adequately bridged to encourage poor household to participate in the process of livestock insurance. As regards the implementation arrangement being rolled by SRLM, the details of the roll out shall be put as a policy and shall be incorporated under Insurance COM Insurance against Recurring Health Shocks Health shocks to a poor household bring it to its knees. It creates numerous problems for the family and one finds it extremely difficult in order to overcome it. In such a scenario, it is important for livelihood promotion institution to initiate the process of integrating such products in its portfolio that stands in good stead at the time of adversity arising out of health reasons for a poor household. SRLM shall be making active attempts to lay down the processes and strategies to facilitate access to the provisions of insurance services by a poor household. 101

114 Chapter - 5 Strategies and Activities to be taken up as part of Livelihood Promotion 5.1 Vulnerability Reduction Food Security Background Analysis of the food security situation in the state of Bihar (section 1.4) shows a grim state of affairs. The Food security index, based on mortality and malnutrition among children under 5, shows that of the 38 districts in the state, only 8 are categorized as secure, 12 as moderately secure and rest 18 as extremely insecure districts. Furthermore it has been observed that a majority of the districts having large percentage of SC population are categorized as extremely insecure. Analysis of the secondary data also shows that the access to PDS is low especially among the Scheduled castes. Analysis of the micro credit planning done by the SHGs initially formed in BRLP also revealed that in many cases the SHG members were taking credit to purchase food, mostly rice and wheat. In some of the groups it was observed that as high as 7 to 8 out of the 12 members needed credit only for food. Thus the food security context highlights the need and importance of interventions aimed at enhancing the food security of poor households BRLPS experience in addressing food security Bihar Rural livelihood promotion Society has over the last 4 years, put in place multiple interventions to address the issue of food security. These include: Production Enhancement through different agriculture technique The project has successfully piloted and scaled up the System of Rice Intensification (SRI) in Paddy, and subsequently, replicated the principles in wheat to enhance productivity with nearly 1, 00,000 households. This has had a significant positive impact on food security at the household level. An external impact assessment done for the year revealed that there has been an 87% increase in productivity in paddy and 97% increase in productivity in wheat. The assessment revealed that was as result, 26% of the sampled HHs have reported a marketable surplus after taking care of their family s food requirement as against just 13% in the previous season. Community managed Food Security intervention BRLPS has piloted and scaled up a community managed credit and food distribution mechanism. As part of this the Village Organization assesses the food gap at the household level for each of its members, aggregates the food requirement, procures it in bulk from nearby markets and distributes it to the households as in kind credit. The households repay the amount in easy installment over the next 3 to 6 months and such cycles are repeated as per the need. BRLPS piloted the intervention in about 50 VOs in the 6 districts. To start with based on the successful results from the piloting of the intervention in these 50 VO s the project took a decision to universalize the intervention across all the VO s that have achieved certain basic milestones in terms of securing food of their 70% to 80% of HH. Guidelines were prepared and there was a massive training of the personnel for a common understanding about the guidelines. Currently there are 578 VOs that have started the Food Security 102

115 Intervention and through this intervention nearly 50,000 HHS are able to have assurance of food availability throughout the year. Piloting the management of PDS by VOs 3 Village Organizations in Gaya district have taken over the functioning of the PDS to ensure continuous availability of the subsidized food grains for its members. In all the 3 cases, as a result of the intervention, members are today able to access subsidized food grains every month as opposed to once in 3 to 4 months that they had to in the previous Strategies to Enhance Food Security A combination of strategies would be put in place to enhance food security. The strategies are discussed in detail below; Production enhancement in Paddy and Wheat Enhancing productivity for small farmers and lease farmers has proved to be a successful strategy to enhance food security in the state over the last few years. It is also being proposed in the SRLM to bring more crops under production enhancement. The detail of the implementation of this intervention is given in the later section in the chapter. Community managed Food Security Mechanism The process to be followed as part of the food security mechanism would be the same as the one which has been successfully piloted by BRLPS in over 600 villages. The detailed process along with the process flow is given in later section. An exclusive food security fund would be earmarked to finance the village organizations to take up this intervention. Detailed process guidelines would be prepared and VOs that meet the agreed graduation indicators as mentioned in the guidelines would be provided with this fund. A key strategy in scaling up of this intervention would be to effectively utilize the services of community resource persons that are specifically trained in the food security intervention. Grain Bank A successful innovative approach to secure food for the poorest through Grain Bank has been practiced by different partners NGOs of Oxfam India and others agency in Bihar. The bank has been run by the poor women with the minimal support fund from the agency. During harvesting members deposit their grain into the bank and at the time of food scarcity (especially during flood) they take it from bank with the commitment of repaying it with 25% more in next harvesting session. More than 200 Grain Bank is running in the deferent districts of Bihar such as Patna, Bhojpur Jamui, Saharsa and others. Concept would also be replicated in project area. Sharing of concept through agency and exposure in their area, would be a great learning for both community as well as Project staff. Project would like to have partnership with two to three agencies that have good experience on establishing and running the Grain Bank Enhancing access to the PDS Ensuring access to PDS would also be one of the important strategies that would be taken up. This would include i. SHGs and VO s exercising their bargaining power to improve the functioning of PDS: As part of this, the capacities of the village organizations will be systematically built and necessary facilitation done to ensure that the village organizations engage with agencies implementing PDS and ensure that the PDS delivery is regular and on time. It would be ensured that the VO training modules would have these components included in it. 103

116 ii. VOs taking over the management of PDS: Wherever possible the VOs would be encouraged to take up the PDS dealership themselves. The necessary training on management of the PDS would be provided to these VOs Health Security Background Analysis of the health situation in the State reveals that state lags much behind the national average in almost all important health indicators. The MMR and IMR at 312 and 62 are much higher than the national figures which are 254 and 53 respectively. The other issue of major concern is the lack of adequate health infrastructure thus reducing the access to public health facilities of the poorest. As against the sanctioned Health Sub Centres of 16,623 there are only The APHCs in the state are supposed to be equivalent to the PHCs elsewhere in the country however many are still not fully operational. Similarly the existing PHCs need to be upgraded to the Community Health Centre level for providing specialized services. The implementation experience in BRLPS indicates that expenditures on health are a major drain on the household expenditures and very often to meet these sudden requirements the household ends up borrowing money from informal sources (money lenders) at high interest rates (5% 10%/ month). Many times assets are mortgaged to obtain these loans. Thus there is a distinct need to address the issues related to health as part of the vulnerability reduction interventions under NRLM Experience of Health Interventions in BRLPS Given the important influence of health on the vulnerability reduction of poor, BRLPS has over the last 3 years piloted 2 Health specific interventions (i) the Health Risk Fund and (ii) Enabling access to health services through the placement of Women Outreach Worker (WoW) Health Financing (Health Risk Fund) HRF is a fund available to the VO s specifically to meet the financing needs of the SHG members for health purposes (incl. both minor and major illnesses). The expenditures can be on transportation, medicines, diagnostic tests, consultation fees, hospitalization fees etc. It has 2 components; the first includes Health savings, wherein SHG members save an agreed amount every month and second includes Health credit/loan, wherein members could borrow funds over and above their current savings in the health account. The interest rate charged is lesser than the usual rate and the process is simple and designed to ensure easy and immediate access. Nearly 600 VOs have taken up the Health Risk Fund intervention as part of the Bihar Rural Livelihoods Project and it has been observed that many households have been prevented from falling into debt traps because of health ailments. Also women are in a much better position to address their health needs as a result of this intervention. Access to health Services BRLPS has also piloted the concept of ensuring access to health services for the poor through a village Women Outreach Worker (WoW) in combination with mobile vans. A WoW is appointed for 2-3 villages and trained especially in Reproductive Child Health by a technical partner Janani. These WoWs facilitate the access of SHG members to professional health services at the block and district level. They also provide basic services such as testing the blood pressure, diabetic levels, and pregnancy to the households at their doorstep at reasonable rates. In addition they also mobilise SHG households for health checkups offered through the mobile vans once a fortnight. The mobile 104

117 vans have a doctor and offer testing facilities for HIV rapid test, Kala Azar, TB and Diabetes. The intervention has resulted in improved access to professional health services for the households and especially women Strategies for addressing Health Security Learning from the implementation experience of BRLPS and experiences from similar projects in Bihar, the following strategies would be used to address health related vulnerabilities as part of NRLM in Bihar. Health financing through the health risk fund The process to be followed as part of the Health risk fund intervention would be the same as the one which has been successfully piloted by BRLPS in over 600 villages. The detailed process along with the process flow diagram is given in annexure xxx. An exclusive Health Risk Fund would be earmarked to finance the village organizations to take up this intervention. Detailed process guidelines would be prepared and VOs that meet the agreed graduation indicators as mentioned in the guidelines would be provided with this fund. A key strategy in scaling up of this intervention would be the role to be played by the health workers who would be appointed for 2 to 3 VOs each. These health workers would provide counseling and facilitation services to the households that access the health risk fund. Providing access to health services The approach would be to i. Improve the quality of service provision at the PHC s through the placement of Case Managers ii. Increase the access to existing APHC s through greater awareness and through mobilization by the Jeevika Sahelis iii. Increase access to the public health facilities by operating a mobile van service (with a doctor and medicines on board). iv. Deliver health services at the village level through health workers appointed by the VOs Details about each of these approaches are as follows: i. Improve the quality of service provision at the PHC s through the placement of Case Managers (Swastha Mitra) The case manager is a person who is well acquainted with the PHC its physical layout, procedures and is recognized by the PHC as a resource person. The case managers ensure that when SHG members and their families get sick, they receive timely and good medical attention either as out-patient or inpatients. The Health worker (whose role will be discussed at length later) to be appointed for every 2 to 3 villages will be constantly in touch with the case manager over the mobile and would inform well in advance whenever the SHG households are visiting the PHC. This will enable the case manager to prepare and ensure that the households do get treated in a better and faster way at the PHC. This would ensure greater reliability and lesser time spent in the PHC which means that the poor households will lose fewer days of work and have reduced and more predictable out-of-pocket expenses. Also better quality of treatment would ensure that they recover more quickly, and are less likely to have repeat episodes of the same illness. 105

118 ii. iii. iv. Increase the access to existing APHC s through greater awareness and through mobilization by the Health worker Greater awareness would be built among the target villages of the APHC about the exact days in a week and time when the doctor would be available. The SHG and Village organizations would be used as the platforms for building this awareness. There would be a Health worker locally known as Jeevika Saheli appointed in every village. The role of the Jeevika Saheli worker will be discussed at length later. However for this specific component, Jeevika Saheli will use the SHG s which meet once a week and the Village organization which meet once every 15 days to communicate to the SHG s about the facilitates available at the APHC and exact date and days these would be available. One the exact days ( typically 2 or 3 days a week) the Health worker- Jeevika Saheli will work in tandem with the doctor and the ANM attached to the APHC to mobilize the communities to come to the APHC if they need to Increase access to the public health facilities through community managed health centres These community managed health centres would be established in a village with the help of VO with the objective of providing access to health services to villages (nearly 60% of the total villages in a block) that are far off from the block headquarter. These centres would be visited on a pre-determined date every 15 days by a doctors and a nurse. During those days, the centre would have the facility to do some basic medical tests and will also have essential medicines available at the PHC level. The centre will also have some basic provide all the basic community health services at centre. The project has vision make this community dispensary economically viable model through service pay model. The health worker would have a major role in mobilizing the communities from nearby villages and in the management of the centre. Deliver health services at the village level through the Jeevika Sahelis The Jeevika Saheli would be a woman chosen from the community to promote better health seeking behavior among the members of the community. She would be literate (at least passed class 8), willing to work with the community and those having previous background of working on health issues would be preferred. The identification and selection of these health workers would be done by the village organizations themselves. Once selected the Jeevika Saheli would undergo training on the working on health issues with the community. Health Security through Preventive health Care With the support of UNICEF, DFID, CARE and Bill and Melinda Gates Foundation, some initiative on preventive health care such as focus on Immunization, Nutrition, water and sanitation has been piloted in certain specific area of Bihar. Programme has been designed to support the most vulnerable section of the society such as Musahars, people migrated during disasters. In addition to this, Matka Filters have been effectively tried to protect the poor families from water prone disease. These interventions would also be piloted under the mission and subsequently scaled up Community Managed Safe Drinking Water Systems Some NGOs have successfully piloted the concept of community managed safe drinking water systems that have had a significant impact on health outcomes. Such models would be examined further and if possible those experiences be incorporated into the health service delivery. 106

119 5.1.3 Ensuring access to health entitlements Efforts would be put in to facilitate access to government health entitlements like RSBY, JBSY and JBY through the institutions of the poor. As part of this capacity Building of both the community institutions and their cadre about the process of accessing various health entitlements would be taken up Access to Entitlements Background Entitlements like social security pensions, MGNREGS, Public Distribution System can strengthen the household economy in terms of additional incomes, savings on expenditure and increased consumption. Thus ensuring access to these entitlements would be a key part of the vulnerability reduction strategy of NRLM in Bihar. Analysis of the data on the access to entitlements for the poor shows that the situation is far from satisfactory for the 2 leading entitlement programs for the poor namely the social security pensions and MNREGA. The table below gives the status of implementation of the 3 largest social security pension programs in the state: Table: 5.1 Entitlements Name of The Pension Scheme Target Achievement % achievement Laxmi Bai Samajik Surakcha Pension (Widow Pension) 3,72,000 2,36, % Indira Gandhi NOAP 23,11,870 19,93,065 86% Bihar Rajya Nisakta Pension (Person with Disabilities) 1,64,998 65,521 40% Source: Samajik surakcha Suraksha Directorate (March 2009) The data shows that the achievement levels are low across all the 3 schemes, similarly analysis of the data on MGNREGA (Refer section 1.4) shows that access to MGNREGA is extremely low for the poor. On the other hand, strong institutional platforms of the poor like the Self Help Groups (SHGs) and Village Organizations (VOs) are ideally placed to provide an effective platform for ensuring reliable and efficient delivery of entitlements. Thus as part of NRLM implementation in Bihar focused efforts would be put in to build the capacities of these institutions of the poor to enable them to access their rights and entitlements to the maximum extent Experience of BRLPS Over the last 4 years, BRLPS has worked on specific areas of entitlement and built the capacity of the Village Organizations in these areas. The specific entitlements in which significant impact has been achieved are as follows: 107

120 Social Security Pensions (Widow and Old age) As part of this the VO s identify households that are entitled to benefit from the social security pensions provided by the government programs but are currently not able to obtain them. Once these households are identified the VO takes up their case with the relevant line departments and ensures that the households get access to the pensions. The district wise number of households that have been benefited as a result of the social security pension related intervention is shown in the table below Table: 5.2 Social Security Pensions Districts Old Age Widow Total Gaya Nalanda Khagaria Purnia Muzaffarpur Madhubani Total MGNREGA A pilot involving 31 VOs across 3 blocks of Muzaffarpur district (Musahari, Bochaha and Minapur) was initiated last year. The results of the pilot were particularly encouraging. As an outcome of the efforts made by the VOs, nearly 5100 SHG women had increased access to wages under MGNREGA and nearly 2700 of them got all 100 days of work. An amount of 4.27 crores was accessed by these households. PDS 3 Village Organizations in Gaya district have taken over the functioning of the PDS to ensure continuous availability of the subsidized food grains for its members. In all the 3 cases, as a result of the intervention, members are today able to access subsidized food grains every month as opposed once in 3 to 4 months that they had to in the previous Strategies to scale up access to entitlements Given the experience of BRLPS and successful experience of other similar projects following would be the main strategies used to enhance access to entitlements as part of NRLM in Bihar. i. Facilitating access to pensions through building the capacity of Village Organizations Based on the experience gained on the approach by BRLPS, stepwise guidelines on access to pensions would be developed. These guidelines would specify the exact role to be played by the VO in the planning, implementation, monitoring and review of the interventions. These guidelines should also include case studies which highlight successful cases of access to these pensions. Based on the these process guidelines, training modules and training curriculum for the concerned staff at the block level and for the VO subsequently would be developed and rolled out. In addition a standardized process for ensuring coordination with the block level and district level officials responsible for pensions would be developed. Block and district level staff of SRLM would be provided training on the process 108

121 ii. Facilitating access to NREGA by making VOs active stakeholders in NREGA implementation The department of rural development has recognized that the institutions of poor like the Village Organizations are ideally placed to improve access of MGNREGA to the poorest households by supporting planning, implementation and monitoring of works under NREGA. The department has in principle agreed to initiate a pilot on ensuring access to NREGA mostly through works on individual lands targeting SHG households in about 20 blocks and 8 districts of the state in partnership with BRLPS. The objective is to ensure access to wages under NREGA by taking up works on individual lands for more than 1, 00,000 households across 20 blocks and 8 districts of the state. Based on the results and learnings of the pilot such a convergence effort on MGNREGA would be scaled up across the state as part of NRLM Disaster Management Bihar state has been recognised under the category of Multi Disaster Prone territory in the country and host to several natural disasters specially floods drought and fire. Water disasters, including floods and drought, have serious economic implications in the state, both for individual households and state economies. At a micro level, water disaster vulnerability and poverty are interrelated, and poor households are particularly vulnerable to floods. The project envisages to response towards reducing the vulnerability of poor occurring due to the regular flood and drought in the state. The project would equally focus on disaster preparedness and mitigation strategies for the affected community in the region would also extend the project support in reducing the direct and indirect losses including such intangibles as injury, illness, malnutrition, interference with income-earning activities and other opportunities foregone through community based institutional service delivery mechanism Floods It is annual feature and as certain as sunrise. Out of 38 administrative districts specifically 23 districts and all district of north Bihar face floods every year. Year 2008 has not simply surpassed the precious Flood records rather "Hwangho of China" and Tsunami as a whole. Koshi River changing its course targeted five districts together i.e. Araria, Supaul, Madhepura, Saharsa and Purnia has disfigured the geographical shape variously and ravages compelled to recognise as National Calamity. Bihar is leaving no stone returned in bringing back to its original shape. The project envisages the following preparedness and mitigation strategies during pre-flood and post flood period: Flood Preparedness and mitigation awareness program for community. Identification of traditional flood coping mechanism and strengthen it. Flood forecasting and flood warning, backed up by improved communication systems and community awareness programs. Identification of means of evacuating community members and livestock from flood areas. Identification of emergency flood shelters and embankment. Facilitation for ensuring access to flood relief material including food, safe drinking water, medicines and daily requirements from the concerned service providers. Promote construction of flood proofing houses (ODRC) and essential infrastructure in flood prone areas. Establishing coordination with different stake holder working on disaster preparedness and mitigation work. 109

122 Drought It comes as another calamity and next to floods which occurs frequently at short intervals. The drought affected districts are southern Bihar districts and it also includes those districts that host floods simultaneously. There is an urgent need to replace this approach of crisis management with a more pro-active approach of risk management, which emphasizes preparedness, mitigation, prediction and early warning of drought in the state. Effective drought management emphasizes three components: monitoring and early warning, risk and impact assessment and mitigation and response. As vulnerability to drought is increasing globally due to environmental reason, greater attention has been directed to reducing risks associated with its occurrence through the introduction of planning to improve operational capabilities (i.e., climate and water supply monitoring, building institutional capacity) and mitigation measures that are aimed at reducing drought impacts. The project envisages giving attention to preparedness, mitigation, and prediction/early warning actions (i.e., risk management) that could reduce future impacts and lessen. A key point of dealing with droughts is drought preparedness. The project will facilitate to develop drought preparedness planning at the community level. The drought plans includes a. early warning, b. risk and impact assessment and c. Mitigation and response. The project would facilitate to enable agriculture based producer groups to take decision to maximize probability successful crop production and/or minimize the potential damage of crops or other assets. The risk of vulnerability of the poor would be reduced through different institutional capacity building training program. Awareness generation on coping mechanism of the calamity would be developed as preparedness and mitigation strategy Livelihoods Promotion The main objective of the programme is to improve the livelihoods of the poor. There are 4-5 major livelihoods sector, where the SHG members may be engaged to have a sustainable livelihood for their development. The major sectors available in Bihar are Agriculture, Livestock & Dairy, Beekeeping, Fishery & Makhana and Non-Farm sectors. The year wise phasing of the livelihoods interventions is mentioned in the following table; Table: 5.3 Livelihoods Promotion Sectors Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Agriculture Dairy Small Ruminants Bee keeping Fishery Non-Farm- Arts & Crafts Non-Farm- Others

123 Comprehensive Agriculture Intervention The major livelihood sector of the state is agriculture and nearly 81% of the workforce is employed in this sector and it is expected that out of 1.25 crore poor household around 6.5 million household will be engaged in the agriculture sector. The objective of the intervention in agriculture sector is to earn more than Rs per kattha of land. The 6.5 million household will undertake agriculture in 10.4 lakhs hectare of land, which is nearly 10 kattha per household. Most of the households will get an annual income of more than Rs per annum from this sectoral intervention. In this agriculture sector, the intervention will be undertaken to strengthen the weak links of the value chain. All the value chain actors will be played towards a win-win situation to achieve the objective of earning Rs per household. The value chain interventions are as follows; Land The marginal, small & landless farmer belonging to SHG households does have nearly 10 kattha of land. It is envisaged that around 30% of the poor households have land out of 1.25 crore households. The productivity enhancement is a demand pull factor in the informal land leasing market (existing in the villages) to initiate land leasing automatically which is around 50% (as per the JEEViKA experience). These 50% of household includes both 30% of existing marginal & small farmers and 20% of the landless farmers. Mostly, the land leasing is done for 20 Katthas of land, otherwise termed as 1 bigha of land Seed Good quality seed is one of the important agriculture input for maximizing productivity for converting to remunerative agriculture. The marginal, small and landless farmers are not access to good quality seed in the prevailing situation. The requirement of high yielding seed for the poor is different to the seed available in the market. The poor farmers forced to use the seed supplied by the agriculture input market because of the push the demand of a particular seed. Unless, the home stored seed of the previous year is being used by the poor farmers. The seed is produced by the Seed Breeder, without taking the cognizance of the requirement of the poor farmers such as less seed, less duration, less irrigation, less fertilizer, very little pesticide, bolder grain, sweet in taste in order to reduce the unnecessary expenditure in agriculture and maximize productivity. In this regard, the Participatory Varietal Selection and Promotion (PVSP) methodology will be used to select the seed for all the crops required by the poor farmers. Till now, the SHG members promoted under JEEViKA has selected & adopted 8 different varieties of Wheat, Paddy and Green Gram seed through PVSP. Participatory Varietal Selection & Promotion is - a method intended to understand the felt and perceived needs of the farmers for suitable crop varieties and allow them to test, identify, and adopt/spread the suitable farmer preferred varieties from a basket of choices provided to them. Steps followed in PVSP are: Identification of farmers preference: in PVSP an understanding is developed about the qualities or attributes on which farmers prefer a particular variety which is under cultivation in the area for a long time and popular. This variety or varieties are called the local check. There must be some preferred traits (viz. high yield, better taste, short maturity, drought resistance, etc.) because of which the variety is preferred over others. Participatory methodologies are applied to get this information from the farmers/villagers. Search process for varieties: based on this understanding a search process is carried out to identify varieties within the released and pre-released varieties of the Research institutions all over the country, which have attributes matching or closely matching with the farmers preferred traits that were identified at the first stage. This process ends with the procurement of seeds in 111

124 smaller quantities of those varieties which have attributes closer to what farmers are looking for. These varieties are called the introductory varieties. Trial in farmers field: the seeds of these varieties are then tested in the farmers field in a very small quantity alongside their local check in the same field and under same management practices. No additional inputs are recommended for the introductory varieties. Typically in a village 3-4 variety of a crop is tested with at least 4-6 replications for each variety. Simultaneously with one farmer per village all introductory varieties are tested in one field to compare the relative performance of each variety under same inputs and management practices. Evaluation by farmers: during the cropping season and post-harvest the focused group discussions are conducted with the participating and observant farmers to evaluate the performance of the introductory varieties vis-à-vis the popular local check. Through this process the preferred varieties are screened by the farmers themselves. A scientific data base is also developed about the performance of the varieties on parameters commonly used for the varietal performance assessment. Dissemination of preferred varieties: The varieties are identified as preferred through this process, the seeds of which are multiplied locally through proper seed production process and disseminated within the area. The benefits of involving farmers in identifying appropriate varieties are significant in terms of: (i) yield increment up to 30-40% by adopting new varieties against local variety, (ii) reduction in cost of components like fertilizer, irrigation, pesticides, (iii) increasing varietal diversity in the area, and finally (iv) the increased awareness among the farmers, about the newly found varieties empowering them to demand for more such technologies. The PVSP and then followed by multiplication (seed production and spread) of the farmers preferred varieties will be the main engine in enhancing the crop productivity in the area. There is a huge pool of varieties available for rice, pulses and oilseeds in India and therefore identifying few popular varieties through farmers selection and their subsequent adoption will not be very difficult within the time span of 3-4 years Productivity Enhancement Technologies / Methodologies The easy to adopt, poor friendly & less costly productivity enhancement technologies is the preference of the marginal, small & landless farmers to enhance the productivity and maximize their income from the agriculture. The methodologies are System of Rice Intensification (SRI), System of Wheat Intensification (SWI) and System of Crop Intensification (SCI). In SCI, the productivity enhancement is for all the pulses, oilseeds and vegetable crops. Through the productivity enhancement technologies; the poor farmers have improved their productivity in wheat by 2 times (from 2.1 ton / hectare to 4.5 ton / hectare), paddy by 3 times (from 2.2 ton / hectare to 6.5 ton / hectare), Rapeseed by 3 times (from ton / hectare to 3.5 ton / hectare), Green Gram by 3 times (from 2.5 quintals / acre to 7.5 quintals / acre) and vegetable by two times (tested in Brinjal, Tomato, Chilli). Bihar Rural Livelihoods Project has successfully tested these technologies and the Govt. of Bihar has also launched the SRI Kranthi in Paddy & Wheat, which has been planned in 10% of paddy area and 20% of wheat area in the state. System of Rice Intensification (SRI), System of Wheat Intensification (SWI) & System of Crop Intensification (SCI): System of Rice Intensification (SRI): Fr. Henri de Laulanie, S.J, first developed SRI methodology in Madagascar in the 1980s. Systems of rice intensification or SRI is a methodology rather than a technology, in which the management of soil, water, plant and nutrients is altered for 112

125 greater root growth and nurturing microbial diversity resulting in healthier soil and plant conditions. In SRI, practices like seed rate, method of raising of seedlings in nursery, transplantation, control of water in the main field, weeding / hoeing are modified to ensure higher ratios of tillers to mother seedling, increased number of effective tillers per hill, enhanced panicle length and bolder grains, or in short enhanced yield of paddy. In short, the practice of SRI in comparison with the traditional practice may be depicted as below: Table: 5.4 System of Rice Intensification (SRI) Particulars Conventional SRI Seed Treatment Not Done Done with salt solution & fungicide Seed Rate (Kg / Hectare) Nursery Area (Sq ft / Hectare) Age of Seedling for transplantation Spacing No Spacing 25 cm * 25 cm (10 * 10 ) Weeding / Hoeing No Weeding 3 times Yield 2 ton / ha 6 ton / ha System of Wheat Intensification (SWI): SWI involves modifying the practices like seed rate, sowing of seeds at proper spacing, control of water in the main field, weeding / hoeing to ensure higher ratios of tillers to mother seedling, increased number of effective tillers per hill, enhanced panicle length and bolder grains or in short enhanced yield of wheat. Table: 5.5 System of Wheat Intensification (SWI) Particulars Conventional SWI Seed Treatment Not Done Done with Warm water, Cow Urine Jaggery, Vermicompost & fungicide Seed Rate (kg / hectare) Sowing Broadcasting Line Sowing Spacing No Spacing 20 cm * 20 cm (8 * 8 ) Weeding / Hoeing No Weeding 3 times Yield 1-2 ton / ha 4 ton / ha System of Crop Intensification (SCI) in Green Gram & Rapeseed: SCI in green gram and rape seed involves lower seed rate, seed grading and treatment, sowing with wider spacing or transplantation of young age seedlings with wider spacing, organic manuring, intercultural operation & proper weeding leading to enhanced yield. During the successful scaling up of SRI and SWI; the project has piloted the application of similar methodologies in different crops such as Green Gram & Rapeseed with around 500 SHG households. The results were very positive, the yields almost doubled for both the crops. System of Crop Intensification (SCI) in Chilli, Tomato & Brinjal: The seeds are treated with cow urine, warm water, vermi-compost, jaggery, trichoderma and the germinated or wet seeds are sown in nursery at 2 inches at either side of spacing. Organic environment is made in nurseries and seeds are sown at proper spacing. Compost and soils are treated with trichoderma. 113

126 Every care is taken to minimize the shock by taking seedlings attached with soils. Then 8-12 days old young seedlings are uprooted carefully and transplanted in main field. Shallow transplanting is done. One feet deep and 0.5 feet diameter pit is made to provide conducive environment for intensification of roots. The farmers should provide favorable environment for the profuse root growth and shoot growth is outcome of attention on roots. Proper irrigation channels are made to facilitate aeration in roots and 2-3 inter cultural operation is done by using SRI-Rabi weeder. The productivity enhancement is around 40-85%. Community Managed Sustainable Agriculture: Promotion NPM based natural farming which is otherwise called as community managed sustainable agriculture will be demonstrated and scaled up to women farmer households. Community Managed Sustainable Agriculture is an understanding of the soil, soil fertility, ploughing back crop residues, dung and the role of earthworms. It includes focusing on the role of local earthworm & its reactivation in the soil, which is critical for the tropical countries. CMSA does not mean stopping of fertilizer suddenly, the use of fertilizer is gradual reduction and it is coupled with application of tank silt, ploughing back crop residues, mulching, dung based inoculants and the application of azolla in paddy fields, etc. The azolla use will reduce the urea use to 50% in one go. Azolla can totally meet the requirements of nitrogen without any need for external urea application. CMSA considers soil as a living organism and a bank for crop nutrients. The focus is on building soil microbial activity. Every crop removes substantial amount of nutrients, but the formation of the grain only takes 15 percent of those nutrients. The remaining 85 of nutrients are used to growth the entire plant. The consumer uses the grain as main product and straw as a bi-product from the paddy or other crop plants. This is recommended that crop residues should be returned to the soil either directly or through the animal route during the crop period. Promotion of Vermi-compost pit making and its use will also be enhanced to create an organic environment for the plant and it will loosen the soil for better aeration and improved water retention capacity of the soil. The vermi-compost pit will be promoted with around women farmers on an economic basis and the marketable surplus will cater to at least women farmers belonging to SHG households. Around 3 crops per year will be taken up with around women farmers leading to continuous crop cover in the agriculture land will have better water retention capacity. The pulses cultivation through System of Root Intensification methodology will add continuous nitrogen in the soil through root nodules. The major non pesticide management (NPM) ingredients are Neemastram, Brahmastram and Agnastram. etc. will also be used for reducing the expenditure and health hazards caused due to application of pesticides Community Managed Agriculture Extension Mechanism One of the key strategies that has played a big role in the scaling up of the intervention has been the use of the community managed extension system. As part of this the Village Organisations (essentially a federation of 8 to 15 Self Help Groups in a village) identifies and appoints a local youth may be a male / female (called the Village Resource Person ) to carry out the extension work for the intervention. The VRPs are given intensive training that includes on-field demonstration. The training module for VRPs was developed and delivered by PRADAN & ASA, the technical support partner agencies. On-the-job technical guidance to the VRPs is provided by Subject Matter Specialists (SMSs) appointed by the support agencies (PRADAN & ASA) or engaged directly by the BRLPS. Each VRP provides services to 30 to 120 farmers (depending on the ability of the VRP to reach-out and influence farmers). VRPs undertake farm/plot-visits to note the progress of the crop and advise the farmers on the field operations. The Village Organisations review the work done by the VRPs every month as part of their regular meetings. There is a regular weekly VRP meeting organized to review the progress on quality & quantity of the interventions, updatation of agriculture database, 114

127 training need assessment of the VRPs for organizing & imparting refresher training to the VRPs. During the yield assessment, few of the plots have been measured by the respective District Magistrates, District Agriculture Officers, officials of Krishi Vigyan Kendras (KVKs) and district Agriculture Technology Management Agencies in presence of the smallholders and VRPs. In the process, the VRPs are also trained to measure the yield scientifically and after which, the VRPs measure all the plots scientifically in a cross verification mechanism. Cross Verification Mechanism means one VRP will assess the yield of the plots of another VRP and vice-versa. This ensures that the VRPs are monitored rigorously right at the village level thereby avoiding the typical problem of information asymmetry encountered by public sector extension system. VRP Register: The VRP register is integral to the Community Managed Extension System to have farmer wise data on land, sowing date, intercultural operation dates, plot observations and yield assessment. After the scientific yield assessment by the VRP, the yield data is mentioned in the VRP register and certified by the concerned smallholder. A recent study by JEEViKA on the effectiveness of VRPs notes that 92% of the sampled 300 families were satisfied with the VRPs work and appreciate the hand holding support, timeliness of support, regular monitoring and input supply services provided by/through the VRP. The payment structure of the VRP is based on the deliverables (number of farmers practicing SRI/SWI) and is positively biased towards farmers belonging to scheduled castes and scheduled tribes as well as towards farmers cultivating on leased land or share cropping. In 2011, around 2100 VRPs have been identified by the VOs in 1394 villages and trained by technical experts hired by the BRLP. The year wise VRPs supporting SRI-SWI are as follows; Table: 5.6 Agriculture Extension Mechanisms Year Nos. of Villages Nos. of smallholders Village Resource Persons (VRPs) Information Technology will be used for improving the agriculture extension system and mobile based sms (short message service) will be inducted to improve the information / knowledge base of the marginal, small and landless farmers on the intercultural operations of low cost, new and farmer friendly agriculture methodology. This service will also provide through the Village Resource Persons hired by the Village Organizations. The Skilled Extension Worker (SEW) will also be hired by the Cluster Level Federation (CLF) and will support and monitor the Village Resource Persons in the long run. The best VRPs of a cluster will be identified through the quality and quantity achievement and will be trained further to manage Village Resource Persons. The SEW will be paid initially by the Block Project Implementation Unit till the emergence of Cluster Level Federation. 115

128 Agriculture Credit The Productivity Enhancement Fund (PEF) will be available as per the microplan available for the poorest of the poor SHG households. Mostly, micro-planning at SHG level has been exercised as a mechanism to generate demand for all the agriculture intervention and to standardize the package of inputs used by the farmers. A package of inputs are provided to all SHG members desirous of adopting comprehensive agriculture intervention. These inputs include quality seed, vermi-compost, fertilizers, etc., which are collectively procured by the Village Organisations with facilitation by the VRP. This input package is costed and the SHG members repay this amount to the VO after the crop season (members not requiring a loan can pay the amount upfront to the VO individual procurement is not permitted). This micro-planning will be done annually and as the new SHG members reaches the appropriate triggers, the farmers of those groups will be added as required. Apart from the PEF, the Kisan Credit Card will be made available for nearly 4 million marginal & small farmers Irrigation Support Community Managed Irrigation System will be promoted by provisioning the diesel pump in the districts, where water table is lower and deep boring in the districts, where water table is higher. One diesel pump will be provided per 25 farmers and one boring will be installed per farmers in the dry or rainfed areas depend on feasibility. The different schemes of the department of agriculture, Govt. of Bihar will also be explored to avail the loan cum grant scheme by the respective Village Organizations for installing the bore wells Access to Market The district level Women Farmers Producers Companies (WFPCs) will be promoted and strengthened to provide input and appropriate extension services. The WFPCs will produce certified quality seed, vermin-compost and different ingredients of non-pesticide management & natural farming and quality agriculture equipment for drudgery reduction of women farmers for the usage by the marginal, small & landless farmers. The Commodity Procurement Centres (CPCs) will also be promoted and strengthened at the level of Village Organizations to procure the marketable surplus and cater to the food security of the resource poor households and the rest will be sold to PDS or major commodity buyers. Convergence is envisaged with different schemes of agriculture department, animal husbandry, civil supplies, irrigation, etc Vermin compost Vermi-compost is one of the important organic farming, by which one SHG household may earn Rs per annum by installing 7 pits after application of vermin-compost in her own agriculture land. In this regard around all the 6.5 million household will install the vermin-compost pit in their backyard of the house or as per convenience. The respective Village Organization will also ensure the buy- back arrangement for marketing in the internal and external market Integrated Farming The integrated farming will be promoted among the marginal, small and landless farmers, in which the existing 7 layers 36X36 models, continuous cropping in the agriculture land, 7-8 crops in a year, organic ingredient application will be practiced. The main objective of this methodology is to cover the agriculture land with the crops throughout the year in order to reduce the loss of micro-nutrients from the land & soil. The average cropping intensity in Bihar is By this method, the cropping intensity of the poor will be increased to 3-4, which will lead to increased productivity, increased income and increased land leasing. 116

129 Community Managed MIS The Management Information System run by the community will be the core of the agriculture intervention in order to achieve quantity and quality of the programme. The mobile based technology will be used for data uploading in the web based MIS system. The VRP register will also be part of the manual MIS Weather & Crop Insurance System Weather and Crop insurance schemes will be explored and appropriate schemes will be used for the marginal, small and landless farmers. The insurance products will be managed by the higher level federation at the Cluster Level Federation initially and later will be managed by the Block and District Level Federation. The crop loss due to drought, flood and extreme climatic situations in a particular area will be covered under this insurance product so that the farmers will not suffer and grow within the agriculture sector to convert the agriculture remunerative and will have increased additional income Convergence with Govt. Schemes Selected schemes National Food Security Mission, National Horticulture Mission, National Bamboo Mission, Rashtriya Vikash Yojana, ISOPOM, Jute Mission, Micro Irrigation, Macromode, Tal diara, Mahadalit Mission, etc. relevant for marginal, small and landless farmers will be accessed for bringing more investment Dairy A number of interventions along the dairy value chain are being envisaged as part of the livelihoods promotion strategies. The details of the interventions are provided below Formation of DCS It is envisaged that SHG members, who have milch cattle or have prior experience of milch cattle rearing or interested to take up dairy as a livelihoods activities will be organized in to Dairy Cooperative Societies across and linking to the existing Dairy Cooperative Societies Animal Health & Nutrition Health of milch cattle is of paramount importance for improving the productivity of animals besides protecting them from diseases of economic significance by giving prophylactic inoculations. Mass vaccination programmes will be arranged through the existing milk unions of the COMFED against diseases like Foot and Mouth disease (FMD), Hemorrhagic Septicemia (HS) and Black Quarter (BQ). Seventy five percent cost of production of milk depends on the cost of feeding the animals. Green fodder is important in animal nutrition. Besides providing important nutrients, it reduces the intake of balanced cattle feed. Fodder cultivation will also be emphasized by training & exposure programme, provisioning of fodder seed and facilitating the Village Organizations and individuals to take contract or individual farming in the waste lands or tal area to produce Hybrid Napier, Para grass, Cow Pea, Maize, Oats, etc. The training and exposure programme will also be organized for the Milk Producers to adopt the new technology on treatment of straw or dry fodder with urea to improve the palatability and nutritional value of the fodder Artificial Insemination Breeding input such as Artificial Insemination (AI) is the critical input for the milk producers for breed improvement and increased milk productivity. Artificial Insemination Centres will be established in every 5 Dairy Cooperative Societies. Nearly 7500 Artificial Insemination (AI) centres will be established and around AI workers will be trained and deployed for providing regular AI 117

130 services through service charge model to the milk producers belonging to the poor households in the fold of Self Help Groups. Best quality germplasm of genetically evaluated pedigree bulls will be collected from Uttar Pradesh, Haryana, Gujarat and many other places to perform this activity. Training and exposure programme will be organized for the AI workers to conduct succeed the programme. Expert agencies such as COMFED, BAIF, J K Trust Foundation and etc. will also be approached for delivery of better AI services to the milk producers. Artificial Insemination is popular in cows and effort will be made to induct in buffaloes as well Infrastructure Development Programme Bulk Milk Chilling Unit will be installed, where the Bihar State Cooperative Milk Federation (COMFED) doesn t have access. Public Private Partnership will also be sought for assured milk procurement. The Private dairies like Reliance, Ganga, Paras, etc. may also be approached for productive partnership for the backward and forward linkage. The milch animal insurance products will also be designed and make available for the milk producers to reduce the shocks on death and less productivity. The automated milk collection centre will also be installed to improve the milk procurement system, less fat testing time and ensure spot payment to the milk producers Community Managed Dairy Extension System The Dairy Resource Person will be identified among the SHG members or the members of the SHG households and trained to look after the Dairy Cooperative Society on regular & timely payment to the milk producers, regular fat testing and quality of services required & provided by the Dairy Cooperative Societies. The nutrition availability and access by the milk producers for better milk productivity will also be set as output of the Dairy Resource Person. The Dairy Resource Persons will be paid by the Village Organizations. The DCS secretary will be report to the VO and also update the progress of the Dairy Cooperative Society (DCS) in the VO meeting. The Village Organization (VO) will also provide bridge finance to the Dairy Cooperative Societies (DCS) as per the requirement and the DCS will return the bridge financing amount to the VO, when the DCS has enough income to regularize the payment in case of late payment due to several reasons by the Milk Unions of the COMFED Convergence with different Programmes The centrally and state owned schemes like Establishment of Mini Dairy, Cattle Breeding units, Dairy Cooperative Societies, Green Fodder, Adarsh Dairy Gram, AI centres, Electronic Milko Tester will be availed from the Department of Animal Husbandry and Fisheries, Govt. of India. The programmes of the Mahadalit Mission will also be accessed for procurement of quality breed milch cattle for the Mahadalit households belonging to the SHGs. It is expected that around Rs per annum will be income of the Milk Producers and on the seventh year the average annual income of the SHG members will be 525 crore (in case all have at least 2 milch cattle and produces milk for 7 months). The average daily milk procurement will be crore litres of milk per day Small Ruminants (Goat Rearing & Poultry) Goat Rearing This activity is largely women managed, reduction of drudgery and enhancement of income has inherent capacity of empowering these poor women for mainstreaming. 118

131 Cluster level goat breeding farm Identification of 50 rural poor youth in a district and intensively train them in batches on improved goat rearing farm management, otherwise termed as Goat Rearing Resource Person. Hand holding support will be provided to establish the training cum cluster based goat production farm by them. 25 most promising and strategically selected trainee will be linked with government programs for establishing training cum goat production center in the SHG cluster. This will lead to establishment of training cum demonstration center in the district at a strategically selected location to provide training and linkages to rural poor women goat rearers already organized in SHGs. The in situ demonstration of improved quality goat rearing and hands on practical training opportunity will be utilized as a confidence building and motivational measures to convince goat rearer to adopt systematisation in the business. An extensive exposure visit of goat rearer s group promoted in the district under various government programs along with individual progressive rearer will be arranged to expose target rearer s to an advanced system of goat rearing. The promoted trained Goat rearing Resource Person in goat sector will also act as business development service provider in respective cluster. These cluster level goat rearing farm will also provide the first aid, vaccination and nutrition related services to the goat rearers. Institutional Arrangement Goat rearers from adjoining 5 to 10 villages within a periphery of 1 to 5 km from each such promoted training cum production center will form set of practitioners to be motivated to form goat rearer s association to access improved quality buck for breeding and collective input and output market. Once association formed and working for over a year on collective breeding and input procurement, motivation to develop private wasteland land and homestead land through planting fodder tress like neem, ber, and ardu neem will be promoted on priority basis. Developing privately owned barren and agricultural land with mixed plantation will form part of promotion of fodder tree/crop growing in the district. Situation based model of such plantation and fodder crop growing will be developed in consultation with district horticulture department. All the associations will be later federated into District level Producers Company. The major role of association will be collective input procurement and collective marketing of output. The GRPC will promote collective input procurement and output marketing by these associations & develop grazing land by association on selected sites. The Producers Company will establish innovative mechanism to channelise credit from financial institutions to goat rearer s association. Credit channelisation The associations have to channelise credit in tune Rs 1.5 crore from the mainstream banks and financial agencies. To access credit three form of linkages development will be undertaken i. Accessing credit as self Help groups (SHGs): Substantial credit is bound to flow to the goat rearer s group. The project will target to hasten such credit disbursement process and will link such potential groups/individuals with proposed project on priority basis. ii. Accessing individual finances to youth to take up goat rearing as an enterprise on larger scale: NABARD has been one of leading agricultural refinance agency has already launched a scheme to provide a loan up to Rs 25 lakh to individual goat rearing firm on reduced interest rates. PMRY has also adopted SHG approach loaning and can be a conduit for credit facilitation to successful individuals and groups for goat rearing. Selected youth with propensity to successfully manage business on such a scale will proactively linked to the scheme. It is expected that with successful experience and example setting other commercial banks in the district will come forward to lend willing candidates. 119

132 iii. Revolving fund for poorest families: It has all probability that certain segment of poorest set of families might not get access to mainstream financial institutions and schemes looking in to the complexities of prevailing system. More importantly bank loan most often fails to extend working capital to poorer set of families, where absence of working capital affects poor people led business. The project aims to build a concept of revolving fund of Rs lakh for such segment of society, who are the prime target. As per conceived model, such families will be loaned 3 quality goats (newly kidded or pregnant) under the project. The precondition of loaning will be get first hand training at the training center. The family will be provided monthly concentrate (grain) to feed as supplementary nutrition for a period of six months or kidding of goats which ever earlier. By the end of a year, loaned family will have to return two grown up kids (over 6 months) to the other family selected by the project for such a loaning. By second year end the loanee will return one more goat (Above one year, pregnant or recently kidded) to the other qualifying family selected by the project. The Goat rearers company will take monitoring and support role for revolving fund benefited families and will manage same. This goat rearing intervention will provide Rs to Rs per annum to the cluster based goat rearing farm cum training centre by providing services. The goat rearing resource person may also get a sustainable income from this farm. The incremental annual income of the individual goat rearers will be around Rs The social benefits from this programme will be manure from the goat dung and also the goat milk can also be consumed by the child and mother of the same family to reduce the malnutrition. In this way around Rs crore will be generated as additional income in 2 years Poultry The poultry rearing activity is one of the commonly found livelihood activity among the poor households in the villages. The traditional poultry rearing activity has been converted to broiler farm owned by rich and progressive individuals existing in the semi urban locations of the blocks / districts. There are two models available for poultry rearing in the developing countries. These are Nutrition model and Livelihoods model. In the nutrition model, the households can rear poultry with a range of chicks and grow the business as per the feasibility of individual. The mortality rate is very high because of disease, hunting by dogs-harmful animals & theft. This is very difficult to calculate the income from this model as the villagers sale chicken as per the monetary requirement of the household. The household consumption as well as treating guests of the family is met out from the existing poultry. There is neither regularity nor system installed at the household level for maintaining selling date or calculation of income. The newly developed broiler farm can also be an innovative model to rear 300 to 500 chicks per household on a commercial basis. Under this intervention nearly SHG members will also be engaged. Around 50% of the SHG households will be engaged in nutrition model and rest 50% of the SHG households will be engaged in the broiler farm model. The broiler farm model will be promoted depending on the availability of electricity in the villages. The mortality rate is very high during the winter season in Bihar because of lack of electricity in the villages. The individual broiler farm model can be formed as a Poultry Cooperative and will be Community driven development model. The interested SHG members may be inducted in the activity; organizing them into collectives like cooperative and creating system and processes to attain industrycompetitive production and scale efficiencies. The activity is organised to withstand challenges from big farms and leverage the opportunities offered by the industry by reducing the disadvantages and accentuating the advantages of small and decentralised units on three fronts: production 120

133 organisation, input-output markets and financial systems. Women from poor households are organized into cooperatives with each women rear broilers in rearing sheds built on their homesteads. A mature cooperative typically has members with SHG members in one village. For each village, a community-based resource persons otherwise termed as Poultry Resource Persons (PRP) provides round-the-clock production management and farm-support. A professional manager trained in veterinary or management sciences is engaged by the cooperative as its Chief Executive Officer (CEO) responsible for day-to-day management and operational business decisions. Poultry Management System based on Quality Assurance Systems approach provides a detailed systems and procedures for business decisions and helps in compliance and monitoring, this is supported by a customised accounts & MIS software. The techno-economics of a home-scale farm is mentioned below with a flock size of 500 : Capital Investment is Rs , Working Capital is Rs , Income per batch Rs and Annual Income is Rs , total bacth is 6, Duration of a batch is 35, Feed conversion ratio is 1.65, Mortality rate is 5%, Average flock weight is 1.5 Kg. In this way, SHG households will get an income of nearly Rs crore per annum. The rest SHG households will engage in nutrition model. Leveraging Departmental Initiatives The department of Animal Husbandry has identified specific cluster for the promotion of poultry and goatry in the state. The department has come up with new breeds, extension and marketing support in these clusters. The initiatives would be leveraged upon to scale up the goatry and poultry promotion in the identified clusters Beekeeping Beekeeping is a tertiary livelihoods sector and part time activities to have less incremental income in the beginning and which will become the main livelihoods activities, if undertaken with sincerity and scale. This activity will be promoted among the poor and landless SHG members to earn sustainable income for managing their household. Honey provides both income, nutrition because of its medicinal value and also improve agriculture productivity because of increased pollination by honey bees. Beekeeping as an enterprise requires a lot of effort in many tasks such as Beehive procurement, establishment as an enterprise. As a sectoral intervention, many important aspects needed attention, while entering and scaling up this intervention among the poor are Institutional Arrangement, Migration of Beehives, Division of Bee colony and Marketing of honey is mentioned further; Institutional Arrangement Beekeeping co-operatives of participating beekeepers, one in each cluster will be developed to provide an institutional status to beekeepers. These co-operatives will be registered under the appropriate Act (may be under Bihar Self Supporting Cooperative Act 1996) and their capacities will be developed to enable these institutions to work effectively for the member beekeepers. It is envisaged that the efforts to promote these co-operatives will be done after establishing 150 beekeeping enterprises in a cluster. The registration certificate of the cooperative is generally beneficial for interstate border crossing during transferring beehives from one state to another for practicing migratory apiculture. 121

134 Migration of Beehives Migration is an important element of beekeeping activity in the region. There are several locations where beekeepers migrate with their beehives to extract honey of other types of honey during different seasons. The places where beekeepers migrate their beehives include several districts in Bihar, states of Jharkhand, UP, MP, Rajasthan among others. While it is expected that the new beekeepers will not migrate their beehives to other far off states but they should be able to migrate to different districts in Bihar and also in Jharkhand during the initial years of the operation. Adequate technical support will be provided to beekeepers interested in migration. This programme will encourage all the entrepreneurs to adopt the practices of migration of beehives to other locations to extract honey from different seasons, thereby generating more incomes from beekeeping enterprises. The potential districts in Bihar for migrating beehives will be identified. A detailed framework / guidelines will be developed and training will be imparted to the Village Organizations / Beekeeper cooperative as appropriate for the purpose of migration of beehives to other locations. The guidelines will be prepared by taking the feedback from the Village Organization and the practicing beekeeper. Because of the incorporation of the feedback from the beekeeper, the migration will be more motivating and enjoyable for the beekeepers. The migration of beehives should be undertaken on a group basis and some of the participating beekeepers & Beekeeping Resource Persons (BRPs) should always be at the site of migration for supervision of beehives in rotation basis so that all the members learn the dynamics of migration on one hand and not to overload a few members with prolonged stay at the migration sites. The VRPs will also be at the site of migration throughout the migration duration Division of colonies and expansion of beekeeping enterprises This is an important element in the beekeeping activity. After litchi honey extraction, the bee colonies in a box are divided after a month or so into two boxes and queen bees and male bee are generated either through natural process or introduced from outside to increase the population of bees in both the boxes. Quite often queen bees are developed in the colonies on its own as a result of natural process, however in certain conditions queen bee in a colony is introduced from outside to complete the bee family. Training will be imparted to the VRPs to help the beekeepers in the division of colonies and expanding enterprises. Quite often, beekeepers also sell the bee families to others instead of expanding the size of their own enterprises. This is also a remunerative activity to sell bee colonies / families to others. In this beekeeping programme it will be encouraged the beekeepers to expand the numbers their bee colonies to extract more honey. After some time, they could sell colonies to others to generate incomes through this way Marketing of Honey At the time of extraction of honey, training & exposure programme will be organized to provide all the required support to beekeepers to enable them to extract ripe and quality honey. There is a tendency by some of the beekeepers in the sub-sector to mix sugar syrup in extracted honey to make quick money. The beekeepers will be trained not to indulge in such adulteration. They will also be advised to store honey in appropriate manner so that the quality of honey does not deteriorate with the passage of time. During the first cycle of honey production, intensive support will be provided by the experts and the Beekeeping Resource Persons (BRPs) to the enterprises so that they learn the production and extraction of honey in a professional manner. Marketing links will be provided to all the beekeepers who have produce honey to enable them to sell honey and other byproducts at remunerative prices. If some of the members want to keep honey for some time to reap the benefits of increased prices at a later stage, they will be encouraged to do so with proper storage of raw honey. Forward linkage will also be arranged for the beekeepers through their cooperatives by collaborating with Dabur, Kezriwal, Kashmiri honey, etc. 122

135 By this intervention, the SHG members additional income will be Rs crore (Rs per SHG household with beehives for seasons in two years). The subsidy support will also be leveraged from the National Horticulture Mission to motivate the SHG members to undertake this intervention Fishery Fishery is one of the important livelihoods sub-sector for improving livelihoods of the fishing community. The inadequate fishing community friendly policy framework has forced the fishing community of the poor households are working as labourer in the fishing pond. There is a need for the intervention in the fishery sub-sector in order to strengthen the fishery sub-sector in general and improve the livelihoods of the fishermen community in specific by rectifying aforesaid impediments. The approach and strategy is to manage, conserve, enhance and develop fishery and its resource in the interest of the economy and general well-being of the state and its people with a goal of sustainable growth better economic return, livelihood, nutritional and social benefits of our society with special attention to fishing communities Access to water bodies In the present scenario, the cooperatives formed under Cooperative Act 1935 and fisherwomen SHGs can only be able to lease pond for fishery. Somehow, the earlier cooperative formed under Cooperative Act 1935, fishing community belonging to poor households not part of the cooperative. Effort need to be given for making the fishing belonging to poor households in the fold of existing cooperative formed under Cooperative Act Then credit can also be given to these members to take pond lease to practice culture fishery. The programme will mobilize a critical mass of fisherwomen in order to form their own cooperative in Bihar Self Supporting Cooperative Act 1996 and policy framework may be supported this newly formed cooperative for accessing water bodies through long term pond leasing Fishery Extension System The best practicing fisher women / men will be identified and trained as Fishery Resource Person, who in turn support and handhold the fisherwomen to undertake three layer culture fisheries by taking pond lease on a long term basis. The pond cleaning, extraction of enemy fish and fingerling pouring in appropriate nos. into the fishing pond will be trained to the fisherwomen. The proper feeding schedule needs to be recommended to the fisherwomen in the following manner, so that the fisherwomen will get maximum productivity thereby increasing income. 123

136 Table: 5.7 Fishery Extension System (3 Layered Culture Fishery in 1 Acre pond) (Rohu = 2400, Catle = 1800, Mrigal = 1800) in Kg Month June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Total Manuring Initial Dose Bleaching Powder CaCO Cow-dung SSP Urea Total Feed Rice Bran 49% M O Cake 49% Agrimin 2% Total Feeding Per Day The fisherwomen will get at least Rs per annum from one acre of pond and in this way, the fisherwomen will get Rs crore per annum by leasing pond of 1 acre and practice three layer culture fishery Partnership The public private partnership will be promoted by exploring the best possible sectoral expert agency available and seeding the new technology, model, information technology, etc. to seeding the best practices of the above mentioned sectors and develop the Livelihood Resource Persons (LRPs) of the sectors in the concerned cluster or block. These LRPs of different sectors and clusters / blocks, will replicate the model for expansion. The same expert agency or eligible sectoral expert agency will be placed in several districts / regions of the state as per the requirement of the community to seed the models and technolgies. Mulitple expert agencies of one sector may also be placed in different districts / regions to implement uniform model across the state. However, the scaling up will be implemented through Community Managed Extension Mechanism driven by the appropriate community institutions. 124

137 On-Farm / NTFPs Nonfarm related activities that would be promoted as part of the NRLM in the state would fall under two major categories: Individual activities: These include activities taken up at the individual level by community members and include diverse business activities such as bangle trade, fruit and vegetable vending, garment stitching, small shops etc Cluster Level Activities: These include activities that could be taken up at a collective level for value addition, procurement and marketing. Specifically, activities such as madhubani paintings, weaving, lac bangle making, carpet weaving, incense stick production etc Individual activities For the individual activities efforts would be put in place to provide the specific following services to help such individual activities to grow successfully. These would include: i. Collectivization and business development services: Trade-wise collectivization is critical to design a focused strategy such as for imparting targeted services and policy interventions. Amongst others, these include, providing Business Development Services, capacity building programs, value-addition services etc. At the policy level, these could include providing a designated market place for the vendors. ii. Non-farm livelihood for Disaster Affected and landless: Blocks that are repeatedly affected by disasters or where there is high landlessness, the project needs to develop focused strategies for promoting and scaling up non-farm livelihoods. The block teams need to identify such areas. iii. Financing Window: The individual livelihood activities would be financed through the usual SHG route Cluster Level activities As part of this approach the efforts would be to identify specific skill based artisan clusters and organizes them into producer collectives. These producer collectives would then be linked with technical agencies which equip them with skills that are in tune with the modern contemporary designs and provide marketing assurance. It also invests on building the management capacities of these collectives to enable them to develop business plans and have requisite quality control mechanism in place. Over the last few years, BRLPS has identified 4 such major clusters Madhubani paintings (Madhubani), Sikki (Madhubani), Sujani (Muzaffarpur), Weaving (Nalanda). Linkage with a technical agency namely the Asian heritage Foundation has been established for each of these 4 clusters. As part of NRLM implementation the number of households under each of these clusters would be expanded and more such clusters would be identified and linkages established with the technical agencies to address issues across the entire value chain Employment Building Skills for the Job Market Outside A significant change in inequality in income and wealth is possible only in a longer term perspective. Employment structure of an economy is the normal instrument that can cause a change in inequality either way, i.e. an increase or a decrease in the inequality. Other economic instruments such as target group policies and programmes have a short term impact, but the redistribution through employment is sustainable. Income of labour enables flow of resources across income classes of 125

138 people and across the social and ethnic groups. However, income generated by employment of migrant labour, facilitates flow of resources across regions for a given regional distribution of capital assets. In this view, it is important to harness the potential of present labour force in benefit of the society Current Employment and Unemployment Situation The objective of inclusive growth in the Eleventh Plan will require that sufficient number of jobs is created both in the rural and urban areas to absorb the number of new entrants in the work force. An analysis of the NSSO data on employment unemployment has revealed that unemployment rate in Bihar had increased from 6.34 percent in to 7.32 percent in In absolute terms the number of unemployed stood at million. Among the employed, the proportion of poor is as high as in the population at large, suggesting a large proportion of workers engaged in subsistence employment. Further, only about 8 % of the total employment is in organized sector. More than 90 % are engaged in i nformal sector activities, which is, largely outside the reach of any social security benefits and also suffers from many handicaps in form of limited access to institutional facilities and other support facilities. This again aggravates the problem as educational and skill profile of the existing workforce is very poor which limit their bargain power for availing better negotiation. The increase in the unemployment rate has been due to the fact that working age population grew faster than total population and labour force participation. The Planning Commission has estimated that in the 11 th Plan, there is a need to generate new job opportunity of 5 million so as to cover the gap created due to new entrants Mandate of the Project Creating one job per poor household, in formal sectors, brings the whole family out of poverty in a short period of time. It brings in stable and higher levels of income. The project will attempt to bridge the skill gap and entry level barriers for the rural poor youth and facilitate their entry into relatively high wage employment in the growing sectors of economy. It would offer complete jobs solution - identifying the unemployed, skilling and re-skilling them, placing them in jobs, providing post placement support, counseling and mentorship, and leveraging an alumni network. The National Rural Livelihoods Mission, a GoI supported programme with its key principle of building skills of rural youth for the job market outside. The project will offer skill development trainings after counseling and matching the aptitude of candidates with the job requirements, and placed in jobs that are remunerative. Self-employed and entrepreneurial oriented poor would be provided skills and financial linkages and nurtured to establish and grow with micro-enterprises for products and services in demand Significance of Jobs Component in the Project Jobs opportunities are an important means for poverty reduction, not only for youth themselves, but also for their families. Enhancing employment opportunities and required skills for rural youth is not only restricted to facilitating access to means for better livelihoods as well as enhancing income of the poor 126

139 through sustainable livelihood Institutional Arrangement At the State level, the entire jobs segment will be led by the jobs unit of the SRLM. A full time State Project Manager supported by a Project Manager will be deputed and assigned responsibility to design, implement and coordinate jobs related events Employment Generation Mission The project will establish an employment generation mission positioned at the state level which will be a dedicated structure dealing with employment generation activities in the project. It is imperative at this stage as with a spurt of NRLM, there is a mandate of providing gainful employment to 5 lakh rural youth in an organised sector and another 5 lakh get indirect employment through the project in a span of 10 years. The prime objective of this mission will be providing Better quality of life through gainful employment. The objectives of the Employment Generation Mission will be- To develop a vision and strategy for employment generation and to prepare a time bound action plan for implementation of the same. To suggest measures to derive synergy of the plans and programmes of various departments working directly or indirectly for employment generation. To advise on institutional and organizational mechanism for effective implementation of the action plan for employment generation. To regularly monitor and oversee employment generation action plans in the State and advice on the future steps to be taken. To initiate public debate on important policy issues related to employment generation and build consensus for policy reforms related to it. To advise on Human Resource Development through institution building and suggest a frame work for optimum utilization of the infrastructure available for training on a continuous basis and identify fresh requirements of infrastructure and the resources for training. To facilitate manpower planning in key sectors of the economy. To identify and advise on the regulatory aspects of training. At the District level, the entire jobs segment will be led by Manager- Jobs and will be assigned responsibility to assess the gaps and needs, implement and coordinate capacity building events for various stakeholders, both at the district and block level. They will be given support from the training and capacity building cell in organising trainings and capacity building events related to jobs specific events. Block unit will have specialist livelihoods Area Coordinator who will be responsible for all necessary arrangement for capacity building programmes and community mobilisation drive at the block level. There will be a provision of One Job Resource Person 4 (JRP) in each cluster who will work through the VO in identifying as well as counseling the unemployed rural youth and their parents. 4 JRP would be a person who will identify rural youth who is financially weak and has the will to work. They will act like a link between the project and the community and help the getting success in the project. 127

140 5.3.6 Implementation Strategy The project will follow a multi-ladder implementation strategy working at both the backward and forward linkages which will ensure in generation of sustain employment opportunities for rural youth. Stage1: Stage2: Stage3: Stage4: Stage5: The processes involved in program implementation begin with collecting the data of unemployed youth which goes into a database. Identification of Unemployed youth is done systematically by a household survey done by team of trained community members. There will a capture of youth educational qualification, skill sets and aspirations. Market scan will be done through service provider agencies. It is done to understand the market scenario and to identify employment opportunities available. There will be a provision of inviting companies to login online and place their requirement. On the basis of market scan the sectors and courses with high employment potential are identified. The youth from the database will be identified after mapping their aspirations and qualification with the eligibility set by industry. This will be followed by counselling and admission of youth in different mode of trainings. The youth admitted will undergo trainings which are of 1-3 months. At the end of training, companies come for campus recruitment. Youth placed in jobs will be offered sensitive support like counselling, support money, hostels identification in cities to prevent dropouts. The post placement activities like building an alumni base, enrolling into open education and others similar activities will be established so that candidates never feel detached from their home Approach adopted in Jobs Programme The project will work through two broad approaches which will work in coordination with public and private companies of repute in job placements. They are Direct placement in to the companies In this approach, there will be partner agencies that have mutual understanding with BRLPS and will recruit candidates for their industry requirement. The companies have their own norms and condition under that they select the candidates for their own requirements. The project will facilitate the community members and candidates in particular and acknowledge them about the job offered by the companies. A joint mobilization cum screening drive will be given emphasis where company official also participate for identifying the candidates and placing them in their companies. Some of Partner agencies are Vardhman Rayons, Group 4 Securicor, Aster Training Academy, Larson & Toubro, Construction Industry Development Council (CIDC), SIS etc Building Skills in Candidates through Training and Skill Building In rural scenario, there are number of unemployed youth who are having aspirations with no or less skill set. On the other hand there are several companies who require trained person for entry level jobs. In this setup, partnership will be done with reputed companies who will train them and provide rural candidates a placement in emerging trades like information technology, retail, insurance, back office management, call centre, data entry/ computer operators, front office management etc. The stress will be given in creating an enabling environment for the candidates, with more emphasis on female candidates, so that entrepreneurial skills can be developed in candidates. 128

141 Finishing School In this initiative, after a completion of trainings from service provider agencies, youth will be sending for exposure visit and final placements. They will be given life skill training, coping mechanism in city environment and other soft skills so that they can equip themselves for new assignment with companies. They will also be given training in cash management and work readiness so that they can better cope with the recruiting agency environment Partnership with NSDC, National Skill Development Council Partnership with NSDC will be initiated for building of training/ skill development institutes in PPP model. This will provide an edge to the rural candidates as they can be given state of art trainings and hence help them in getting good placement. The proposed EGM will be instrumental in the set-up of training centres across the state and most of the training centres are setup in under-utilized and unutilized Government buildings in order to optimize the available resources Partnership with Bihar Knowledge Centre The Bihar Knowledge Centre will be a Key interface between Students and the Industry thereby creating job opportunities for talent for Bihar. The BKC shall provide training which will range from highly technical courses to end-user training BKC will establish an inclusive, comprehensive and nationally consistent process for identification of industry needs and address these via training, appropriate funding and resource mechanism, establish a process for a systematic and responsive integration of research and development outcomes into training packages and courses Counselling-Cum-Call Centre This Centre works to improve the beneficiary s retention in training and on the job by providing information and counselling at all stages of the program. Operational on all days of the week, the Centre issues regular / SMS alerts to all concern staffs/ counsellors for monitoring and solving grievances. The Centre helps them find livelihood / job opportunities and provides information on skill development programs, job selection criteria, counselling and post placement support. The centre will have a dedicated space on web portal and toll free number so that candidates as well as employers can reach centre when they need their services. An interactive mode of communication is also established via Skype for interaction with candidates and parents, employer and the project so that all the stakeholders can be in connect mode Migration Resource Cell This cell will provide a technical support in designing and implementing of migration services to the migrants going within or outside state. This cell will have representative from agencies/ NGOs working on migration issues and joint campaigns will be organised. Operational Strategy This segment will deal in different strategies that will be needed in streamlining the employment generation, when the project is going for scaling up the jobs component. i. Exposure Visits/ Tours: Various sites within the country will be identified and the appropriate notes, discussion points and learning will be documented and shared across. Staffs and Job Resource Person will be immersed in these areas so that they can learn the best practices from all over the country and build the project learning. 129

142 ii. Partnership/ MoU with the Directorate of Employment & Training, in Ministry of Labour, Employment & Training, which is the apex organisation for development and co-ordination at State Level for the Programmes relating to vocational training including Women's Vocational Training. The rural candidates will then be enrolled in their two of the training programmes Apprenticeship Training Programme: Apprenticeship Training Scheme is a combination of Institutional and On-job Training in which the Trainees are exposed to industrial environment. This will result in development of skilled worker. Craftsmen Training Programme: This is for imparting skills in various vocational trades to meet the skilled manpower requirements for technology and industrial growth of the country. The core objective of this programme is to- a) To ensure a steady flow of skilled workers in different trades for the Industry. b) To reduce unemployment among the educated youth by equipping them for suitable industrial employment. Employment Exchange: This will provide information relating to higher, technical and professional courses to all job seekers to improve their employability and enrichment of their skill through the Vocational Guidance Programme. This will be beneficial for our rural job seekers. In the fast changing job market scenario and ever increasing opportunities relating to economic development, there is wide scope for providing information relating to wageemployment as well as self-employment to job seekers and providing them job assistance. iii. Networking with Alumni: An Alumni Network will be introduced in which, the youth placed by EGM and HR managers of recruiting organizations will be invited to share their views. They will discuss issues related to their work, placements in different sectors, facilities provided by companies, as well as the advantages of having an Alumni Network. Youth Resource Centre: Youth Resource Centre will be set up initially at the district location, preferably in the Training and Learning Centres (TLC) with an objective of meeting various requirements of the unemployed youth. It has a career counselling centre, Facilitation centre, Knowledge centre, Library and Alumni Cell. Unemployed youth can get information as to the various career options and training courses available to him. He can continuously upgrade his knowledge by visiting the library which contains various publications. He can seek information regarding the boarding and lodging facilities closest to his work place from the facilitation centre. The Alumni cell brings together the youth working in the city in order to promote peer knowledge groups. Dedicated Jobs MIS: A dedicated Jobs MIS will be streamlined which will help in measuring performance quality of both candidates and recruiting agencies. Migration and Livelihoods Promotion Strategy: The incidence of out-migration from rural Bihar is probably greater than anywhere else in India. A combination of circumstances, both natural and societal, has created a situation in the state where sending a family member out to earn was the only way of staying alive. There was a marked increase in migration after 1990 and even more so towards the end of the decade as the rural economy ground to a virtual standstill. While migration from flood and drought prone areas was not new, the closure of industries as well as law and order problems added to the outflow of people. According to the 1998 Uttar Pradesh Bihar Living standards survey conducted by the World Bank 95% of the migrants in Bihar are male. 130

143 The Importance of Skills: In each district roughly 5% of the migrants were skilled and belonged mainly to OBC castes. This includes carpenters, masons, welders, electricians, plumbers, tailors, drivers, mechanics etc., which may or may not follow a seasonal pattern. Skilled migrants earn considerably more than unskilled workers roughly Rs /month. Skills may be acquired through apprenticeship or on the job training. There is a growing demand for skilled workers (e.g. Lalhariya, migrants were able to secure jobs in plywood industries in Ludhiana because they used to work in a local plywood factory in Kasbah). Skills enhancement is clearly an area where interventions are needed. The negative impacts of migration: There are heavy costs associated with migration. This includes long separation from one s family brings isolation and loneliness; many are engaged in dirty dangerous and degrading occupations that affect their health and others engage in high risk sexual behavior and fall prey to STDs or HIV/AIDs. Women and children who are left behind also suffer from loneliness, anxiety and vulnerability to sexual exploitation. Children who migrate with their parents miss school. Migrant Support Programmes: In this section, strategy that is to be adopted in providing a dignified migration to rural youth going outside and within state is dealt upon. This will cater to the needs of circular migrants like need for job information, help in bargaining with employers, protection of their rights and lobbying against discrimination. The Social Protection Model: This model provides subsidized services related to job information, rights awareness creation and other support. Social protection aims to reduce poverty and vulnerability by promoting efficient labour markets, diminishing exposure to risks, enhancing their capacity to protect themselves against hazards and interruption/loss of income. Migration Resource Centre will be established which will act as a technical support body on design and implementation of migration services. In the beginning, this centre will functions as a knowledge hub on migration collating data and experiences across partner organisations. Later on, MRC will take its experience to other SRLMs in providing necessary assistance to organisations in designing and incubation of migration programs. In initial stages, MRC will work on four specific components such asa) Protection- Providing Identity cards, Insurance facilitation and protection of assets and family members b) Communication- networking with telephone booth, providing mobile phones and messaging services c) Information to migrants- Information on government schemes, on techniques and technologies relevant to their occupations, on contractors and on places where labour is in demand. d) Information to contractors on the availability of labour- In later stages, MRC will work on six specific components such as- a) Accessing entitlements. b) Negotiation for and on behalf of one or a group of migrants with contractors and middlemen for obtaining better wages / deals. c) Resolution of disputes with brokers, contractors and other employers (where it can reach) d) Facilitating remittances Between urban and rural areas, either directly or through existing financial institutions. This can also be facilitated through coordination with the postal 131

144 services. e) Skill up gradation- Unskilled and skilled migrants labourer are being skill migrants labourer (mason, carpenter, plumber, electrician etc.) f) Awareness Generation- Legal rights and entitlements, PDS, education, and health etc. The rationale of the social protection model is that poor migrants cannot fend for themselves in a job market that is dominated by labour market intermediaries and employers who are better informed and connected than they are. They are in need of support to reduce their vulnerability but are unlikely to be in a position to pay for or be willing to pay for services on a full cost recovery basis immediately. The services provided will enable them to access better jobs and reduce the level of uncertainty and harassment that they face in the job market. In the context of migration, there is also a need to help the poorest migrants to save and remit money to their families safely and efficiently. In this direction, a partnership with both private and nationalized bank will be done so that migrants can deposit their saving at one point and their family can take the money by giving nominal fees to the networked bank. This can also be done with the local NGOs as they are having a better outreach in terms of providing services to the community. A possibility of combining savings and insurance products with remittance services will also be given focus. In addition to the above, projects will also address the problems faced by female migrants and women in households where the adult males have migrated especially in terms of- Helping girls and women migrants, particularly those going to brick-kilns, in protecting them from any sexual exploitation. In this, Community Resource Persons and Self Help Groups will play a key role in creating awareness of potential dangers and whom to approach in case there is a problem. Helping mothers to educate children who have to travel with their parents. There will be coordinated effort involving local NGOs, governments and projects in running schools especially for children of migrant laboures. Improving awareness of HIV/AIDs and STDs and help in approaching health professionals for support on sensitive issues related to sexual health with a provision of mandatory participation in health camps Enterprise Promotion and RSETI The state of Bihar is primarily an agrarian economy. The dependence of the people on agriculture is largely due to unavailability of other options of livelihoods. There is a significant amount of migration that goes to important industrial cities of the country. These are primarily because of the lack of an environment that encourages the development of small and medium enterprises. There is an urgent need to identify and train breed of individuals who are willing to take up entrepreneurial activities in any sector. The economic renaissance that is taking place within the state is likely to supplement the effort made with regard to promotion of enterprises by the rural poor. There shall be a need by the livelihood promoting institution to work on policy level and create awareness about the supportive programs run by the government in order to promote enterprises. There shall be an attempt to bring together institutions like KVIC, NABARD and nationalized banks to support the spread of enterprises with in the state. The policy related to promotion of Micro and Small enterprises under CGTMSE (Credit Guarantee Fund Trust for Micro and Small enterprises) shall be put to the best use for the optimal benefit of the individuals. 132

145 The spread and visibility of enterprises in a particular geographical area is symbolic to existence of multiple sources of income for the people of the area. While the multiple sources of income through enterprises may not apply to the entire household of the area, nonetheless, it makes an apparent symbolic representation where in people are coming forward to reduce dependence on agriculture or agri -allied activities. Any livelihood promoting institution shall make all effort to encourage people to take up different enterprises in order to support family and enhance its income. The SRLM shall be actively putting emphasis on identification of households which are ready to venture in to new enterprise or are ready to expand the existing enterprise. The same can be encouraged by ensuring participation in experiential learning programs and long term hand holding support from the promoting institution. The exposure visit to some of the successful models shall also be put in practice by SRLM. SRLM shall also play an active role in the setting of Rural Self Employment Training Institutes (R-SETI). RSETI concept is built on the model pioneered by Rural Development Self Employment Institute (RUDSETI) a collaborative partnership between SDME Trust, Syndicate Bank and Canara Bank. The model envisages transforming unemployed youth into confident self- employed entrepreneurs through a short duration experiential learning program followed by systematic long duration hand holding support. The need-based training builds entrepreneurship qualities, improves self-confidence, reduces risk of failure and develops the trainees into change agents. Banks are fully involved in selection; training and post training follow up stages. The needs of the poor articulated through the institutions of the poor would guide RSETIs in preparing the participants/trainees in their pursuits of self- employment and enterprises. NRLM proposes to encourage public sector banks to set up RSETIs in all districts of the country. A one-time grant of Rs.1 Crore is/would be made to set up one RSETI in each district in each state, while the state governments would provide free land for the institutes in the districts. Other recurring costs of the institutes are/supposed to be borne by the sponsoring banks. RUDSETI would provide structured technical assistance to banks and RSETIs for improving the effectiveness of their programs. The areas of technical assistance to RSETIs would include trainee selection methodologies, course development, training pedagogy, MIS and post-training follow-up mechanisms. The post-training support mechanisms for graduates of RSETIs include interactive web portal, call centers, network of business counseling centers and alumni conventions. RSETIs would further partner with others to realize their mandate and agenda. 133

146 Chapter - 6 Convergence and Partnerships The government makes its best effort to ensure entitlement and other facilities to the poor through different programs. Some of them run very successfully and others have the potential to affect the life of the poorest in a very positive way if the effort of different departments converge and complement each other s efforts. Development of any community takes place in an integrated way if the financial and social development of a family is taken care of at the household level. The mandate of the SRLM stands for the social and economic development of the community at large and household in particular. Thus SRLM shall be paying attention to the issues of Convergence in the most meticulous way. This brings to the fact that synergy is required amongst different programs and departments to achieve the end result. SRLM and its activities have the potential for convergence with different programs and departments of the state government as it works directly with community and their formed institutions. In such a situation, it shall be important that SRLM takes measures to ensure Convergence with different programs and departments of the state government. The process of convergence in case of SRLM becomes all the more relevant because it shall be providing opportunity to all concerned departments to interact directly with stakeholders through the established institutional forum of community institutions like SHG s and VO s. In essence convergence can be visualized in two ways in SRLM; As supply driven, convergence can be facilitated by SRLM at the planning and implementation level between SHGs/ VOs and different agencies. As demand driven, convergence can be facilitated by SRLM between SHGs/ VOs and different agencies for aggregated entitlements at the grass root level. Though the scope and possibilities of convergence shall be according to the need of the community and its institutions under SRLM, nonetheless, the broader contours of the possible convergence with different programs and departments are mentioned below: 6.1 Convergence With MGNREGA Mahatma Gandhi National Rural Employment Guarantee Program is a very ambitious program of the government. The program has been launched to ensure 100 man days of employability to people who are willing to work as manual labour. This program has a potential to bring people out of poverty if integrated with the outcomes of different departments. SRLM shall be certainly an important stakeholder considering the presence it shall have with community in the rural areas. SRLM has the potential to emerge as natural choice as it shall have the policy to invest in capacity building of the community and their institutions. This aspect of investment in capacity building of the community institutions is likely to pave the way in a very positive way. To ensure the presence in a very strong way, presently a pilot has been initiated with the department and all the learning and deliberations of the pilot shall be incorporated while finalizing the final convergence action plan with Rural Development Department. Every attempt shall be made to find role for the community institutions in the rolling and decision making aspect of the program. A manual shall be prepared to support the business processes of the program and the role of the community institutions shall be clearly laid out. In that context only it shall be impressed upon the department concerned to explore the opportunity of unleashing the innate potential of the community cadre. An attempt shall be made to find role for the 134

147 community cadre also with a dedicated plan to invest in their capacity building for taking up the responsibilities and challenges of the program. The participation of the community in rolling out the program shall stand in good stead in terms of the scope shall it offer to fulfill their aspirations. In case of convergence, SRLM shall facilitate the institutions of the poor at village level to discuss MGNREGS in their regular meetings, be involved in preparing job cards, selecting works, supporting in wage payments, creating awareness about entitlements and rights under MGNREGA. In coordination with the program, an attempt shall be made to ensure the opening of the bank accounts of the individuals who shall be interested in seeking jobs under MGNREGP. To put the things in a nutshell, the works under SRLM shall be offering opportunities in such a way that convergence shall become the order of the day. All effort shall be made to partner with MGNREGP through community Institutions. 6.2 Convergence with Other Line Departments Integrated Child Development Scheme ICDS Scheme represents one of the world s largest and most unique programs for early childhood development. ICDS is the foremost symbol of commitment for development to the children for providing pre-school education on one hand and breaking the vicious cycle of malnutrition, morbidity, reduced learning capacity and mortality, on the other. In order to understand the functioning and area of work, following is the description of the objectives and services offered under ICDS: The Integrated Child Development Services (ICDS) Scheme was launched in 1975 with the following objectives- To improve the nutritional and health status of children in the age-group 0-6 years; To lay the foundation for proper psychological, physical and social development of the child; To reduce the incidence of mortality, morbidity, malnutrition and school dropout; To achieve effective co-ordination of policy and implementation amongst the various departments to promote child development; and To enhance the capability of the mother to look after the normal health and nutritional needs of the child through proper nutrition and health education. The above mentioned objectives are very much in alignment with the aspirations of the community and its institutions in terms of the desire for a healthy and educated childhood in their vicinity. The same shall get reflected in the working of the SRLM also as it shall make an attempt towards finding areas of convergence in order to ensure the participation of the community institutions in the achievement of the objectives set under ICDS. It is equally important to understand the services being offered under ICDS and find areas of participation of community members. The package of services offered under ICDS are comprising of supplementary nutrition, immunization, health checkup, referral services, pre-school non-formal education, nutrition & health education. The objectives of ICDS and the range of services offered under it offer immense scope of convergence between ICDS and SRLM. The SRLM shall be actively engaged in formation and nurturing of quality community institutions of the poor women households. The children of these households are only the major stakeholders of the ICDS program. Having the community institution structure well in place at a village level that has been capacitated to identify the resources, problems and their solutions thereof, it shall stand in good stead for ICDS also to provide opportunity to such community institutions as service delivery institution for ICDS. This will bolster the efficacy of the program as the stakeholders shall be given the responsibility to run with it. The services offered under ICDS shall be immensely useful for the community institutions and it makes it all the relevant for SRLM to initiate dialogue with ICDS and map the possible areas of convergence. 135

148 SRLM shall be making a spearhead team to look in to the issues of areas of convergence with ICDS and the broader contours along the lines of convergence shall be finalized with concerned department subsequently. The details and processes of rolling the convergence points shall be dealt through agreement note and manual agreed to both sides Convergence with State Health Society under NRHM Both the central and state government is actively engaged in ensuring access to better health services for the rural people under NRHM. These services can best be utilized when awareness is spread to the common masses. The spread of awareness can certainly be done through the participation of community and their institutions. This role can be played quite effectively by the quality nurtured community institutions. The institutions of the poor has the agility to take up the responsibilities bestowed upon it and in the process a lot of social capital is created at the community level. The areas of convergence shall be chalked out with NRHM for the issues like making provisions for the availability of mobile van clinics in the far flung areas, institutional delivery, issues related to maternity and child health, issues related to preventive measures required for diseases like TB, Kalazar, AIDS etc. The areas of work shall be explicitly chalked out with State Health Society and shall be agreed in principle as MOU. The thing that shall be paid highest attention to is the issue of role for the community and its institution in the whole process. The broader scope of convergence shall ensure the participative role of the community in the work of creating a better and healthier society to live in. The project JEEViKA is already working on issues of reducing expenditure on health by encouraging people to adhere to better hygiene practices and encouraging people to access mainstream institutions for health related treatments. The learning of such experiences shall certainly be taken in to consideration while forming a schedule of convergence with NRHM Convergence with Panchayat Raj Institutions under Panchayat Raj Department SRLM shall make an endeavor towards entering in to convergence arrangement with Panchayat Raj Department and play an important role in ensuring the participation of community members in the whole process of decision making at the Panchayat level. Community institutions formed and nurtured under SRLM shall interact with the PRI s in the same way as a normal resident of the area does. However, the formation of community institutions in a concerted and saturated way leaves scope for acting as a pressure group in a positive way on the PRI s. These institutions of the poor in the form of SHG s or their federations are nurtured to adopt the democratic functions like transparency, good quality leadership, willingness to listen to other s opinion and adhering to the group norms. These are a ready reckoned for any well-meaning PRI to utilize the forum for fulfilling the mandated functions and aspirations of the Panchayat Raj. In the long run, the existence of institution of poor in form of SHG s or village organizations are likely to act as Complementary factors in rolling the programs of the government in equitable and transparent way. If these institutions are given or delegated greater role by PRI s, have the potential to transform the social and economic fabric of an area in a positive way. The need shall to educate representatives of PRI s on issue of accepting SHG s and their federations as potential tools for delivering transparent, honest and development oriented governance at the grass root. The capacity building effort made at creating Poor s institutions shall stand in all good stead as they have started from scratch and have learnt the art of moving ahead with common consensus. The SHG s have the art of bringing the maximum result with limited and constrained resources. The potential rests with community institutions to become able tool of PRI s for effective governance. 136

149 Considering the above mentioned scope and need, deliberations shall be initiated with the department and scope of convergence shall be charted out and acted upon. The processes and the areas of convergence and working together shall be explicitly agreed upon through an MOU Convergence with Agriculture Department The state of Bihar is trying to make big strides in agriculture sector. This sector is getting the prime attention of the government. This is likely to change the face of the economy of the Bihar. The state of Bihar being an agrarian economy has the vast potential of eradicating poverty through agriculture and its supporting activities. Realizing the same, the department of agriculture is coming up with host of activities to support the overall objective of agriculture development. Some of the activities undertaken by the department includes encouragement to farm mechanization by providing subsidy to farmers for purchase of farm equipment, productivity enhancement by ensuring higher seed replacement rates, ensuring higher amount of capital investment by paying attention to distribution of Kisan Credit Cards, providing assistance for horticulture activities, establishment of the farm field schools, acknowledging the effort of the farmers by providing them with prizes and number of other such activities. The importance of agriculture sector with respect to the development of the state has assumed such a higher order of significance that the concept of Agriculture Cabinet has been brought forward the state government. This has been done to ensure better convergence between different departments to ensure overall development of the agriculture sector in the state. Altogether 17 departments are the part and parcel of the agriculture cabinet and it shall be chaired by the Chief Minister. In such a scenario where government is aspiring to find partners for taking the knowledge to the masses, the work done under SRLM shall assume greater importance. The community institutions of the poor shall be an important vehicle that can be trusted with the responsibility of enhancing the productivity of the state. An initiation has been made in this regard when the work of SRI started by BRLPS for enhancing agricultural productivity got ratification when agriculture department decided to scale it up on a large scale. The year has been declared as year for SRI KRANTHI. In the above mentioned scenario, SRLM shall be making all the effort to ensure convergence with agriculture department in order to make an overall impact on the livelihoods of the household. SRLM shall also be working very strongly on ensuring diversified portfolio of livelihood for the landless and marginal farmers of the community in order to enhance income. Considering the mentioned scope and need, deliberations shall be initiated with the department concerned and scope of convergence shall be charted out and acted upon. The processes and the areas of convergence and working together shall be explicitly agreed upon through an MOU. Besides the above mentioned departments, SRLM shall also be actively engaged in trying to forge convergence with other line departments in order to fetch better results for the community in general and poor in particular. The lists of department can be large and shall be area specific also. Convergence with departments like PHED, Food Supplies, Irrigation and host of others shall be immensely useful. The attempt by SRLM also shall be to enter in to convergence with number of such institutions for the integrated development of the poor. 137

150 6.2.5 Convergence with Health Department Health expenditures are a major source of capital drain from a poor household. This depletes not only the hard earned capital but also brings indebtedness to the family. There is a need to mitigate the expenditure by ensuring the linkage of community institutions with the services being offered by the government through health department. The state has seen marked improvement in the infrastructure being created for facilitating the provisions of essential health services to the most remote areas. These services can best be utilized if the community is sensitized on the changes being brought by the government. The network of created community institutions can be of tremendous help in ensuring behavioral change at the individual level to seek benefit from the infrastructure of the created health centers. The community shall be encouraged to visit health centers in times of need and save both life and money at their end. Besides this, the community shall be encouraged to ensure institutional delivery for the better health of both mother and child. The government through its measures has been putting emphasis on mitigation of malaria in the state. This disease is very common and causes a lot of damage to the people s health. The scenario can be improved a lot with the facilitation at the community institution level for leveraging the facilities offered for the mitigation of Malaria across the area. Thus all measures shall be taken to facilitate convergence with Health Department for leveraging the already facilities provided by it. This also will include the need to get sanctions under Chief Minister Fund for medical emergencies. This is likely to reduce the burden of expenditure for diseases of serious nature from a poor household. This shall be practically beneficial as a poor person cannot afford so huge expenditure to save one s life. In a nutshell, the project shall make all efforts to make convergence with Health department and facilitate seeking designated benefits for the poor households. The processes and the areas of convergence and working together shall be explicitly agreed upon through an MOU Convergence with government institutions working for similar issues and with similar target households The government is making all strides to reach to the poor households through different institutions and programs. All these institutions and its related programs are intended at enhancing the living standard of poor households in general and serving the interest of most vulnerable section of the society in specific. Institution like Mahadalit Commission is working with the most vulnerable section of the society and is working for all round development of the vulnerable section of society. This is an opportunity to join hand as the mandate and aspirations of both institutions converge at the same community. Having the institutions of the community in place, the work of both the organizations can be leveraged to bring benefits to the Mahadalit Community. Thus broader understanding shall be charted out between the institutions and contours of convergence shall be worked upon and implemented. In similar fashion, there are institutions promoting the interests of scheduled castes for holistic development. The provisions for such institutions shall be well understood and terms of acceptance shall be negotiated between the partnering institutions to work on common agenda. This will help in mitigating the chances of duplication of effort. Besides this, the advantage of moving through the institutional model of community rests in the fact that community becomes part and parcel of implementation process and becomes its decision maker. Similarly institutions promoting small and cottage industry shall also be roped in to facilitate the spread of small and medium cottage industries in the rural areas and ensure better employability. Similarly there will be number of institutions that shall be working on the mandate close to that of designated mandate of JEEViKA and certainly an attempt shall be made to find scope of collaboration. The processes and the areas of convergence and working together shall be explicitly agreed upon through an MOU in course of time. 138

151 6.3 Innovation Forum Table : 6..1 Innovation Forum Access / Infrastructure Indicators 5 Unconnected to roads (%) Credit per capita (Rs) Households with access to water (%) Households with access to power (%) Tele-density (per 100 population) Urban population (%) Bihar All India 70 6, After being in the limelight for being one of the most backward states in the Country, Bihar has emerged as the miracle economy. According to the Central Statistical Organization (CSO), Bihar has recorded the highest State Gross Domestic Product (SGDP) in a year, percent in , 6 when there was a global meltdown and the Indian economy s growth rate came down to 6.7 percent from 9 percent. The flip side is that much of this growth does not get reflected in social and poverty indicators which remain very weak more than half the state s 8..2 crore people 1.25 crore families still live below the poverty line. Less than 27% 7 of the farmer households have access to formal financial services, 44% 8 of households have access to electricity, even though there has been substantial growth in provisioning of healthh services by the government over the last 4-5 years still a large number of rural poor depend on relatively highh cost and poor quality of care and a very high proportion of the population particularly women and children are malnourished. The agriculture sector including livestock, the primary source of livelihoods for the rural poor, has its own set of challenges. Bihar has as many poor as Sub-Saharan Africa (population < $1.25 per day). Bihar is characterized with poor access to infrastructure and service delivery Figure 6. 1 Headcount of Poverty Rate Source: World Development Report (WDR), Source: LI IS Report, State Reports, and percent during the period to slbc.bih.nic.in/documents/promoting-financial-inclusion.pdf 8 en.wikipedia.org/wiki/electricity_sector_in_india 139

152 In order to address the challenges of rural poverty in Bihar there is need to come up with innovative solutions which addresses both the supply and demand-side issues including improving access to both public and private services such as health and nutrition, education, energy, clean drinking water, financial services including remittances, and rural markets and technology for small/marginal producers. The Bihar Innovation Forum (BIF) provides a platform for innovators including Social Entrepreneurs and Private Sector Organizations to show case their innovative ideas and also possibly enter into a partnership with the Bihar Rural Livelihood s Promotion Society (BRLPS) to pilot test the idea at large scale. In essence, the key strategy for innovation in the region is as follows; Promote a forum for innovation for scouting, validating and promoting innovations through the ongoing forum and /or NIF. Provide support for scaling up of innovation Bihar Innovation Forum (BIF) The Bihar Innovation Forum (BIF), introduced in the year 2007 by BRLPS, is a platform to showcase the innovations in the livelihood sector by innovators, particularly from Bihar. BiF provides an opportunity to BRLPS to identify potential innovations and partners to work with JEEViKA (the Bihar Rural Livelihoods Project implemented by BRLPS) in addressing the needs of the rural poor in the State. BIF 2007 was the first of its kind in Bihar wherein 150 innovators came through a rigorous process of scouting and selection out of which 25 were awarded with the cash incentives and certificates of merit, 5 of them partnered with BRLPS in piloting and subsequently scaling-up their innovations, and 2-3 of them partnered with other development agencies including DFID and one of them (SAMMAN) was recognized by the President of United States with Global Social Entrepreneur of the Year Award Purpose and Objective Over the past few years, several organizations, firms and private entrepreneurs have translated new ideas, approaches, practices, methods and technology into tangible impacts in the areas of social empowerment, development of community based organizations, income generation, asset creation, improving the delivery of essential services health, education, financial and social security in rural areas in several parts of the country. The main problem is that these innovations have largely been localized, are not known, and are unable to be scaled up often for lack of resources and exposure to other interested institutions from within Bihar and from other States in India and abroad. The objectives of BIF are: To provide an opportunity to showcase innovations in rural livelihoods across various sectors and emerge as a platform for bringing together the innovators and the agencies interested in innovations. Thus the event will lead to the creation of Public Private People s Partnerships. To identify & recognize grassroots level innovations and support in expanding outreach. Overall to create an enabling environment for new approaches to be tried out in the area of rural livelihoods particularly in challenging socio economic contexts. Criteria for identifying/selecting innovations are a) applicability, as measured by its relevance to improving rural livelihoods in Bihar; b) scalability, whether it is possible to be expanded in terms of geographical reach and beneficiary coverage; c) outreach, measured in terms of number of beneficiaries reached; d) impact, assessed in terms of growth in income or savings in expenditure; and e) sustainability, potential to be replication and sustainable without external assistance. 140

153 The event will bring together venture capitalists, bankers, government, public and private sector corporations and funding agencies (including national and international agencies, and foundations). The event will thus provide an opportunity to innovators to partner with interested organizations in piloting and scaling-up their innovations BIF will also launch Network of Grassroots Innovator, which will be a web-platform providing opportunity to exchange ideas and build advocacy for supporting innovations; and Apart from this, six of the best grassroots level innovations amongst the district level workshops would be showcased in the final event. Some provisions like Micro Innovations Fund, a venture fund dedicated to support innovative ideas with start-up capital, provide technical assistance in preparing business plans for supporting their innovations may also be explored. 6.4 Partnership With NGO s and Other Civil Societies The activities under SRLM shall start with the formation of community institutions. These community institutions need to be nurtured adequately in order to bring dynamism that makes itself sustainable over a period of time. The need of the time shall be adequate investment both in terms of capital and capacity building so that community institutions get adapted to the emerging needs of the community and work towards becoming self-sustainable. As SRLM shall be working on the principle of saturation, tremendous amount of effort is required to meet the set objectives of livelihoods promotion of the poor house hold. In such a scenario, it shall be important that SRLM comes forward to integrate the already good work done by some civil societies in the areas related to dimensions of livelihoods promotion. The scope of partnership shall be open and could include areas like capacity building of community institutions, development of community cadre, training of community cadre and project staff, Micro Finance activities, Sub-Sectoral interventions etc. and number of others. To put it in a nutshell, some of the possible areas of partnership would include: Implementation of the programme in specified clusters of villages or blocks; Up-scaling and deepening thematic interventions in areas of significant presence; Service provision in their core competence areas like capacity building, reproductive child health, nutrition, education, agriculture etc; Linking SHGs and their federations with various initiatives of line departments; Innovations; Joint Policy Advocacy and learning forums/platforms; and Continuous dialogue with NGOs and other CSOs to improve SRLM implementation. The need shall be to incorporate and complement the work of NRLM with that of the works of the civil societies. It is an accepted phenomenon that a number of civil societies have done tremendously good amount of work in areas of community mobilization, health, education, decentralized planning etc. The SRLM shall be offering opportunities to such institutions to complement the work and avoid any duplication in the effort. As the activities under SRLM shall be increasing to the higher proportion, it shall be important for the SRLM to find ways of entering in to the partnership arena with performing and quality oriented Civil Societies to support the enlarged work. The partnership with NGOs and other civil society organization would be identified and explored under two realms; Implementation of the core model under the guiding principle & NRLM framework and based on qualitative parameters. 141

154 Taking support for selected interventions as technical partners. The aspect of livelihoods promotion of poor is quite a complex task and thus needs hands that are specialized in doing it. The work under SRLM shall have the opportunity to benefit from the already work done and lessons drawn by different civil societies. The policy guidelines for such partnerships shall be a mix of scouting for the specialization of the concerning institutions. The internal guidelines framed under SRLM for the partnership shall provide guidance in selecting the partners based on the quality parameters. The selection process envisaged under Bihar Innovation Forum shall also be utilized in the overall partnership guidelines. At the same time, the feedback of the workshop organized for different stakeholders of SRLM shall also be utilized while framing the overall partnership guidelines. The required and necessary norms of the government shall also be put to use for the fair and transparent system of partnership. 6.5 Convergence with Externally Aided Programs SRLM will explore the areas of collaboration and convergence with externally aided programs which have a mandate to work on similar outcomes. 6.6 Partnership with the Academic, Training & Research Institutions It shall be important for SRLM to partner with some of the academic, training & research institutions of the state in order to ensure better outcomes for the activities undertaken. These academic and research institutions shall prove to be of paramount importance to provide neutral feedback through series of research undertaken by them related to different thematic areas of the project. Different institutions catering to different requirement of the SRLM shall be approached for better results in their areas of expertise. For example, Rajendra Agriculture University and Krishi Vigyan Kendra may be approached and roped in for providing technical and demonstrative support to community institutions in order to enhance productivity. Similarly, public institutions like A. N. Sinha and Chandra Gupta Institute of Management Patna may be roped in for various support activities like undertaking research on different themes, providing training to project staffs on emerging issues of management and leadership, preparation of successful developmental case studies and sensitizing the government at policy level with the possible result oriented outcomes. They may also be roped in as institutions to conduct national and state level thematic workshops related to dimensions of livelihoods promotion. These are the broader contour of partnership that has been mentioned. New areas and scope for bolstering these partnerships shall be actively explored and acted upon. The SRLM shall also actively get involved with different universities and their esteemed faculties to facilitate the starting of new syllabus related to development sector and more so catering to the dimension of community institutions and aspects of integrated livelihood promotion. As the SRLM shall be spreading its wings across the state, so there shall be an emerging need of human resources well qualified and oriented to act upon the vulnerability issues of poor. The project shall also be making due emphasis on partnership with private institutions catering to the requirements of research and policy advocacy. Institutions like ADRI, Praxis and similarly others may be judiciously roped in for using their expertise in providing suggestions on improving the efficiency and effectiveness of the program undertaken by SRLM. To put the scope of partnership in a nutshell, following shall be the area of importance given by the academic, training & research institutions: 142

155 To take up research activities related to the themes of the program and provide inputs on improving the efficiency of the program. To provide technical support in order to enhance productivity in agriculture and allied sectors. The approach of demonstration suitable for Community Institutions shall be worked upon and shall be given higher priority. To provide support in creating strengthened cadre of community to take up different roles and responsibilities. To provide training to project staff on emerging issues of project with meticulous planning and preparation. Development of case studies related to community institutions. Detailed work out shall be made on its analysis. These case studies shall play a critical role in putting across the world the hidden innate potential of poor and the need to unleash it in way of integrated development. To play important role in establishing the efficacy of Community Driven model for integrated development. To conduct national and state level workshop on issues that has the potential to affect larger segment of society. 6.7 Public-Public, Public-Private, Public-Private-Community Partnership The SRLM in state of Bihar shall be spearheaded by a public institution framed by the government to cater to different requirements of livelihood promotion within the state. The nodal agency shall be putting its best foot forward to draw lessons from the works of other institutions and assimilate those learning in the implementation process. There are many institutions that have worked towards establishing institutions of the poor to lead the way of integrated development for the poor. The learning and modus operandi of such implementation shall be duly taken in to cognizance and scope shall be created for those institutions to lend a supporting hand in scaling the implementation. The project shall also be working towards providing support to individuals and institutions that have done remarkable work in their own area and have been selected as one of the recognized innovators through the selection process of Innovations Forum launched by the SRLM. The partnership shall be done based on the work recognized by Innovations Forum. Such learning can come from any kind of institution, be it public, private or community institution itself. In such a circumstance, due effort shall be made to leverage and complement each other s potential. These partnerships can be for research activities, end to end marketing support, forward and backward marketing linkage, Capacity building, productivity enhancement, basic governance issues and other similar issues that are the requirement of the day. Some of the institutions that shall be approached for such partnerships include COMPED, CIMP, A. N Sinha, ADRI, PRAXIS, PRADAN, BASIX, ASA, SSK, CPSL, NIDAN, EDA and galaxy of others who will join in the process. The above mentioned different aspects of partnership shall be based on the transparent system being framed under SRLM through its guidelines. An attempt shall be made to make these guidelines quite inclusive in nature and which can generate interest amongst civil societies, academic institutions and others for participation in the process of partnership with SRLM to achieve the end objective of mitigating and if possible eradicating poverty from the state of Bihar. 143

156 Chapter - 7 Implementation Plan 7.1 Implementation Strategy As described details in the respective chapters, the key implementation strategies for SRLM is as follows; Inclusion of Pre-existing SHGs and Federations A scoping exercise would be undertaken across all the blocks to identify and study the SHGs and federation. Based on set criteria, pre-existing SHGs and federation would be included Promoting Self Help Groups SHGs of the poor would be promoted under RLM. While mobilizing the identified poor into the SHGs, priority would be given to the vulnerable sections like the SCs, the STs, the landless, migrant labour, isolated communities and households led by single women and people with disabilities Formation of Village Organization (VO) Once a minimum number of functional SHGs are established in the village and micro plans prepared, the facilitation team will undertake promotion of primary federation of SHGs. The triggers for initiation of VO will be at least 8 SHG are functional with membership of 12 members, member of SHGs are doing regular weekly savings from last 3 month and SHGs are given training on VO concepts and they are ready to federate themselves Formation of Cluster Level Federation (CLF) Once a minimum number of functional VOs are established in the village, the facilitation team will undertake promotion of Cluster level federation of VOs. The triggers for initiation of VO will be at least VOs are functional with membership of SHGs, EC of VO are doing regular monthly meeting from last 2 years and VOs are given training on CLF concepts and they are ready to become part of cluster level federation Formation of Block Level Federation The Block Level Federation will emerge when the SHGs/ VOs/ CLFs have attained a critical strength both in terms of numbers and capacities. This is when the need for converging/ aggregating at a higher level will be required. The requirement will in terms of dialoguing with Government, Private Entrepreneurs, Banks, and MFIs etc. for supporting development both economic and social in their respective geographical area Livelihood Based Producer Groups Development of livelihood groups (Producer Groups) and their federations (Producer Cooperatives/Companies) will also be facilitated. The producer groups and their federations would derive membership from the base CBO unit viz., SHG. The livelihood groups would be provided support through customized training for village and block level management of enterprises, productivity enhancement, franchise management, quality enhancement and value addition skills. 144

157 7.1.7 Financial Assistance The Mission will have a component of Community Investment Fund (CIF) mainly aimed at the process of capitalization to Self Help Groups and their primary level federations. The following funds are proposed to be parked with the CBOs. Initial Capitalization Fund Health Risk Fund Food Security Fund Livelihoods Fund Skill Development Fund Miscellaneous Fund: This fund has been created in anticipation of emerging requirements of the community in due course of time. Interst Subvention Bank Finance In order to bring different players achieve the aim of economic prosperity in the state of Bihar, BRLPS envisages to make significant strides in terms of building and nurturing quality institutions like that of SHG s and their Federations and linking it with mainstream financial institutions Facilitating Access to Insurance Services SRLM shall work very strongly towards ensuring access insurance schemes to enhance a family s capability to cope with risks and shocks. In this, the focus would be on ensuring access to government supported insurance schemes, livestock insurance and health insurance Vulnerability Reduction Under the vulnerability reduction strategy, SRLM would work towards food security, health security, access to entitlements and disaster management for the target communities Livelihoods Promotion The livelihoods promotion strategy focus on strengthening farm, off-farm and non-farm based livelihoods through intervention in agriculture, dairy, small ruminants, beekeeping, fishery and individual & cluster level activities Skill Enhancement and Jobs Promotion Creating one job per poor household, in formal sectors, would be the key focus of the mission. Attempt to bridge the skill gap and entry level barriers for the rural poor youth and facilitate their entry into relatively high wage employment in the growing sectors of economy would be focussed. It would offer complete jobs solution - identifying the unemployed, skilling and reskilling them, placing them in jobs, providing post placement support, counseling and mentorship, and leveraging an alumni network Convergence with Line departments The process of effective convergence between all poverty alleviation initiatives would be guided with two broad parameters : As supply driven, convergence can be facilitated by SRLM at the planning and implementation level between SHGs/ VOs and different agencies. As demand driven, convergence can be facilitated by SRLM between SHGs / VOs / CLFs / BLFs and different agencies for aggregated entitlements at the grass root level. 145

158 Constitution of District Coordination Committee - JEEViKA For effective implementation of the programme of NRLM at district and block level and also to integrate with the DRDAs, it is envisaged that an exclusive District Coordination Committee (DCC) - JEEViKA will be constituted. The basic objective of the DCC will be to provide support to programme implementation by DPCU / DMMU of BRLPS. Functions of the DCC may include developing and strengthening linkages and convergence of various programmes of the Government departments, integrating departmental plans and programmes with annual action plan and budget of DPCU / DMMU, provide efficient and trouble free delivery mechanisms for programmes of communities, review the progress of implementation of programme and take up follow up actions. The members of the DCC will include the following: 1. District Magistrate as member and Chairman of the Committee 2. Dy. Development Commissioner as Convener & Member Secretary 3. Director-A/c, Admn. & SE, DRDA as member 4. District Agriculture Officer as member 5. District Animal Husbandry officer as member 6. District Welfare Officer/District Programme Officer 7. Managing Director, District Industry Centre as member 8. Executive Engineer, PHED as member 9. Chief Medical Officer as member 10. Sr. Dy. Collector-Banking as member 11. Lead bank Manager as member 12. DDM, NABARD as member 13. Representative of NGO/CSO as member 14. District Project Manager (DPM), DPCU, BRLPS as Coordinator 15. Any other member as decided by the Chairman Meeting of the DCC will be held monthly/bimonthly. DPM will take initiative for convening the meeting with approval of DDC. Notice along with agenda of the meeting may be sent to all the members under the signature of DDC. This meeting will exclusively be convened to discuss SRLM agenda and issues. DPM will prepare minutes of the meeting and maintain meetings records. He will also prepare list of actionable points and person/department responsible for action emerging from meeting resolution. In each meeting action taken report may be presented Partnership with Government agencies / CSOs The mission would proactively seek partnerships with various Government departments / agencies including Women Development Corporation (WDC) and other Civil Society Organizations (CSOs / NGOs). It would be identified and explored under two realms; Implementation of the core model under the guiding principle & NRLM framework and based on qualitative parameters. Taking support for selected interventions as technical partners. The partnerships would be guided by NRLM s core beliefs and values, and mutual agreement on processes and outcomes. Partnering agencies would be appraised as per Objectively Variable Indicators. The guiding principles for the appraisal are as follows: 146

159 The existing capacity and expertise of the partnering agency to be optimally utilized There should be minimum wastage of existing Social and Human Capital The non-negotiable principles of NRLM are not to be violated Duplication of the work and resources are to be avoided The possible areas of partnerships would include: i. Implementation of the programme in specified clusters of villages or blocks or district; ii. Up-scaling and deepening thematic interventions in areas of significant presence; iii. Service provision in their core competence areas; iv. Linking SHGs and their federations with various initiatives of line ministries; v. Innovations; vi. Joint Policy Advocacy and learning forums/platforms; and vii. Continuous dialogue with agencies to improve NRLM implementation Association with academic institutions, external aided projects, other agencies working for the same target groups including public private partnership Various potential institutions will be taken on board as per requirement of the mission and to streamline the delivery mechanism at the grassroots. 7.2 Intensive and Non-Intensive Approaches Rural Livelihoods Mission program would be implemented in all 534 blocks of Bihar and for this, it would require huge resources. To ensure quality, mission would be implemented in phased manner i.e. implementation in all 534 Blocks by Presently BRLPS is implementing JEEViKA in 55 Blocks. The detail phasing plan for scaling up the program from 55 blocks to 534 Blocks would be based on two strategies for implementation of NRLM program. Intensive approach Non Intensive Approach The blocks coming under the non-intensive approach would be covered through the intensive approach after one year. By 2014 the mission would cover all the 534 blocks through intensive approach in the state Intensive Approach In intensive approach, there would be full strength of human resources and operating office BPIU/ BMMU with required amenities at Block Unit. The manpower would be One BPM, three Area Coordinators, one Livelihoods Specialist along with nine community Coordinators and the support staff at Block level. The project strategy is to saturate the block with the whole livelihoods framework within the period of five years Non Intensive Approach In Non-intensive approach there would be only one Area Coordinator and two Community Coordinators in a block working in fewer Gram Panchayats. The team would be supported by the operational BMMU in the same district and the DMMU established in the adjacent district would hand hold the BMMU for a period of one year. They would start the foundation work of mission at Block 147

160 level i.e. initial rapport building, mobilization and institution development and program awareness generation. Under the non-intensive approach, the implementation would be limited to a focus area. The aim of this would be to prepare small pockets of excellence in the block to support implementation 7.3 Selection of District And Block Selection of district The selection of District under intensive approach is largely guided by three criteria. These criteria are independent to Geographical location as per suitability for scaling up the Program There are districts which have been selected based upon their size and location. Districts which have large number of blocks (between 18 and 27) have been selected for implementation from the very first year so that the mission reaches all the blocks of these districts by 2013 (e.g. Patna, Samastipur etc.) Human Development Index including Population of SC/ST in the District HDI has also been utilized to select districts for the intensive approach. Here population percentage of SCs and STs has been taken as a proxy indicator for the selection (e.g. Samastipur, Sitamarhi districts have a high proportion of SC population, Nawada district has a high proportion of Mahadalit population) Study of Poverty and Social assessment done by ADRI As third criteria, poverty and social assessment done by ADRI has been utilized for selection of districts. The livelihoods potential has been a key parameter for selection. Based on the above indicators, the analysis of district is as follows : 148

161 Table: 7.1 Study of Poverty and Social assessment done by ADRI Livelihood SC Vulnerabil BPL s Index - Population ity / HDI ADRI Size/ No. of Blocks Combined Evaluation Sl. District SC % Population Position Ranking (Max SC at 1) BPL % Position Ranking (Max BPL at 1) Rank with respect to combined Livelihood Potential Index Position Ranking (Most Low Potential at 1) 149 Rank as per Combined Vulnerability Index Position Ranking (Most Vulnerable at 1) Actual No. of blocks in district Position Ranking (Maximum Block at 1) Combined Rankings Position Ranking (Most desired at 1) 1 E Champaran Madhubani Sitamarhi Samastipur W Champaran (Betiah) 6 Darbhanga Madhepura Katihar Purnia Gaya Supaul Sheohar Kaimur (Bhabua) Vaishali Araraia Nawada Muzaffarpur Jamui Nalanda Kishanganj Gopalganj Patna Saran Rohtas Siwan Begusarai Bhagalpur Bhojpur Aurangabad Banka Buxar Saharsa Munger Khagaria Jehanabad Lakhisarai Sheikhpura Arwal

162 It is also envisaged that 10 regional centers would be started for supportive supervision and handhold the field teams. Based on the above criterias, it is proposed to start District units in 12 districts in the initial year, in addition to where JEEViKA is being implemented. These districts are; Bhagalpur Darbhanga Sitamarhi Purbi Champaran Jamui Samastipur Patna Rohtas Nawada Paschim Champaran Katihar Gopalganj In each of these districts, a critical number of 3 blocks would be selected for intervention under the intensive approach for the first year apart from one block each from the next phase of districts, i.e. 17. So in a total, we will be entering in all districts in the first year with 12 district units. Number of Blocks Of the 38 districts in the state, JEEViKA is being implemented in 9 districts. The remaining 29 Districts has been divided into three categories based on its size i.e. numbers of Blocks. 1. Small : Number of blocks less than 9 2. Medium : Number of blocks Large : Number of blocks Table: 7.2 Sorting of districts on the basis of number of blocks Sl. Category of District No. of Blocks Av. No. of Blocks 1 Small 5 to Medium 10 to Large 18 to No. of Distri cts Name of Districts Sheohar, Arwal, Sheikhpura, Jehanabad, Khagaria, Munger, Kishanganj, Lakhisarai, Araria, Jamui, Saharsa, Aurangabad, Banka, Bhabhua, Buxar, Supaul, Madhepura, Bhojpur, Gopalganj, Nawada, Purnia, Bhagalpur, Katihar, Muzaffarpur, Vaishali Sitamarhi, Begusarai, Darbhanga, W. Champaran, Rohtas, Siwan, Nalanda, Samastipur, Saran, Gaya, Madhubani, Patna, East Champaran (Motihari) On an average in one district there are 14 blocks but the size of block varies quite a lot. On an average each block would have potential of around 2000 SHGs. It is proposed to divide all the districts in three Categories- Small, Medium and Large based on Poor HHs, No. of Blocks etc. While in Smaller district the project would enter in one phase (all 5-7 blocks), Medium Size district in two phases (7-15 blocks) and Large Size district in three phases (15 to 25 blocks). Establishment of Nodal DPCU in each region (at least a year ahead of scaling up in all the Blocks). We propose to have a poverty ranking of all the blocks within a particular district, and actual selection of blocks and their sequencing need to be done based on the rankings. 150

163 The objective of this would be to enter all the districts in the first year and reach out to all blocks by Table: 7.3 The Year-wise entry plan Year Distt. Entry DPCU In year , apart from the existing districts, DMMUs would be established in 14 new districts, which would facilitate entry into all 38 districts of the state. One DMMU would service three blocks intensively and 3 blocks non intensively of the same district. In addition to this, it will hand hold 1 block of an adjacent district intensively which in turn will service 3 blocks of that district non intensively. 190 nos. of blocks would be entered out of which 79 as intensive and 111 as nonintensive. The mission would reach a cumulative number of 245 blocks by the end of the year The districts, where the DMMUs are being established, are preferred not only on the basis of geographical suitability, but also the poverty index as well as the strength to act as regional hubs. In year , DMMUs would be established in rest 17 districts. The blocks being facilitated by the neighboring DMMUs will be transferred to DMMUs in their own district. A total of 148 blocks will be taken as intensive including the 111 non intensive started in blocks will be again taken as non-intensive making the cumulative entry to 431. In year , all the 149 non intensive blocks will be converted into intensive and rest 103 blocks will be taken in the fold of non-intensive making the total reach out to all 534 blocks of the state. In the fourth year , all these 103 non intensive blocks will be converted as intensive. It completes the entry and will continue its saturation model as proposed Selection of Block and Village Total (Intensive) Block Block Intensive) The selection of blocks / village for phasing would be decided based upon the major criteria of : No. of SC / ST Households (preferably Mahdalits) and No. of BPL Households. (Non Cumulati ve Upto Total The identified vulnerable hamlets by the state government would be referred apart from the above. The following criterias would also add value to the selection process. A scoping exercise is also proposed to be undertaken at the district / block level. Available social capital i.e. CSOs, SHGs, awareness. Scoping exercise undertaken by an independent agency would help us establish the following regarding the CSO and Community Based Institution. 151

164 i. Potential of CSO: Scoping exercisee would provide an idea about the potential of CSO to implement the core model and help us take a decision regarding forging a partnership at the state level. ii. Social/ human capital in the community based organization: The exercise would also provide us with information regarding the social/ human capital in the CBI and this would help us in segregation of the CBO. iii. Level of acceptance: The exercisee would also give us an understanding into the level of acceptance at the CBO level regarding their inclusion in the project. The availability of CSOs/ SHGs would help the mission to initiate intervention through forging partnerships at the state level with potential CSOs. Blocks with good CSOs/ high number of quality SHGs may also be given priority. Geographical spread Similar to the case of selection of the district, the geographical spread of the area would also help in selection of the block. A high geographical spread would mandate the selection of block to ensure the complete coveragee of the block within the project period. Based on the scoping exercise and after confirmation of the findings by the DPCU/ DMMU, the DPCU would take the final decision regarding the selection of the Block. Similarly, the selection of the villages would be taken by the BPIU/ /BMMU. Figure 7. 1 Framework for Project Interventions 152

165 7.4 Project Cycle in a Village and Block In a Typical Intensive Block The core strategy of the programme is to build vibrant and bankable women based community institutions in the form of SHGs, who through member savings, internal loaning and regular repayment become self-sustaining organizations over a period of time. The groups formed would be based on self-savings and inter-loaning and not on a single dose of CIF, given as subsidy. The primary level SHGs would be federated at the village, by forming VOs, next at a cluster level, to become membership based, social service providers, business entities and valued clients of the formal banking system. Such community organizations would also partner a variety of organizations for providing back end services to different market institutions such as correspondents for banks and insurance companies, procurement franchises for private sector corporations and delivery mechanisms for a variety of government programmes. This is shown in figure given below: The project design is based on the above strategy of building a multi-tiered, self-sustaining, model of community based institutions who manage their own development processes. The project strategy is therefore phased in a manner of first horizontally building up a very large number of primary level women based SHG of rural poor. This will be done through a saturation approach in the six chosen districts. Because of the extreme poverty levels in Bihar, the project will first capitalize these SHGs, through investing part of the Community Investment Fund (CIF), to supplement the savings of these groups. The groups will also be linked to the commercial banks for low cost loans. In the next phase, these primary level SHGs will be federated at the village level to form the second tier of the community institutions called the Village Organizations (VOs). The VOs will receive investments from the project, for further on lending to the SHGs and its members, through a second dose of the CIF to be used for assetisation, food security purchases, and retiring of high cost debts. A large part of this capital inflow is likely to be for meeting immediate consumption needs, particularly health and food purchase, given the extreme level of poverty in rural Bihar. This will ensure that assets and future cash inflows are not wasted on just repaying high cost debts to money lenders in the future. In the third phase, the VOs will be further federated to form higher level community institutions at the cluster and block levels. These apex community level federations will be responsible for enhancing livelihood activities in a comprehensive manner acting as microfinance institutions for lower level VOs, and economic institutions that take up specific income generating activities based on the assets created at the household level, such as animal husbandry, micro- agriculture etc. For the sustainability of lower level institutions both economic and social aggregation is essential. To ensure that assets of the poor is put to productive use and does not just lead to them procuring any asset or cash that is captured by the elite thereby not leading to their income streams increasing, A set of service providers will be positioned in the project, through partnerships, who provide forward linkages to markets for products and services on which the poor have a very high outflow today. The above sequential and interlinked project design, phased over the project period, will create a social and economic system controlled by the poor and leading to their own growth and sustainable development. 153

166 Figure 7.2 Project Cycle The project cycle at one village level is shown in figure given below: Entry & Rapport Building in Village Strategic Communicationn Identification of Poor Social Mobilization SHG Formation MP Phase 1 ICF First Tranche Readiness Filters VO Formation VO level MP Readiness Filter Community Procurement VO Level CIF Fiduciary & Social Accountability Leading to CLF Formation Livelihoods Linkages 154

167 7.5 Phasing (Intensive and Non Intensive) Table: 7.4 Intensive and Non Intensive Total Sl. District No. of Block Current Blocks Entry year Intensive Non Intensive Intensive Non Intensive Intensive Non Intensive Intensive Non Intensive Intensive Region 1 Banka Bhagalpur 2 Bhagalpur Bhagalpur 3 Jamui Bhagalpur 4 Lakhisarai Bhagalpur 5 Munger Bhagalpur 6 Arwal Gaya 7 Aurangabad Gaya 8 Gaya Gaya 9 Jehanabad Gaya 10 Nawada Gaya 11 Darbhanga Madhubani 12 Madhubani Madhubani 13 Samastipur Madhubani 14 Paschim Champaran (Betiah) Motihari 15 Purbi Champaran (Motihari) Motihari 16 Muzaffarpur Muzaffarpur 17 Sheohar Muzaffarpur 18 Sitamarhi Muzaffarpur 19 Vaishali Muzaffarpur 20 Nalanda Nalanda 21 Patna(Pali, Masauri, Vikram, Dhanarua) Nalanda 23 Araraia Purnia 24 Katihar Purnia 155

168 Total Sl. District No. of Block Current Blocks Entry year Intensive Non Intensive Intensive Non Intensive Intensive Non Intensive Intensive Non Intensive Intensive Region 25 Kishanganj Purnia 26 Purnia Purnia 27 Bhojpur Rohtas 28 Buxar Rohtas 29 Kaimur (Bhabua) Rohtas 30 Rohtas Rohtas 31 Begusarai Khagaria/ Saharsa 32 Khagaria Khagaria/ Saharsa 33 Madhepura Khagaria/ Saharsa 34 Saharsa Khagaria/ Saharsa 35 Supaul Khagaria/ Saharsa 36 Gopalganj Siwan 37 Saran Siwan 38 Siwan Siwan The scheme / project wise division of blocks are as under : Table: 7.5 Project wise Division of Blocks Sl. Scheme / Project No. of Blocks 1 Bihar Rural Livelihoods Project (BRLP) 42 2 Bihar Kosi Flood Recovery Project (BKFRP) 13 3 BRLP (Proposed Additional Financing) 60 4 BKFRP ( Phase II) 30 5 National Rural Livelihoods Project (NRLP) 64 6 National Rural Livelihoods Mission SGSY / NRLM (Rest Blocks) 325 Total

169 7.6 Results Framework Table : 7.6 Results Framework and Monitoring Programme Outcome/impact indicators for the PDO Development Objectives Use of result information 1. To reduce poverty by enabling the poor households to access gainful self-employment & skilled wage employment opportunities, resulting in appreciable improvement in their livelihoods on a sustainable basis, through building strong grassroots institutions of the poor The key results at the outcome level by EOP are: 1.25 Crore rural poor organized into CBOs 15 lakh job creation in formal/informal sector Rs.1 lakh is investment / family through grants, loan and self investment over 10 years Nearly 1 Crore households would be out of poverty 1.1 Sustainable community institutions of 1.25 crore targeted households established, catering to their livelihoods needs by EOP 1.2 Nearly 1 crore target households have achieved annual incremental income of Rs At least 90% of the targeted households have achieved food security 1.4 Service delivery of various government programmes (particularly, PDS, MNNREGS, primary health, social security, rural financing, rural infrastructure, agriculture and allied, etc.) improved significantly 9 against baseline situation, due to increasing demand by the CBOs. At an interval of every two years these indicators shall be reviewed with the help of objective data from MIS and independent evaluation report. Based on the review strategic change in programme design can be made. 1.5 Decreased Maternal Mortality Rate (MMR) and Infant Mortality Rate (IMR) by at least 50% against the baseline situation. 9 The word significantly shall be replaced by a quantitative value after baseline survey. 157

170 Intermediate results by component Result indicators for each component Use of result monitoring Component : 1: Social Inclusion & Institution Development 1.1 Formation of self reliant and inclusive community institutions of women At least 1.25 Crore targeted 10 rural households of Bihar organized into SHGs and represented in other Community Based Organizations (CBOs). SHGs VOs CLF BLF At least 80% of the identified SC /ST/vulnerable households are covered in the fold of CBOs; 50% of the CBOs have leadership from SC/ST/Vulnerable group 11 These indicators shall be reviewed at least annually and consequently the strategies of community mobilization and capacity building would be modified if the targeting, inclusiveness and effectiveness of CBOs are found to be less than expected At least 80% of all types of CBOs are functionally effective and self managed 12 by the time it attends three years of age Component : 1: Social Inclusion & Institution Development At least 70% of SHG members are actively engaged in gainful livelihood activities at any given time At least Activity Based Producers Groups developed; > 80% of their business entity have indicated financial viability by the age of three years At least 75% of all concerned CBOs have accessed and managed funds 13 as per micro plan. 10 from SC, ST, minority, EBC, BC, vulnerable 11 At least one of the leaders is from the SC, ST, Vulnerable group 12 Functionally effective and self managed shall be defined by a set of criteria by the SRLM-Bihar 13 CIF of the programme 158

171 Intermediate results by component Result indicators for each component Use of result monitoring 1.2 Development of community professional & community resource person At least 3 lakh Community members developed as Community Professional providing services to CBOs; and at least 25 % of them attaining self sustainability At least CRPs developed from the local community members providing technical services to CBOs and individuals on service charge basis Component : 2: Financial inclusion 2. Establishment and use 2.1 At least Rs Lakh savings mobilized by SHG members of Community Investment Fund, mainstream 2.2 At least Lakh leveraged from mainstream financial Institutions by financing resulting in the CBOs formed in the programme reduction of vulnerability and enhancement of 2.3 At least 70% of the SHGs and the VOs are maintaining on-time repayment income rate at any given time 2.4 At least 80% of the households used funds - accessed from programme funds, bank financing & other sources, for productive purposes and generating sustained income at any given time 2.5 At least 80% of SC/ST /vulnerable households have accessed funds and credits from CBOs at any given time. 2.6 At least 50% of the targeted households have retired high cost debts from informal sources 2.7 At least 80% of the SHG households are linked with Life / Non Life Insurance; on-time claim settlement is 80-90% of the claims submitted, at any given time. Annual review of this indicator shall be done to incorporate any changes in the strategy if desired result is not achieved. The model of self sustaining shall be monitored closely. If this is unattainable then change in policy would be required. The indicators of 2.1 to 2.7 (except 2.6) shall be reviewed at least on six monthly basis to incorporate changes in the implementation strategies in case of not achieving desired results. The 2.6 shall be reviewed at least after 4-5 years of interventions in an area. The reasons for achieving / not achieving desired results shall be analyzed and incorporated in the strategies. 2.8 Bank Mitra Help Desk is set up in at least 80% of the bank branches of the project area where the branch has at least 50 SHG accounts 14 Self sustaining is defined as CBOs either fully or partly bearing the cost of CPs 159

172 Intermediate results by component Result indicators for each component Use of result monitoring Component -3 : Livelihood Promotion Vulnerability Reduction Awareness about and access to health, education, social welfare schemes and PDS increased by 50% against the baseline situation 3.1 Vulnerability related to livelihood of target population reduced At least 80% of the food insecure families have accessed either or all of the following benefits access to Food Security Fund, access to grain bank, access to PDS as per entitlements At least 80% of the targeted households received wage employment for at least 50 days under MGNREGA At least review on six monthly basis shall be done to incorporate changes in the implementation strategies in case of not achieving desired results At least 90% of the eligible households accessed at least any one of the entitlements schemes of social security (viz. old age pension, widow pension, etc.) At least 80% of the Children below 5 years of the targeted households enrolled and taking services from Aanganwadi Center (Child Care centre) Reduction in health expenditure by 50% for the households those who have accessed health services by 5 th. year of intervention 160

173 Intermediate results by component Livelihood Enhancement 3.2 Sustainable improvement in the livelihood of targeted households Result indicators for each component At least 70% of the targeted households achieved and sustained an incremental annual income of Rs. 80,000 to 1,20, through various interventions Comprehensive Agriculture intervention- 65 lakh HH Dairy Lakh HH Poultry 25 Lakh HH Goatry 25 Lakh HH Fishery 3 Lakh HH Bee keeping 6.25 lakh HH Non-farm Lakh HH Skill building for job market 15 lakh At least 100 business linkages established in different value chains and each business entity reached an annual turnover of Rs 1 crore by end of 3rd year At least 10 lakh jobs created for youth through placement in formal and informal sectors facilitated by the programme At least 5 lakh jobs created for youth through direct skill enhancement by the project Use of result monitoring shall be reviewed in the interval of three years through data obtaining from MIS and independent evaluation. The interventions may be revised based on the analysis shall be reviewed at least once in six months and required change shall be made in the implementation strategies , & shall be reviewed at least yearly for necessary change in the strategies At least 100 partnerships/contract with technical service providing agencies in different sector of livelihood implemented 15 depending upon the varying level of investments and vulnerability reduction measures 161

174 Intermediate results by component Result indicators for each component Use of result monitoring Component-4: Project Management % of the sanctioned posts are filled at any given time 4. Well managed project at the state, district and block levels 4.2 Programme Monitoring and Learning System established, measured by : (a) evidence that data from MIS and other qualitative assessments are used in the decision making by the block, district and state level management unit. (b) evidence that participatory monitoring and learning system is established at the village level resulting in improved governance, transparency and accountability. (c) standardized review mechanism established at all levels (viz. periodic review, review based on objective data, follow up on agreed actions, etc.) 4.3 Programme implementation procedures and agreed business standards 16 are followed in 80% cases at any point of time 4.1. Shall be reviewed constantly and required change shall be made in the strategies. This is critical indicator for the success of the programme Rest of the indicators shall be reviewed annually / six monthly for required change in the implementation strategies. 4.4 Programme HR system is established and reviewed annually. 4.5 On-time settlement of the staff incentives, entitlements as envisaged in the HR manual 16 Assuming that the project shall develop business standards for each of the service delivery areas viz. CBO formation and development, sub-project appraisal, fund disbursement, audit & other statutory compliances, grievance readdressal, RTI compliance, etc. 162

175 Intermediate results by component Result indicators for each component 4.6 Programme communication strategy developed and implemented, measured by- (a) conduct of annual learning workshops, (b) periodic publication of best practices, (c) establishment of peer learning mechanism, (d) web based registration of complaints and status report on compliance as a measure to promote transparency, accountability and responsiveness. Use of result monitoring 4.7 On-time compliance of statutory requirements, RTI compliance, grievance readdressal, etc. 4.7 Policy and strategy relating to partnership with CSOs and private sector developed and implemented by 2 nd. year of the programme (measured by no. of MoUs signed and implemented) 4.8 Strategies for convergence with line depts., Government programmes, financial institutions, etc. developed and implemented by 2 nd. Year of the programme. (measured by no. of MoUs signed and implemented) 163

176 Table : 7.7 Year wise phasing of indicators for monitoring Year end target values Data Collection & Reporting Outcome Indicators related to PDO Baseline Till Mar,2011 Y Y Y Y Y Y Y Y Y Y Y Frequency & Reports Data Collection Instrument Responsibility 1.1 Sustainable community institutions of 1.15 crore targeted households established, catering to their livelihoods needs by EOP To be inclu ded after BLS see 1.1 of Com-1 for year wise CBO formation target. Sustainability indication of CBOs to monitor from year-5 Mid term & EOP Impact evaluation External agency commissi oned by GoI 1.2 Nearly 1 crore target households have achieved annual incremental income of Rs Do Do Do Do 1.3 At least 90% of the targeted households have achieved food security 1.4 Service delivery of various government programmes (particularly, PDS, MNNREGS, primary health, social security, rural financing, rural infrastructure, agriculture and allied, etc.) Improved significantly against baseline situation, due to increasing demand by the CBOs. 1.5 Decreased Maternal Mortality Rate (MMR) and Infant Mortality Rate (IMR) by at least 50% against the baseline situation. Do % 40 % 50 % 70 % 80 % 90 % Do Do Do Do to be monitored from year -3 onwards Do Do Do Do Do Do Do

177 Outcome Indicators related to PDO Year end target values Data Collection & Reporting 165 Baseline Till Mar, Y Y Y Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10 Frequency & Reports Data Collection Instrument Responsibility Result Indicators for each component Component : 1: Social Inclusion & Institution Development At least 1.15 Crore targeted rural households of Bihar organized into SHGs and represented in other Community Based Organizations (CBOs). (a) Formation of SHG Monthly MIS M&L Unit (b) Formation of Village Organisation (c) Formation of CLF (d) 534 -Formatrion of BLF At least 80 % of the identified SC /vulnerable households are covered in the fold of CBOs At least 80% of all types of CBOs are functionally effective and self managed at the end of 3 years of age 80 % 80 % 80 % Annually MIS & qualitative studies M&L unit, external study 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % Annually qualitative studies external study

178 Year end target values Data Collection & Reporting Outcome Indicators related to PDO Baseline Till Mar,2011 Y Y Y Y Y Y Y Y Y Y Y Frequency & Reports Data Collection Instrument Responsibility At least 80% of all types of CBOs are functionally effective and self managed at the end of 3 years of age At least 70% of SHG members are actively engaged in gainful livelihood activities at any given time At least Activity Based Producers Groups developed; > 80% of their business entity have indicated financial viability by the age of three years. 80 % 70 % 80 % 70 % % 70 % % 70 % % 70 % % 70 % % 70 % % 70 % % 70 % 80 % 70 % 80 % 70 % Annually Annually Six monthly qualitative studies qualitative studies MIS & qualitative studies external study external study M&L unit, external study At least 75% of all concerned CBOs have accessed and managed funds as per micro plan Six monthly MIS M&L unit At least 3 lakh Community members developed as Community Professional providing services to CBOs; and at least 25 % of them attaining self sustainability At least CRPs developed from the local community members providing technical services to CBOs and individuals on service charge basis Six monthly Six monthly MIS & qualitative studies MIS & qualitative studies M&L unit, external study M&L unit, external study 2.1 At least Rs Lakh savings mobilised by SHG members Quarterly MIS M&L unit 166

179 Year end target values Data Collection & Reporting Outcome Indicators related to PDO Baseline Till Mar,2011 Y Y Y Y Y Y Y Y Y Y Y Frequency & Reports Data Collection Instrument Responsibility Component : 2: Financial inclusion 2.2 At least Rs Lakh leveraged from mainstream financial Institutions by the CBOs formed in the programme Quarterly & six monthly MIS & qualitative study M&L unit & external study 2.3 At least 70% of the SHGs and the VOs are maintaining on-time repayment rate at any given time 70 % 70 % 70 % 70 % 70 % 70 % 70 % 70 % 70 % 70 % 70 % Quarterly & six monthly MIS & qualitative study M&L unit & external study 2.4 At least 80% of the households used funds - accessed from programme funds, bank financing & other sources, for productive purposes and generating sustained income at any given time 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % annually qualitative studies External study 2.5 At least 80% of SC/ST /vulnerable households have accessed funds and credits from CBOs at any given time. 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % annually qualitative studies External study 2.6 At least 50% of the targeted households have retired high cost debts from informal sources 10 % 20 % 30 % 40 % 50 % once in three yers qualitative studies External study 2.7 At least 80% of the SHG households are linked with Life / Non Life Insurance; on-time claim settlement is 80-90% of the claims submitted, at any given time. 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % Quarterly & six monthly MIS & qualitative study M&L unit & external study 167

180 Year end target values Data Collection & Reporting Outcome Indicators related to PDO Baseline Till Mar,2011 Y Y Y Y Y Y Y Y Y Y Y Frequency & Reports Data Collection Instrument Responsibility 2.8 Bank Mitra Help Desk is set up in at least 80% of the bank branches of the project area where the branch has at least 50 SHG accounts Quarterly MIS M&L unit Component -3 : Livelihood Promotion (Vulnerability Reduction) Awareness about and access to health, education, social welfare schemes and PDS increased by 50% against the baseline situation 50 % 50 % 50 % 50 % 50 % 50 % 50 % 50 % once in three yers qualitative studies External study At least 80% of the food insecure families have accessed either or all of the following benefits access to Food Security Fund, access to grain bank, access to PDS as per entitlements At least 60% of the targeted households received wage employment for at least 50 days under MGNREGA 5 % 10 % 20 % 20 % 30 % 30 % 50 % 40 % 60 % 50 % 80 % 60 % 80 % 70 % 80 % 80 % 80 % MIS - six monthly ; qualitative studies - once in three years MIS & qualitative studies M&L unit and External study At least 90% of the eligible households accessed at least any one of the entitlements schemes of social security (viz. old age pension, widow pension, etc.) 5 % 15 % 25 % 35 % 45 % 55 % 65 % 75 % 85 % 90 % qualitative studies - once in three years qualitative studies external study 168

181 Year end target values Data Collection & Reporting Outcome Indicators related to PDO Baseline Till Mar,2011 Y Y Y Y Y Y Y Y Y Y Y Frequency & Reports Data Collection Instrument Responsibility At least 80% of the Children below 5 years of the targeted households enrolled and taking services from Aanganwadi Center (Child Care centre) Reduction in health expenditure by 50% for the households those who have accessed health services by 5 th. year of intervention Component-3 : Livelihood Promotion (Livelihood enhancement) At least 70% of the targeted households achieved and sustained an incremental annual income of Rs. 80,000 to 1,20,000 through various interventions 5 % 10 % 15 % 25 % 35 % 10 % 45 % 50 % 20 % 55 % 50 % 30 % 60 % 50 % 40 % 70 % 50 % 50 % 80 % 50 % 60 % 50 % 70 % qualitative studies - once in three years qualitative studies - once in three years qualitative studies - once in three years qualitative studies qualitative studies qualitative studies external study external study external study Comprehensive Agriculture intervention Monthly MIS M&L unit Dairy Monthly MIS M&L unit Poultry Monthly MIS M&L unit 169

182 Outcome Indicators related to PDO Year end target values Data Collection & Reporting 170 Baseline Till Mar, Y Y Y Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y- 10 Frequency & Reports Data Collection Instrument Responsibilit y Goat rearing Bee keeping Monthly MIS M&L unit Monthly MIS M&L unit Fishery Non-farm (Arts & Crafts) Monthly MIS M&L unit Monthly MIS M&L unit Non-farm (others) At least 100 business linkages established in different value chains and each business entity reached an annual turn over of Rs 1 crore by end of 3rd year Monthly MIS M&L unit qualitative studies - annually qualitative studies external study

183 Year end target values Data Collection & Reporting Outcome Indicators related to PDO Baseline Till Mar,2011 Y Y Y Y Y Y Y Y Y Y Y Frequency & Reports Data Collection Instrument Responsibility At least 10 lakh jobs created for youth through placement in formal and informal sectors facilitated by the programme Monthly ; & annual qualitative study MIS & qualitative study M&L unit ; and external study At least 5 lakh jobs created for youth through direct skill enhancement by the programme At least 100 partnerships/contract with technical service providing agencies in different sector of livelihood implemented Component-4: Project Management % of the sanctioned posts are filled at any given time 4.2 Programme Monitoring and Learning System established, measured by : (a) Evidence that data from MIS and other qualitative assessments are used in the decision making by the block, district and state level management unit. (b) evidence that participatory monitoring and learning system is established at the village level resulting in improved governance, transparency and accountability. 80 % % % % % % % From third year onwards annual qualitative study qualitative study external study 80 % 80 % 80 % Monthly ; & annual qualitative study MIS & qualitative study M&L unit ; and external study Monthly MIS M&L unit 171

184 Year end target values Data Collection & Reporting Outcome Indicators related to PDO Baseline Till Mar,2011 Y Y Y Y Y Y Y Y Y Y Y Frequency & Reports Data Collection Instrument Responsibility (c) standardized review mechanism established at all levels (viz. periodic review, review based on objective data, follow up on agreed actions, etc.) 4.3 Programme implementation procedures and agreed business standards are followed in 80% cases at any point of time 4.4 Programme HR system is established and reviewed annually. 4.5 On-time settlement of the staff incentives, entitlements as envisaged in the HR manual 4.6 Programme communication strategy developed and implemented, measured by - (a) conduct of annual learning workshops, (b) periodic publication of best practices, (c) establishment of peer learning mechanism, (d) web based registration of complaints and status report on compliance as a measure to promote transparency, accountability and responsiveness. 4.7 On-time compliance of statutory requirements, RTI compliance, grievance readdressal, etc. 50 % 50 % 80 % 80 % Fron 2nd. year onards 80 % 80 % 80 % Year-1 onwards Year-1 onwards Y-2 onwards On-time 80 % 80 % 80 % annual qualitative study annual qualitative study annual qualitative study annual qualitative study annual qualitative study annual qualitative study qualitative study qualitative study qualitative study qualitative study qualitative study qualitative study external study external study external study external study external study external study 172

185 7.7 Targets Table : 7.8 Targets Particulars Existing No of DPCU Cumulative DPCUs No of Blocks Cumulative Blocks No of SHGs Cumulative SHGs No. of Vos Cumulative Vos No. of CLFs Cumulative CLFs No. of BLFs Cumulative BLFs Savings Mobised (million) Cumulative Savings (milion) CID 3.5 Crore / block Cumulative CID (million) Rs. 50k / group (million) Cumulative ICF (million)

186 Particulars Existing VO Level CIF (HRF, FSF, LHF, Jobs) (miilion) Cumulative VO Level CIF (million) Total CIF (million) Total Cumulative CIF (million) No of SHGs Credit linked (1st tranche) Cumulative no. of SHGs Credit Linked (1st tranche) Amount of Credit Linkage (1st tranche) (miilion) Cumulative Amount of Credit Link 1st Tranche (million) No of SHGs Credit linked (2nd tranche) Cumulative no. of SHGs Credit Linked (2nd tranche)

187 Particulars Existing Amount of Credit Linkage (2nd tranche) (miilion) Cumulative Amount of Credit Link 2nd Tranche (million) STAF (Million) Cumulative STAF (Million) Skill Development & Innovation Cumulative Skill Development & Innovation Project Management (Million) Cumulative Project management (Million)

188 7.8 Project Costing Table : 7.9 Costing of NRLM in Bihar Costing of NRLM In Bihar to Year 0 to Year 10 (Rs. In Crore) including the exisitng projects Particular Upto Total % Community Institution Development Formation & Development of CBOs Capacity building of CBOs Cost of Non Intensive blocks Community Investment Fund Sub-Total CIF - 1st Tranche - ICF CIF - 2nd Tranche - ICF II CIF - 3rd Tranche : Food Security Asset & Income Generation (Producers' Groups/ EAG Groups) Piloting Social Risk Management Interventions Skill Building (for employment) Sub-Total Special Technical Assistance Fund Technical Assistance Skill Enhancement & Innovation Sub-Total

189 Resource Planning Upto Total Project Management Fund Monitoring, Evaluation & Communication Salary Other operating Expenditure Sub-Total Grand Total Total Requirement Less : Existing World Bank Projects (BRLP & BKFRP) Requirement for NRLM after deducting existing Projects % GoI Share for NRLM in Bihar A. National Rural Livelihoods Project (NRLP) B. SGSY / National Rural Livelihoods Mission (NRLM) % GoB Share for NRLM in Bihar A. BRLP Additional Finance from WB (90% Loan, 10% GoB) B. BKFRP Additional Finance from WB (85% Loan, 15% GoB) C. State Share for NRLP D. Rest State Share for SGSY / NRLM

190 Table : 7.10 Major Components Of Project Budget Costing of NRLM In Bihar to Year 0 to Year 10 (Rs. In Crore) including the exisitng projects Particular Total % Community Institution Development Formation & Development of CBOs Capacity building of CBOs Cost of Non Intensive blocks Sub-Total Community Investment Fund CIF - 1st Tranche - ICF CIF - 2nd Tranche - ICF II CIF - 3rd Tranche : Food Security Asset & Income Generation (Producers' Groups/ EAG Groups) Piloting Social Risk Management Interventions Skill Building (for employment) Sub-Total Special Technical Assistance Fund Technical Assistance Skill Enhancement & Innovation Sub-Total Project Management Fund Monitoring, Evaluation & Communication Salary Other operating Expenditure Sub-Total Grand Total Table : 7.11 Resource Planning Resource Planning Total Total Requirement Less : Existing World Bank Projects (BRLP & BKFRP) Requirement for NRLM after deducting existing Projects % GoI Share for NRLM in Bihar A. National Rural Livelihoods Project (NRLP) B. SGSY / National Rural Livelihoods Mission (NRLM) % GoB Share for NRLM in Bihar A. BRLP Additional Finance from WB (90% Loan, 10% GoB) B. BKFRP Additional Finance from WB (85% Loan, 15% GoB) C. State Share for NRLP D. Rest State Share for SGSY / NRLM

191 Chapter - 8 Support Structure Bihar Rural Livelihoods Promotion Society (BRLPS) is an autonomous body under the Department of Finance, Govt. of Bihar, registered under Society Registration Act, XXI- 1860, has been designated as State Rural Livelihoods Mission, Bihar under the Framework of National Rural Livelihoods Mission to enable 1.25 crore rural poor and poorest of the poor families of Bihar to come out of poverty with enhanced quality of life through mobilizing poor families into self-reliant institutions and promoting sustainable livelihoods as well as strengthening service delivery mechanism. BRLPS had already framed Human Resource Manual which has been improved over the years of experiential learning. This HR manual would further be modified and enlarged to meet the requirements of SRLM under the framework of NRLM. Bihar Rural Livelihoods promotion Society (State Rural Livelihoods Mission, Bihar) is led by its General Body, from which a more functional Executive Committee has been formed for taking all policy level decisions and advising the functionaries of the society. Representatives from the Government of Bihar, Banks, Development institutionss and civil society form the Executive Committee of the Society. The structural arrangement for implementing the NRLM by scaling up the JEEViKA model of poverty alleviation throughout the State of Bihar in phased manner would be through its threee tier structural unit i.e. State Project Management Unit (SPMU), District Project Coordination Unit (DPCU) and Block Project Implementation Unit (BPIU). Figure 8. 1 Support Structure 179

192 8.1 SPMU: State Project Management Unit The State Project Management Unit headed by Mission Director cum Chief Executive Officer and will proactively work for designing policy, planning interventions and operational strategies for the Program under the guidance of its Executive Committee. Besides this, SPMU will work for the following: - Foster collaborations with external agencies, Government departments and other stakeholders through regular interface, meaningful linkage and purposeful dialogues. Setting up team within organization and build up their capacity for effective functioning and implementation the Mission s activities. Design and operationalize Project Management System including Program Monitoring System, Financial Discipline, Human Resource Management and Administrative Control within the Project. Lobbying and policy advocacy on pro poor issues and coordinating with relevant Government as well as line departments and pursuing the same. Constituting effective and functional group i.e. advisory/tasks/research/study group as and when required to conduct evaluation and review of the progress. Design communication policy, disseminate learning on various platforms, preparing relevant documents, progress reports and enabling favorable environment for various convergences. Developing training design, relevant materials, conduct required training exposure, workshop, experience sharing/cross learning events and institutionalize learning system within organization. Institutionalize learning system within the organization and usher the culture of learning organization. Designing and identifying scope of partnership with service provider agencies related to need based and emerging livelihoods interventions, Managing and coordinating work with them. Identify and initiate knowledge gap studies, special studies on emerging issues and draw its implications for improvement of quality of the program. Have overall responsibility and authority to decide the ways for implementation of the Program under the guidance of the Executive Committee. 180

193 Figure : 8.2 Support Structure at SPMU (State Project Management Unit) Mission Director cum Chief Executive Officer Additional Chief Executive Officer P & C cell with OSD +3-4 Personnel C O R E T H E M A T I C IB & CB Micro Finance Com. A/c Social Dev. Health & Nutrition Farm Off-farm SPM & 3 PMs (IB, CB, TLC) SPM & 3 PMs (MF & MI) SPM & PM (Com. A/C) SPM & 2 PM (SD & Entitlement) SPM & PM (Health & Nutrition) SPM & 2PMs (LH, Mkt. & Innovtn) SPM & PM (Off- farm) PM & 3 PMs (HRD, SLM, P&A) SPM & 2 PMs (Mont., Evl. & Lern.) SPM & PM (MIS) SPM & 2 PMs (IEC, Doc. Ex Rel) PM (Resource Cell) Administrative Officer Proc. Spl. & Proc. Officer HRM M E & L MIS Communication Resource Cell Administration Procurement S U P P O R T T H E M A T I C U N I T Non-farm Jobs SPM & PM (Non- farm) SPM & PM (Jobs) CFO & FO Finance 4 FMS & 4 AFMs Fin. Mgmt.Team U N I T Support Teams for Thematic Unit: Seven staff with IT Background to provide technical support to MIS, M & E, HR, Communication, SA DA and maintenance. 14 Nos. of Project Associates to support thematic units. 10 Accountants & Cashier to support Finance Unit, 8 nos. of Office Assistants to support SPMU Office/ Personnel & Administration. 9 miscellaneous staff for providing services such as Personal Assistants, Designer cum DTP Operator, Store Keeper, Logistic Assistants and Receptionist. Apart from the SPMU structure, there would be Four Regional Project Managers, each supporting a cluster of 8-10 Districts and will be positioned at a Nodal DPCU. 181

194 Table: 8.1 Key Roles and Responsibilities of Positions at SPMU Position Key Roles & responsibilities Mission Director cum Chief To lead the State Rural Livelihoods Mission s program with Executive Officer support of Project management team at State unit, under the guidance of Executive committee. Planning, execution and monitoring of all programs. Guiding State project team in designing various policy frame work, strategy to ensure rolling out of all organisational policies and systems across the state to deliver quality results. Additional CEO To provide support to Mission Director-cum-CEO in the discharge of his responsibilities, monitoring district and block units, efficiency of delivery mechanism and qualitative results. Planning and Coordination Cell consisting of Officer on Special Duty & 3-4 Youth Professionals supporting CEO Regional Project Manager Chief Finance Officer State Project Manager- Core Thematic Unit (Institution Building & Capacity Building, Microfinance, Community Finance, Health & Nutrition, Social Development, Farm, Off Farm, Non-Farm and Jobs) State Project Manager- Support Thematic Unit: (HRM, Finance, Administration, Communication and Procurement) Finance Officer Team of Finance Managers To provide support to Mission Director/CEO in managing program, external affairs within state, convergence with Govt. Line departments and other related matters within the Program and to provide support in regular administrative matters from DPCU including compilation of information, data analysis, preparation of various reports and provide required support in decision making. To support DPCUs in maintaining quality of community institutions, business processes, spear head teams, thematic teams and qualitative working of DPCUs and BPIUs. Heading the Finance unit of the program with a team of Finance Officer and FMTSC, accountants and other support staff at SPMU responsible for the both fiduciary governance of the Project funds as well as introduction of best business process to ensure timely fund flow to all the units/offices and the community organizations. Designing various policy frameworks related to the concerned thematic area and intertwining/interlinking them with other related thematic programs as per their requirement. Developing business plan, standard business processes, ensuring its monitoring and progress review for need based change and effective roll out of the concerned thematic program in sync with other domain. Designing and developing policy frameworks, standard business process related to HRM, Finance, Admin, Communication & Procurement to support and coordinate the SPMU core program team in rolling out the thematic program operations effectively and achieving the quality results timely. To support CFO in managing, designing and strengthening financial system and fund monitoring system for the both fiduciary governance of the Project funds as well as introduction of best business process and service standard to ensure timely fund flow to all the units/offices and the community organizations. To support all units in the management of finance and Accounts including management audit, audit compliance, financial reporting, best financial management practices etc. One team will handle a cluster of 8-10 districts. 182

195 Position Project Manager- (IB, CB, TLC, MF, MI, Com. Accounts, SD, Entitlements, Health & Nutrition, Agri., Mkt. & Innovation, Off Farm, Non- Farm, Jobs, HRD, SLPM, Personnel Administration, MIS, Monitoring, Evaluation & Learning, IEC, Doc. & External Relation) Project Manager- Resource Cell Team of Program Associates for thematic units: (IB&CB, MF, SD, HRM, Livelihoods, Non-Farm, Off Farm, CF, Jobs, M & E, MIS, and Communication. Key Roles & responsibilities To support concerned SPMs in designing various policy frameworks and developing standard business plan related to interventions and program support in sync with other domain requirements. To roll out various required thematic interventions as well as support the District team in conducting staff inductions/trainings/cb programs related to the concern domain/thematic area for staff as well as community cadre timely for quality program interventions. To plan and extend all due support related to required thematic domain for external exposure, staff induction, inter-state inductions/immersion, workshops, Coordinate with all thematic experts and Facilitate the visiting officials in providing resources and liaison and logistic support to the concerned. To assist and support thematic consultants (SPM & PMs) in executing their thematic responsibilities. To collect data, information, conduct analysis, and studies regarding interventions, compiling reports and book/record keeping. Coordination with other Units at SMMU. Team of ITes staff Designing and implementation of system related to development work and web based MIS system and data based software. To use Information technology methods related to monitor, obtain, analyze and data transfer from MIS. Maintenance of machines and equipment. To administer the data of MIS, compiling and analyzing the reports for the purpose of monitoring and evaluation team for learning and further needful action. Team of Accountants To maintain books of account at SPMU level and regularly updating them. Responsible for providing all secretarial assistance to block staff and maintain all official records. Responsible for channeling upward and backward official communication. Team of Office Assistant To extend all secretarial assistance to Officers/Managers at SPMU. Largely will be looking after all communication, office record keeping, compiling of project information, maintaining records related with programmatic, administrative and HRM affairs and acting as nodal person for channeling communication to/from SPMU. Pool of Miscellaneous Staff- Designer, Computer operator, PA, Store Keeper etc. Responsible for designing and entry work regarding Publishing Materials, viz. QPR & Annual Reports, Brochures, Pamphlets, Studies, IEC Materials, drafting letters and other documents required at SPMU level. Also store keeping, personal assistance, receiving visitors etc. 183

196 8.2 DPCU: District Project Coordination Unit The District Project Coordination Unit will be operational at District level. The role of DPCU will be to coordinate, implement and manage mission activities (as per overall activity plan spread over different phases).the district unit will be responsible for the following functions: Preparing annual action plan of the Mission/program activities and ensure timely accomplishment of the same. Ensure operationalization of all the policies under financial, administrative, procurement and HRD guidelines at District level. Conducting periodic reviews of program progress and disciplined in communicating report to SMMU/SPMU and District administration as and when required. Conducting capacity building periodic reviews as well as other related activities for district and Block staff and community cadre. Establishing strong linkages with district government offices, line development departments, district resource agencies and eminent public representatives for garnering required support for success of the project. Monitoring and supervising Community Investment Fund routed to poor through BLF/CLF/VO or by Block unit of project. Documenting learning of the project and disseminating the same on all relevant platform and with SPMU as well district administration. Extending handholding to block staff as and when required, facilitating block team for building team there and also being responsible for furnishing MIS information to SMMU/SPMU on time. Figure : 8.3 Support Structure at District Project Coordination Unit: DPCU District Project Manager Mgr. - IBCB. & 3 TO Theme Based Manager (Farm) Manager HR & Administration Manager (MF & Micro Insurance) Manager- (Dairy & Livestock) Manager (M & E) Manager Bank Linkage Manager-Non Farm & Micro Enterprise Manager (Communication) Manager Social Development Manger - Jobs Finance Manager 184

197 Table: 8.2 Key Roles and Responsibilities of Positions at DPCU Position Key Roles & responsibilities District Project Manager Manager- IB & CB Training Officer Finance Manager Thematic Managers (SD, LH, MF, COM, JOBs, M&E, Bank Linkage) Manager- HR & Admin. Accountant Office Assistant Computer Operator Data Entry Operator S/he will be responsible to lead the Program at the district level, management and administration of staff. Planning, execution and monitoring of all program activities and guide the block units within the district to deliver quality results. Manage partnerships at district level including liaise with district administration and ensure rolling out of all organisational policies and systems across the district. S/he will be responsible for assessment of the training needs of institutions, to plan, execute and monitor all the training activities and guide the block units within the district to deliver quality results. Manage partnerships at district level including liaise with district administration and ensure rolling out of capacity building policies and systems across the district. S/he will be responsible to support the IB & CB in strengthening the thematic support requirement and conduct the need based training, assessing impacts of training and follow ups at the Block level and to impart and ensure effective and quality training to staff and community Cadre. To manage smooth functioning of all financial and administrative systems in Block units and the District Unit. To manage and monitor flow of Project/program funds. Periodic financial reporting to the State unit and coordinating with internal auditors. Guide and train Block and district level accountants in proper book keeping & accounting. Planning and executing concerned thematic interventions and managing partnership activities of the project at district level and provide inputs to the block teams for related interventions. To assist the District Team in planning concerned thematic area i.e. livelihoods, microfinance and social development, Jobs, Communication, M & E, Bank linkage, CIF activities in the District. To manage smooth functioning of personnel and administrative systems at District and Block level. Ensure proper compliance of rules related to salary administration, all types of leaves, benefits, grievance Redressal, conduct of sensitization programmes on HR issues to keep staff well informed, updating staff positions, HR reports and all issues related to management of HR. To maintain books of account at DMMU level and regularly updating them. S/he will also be responsible for providing all secretarial assistance to block staff and maintain all official records. s/he will also be responsible for channeling upward and backward official communication. Extending all secretarial assistance to staff there with DMMU. Largely s/he will be looking after all communication, office record keeping, compiling of project information, maintaining records related with programmatic, administrative and HRD affairs and acting as nodal person for channeling communication to/from DMMU. Responsible for designing and entry work regarding various document & materials viz. Reports, Brochures, Pamphlets, case studies, IEC materials, drafting letters and other documents required at DMMU level. Responsible for data entry work regarding MIS, compiling data and preparation of reports required at DMMU level. 185

198 8.3 BPIU: Block Project Implementation Unit The Block Project Implementation Unit (BPIU) will be the key unit for implementing and managing the mission activity at the Block Level. The BPM will be the functional head of the BPIU supported by Area Coordinators and Community Coordinators and a minimum number of support staff. This will be the key unit of the project whose quality and effectiveness will determine how effectively the project rolls out in the field in partnership with the village communities. Primarily this unit will work as a mirror functional unit to the proposed Community Organization to be built up over the project period. Hence, one of major functions of BPIU will be to facilitate the formation and functioning of Block Level Federation. The block unit will facilitate a graduation process of community representatives who over the years take over completely the functions of the BPIU duly supported by Community Cadres. The BPIU will be responsible for the following functions: Functioning as capacity building unit for Community Institutions Organising target community into SHGs, Community Producer s groups and then into Village Organisations Building capacity of SHGs, Community Producer s Groups and Village Organisations. Conducting interface between the Banking system and community groups and facilitating bank linkages. Helping community institutions in preparing micro credit plan, getting their approval and ensure implementation. Facilitate community Institutions to activities. develop forward and backward linkages for livelihoods Conducting regular interface among BPIU, BLF/CLF, Banking System, Block Government officials and Panchayat representatives. Monitor channeling of CIF to SHGs/ VO/ BLF, community producers group Furnishing information through MIS and submitting progresss report to DPCU and SPMU. Figure : 8.4 Support Structure* at BPIU/ BMMU (Block Mission Management Unit) Block Project Manager Accountant 3 Area Coordinators Livelihoods Specialist 9 Community Coordinators Office Assistant Supported by Community Cadre at Village Level: CMs, BMs, BKs, CRPs, JRPs, VRPs & WOWs 186

199 Table: 8.3 Key Roles and Responsibilities of Positions at BPIU Position Block Manager Project Area Coordinator Livelihoods Coordinator/ Specialist Community Coordinator Accountant Office Assistant Key Roles & Responsibilities Team leader of BPIU managing a team of staff. Responsible for planning and execution of project activities at block level. To liaison with line Government departments, banking institutions, civil society organizations and other external agency for project purposes. S/he will responsible for nurturing block level federations and execute partnership activities of the project. Managing Initial Capitalization Fund (first tranche of CIF), community level training (village based scheduled non-residential training programme) and cross learning activities within block. Will be overall in-charge of finance and administrative functions of BPIU and responsible for up keeping of MIS as well as reporting to DPM. Responsible for executing specialist thematic function at block level and supporting community Coordinators in core IB functions i.e. SHG capacity building, nurturing and strengthening with coordination of field based activities at cluster level. As a specialist and nodal person for specific assignments which includes different livelihoods interventions, Micro Planning, Bank Linkages, Self sustained Community Institution Building, livelihood promotion and social development. The coordinate and roll out various livelihoods interventions i.e. Farm, Off Farm and Non-Farm with the active involvement of the VO s in conjunction with the AC, CC s and specialized community cadre for each of the intervention. Training and developing a cadre of CRPs for scaling up in the various livelihood interventions. Responsible for producing Village Livelihood Plans (which details the current livelihoods of SHG HHs and potential opportunities) S/he will be responsible for formation, nurturing and strengthening of SHGs/Village Organisation, rolling out Micro finance, capacity building and training program, managing operations of community support cadres, facilitating micro plan and bank linkages in SHGs, supervising CIF utilization, loan repayment, conflict resolutions at community institution level. S/he will be responsible for maintaining books of account at BPIU level and regularly updating them. S/he will also be responsible for providing all secretarial assistance to block staff and maintain all official records. S/he will also be responsible for channeling upward and backward official communication. To extend all secretarial assistance to staff there with BPIU. Largely s/he will be looking after all communication, office record keeping, compiling of project information, maintaining records related with programmatic, administrative and HRD affairs and acting as nodal person for channeling communication to/from BPIU. 187

200 8.4 Projected Manpower Requirement Manpower requirement have been estimated on the basis of positions indicated at SPMU, DPCUs and BPIUs and coverage of districts & blocks in phases. The projection of manpower requirement is based on following strategy: SPMU and DPCU will continue to work throughout project period. Manpower planning and projection at BPIU: i. BPIU will work with 1 Block Project Manager, 3 Area Coordinator, 1 Livelihoods Specialist and 9 Community Coordinators supported by 1 Accountant and 1n Office assistant for three years. ii. From fourth year the BPIU unit would work with 1 BPM, 3 ACs, 1 LH Spl. and 6 CCs and the community cadre will take up the responsibilities of Community institutions. Three CCs would be relocated in new BPIU. iii. It is also expected that by this time The Village Organisation would become functional in operationalizing the core IB processes of the Project. iv. It is also expected that by this time some of the CLF/BLF would start functioning. v. From six year onwards the BPIU would work with 1 BPM, 3 ACs, 1 Livelihoods specialist and 3 CCs. Three CCs would be relocated in new BPIU. Based on these assumptions the total manpower in any given point of time will not exceed 7000 in numbers. The detailed calculation sheet is annexed. Table: 8.4 Year wise Manpower Requirement under NRLM/ SRLM at State, District and Block Level Year SPMU DPCU BPIU Total Total 9070 The number of manpower for recruitment is very large. However, there is conscious decision that manpower will not be recruited more than There is planned effort for role transition and relocation of staff from second year on ward from old block to new block. 8.5 HR Policy of BRLPS BRLPS would modify and enlarge its existing Human Resource Manual considering the vision, nature, scope and requirement of SRLM on the one hand and on the other hand, incorporating new learning and latest developments in the field of HR particularly practices in developmental sector. The proposed HR manual aims to create, nurture and maintain an environment where the human resources employed remain well integrated to the mission and vision of SRLM and motivated to excel in their performance and contribute towards achieving the overall goals of SRLM. This manual proposes relevant policy frameworks aimed to attract and retain good human resources in the Society and provides them opportunities to learn, improve professional skills & develop an experience following the principle of continuous improvement which is valued across the development sector. The HR manual of SRLM will lay down the policy, processes and rules for the following: Recruitment and selection 188

201 Induction of staff in the society Deputation, Hiring and outsourcing of employees Staff contract Policy Staff Compensation Package, Incentive and Rewards Staff Transfers policy, Travel Rules in the Society Leave Rules in the Society System of appraising capacity building needs of staff Performance Management System Grievance Redressal mechanism Disciplinary control system, Professional conduct as well as accountability of staff Recruitment and Selection Recognising the fact that manpower is the critical resource for the success of the project, BRLPS will put in place a robust recruitment and selection process which is transparent, and not only assesses knowledge and skill, but also the attitude of the person to explore whether s/he fits the profile of the job. The following methods will be applicable for recruitment and selection of all positions in the Society except the CEO and Addl. CEO. By recruiting individuals from the open market, through a competent external agency or by the Society itself. External Recruitment Agency may recruit about 80% of all categories of staff while the Society may recruit small number, if required. By selection of personnel on deputation from Government Departments and other Instrumentalities of Bihar State, Government of India or Nationalized Banks. By this way 2-4 % positions may be filled up. By outsourcing the services to an external agency for support services e.g. security, cleaning etc. By head hunting through HR Agencies or through generating applications by soliciting recommendations from staff, alumni s, and other Govt. Departments. By this method 1-2% position may be filled up. By direct campus recruitment from reputed rural development, rural management, management, social work, agriculture as well as other technical colleges and professional institutions. By this method 10-15% managerial positions may be filled up. Also special drive to recruit reserve category staff may be started to fill positions by campus recruitment from colleges/professional institutions of Bihar. By Internship method for Community Coordinators and Area Coordinators It will have well defined, transparent and accountable recruitment and selection systems, processes, eligibility criteria for different categories of staff, eligibility criteria for women for field level positions, selection methods, rules and other related issues including norms of the Government of Bihar for selection of Reserve Category of staff. The guiding principle for recruitment and selection process will be focussed on selecting competent individuals who have people centred attitude and their approach must reflect genuine thinking on working for the advancement of poor, ability to perform in team and commitment towards his/her job. In other words, to get the right fit between the job requirements and the candidates. 189

202 Procurement of external HR Agency for recruitment and selection will be done as per procurement norms of the National Rural Livelihoods Mission. The external HR agency while recruiting and selecting required manpower will follow the HR Policy and norms as prescribed in the HR Manual of SRLM. Service of individuals to man the positions like Driver, Guard, and Office Boy may be outsourced by entering into a contract with a single or multiple service provider agency/ies. The service provider/s could be empanelled by the project and their services sought as per the procurement norms of the SRLM Immersion and Induction All new staff joining the Society will undergo an extensive induction programme. The purpose of induction is to ensure the effective integration of staff into or across the organization for the benefit of both parties. The induction programme would provide all the information that new employees should know at the time of joining. It will be well structured and will slightly vary between managerial and field staff. The induction programme for managerial personnel will be organised at SMMU level and for field staff it will be organised at DMMU level. The framework of induction programme for new entrants will consists of the following modules with duration of 4-6 weeks: Mission, Vision, Objectives, Components, Support Structure, Financial Allocation, Phasing and other related issues of State Perspective and Implementation Plan Village immersion with defined tasks and assignments under Mentorship, followed by evaluation and presentation Structured Training on thematic interventions covering strategies, approaches, components of interventions, action plan and budget, implementation, monitoring, evaluation and learning. HR Manuals, Various provisions, Roles and Responsibilities and Performance Management Net working with Government Departments, PRIs, Partners and Stake holders Remuneration The salary and compensation package for different categories of staff will be designed keeping in mind those being offered in similar Projects in other states, and based on market realities to attract the best talent to the Project. The salary structure will have 2-3 slabs, each slab from lower to higher will have predefined qualifications and length of service experiences. It will have several components like basic salary, house rent allowance, communication allowance, conveyance allowance, child education allowance and provident fund contribution. The salaries applicable in similar ranks in BRLPS will continue in case of the NRLM. However, a salary revision may be effected in the initiation year of NRLM. They will further be revised from time to time considering the inflation and trends in similar projects in Bihar and other states. BRLPS aims to develop a policy which cares for the employee. This plays a critical role in building an image of a caring employer. Thus, apart from the salary, BRLPS will also extend the following benefits to its entire staff: Medical & Accident Support to staff in case of crisis arising while on duty Self-Learning reimbursement Learning Opportunities for Staff 190

203 Annual Increment (to compensate increased cost of living) Advance for purchase of Motorbike for Field Employees Advance for purchase of Laptop Performance management Performance management will be an integral part of a comprehensive human resource management strategy. Its objective is to maximize staff performance and potential with a view to attaining organisational goals and enhancing overall effectiveness and productivity. The strategy of the performance management system will be as follows: To enhance Performance of individuals and Teams participatory process of preparing Annual Action Plan and Budget along with monitoring and thus help achieve Project objectives. To enhance self-esteem of the staff by rewarding performance To identify gaps in performance and arrange need based development and training programmes for improving performance Appraisals and Incentives Performance appraisal and performance incentive will be the integral part of performance management system. The main features of appraisal process are listed below: All staff will be covered under the process who complete probation period successfully. This will be done once in a year Based on key performance areas and each area will be defined with certain key performance indicators. Key performance indicators will be linked with annual action plan and budget for State, District and Block. Individual performance will be measured in terms of achievements against planned targets Appraisal will be done at two levels Individual and Team. Individual level performance consists of self-appraisal with score/grade and supervisor appraisal with score/grade. The supervisor will also give his report on qualitative performance with score/grade. For team appraisal, a committee of three senior thematic managers from SMMU will be constituted who will visit district/blocks for appraisal of quantitative and qualitative performance of district and block as unit. The committee will appraise the unit with score/grade. All the four scores/grades are given predefined weightage and final grading is done. Performance incentive is paid to staff as per their grading up to 15% of basic salary paid Grievance Redressal BRLPS recognizes that grievances are incidental to the work environment and that they need to be positively addressed and resolved. A Grievance Redressal Mechanism will be formulated towards providing a channel to staff across all levels for expressing a grievance and seeking quick redressal. The important strategies for this will be as follows: Definition of grievance and its types A nodal person at BMMU, DMMU & SMMU to be nominated to receive grievance A Committee will be constituted at BMMU, DMMU and SMMU level to address grievances at certain interval regularly A grievance lodging register will be kept with the concerned nodal person. An acknowledgement of the lodged grievance would be issued (in writing or through mail) by him/her within an hour of 191

204 its receipt. There should be a separate minute s book with each of the committees where all proceedings of meeting among members would be recorded. The recommendation of the committee will be put on file for final decision by CEO Staff Learning and Capacity Building BRLPS recognises the importance of building the capacity of its staff from time to time in order to promote personal growth of the staff as well as improve the quality of work within the Project. A Capacity Building strategy will be put in place which would ensure that all staff operates at the optimal skill and knowledge levels as required by the Society. All staff will undergo the induction programme at entry level as well as various capacity building programmes designed for staff at various levels. These would include exposure visits to other similar Projects. Moreover, to focus on the growth of the individual, BRLPS would try and identify the strengths and the areas which could be further improved. These areas of growth would be identified from the following: The Performance Management including performance appraisal report Discussion with staff Training needs analysis Based on identified training needs result oriented training programmes will be developed and get it conducted by specialised Training and Development agency. State Project Manager-HR, State Project Manager-CB and Project Manager-SLPM will be responsible to implement staff learning and capacity building strategy. Considering the large number of managerial personnel under SRLM and non-availability of specialised agency for customised training/management development programmes, creating a training cell with specialised staff at SMMU may be desirable Space for HR in various formats and tenures Human Resource generally will be on full time basis with contractual period co-terminus with the period of the SRLM. However, proper ratio may be maintained for people on deputation, shortterm/long-term assignments, internship etc. to maintain deployment flexibility. 8.6 Administrative and Financial Rules Administrative and financial rules have already been framed and operational under the present rural livelihoods projects. They cover various aspects such as salary, increments, transfer, travelling, tour, termination benefits, devolution of authority and financial power etc. The existing HR manual and financial & Administrative Guidelines contain details of policies, processes and procedures as well as rules which will be modified by incorporating latest developments and requirements of SRLM. 192

205 Chapter - 9 Training and Capacity Building Strategy The National Rural Livelihoods Mission, a GoI supported programme with its key principle of Community Driven Development discusses about a new paradigm for rural development. The focus will be on organizing the rural poor into effective self-managed institutions which can leverage financial and livelihood resources and contributes to their sustainable development. In order to achieve this, it requires building the skills and capacities of the poor. It also involves capacity building of the project staffs, community institutions, community cadre, support organizations and other stakeholders like PRIs, bank officials, government line departments in promoting functionally effective institutions as well as the livelihoods. This would therefore encompass the strategy for material development, pedagogy, infrastructure for training and finally the actual delivery. 9.1 Objective of Capacity Building The capacity building strategy has been proposed taking into account the requirements for the various stakeholders including institutional and project needs. In a community driven project, there is a need to accommodate demand driven capacity building to meet the emerging needs of the community. Hence, the major objective of capacity building will be as- Building the capacity of staffs of State Rural Livelihoods Mission including the staff involved in formation and nurturing of community institutions. Capacity building of poor, their groups/ institutions and the leaders of these groups/ institutions. Building the capacity of Community Cadres which will be instrumental in expansion of the project. Building the capacity of project stakeholders like Line department staff, Bankers, Gram Panchayat members and representatives and Resource Persons. This is important as objectives of the project are achieved and the stakeholders are able to perform their expected roles effectively for the benefit of the project. Working towards knowledge enhancement, skill up gradation and attitudinal/ behavioral change with all the stakeholders viz., project staffs, community institutions and community cadres and professionals. 9.2 Institutional Arrangement At the State level, the entire training and capacity building segment will be led by the Capacity Building and Institution Building segment of the SRLM. A full time State Project Manager- Institution Building, State Project Manager- Capacity Building and Three Project Managers looking separately after training and learning centres, training and capacity building of community institutions & cadres and training and capacity building of staffs and stakeholders such as participating NGOs and resource agencies, will be deputed and assigned responsibility to design implement and coordinate capacity building events. A State Resource Cell will be setup at SRLM to support the massive capacity building programme. A full time resource agency will be taken on- board which are having an expertise in designing and execution of capacity building activities for staffs, community institutions, cadres and professionals. This agency will then become part of State and district resource cell. 193

206 District unit will house a District Institution and training/ capacity building cell which will look after the large scale staff and community level training needs in a multi-functional manner. A full time Institution and Training/ Capacity Building Manager will be deputed and assigned responsibility to assess the gaps and needs, implement and coordinate capacity building events for various stakeholders, both at the district and block level. There will be provision of Training/ Capacity Building Officer, looking after a maximum of 2-3 blocks for proper execution of approved training calendar and working towards building good quality institutions and cadres. They will also be responsible for all necessary arrangement for capacity building programmes at district level. Further, this cell will have a mix of skill set among officials so that training inputs with thematic expertise will go down into the ground. A District Resource Unit will also be built at district level which will closely monitor and provide handholding support to partner NGOs who will be given responsibility to form and nurture community institutions and other stakeholders. In this, expertise agencies, individuals and NGO representative will work in coordination with each other. Block Unit will have a specialist Area Coordinator/ Training Facilitator who will be responsible for all necessary arrangement for capacity building programmes at the block level. He will look after proper implementation of village and cluster level trainings of CBOs. The Training and Learning Centre for Community Professionals is visualized at the Block level which will finally be at Block level federation which will work in pursuit of making it a centre of excellence in terms of providing custom made training and developmental solutions to the community. This will cater to the needs of the community and maintain standard training inputs to the community. 9.3 Key Approach/ Strategy to be Followed The key strategies/ approach that will be adopted for building the capacities of various stakeholders to meet the capacity building needs can be dealt under as Creation of State and District Resource Cell/ Pool: The project will identify the appropriate external resource agency/ agencies and persons for delivering the capacity building component at block, district and/or state levels. Agreements with these agencies will be worked out which will enhance the managerial capacity of staffs and also prepare staffs on participatory/ need based training methodologies so that they can become a part of Trainers Pool. Practitioners from the SRLM implementation agency/ices, other agencies engaged in similar activities will be identified and trainer resource pool will be developed both at state and district level. The programme staff and other resource persons/ teams/ agencies will constantly build the capacity of the communities by giving handholding support and proper facilitation to them Development of Spearhead Teams: At the block and district level, spearhead teams will be developed which will continuously work for building and nurturing of quality institution and different levels of federation. The district spearhead team will be chaired by DPM and members are TMs, TOs, Manager- M&E and Manager- Finance Infrastructure Support: At the block level, absence of appropriate training infrastructure will be the major challenge. The project will invest in building training infrastructure at block level wherever needed and also try to get existing suitable government infrastructure. 194

207 9.3.4 Development of Need based Training Material: Development of appropriate training material will be a key focus area. The development of training material like training modules, operational manuals, flipcharts, case study book, audio- visual training kit, posters etc. will be developed both internally and also by taking help from suitable agency who are having a considerable experience in developing sector specific materials Community Resource Person: It is being experienced that community to community cross learning approach is the best vehicle for social mobilization and sustainability. The Community Resource Person (CRP) strategy is also the best strategy for formation and nurturing of SHGs and its network at scale. These CRPs will not only work for our project but their services will also be given to other SRLMs for their social mobilization and formation of institutions. These community Resource persons will further be developed in the areas of formation and nurturing of various levels of institutions and other social, microfinance and livelihoods interventions Development of Community Professionals: The project will work towards building and nurturing of community professionals which will be selected through an accreditation process and whose services will be hired within the project and by other stakeholders like line departments, other NGOs, government sponsored programmes et al Development of Community Scholars: The experienced and having knowledge of rich variety of training tools and techniques will be earmarked as community scholars whose services will be given to other SRLMs and similar livelihoods project in South- East Asian countries. There will be continuous and robust mechanism in place, preferably at the training and learning centres wherein, an independent agency will do the accreditation and certified community cadres as community professionals/ scholars Development of Reference/ Models: A Resource Village will be developed, where all interventions have gone, which will become an exposure/ immersion/ learning joint. These models shall be developed within the intervention area at appropriate levels and in numbers so that best practices can be taken by community, institutions and staffs Learning by Doing: Each of the project functionary and all other service providers to the institutions of poor will learn the implementation process and development by practicing it in a particular area, say village or panchayat through proper handholding and monitoring mechanism. The experiential learning will be shared at different levels for making it a platform for learning best practices Exposure Visits/ Tours: Various sites within the country and the state would be identified and the appropriate notes, discussion points and learning will be documented and shared across. Staffs and community professional will be immersed in these areas so that they can learn the best practices from all over the country and build the project learning. 9.4 Training and Capacity Building of Staff It is important to build and nurture quality staffs so that they can deliver better inputs in implementation of core model that will translates in the formation of quality CBOs. In this regard, continuous learning is the strongest way to feed motivation among staff and improve quality of deliverables by them. The learning system in the Project will include the following- 195

208 9.4.1 Promotion of cross learning within organization through periodic staff meeting at all level, encouraging discussions on project issues, writing case studies on best practices and sharing the same across the Project, documenting field based learning and disseminate it continuously to the policy makers of the project and use of commonly understood language in all internal communication Cross learning from other programme/project will help in comparing Project success with others. This will create opportunities for adopting best practices. Project staff will be allowed to go for exposure of similar project or programme running at national or international level. They will also be encouraged attending relevant workshops, seminars and discussions Education inputs to the project staff will improve their knowledge and bring depth in thinking process. This will be facilitated through a library in the Project, subscribing leading development journals and arranging guest lectures by experts as well practitioners on contemporary development issues. Capacity building programs for BRLPS staff will strategically focus on following aspects Knowledge building Skill enhancement Attitudinal change Enhancing the capacity of the project staff is critical for improving their understanding of poverty, needs of the poor, institution development and livelihood enhancement so that they can support the CBOs. This will be done through various methods and tools including Trainings, Workshops, Exposure visits/cross visits, Experience sharing, and Self- learning. The training of BRLPS staff will involve a mechanism of identifying training needs of staff on regular basis and organize training and learning events. The training programme will adequately pool expertise and knowledge from external resource institutions working in Bihar and at national level. A tentative list of such institutions may include SERP, Hyderabad, Tamil Nadu Livelihoods Project, PRADAN, APMAS, Hyderabad, Dhan Foundation, Madurai, Samarthan, Bhopal, Sahbhagi Sikshan Kenda, SSK, Lucknow, BASIX, IIMs, IRMA, XLRI, TISS etc. The State Resource Cell will work in building and enhancing the capacity of SRLM staffs and undertake the following activities: Develop capacity building tool kit/manuals, and design courses, modules, methodology and program content based on the requirements of SMMU; Develop as a state level knowledge hub on social development, livelihoods, micro finance, vulnerability reduction, etc; Link up with stakeholders like NGOs, government agencies, banks and other financial institutions and draw from their experience and help SRLM to develop and pilot initiatives; Establish a state information resource centre to facilitate access to development related information and to create a database in respect of the same for preparing reports, developing information tools for research and training and promoting exchange of information among the participating organization and establish an interactive website for the same; Produce publications including books, journals, reports, occasional papers, study reports, newsletters etc. for capturing best practices. 196

209 9.5 Training and Capacity Building of Communities and Their Institutions It is really necessary and important to form groups with high scale of merit for its longer sustainability and finally making the group empowered enough to manage itself properly. It suggests, the process involved in the formation of a group and initial orientation/ training required plays a pivotal in success of group. The project will invest in building good quality cadre of community mobiliser, bookkeepers and master community resource person which will then impart various trainings of SHG and federations. In providing training and capacity building inputs to the communities and their institutions, there will a mix of staff and hired resource agency so that this can be done with quality at the level of scale. 9.6 Training and Capacity Building of Community Professionals In the experience of the project, the cluster coordinators, the community resource persons and the community service providers play a critical role not only in the formation and nurturing of community institutions and facilitating their access to finance but also in the promotion of individual household and collective livelihood activities. As the project expands, the need for capacity building of the front line functionaries would be greater. Further, it would be necessary to ensure that the training content is continuously updated to be in tune with the changing requirements of the Mission. More importantly, there should be a certain amount of uniformity exists in the content, methodology, duration and impact of training organised at multiple locations using a wide array of resource persons. The SRLM will set up Training and Learning Centres to ensure provision of continuous capacity building inputs of a uniform quality, managed by community institutions themselves. Apart from the key trainers, the academies could draw and use the services of community resource persons and professionals who have distinguished themselves in implementing project activities and benefitting from them. Community professional are accredited community members who are having a wide experience of community processes. It is necessary to build their capacity in a constant manner in order to get their services within and outside project. An agency having an experience of building community professional/ designing customized training modules for them will be hired and will work in coordination with the state resource cell in establishing training and learning centre, TLC at the block/ district level. A dedicated team will provide the necessary soft component in the form of Mobile Capacity Building teams to train, mentor and monitor the community Professionals in the field and build their capacity and confidence in a cost effective way. The Mobile Capacity Building team organizes basic training on key themes of social mobilization, formation of CBOs, village planning, implementation, institutional strengthening and good governance, as well as demand-driven capacity building as requested by Community Professionals and the village communities. The Mobile team develops materials and simple manuals, provides hands-on support to the Community Professionals through field-based action learning and monitors their performance, seeking regular feedback from Village Organizations. 197

210 9.7 Capturing Learning for Capacity Building Efforts As the organizational and human capacity of the programme develop and respond to new issues, there will be a need to regularly review capacity building needs for both operational and technical skills. This could be undertaken on an annual basis linked to Monitoring, Evaluation and Learning information (flowing from the Process Monitoring, Review and Planning processes) and staff/ team/ institution performance appraisals. Based on the needs assessment, a knowledge and skill development capacity building plan can be developed. In this, there will be a use of combination of tools, both quantitative such as surveys, frequently use standardized measures that fit diverse opinions and experiences into predetermined response categories etc. and Qualitative methods such as focus groups, interviews, and case studies, which provide greater depth and detail. Organizational assessments can also be helpful tools for capacitybuilding evaluations. Organizational assessment instruments designed specifically can be used to diagnose a group, ensure that the capacity building is focusing on the right issues, and repeated over time to measure change. These monitoring and evaluation of capacity building efforts can be conducted by hiring suitable agency or by the internal teams formed at the state level. This agency will assess of any gain in knowledge and skill of staffs and also assess any attitudinal/ behavioral change in them. 198

211 Annexure 1 Table : 9.1 List of Training Programme with Training Content for the Project Staff Training For Whom Training Contents Methodology Programme Staff Induction Programme Training programme of Project Management Training on standard office practices and computer usage Training on effective communication methods Training on procurement norms, administrative process and financial discipline Training of Trainers on Participatory Training Methodologies Training on MIS All staff project SPMs, PMs, DPMs, Thematic Managers and BPMs All project support staff both administrative and fin. (State, District & Block Level) Selected Block, District and State staffs All staff project Training Pool Staff, other selected staffs For all Project Staff About organization, Project Understanding, Project Processes and clarity of role Project Management concept, Processes, management tools and its applications Standard office processes and use of computer in management of office Understanding basics of communication, behavior of different stakeholders and way of communicating to them Understanding administrative norms, financial discipline and procurement processes in the Project. Developing skill of imparting training to community members as well project staff The MIS component, system application and reporting methods 199 This will be a mix of in-house training and exposure to successful livelihood project both inside and outside Bihar External agency will be hired for designing induction programme as well conducting training and for hosting exposure. This training programme may be organized by Hiring a national level resource training institution and get project staff trained with customized design of the programme Allowing officers to participate in MDPs being offered by national level institutions. A comprehensive training package will be designed by Project itself and will feature as ongoing (on the job training programme) event conducted mostly by the internal human resources. External agency will be hired and given task to organize training for staffs working at different levels of the project. A comprehensive training package will be designed by Project itself and will feature as ongoing (on the job training programme) event conducted mostly by the internal human resources. Hiring a national level resource training institution and get project staff trained with customized design of the programme The agency hired for developing MIS system for the Project will conduct this training programme.

212 Training Programme Training on maintaining microfinance business standards & understanding its tool Training on Partnership Management for Livelihood Business Development Training on understanding self and organizational behavior Training on Gender Concept Training on PRA Techniques Thematic Workshops Exposure Visit External Seminars and Workshops For Whom Training Contents Methodology Selected staff from state, district and block level Selected staff from state, district and block level Selected staff from state, district and block level Selected staff from state, district and block level Selected staff from state, district and block level For representative staffs from all project levels For all project staff For all project staff Understanding business standards of microfinance programme and knowing ways as well tools to apply this into the project. Developing understanding of management aspect while entering into partnership with livelihood service provider agencies and knowing ways to handle it. A training for realizing oneself, visioning by him/her and setting targets as well developing attitude to correspond the demand of the organization Understanding application of Gender in the project, developing sincere concern over the matter and improve attitude to support Gender equity in the project Understanding application of PRA in the project in the context of social and resource mapping Thematic workshops and seminars within project on Partnership Management, Development of Livelihood Based Business Linkages, Convergence with Government Programme, Interface with Bankers, Gender Concern, Food Security, Social Security to the Vulnerable, Youth Employment External agency will be hired and given task to organize training for staffs External agency will be hired and given task to organize training for staffs External agency will be hired and given task to organize training for staffs working External agency will be hired and given task to organize training for staffs. External agency will be hired and given task to organize training for staffs. In house workshop facilitating Project staff to increase understanding of Project components and its implementation processes. 200

213 Annexure 2 Table : 9.2 Suggested Training Themes and Content in Institutional Building Theme 1 : Social Mobilization Social mobilization - philosophy and approach Core values and principles of NRLM and its implementation model Vulnerability analysis Why poor are left out? Graduation process of ultra-poor Sensitization in gender, disability and youth Participatory identification of poor and the vulnerable Mobilization of the poor and left out into SHGs Supporting vulnerable groups to link up with mainstream Theme 2: Institution Building Poverty analysis (concept, causes and consequences) Social mobilization approach to poverty elimination Women empowerment Need for importance of being organized into groups Different institutional models and the nurturing processes Management of SHGs, federations, and Producers collectives Meeting processes at SHG and federation and their management norms Leadership development Financial management Conflict resolution Monitoring mechanism Social audit Legal framework and statutory provisions of the Co-operative Act/ Societies Registration Act Facilitation skills Theme-3 : Micro-Finance NRLM - core values and principles Need for financial services for the poor Financial service access related issues for the poor Different models of MF systems adopted across states and across organizations Books of accounts Micro Plan preparation and its appraisal Linking with financial institutions Financial literacy and financial counseling Saving products and remittances Risk management- micro insurance Thame-4 : Livelihoods Value chain analysis Micro Plan preparation Thematic training on agriculture sub-sectors like paddy, wheat, vegetables, pulses and agriallied subsectors like dairy management, goat rearing, poultry, fishery, etc. Thematic training on non- farm subsectors like Madhubani painting, sikki, sujni, etc. Various services related to the livelihood initiatives New livelihoods development process. Collective procurement and marketing- backward & forward linkages. Food security interventions Community managed sustainable agriculture and irrigation systems. 201

214 Annexure - 3 Table : 9.3 Suggested Training Components for SHG and Federation SHG Theme Components What is poverty SHG SHG SHG SHG SHG SHG Poverty Analysis Group Management Financial management Village organization Bookkeeping Issue Based Training Cause and effect of poverty Vicious cycle of poverty How to eradicate the poverty Importance of regular meetings Leadership issue Conflict mitigation Cohesiveness in group and its importance Need and importance of making norms Importance of group savings Making of group lending norms Importance of bookkeeping Introduction to different forms of fund available Community investment fund Bank linkage Importance of regular and timely repayment schedule Rotation of fund available Need of VO formation Objectives of VO VO constitution process VO role & responsibilities VO and beyond Bookkeeping & SHG level CSP role Need and importance of Bookkeeping Non- negotiable Other Social issues 202

215 Chapter - 10 Monitoring, Evaluation and Learning Monitoring, Evaluation and Learning are integral component of development projects. While the monitoring system examines the progress of project activities and its different components, evaluation is done to assess the impacts of projects interventions on targeted individuals and households. Learning refers to the feedback and adjustment processes leading to optimal project implementation. Therefore, Monitoring, Evaluation and Learning, together ensure that all inputs earmarked for project activities are well utilized in time to produce desired output so as to achieve the chosen goals and objectives of the project Objectives of the Social Observatory A Social Observatory integrates project monitoring systems, with scientific impact evaluations, and qualitative studies, in close collaboration with project implementations units.the objective of the Bihar Livelihoods Social Observarory is to use a comprehensive and thorough monitoring, evaluation and learning system to measure change, assess the effectiveness of the project, and pinpoint design and implementation challenges in a manner that is closely integrated with project implementation activities. The expectation is that this will provide continuous feedback to project management and other stakeholders on the progress and quality of project implementation. This would help the project management in taking appropriate and timely decisions, to make mid-course corrections as neccesssary, and to assess the output, outcome and impact of the project vis-à-vis its stated objectives. Moreover, a system of learning would be developed to institutionalize the learning process and convert field experiences and field actions into knowledge and knowledge products, which can be disseminated to internal and external audience for wider outreach and for increasing the effectiveness and efficiency of the implementation process. The proposed system would be a very holistic one, which would not only serve the needs of the project but also contribute to the capacity of the poorest of the poor and other stakeholders involved in the process of planning and implementation of the project. It is building on the project s experiences in developing an effective and usuable monitoring and learning system from the groundup over the last four years. This includes the use of electronic tools to reduce the time-lag between data collection and entry in the MIS database, developing user-friendly dashbords for using and analyzing MIS data by all levels of project staff and VOs, refining the instruments used for SHG profiles, integrating the use of process monitoring into project decisions, and implementing a state of the art mixed-methods system of impact evaluations Components of the Bihar Livelihoods Social Observatory The Social Observatory will have the following components: Management Information System The services of an external agency would be utilized to develop an MIS system including software and dashboards. The agency would also be responsible for building the capacities of the functional units at the block/district / State level, which in turn would train the CC, AC, and other concerned functionaries in the use of the system. The state (and latter on district) level management units would be responsible for input-output monitoring of the project through the MIS. However, while input information (finances, human resources and services) can be collected at the State and district level, 203

216 output information would necessarily have to be collected from CBOs, SHGs, VOs, CLFs & BLFs with the help of frontline staff. A special effort will be made to integrate the MIS for microfinance and livelihood activities with all the other components and interventions conducted by the project (e.g. SRI, FSF, HRF, Bank Linkage, etc.) The key to doing this is to have indentification codes at the member level, in addition to the existing SHG codes, to link all component MIS database with the core microfinance and livelohood database at the member level. However, it would be desirable to keep the project financial management system independent of the input-output MIS system. The project will transit from manual Institution-based MIS, to a fully automated system, while testing the appropriatness, usefullness and accuracy of every new technology as it is introduced. The project will conduct a rational transition process from manual to automated systems so as to not disrupt project activities. Automated systems that will be considered include computer based and mobile based systems for data entry, the use of dashboards for use by VOs, and cluster, block district and state level managers. A comprehensive group self-monitoring system for tracking individual change and institutional development will be utilized (CBOs - assessing their own organizational capacity development as well as progress towards sustainable livelihoods by using learning tools). This will include annual updates of SHG profiles, and component specific profiles which will be integrated with the core annual profile. Concurrent or ongoing evaluation through Internal management review and learning system (monthly review and planning meetings and monthly reporting by the project staffs at various levels, particularly at district, block, cluster and village level) With this the MIS will provide timely, comprehensive and user-friendly source of data for project implementation activities. It will also provide a comprehensive database to assess improvements in livelihoods of every SHG member and other project beneficiaries Process Monitoring In a community driven project like BRLPS there is a need of responsive and adaptive monitoring systems as community level development processes do not necessarily conform to pre-set rules, deadlines, targets or blue print approaches. As part of the Process Monitoring (PM) effort, the exercise would ensure that project facilitation activities are properly undertaken and fiduciary aspects of the project are properly handled. In this regard, the process monitoring would support the project management team and other stakeholders in understanding on how and through what processes inputs get converted into outputs; what issues are critical in that conversion process, and what action is necessary to increase the effectiveness of project interventions. It seeks to assess whether the processes observed are close to the ideal or intended processes and it explains the factors responsible for the deviation, if any, and explains what needs to be done to achieve the ideal/intended process. It is a key management tool for staff at all levels (State, District, Block), especially for process driven projects, designed to help implementing organizations become more participatory and demand responsive. The Process Monitoring will place a system of feedback loops (both horizontal i.e. across blocks/districts/states and vertical i.e. from management to field and back). Feedback loops will also be instituted at the community level and will track social and political mobilization challenges; changes in levels of empowerment, civic engagement, and political participation in gram panchayat institutions, and social audits; and changes in aspirations, mobility and entrepreneurial capacity of members. The Process Monitoring team will also facilitate project implementation: quality, failures, 204

217 successes, and challenges and the internal learning by doing. The will also document important stories of change and empowerment through digitized audio and video files Mixed-Methods Impact Evaluation In collaboration with external international and local scholars, a series of comprehensive studies are underway that wil provide an in-depth understanding of the impact of the project, and the processes underluing this impact. Quantitative Impact Evaluation: In collaboration with external research economists the project is conducting a randomized trial of the Phase 2 rollout of the project with 90 GPs randomly assigned as treatment and 90 GPs assigned as control, and three rounds of panel surveys. The outcomes studied include various measures of well-being (expenditure, poverty, debt, land recovery, food and health security, etc.), empowerment (intra-household barganing, mobility of women, capacity for collective action), and non-income dimensions of well-being. This will provide a thorough understanding of the outomes of the project for a represenative population. Qualitative Evaluation: In collaboration with external research sociologists and participatory analysts, the project is conducting an in-depth study of ten villages (6 treatment, 4 control) that will be tracked with in-depth qualitative data analysis over a two year period to understand the process of economic, social and political change. The study will provide an in-depth look at the changes introduced by the project that will also permit a deeper understanding of the processes that led to the quantitative impacts observed in the randomized impact evaluation. Behavioural Studies: In collaboration with external research scholars the project is conducting behavioural analysis of the outcome of the intervention comparing 5 treatment and 5 control villages. The purpose of this is to assess outcomes that are difficult to measure using quantitative surveys including women s empowerment, caste-based exclusion, and changes in identity and ideology. A series of appropriate field-based games and experiments will be developed and implemented over two rounds to assess changes at different periods of time and in treatment and control villages. These collaborative and integrated research efforts will together allow the project to understand its overall impact on poverty, livelihoods and empowerment, and to understand the kinds of social and poltical changes intitiated by it that might have led to these outcomes, and to also assess any limitations or challenges in design and implementation Peer Reviews The concept of peer reviews will be introduced. Under this an annual review of each block would be done by a specially constituted team from other blocks. The exercise will be conducted once in a year. Each block team would prepare a Self-review Report before the beginning of this review process. The visiting team would give feedback on this report after a short field visit and being briefed by the hosting block. This will ensure not only the participation of all levels of staff in the review process, at least once in a year, but would also help in building a culture of learning from peers and experiences of other colleagues working under the same project in different areas. This kind of collective and decentralized monitoring would help in building the culture of Horizontal learning among the project team members. 205

218 10.5 Rating system A rating system would be developed that would enable rating of different districts/blocks and community institutions based on the web based MIS. It is envisaged that such a rating system would incentivise good performance both among community institutions and staff Developing Learning System (DLS) Continuous learning is the strongest way to feed motivation among staff and improve quality of deliverables by them. For this, integration with the monitoring and the learning system in the Project will include the following: Promotion of cross learning within organization through periodic staff meeting at all level, encouraging discussions on project issues, writing case studies on best practices and sharing the same across the project, documenting field based learning and disseminate it continuously to the policy makers of the project and use of commonly understood language in all internal communication. Rotating staff from one block to another or one district to another will help sharing of knowledge resource in the project. The responsibility matrix of all the staff will be prepared in such a ways that one could take care of other than what his/her functional expertise is. Cross learning from other programme/project will help in comparing project success with others. This will create opportunities for adopting best practices. project staff will be allowed to go for exposure of similar project or programme running at national or international level. They will also be encouraged attending relevant workshops, seminars and discussions. Education inputs to the project staff will improve their knowledge and bring depth in thinking process. This will be facilitated through a library in the project, subscribing leading development journals and arranging guest lectures by experts as well practitioners on contemporary development issues. Review process at all level of project will be institutionalized Advisory Committee Eminent academics and practitioners from Bihar, or with strong experience in Bihar, will be invited to join the advisory committee of the Social Observatory to advise and monitor its activites. 206

219 10.1 Template for the M, E & L System Sl M& L Components Self-tracking of institutional development of CBOs Progress Tracking (Output indicators, activities and inputs) Project process tracking 4. Internal Learning 5. Mixed-Method Impact evaluation Qunatittive Evaluation using RCT, qualitative tracking on a sub-set of vilages, behavioral studies. Information collected on Achievement against targets MIS based Monthly Progress Reports Process indicators BPIU, DPCU and SPMU Communities and Households. Type of information A mix of qualitative and quantitative data including the perceptions of CBOs member. Quantitative outcome indicatorwise, activity-wise and inputwise data Thematic Information Routine Information Success stories, default areas, areas that need attention, components that can be replicated etc. Village level household and community data, in-depth qualitative information collectced on an on-going basis over two years, behavioral games. Instruments and frequency Comprehensive self based monitoring system SHG member profiles, complenent profiles. Yearly MIS based input and output system Monthly Internal process monitoring.twice a year Workshops, meetings, reviews, case studies, audio and video recording etc. Surveys: Baseline, midterm and final round, open-ended in-depth intervirews, PRAs and FGDs, conducted ober a two year period, behavioral games. For whom Community Institutions For the Community Institutions project and for the Stakeholders For the project, and Stakeholders For the functionaries and project For the project, external policy and academic audience. By whom /Output Self managed CBOs and institutions. Performance Measurement of the Institutions. Grading of Community Institutions Internal PPR on a half yearly basis. Internal/Production and sharing of the report with major stakeholders By the project functionarises Production of caselets series on a half yearly basis. External scholars The Key Outputs of the Social Observatory Production of Management Information Report (MIR) at quarterly basis Production of Project Progress Report (PPR) on a half yearly basis. Production of series of case-studies in association with communication Expert. Impact evaluation report towards Report on the long-term qualitative study towards 2014 Report on behavioural studies towards Preparation of annual Self review report by each Block team. 207

220 Chapter - 11 Communication Communication is perceived as a viscous force for binding the project and providing it direction and impetus. Balancing among the various components, facilitating and assessing progress and administering the flow of information tailored in form and hierarchy that would best fulfill the aspirations of the project is the key. It is envisaged that Jeevika will be scaled up from 55 to 534 blocks of Bihar to enhance the quality of life and livelihood of the poor families. In order to meet this daunting task, the role, strategy and tools to communicate to different stakeholder at various stages is essential and needs to be carefully crafted Major Constraints in Communication However, considering the situation of Bihar, there are some constraints which need to be understood before developing the action plan. Low levels of literacy especially among women. As this a project wherein women based institutions will be developed. Therefore, the communication packages and approach should keep in mind this aspect. Lack of power supply especially in rural areas is a major constraint it can inhibit the use of mass media. Poor infrastructure facilities Communication Plan The communication plan developed will consider the overall project themes, flow and requirements. The broad contour of the action plan is defined as follows: Participatory communication needs assessment. Developing an action plan for communication material development including defining the dissemination strategy. Categorising and classifying messages and media according to the themes and target audience. Developing material based on the target audience, message and media selected. Dissemination of material. Monitoring effectiveness and taking feedback Role and Levels of Communication The role of communication in the project will vary at different levels. The communication flow within the organization will mainly highlight and be an instrument for updating on the progress. Channelizing for information flow both upward and downwards with regards to decisions is an important element in internal communication. The second level and role of communication is the correct information dissemination to the target communities about the project and its various components. Communication at this level is also 208

221 geared towards providing information about livelihood options for the poor and mechanisms for the same Communication Flows (Internal and External) The project has multi-layer structures both within the project management units and community institutions wherein information will flow. Therefore, it is important to ensure that the flow is efficient and that there is no distortion in messages Internal Communications Internal Communication here is defined as communication within the project team at different levels viz. SPMU, DPCU & BPIU. The project will support the following activities with regard for facilitating and establishing efficient internal communications systems: Regular meeting and interaction at all levels, where there will be sharing of information both from the field to the state units and vice-a-versa. The IT input in internal communication will be explored. Office Orders and circulars for disseminating decisions. Development of electronic networks within and between Patna and districts. Use of internet and for posting and sharing information.. Have thematic notice boards in offices. Monthly E-newsletter for updating on progress. At block levels, printouts can be taken and shared with staff that does not have access to s. Data on server for open access in the office. Periodic training of all staff in the importance of communication methods including BCC External Communications External Communication here refers to communication to the community as well as to other external stakeholders. The project will support the following activities for external communications: Periodic briefings to the press, radio and TV. Development and maintenance of the web-site of JEEViKA. Development and dissemination of a variety of relevant project related information and materials in local Hindi languages for distribution to interested organizations, groups, individuals, etc., such as flyers, brochures, reports, publications, advertisement campaigns, etc. Periodic interviews/briefings by selected member of BRLPS in his/her area on TV, Radio, and leading dailies about the project. Preparation of short videos, films, CD s on activities to be implemented. Exposure of community members to other such rural livelihood projects. Development of a cadre of community communication teams in each project district that will use local art forms and artists in music, drama, dance, plays, folklore, etc. Explore use of community radio and pilot the same in the 2 nd year. The community communication team will be involved for the same. 209

222 11.5 Communication Strategy The Communication Strategies of the project has been evolved with the following key elements integral to it: A two-way vertical and horizontal flow of information. Facilitate participation of community in communication process. Developing continuous need identification mechanisms. Use of traditional forms and modern technology judiciously. Inherent accountability and transparency. Incorporate literacy and functional literacy aspects in communication process and technology Communication for Field Implementation The scope of the project demands for almost all forms of communication style & media. The initial phase, keeping the structural arrangements in the intervention districts in mind, would require printed instructional material for smooth facilitation of the most important part of the project, as envisaged, the formation and strengthening of the institutions of the poor. This would require proper training of the field staff on the accurate usage of the materials. The local art forms for their entertainment value, cultural context and mobility would be another potential tool for communication on the agendas envisaged for the betterment of the community. The vibrancy of the local art forms, especially those of kala jathas & regional songs, would go a long way to keep the motivations of the target audiences eternally high. Bihari Hindi will be the common link for all materials. However, Maithili, Bajika, Maghai and Angika emerge as distinct cultures where local forms can be developed and used in materials developed. However, when it comes to the issues like livelihood options & promotion, rights & responsibilities and more complex levels of federations, Audio-Video formats would best serve the purpose. This would require not only developing properly researched AV materials with enough options but also creating structural arrangements, at least, on the block levels for their screening from time-to-time to various groups categorized as per the compatibility of the messages in the presence of trained instructors (locally available for consultations on time). The materials for training purposes, materials for highlighting annual achievements of the project (chronological documentation of the processes & outcomes required), documentation of special events in AV formats & other broadcast materials must be outsourced to professional agencies for optimization of results. It is, also, necessary to involve professional agencies for the development of the printed materials as the scope of the trainings proposed for the project is too wide & diversified. The following components would be explored for guiding in development and usage of communication tools and package: Scanning Available Resources and Adaptation. Identifying Forms and Tools of Communication. Skill Enhancement for using Material. Dissemination Strategy. The materials that will be developed are flip charts, posters, training manuals, audio-visual material, newsletter, wall paintings, kala jathas, folk songs etc. 210

223 Communication is not only limited to print and dissemination of information. They are inter-linked. Knowledge management aims to create and manage the systems that will provide project staff and communities with relevant, timely information and facilitate the exchange of knowledge throughout the project system, while the communication strategy focuses on creating awareness of core community platform and shaping perceptions both internally to participating states, communities and beneficiaries, as well as externally to potential partners, stakeholders, and the general public. This note covers knowledge management, operational communications, and strategic communications activities by the National Mission Management Unit, the State Societies, and communities: 11.7 Knowledge Management It refers to activities and processes within the project system that identify issues, innovations, and good practices; collect the information; synthesize and analyze it, and ultimately disseminate it; Creating good practice case studies, flagging implementation challenges Establishing State Society Web sites --Separate from national, owned by states, but linked (web ring) Setting up a dedicated team of professionals with suitable experience. Institutionalizing a regular documentation process by capturing information in the form of case studies, video films, etc. Sharing of the contents with broader units for showcasing on the proposed knowledge repository. Initiate the process of providing incentives to the contributors of case studies, best practices, etc. (either community or staff) 11.8 Role of Community It refers to activities and processes within the project system that identify issues, innovations, and good practices; collect the information; synthesize and analyze it, and ultimately disseminate it; 11.9 Strategic Communications It refers to activities that position the project and its issues within the broader development agenda, advocate for the rural poor, and forging links with the public and private sector for livelihoods development Keeping stakeholders---state and district officials, panchayat presidents, local banks (esp. managers), etc. ---informed and supportive the project Forging partnerships at the state level for livelihoods support, skills development, employment linkages, etc. Partner with organizations, which have extensive experience with community knowledge management and communications. 211

224 11.10 Operational Communications It refers to messages and channels that support the implementation of NRLM including process communications (rules, roles, responsibilities) and thematic communications (finance, management, technical livelihood information, etc.). Creating and disseminating clear, repeating waves of messaging ---project information, rules of the game, operations manuals, good practice, technical information for livelihoods Creating or adapting training modules for staff and communities. Piloting the use of ICT for mobilization and livelihoods support, including SMS, community radio (or narrow casting), etc. Raising awareness of project benefits, rules, roles, responsibilities within the community Summarizing Communication in NRLM Objective Mechanisms and processes developed and implemented for effective flow of information among the primary and secondary stakeholders with policy advocacy Strategies IEC Materials developed and used by the staff and community workers. Internal communication system between Staff Staff and Staff Community, Community Community strengthened. Strategic links made functional for convergence between poverty initiatives. Transparency and credibility established with brand imaging at every level. Learnings and best practices documented & shared at large with Feedback systems incorporated Broad Activities IEC Materials developed and used by the staff and community workers. i. Communication Need Assessment to identify the gaps. ii. Preparation of awareness materials for scaling up. iii. Strengthening field units with technical equipments. iv. Development of training materials like flip charts, Audio Video, other formats and necessary user trainings. v. Collection, procurement and re-production of materials from other agencies for various components. vi. SHG Self-Monitoring System with different tools. vii. Creation of folk art teams in all districts to work more on culture livelihoods aspect. viii. Production of theme wise Story boards, Audio songs, Video short films, Jingles etc. 212

225 Internal communication system between Staff Staff and Staff Community, Community Community strengthened. i. Communication skill development of staff & community cadres through training, demonstration, exposure etc. ii. Connectivity enhancement amongst various cadres using traditional, technical mediums like Internet. iii. Partnering with agencies on livelihoods support options through communication like Digital Green. iv. Rolling out Knowledge Resource Center model. v. Developing Samwad Samuh (Human Brands). vi. Brain storming / Competitions between community professionals / staff. vii. Exceptional reporting system level and link it with the quality reporting / monitoring. Strategic links made functional for convergence between poverty initiatives. i. Convergence workshops between GO & NGO, Bank, MFI etc. as per theme. ii. Creating a learning loop between the similar agencies / projects using the KRC model. iii. Material preparation, dissemination & documentation of activities done with the partner agencies. iv. Joint campaign with on the common issues along with related deptts. / agencies / partners. v. Working out Locally Managed Information Systems - JEEViKA Radio, Community Newsletters etc. vi. Strategic input in CSC model / setting up Helpline Centres - JEEViKA Suchna Kendra. Transparency and credibility established with brand imaging at every level. i. Posters, Wall Paintings through-out on various themes. ii. Brochures, Films, Booklets, presentations on over-all impact and dissemination at large. iii. Suchna Patal - Information display, Signage of the village and VO / BLF activities. iv. Display panels at district / block to use at various forums. v. Branding materials like Diary, Calendar, Advt. etc. vi. Participation in events/workshops with innovative formats. vii. Awareness / Publicity Van model for VO Plus activities. viii. Solidarity events at block/district/state /national Level. Learning and best practices documented & shared at large with Feedback systems incorporated. i. Skill development of staff for process documenting & case study writing to create a long base for publication. ii. Producing learning documents with success stories, case studies & impact (print & AV). iii. Regular quarterly newsletter both in Hindi and English. iv. Compilation of processes with views of its users as referral document. v. Interactive Web-based Forum. vi. Media relation activities with some field level events. vii. National level event / Workshop / Innovation Forum share the learnings & best practices. 213

226 Chapter - 12 Financial Management The Financial Management System for the Bihar Rural Livelihoods Promotion Society which is the implementing agency for JEEViKA/ NRLM/ NRLP is designed to ensure transparency and accountability and also richness in decision-making and allocation of financial resources to the DPCU/BPIU & villages Financial Management Framework The financial management framework consists of simplified arrangements promoting transparency and accountability at all across the project. The financial management framework for the project is described as below in the table. Table: 12.1 Framework Institutional Level Arrangement State Level Executive Committee of the Bihar Rural Livelihoods Promotion Society (State Society) State Project Management Unit (SPMU)/State Rural Livelihood Mission (SRLM), Chief Executive Officer with Chief Finance Officer, One Internal Financial Management & Technical Support Team and Accounts Team Key Financial Management Arrangements Develop, review, revise and approve financial management policies for the project Approve annual budgets for the project Review financial progress at the Apex level, District & Block Level Overall oversight of financial management functions Approve and publish the audited annual accounts and file the same with the Registrar of Societies Receive, review and follow up audit reports. State Mission Management Unit (SMMU) SRLM would implement NRLM activities in the State through SPMU, at the state level, headed by a full-time State Mission Director (SMD)/CEO, Bihar Rural Livelihood Promotion Society. Apart from the SMD/CEO, SPMU will have a multi-disciplinary team. The major responsibilities of the SPMU include: Lead all NRLM activities in the state Drafting policies and implementation guidelines of the mission at the state level Handholding support to district and sub-district implementation/support structures Ensuring quality implementation of different components/thematic interventions Ensuring proper linkages with the District Rural Development Agencies (DRDA) Managing convergence and partnerships Compile annual budget of project based on annual action plan for SPMU/SRLM and various DPCUs and BPIUs and submit the same to GoB/GOI for sanction of the budget Receive funds into its bank account from GoB/GOI/MoRD as per the allocated budget/action Plan 214

227 District Level District Project Coordinating Unit (DPCU): District Project Manager assisted by Administrative Staffs along with Finance Manager and Accountants District Advisory Group /Review and Coordination Committee Distribute funds to DPCUs on a timely basis as per agreed annual work plans Institute mechanisms for proper accounting and auditing of project funds at state / district level. Besides this develop mechanism for accounting at BPIU level which will be operated on Imprest basis. Maintain database on district wise, component wise fund releases and expenditure Compile and forward regular quarterly/annual financial reports to GoB/GOI/IDA/MoRD Submit regular claims for reimbursement/fmr of project expenses to GoB/MoRD/IDA/NMMU Implement capacity building measures for financial management for staff at SPMU, DPCU and Block Develop policy and strategy for book keeping capacity building at the Block & village level and implement the same Review financial progress at the District level/block Level Appoint auditors for audit of BLF & VO and CPC Liaise with statutory auditors for the audit of the SPMU and District accounts on an annual basis and place the audited accounts before the General Body of the State Society and filing of annual returns with the Registrar of Societies. District Mission Management Unit (DMMU) The DPCU/DMMU of the BRLPS/SRLM would be responsible for meeting NRLM objectives and implementing NRLM activities in the district. DMMU/DPCU, linked suitably with District Rural Development Agency (DRDA), would be a facilitating and support unit for field structures. It would interface and forge convergence with District Administration and line departments, banks, NGOs and corporate agencies. DPCU/DMMU will be a multidisciplinary team, led by District Mission Manager (DMM)/ District Program Manager (DPM). DPCU/DMMU team members will be hired from open market on contract or on deputation from the Government, and will include functional specialists. Other Key Function of the DPCU/DMMU will be to - Coordinate with BPIU to Institute mechanisms for proper accounting and auditing of project funds at district level; Compile annual budget for the district and submit the same to the SPMU Receive funds into its bank account from the SPMU as per allocated budget Coordinate and forward regular monthly/quarterly financial monitoring reports to SPMU Ensure timely audit at District level District Advisory Group/Review and Coordination Committee A broad-based District Advisory Group/Review and Coordination Committee, chaired by District Collector, that includes representatives of the institutions of the poor and NGOs that work with them in a significant way, would review NRLM activities and provide inputs for improving and developing plans. 215

228 Sub district Level- Block Team Block Project Implementation Unit (BPIU)/Block Mission Management Unit : Block Project Manager with Accountants BPIU/Block Mission Management Unit (BMMU which will be sub district level Structure will led by a Block Project Manager (BPM)/Block Mission Manager (BMM) and consisting of 3-5 spearhead teams. Intensive Blocks: NRLP will fund Intensive blocks. The blocks that are taken up for intensive implementation of NRLM would have access to a full complement of trained professional staff and cover a whole range of activities of universal and intense social and financial inclusion, livelihoods, partnerships etc. Compile annual budget for the Block and submit the same to the DPCU/DMMU Receive funds into its bank account from the DPCU/DMMU as per allocated budget on imprest basis Appraise Community Based Livelihood Business Plans/Micro Plan with agreed milestone and recommend the plan to DPCU/DMMU for payments to BLF, VO & CPC on a timely basis as per agreed activities and relevant contractual arrangements Maintain database on village wise agreements, releases, expenditures, contributions, monthly financial statements etc. Compile, prepare and forward regular monthly/quarterly financial monitoring reports to SPMU/DPCU Ensure regular and timely audit for Community level organisation Ensure implementation of capacity building activities for building skills in financial management for village level and Block level institutions, etc. Facilitate linkages for easy flow of funds for the community to mobilise the community equity. Assist the BLF & VO in implementing the accountability framework (including public displays and external audit) Train and provide hand-holding support to the Master Book Keeper in book keeping functions and in preparing monthly & annual reports Maintenance of books of accounts like Cash Book, Advance Register, Fixed Asset Register, Stock Register etc. at Block Level Monitor the maintenance of books of accounts at the Village Level Block Level Federation Block Organisations Executive Committee Approve BLF Plan for the Block Approve Business Plan Completion Reports of BLF Appoint Social Audit Committee and call for action taken reports Sign MoU with State Society. Approve and submit accounts for the Fund received from Project 216

229 Block Level Federation, Secretary and Treasurer with Book Keeper as assisted by Finance and Procurement Sub Committee CIF Committee Procurement Committee Sub Sign financing agreements for BLF Fund with State Society through BPIU/DPCU. Receive funds from DPCU against BLF financing agreements and deposit the same in to the bank. Plan, implement and supervise activities under BLF fund Engage an accountant and ensure that all project expenditures and income are accounted for in the books of accounts Request for funds from BPIU along with milestones certificates Provide all books of accounts and other records for project audit Appoint Finance and Procurement Sub-committees with the approval of General Body and entrust them with specific financial management and procurement functions Ensure that all financial management and procurement decisions are documented in the Minutes Books of the BLF, Finance and Procurement sub-committee meetings Provide all financial information to Social Audit Committee Submit monthly, quarterly, half yearly and annual financial reports to BPIU. With the assistance of BPIU team, prepare and submit CIF Plans to BPIU Appraise the Micro credit Plans submitted by the Villages and recommend for sanction. Monitor the administration of CIF Funds. Prepare the Utilisation Certificates and Submit to the BPIU. Provide Capacity building support to the groups regarding CIF Fund. Guide BLF in their procurement functions; Ensure that the procurement guidelines elaborated in the COM are complied with; Assist the VOs to negotiate for highest quality and best prices Village Organisati on Village Level Finance Sub Committee Social Audit Committee Village Organisations Executive Committee Village Organisation Secretary and Treasurer with Book Keeper as assisted by Guide BLF in its financial management functions Ensure that the financial and accounting guidelines as laid out in the FMM and COM are complied with Conduct periodic surprise cash checks Facilitate the audit process Carry out periodic audits (including financial) of BLF, VO & CPC handled activities. Certify all milestone certificates and submit regular reports to BPIU. Approve VO Plan for the village Approve Business Plan Completion Reports of VO Appoint Social Audit Committee and call for action taken reports Sign MoU with State Society for the initiation phase Approve and submit accounts for the Fund received to BPIU Sign financing agreements for VO Fund with State Society through BPIU. Receive funds from DPCU against VO financing agreements and deposit the same in bank account to be operated by two 217

230 Finance and Procurement Sub Committee CIF Committee Procurement Sub Committee Finance Sub Committee Social Audit Committee members from among the SHG representatives who are members of VO, will be called Secretary and Treasurer Plan, implement and supervise activities under VO fund Engage an accountant and ensure that all project expenditures and income are accounted for in the books of accounts Request for funds from BPIU along with milestones certificates Provide all books of accounts and other records for project audit Appoint Finance and Procurement Sub-committees with the approval of General Body and entrust them with specific financial management and procurement functions Ensure that all financial management and procurement decisions are documented in the Minutes Books of the VO, Finance and Procurement sub-committee meetings Arrange permanent public display boards at a prominent place in the village, showing updated information on financial progress, VO and CPC Funds approved with beneficiary lists Provide all financial information to Social Audit Committee Submit monthly, quarterly, half yearly and annual financial reports to BPIU/DPCU. With the assistance of BPIU team/blf, prepare and submit CIF Plans to DPCU Prepare the Micro Credit Plan for the VO. Appraise the Micro credit Plans submitted by the Groups and recommend for sanction. Monitor the administration of CIF Funds. Prepare the Utilisation Certificates and Submit to the BPIU/ DPCU. Provide Capacity building support to the groups regarding CIF Fund. Guide VO in their procurement functions; Ensure that the procurement guidelines elaborated in the COM are complied with; Assist the VOs to negotiate for highest quality and best prices Guide VO in its financial management functions Ensure that the financial and accounting guidelines as laid out in the FMM and COM are complied with Conduct periodic surprise cash checks Facilitate the audit process Carry out periodic audits (including financial) of BLF,VO & CPC handled activities. Certify all milestone certificates and submit regular reports to BPIU. 218

231 12.2 Fund Flows The funds for project implementation will be channelized to the project implementation agencies including the VO/BLF and the fund flow envisaged for the project is summarized in the following Figure. Figure 12.1 Fund Flows Funds Flow Chart IDA Deposit into Bank Account for project mgt. / capacity building/ tech. asst funds and contracts with various service providers Deposits into Bank A/C & manage Food Security and certain community livelihood projects Government of India/MORD/ NMMU State Project Management Unit/SRLM District Managem ent Unit Block/Clust er Level Federation Village Organizatio n advance transferred under back to back arrangement, subsequent releases based on periodic financial report Intensive /Non intensive Block Government of Bihar Grant to BLF in tranches based on achievement of readiness filters/ CIF as loan, social fund as grant to VO State will also transfer their share to SRLM/ Quarterly releases against budgetary allocations & financial progress Funds releases on imprest basis for recurring expenditure Loans to Self Help Groups based on readiness filters/ milestones, social fund remains as grant and will be managed by VO Deposits into Bank A/C SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG SHG As per MOU with NRLP/NRLM, Community Investment Funds will be earmarked to be given directly to the community through village & Block Level Federation. The fund releases will formalized through signing the MoU & financing agreement (Between DPCU/BPIU and BLF, VO & SHG) specifying mainly the number and percentage of the instalments and release conditions. The terms and conditions for releasing funds to the Block and Village Federation will be elaborated in COM along with the draft MOU. 219

232 12.3 Staffing and Capacity Building Personnel The personnel at various institutional levels of the project directly performing the financial management functions are summarized in the following Table. Table: 12.2 Key Finance Management Personnel Position Level Key Roles & responsibilities Chief Finance Officer(Chartered Accountant with 7 to 8 years post qualification experience or from Bihar Finance Service) State Level The CFO will have overall responsibility for all financial and accounting aspects of the project, including necessary interaction with the BPIUs, DPCUs and Block & Village Level Organization. This professional would be responsible for development, updating and operation of the project financial management system, and financial planning and management of the project including financial forecasting. Finance Officer (Chartered Accountant/ Cost Accountants with 5 years post qualification experience or from Bihar Finance Service) State Level The Finance Officer will have responsibility for accounting aspects of the project at SPMU level and will report to CFO. One Internal Financial Management & Technical Support cell consisting four CAs having 7 years experience and four semi qualified CA/CWA having 5 years experience in audit, taxation & computerized accounting State Level The internal cell will work directly under Control of CEO will assist the CEO in all finance and accounting monitoring and Audit functions at the State, district and Blocks of that district. 220

233 Position Level Key Roles & responsibilities Accountants / Cashier Post graduate with two years post qualification or Commerce Graduate with three years post qualification Experience. Semi qualified (CA Inter or ICWA Inter) with minimum two years of experience will be preferred. District Finance Manager for each district.semi Professional qualifications Intermediate C.A. or ICWA) with 3-5 years experience or Professional qualifications (CA/ICWA) District Training Officer Finance & Accounts for each district. Semi qualified C.A. or CWA, M. Com., MBA (Finance) with 3-5 years experience in training in accounts, financial Management etc. Three to five Accountants and one Cashier at each district Post graduate with two years post qualification or Commerce Graduate with three years post qualification Experience. Semi qualified (CA Inter or ICWA Inter) with minimum two years of experience will be preferred. Accountant cum Cashier at each Block, Post graduate with two years post qualification or Commerce Graduate with three years post qualification Experience. Semi qualified (CA Inter or ICWA Inter) with minimum two years of experience will be preferred -2 Posts Accountant CIF at each Block Post graduate with two years post qualification or Commerce Graduate with three years post qualification Experience. CA Inter or ICWA Inter with minimum two years of experience will be preferred State Level District Level District Level District Level Block Level Block Level Will be responsible for all finance and accounting functions at the SPMU level and coordinate the all accounting & Finance function with all the Districts Blocks within the District. One Finance Manager at each District will be responsible for all finance and accounting Functions & Administration of CIF Funds at the District Accounting Centre, Blocks and CBOs of that district. One Training Officer (part of training cell) at each District will be responsible for all training related to finance and accounts at the district, Blocks and mainly at community levels of that district. Will be responsible for all finance and accounting functions at the District Accounting Centre and coordinate the All accounting & Finance function with all the Blocks within the District. Will work under District finance Manager and will be responsible for all finance and accounting functions at the Block and coordinate the all accounting & Finance function within the Block. Will work under District finance Manager and will be responsible for the administration and accounting of CIF. Providing regular Training support and assistance to the BPIU BLF, VO staff on CIF management. Preparation of Budget and statement of Expenditures and Finance & Accounting function at Block & Village level. Will also be responsible for monitoring of repayment of the CIF through AC/CC/VO. 221

234 Capacity Building SPMU, DPCU & BPIU Staff: The financial and accounting staff at the State, District & Block level will be trained in the requirements of accounting and reporting under the project by the internal cell of finance unit or separate agency. Training Modules have already prepared and need based module will be developed further as and when required and training will be included in their annual calendar. As the project is implementing computerized financial management & Accounting system, the staff will be trained to operate the computerized systems. The CFO will have the overall responsibility of building capacity of SPMU, DPCU & Block Staff. Block Level Federation: The Accountant (CIF), BPIU will act as Accounts and Monitoring Facilitator at the BLF, who with the help of Accounts resource person either Individual or from the training cell of DPCU will take care of the financial management aspects at the Block Level and village level. They will be trained to provide regular/day to day training at the block and village level. There will also be refresher trainings given periodically during the project period. The Accountant CIF will have the primary responsibility of building the capacity of the Block and village level Bookkeepers and Accountants and monitoring of the CIF repayment. Village Level: The office bearers of the Village Organisation and members of the various subcommittees will be trained on how to manage funds, maintaining books of accounts and financial records, financial reporting, financial accountability, maintaining transparency etc. The Block Program manager in the Block will have the key responsibility in coordinating with the Accounts and Monitoring Facilitator in the BLF in building the capacity of the bookkeeper at the village level and also to constantly give handholding support to them. Provision of books of accounts, development of standard training modules, training of trainers etc. will be done in building the financial management and accounting capacity at the village level Accounting Policies and Procedures Financial Management Manual A Financial Management Manual (which is an integral part of the PIP) has been prepared detailing the accounting and financial reporting (IFR) requirements for the SPMU, DPCU and BPIU. The FMM elaborates the accounting and financial management processes such as funds flow, budgeting, audit arrangements and accounting centre at State and District level. The financial and accounting policies contained in these manuals shall supplement the policies adopted for State Society, District Units and Block Units Community Operation Manual The COM is prepared detailing the accounting requirements and internal controls at VO/BLF/SHG level. The COM elaborates the accounting and financial management processes at VO/BLF/SHG level. Internal Control i. A handbook for accounting and administrative rules has been prepared with delegation of financial powers, authorities and payment responsibilities. 222

235 ii. The Project Director/CEO and CFO/FO will issue office orders and guidelines from time to time. The FMM has elaborated the approval processes for specific project activities. The project will review these arrangements periodically and make suitable amendments as needed for smooth project implementation. iii. The other key internal control mechanisms are: Performance standards for certification of milestones and release of payments Each accounting unit will close the books of accounts within a specified number of days of the close of each month, reconcile its balances with bank statements and books of accounts and forward the same to the next level of authority in the institutional hierarchy, and State Society will provide oversight on the qualitative and timeliness aspects of the reporting. At the BLF, VO & PC levels, recording of all financial decisions in the minute books, public displays of financial information, access of accounting records to all members and social audit procedures will ensure that transparency and oversight functions are maintained Apportionment of common expenditure to different Project At present the BRLPS has been conducting various projects in Bihar. Some expenditure is directly related to a particular project and some expenditure are common in nature. Expenditure, directly related to a particular project can be booked under that project only. However, common expenditure can be apportioned on reasonable assurance standard basis. Apportionment of the common expenditure can be made in proportion of the project area and duration of that particular project. Apportionment of common expenditure can be made as follows: a. Apportionment of the project management expenditure of State Office can be made in proportion of No. of blocks in which the society has executed the project. Besides project management cost, common expenditure related to other component can be apportioned on the basis of No. of blocks benefitted from that services. b. Apportionment of the project management expenditure of District Office can be made in proportion of No. of blocks of that particular district in which the society has executed the services of that particular project Audit Arrangements Statutory Audit The SPMU will appoint an independent firm of chartered accountants from the panel maintained by the NMMU, MORD to conduct annual audit of the project.. The audit would cover all project operations. The TOR for audit is given in the Financial Management Manual The audit report will consist of: financial statements and audit opinion confirming whether the project financial statements have been prepared in accordance with consistently applied Accounting Standards and give a true and fair view of the operations of the project during the year and that the withdrawals from the Government of India made on the basis of UC/IFRs, procedures and internal controls involved in their preparation, can be relied on to support the related withdrawals. 223

236 Additionally, the auditor will be required to provide a management letter to project management highlighting findings during the audit. The audit will be conducted as per the accepted standards and financial reporting will follow the Accounting Standards. The audit report with the management letter will be submitted to NMMU,MORD,GOI within Five months of the close of each financial year. TORs for the audit has been prepared in agreement with NMMU and will be agreed upon with the audit firm/s Internal Audit The Mission/project accounts will also be subjected to quarterly internal audit. The audit will be conducted either by in-house internal audit cell or by chartered accountants firms on quarterly basis of the State, District Units and beside audit report they also submit a management letters to the Management. The audit of community organization (VO/BLF) will be conducted by chartered accountants firms on annual basis. The TORs of the internal audit of project unit and community organization have been drafted separately and included in the Financial Management Manual. The key internal audit functions are: Ascertain whether the systems of internal checks and controls operating are effective Ascertain reliability of accounting financial reports Ascertain the extent to which the systems in place prevent misuse of project assets Ascertain whether the financial rules and procedures as laid down in the Manuals are followed. Consolidate and highlight the major observations of VO/BLF audit report and incorporate it to the audit report of concern BPIUs Social Audit VO/BLF/SHG/Producers Group as community based organizations, will have more of a social audit than a statutory audit by a CA firm. However, the audit of all units of PG, BLF, VO will be conducted by CA firm on annual basis and besides this the audit of the SHGs will be taken up on sample basis. The auditor has to give the audited accounting statements and audit reports to VO/BLF/SHG within 3 months of the close of the financial year. The SPMU will engage the firms of chartered accountants from the panel of chartered accountant firms available with ICAI through newspaper advertisement or empanelled by NMMU/ MoRD. The Social Audit function carried out by the Social Audit Committee will also include financial reviews and audits on all aspects of quality, quantity and procurement. The Social Audit Committee reports its findings directly to the Village Organization & Block Organization along with recommendations for rectifying short falls. The social audit will ensure transparency and accountability of project implementation at the village level. Certification of the utilization and achievement of milestones is a pre-requisite to trigger the release of instalments to VO/SHG/PC etc. 224

237 12.6 Financial Reporting Proposed Financial Reporting system under the project can be divided into the following broad heads- Objective of the Financial Reporting Types of report and their periodicity of the reporting Preparation of Financial Reports Reporting Chart The proposed Financial Reports has been designed with the following main objectives: To provide project implementing agencies with relevant information that would enable them to plan, monitor and control the various project activities. To identify and report critical areas of information which are relevant at different levels of project implementing agencies and would facilitate in decision making at those levels. To provide a basis for evaluation of various project activities by regular comparison of actual with the budgets To provide a basis for taking remedial actions to correct any adverse trend To facilitate management by exception by presenting critical and select information to the top management of the program, Govt. of India and State Governments. To assist consolidation at various levels Types of Report Project expenditures will be reported on quarterly, half yearly and annual basis by districts to states, states to NMMU and NMMU to MORD/World Bank. There will be 5 major types of financial reports in the project, which are as follows: Interim Unaudited Financial Reporting (IUFRs) Utilization Certificates Statutory Audit Reports Internal Audit Reports Financial Management Indicators (FMIs) The above reports can also be classified in two Parts: Internal Reports Reports that are generated by the Project, which will assist in preparation of the External Reports, are Internal Reports. Following are the Internal Reports that will generate by the various units of the project and will be consolidated at the SMMU level for preparation of external Reports- 225

238 Table: 12.3 Internal Reports Sl. Report Type Format Periodicity Timeline 1. IUFR of SRLM Blocks and Districts Annex FMM in Quarterly Within 15 days of end of each Quarter 2. Utilization Certificates Annex FMM in As and when due for tranches as per MORD Guidelines As and when due for tranches as per MORD Guidelines 3. Consolidated Statutory Audit Report of SRLM, Bihar Annex FMM in Annually 31 st July of every Project year for previous financial year 4. Summary of Internal Audit Observations and Action Taken Six-months Within 15 days of end of each period of six month 5. Consolidated Indicators FM Half yearly Within 15 days of end of each period of Quarter External Reports Reports that are generated for the purpose of submission to the World Bank are the External Reports. They are further classified into quarterly and annual reports.the formats of Financial Managements Reports (FMR/IUFRs) are detailed as below. Table: 12.4 Reports to be submitted by SMMU to NMMU Sl. Report Type Format Periodicity Timeline 1. Consolidated IUFR of SRLM, Bihar Annex Quarterly Within 30 days of end of each Quarter 2. Utilization Certificates Annex in FMM As and when due for tranches as per MORD Guidelines As and when due for tranches as per MORD Guidelines 3. Consolidated Statutory Audit Report of SRLM, Bihar Annually 31 th August of every Project year for previous financial year 4. Summary of Internal Audit Observations and Action Taken Six-months Within 30 days of end of each six months 5. Consolidated Indicators FM Half yearly Within 30 days of end of each period of six months Report from VO/BLF to the Project Financial Report will be submitted by the CBO on the basis of the data base maintained at the CBO level for utilization of funds: 226

239 Table: 12.5 Report from VO/ BLF to Project Sl. Title of report Periodicity Timeline 1 Monthly Receipts & payments Account Monthly By 15th of the Next Month 2 Physical & Financial Statement on CIF Released Monthly By 15th of the Next Month 3 Audited Annual financial Statements Annual 30th June of following Year 4 Utilization Certificates Quarterly By 15th of the Next Quarter 12.7 Computerized Accounting System The project will have a computerized accounting system and will use Of the Self Accounting Software (Tally) which has already been tested. A Customized Chart of Accounts has also been developed at the SPMU level which will be used throughout the district and the State. It is further proposed to Computerized Accounts of SHG and SHG Federation through Customized Software. 227

240 Chapter - 13 Procurement Arrangements Procurement function has an important role to play in the NRLP program for its satisfactory implementation, speedy transfer of resources by way of disbursement and achieving economy efficiency, transparency and fairness in the project. Procurement of all goods and consultancy work under the SRLM program will be undertaken in accordance with the approved Manual of Procurement of NRLM (March. 2011). A separate guideline has been developed for DPCUs, BPIUs and Community Level procurement, which sets forth the SRLM procurement policies and procedure for the guidance of all personnel involved with procurement responsibilities with the aim of ensuring the program resources are properly managed and safeguard and also ensuring that all eligible bidders are provided the same information and equal opportunity to complete in provision of same. Under the SRLM, federated structures of Self Help Groups (SHGs) will be formed at different levels for undertaking value chain linked activities in dairy, agri-business and similar enterprises for better production, storage, marketing etc. of the produce of the members of the SHGs. These groups would undertake procurement of goods, works and services in line with the selected value added activity. General principles of community based procurement that project functionaries and community groups should take into consideration as per the developed Community Procurement Manual Procurement of Goods & Works Methods In general, the methods of procurement for goods and works followed under SRLM will be: Open Tender is the preferred method of procurement for goods and works. This method involves competitive bidding to generate adequate competition in order to ensure reasonable prices. The criteria used in the evaluation of tenders and the award of contracts is made known to all bidders in a timely manner and not applied arbitrarily. The applicable conditions and steps under this method will be as per the guidelines. Limited Tender is used for goods and works where a large supplier/contractor base exists and an open tender is not expected to vary the pricing conditions. It involves comparing tenders obtained from several suppliers, usually at least three to ensure competitive prices. As far as possible, Limited Tender enquiries will be issued to those firms, which are borne on the list of approved contractors/suppliers. Normally goods and maintenance of equipment estimated to cost up to the financial threshold suggested for various levels subsequently in this manual may be procured under contracts awarded under the Limited Tender system (value thresholds per contract). The applicable conditions and steps under this method will be as per the guidelines. Local Shopping involves comparing price quotations obtained from several local suppliers, usually at least three to ensure competitive prices. Shopping should be carried out with appropriate record keeping for verification and audit. Shopping should not be used as an expedient to by-pass more competitive methods or fraction large procurement into smaller ones solely to allow the use of Shopping. It can be used to procure small amounts of off-the-shelf goods or Standard Specification Commodities or simple civil works for which more competitive methods are not justified on the basis of cost or efficiency. The applicable conditions and steps under this method will be as per the guidelines. 228

241 Petty Purchase can be used when purchasing articles or group of articles estimated to cost less than the financial ceiling prevailing in the State, provided this does not involve any splitting of purchases. No tenders/quotations are required. The applicable conditions and steps under this method will be as per the guidelines. Single Tender involves contracting without competition (single source) and may be adopted in case of articles which are specifically certified as of proprietary nature or in cases where only a particular firm is the manufacturer of the articles demanded. The applicable conditions and steps under this method will be as per the guidelines. Rate Contracts is contracting for the supply of goods, and works at specified rates during the period covered by the contract. Under the NRLM program, rate contracts established by DGS&D, and National Mission Management Unit/ Project Management Agency will be applicable. Rate contracts established by State level agencies or corporations will not be acceptable for procurement since they are not following a competitive procedure. The applicable conditions and steps under this method will be as per the guidelines Threshold Limit and Methods for Procurement at Various Level In general, procurement of office management related supplies like (including stationary like paper, pens, files, registers etc., items for repair and maintenance), equipment & electronic items (like computers, printers, scanners, UPS, photocopiers, fax machines, LAN, WAN, ACs,), furniture and fixtures (including spare parts, fuel, oil and lubricants etc.), office communication aids (such as multimedia projectors, Audio visual equipment, digital and video cameras, mobile units and peripherals), vehicles, miscellaneous field equipment and apparatus, proprietary software, journals, publications, training manuals. Table: 13.1 Goods & Works Procurement Methods SPMU DPCU BPIU Goods Works Goods Works Goods Works Petty Purchase Upto INR Upto INR N/A 25,000/- 10,000/- N/A Upto INR 5,000/- N/A Above INR Above INR Above INR Local 25001/- to N/A 10001/- to N/A 5001/- to Shopping 5,00,000/ 5,00,000/ 2,00,000/ N/A INR. INR. Above INR Limited Upto INR. Upto INR. 5,00,001/- to 5,00,001/- to /- to Tendering 1,00,00,000/- 50,00,000/- 25,00,000/- 10,00,000/- 5,00,000/- N/A Above INR Above INR Upto INR. Above INR Open 25,00,000/- to 10,00,000/- 25,00,00,000 N/A 5,00,000/- to Tendering INR to INR /- 10,00,000/- 2,50,00,000/- 25,00,000/- N/A Force Account N/A Upto INR Upto INR Upto INR N/A N/A 5,00,000/- 2,00,000/- 2,00,000 As per As per As per Single tender / Direct conditions mentioned in NIL conditions mentioned in NIL conditions mentioned in N/A Purchase procurement manual. procurement manual. procurement manual. DGS & D Rate INR INR Contract 25,00,000/- 25,00,000/- INR 10,00,000/- N/A 229

242 Note: The above the maximum per contract value that can be issued at all the levels. For goods and services, no single contract valued above INR 2, 50, 00, 000/- is anticipated, and in the event may particular need arises for a contract above this value, the procurement arrangement for such contract shall be discussed and agreed with NMMU/Bank in advance Procurement of Services and Consultants Methods In SRLM a variety of service consultancies are envisaged institutional consultancies for undertaking diagnostic/ impact/ evaluation and other studies, project design; support services for implementing various components of the program, including management and advisory support, consultancies towards providing training and capacity building activities, developing systems and methods for monitoring including MIS, engaging services for supervision of construction of works and installation of equipment, similarly technical assistance services including thematic experts for institutional development, financial inclusion etc. Service contracts will be procured at all levels using one of the following methods based on the complexity of the service, and the delegated financial limit at respective level: Quality and Cost Based Selection (QCBS) is the method based on the quality of the proposals and cost of services to be provided. This method is appropriate when the scope of work assignment is precisely defined and the TOR is well specified and clear; further an estimate for the staff time as well as the other inputs and cost required of the Consultants can be assessed with reasonable precision. The applicable conditions and steps under this method will be as per the guidelines. Least Cost Selection (LCS): Under LCS a minimum qualifying mark for quality is established and indicated in the RFP. Short-listed consultants have to submit their proposals in two envelopes. The technical proposals are opened first and evaluated. Proposals scoring less than minimum qualifying marks are rejected, and the financial envelopes of the rest are opened in public. The consultant with the lowest evaluated price is selected. The LCS method is more appropriate for small assignments of a standard or routine nature where well established practices and standards exist from which a specific and well defined outcome is expected, and which can be executed at different costs. Some examples are standard accounting audits, engineering designs and/ or supervision of simple projects; repetitive operations and maintenance work and routine inspection, and simple surveys. Fixed Budget Selection (FBS) is based on disclosing the available budget to the invited consultants in RFP and selecting the consultant with the highest ranking technical proposal within the budget. It needs to be ensured that budget is compatible with the TOR and that consultant will be able to perform the tasks within the budget. FBS is appropriate only when: (a) the budget is fixed and cannot be exceeded; (b) the TOR are simple and assignment can be precisely defined; and (c) the time and staff month effort required from the consultant can be assessed with precision. Typical assignments awarded under FBS are: sector studies, market studies, and surveys of limited scope; simple pre-feasibility studies and review of existing feasibility studies; and review of existing technical design and bidding documents. The applicable conditions and steps under this method will be as per the guidelines. 230

243 Selection Based on Consultant s Qualification (CQ) method applies to very small assignments for which the full fledged selection process would not be justified. CQ is considered for assignments such as: brief evaluation studies at critical decision points of projects; executive assessment of strategic plans; high level, short term, legal expertise; and participation in project review expert panel. Under CQ the Clients first prepare the TOR, then requests for Expression of Interest and qualification information on the consultant s experience and competence relevant to the assignment. The Client establishes a short list and selects the firm with the best qualifications and references. The selected firm is asked to submit a combined technical and financial proposal and is then invited to negotiate the contract if the technical proposal proves acceptable. The applicable conditions and steps under this method will be as per the guidelines. Single Source Selection (SSS) involves asking a specific consultant to prepare technical and financial proposals, which are then negotiated. Since there is no competition, this method is acceptable only in exceptional cases and made on the basis of strong and convincing justification where it offers clear advantages over the competition. Some circumstances can be: i. The assignment represents a natural or direct continuation of a previous one awarded competitively, and performance of the incumbent consultant has been satisfactory. ii. A quick selection of consultant is essential to address an emergency operation and crisis; iii. Only one consulting organization has the qualification or experience of exceptional worth to carry out the assignment. The applicable conditions and steps under this method will be as per the guidelines. Selection of Individual Consultant: For hiring of individuals, it is necessary to finalize the job description, qualification and experience required and terms of engagement. Thereafter an advertisement (if the assignment is complex) may be put into the newspapers indicating the above details. The applications received shall be scrutinized and ranking shall be prepared. Thereafter the top-ranked individual shall be invited for interviews/discussions and would be offered the assignment. Consultants shall be selected through comparison of qualifications of at least three candidates among those who have expressed interest in the assignment or have been approached directly by the Client. The applicable conditions and steps under this method will be as per the guidelines Threshold Limit and Methods for Procurement at Various Level Under the services and consultancies, Services for studies, evaluations and designs; support services for implementing various components of the program including management and advisory support, services for providing training and capacity building activities, and developing systems and methods for monitoring including MIS, services for supervision of construction of works and installation of equipment, technical assistance services and institutional development. Threshold Limit and Method of Procurement for Services & Consultancies at various levels are as follows: 231

244 Table: 13.2 Procurement at Various Level Procurement Methods SPMU DPCU BPIU Individual SSS Individual - Competitive Institutions CQS, FBS, LCS Institutions QCBS Institutions SSS Subject to Acceptable Justification Subject to Acceptable Justification Subject to Acceptable Justification Up to INR 25,00,000/- Up to INR 5,00,000/- Up to INR 2,00,000/- Up to INR 50,00,000/- Up to INR 25,00,000/- Up to INR 10,00,000/- INR 50,00,000/- No upper limit. Up to INR /- Above /- Subject to Acceptable Justification & No objection from NMMU INR 25,00,000/- No upper limit. Up to INR /- Subject to Acceptable Justification & No objection from SPMU INR 10,00,000/- No upper limit. Up to INR /- Subject to Acceptable Justification & No objection from SPMU Note: All selection of more than 1 crore from the NRLP, shall be advertisement in UNDB or NRLM/NMMU website. The above are the maximum per contract value that can be issued at all level. Individual Single Source Selection will be made subject to No Objection from the next higher level with acceptable justification Community Based Procurement Methods Under SRLM, federated structures of Self Help Groups (SHGs) will be formed at different levels (SHGs, VOs & BLFs) for undertaking value chain linked activities in dairy, agri-business and similar enterprises for better production, storage, marketing, etc. of the produce of the members of the SHGs. These groups would undertake procurement of goods, works and services in line with the selected value added activity. To ensure that community procurement processes are efficient, transparent, cost-effective, and competitive to ensure quality of goods and services, the procurement guidelines should: Be simple enough as to be understood and implemented by local staff and the community; Be sufficiently transparent to permit real competition among suppliers and to facilitate control in the selection of contractors and use of funds; Use simple, standardized documentation; and Balance risk versus control/management with efficiency considerations. Rate Bank The DPCU and BPIU while preparing the procurement plans will utilize standard price lists called Rate Bank maintained by the DPCU/BPIU on market rates. The DPCU/BPIU will collect market rates for the likely items to be procured by the BLF/VO. The Rate Bank will be periodically updated and published. 232

245 Delegated Financial Limit and Method of Procurement at Community Based Organization (CBOs) CBOs are Self Help Groups (SHGs), Village Organizations (VOs), Block Level Federations (BLFs) and Producers Company. Expenditure for common goods and services as well as sub-projects under the Livelihoods Investment Component. Example, Agriculture Equipments, Plant & Machinery, building an agricultural link road for enhanced livelihood opportunity, constructing a village meeting/ storage space under value chain development, investing in water harvesting technique, check dam building. Additionally office management related procurement of goods, equipment, and works. Procurement by members of SHGs Livelihoods plans for SHG members towards enhancing individual livelihoods and personal consumption under the funds from the livelihoods intervention components. Maximum livelihoods plan amount of INR 2,50,000/- per SHG member is anticipated. Given that it is a loan to be paid back with interest, and the nature of private procurement, the procurement by SHGs will be carried out with prudence using commercial practices and requires no procurement procedure. Procurement by other CBOs Method and threshold of Community Based Organization (CBOs) i.e, SHG (for public procurement), Village Organization (VOs), Block Level Federation (BLF) and other producer s group established under SRLM will be as follows: i. Goods & Works Table: 13.3 Goods & Works for CBOs Method Goods Works Petty Purchase < INR 10,000 NA (a) < INR 50,000 (minimum three quotation or direct purchase In exceptional case with Local Shopping justification.) NA (b) < INR 200,000 (minimum three quotation must) Limited Tendering < INR 7,50,000 < INR 10,00,000 Open Tendering < INR 25,00,000 < INR 1 crore Community Force Account NA < INR 25,00,000 Note: Post Procurement Review of 10% of such sub projects to be undertaken by SPMU team. ii. Services & Consultancy Individual Consultants up to a value of INR 1,00,000 per contract following competitive procedures. Institutional Consultants up to a value of INR 10,00,000 per contract following competitive methods of CQS, FBS and LCS The above are the maximum per contract value that can be issued at this level. If there is a need to procure an item above this value, the process will be handled at the next higher level. 233

246 13.4 Threshold of Review Prior Review Procurement decisions for goods and consulting services irrespective of procurement methods will be subject to prior review by next higher levels. Table: 13.4 Prior Review Procurement Goods Contract Prior Review Works Contract- Prior Review Service Contract- Prior Review Service Contract- Prior Review - SSS By NMMU (For SPMU) Above 2,00,00,000/- Above 2,00,00,000/- Above 80,00,000/- Above 25,00,000/- INR INR INR Rs By SPMU (For DPCUs) Above 10,00,000/- Above 25,00,000/- Above 25,00,000/- All contracts INR INR INR By DPCU (For BPIUs) Above 2,00,000/- - INR Above INR 5,00,000/- All Contract By SPMU Post Review Post review will also be carried out at different level by the NMMU and other higher level. Post Procurement Review by NMMU by independent third party especially for the contract above 1 crore in case proceeds of IDA credit are used. NMMU will conduct post review of 10% of all other contracts issued at SPMU (other than prior review) by third party independent procurement review consultants appointed by NMMU. SPMU will conduct post review of District Units (i) 10% of contracts to be under DPCU and 5% of all contracts by third party independent procurement review consultants appointed by NMMU. DPCU will conduct post review of BPIU (1) 10% of the contract to be under DPCU and 5% of all contract by SPMU. SPMU will conduct post procurement review of 10% of such sub contracts to be undertaken by CBOs. Post review instituted by NMMU to consider the state PMU reports as part of secondary review, following CDD procurement review procedures. No field level physical review anticipated Procurement Planning, Management and Supervision Arrangement Planning and adhering to procurement of various items in an orderly manner ensures an effective method of budget execution and expenditure management. Procurement by any project implementing entity at State, District and Block levels shall be undertaken in adherence to the following essential conditions: Ensure that specific budget provision is available to meet expenditure in the financial year in which it is to be incurred. Assess bulk requirement of goods, works and services for procurement at the beginning of the financial year and initiate action for procurement in accordance with the procedure applicable. 234

247 Ensure that procurement is made to the best advantage of the annual plan implementation after comparison of competitive prices. Purchase of office equipment and furniture is in economic lots keeping in view the annual requirements. Miscellaneous items of goods, works and services not covered by bulk requirement are to be purchased according to the actual requirement at different points of time during the financial year provided the value of goods, works and services so purchased is small and expenditure is met from within the sanctioned budget Procurement Plan The preparation of a procurement plan is an essential requirement to ensure smooth & timely purchases. The procurement plan shall be prepared on a firm basis for the first year of the programme, and on a tentative basis for the subsequent years. The procurement schedule shall be prepared contract wise. The method of procurement shall depend on the value of the contract. Procurement plan shall be prepared in the prescribed format. Method of purchase shall be based on the value of the contract, urgency of the demand, type of goods/ services and availability of different sources of supply etc. Limit of value per contract applicable to a particular procurement method shall be strictly adhered too. It shall be ensured that the procurement of goods and works is carried out strictly on the basis of actual need. Template for SRLM Procurement Plans National: State: District/Block: Financial Year: Ref. No. Contract/Item (Description) Estimated Cost In INR Goods Works or Services Procurement Method Prior / Post review Expected Advert Issue Date for EoI Expected Bid-Opening Date / Expected Contract Award Date Comments 1 (please fill in) 2 (please fill in) 3 (please fill in) Each implementing level will be responsible for preparing procurement plans which shall be compiled at the District, State and National Level respectively. Each District will prepare a contract wise annual procurement plan, and all procurement plans will then be approved and consolidated at the State level by SMMU. One procurement plan will be for civil works and one for goods listing the items/ works to be procured, their estimated value and method of procurement. Similarly, SMMU will prepare its procurement plan which will be approved and consolidated at the NMMU level. Separate procurement plans will be prepared for the institution and capacity development component and for the project management component. 235

248 Procurement Management Arrangements, Roles & Responsibilities Table: 13.5 Procurement Roles & Responsibilities Level Project Management Level Management Office Structure Procurement Unit in the State Mission Management Unit (SMMU) Procurement Specialist (1), Proc. Officer (1) and Procurement Associate (1) Role of Management Office Responsible for overall SMMU procurement planning, capacity building, oversight, MIS and reporting to State Society and NMMU. Ensuring District compliance with NRLM procurement Manual. Key Responsibilities The broad functions the Procurement Officer are: Operations Management (i) Preparation of Procurement Plan, Procurement/Contract management for goods, works and services at State level and beyond certain ceilings at the district/block level with due diligence. (ii) Prepare and maintain Unit Cost data Base and Item banks detailing names of respected manufacturers, indicative range of machinery / equipment etc. (iii) Prior review and clear bid documents and bid evaluation reports for all goods/works and services procurement planned by SMMU as per delegated valued thresholds within 7 days of receipt Planning (i) Monitor that agencies prepare the annual procurement plan in line with SMMU and district annual work plan. (ii) Help Districts in preparation of Procurement Plan in line with annual allocations. (iii)review and Approve the same towards release of funds. (iv)uploading PPs on SMMU website and report to NMMU. Thematic technical assistance to the Districts and sub district level Training and Capacity Building (i) Orient and train project staff at the DPMU, Block level. (ii) Handholding support to district and sub-district implementation/support structures including CBOs towards building procurement capacity and undertake procurement with due diligence. Monitoring and Evaluation through undertaking or commissioning and managing yearly post reviews of at least 5% of contracts issued by POs. and community procurement carried out by beneficiary institutions. (ii)maintain a Procurement Management Information System (MIS) on all key indicators and generate and share reports with all stakeholders. (iii)maintain a Contract Register and Grievance and Redressal Register and update periodically Knowledge Management and Communication sharing best practices in procurement with NMMU. 236

249 Level Project Management Level Project Management Level Management Structure District Management Office Project Unit One Procurement Associate reporting to District Project Manager directly or to Accounts/ Finance Manager Block Project Implementation Unit Block level Accountant will look after the procurement activities and reporting to Block Project Manager directly. Role of Management Office Responsible for overall procurement plan at District level & compliance with procurement methods/procedures as per NRLM/SPMU guidelines. Responsible for overall procurement plan at Block level and compliance with procurement method procedures as per SPMU guidelines. Key Responsibilities Operations Management Role limited to procurement of goods, services and works within the certain specified ceilings (as specified by the SMMU from time to time) with due diligence. (ii) Prepare annual procurement plan based on need assessment and inputs received from concerned sections for the district, for incorporation in the overall project s Annual procurement plans. Monitoring and Evaluation Maintain procurement related documentation including complaint and grievance redressal register. Operations Management Role limited to procurement of goods, services and works within the certain specified ceilings (as specified by the SPMU from time to time) with due diligence. (ii) Prepare annual procurement plan based on need assessment and inputs received from concerned sections for the block, for incorporation in the overall project s Annual procurement plans. Monitoring and Evaluation Maintain procurement related documentation including complaint and grievance redressal register. Community Based Organization (CBO) Level Producer Organizations A Procurement Committee reporting to the Chief Executive Officer. Each community institution will undertake all procurements required at their respective organizations. The District Finance Manager / Block Accountant will guide these Community Institutions at respective levels Procurement Committee will be responsible for: Operations Management (i) Preparation of annual procurement plan from the business plan consolidated value chain plan (ii) Procure the goods, services and works within the specified thresholds limit with due diligence (iii) Collect the demand note from the community for the procurement of Dealership/Agency (iv) Maintain a panel of suppliers and service providers who are reliable and approachable for various items (vi) Publish and periodically update a rate bank consisting of the prices of all items to be procured (vii)collect market information on various items needed for implementing the business plan like rates, brands/suppliers etc. and ensure incorporation of these details in the business proposals and assist in procurement. Monitoring and Evaluation (i) Maintain procurement related documentation including complaint and grievance redressal register. (ii) Display all procurement on the notice board and make available procurement records for verification by the community members. 237

250 Level Community Based Organization (CBO) Level Management Structure Office Community Development Group(SHGs, VOs BLF) A Procurement Committee consisting of representatives of target beneficiaries reporting to the President. A Social Audit Committee consisting of independent and respected members reporting to larger community as a whole Role of Management Office Each CDG will undertake all procurements required at their respective organizations for completion of subprojects. Key Responsibilities Procurement committee responsible for: (i) Using the subproject plan based on need identification and need prioritization for Just In Time procurement of items (ii) Procuring the goods, services and works within the specified thresholds limit with due diligence (iv) Collect market information on various items needed for implementing the plan like rates, brands/suppliers etc. and ensure incorporation of these details in the final award and management of procurement. Under Monitoring and Evaluation, Procurement Committee will be responsible for (i) Maintain procurement related documentation including complaint and grievance redressal register. (ii) Display all procurement on the notice board and make available procurement records for verification by the community members. Social Audit Committee (SAC) will be responsible for: (i) creating awareness amongst beneficiaries and providers of local social, productive and infrastructure services; (ii) procurement monitoring i.e. bringing in greater transparency in the procurement cycle through active involvement at critical stages need identification, monitoring of contract award, and contract management and (iii) improving efficiency, productivity and quality in the delivery of goods and services through oversight (The District Finance Manager will guide these Community Institutions at respective levels) Record Keeping Concerned Procurement staff at each level should maintain all the records of issue, receipt, opening, evaluation of tenders, award of contracts i.e. all preorder and post-order records in chronological order and store the files in an identified place such that it be retrievable for scrutiny whenever needed at any notice. The records of complaint handling, correspondence with clients, consultants, vendors etc. also should be kept separately and should be retrievable. 238

251 Procurement documents like Purchase order file, open and close order file, vendor record file, rate contract and purchase reports shall be maintained up to the period defined in Financial Management Rules (FMR) of Govt. of India. Purchase order forms (electronic or manual) and standard files for small Procurement can be designed to make the recording of most of the relevant data for small Procurement automatic. The procurement file and the contract administration file can be coordinated by standard practice, so that nothing between tender opening (or proposal receipt) and notice of award is omitted. As part of the filing and record keeping requirements under NRLM for procurement, a Contract wise Procurement File shall be maintained at every implementing entity mandatorily including the following Documentation: Procurement Plan, Need Identification documentation, acquisition planning information, and other pre-solicitation documents; Evidence of availability and approval of funds; Rationale for the method of procurement; Method and List of sources solicited; Independent cost estimate; Specifications, Statement of work/scope of services; Copies of published notices/advertisements of proposed contract action; Copy of the solicitation, all addenda, and all amendments; An abstract of each offer or quote; Comparative statement Minutes of Procurement Committee meeting referring to the particular selection; Notice of award; Notice to unsuccessful bidders or offertory and record of any debriefing; Record of any complaint/protest; Tender, Performance, Payment, or other bond documents, and notices to sureties; Required insurance documents, if any; Contract Copy; and Notice to proceed Procurement Committees The SPMU, DPCU and BPIU will have a Procurement Committee whose members will be trained by the SPMU on procurement aspects. BPIU and DPCU will ensure to get the approval of constituted Procurement Committee from SPMU. The meeting of the Procurement Committee shall be called by DPM at District Level and BPM at Block Level. The role of the DPCU and BPIU in the procurement is limited to the procurement of goods, services and works for the Project at the District and Block level respectively within the threshold limit. 239

252 Chapter - 14 Social Management Framework The SMF of the Bihar SPIP describes the strategy and plan for integrating sustainable social factors into the interventions under the SRLM Methodology The SMF was developed through the following process: Compilation of information from secondary sources: Compilation of available information on (i) the various social indicators of Bihar (ii) the relevant legal and regulatory provisions and, (iii) the livelihood interventions implemented in the BRLP was undertaken. This helped in identifying the key issues, experience and learning in integrating social management in livelihood interventions. Consultation at State and District levels: The development of the SMF followed a consultative process that involved the following: o State level consultations on draft SPIP: Two state level consultations were held (in July 2011 at Patna and Bodh Gaya) to discuss the draft SPIP. Focussed discussions on livelihood interventions and convergence were part of these consultations and the relevant recommendations have been considered in the drafting of this SMF. The participants at the consultations included line department staff, NGOs, MFIs, banks and the BRLPS state and district teams. o Consultation during development of SMF: The team engaged to work on the development of the SPIP, particularly SMF held consultation meetings within the team of BRLPS as well as with selected line departments in various fora. This helped in identifying the strategy for involvement of community institutions in all its activities. o Consultation on draft SMF: The draft SMF has been circulated to all relevant state level line departments (Revenue and Land Reforms, Human resource development, Panchayatiraj, Food and Civil Supplies, Social Welfare and SC & ST Welfare) for feedback before finalization. It helped in finalizing the regulatory requirements and guidelines. Disclosure of the SMF: The SMF has been disclosed on the website of the BRLPS. The Hindi version has also been circulated to all the districts and will be available at the District Public Library and/or the District Magistrate s office Rationale Equality of status and opportunity to all citizens of the country is guaranteed by the Constitution of India which also provides that no individual shall be discriminated against on the grounds of religion, caste or sex. However, the Parliamentary Committee on the Welfare of Scheduled Castes and Scheduled Tribes reported that "even after more than five decades of Independence, the scheduled castes and scheduled tribes people representing over one-fourth of India's population, endure social ostracization". According to the Census 2001, it is found that there has been an increase in both the number and percentage of SC and ST in Bihar. There are and 0.75 million of SC and ST population respectively comprising and 0.91 per cent of the total population in Bihar. It is further observed that SC categories are not homogenous and there are a number of sub-castes/groups within each category. There are altogether 23 scheduled castes in Bihar of which the important ones are Mushhar, Pasi, Dhobi, Bheiya, Rajwar, Bhangi, Batar and others. The tribal population of undivided 240

253 Bihar is grouped into thirty different tribal groups which are now mostly concentrated in Jharkhand state. So far as intra-state variations are concerned, there are large variations in the percentage of population of SC and ST across districts of the State. The SC population is highest in Gaya (29.64%) followed by Nawada (24.09%), Aurangabad (23.48%) and Bhabhua (22.21%) districts. Sheohar district is the district with the lowest population of ST (0.01%) where as Katihar (5.87%) has the highest proportion of its population in the State. However the major proportion of the ST population is concentrated in Katihar, Purnia, Banka and Jamui District. In terms of status of women, high levels of poverty, landlessness, limited livelihoods opportunities, low wage rates, and huge out migration of especially men from the poorest households, place a disproportionate burden on women in Bihar of both reproduction and production functions. High fertility, and maternal and child mortality rates are due to poor access to health services. Rural Bihar has low literacy and awareness levels, especially among the poorest households. Social and cultural practices of child marriages, dowry, and liquor consumption have all added to indebtedness. Migration and trafficking among girl children from poor households is on the increase while boys are also trafficked for labor in hazardous enterprises. High occurrence of seasonal migration among men leads to a number of women headed households in the rural areas subject to exploitation, food insecurity and vulnerability to HIV Outreach under the different Social Benefits Programme Education In the state, the benefits of growth have not reached the socially disadvantaged groups primarily comprising of Schedule castes and Schedule tribes. The following comparative situation presents the story of deprivation amongst the excluded groups with respect to parameters such as educational attainments, health indicators, income, employment status, land ownership etc. Table: 14.1 Educations Status of SC Status of ST All Indicators Person Male Female Person Male Female Person Male Female Non Literacy rate of Adults %of School Attending children - Class V %of School Attending children -Class VIII As in the case of accessibility of elementary education, there is also a significant disparity across social groups in respect of children at school. The percentage of children in the 6-11 age groups (Class I-V) and age groups (Class VI-VII) attending school was relatively lower among SC/ST than the other community (See Table above). Broadly, children belonging to these socially excluded communities specially SC were out of school; this means these community children were either engaged in low level economic activity or ere sitting ideal. Adult members, particularly female adults of the socially excluded groups could not avail benefit from literacy campaign. The school attendance of the socially excluded group children is better in urban 241

254 areas than rural areas. (Source: Census 2001). This data, thus, clearly indicate that the incidence of education deprivation is higher among children belonging to SC and ST communities than the children belonging to other communities. Before planning on health intervention of the project with the view of inclusion of socially discarded group, we should know status of the group in comparison with others. In following indicators the status of SC and ST is as follows: Table: 14.2 Statuses of SC, ST, OBC and Other Castes. Sl. Indicators SC ST OBC Others Total 1. Total Fertility Rate Infant Mortality Rate Family Planning Delivery at Home Source: NFHS II and III The indicators itself tell the story of exclusion of these social groups from the mainstream of development. Including these health indicators, Nutrition status is critical for the women for their own health as well as the health of children. Across social group in Bihar, the percentage of children categorized as undernourished was higher among SC community. As per data of NFHS II report 71.8% of women are Anemic in compare to 67.4% of OBC and 64.1% from others cast. Socially excluded groups are also disadvantaged in term of household amenities, landholding and others. Low level of living in economic terms including level of consumption also indicates the same. NSS consumption expenditure survey data clearly indicate that In Bihar, average consumption expenditure is Rs and 58% of rural population is below this level and in case of SC it is 80.4%.According to census 2001 report in Bihar, about per cent of households did not have electricity connection. The percentage of households without electricity is highest among SC per cent followed by ST per cent, and More than 50 per cent of the ST and SC households live in a single room and about 1to 2 per cent do not have even that single room. A Parliamentary Standing Committee noted that "generally SC/ST people avoided reporting crimes and fighting cases just to escape police harassment and fear of cases languishing in courts for long. A study conducted by the National Commission for Scheduled Castes and Scheduled Tribes in 1990 pointed out that various factors were responsible for atrocities. These include economic causes such as land disputes, land alienation, bonded labour, indebtedness, non-payment of minimum wages as well as noneconomic causes such as caste prejudice and practice of untouched ability, deep rooted social resentment, political factions on caste lines and refusal to perform (formerly traditional) services like digging burial pits, arranging cremations, removal of the carcasses of dead animals and beating of drum, etc. Among Indian states, Bihar is fifth and eleventh in terms of crime against SC and ST respectively. In 2007, 2786 and 65 incidents of crime against SC and ST were recorded in the State (Table 11.23). The crime rate (i.e. number of crime incidences per lakh population) was and 7.48 for SC and ST respectively in Bihar. Crime corresponding figure at all-india level was and The crime rate against SC/ST in the State is thus higher than the all-india average. Mostly, socially excluded society of women suffers from many forms of discrimination and deprivation. These sections of women are victimized by upper castes because they lack the social 242

255 position to stand up for their rights individually and because assaulting or raping them reinforces the subordination of the whole excluded community to upper castes. Socially excluded women do not know their rights and are too powerless individually to hold the judiciary and the executive accountable for enforcing protective law. The problems of social inequality and class divide in a country like India, particularly its state Bihar, with heterogeneous groups and sub-socially excluded group of women suffers from many forms of discrimination and deprivation as compared to other groups of women. This Groups needs to be recognized and resolved by all available democratic measures including special legislations to deal with particular acts constituting offences against such excluded section of the society. "Scheduled castes and scheduled tribes" are two such identified social groups, article 46 of the constitution of India expressly provides that the state shall promote the educational and economic upliftment of the weaker section of the society, in particular of SC and ST with special care and protect them from injustice and all from of exploitation Proposed Initiatives The following initiatives would ensure total inclusion of all poorer irrespective of their caste, religion, geographical location etc: Capacity Building of all Project Staff: To reach the benefit to all SC and ST first, will be the Non Negotiable for all project team. All grass root team will be trained on mobilisation process for those who need special attention such as Disabled, ST, SC and Minority. All community Cadres, CRPs, VRPs, Health Worker and all will be equally trained on the issue and their performance will also be judged on the basis of Remote Hamlets Coverage, SC & ST Coverage, Disable coverage and others Initiative to ensure the betterment of their life in term of improvement in status of Health and Education: Education: This is one of the common visions of every mother and they contribute their best to reach their goal, but due to lack of confidence and lack of best practices within them is a major hurdle in attaining their motive. It would, therefore, be the responsibility of the project and community to create best practices. With some interventions such as to provide support with tuition class / capacity building of existing tutors / send some students outside to districts or state level for better coaching facility and others new innovative idea will be practiced by the VOs. For good facilitations and fund support project will design fund support in form of Social CIF. Good practitioners in community education will be hired by the project to support the community. Health and Nutrition: Successful piloting of regular counseling and Mobile health support to the community will enable to improve the health status of poor. Through impact assessment of the interventions done by BRLPS, the conclusion is that in 40 villages no mothers have died during pregnancy or after child s birth. Three PNC and ANC made a huge difference in Child and mothers health. As a rough estimation, the health expenditure has been reduced by Rs to 4000 annually. 243

256 To ensure the reduction in IMR and MMR and to check the flow of health expenditure at HH level there would be a partnership with National Rural Health Mission to establish Mobile Health Clinic at community level and a community Cadre on Health will support the activity with the support of Village Organisation. Capacity Building of Community Cadre and Staff: Project will take support from expert agency to educate the Cadre and Staff on RCH, Community health and general health problems. Cadre will also be trained on Nutritional behaviour of the poor especially for pregnant and lactating mother. Data shows that in comparison with others, fertility rate among the SC is high and percentage of Family planning is low as compared with others. The project, therefore, will give special attention on family planning. Capacity Building of Community and Development of Cadre on rights: State s status on lodging the complaint against atrocity is very less among the SC and it has also been observed that in case of Women very few cases have been registered. 59 per cent of married women in Bihar suffer domestic violence with 50 per cent of wives enduring physical violence, 19 per cent sexual violence, two per cent emotional abuse and 59 per cent experiencing both physical and sexual violence. Towards reduction in Domestic violence a Community Cadre would be trained to support the members and ensure that NO WOMEN WILL BE HARRASSED. These cadres will also be trained on process of filing the case and other necessary support. If there is need of fund, VO will support the victims by vulnerability Support Fund. These community cadres are basically the counselor for both sides. For educating the community on their rights, project will develop the IEC and insure that information reaches to all. Project will hire or tie up with agencies who have some experience on working in these area. Some agency such as, Helpline An Initiatives of Women Development Corporation of Bihar, SERP- An Initiatives of Andhara Pradesh, have done an excellent work to support the victims Innovative Award and rewards Any programme or activity that has been designed by the specialist team either from Institution Building, Capacity Building, Micro Finance, Livelihoods or Social Development, every deprived section will get benefitted through programme will be a prime agenda. An award would be designed by the project in such a way so that the deprive sanction must get benefit of the programme.any agency will also be part of the nomination. Awards should be designed on the basis of: Remote village Coverage: No. of Beneficiaries covered, No. of hamlets covered etc. Coverage of Beneficiaries from SC and ST and disabled. No. Of Social Capitals are being developed from SC and ST and disable. Any new innovation 244

257 Vulnerability Reduction Grant fund When we mobilize the poor in mass level, it is experienced that most vulnerable and poorest are left back. Some unavoidable reasons compel the poor to withdraww from the membership of SHG or prevent them to join the group. Due to elevated poverty or any disaster in personal life or loss of the bread earner of the family or lack of regular income, a member fails to continue savings regularly. This fear of humiliation of irregularity in saving results into members avoiding participation in the group meetings. As a first, to cater to this vulnerable group the project proposes a short term soft loan to care to a specificc group of members. We are promoting self reliant and strong grassroots level people s federation (VO); it will be a major responsibility of these institutions to support these Households. There will be a need to design a special fund for the SHGs federation for caring specific group of people. This small grant found will be reserved at the Federation level and on behalf of member fund would be deposited at SHGs in form of saving or loan installment. It will be treated as grant for SHG as well as the individual needy member. This provision would boost needy members zeal to remain intact in the SHG and would act as an assurance for new member to come into the ambit of SHG and check the tendency of drop out from the SHG. In addition of this proposed grant the project is also proposing a soft term loan for members. There will be some amount kept at federation (VO) level. This fund may be utilized as Bridge Finance. Benefit of govt. sponsored programme like MNREGA, PDS and Social Security Pensions etc usually materialized in gap/or a period of time. This gap or period of time compels the most destitute member to move towards deep penury. Hence saving thesee poorest/needy the federation must have the provision of a fund as bridge finance whichh would support the needy member in need. Amount given to the member would be recovered back to VO through SHGs in certain period with small interest. To look after all thesee programmes, following institutional model is proposed. Figure : 14.1 Institutional Model of SMF SPM - SD SPM Entitlements M - SD M - Entitlement Block Level Spear Head Village Organisation Village Organisation Village Organisationn Village Organisation 245

258 Community Investment Support. Poverty, food insecurity and other vulnerability criteria will be applied in selection of villages/groups for (i) community food, health and nutrition centers; (ii) community-managed food credit and distribution system; (iii) health risk mitigation fund; and (iv) small grants for destitute, old, infirm and disabled household for emergency food and health purchase; and establishment of these mechanisms. Consultations with key stakeholders and social screening of plans involving rural enterprises and value chains for potential land donation or other adverse impacts will be undertaken. Social accountability mechanisms (e.g., social audits, performance reports/scorecards, community notice displays, grievance hotlines, call centers) will be designed and implemented at community level. Large scale pilot programs on livelihoods and public services, CSO interventions in conflict areas, and innovations and partnerships will be based on consultations with the targeted beneficiaries, particularly women and youth from tribal areas. The inclusion of the identified poor households in the institutions, interventions and partnerships will be monitored by the SMMUs Tribal Development Plan The Social Assessment undertaken for the JEEViKA project clearly brought out that rural landless and those belonging to the Scheduled Caste (SCs) and also Scheduled Tribe (STs) community form an integral part of poverty-stricken and marginalized groups. Access to education and other capacity building inputs, sources of production, technology and institutions define and determine level of poverty as they are important tools to ensure access and control over opportunity and productive assets. The findings further indicated that the poor can open up, build capacity for articulation and innovation given an enabling environment and participative frame work. The tribal population in the state is 0.9 percent of the population and of the six project districts of Muzaffarpur, Nalanda, Gaya, Khagaria, Madhubani and Purnea, it is only Purnea that has Scheduled Tribe (ST) population of 6 percent of the total population. The socio-economic data for the STs reflect a status very similar to the SCs and marginalized sections of the Bihar rural society. However, in order to gain a better understanding of the ST population, a separate study was commissioned which involved wide ranging consultation with ST population and their representatives. The STs in Purnea possess primitive traits, distinctive culture, geographical isolation, shyness of contact and backwardness. Other key findings were: The tribal population brought from the erstwhile Santhal Paragana to clean the forest and make the land cultivable, were subsequently given plots of land to cultivate in lieu of the labor they offered to the land lords. After independence a system of temporary settlement of land (called Sikemy ) was worked out and given to some of the tribal families but the land rights remained illusive. The seventies saw skirmishes between the tribal communities and the landlords including court cases. The tribal communities have deficient land base and do not have access to technology and inputs to turn their land into productive asset. Tribal are not part of any social or economic institutions. As tribal population constitutes less than one percent of the state s population, the state has no special programs nor is it a beneficiary of any central programs for tribal. 246

259 Key Elements of Tribal Plan The tribal strategy has recognized and incorporated certain key elements related to Institutional strengthening and development, endowment/asset and skill development, capacity building, enabling inputs and policy influencing inputs. They are Table: 14.3 Key Elements Key Elements Key considerations and suggested interventions Information Inclusion Investments Implementation Project information will be made available in the tribal villages and to tribal families in a culturally sensitive manner at the same time keeping in view the literacy levels and other key characteristics of tribal habitations. Local artists and local art forms to be used. All ST families in villages with both dispersed and concentrated populations, will be organized into SHGs. Villages with large ST population will have exclusive tribal SHGs. Strengthening of social institutions of the Tribal community along with federations will be taken up. Local tribal traditions and leadership will be involved in the process of institutions building Investments will be supported in land, which many tribal families own, along with improvements in production practices, productivity and marketing. Economic empowerment through improved livelihoods and incomes will enable Tribal families their de jure rights on agriculture land which they currently possess based on temporary settlement into de facto rights. Support will also be sought from the District Administration to strengthen land rights. Support for skill development of Tribal youth Potential indigenous skills to be explored for other livelihoods opportunities Staff working in villages with significant tribal population to receive sensitization trainings Preference for community members who are sensitive to the needs of Tribals to be given preference for para professionals Partnerships with Technician service providers individuals and organizations that have experience working with Tribals Convergence with government programs for tribals to enhance benefits The overall Monitoring and Evaluation unit of Jeevika through a) input and output monitoring, b) process monitoring, and c) impact evaluation would ensure effective implementation of Tribal Development Plan. Implementation progress will be based on disaggregated data for the ST population, their institutions and livelihoods Social Inclusion Plan The SPIP would support Social Inclusion Plans (SIPs) which would cover BPL households, scheduled castes, people with disability, migrant and agriculture labor and other vulnerable groups with specific measures for tribal groups. These measures include: (i) regular consultations with tribal groups and their community institutions, related government departments and research agencies, and NGOs during state assessments and the village-level community mobilization processes; (ii) identification and prioritized targeting of the tribal people and areas; (iii) tribal representation and 247

260 participation in community institutions, executive positions and committees; (iv) informed and locallyadapted project norms and mechanisms for project processes and livelihood assistance; (v) support to traditional grievance redress mechanisms; and (vi) periodic community feedback. The social development staff in SMMUs, DMMUs, and BMMU/PFTs will be trained in socially- and culturallysensitive ways of working with tribal people. (Involuntary Resettlement) is not triggered as involuntary land acquisition and land purchase are not envisaged and are included in the project s negative list. Any community project that involves voluntary land donation would follow consultative and transparent procedures that substantiate the voluntariness of the donation and informed consent of the donor. The consent of the land donor will be minuted in the resolutions of the Federation/SHG. Any voluntary land donor from the vulnerable groups will be eligible for livelihood and other social assistance from the project or Gram Panchayat with the agreement of the Federation. All large pilots on rural enterprise and value chain will be subject to screening by the BMMUs/PFTs for any adverse social/safeguard impacts. The Social Inclusion Plans will lay down the process and templates for social screening Community Based Gender Strategy and Action Plan GoB is committed to women s social, economic and political empowerment. Bihar is the first state in the country to reserve 50% seats for women in the three tiered panchayat bodies and also passing a legislation requiring 50% of the elected seats in municipal corporations to be reserved for women. The GoB sees Self Help Groups (SHGs) not only as an important vehicle for social and economic empowerment but in addition, the GoB s Eleventh Five Year Plan proposes to use the network of SHGs to make service delivery effective and accountable. The World Bank s gender action plan promotes gender equality as smart economics, stating that women s economic empowerment is not only a question of rights but the benefits of their empowerment actually benefits their families, communities and national development efforts, thus putting poverty reduction on a faster track. The objective of the gender strategy is to advance the empowerment of women so they can fully participate in the larger growth and empowerment strategy of the state. The project aims to achieve the following gender related goals: Strengthen poor women s asset base, increase livelihoods opportunities and income. Reduce gender gaps in human development: education, health and nutrition. Expand access of women to gender specific needs such as child care. Increase participation of women in local self government and local governance. Increase access for poor women to social protection schemes and entitlements of food security, healthcare, child care and employment. Enhance the skill base of literate or semi literate young women and link them to jobs. Reduce exploitative migration and trafficking of young girls. Increase awareness of HIV and access to HIV testing and counseling. 248

261 Table: 14.4 Community based Gender Action Plan in the project will include the following- Objectives Strengthening poor women s social capital and skill base Actions Identification of poor women, especially the most vulnerable women headed households, widows, destitute, sex workers, aged, orphan girlsduring the identification of the poor Mobilizing poor women into SHGs and federations; and into livelihood groups Providing awareness on entitlements, legal and political rights Awareness and support on issues related to dowry, lack of mobility and domestic violence Building skills of enterprise management, value addition, technical training to enable them to interact on fair terms with the market Providing women opportunities for livelihoods enhancement and asset creation Promoting grass root leadership of women Improving access to reproductive health and day care Increase awareness of legal literacy Proving access to the community investment fund both for assetization as well as a seed fund to promote credit worthiness of women s groups Increasing access to financial services through promoting bank linkages with SHGs and federations Identifying and training community mobilizers, community resource persons, para professionals and health workers Providing exposure visits to community leaders in other states Office bearers of community organization at all levels to be women Training of health outreach worker in partnership with NGOs Expanding the network of decentralized health care clinics in project districts Improving access to ANM workers, public drug schemes and PHCs Improving access to anganwadi and ICDS schemes through public and NGO partnerships Awareness campaigns regarding entitlements and HIV Promoting household food security Reduction of exploitation of women in organized sector, reducing child trafficking and child labor Engendering Project Management Utilization of CIF for food security programs managed by women Linking women with PDS coupon systems Awareness building and sensitization of women to their rights Promoting self employment Sensitizing teachers in schools, introducing accountability systems to increase enrollment rates in schools Setting up crèches and bridge schools through partnership with NGO or public programs in project areas Affirmative action in favor of women being recruited as state, district and field Staff Sensitization of all staff towards gender issues 249

262 14.8 Consultation and Participation During implementation, primary stakeholders, community institutions, project staff, other government departments, partner agencies and NGOs will be consulted as follows: Community level consultations with tribal and non-tribal groups during: the state poverty diagnostic exercises, village entry and participatory assessment processes, social mobilization and institution-building processes, preparation of plans for microcredit, livelihoods and rural enterprises, and innovation/piloting proposals; District/Block level consultations with DMMUs, government departments, DRDAs, partner NGOs, PRIs, training and resource agencies, and community institutions during project implementation; State level consultations with district administrations, government departments, partner NGOs, training and resource agencies, some community institutions during the state poverty diagnostic exercise, perspective/annual planning, project review meetings and learning events; 14.9 Social Monitoring A social observatory model of concurrent monitoring will be adopted to guide the social performance and impact of the project, with inputs from community institutions. The monitoring and evaluation system will include socially disaggregated monitoring and reporting of beneficiary participation, capacity building, livelihood assistance, partnerships and other interventions, with a particular focus on tribal and other disadvantaged social groups and areas. Community institutions will be trained on use of Participatory monitoring methods like user satisfaction rating, citizen report card, community scorecards etc. Qualitative and household surveys will be undertaken to assess social, economic and financial changes among the project beneficiaries. Social learning forums would also be organized on an annual basis Grievance Redressal Mechanism The Governance and Accountability Framework (GAF) of the Project includes grievance redress mechanisms at the national, state and community levels. At the community level the grievance redress system would consist of: (i) information provision on the grievance redress system; (ii) recording of grievances raised by Federations and support received from BMMU/PFTs (or higher levels when required) to resolve the grievances; (iii) periodic discussion on the subjects of grievances between the BMMU/PFT and the Federations/SHGs to improve the system and prevent further grievances. SD staff in the management units will monitor grievances through CRPs, project staff and NGOs. Training modules on grievance handling will be part of the core curriculum for project staff. 250

263 Chapter - 15 Environment Management Framework The Environmental Action Plan (EAP) of the Bihar SPIP describes the strategy and plan for integrating environmental sustainability into the interventions under the SRLM Methodology The EAP was developed through the following process: Compilation of information from secondary sources: Compilation of available information on (i) the environmental status and issues of Bihar 17 (ii) the relevant legal and regulatory provisions and, (iii) the livelihood interventions implemented in the BRLP was undertaken. This helped in identifying the key issues, experience and learning in integrating environmental management in livelihood interventions. Consultation at State and District levels: The development of the EAP followed a consultative process that involved the following: o State level consultations on draft SPIP: Two state level consultations were held (in July 2011 at Patna and Bodh Gaya) to discuss the draft SPIP. Focussed discussions on livelihood interventions and convergence were part of these consultations and the relevant recommendations have been considered in the drafting of this EAP. The participants at the consultations included line department staff, NGOs, MFIs, banks and the BRLPS state and district teams. o Consultation during development of EAP: The consultant team engaged to work on the development of the EAP held consultation meetings with the BRLPS state and district team as well as with selected line departments (rural development, agriculture, fisheries, forest department) on integration of environmental sustainability into livelihood interventions. This helped in identifying the strategy for involvement of community institutions in natural resource management and in ensuring compliance with the regulatory requirements. o Consultation on draft EAP: The draft EAP has been circulated to all relevant state level line departments (agriculture, animal husbandry, minor irrigation, forest, fisheries and pollution control) for feedback before finalization. It helped in finalizing the regulatory requirements and the environmental guidelines for the various livelihood sectors. Disclosure of the EAP: The EAP has been disclosed on the website of the BRLPS. The Hindi version has also been circulated to all the districts and will be available at the District Public Library and/or the District Magistrate s office Rationale and Objectives Rationale of the EAP The NRLM mission statement spells out a clear focus on achieving an appreciable improvement in livelihoods on a sustainable basis, through building strong grassroots institutions of the poor. The focus of this EAP is to contribute to the environmental sustainability of the livelihood enhancements undertaken by strengthening environmental management by the institutions of the poor. 17 This is based on the State Profile of Bihar in the Environment Assessment and Environment Management Framework for the National Rural Livelihood Project (NRLP). 251

264 Objectives of the EAP Contribute to livelihood security through better of management of natural resources by: o Facilitating adoption of environment-friendly livelihood practices and activities. o Institutionalizing environmental management in the community institutions supported by the SRLM. Facilitate compliance with relevant environmental laws/regulations of the Government of India and the Government of Bihar, with the NRLP s Environmental Management Framework and with the World Bank s Safeguard Policies Environmental Status and Issues in Bihar This section presents a brief overview of the environmental status and issues in Bihar. A detailed profile of the state is presented in Annex 1. Agriculture: Of the total geographic area of lakh ha, about 60% is cropped. About 35% of the net sown area is cropped twice. The crop productivity in the state is one of the lowest in the country. The net irrigated area is lakh ha (61% of the net sown area). Of this, 64% is irrigated by tubewells and 27% is irrigated by canals. The use of nitrogenous fertilizers in Bihar is much higher than the national average (also, the N : P : K ratio is about 8 : 2 : 1 compared to the optimum ratio of 4 : 2 : 1 recommended for Indian soils). Fodder resource: The area under pastures and grazing lands is extremely scarce (0.18% of the total geographic area). Gaya has the maximum area under pastures and grazing lands at 2192 ha. Of all rural households owning cattle and/or buffalo in Bihar, more than three-quarters are either landless or have less than 1 hectare of land. Sheep and goats tend to be even more concentrated among landless and marginal rural households. The estimated green fodder production from forests, permanent pastures, grazing lands and cultivated areas has declined from lakh tonnes in to lakh tonnes in Dry fodder production (crop residue of cereals, pulses and oil seeds) over the same period declined from lakh tonnes to lakh tonnes. Wastelands: Wastelands are spread over an area of 6841 sq.km (7.26% of the total geographic area). Of the total wasteland in the state, land with scrub (dense and open) accounts for 3715 sq km, waterlogged area (permanent and seasonal) accounts for 1564 sq km and degraded forest land with scrub accounts for about 1200 sq km. Jamui, Banka, West Champaran and Katihar have the maximum area under degraded scrub land. The districts most affected by permanent waterlogging are Saran, Siwan, Vaishali and Muzaffarpur and those affected by seasonal waterlogging are Purnia, Madhepura and Saharsa. Forests: Forest area is limited (6.6% of the total geographic area). The districts with more than 50,000 ha under forests are Bhabua, Jamui, West Champaran, Gaya, Rohtas and Nawadha. The state has 1 national park and 11 sanctuaries comprising a protected area of sq km. Floods and Drought: Bihar is the most flood prone state in the country with % of its geographical area (68.80 lakh hectares) affected by floods. The flood situation is most severe in the northern plains of Bihar. The flood prone districts are East Champaran, West Champaran, Sitamarhi, Madhubani, Begusarai, Saharsa, Supaul, Madhepura, Purnea and Katihar. Extensive low lying areas called tal are found around the river Ganga in the districts of Patna, Begusarai, Khagaria and Bhagalpur. The districts of Saran, Darbhanga, Patna and Muzaffarpur have a higher probability of drought (15% or more). 252

265 Surface water: The surface water resource in the state includes ha of ponds and tanks, 9000 ha of oxbow lakes, 7200 ha of reservoirs, 3200 km of rivers and 1 lakh ha of riverine and other flood plains. Groundwater: The stage of ground water development is 39%. None of the blocks in the state are classified as Over Exploited, Critical or Semi-critical with respect to the groundwater status. The stage of groundwater development exceeds 50% in Nalanda, Jehanabad, Begusarai, Siwan, Saran and Patna. Water quality: Groundwater quality in parts of the state is affected by high Fluoride (4157 habitations), Iron (18673 habitations) and Arsenic (1590 habitations). Cooking energy: The majority of rural households in the state depend on firewood (49%) and dung cake (33%) to meet cooking fuel requirement. The key environmental issues in the state mapped to the livelihood activities of the rural poor are presented in the following table. Table 15.1: Key livelihood activities and associated environmental issues in Bihar Livelihood activity Environmental issues Agriculture Imbalanced use of chemical fertilizers Over 1550 sq km of water logged area Over 70% of flood-prone area Livestock Limited fodder resources Household management Poor water quality in habitations (Iron, Flouride and Arsenic) High dependence on cooking fuels that cause indoor-air pollution BRLPS experience in integration of environmental sustainability into poverty reduction efforts Overview of BRLPS experience Promotion of eco-friendly agriculture practices in production enhancement technologies: The BRLP has successfully piloted and scaled up the System of Rice Intensification (SRI) in Paddy, and subsequently, replicated the principles in wheat to enhance productivity with nearly 1,00,000 SHG farmers. This has resulted in an 87% increase in productivity in paddy and 97% increase in productivity in wheat. The environment-friendly practices promoted as an integral part of the SRI and related interventions are: use of biofertilizers, use of vermicompost and organic manure, incorporation of plant biomass into soil through interculture operations, irrigation management, etc. BRLP has also piloted the application of methodologies similar to SRI in other crops such as Green Gram and Rapeseed with around 500 SHG farmers. Based on the BRLP experience, the Government of Bihar has launched a programme SRI Kranthi for promotion of SRI and SWI in 10% of paddy area and 20% of wheat area in the state. Creation of community managed extension system: The BRLP has piloted and successfully scaled up a community managed extension system that has played a key role in implementation of the agriculture interventions. This system involves the creation of a cadre of community professionals called Village Resource Persons (VRPs). The VRPs are local youth identified and appointed by the primary SHG federation (the Village Organization or VO) to carry out the extension work for the intervention. The VRPs are given intensive training and on-the-job technical guidance. Each VRP 253

266 provides services to 30 to 120 farmers. A recent study by the BRLP on the effectiveness of VRPs noted that 92% of the SHG farmers were satisfied with the VRPs support services. In 2011, around 2100 VRPs have been identified by the VOs in 1394 villages. Partnerships with NGOs for technical support: The BRLP has successfully engaged the services of competent NGOs for providing technical support services to the agriculture interventions. The training module for VRPs was developed and delivered by PRADAN and ASA, the technical support partner agencies. On-the-job technical guidance to the VRPs is also provided by Subject Matter Specialists (SMSs) appointed by the technical support agencies. There has also been an evolution from a stage of nearly full technical dependence on the support agency (in the pilot phase) to a stage where SMSs are now directly appointed by the BRLPS Learning from the BRLP experience The nature and scale of livelihood activities undertaken by individual households is environmentally benign and small in scale, the potential negative impacts are also localized and manageable. The scope for environmental management must not be limited to the mitigation of negative impacts. Rather, the focus must be on promoting livelihoods that are beneficial to the poor both economically and environmentally. Environmental management will work only to the extent that it is integrated with the key livelihood interventions. This integration must happen in all spheres of project activity: SHG microplanning processes, livelihood interventions, capacity building efforts, staff responsibilities as well as in monitoring mechanisms. Based on the above experiences and learnings, the BRLPS is in a position to design and implement a relevant, practical and ambitious EAP Strategies for integration of environmental sustainability The key strategies for integration of environmental sustainability into the poverty reduction efforts are as follows: Integration into Livelihood Interventions Scaling up of the environment-friendly interventions piloted/scaled up under BRLP Integration into the new livelihood interventions to be initiated Piloting and scaling up of new Green Opportunities Integration into Convergence Interventions Piloting and scaling up of Natural Resource Management Plans by VOs and convergence with MNREGS Facilitation of compliance with regulatory requirements Integration into Capacity Building Interventions Piloting and scaling up of expansion of VRPs expertise and role into Green VRPs Integration of relevant EAP elements into all training programmes for SRLM staff Integration of relevant environmental management guidelines into all training programmes for community institutions including community extension workers 254

267 Integration into Monitoring Assessment of impact of the interventions on the natural capital as part of the impact assessment studies Community monitoring Internal monitoring by SRLM team The detailed description of the strategies follows: Integration into Livelihood Interventions Scaling up of the environment-friendly interventions piloted/scaled up under BRLP As mentioned earlier, BRLPS has experience of piloting and scaling up integration of environmentalfriendly activities within livelihood promotion interventions especially in agriculture under the BRLP. Proven environment-friendly interventions will be scaled up through the following programmes: Comprehensive agriculture intervention: It is proposed to reach 6.5 million households with valuechain interventions on 1.04 million hectares of land (nearly 10 kattha per household). This intervention will include promoting environment-friendly practices/technologies through scaling up of the following activities already piloted/scaled up under the BRLP: Participatory Varietal Selection and Promotion (PVSP): Promotion of seeds that cater to the poor farmer s preference for seeds with low input cost, high pest resistance, high drought resistance, etc., which translate into environmental benefits of lower requirement for external chemical inputs (fertilizers and pesticides) and irrigation. Productivity enhancement technologies System of Rice Intensification, System of Wheat Intensification and System of Crop Intensification (for all the pulses, oilseeds and vegetable crops): Integration of environment-friendly farming practices such as use of organic manures, vermicompost, biofertilizers, intercultivation, irrigation channels, etc. Community managed sustainable agriculture: Promotion of non-chemical pest management (NPM) based natural farming which is otherwise called as community managed sustainable agriculture will be demonstrated and scaled up to 25,000 women farmer households. About 10,000 women farmers will be supported to establish vermicompost pits (that will cater to at least 75,000 women farmers belonging to SHG households) Integration into the new livelihood interventions to be initiated Comprehensive agriculture intervention: This intervention will include promoting environment-friendly practices/technologies through the following new activities: Integrated farming: Promotion of mixed and continuous cropping in 36x36 metre plots of marginal, small and landless (leased land) farmers incorporating organic input application. Community managed irrigation system: Promotion of joint management of groundwater it is planned that one borewell will be provided for a group of farmers, with submersible or 255

268 diesel pump depending on the depth of the groundwater table. This initiative will incorporate features such as regulation on indiscriminate use of water, crop water budgeting, efficient irrigation methods, etc. Access to market Women Farmers Producers Companies (WFPCs): The WFPCs will cater to the need for access to organic inputs such as vermicompost and the different ingredients of non-chemical pest management. Dairy intervention: It is envisaged that 37,50,000 SHG members (having or intending to have milch cattle) will be organized into 37,500 Dairy Cooperative Societies. This intervention will include promoting environment-friendly practices/technologies through the following activities: Animal nutrition: Fodder cultivation will be emphasized by training and exposure visits, provisioning of fodder seed and facilitating the VOs and individuals to take contract or individual farming in the waste lands or tal area to produce green fodder. Small ruminants intervention: This intervention will include promoting environment-friendly practices/technologies through the following activities: Cluster level goat breeding farm: Establishment of 25 training cum demonstration centres for goat rearing in each district which will provide in-situ demonstration and hands-on practical training on improved quality goat rearing including fodder management. Goat Rearers Association (GRA) and Producers Company (GRPC): Goat rearers from 5 to 10 villages in the proximity of each training cum production center will form a GRA. After about a year of functioning, the GRA will be motivated to develop private wasteland and homestead land through planting fodder trees, develop privately owned barren and agricultural land with mixed plantation. Situation-specific models of such plantation and fodder crop cultivation will be developed in consultation with district horticulture department. All the GRAs will be later federated into district level GRPC whose role will include facilitation of development of grazing land by the GRAs on selected sites. Fisheries intervention: This intervention will include promoting environment-friendly practices/technologies through the following activity: Fishery Extension System: Best practicing fisher women / men will be identified and trained as Fishery Resource Persons, who in turn provide extension support to the fishers. This extension support will facilitate adoption of practices such as selection of appropriate species for culture, correct stocking density, proper feeding schedule, etc., with positive environmental outcomes (avoidance of invasive species, prevention of eutrophication, etc.) Piloting and scaling up of new Green Opportunities The NRLM EMF proposes that each state as part of preparing its SPIP should identify opportunity sets that are based on sound environmental practices/technologies and proactively promote them to ensure the environmental sustainability of livelihood activities. In addition, it also seeks to identify and promote livelihood opportunities that are based on such sound environmental practices /technologies. This section presents a set of Green Opportunities for Bihar under NRLM. 256

269 The key livelihood interventions proposed under the SPIP are mainly based on Comprehensive Agriculture Intervention, integrating dairying with agriculture and providing alternate cooking energy solutions to help wean away households from using cow dung as fuel and instead use it as manure. Under comprehensive agriculture intervention, use of vermicompost, vermiwash, biofertilizers and jeevamruth are important inputs that would be promoted to ultimately reach 6.5 million households. Community managed irrigation systems would be promoted, especially in areas (south Bihar, especially districts adjoining Jharkhand) where groundwater has to be extracted through deep borewells. Dairying would be promoted to reach upto 3.7 million households who would be organised into 37,500 dairy cooperative societies. Vermicomposting would be promoted through 10,000 households so as to market it to 75,000 farming families. Since most of the households (33%) in Bihar depend on cow dung cakes as a primary fuel to cook their meals, the SPIP is proposing to try out alternative technologies that would not use cow dung cakes as fuel. In addition, it is also proposing to integrate biogas plants with vermicomposting pits so that a household could use cow dung as a fuel to cook (biogas) as well as produce biogas slurry (by-product of biogas production) which would form the input for vermicomposting. Accordingly, based on an analysis of the livelihood activities proposed in the Bihar SPIP, a set of Green Opportunities that complement and supplement them have been identified in the area of sustainable agriculture, irrigation and renewable energy. This section presents the Green Opportunities set for Bihar for implementation under NRLM. The details of these Green Opportunities are provided in Annex Refer to the document: Green Opportunity Set for Proactive Intervention for Ensuring Sustainability of Livelihoods by SC Rajshekhar (September ). 257

270 Table : 15.2 List of Green Opportunity Sets Proposed Sl. Name of Project / Intervention / Technology Name of Organisation Description of Project / Intervention / Technology Livelihood Area Coverage Area 1 Scaling-up and organizing sale of vermicompost, vermiwash, jeevamruth, etc. through VO/Federation/Farmer Producer Company 2 Tree-based Farming 4 Affordable Drip Irrigation Technology Intervention (ADITI) BRLPS Bharatiya Agroindustries Foundation (BAIF) & BAIF Institute of Rural Development Karnataka (BIRD-K) International Development Enterprises, India (IDE-I) Currently, these products are being produced and marketed at SHG/Vo level. To gain scales of economy, it would be useful to produce it in a decentralized manner but market it through a Federation or Farmer Producer Company. Innovative use of land to ensure multiple crops in rainfed conditions that meet food, fuel and fodder requirements of a small farmer Low cost alternatives to high cost conventional drip technology Agriculture Agriculture Agriculture - Irrigation Throughout Bihar Parts of Bihar where dry land farming is practiced. Especially southern Bihar, areas adjoining Jharkhand Dry land areas of Bihar. Areas where community managed ground water irrigation systems are being proposed 5 Eco-tech based community enterprise JRD TATA Eco-technology Centre, MS Swaminathan Research Foundation, Chennai Demystification of bio-technology, its adaptation for manufacture and marketing by women SHGs, leading to formation of a community-based eco-enterprise Agriculture- Chemical-free inputs All over Bihar 6 Parampara Herbal Producer s Company Foundation for Revitalisation of Local Health Tradition (FRLHT) Use of low cost local veterinary medical knowledge to identify, test and market products to treat diseases of dairy animals Animal husbandry All over Bihar, especially where there is a greater concentration of dairying activities 258

271 Sl. Name of Project / Intervention / Technology Name of Organisation Description of Project / Intervention / Technology Livelihood Area Coverage Area 7 CER/VER Financed Biogas+ Projects SKG Sangha Innovative use of CDM to part finance promotion, installation and maintenance of biogas+ vermicompost plants Renewable Energy All over Bihar, wherever biogas cum vermicomposting units would be set up 8 Light A Billion Lights (LABL) The Energy & Resources Institute A Fee-for-Service model to provide SPV-based lighting solutions to rural India Renewable Energy Where ever there is poor supply of electricity for lighting 9 Oorja stoves & Oorja agriresidue pellets First Energy A domestic stove that works on gasification principle and uses locally available agri-residues as fuel in the form of pellets. The stove provides a clean smokeless and soot-less flame. First Energy has a business model wherein they partner with rural women as their channel partners to sell the stoves and the fuel pellets. A village level entrepreneur produces the fuel pellets from locally available agri-residue and sells to the stove owners Renewable Energy All over Bihar 259

272 Thus, these Green Opportunities have been chosen so as to cover the major livelihood options of agriculture (of which irrigation & non-chemical fertilizers and pesticides are vital components) and animal husbandry. Further, energy has also been included since it is a key factor in improving livelihood options in rural areas. Often, the choice of energy (especially for lighting) in rural areas is diesel or kerosene, both of which are polluting sources of energy. Biomass is the main source of cooking fuel and the current technology to use it (various models of chullahs) burns the biomass fuel inefficiently leading to severe indoor air pollution. Hence, renewable energy was included in the opportunity sets in the form of solar photovoltaics for lighting and biogas and gasifier stoves for cooking application has been included in the Green Opportunities set Integration into Convergence Interventions Convergence with MNREGS As seen in figure 1, over 50% of the works undertaken under MNREGS are on natural resource management (drought proofing, irrigation canals, water conservation and water harvesting, land development, revival of traditional water bodies, flood control, irrigation facilities on individual lands, etc.). The MNREGS is a resource that can be tapped by the community institutions to invest in the environmental sustainability of their livelihoods. Figure 15.1: MGNREGA work in Bihar ( ) 6089, 2% , 52% , 46% Rural connectivity Natural Resource Management Other works The BRLP has initiated a pilot in 2010 in Muzaffarpur district with the Rural Development Department on convergence with MNREGS. The pilot has now been extended to a further five blocks in five districts. The pilot was initially limited in its focus to job card access, work demand and wage payments. However, the scope has now been extended to facilitating demand by SHG members for work on their individual land (including identification of the works to be taken up on the individual land land development, irrigation, plantation). The process of mobilizing the SHG members to demand for work and to identify the specific works required on their land is facilitated by the community cadre of BRLPS community resource persons, village resource persons, etc. This engagement with the MNREGS provides an opportunity for facilitating the involvement of the VOs in natural resource management to enhance livelihood sustainability. 260

273 The involvement of the VO in planning for works on common land (in addition to individual lands) will help ensure that the poor benefit from the MNREGS not only with respect to the wages earned but also from the assets created. While the VO is part of the Gram Panchayat constituency, its participation in the MNREGS planning process needs to be strengthened. The strategy for strengthening the role of the VO in the planning process is as follows: NRM Plans by VOs: In each of the VOs a comprehensive VO Natural Resource Management Plan (NRMP) will be developed. The NRMP will support the livelihood activities of the SHG members by spelling out interventions necessary to strengthen the natural resource base on which their livelihoods depend (for example, plantation of fodder trees, maintenance works on irrigation canals, water conservation structures, etc.). The NRMP will include works that can be supported under MNREGS and will form an input into the Gram Panchayat s MNREGS shelf of projects and annual plan. In addition, the NRMP will also have a list of activities that can be taken up by the VO with technical/financial assistance from other line departments as well as those that can be taken up without any external assistance (e.g., village level norms on resource use). The NRMP will be updated periodically (preferably annually) by the VO to align with the MNREGS planning and implementation cycle. The NRMP will be a simple 2-3 page document the format for which will be developed based on the indicative format in Box 1. Supportive community cadre: The NRMP is a plan owned by the community institutions (VO and SHGs) and hence, it will be developed and implemented by them with facilitation by the project team supported by a community resource person. A specialized cadre of Village Resource Persons (called Green VRPs) will be developed from the existing pool of VRPs who have worked on the BRLP s agriculture interventions. The Green VRPs will work closely with the VO on preparing the NRMP. Mechanism for participation: The Green VRP will facilitate the participation of the VO (and in later years the Cluster Federation) in the Ward 19 and Gram Sabhas and the presentation of the consolidated list of works identified by the VOs in the Gram Sabha. The BRLPS will also explore the possibility of the creation of a Mahila Sabha as a forum for strengthening participation of women (including VO members). Each VO will be facilitated to form a sub-committee on environment that will anchor the process of development and implementation of the NRMP (including securing participation of SHGs in the planning and implementation process, liaison with the Gram Panchayat, etc.). Aggregation for Convergence and Green Opportunities: The NRMPs will be aggregated at the block at district levels by the block and district level livelihood specialists (who are also the Environment Coordinators) for the purpose of (a) identifying areas for convergence with line departments (b) identifying need and potential for Green Opportunities. 19 Recent guidelines issued by the Department of Rural Development, Government of Bihar provide for organizing Ward Sabhas prior to the Gram Sabha (as part of the MNREGS planning process). 261

274 Figure 15.2: Process of VO Natural Resource Management Plan Development of NRMP by VO with facilitation by Green VRP Consolidation of NRMPs at Block and District Levels Activities requiring community norms Activities requiring technical support and training Activities requiring financial support Identification of scope for Green Opportunities Consultation with Gram Panchayat and User Convergence with line departments Convergence with MNREGS VO participates in Ward Sabha, Mahila Sabha and Gram Sabha VO formally submits list of works identified through NRMP as input into the Gram Panchayat Shelf of Projects and prioritized Annual Work Plan Implementation of community norms Activities implemented under line department schemes Works implemented under MNREGS Annual review and updating of the NRMP 262

275 Box 1: Format for VO Natural Resource Management Plan (NRMP) 1. Profile of VO (location, number of affiliate SHGs and SHG members, year of formation, etc.) 2. Resource map of the VO habitation (indicating key natural resources land forms, water bodies, agricultural land, wasteland, grazing land, etc.) 3. Status and issues with respect to the natural resources of the village: Resource Availability (number, extent) Uses Agricultural land Wasteland Grazing land Water bodies Groundwater No. of dependent families Issues 4. Key livelihoods of the poor in the village and issues with environmental sustainability: Livelihood Issues related to environmental sustainability Agriculture Livestock Fisheries Others 5. Measures required at individual household level, SHG level, federation level to promote sustainability: Livelihood Individual SHG members SHG VO Agriculture Livestock Fisheries Others 6. Support required by VO for implementation of the NRMP: Livelihood Activities Details of technical support required Agriculture Livestock Fisheries Others Details of financial support required Source of support (MNREGS, line department, etc.) 7. Institutional arrangements in the federation for implementation of the NRMP: Names of Key responsibilities Environment Subcommittee members 8. Monitoring plan Frequency of review meetings by Environment Sub-committee: Indicators for monitoring by Green VRP / Environment Sub-committee: 263

276 The SRLM will pilot this in a subset of the MNREGS convergence villages in the first year of implementation ( ). The pilot will be taken up in a district with experience in convergence with the MNREGS (most likely Muzaffarpur). The VOs in at least 10 GPs will form the pilot group. An evaluation of the pilot will be undertaken after one year of implementation (in ) based on which a plan for replication and scaling up will be developed. The scaling up will be phased to cover 30% of the VOs in the MNREGS convergence initiative in year and gradually cover all VOs in the MNREGS convergence initiative in the subsequent years. Based on the experience and learning from the pilot, a plan for following a similar approach in VOs that are not in the MNREGS convergence initiative will also be developed. The EAP also provides a set of environmental guidelines for the major livelihoods agriculture, livestock, and fishery. These guidelines include a list of the possible environmental impacts and the relevant mitigation measures in each livelihood activity and are intended to function as a reference for the BMMU project team, Green VRPs and VOs in developing the NRMPs. The guidelines are provided at Annex Facilitation of compliance with regulatory requirements Environmental codes of practice for community organizations and producer collectives: All the VOs, cluster and block level federations as well as the federations of producer groups (producer cooperatives and companies) will be supported to develop and implement a Code of Practice (CoP) for environmental management. The CoP will be based on the regulatory requirements list provided in Annex 3, but will incorporate locally relevant and activity specific codes/requirements as well. The regulatory requirements list has been compiled on the basis of a review of the existing law and regulations of the Government of India, the Government of Bihar and the safeguard policies of the World Bank. The CoP will be evolved through a participatory process. The community organization/ producer collective shall be responsible for communicating the CoP to all its members, facilitating compliance with the CoP (of SHG micro-plans, producer group business plans, etc.), and monitoring. The project team will provide the necessary training, hand-holding and monitoring to ensure that the CoPs are developed and complied with. An indicative list of the key elements in a CoP is provided in Box 2. Figure 15.3: Process of Federation (VO, Producer Federation) Codes of Practice Development of Code of Practice by SHG and Producer Collective Federations with facilitation by block SRLM team Regulatory Community norms on natural resource and environmental management Communication to all members (SHGs, producer groups) on the CoP Application of the CoP: Ensuring that all activities supported by the Federation are in compliance with the CoP Periodic monitoring to check compliance with CoP and provide required support 264

277 Box 2: Indicative List of Key Elements in the Code of Practice 1. Profile of the federation: Name Location Year of formation Number of members Primary activities and functions 2. Code of Practice adopted by the federation: Regulatory requirements Community norms 3. Individual members pledge of compliance with the Code of Practice 4. Institutional arrangement (Environment Sub-committee) for implementation of Code of Practice: Members in Environment Sub-committee Functions of Environment Sub-committee 5. Plan for building awareness in members on Code of Practice 6. Plan for providing any required support to members for compliance with Code of Practice 7. Plan for monitoring compliance of members with Code of Practice Activities for which expert technical assistance will be sought for environmental assessment and management The experience of the BRLP has been that the livelihood activities undertaken by the SHG members are environmentally benign. However, it may be possible that the federations of producer collectives take up larger scale activities which may have a more significant environmental impact. Examples of these include: dairy processing units by dairy producer companies, leather processing by producer collectives in leather clusters, dyeing by producer collectives in weaving clusters, etc. It is the responsibility of the State Environment Coordinator to identify such activities and seek relevant external technical assistance for conducting a detailed environmental assessment. The mitigation measures recommended after such a detailed impact assessment will be included in the activity plan and their implementation will be monitored periodically by the State Environment Coordinator. 265

278 Table: 15.3: Matrix of Environmental Interventions in the SRLM Bihar Strategy Area Activities Outreach Details of environmental interventions Scaling up of the environmentfriendly interventions piloted/scaled up under BRLP Integration into the new livelihood interventions to be initiated Comprehensive agriculture intervention Participatory varietal selection and promotion, productivity enhancement technologies, community managed sustainable agricultures Comprehensive agriculture intervention - Joint management of groundwater 6.5 million households; 1.04 million hectares of land Comprehensive agriculture intervention-women Farmers Producers Companies Dairy intervention 37,50,000 SHG members; 37,500 Dairy Cooperative Societies Small ruminants intervention 266 Use of organic manures Vermicompost (10,000 women farmers) Biofertilizers Intercultivation Non-chemical pest management Efficient irrigation methods? Regulation on indiscriminate use of water, crop water budgeting, efficient irrigation methods? Marketing of organic inputs (vermicompost, ingredients for nonchemical pest management) 25 cluster level goat breeding farms per district Promotion of fodder cultivation: training and exposure visits, provisioning of fodder seed, facilitating contract or individual farming by SHG members in the waste lands or tal area to produce green fodder 25 training cum demonstration centres per district to provide practical training on improved goat rearing including fodder management. Development of fodder plantation on private wasteland, agriculture land and homestead land by Goat Rearer s Association Fisheries intervention? Extension support through Fishery Resource Persons for adoption of appropriate practices selection of species for culture, stocking density, feeding schedule, etc. Piloting and scaling up of new Green Opportunities Convergence Natural Resource Management Plan by with MNREGS VOs Facilitation of compliance with regulatory requirements Environmental Codes of Practice for community organizations and producer collectives 10 Gram Panchayats; 100 VOs (pilot) VOs; 1602 cluster level federations; 534 block level federations; activity based producer groups & their federations Facilitation to VOs to develop and implement NRMPs with support from convergence with MNREGS and line department schemes Facilitation to VOs and producer collective federations to develop and implement Codes of Practice based on regulatory requirements and community norms

279 Integration into Capacity Building Interventions Piloting and scaling up of expansion of VRPs expertise and role into Green VRPs The planned convergence with the MNREGS and the piloting of the VO NRMPs through this will need a strong community cadre that has the required technical and facilitation skills. The development and deployment of such a cadre will also be piloted in the GPs that are involved in the MNREGS- NRMP pilot in the first year. The community cadre referred to as Green VRPs will be formed from the existing pool of VRPs who have experience in facilitating agriculture interventions through the SHGs. It is envisaged that one Green VRP will be required per VO. The expertise of the Green VRP will be built up to on the following aspects: o Issues in environmental sustainability of rural livelihoods o Promotion of environment-friendly practices in the key livelihood activities (agriculture, livestock, fisheries) o Natural Resource Management Plans by VOs development and implementation o Convergence with MNREGS and other line department schemes o Monitoring of environmental status and of adoption of environment-friendly practices in livelihood activities by the SHG members Technical support agencies that have experience in working with SHGs and MNREGS will be hired to provide initial training and on-going support to the Green VRPs. The terms of reference for the technical support agency are provided at Annex 6. The pilot experience will help in shaping the strategy for rolling out the capacity building program for the Green VRPs. Integration of relevant EAP elements into all training programmes for SRLM staff The Strategy for this will include Integration of environmental management into induction training programmes for SRLM staff (SMMU, DMMU and block levels): a sub-module on environmental management in rural livelihoods will be included as part of the module on livelihoods in all the training programmes for the SRLM staff. The details of the sub-module follow- Table : 15. 4: Training session for all SRLM staff Trainees Training Areas Methodology Duration and Frequency All SRLM staff (SMMU, DMMU and block levels) Key provisions of the EAP of the SRLM Opportunities for better environmental management in existing livelihoods Green Opportunities for new environmentfriendly rural livelihoods Regulatory requirements on environmental management Classroom session Two hours session within the induction training programme Specialized training for Environment Coordinators in all the districts and blocks: The responsibility for implementation of the EAP is with the Manager Farm Sector Livelihoods at the district level and with the Livelihood Specialist/Coordinator at the block level. The details of the training programmes to this staff follow - 267

280 Table 15.5: Training programmes for district and block level Environment Coordinators Duration and Trainees Training Areas Methodology Frequency District Environment Coordinator (Manager - Farm Sector Livelihoods) Block Environment Coordinator (Livelihood Specialist/ Coordinator) Issues in environmental sustainability of rural livelihoods Key provisions of the EAP of the SRLM Promotion of better environmental management in existing livelihoods Identification and promotion of Green Opportunities Facilitating compliance to regulatory requirements list by all SHG federations and producer collectives (through the development of Codes of Practice) Facilitating development and implementation of NRMPs by SHG federations (in MNREGS-NRMP convergence pilot locations) Issues in environmental sustainability of rural livelihoods Key provisions of the EAP of the SRLM Promotion of better environmental management in existing livelihoods Identification of Green Opportunities Facilitating compliance to regulatory requirements list by all SHG federations and producer collectives (through the development of Codes of Practice) Facilitating development and implementation of NRMPs by SHG federations through convergence with MNREGS and other line department schemes (in MNREGS-NRMP convergence pilot locations) Management of Green VRPs (in MNREGS-NRMP convergence pilot locations) Classroom sessions Field exposure visits Classroom sessions Field exposure visits 2 weeks initial training including one week exposure visit in year 1 1 week refresher training including exposure visit every year 2 weeks initial training including one week exposure visit in year 1 1 week refresher training including exposure visit in every year of the pilot phase Integration of relevant environmental management guidelines into all training programmes for community institutions : Including community extension workers: A module on environmental management will be part of all training given to the SHG federations, producer collectives and to the community extension cadre in SRLM. The details of this training programme follow. 268

281 Table : 15.6: Training programmes for community institutions Trainees Training Areas Methodology Duration and Frequency SHG federations (VOs) and Producer Collectives Community extension cadre: Village Resource Persons (Agriculture), Livestock Resource Persons, Fisheries Resource Persons, etc. Development and implementation of NRMPs by SHG federations through convergence with MNREGS and other line department schemes Compliance with regulatory requirements list by all SHG federations and producer collectives (through the development of Codes of Practice) Environmental issues in the relevant livelihood sector Promotion of better environmental/natural resource management in the livelihood activity to enhance sustainability and safeguard health Facilitating compliance to regulatory requirements list by SHG federations and producer collectives (through the development of Codes of Practice) Focus group discussion Classroom session (case studies, discussions, experience sharing) Prior to development of SHG microplans, at least once annually Two hours session within the livelihood specific training programme Integration into Monitoring External assessment of impact of the environmental management interventions External impact evaluation involving baseline, mid-term review and end-impact assessment are planned for the overall SRLM initiative. The assessment will capture the changes in livelihoods of the poor through appropriate sustainable livelihood indicators cutting across the livelihood capitals (natural, human, physical, financial and social capitals). The impact of the environmental management interventions will be captured through this assessment through the indicators on natural capital. The suggested list of indicators is provided in Box

282 Box 3: Indicators for assessment of change to the natural capital The suggested indicators that are to be used during the external assessment of changes in natural capital are as follows: General: - Number of SHG federations that developed and implemented natural resource management plans - Percentage of SHG federations and producer collective members with CoPs (regulatory requirements list) and systems for implementing CoPs Agriculture: - Number of SHG members implementing sustainable agriculture practices as a percentage of the total members in the sampled SHGs - Extent of area under sustainable agriculture practices supported by the project as a percentage of all agricultural area supported by the project in the sample villages Water resources: - Number of SHG members undertaking water conservation measures as a percentage of the total members in the sampled SHGs - Extent of area under water conservation (recharge, harvesting, drip/sprinkler irrigation, etc.) as a percentage of all area that has been brought under tube well irrigation through the project support in the sample villages Livestock: - Number of SHG members undertaking better fodder management as a percentage of the total members in the sampled SHGs - Livestock units supported by fodder management (cultivation, conservation, controlled grazing) as a percentage of all livestock units procured through the project support in the sample villages Community monitoring Community monitoring will be undertaken in all VOs in the MNREGS-NRMP pilot. The VO with support from the Green VRPs will monitor the implementation of the NRMPs. The monitoring will be done bi-annually through a participatory mode involving the members of the VO (and the producer collectives) based on indicators identified during the preparation of the NRMP. The community monitoring will provide inputs for reviewing and revising the NRMP as needed. The block team will participate in the community monitoring exercise. The aspects that will be monitored are indicated in Box 4. This list will be finalized in consultation with the technical support organization. Detailed minutes of the community monitoring including data on the aspects monitored will be recorded in the Green VRPs register and in the VO minutes book. This will also be shared with the block and district teams for information and required action. 270

283 Box 4: Aspects to be monitored through community monitoring NRMPs: - Number of activities in the NRMP that have been implemented. - Number of activities in the NRMP that have been implemented through the MNREGS. - Number of activities in the NRMP that have been implemented through convergence with line department schemes. - Number of instances of non-compliance with agreed community norms on environmental management listed in the NRMP. - Number of instances of non-compliance with the regulatory requirements list Environmental sustainability of livelihoods: - Livestock: o Trend in livestock population (by type) and density o Households reporting scarcity of green fodder for livestock o Number of households practicing improved composting methods - Agriculture: o Number of farmers using banned and hazardous chemical pesticides (classes Ia, Ib, II of WHO classification) o Number of farmers not using pesticide safety measures o Extent of agricultural land with non-chemical pest management o Extent of agricultural land with use of organic manures and biofertilizers o Borewell density o Trend in groundwater levels (extent increase/decrease) o Extent of groundwater irrigated land with efficient irrigation practices o Extent of agricultural land with soil moisture conservation practices Internal monitoring by SRLM staff The environmental coordinators at the state, district and block levels will conduct internal monitoring of the implementation of the EAP. The details of this monitoring are provided here: 271

284 Table: 15.7: Internal monitoring of implementation of EMF Level Key responsibility for monitoring Block Block Environment Coordinator (Livelihood Specialist/ Coordinator) District District Environment Coordinator (Manager Farm Sector Livelihoods) State State Environment Innovations Coordinator (State Project Manager Livelihoods) Aspects covered under monitoring Sample to be covered annually Desk and field review of VO s NRMP development and implementation (in MNREGS- NRMP convergence pilot locations) Identify need for Green Opportunities (including from NRMPs of VOs) Desk review of quality of CoPs of VOs and producer collectives Field review of compliance with CoPs especially with the regulatory requirements list Desk and field review of outputs from community monitoring (in MNREGS-NRMP convergence pilot locations) Desk review of outputs of block monitoring Desk and field review of quality of NRMPs of VOs (in MNREGS-NRMP convergence pilot locations) Identify need for Green Opportunities (including from NRMPs of VOs) Desk review of quality of CoPs of VOs and producer collectives Field review of compliance with CoPs especially with the regulatory requirements list Desk and field review of outputs from community monitoring (in MNREGS-NRMP convergence pilot locations) Desk and field review of implementation of pilots on Green Opportunities Desk review of outputs of district monitoring Desk and field review of quality of NRMPs of SHG federations Review of Green Opportunities emerging from NRMPs of SHG federations Desk and field review of compliance with CoPs (including the regulatory requirements list) of VOs and producer collectives Field review of implementation of mitigation measures of activities for which detailed environmental assessment was done by external technical experts Desk and field review of implementation of pilots on Green Opportunities 100% VOs in the block 100% producer collective federations Desk review of 100% blocks Field review of 100% blocks (covering at least 5 VOs per block) 100% producer collective federations 100% pilots on Green Opportunities Desk review of 100% districts Field review of 20% districts (covering at least 5 VOs and 1 producer collective federation per district) 100% pilots on Green Opportunities 272

285 15.6 Institutional Arrangements Institutional arrangements for the EAP are detailed both in the SRLM structure as well as in the community institutions. Institutional arrangement in community institutions: One of the objectives of this EAP is institutionalizing environmental management in the community institutions supported by the SRLM. The institutional arrangements in the SHG federations and producer collectives on EAP implementation are spelt out in this section. Table 15.8: Institutional arrangements in community institutions for EAP implementation Level Key persons Responsibilities SHG Primary Federation (VO) Producer collective Green Village Resource Person (Green VRPs) [in MNREGS-NRMP convergence pilot locations] Environment Management Sub-committee (to be formed in all VOs and later, in all Cluster Level Federations) Environment Management Sub-committee (to be formed in each producer collective federation) Facilitate the development of the NRMP by the VO (with the support of the block team) Assist the VOs (and later, Cluster Federations) in liaison with the Gram Panchayat for implementing the NRMP Assist in identification of best-practitioners on environmental management among SHG members Dissemination of best practices in environmental management and cross learning across the SHGs Provide field support to block team for organizing technical support and training for SHG members on environment-friendly livelihood practices Development and implementation of the NRMP (with the support of the Green VRP and the block team) [in MNREGS-NRMP convergence pilot locations] Develop the CoP for the Federation (including the regulatory requirements + community norms) Liaison with the village institutions (Gram Panchayat and natural resource user groups such as fisheries and dairy cooperatives, watershed committee, etc.) for developing and implementing community norms on resource management Undertake monitoring of implementation of CoP on a regular basis Develop and implement the CoP for the producer collective (including regulatory requirements + other voluntary norms) Undertake monitoring of implementation of the CoP by its members Institutional Arrangements in the SRLM Structure at State, District and Block levels: The effective implementation of the EAP will require relevant institutional arrangements at the state, district and block levels. The roles and responsibilities of the key staff at the state, district and block levels are spelt out in this section. 273

286 Table 15.9: Institutional arrangements in SRLM structure for EAP implementation Level Position Key responsibilities State State Environment Innovations Coordinator (to be responsibility of State Project Manager Livelihoods) Consultant Environment Innovations Ensure quality in implementation of the EAP in the state Coordinate closely with relevant thematic counterparts in the SMMU team (livelihoods, capacity building, etc.) for implementation of the EAP Update the regulatory requirements list and environmental guidelines periodically in consultation with the relevant line departments and technical support institutions (academic institutions, NGOs, etc.) in the state Validate the approach to development of the VO NRMPs and Codes of Practice Scout for and design pilots on Green Opportunities Commission and ensure quality outputs from technical support institutions for capacity building of Green VRPs, project staff at district and block levels and community resource persons Commission and ensure quality outputs from technical support institutions for pilots on Green Opportunities Identify activities likely to have significant negative environmental impact and procure services of external technical experts for a detailed environmental assessment. Monitor the implementation of mitigation measures recommended after any detailed environmental assessment. Undertake monitoring visits to districts to get feedback and provide support on EAP implementation Ensure regular district level monitoring of EAP implementation Dissemination of best practices and cross learning across districts To support the State Environment Innovations Coordinator in all the tasks mentioned above specifically: Update the regulatory requirements list and environmental guidelines in consultation with the relevant line departments and technical support institutions (academic institutions, NGOs, etc.) in the state Validate the approach to development of the VO NRMPs and Codes of Practice (through field testing) Scout for and design pilots on Green Opportunities Ensure quality outputs from technical support institutions for capacity building of Green VRPs, project staff at district and block levels and community resource persons Ensure quality outputs from technical support institutions for pilots on Green Opportunities Undertake monitoring visits to districts to get feedback and provide support on EAP implementation Dissemination of best practices and cross learning across districts 274

287 Level Position Key responsibilities District District Environment Ensure quality in implementation of the EAP in the district Coordinator (to be Coordinate with SMMU and technical support institution to responsibility of Manager ensure timely delivery of quality capacity building services Farm Sector Livelihoods) to block teams, Green VRPs and SHG federations/producer collectives Coordinate with technical support institutions for quality and timeliness in implementation of pilots on Green Opportunities Coordinate with MNREGS (and other line departments) at the district level for development and implementation of NRMPs in convergence Undertake regular district level monitoring of EAP implementation Dissemination of best practices and cross learning across the district Facilitation of detailed environmental assessment by external technical experts for activities requiring the same Block Block Environment Coordinator (to be responsibility of Livelihood Specialist / Coordinator) 15.7 Budget Ensure quality in implementation of the EAP at the block level Support all SHG federations (VOs, cluster federations, etc.) and producer collectives in formulating and adhering to the CoPs based on the regulatory requirements list Support SHG federations in development and implementation of NRMPs in convergence with the MNREGS and other line departments Dissemination of best practices and cross learning across the SHGs and SHG federations The budget for the implementation of the EAP is Rs crore. This has been integrated into the SPIP budget. However, this does not include the budget for the pilot and scaling up of the Green Opportunities as these will be identified during implementation. 275

288 Table: Budget Sl. Particulars Unit Unit cost 276 Remarks Rupees Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Total a Integration into livelihood interventions Scaling up of the environmentfriendly interventions a.1 piloted/scaled up under BRLP Integration into new livelihood a.2 interventions to be initiated a.3 Pilots on Green Opportunities b Integration into convergence interventions No separate budget needed b.1 Convergence with MNREGS (VO NRM Plans) b.1.1 Technical Support Organization Consultan cy fee Costed for 3 year pilot b.1.2 Green VRP (additional responsibility to existing Agriculture VRP - 7 days per month) Service fee b.1.3 VO NRM planning meet (Mahila Sabha) VO Level Meeting c Facilitating compliance with regulatory requirements No separate budget needed.

289 Sl. Particulars Unit Unit cost 277 Remarks Rupee s Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost Total d Capacity building d.1 Training of Green VRPs District level training d.2 Training session for all SRLM staff d.3 Training programme for District Environment Coordinators State level training No separate budget needed d.4 Training programme for Block Environment Coordinators Divisional level training d.5 Training programme for community institutions e Monitoring e.1 External assessment of impact of environmental management interventions Consultan cy fee No separate budget needed e.2 Community monitoring e.3 Internal monitoring No separate budget needed Sub-totals

290 Annexure 1 Environmental Profile of Bihar Bihar is located between 24 20'30" and 27 31'15"N latitude and 83 19'50" and 88 17'40"E longitude. It has an area of over 94,163 sq. km and is extended for 483 km from east to west and 345 km from north to south. Bihar has a population of 8,28,78,796 with 880 persons per sq. km 20. The state is divided into 38 districts and further into 534 blocks with 8463 Panchayats and villages 21. Agroclimatic zones 22 The state is divided into 3 agro-climatic zones on the basis of soil characterization, rainfall, temperature and terrain. The agro-climatic zones are depicted in map A.1 and the key features of the zones are described in table A.1. Table : Agroclimatic Zones of Bihar Agroclimatic zone Districts Total area (m ha) Zone-I North- West Alluvial Plain Zone-II (North-East Alluvial plain) Zone-IIIA (South Bihar Alluvial plain (East) Zone-IIIB (South Bihar Alluvial plain (West) West Champaran, East Champaran, Gopalganj, Saran, Siwan, Sitamarhi, Muzaffarpur, Darbhanga, Vaishali, Samastipur, Sheohar, Madhubani Purnea, Katihar, Madhepura, Saharsa, Araria, Akishanganj, Supaul, Khagaria, Begusarai Banka, Munger, Jamui, Lakhisarai, Shekhpura, Bhagalpur Patna, Gaya, Jahanabad, Nawada, Nalanda, Rohtas, Bhojpur, Aurangabad, Buxar, Kaimur. Net sown area (m ha) Irrigated area (mha) (66)* 0.86 (40)** (58)* 0.24 (20)** (44)* 0.21 (43)** (58)* 1.37 (81)** Total (59)* 2.68 (48)** Main cropping systems Rice-Wheat, Maize-Wheat, Maize-Arhar, Maize- Potato-Moong, Maize- Sweet Potato-Onion, Maize-Mustard-Moong, Rice-Potato-Maize, Rice- Sugarcane Jute-Rice, Jute-Wheat, Jute-Rice-Wheat, Jute- Potato, Jute-Kalai-Wheat, Jute-Mustard, Jute-Pea, Rice-Wheat-Moong Rice-Wheat, Rice-Wheat- Moong, Rice-Gram-Rice, Rice-Potato-Onion, Rice- Mustard-Moong, Rice- Berseem Rice-Wheat-Moong, Rice- Wheat-Rice, Rice-Gram- Rice, Rice-Gram-Moong 20 Census of India, Bihar at a Glance Department of Planning and Development, Government of Bihar. 22 Mangala Rai. Strategies for Enhancing Agricultural Productivity and Production during Rabi Season to Mitigate the Adverse Effects of Drought and Floods during the Kharif Season in Bihar. ICAR. Government of India

291 * Figures in parenthesis are % of geographical area. ** Figures in parenthesis are % of net area sown. Land use Bihar has a geographical area of about thousand sq km. The state is divided by river Ganges into two parts, the North Bihar with an area of thousand sq km, and the South Bihar with an area of thousand sq km 23. Of the total geographic area of lakh ha, about 60% is cropped and only about 22% of the area is cropped twice. The gross and net sown area in the State is estimated at lakh ha and lakh ha respectively. The cropping intensity is Forest area is limited (6.6%) and the area under pastures and grazing lands is extremely scarce (0.18%). The table A.2 gives details of the land use in the state. Table 15.12: Land use in Bihar ( ) 24 Area in ha Forest Area under non-agricultural uses Barren and non-cultivatable land Total land not available for cultivation Permanent pastures, Grazing lands Tree Crops and Groves Culturable Wasteland Total uncultivated land (not fallows) Fallow lands Current fallow Total fallows Net area sown Area sown more than once Total cropped area Reporting area for land use Total geographical area Department of Agriculture, Government of Bihar. Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India

292 Figure 15.4: Land use in Bihar ( ) 25 7% 18% 5% Forest Area under non agricultural uses Barren and non cultivatable land Permanent pastures, Grazing lands Tree Crops and Groves 60% 7% 0% 3% 0% Culturable Wasteland Fallows Net area sown With reference to the table and (details of land use for the districts of Bihar) and as seen in the above figure, the districts of East and West Champaran, Rohtas, Madhubani and Purnea have the largest net sown area. However, in terms of the net sown area as a percentage of the district area Buxar, Bhojpur and Nalanda top the list with more than 75% while Jamui and Monghyr are at the bottom of the list with less than 40%. The extent of fallow lands is the maximum in the districts of Gaya, Jamui, Purnea (while as percentage of the district area Sheikhpura, Jamui and Gaya have more than 20% area under fallows). Cropping intensity is highest in Saharsa (1.76), Sivhar and Supaul and lowest in Banka (1.07), Darbhanga and Patna. The districts with more than 50,000 ha under forests are Bhabua, Jamui, West Champaran, Gaya, Rohtas and Nawadha. Only 9 districts have more than 500 ha under pastures and grazing lands with Gaya having the maxium area at 2192 ha (0.44%). Land degradation 26 Wastelands are spread over an area of 6841 sq.km in Bihar accounting for 7.26% of the state's geographic area. Of the total wasteland in the state, land with scrub (dense and open) accounts for 3715 sq km (about 4%), waterlogged area (permanent and seasonal) accounts for 1564 sq km (1.66%) and degraded forest land with scrub accounts for about 1200 sq km (1.27%). 25 Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India Department of Land Resources, Ministry of Rural Development, Government of India and NRSC, ISRO, Department of Space, Government of India. Wasteland Atlas of India

293 Table 15.13: Wastelands of Bihar Category of wasteland Area in sq. km Percentage of geographic area Gullied and/or ravinous land Medium Land with dense scrub Land with open scrub Waterlogged and marshy land Permanent Waterlogged and marshy land Seasonal Land affected by salinity/alkalinity Moderate 0 0 Land affected by salinity/alkalinity Strong Underutilised/degraded notified forest land-scrub dominated Underutilised/degraded notified forest land Agriculture Degraded pastures/grazing Degraded land under plantation crops Sands-Riverine Sands-Riverine 0 0 Mining wastelands Industrial wastelands Barren rocky area Total Total Geographic Area The tables A.5 and A.6 gives details of wastelands in the districts of Bihar (also see map A.2). The districts of Jamui and Banka have more than 20% of their area under wasteland. Nalanda, Bhojpur, Buxar and Khagaria have the least extent of wastelands in the state. Jamui, Banka, West Champaran and Katihar have the maximum area under degraded scrub land. The districts most affected by permanent waterlogging are Saran, Siwan, Vaishali and Muzaffarpur and those affected by seasonal waterlogging are Purnia, Madhepura and Saharsa. Soils In the Zone-I North West Alluvial Plains (West and East Champaran, Gopalganj, Siwan, Saran, Sitamarhi, Muzaffarpur, Vaishali, Madhubani, Begusarai, Seohar, Darbhanga and Samastipur) the soils are medium acidic and heavy textured sandy loams to clayey soils. Large areas remain under water called Chaur, Maun and Tal lands. In the Zone-II North East Alluvial Plains (Purnea, Katihar, Saharsa, Supaul, Arariya, Kishanganj, Madhepura and Khagaria) light to medium textured, slightly acidic, sandy to silty loams are found. Large areas comprise of Tal and Diara lands. In the Zone-III, South Bihar Alluvial Plains (Bhagalpur, Banka, Munger, Jamui, Lakhisarai, Shekhpura, Gaya, Aurangabad, Jahanabad, Nawada, Arwal, Nalanda, Patna, Bhojpur, Buxar, Bhabhua, and Rohtash) old alluvium to sandy loams are found 27. Waterlogging affects over 1564 sq km in Bihar. The causes of waterlogging are surface ponding of water during rainy season, erratic rainfall, poor sub-surface drainage, and excessive canal irrigation in the rabi season. The table A.7 gives details of the status of the soil macronutrients in the districts of 27 Bihar s Agriculture Development: Opportunities & Challenges - A report of the special task force on Bihar. Government of India

294 Bihar. The districts of Gaya and Saharsa have low levels of all three macronutrients Nitrogen, Phosphorus and Potassium. Water Rainfall The average annual rainfall of Bihar is mm. The Zone-II North East Alluvial Plains has the highest rainfall ranging between mm, the Zone-I North West Alluvial Plains has rainfall between mm, and the Zone-III, South Bihar Alluvial Plains has the lowest rainfall ranging between mm. As seen in table A.8, the districts of Kishanganj, Araria, West Champaran and Purnia receive over 1400 mm rainfall. Patna and Nalanda receive less than 1000 mm of rainfall annually. As seen in table A.9, the districts of Saran, Darbhanga, Patna and Muzaffarpur have a higher probability of drought (15% or more) 28. Surface water Bihar is richly endowed with surface water resources. The state has 14 river basins: (i) the Ghaghra, (ii) the Gandak, (iii) the Burhi Gandak, (iv) the Bagmati, (v) the Kamla-Balan, (vi) the Kosi, (vii) the Mahananda, (viii) the Karmnasa, (ix) the Sone, (x) the Punpun, (xi) the Kiul-horhar, (xii) the Badua, (xiii) the Chandan, and (xiv) the main Ganga stem. All these rivers drain into the main Ganga stem which divide the state into Northern and Southern parts. The seven river systems from Ghaghra to Mahananda drain North Bihar and the remaining six river systems drain the South Bihar. Most of rivers are seasonal with good flow during the Kharif season, insignificant flows during winter and dry status during summer. Bihar is the most flood prone state in the country with % of its geographical area area (68.80 lakh hectares) affected by floods (the state accounts for 17.2 % of the total flood prone area in the country) 29. The flood situation is most severe in the northern plains of Bihar. The flood prone districts in Bihar are East Champaran, West Champaran, Sitamarhi, Madhubani, Begusarai, Saharsa, Supaul, Madhepura, Purnea and Katihar. About 3430 km of embankments have been constructed along the river courses in the state to protect an area of lakh hectares of area (about 42% of the flood prone area). The table A.10 gives details of the river basins in the state including flood prone area and area protected by embankments. 28 P.G. Gore, Thakur Prasad and H.R. Hatwar, Mapping of Drought Areas over India. National Climate Centre Research Report No. 12/2010. India Meteorological Department, Pune 29 BAMETI. Status of Agriculture in Bihar

295 Table 15.14: River Basins of Bihar 30 Name of the Catchment Length Basin Area (sq km) River Bihar (km) of in Embankment Constructed (km) Flood Prone Area (sq km) Protected Area (sq km) Ganga Kosi Burhi Gandak Kiul-harohar NA Nil Punpun Mahananda Sone Bagmati Kamla Balan Gandak Ghaghra Chandan Badua Nil 1050 Nil Total In addition to flood prone area, there are extensive low lying areas around the river Ganga in the districts of Patna, Begusarai, Khagaria and Bhagalpur. These areas, called Tal areas, are inundated annually by flood waters which recede only after December-January. Ground water The annual replenishable ground water resource in the state is estimated to be BCM 31. The net annual ground water availability is BCM. The annual ground water draft is estimated to be BCM making the stage of ground water development 39%. None of the administrative divisions (called blocks) in the state are classified 32 as Over Exploited, Critical or Semi-critical with respect to the groundwater status. As seen in the table A.11, the stage of groundwater development exceeds 50% in Nalanda, Jehanabad, Begusarai, Siwan, Saran and Patna. Groundwater quality in parts of the state is affected by high Fluoride, Iron, Nitrate and Arsenic. Of the habitations in the state, the quality of drinking water is affected by Iron in habitations, by Flouride in 4157 habitations and by Arsenic in 1590 habitations 33. The tables A.12 and A.13 provide details of the districts and habitations affected by poor groundwater quality. 30 Basin-wise flood prone and protected areas. Water Resources Department, Government of Bihar BMC = Billion Cubic Meters 32 Stage of groundwater development is less than or equal to 70% or is more than 70% but less than or equal to 90% and shows no significant long term decline (pre and post monsoon) Safe category Stage of groundwater development is more than 70% but less than or equal to 90% or is more than 90% and less than or equal to 100% and shows significant long term decline (pre or post monsoon) Semi-critical category Stage of groundwater development is more than 90% and less than or equal to 100% and shows significant long term decline (pre and post monsoon) Critical category Stage of groundwater development is more than 100% and shows significant long term decline (pre and/or post monsoon) Over-exploited category 33 Department of Drinking Water Supply, Ministry of Rural Development, Government of India. National Habitation Survey

296 Table 15.15: Districts affected by poor groundwater quality 34 Contaminant Districts affected Fluoride (>1.5 mg/l) Aurangabad, Banka, Buxar, Bhabua(Kaimur), Jamui, Munger, Nawada, Rohtas, Supaul Iron (>1.0 mg/l) Aurangabad, Begusarai, Bhojpur, Buxar, Bhabua(Kaimur), East Champaran, Gopalganj, Katihar, Khagaria, Kishanganj, Lakhiserai, Madhepura, Muzafferpur, Nawada, Rohtas, Saharsa, Samastipur, Siwan, Supaul, West Champaran Nitrate (>45 mg/l) Aurangabad, Banka, Bhagalpur, Bhojpur, Bhabua, Patna, Rohtas, Saran, Siwan Arsenic (>0.05 mg/l) Begusarai, Bhagalpur, Bhojpur, Buxar, Darbhanga, Katihar, Khagaria, Kishanganj, Lakhiserai,Munger, Patna, Purnea, Samastipur, Saran, Vaishali Agriculture Bihar has a total geographical area of lakh hectares of which lakh hectares (about 60%) is cultivated. The main crops grown are rice, wheat, maize, pulses (masoor, moong, khesari, gram), rapeseed, mustard, potato, jute and sugarcane. The crop productivity in Bihar is one of the lowest in the country. The productivity of rice is 1486 kg/ha, which is low in comparison to the national average of 2131 kg/ha. The average wheat productivity of the state is 1908 kg/ha as compared to 2708 kg/ha for the country. The average productivity of Maize is 2671 kg/ha which is higher compared to that of the country (1912 kg/ha) 35. The districts of Rohtas, Aurangabad, Bhabha, Banka and Nalanda have the highest rice production (with productivity >2.3 tonnes/ha) while the lowest rice productivity is seen in Shivhar (0.52 tonnes/ha), Samastipur and Muzaffarpur. Rohtas, Gopalganj and Saran have the highest wheat production (with productivity >2.3 tonnes/ha) while the lowest wheat productivity is seen in Araria (0.7 tonnes/ha), Katihar and Kishanganj. The production of maize is the highest in Khagaria, Samastipur and Purnia (with productivity >3.5 tonnes/ha) while Jamui, Buxar and East Champaran have the lowest productivity of this crop. Bihar ranks 8th with respect to the area (11.21 lakh hectares) and 5th with respect to the production ( lakh MT) of horticultural crops in the country 36. Major fruits grown in the state are Mango, Litchi, Guava, Pineapple, Banana, Aonla, Bel and Makhana. The prime fruit growing districts are Muzaffarpur, Vaishali, Samastipur, Bhagalpur, Banka, Darbhanga, Munger, Jamui, Gaya, Aurangabad, Nalanda, Patna, West Champaran, East Champaran, Kishangaj, Purnea, Araria, Katihar and Khagaria. The major vegetables grown on commercial scale in the state are Cauliflower, Potato, Okra, Brinjal, Onion, Chillies, Cabbage, Gourds, Peas, Cowpea and Melons 37. Irrigation Bihar has a net irrigated area of lakh ha (61% of the net sown area of lakh ha). Of the net irrigated area, 64% is irrigated by tubewells and 27% is irrigated by canals. Irrigation by tanks is less than 5%. The districts with the highest dependence on tubewells for irrigation (100%) are East Champaran, Samastipur, Madhubani, Araria, Kishenganj and Sivhar. Rohtas, Darbhanga and 34 Central Groundwater Board, Ministry of Water Resources, Government of India. State Profile Bihar Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India National Horticulture Mission Annual Action Plan , State Horticulture Mission, Bihar. 37 National Horticulture Mission Annual Action Plan , State Horticulture Mission, Bihar. 284

297 Bhojpur have less than 30% of their net irrigated area irrigated by tubewells. Canals account for more than 90% of the net irrigated area in Rohtas and for more than 70% area in Bhojpur 38 (Table A.14). Agro-chemicals As seen in the table A.15, the use of nitrogenous fertilizers in Bihar is much higher as compared to the national average 39. Table 15.16: Use of Chemical Fertilizers (kg/ha) 40 N P K Total Bihar India In the year , the consumption of N, P, K fertilizers was 8.94, 2.47 and 1.67 MT respectively making the N : P : K ratio 8.04 : 1.98 : 1 41 (the optimum nutrient ratio recommended for Indian soils is 4 : 2 : 1). The consumption of chemical pesticides in Bihar in was 890 MT 42. Table 15.17: Trend in Pesticide Consumption in Bihar Year Consumption of Pesticides (MT technical grade) Livestock Bihar has 5.6% of Cattle, 5.9% of buffaloes, and 7.7% of the goat population of the country 44. About 35 percent of rural households in Bihar own cattle, 20 percent own buffalo, and 15 percent own sheep and goats. Of all rural households owning cattle and/or buffalo in Bihar, more than threequarters are either landless or have less than 1 hectare of land. Sheep and goats tend to be even more concentrated among landless and marginal rural households Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India Agricultural Statistics at a Glance Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India Agricultural Statistics at a Glance Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India Department of Agriculture, Government of Bihar Pesticide and Documentation Unit, Directorate of Plant Protection, Quarantine and Storage, Department of Agriculture and Cooperation, Government of India Pesticide and Documentation Unit, Directorate of Plant Protection, Quarantine and Storage, Department of Agriculture and Cooperation, Government of India th Indian Livestock Census. All India Summary Report Department of Animal Husbandry and Dairying. Ministry of Agriculture. Government of India. 45 BAMETI. Status of Agriculture in Bihar

298 Table 15.18: Livestock population in Bihar (numbers in lakh) 46 India Bihar % of Bihar in India Milch cattle Buffaloes Sheep Goats Pigs The estimated green fodder production from forests, permanent pastures, grazing lands and cultivated areas has declined from lakh tonnes in to lakh tonnes in Dry fodder production (crop residue of cereals, pulses and oil seeds) over the same period declined from lakh tonnes to lakh tonnes 47. Table 15.19: Production of fodder in Bihar ('000 tonnes) 48 Year Dry Fodder Green Fodder Total Fodder The potential of fishery in Bihar is high as the state is endowed with ha of ponds and tanks, 9000 ha of oxbow lakes, 7200 ha of reservoirs, 3200 km of rivers and 1 lakh ha of riverine and other flood plains. However, the annual fish production in the state is 2.61 lakh tonnes falling short of the demand of 4.56 lakh tonnes 49. Forests 50 Only about 6.87% of the geographical area (6473 sq km) of the state of Bihar is under forests (Map A.3). This consists of 76 sq km of very dense forests, 2951 sq km of dense forests and 2531 sq km of open forest. The forests of Bihar are of three types: Dry deciduous forest, Wet deciduous forest and Sub Himalayan and Tarai forest. The first type is found in and around Kishanganj district, the second type is found in the Kaimur district and along the northern slope of Chotanagpur plateau, the third type is found around the Someshwar hills in Paschim Champaran district. Bihar has 1 national park and 11 sanctuaries comprising a protected area of sq km. Table A.19 gives details of the protected areas th Indian Livestock Census. All India Summary Report Department of Animal Husbandry and Dairying. Mininstry of Agriculture. Government of India. 47 Agricultural Research Databook Indian Agricultural Statistics Research Institute, ICAR Agricultural Research Databook Indian Agricultural Statistics Research Institute, ICAR Road Map for Fisheries Development. Department of Agriculture. Government of Bihar Environment and Forest Department, Government of Bihar

299 Figure 15.5: Agroclimatic zones of Bihar IGP 4, sourced from accessed on 27 th August

300 Table 15.20: Land use in Districts of Bihar ( ) 52 Area under Barren and Permanent Total Total nonagriculturacultivatable non- Total land not pastures, uncultivated Area sown reporting available for Grazing Tree Crops Culturable land (not Net area Total cropped more than area Forest uses land cultivation lands and Groves Wasteland fallows) Fallow lands Current fallow Total fallows sown area once GAYA JAMUI BANKA MADHUBANI SITAMARHI SAHARSA CHAMPARAN (WEST) NAWADHA BHAGALPUR AURANGABAD CHAMPARAN (EAST) PURNEA VAISHALI SUPAUL KATIHAR SARAN KHAGARIA KISHANGANJ JAHANABAD GOPALGANJ MONGHYR SIWAN ARVAL DARBHANGA ARARIA BHABHUA PATNA ROHTAS BHOJPUR SAMASTIPUR LAKHISARAI MADHUPURA MUZAFARPUR BUXAR BEGUSARAI NALANDA SIVHAR SHEIKHPURA Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India

301 Table: Wastelands of Bihar (2010) 53 Category Araria Aurangabad Banka Begusarai Bhabua Bhagalpur Bhojpur Buxar Darbhanga Gaya Gopalgunj Jamui Jehanabad Katihar Khagaria Kishanganj Lakhisarai Gullied &/or ravinous land (Medium) Land with dense scrub Land with open scrub Waterlogged & Marshy land (Permanent) Waterlogged & Marshy land (Seasonal) Under-utilized/degraded forest (Scrub) Under-utilized/degraded forest (Agriculture) Degraded pasture/grazing land Degraded land under plantation crops Sands reverine Industrial wastelands Barren rocky/stony waste Total Total Geographical Area % to TGA Department of Land Resources, Ministry of Rural Development, Government of India and NRSC, ISRO, Department of Space, Government of India. Wasteland Atlas of India

302 Table: 15.22: Wastelands District of Bihar (2010) 54 Category Madhepura Madhubani Munger Muzaffarpur Nalanda Nawada W Champaran Patna E Champaran Purnia Rohtas Saharsa Samstipur Saran Sitamarhi Siwan Supaul Vaishali Gullied &/or ravinous land (Medium) Land with dense scrub Land with open scrub Waterlogged & Marshy land (Permanent) Waterlogged & Marshy land (Seasonal) Land affected by Slinity/Alkalinity Strong Under-utilized/degraded forest (Scrub) Under-utilized/degraded forest (Agriculture) Degraded pasture/grazing land Degraded land under plantation crops Sands reverine Mining wastelands Industrial wastelands Barren rocky/stony waste Total Total Geographical Area % to TGA Department of Land Resources, Ministry of Rural Development, Government of India and NRSC, ISRO, Department of Space, Government of India. Wasteland Atlas of India

303 Figure 15.6: Wastelands of Bihar Department of Land Resources, Ministry of Rural Development, Government of India and NRSC, ISRO, Department of Space, Government of India. Wasteland Atlas of India

304 Table 15.23: Status of Soil Macronutrients in the districts of Bihar 56 Name of District N P K Araria NA NA NA Aurangabad L M H Banka NA NA NA Begusarai NA NA NA Bhabhua NA NA NA Bhagalpur NA NA NA Bhojpur M M M Buxar NA NA NA Darbhangha L M M East Champaran M M M Gaya L L L Gopalganj L M M Jamui NA NA NA Jehanabad, Arwal NA NA NA Katihar M L M Khagaria M M M Kishanganj NA NA NA Lakhisarai NA NA NA Madhepura NA NA NA Madhubani M M L Munger L M M Muzaffarpur M M L Nalanda M M M Nawadah M M M Patna M M M Purnia M L M Rohtas NA NA NA Saharsha L L L Samastipur M H M Sharan M L M Sheikhpura NA NA NA Sheohar NA NA NA Sitarmarhi M M M Sivan M L M Supaul NA NA NA Vaishali M M L West Champaran H M M 56 Indian Institute of Soil Science, ICAR

305 Table 15.24: District-wise Normal and Actual Rainfall in Bihar (2007) 57 District Normal Rainfall Actual Rainfall Patna Bhojpur Nalanda Buxar Rohtas Kaimur Gaya Jehanabad Arwal Nawada Aurangabad Saran Siwan Gopalganj Muzaffarpur Vaishali Sitamarhi Sheohar E.Champaran W.Champaran Darbhanga Samastipur Madhubani Begusarai Munger Lakhisarai Shekhpura Jamui Khagaria Bhagalpur Banka Saharsa Supaul Madhepura Purnia Araria Kishangaj Katihar Department of Agriculture, Government of Bihar

306 Table 15.25: Probability of drought in districts of Bihar 58 Probability of Moderate Probability of District Drought (%) Severe Drought (%) Saran 19 0 Darbhanga 17 2 Patna 17 0 Muzaffarpur 16 0 Champaran 15 1 Monghyr 15 0 Gaya 13 0 Bhagalpur 12 0 Purnea 12 1 Saharsa 12 0 Shahabad P.G. Gore, Thakur Prasad and H.R. Hatwar, Mapping of Drought Areas over India. National Climate Centre Research Report No. 12/2010. India Meteorological Department, Pune. 294

307 Table 15.26: Groundwater Resources in Districts of Bihar (2004) Central Groundwater Board, Ministry of Water Resources, Government of India Dynamic Grounwater Resources of India (as on March 2004). 295

308 Table 15.27: District-wise habitations affected by poor water quality in Bihar 60 District Flouride Arsenic Iron ARARIA ARWAL AURANGABAD BANKA BEGUSARAI BHAGALPUR BHOJPUR(AARA) BUXAR DARBHANGA E CHAMPARAN (MOTIHARI) GAYA GOPALGANJ JAMUI JEHANABAD KAIMUR (BHABUA) KATIHAR KHAGARIA KISHANGANJ LAKHISARAI MADHEPURA MADHUBANI MUNGER MUZAFFARPUR NALANDA NAWADA PATNA PURNIA ROHTAS SAHARSA SAMASTIPUR SARAN SHEIKHPURA SHEOHAR SITAMARHI SIWAN SUPAUL VAISHALI W CHAMPARAN TOTAL National Rural Drinking Water Programme, Department of Drinking Water and Sanitation, Ministry of Rural Development

309 Table 15.28: Net area irrigated source-wise in districts of Bihar ( ) 61 Canals Tanks Tubewells Other wells Other sources Total ARARIA ARVAL AURANGABAD BANKA BEGUSARAI BHABHUA BHAGALPUR BHOJPUR BUXAR DARBHANGA E CHAMPARAN GAYA GOPALGANJ JAHANABAD JAMUI KATIHAR KHAGARIA KISHANGANJ LAKHISARAI MADHUBANI MADHUPURA MONGHYR MUZAFARPUR NALANDA NAWADHA PATNA PURNEA ROHTAS SAHARSA SAMASTIPUR SARAN SHEIKHPURA SITAMARHI SIVHAR SIWAN SUPAUL VAISHALI W CHAMPARAN Total Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Government of India

310 Figure: 15.7: Forests of Bihar 62 Table: Details of Protected Area in Bihar Name of Park/Sanctuary District Type Barela SAZS Sanctuary Vaishali Sanctuary Bhimbandh Sanctuary Monghyr Sanctuary Gogabil Pakshi Vihar Katihar Closed Area Gautambuddha Sanctuary Gaya Sanctuary Kaimur Sanctuary Rohtas Sanctuary Kanwar Jheel Bird Sanctuary Begusarai Sanctuary Kusheshwarsthan Darbhanga Closed Area Nagi Dam Bird Sanctuary Jamui Sanctuary Nakti Dam Bird Sanctuary Jamui Sanctuary Rajgir Sanctuary Nalanda Sanctuary Sanjay Gandhi Botanical Garden Patna Botanical Garden Udaypur Sanctuary West Champaran Sanctuary Valmiki National Park West Champaran National Park Valmiki Sanctuary West Champaran Sanctuary Vikramshila Gangetic Dolphin Bhagalpur Sanctuary 62 India. India State of Forest Report Forest Survey of India, Ministry of Environment and Forests, Government of 298

311 Annexure - 2 Green Opportunity Set Introduction The Ministry of Rural Development (MoRD), Government of India, set up the National Rural Livelihood Mission (NRLM) in June The Mission s primary objective is to reduce poverty by promoting diversified and gainful self-employment and wage employment opportunities for sustainable income increases. The Bihar Rural Livelihoods Promotion Society (BRLPS) is preparing a State Perspective and Implementation Plan (SPIP) for rolling out the National Rural Livelihoods Mission in the state of Bihar. As part of the preparatory phase of the SPIP, it is mandatory to prepare an Environmental Management Framework (EMF) for assessing and managing the impact of the proposed livelihood activities. However, the NRLM EMF presents a pathway that goes beyond the mere preparation of an EMF to safeguard the environment. It proposes that each state as part of preparing its SPIP should identify opportunity sets that are based on sound environmental practices/technologies and proactively promote them to ensure the environmental sustainability of livelihood activities. In addition, it also seeks to identify and promote livelihood opportunities that are based on such sound environmental practices /technologies. This section presents a set of Green Opportunities for Bihar under NRLM. Rationale for Selecting Green Opportunities Set The key livelihood interventions proposed under the SPIP are mainly based on Comprehensive Agriculture Intervention, integrating dairying with agriculture and providing alternate cooking energy solutions to help wean away households from using cow dung as fuel and instead use it as manure. Under comprehensive agriculture intervention, use of vermicompost, vermiwash, biofertilizers and jeevamruth are important inputs that would be promoted to ultimately reach 6.5 million households. Community managed irrigation systems would be promoted, especially in areas (south Bihar, especially districts adjoining Jharkhand) where groundwater has to be extracted through deep bore wells. Dairying would be promoted to reach upto 3.7 million households who would be organised into 37,500 dairy cooperative societies. Vermicomposting would be promoted through 10,000 households so as to market it to 75,000 farming families. Since most of the households (33%) in Bihar depend on cow dung cakes as a primary fuel to cook their meals, the SPIP is proposing to try out alternative technologies that would not use cow dung cakes as fuel. In addition, it is also proposing to integrate biogas plants with vermicomposting pits so that a household could use cow dung as a fuel to cook (biogas) as well as produce biogas slurry (by-product of biogas production) which would form the input for vermicomposting. Accordingly, based on an analysis of the livelihood activities proposed in the Bihar SPIP, a set of Green Opportunities that complement and supplement them have been identified in the area of sustainable agriculture, irrigation and renewable energy. This section presents the Green Opportunities set for Bihar for implementation under NRLM. 299

312 Table: List of Opportunity Sets Proposed Sl. Name of Project / Intervention / Technology Name of Organisation Description of Project / Intervention / Technology Livelihood Area Coverage Area 1 Scaling-up and organizing sale of vermicompost, vermiwash, jeevamruth, etc. through VO/Federation/Farmer Producer Company BRLPS Currently, these products are being produced and marketed at SHG/Vo level. To gain scales of economy, it would be useful to produce it in a decentralized manner but market it through a Federation or Farmer Producer Company. Agriculture Throughout Bihar 2 Tree-based Farming Bharatiya Agroindustries Foundation (BAIF) & BAIF Institute of Rural Development Karnataka (BIRD-K) Innovative use of land to ensure multiple crops in rain fed conditions that meet food, fuel and fodder requirements of a small farmer Agriculture Parts of Bihar where dry land farming is practiced. Especially southern Bihar, areas adjoining Jharkhand 4 Affordable Drip Irrigation Technology Intervention (ADITI) International Development Enterprises, India (IDE-I) Low cost alternatives to high cost conventional drip technology Agriculture - Irrigation Dry land areas of Bihar. Areas where community managed ground water irrigation systems are being proposed 5 Eco-tech based community enterprise JRD TATA Eco-technology Centre, MS Swaminathan Research Foundation, Chennai Demystification of bio-technology, its adaptation for manufacture and marketing by women SHGs, leading to formation of a community-based eco-enterprise Agriculture- Chemicalfree inputs All over Bihar 6 Parampara Herbal Producer s Company Foundation for Revitalisation of Local Health Tradition (FRLHT) Use of low cost local veterinary medical knowledge to identify, test and market products to treat diseases of dairy animals Animal husbandry All over Bihar, especially where there is a greater concentration of dairying activities 300

313 Sl. Name of Project / Intervention / Technology Name of Organisation Description of Project / Intervention / Technology Livelihood Area Coverage Area 7 CER/VER Financed Biogas+ Projects SKG Sangha Innovative use of CDM to part finance promotion, installation and maintenance of biogas+ vermicompost plants Renewable Energy All over Bihar, wherever biogas cum vermicomposting units would be set up Where ever there is poor supply of electricity for lighting 8 Light A Billion Lights (LABL) The Energy & Resources Institute A Fee-for-Service model to provide SPVbased lighting solutions to rural India Renewable Energy 9 Oorja stoves & Oorja agriresidue pellets First Energy A domestic stove that works on gasification principle and uses locally available agri-residues as fuel in the form of pellets. The stove provides a clean smokeless and soot-less flame. First Energy has a business model wherein they partner with rural women as their channel partners to sell the stoves and the fuel pellets. A village level entrepreneur produces the fuel pellets from locally available agri-residue and sells to the stove owners Renewable Energy All over Bihar Thus, these Green Opportunities have been chosen so as to cover the major livelihood options of agriculture (of which irrigation & non-chemical fertilizers and pesticides are vital components) and animal husbandry. Further, energy has also been included since it is a key factor in improving livelihood options in rural areas. Often, the choice of energy (especially for lighting) in rural areas is diesel or kerosene, both of which are polluting sources of energy. Biomass is the main source of cooking fuel and the current technology to use it (various models of chullahs) burns the biomass fuel inefficiently leading to severe indoor air pollution. Hence, renewable energy was included in the opportunity sets in the form of solar photovoltaics for lighting and biogas and gasifier stoves for cooking application has been included in the Green Opportunities set. 301

314 Integrating Green Opportunities into BRLP Introduction In the next few chapters 9 different Green Opportunities based on 3 broad thematic areas have been described in detail. These Green Opportunities not only help better sustain existing livelihoods but also create new Green Enterprises and Green Jobs. For example, KB Drip (low cost drip from IDE-India) not only helps conserve water at the farm level thereby making farming more secure, but also creates Green Enterprises in the form of KB Dealers and Green Jobs in the form of BAs employed by IDE-India and Fitters & Helpers employed by the KB Dealer. Green-entrepreneurship is defined as the technical, managerial and marketing capacity of rural women and men to mobilize and organize themselves as entrepreneurs to produce environment-friendly products and services for sustainable development. Green-jobs are defined as employment opportunities in the sectors that use natural resources efficiently and effectively without creating environmental instability. Thematic Area 1 Agriculture Agriculture is the primary livelihood for a vast majority of rural Indians, either as farming households (if they have land) or as agricultural labourers. Therefore, any intervention in this thematic area that helps improve productivity, net returns, cost reduction or diversification of risk would help sustain and secure the livelihood for a vast majority of the rural poor. The Green Opportunities presented in this thematic area cover the following: Table Green Opportunities - Agriculture Sub-theme Green Opportunity Description Nonchemical Farming Eco-inputs for agriculture Farming Systems Efficient Irrigation Scaling up and organizing existing operation of vermicomposting, vermiwash, jeevamruth, etc into enterprises that would be run at scale through VOs/Federation Eco-enterprises based on biofertilizers & biopesticides Tree Based Farming Affordable Drip Technology Intervention (ADITI) Currently, vermicompost, vermiwash and jeevamruth are being used by farming households under BRLP. Production of these inputs is largely ad hoc and done by individual and/or SHG groups. Marketing is also at these levels. While production could continue to be at the individual or SHG level, marketing and distribution could be organized at the level of a VO or the Federation. Demystification of bio-technology, its adaptation for manufacture and marketing by women SHGs, leading to formation of a community-based eco-enterprise Innovative use of land to ensure multiple crops in rain fed conditions that meet food, fuel and fodder requirements of a small farmer Low cost alternatives to high cost conventional drip technology CMSA, as already mentioned in the NRLM Implementation Framework is the flagship intervention in the area of agriculture. It forms the backbone on which the rest of the Green Opportunities in this 302

315 thematic area can be pegged. For example, sustainable agriculture based on non-pesticide/nonchemical farming requires a constant supply of inputs such as vermicompost, vermiwash and jeevamruth. Similarly, a constant supply of eco-tech inputs such as biofertilizers and biopesticides would be needed, which are currently not even being produced in Bihar. Learning from the experience of MS Swaminathan Foundation which successfully managed to transfer the technology for production of these eco-tech inputs to their SHG members, BRLPS may also initiate steps to produce these ecotech inputs through their SHG members. Further, with a user base of nearly 6.5 million farming households within the BRLP itself, marketing should not be a major problem. In dry land areas, while the approach would be based on CMSA principles, the farming system would be based on trees as an integral component of farming. Similarly, in areas where ground water is being used for irrigation, ADITI would be an integral component of CMSA. However, unless CMSA is integrated with dairying, it is unlikely to be successful, since it demands a constant supply of cow dung and urine. Therefore, incorporating a fodder component in farming systems as TBFS does is vital to ensuring sustainability of both CMSA (cropping) as well as dairying. Thematic Area 2- Animal Husbandry After agriculture, animal husbandry is the most sought after livelihood option. Often, loans are taken for costly crossbreed cows without providing for adequate vet care. The result is either poor performance of the cow or loss of the asset (cow) itself. Even where vet care is available, it is unaffordable and often not available in time. Use of local remedies (ethno-veterinary remedies) based on a careful appraisal and clinical trial process, can reduce the cost of vet care and more importantly, reduce the dependence on outside expertise. The Parampara Herbal Producers Company is a successful example of mass producing and marketing ethno-veterinary remedies for common cattle diseases. Integrating ethno-remedies into animal husbandry after careful trial and selection as is detailed in the case study would go a long way in securing this livelihood. Further, if the remedies are mass produced and marketed, a new Green Enterprise could be set up. Needless to say, if home herbal gardens are set up to supply the raw materials for the remedies, Green livelihood opportunities would open up. Thematic Area 3- Renewable Energy Energy, especially, electricity is a key driver of modern civilization. Lack of access to energy can stunt development and growth of a whole community. With more than 400 million Indians, mainly the rural poor, having little or no access to electricity, this thematic area assumes strategic importance in alleviating poverty. 303

316 Three Green Opportunities are covered in this thematic area: Table: Green Opportunities Renewable Energy Sub-theme Green Opportunity Description Cooking energy CER/VER financed biogascum-vermicomposting Innovative use of CDM to part finance promotion, installation and maintenance of biogas+ vermicompost plants Lighting Lighting a Billion Lives A Fee-for-Service model to provide SPV-based lighting solutions to rural India Cooking energy Domestic gasifier stoves and enterprises for making fuel pellets for the stoves A cooking solution that gives the comfort and experience of cooking on a LPG stove using fuel pellets made from locally available agri-residues While energy per se can be provided from multiple sources, providing it from renewable energy sources calls for a great deal of technical, financial and organizational innovations. The three case studies present various aspects of innovations in these areas. All of them apart from benefitting the end-users also create jobs and enterprises. For example, LaBL delivers its solar lighting solutions through LaBL Entrepreneurs who are local unemployed youth. Similarly, First Energy (Oorja stoves and Oorja fuel pellets) partners with rural women entrepreneurs to market their stoves and fuel pellets, apart from helping setup small-time enterprises who would produce and supply Oorja fuel pellets to Oorja stove owners. However, the biogas-cum-vermicompost Green Opportunity would be feasible wherever dairying is taken up and should be integrated with it to make it more economically and environmentally sustainable. If a 1000 biogas plants are done in a district, then seeking CDM financing would be feasible. Phasing the way forward In the preceding section (also see each individual case study) the relevance and ways of integrating the Green Opportunities into livelihood interventions has been presented. However, the challenge is to integrate its implementation with the SRLM Implementation Mechanism. This section presents a way forward in this direction. 304

317 Table: Phasing Way Step Action Details Step 1 Sensitizing SMMU to Green Opportunities Presenting the bouquet of Green Opportunities to the SMMU through a workshop Preferably, the proponents of these opportunities should be invited to present to the SMMU The responsibility for rolling out Green opportunity interventions should be vested with a Programme Manager (Innovations) and anchored within the SPM Livelihoods domain. Step 2 SMMUs to look for For example, lighting could be a need in many areas of application of Green Bihar. Therefore Green Opportunities from the Energy Opportunities during Thematic Area may be explored in preparation of the preparation of SPIPs SPIP Step 3 Step 4 SMMUs to collaborate with proponents of Green Opportunities chosen by them in the SPIP to build knowledge among its staff Build a state repository of Green Opportunities. Prepare and/or revise Green Opportunities section in the SPIP based on the guidance received by collaborating with the Green Opportunities proponents Build capacity of the district and block level staff before launching the programme Use all sources to build a repository of Green Opportunities Having chosen the Green Opportunities, capacity building should be carried out in preparation of the launch of a pilot (in case the Green Opportunity has not been tried before) or scale-up or introduction in a new area. Thus, at the end of the first year, the BRLPS should be in a position to launch at least a scaled-up and organized version of organic input production and marketing (vermicompost, vermiwash and jeevamruth), ethno-vetcare, solar based lighting and gasifier stoves. 305

318 Pathways to mainstream Green Opportunities The following schematic, which is self-explanatory, tries to depict based on the SRLM Implementation Framework, as to how the Green opportunities could be mainstreamed. Figure : 15.8 Pathways tp, aomstrea Green Opportunities National Environment Management Coordinator Shortlist based on consultations & strategic importance Programme Manager Innovations within livelihoods Green Opportunities Repository Selected Green Opportunities SPIP Innovative Projects Pilot Integrate into main programme The focus would be to mainstream and scale-up Green Opportunities rather than continue doing them as stand-alone projects of interest. It is only by mainstreaming that the Green Opportunity would get the benefit of the entire implementationn mechanism s focus and resources. 306

319 Integrating EMP & Green Opportunities The Environmental Management Framework has made a radical change in how environmental management is secured in the SRLM. Each Village Organization with the help of G-VRPs (Green Village Resource Persons) would prepare an Environmental Management Plan (EMP) based on the livelihood activities that their members propose to pursue. Figure15.9: Integrating Green Opportunities into EMPs NMMU Information & Capacity Building on Green Opportunities to all thematic & livelihoods SMMU Information & Capacity Building on EMP to SEMC Thematic training on Green Opportunities SPIP Training on preparing EMP DMMU Integrate with main programme DMMU Thematic training on Green Opportunities If required after suitable aggregation Training on preparing EMP BMMU VO EMP BMMU Thematic training on Green Opportunities G-VRP helps VO prepare EMP taking into Green VRP Training on preparing EMP 307

320 Figure 3.2 presents a pathway for building the capacity of the G-VRP so that s/he can help the VO prepare an EMP which also takes into account the Green Opportunities that might make the basic livelihood more secure. It is quite likely, though that the Green Opportunity might not be feasible at the level of aggregation of a VO. In such a case, the Block Level Managers should explore the feasibility at block level of aggregation. Needless to say, scouring through EMPs to identify problems and likely solutions should be a key task of the Environment Management team at all levels. Source of Green Opportunities The bouquet of Green Opportunities presented in this report is neither exhaustive nor exclusive. It must be the constant endeavour of the Environmental Management team at the SMMU to build up the Green Opportunities Repository. Figure 3.3 shows possible ways of filling up the Green Opportunities Repository. Figure : Sources of Green Opportunities NEMC Consultations, Workshops, Fieldobservations, Analysis of EMPs Program Manager Innovations DMMU/B MMU Options generated by EMP at an aggregated Green Opportunity Repository Options generate d as part of EMP G-VRPs Successful Innovative Projects after pilot testing External evaluators, experts Innovative Projects Others 308

321 Thus, we envisage a Programme Manager (Innovations) attached to the SPM(Livelihoods) to manage the roll out of Green Opportunities interventions. The Programme Manager would be a person who is not only well-aware of environmental issues but views problems as potential opportunities to present Green Solutions which make economic sense. Indeed, we would strongly urge that one of the key metrics to measure the performance of the Programme Manager (Innovations) should be linked to no. of Green Opportunities that have either been piloted or mainstreamed. We are confident that a strong focus on the performance in this area would go a long way in ensuring that environmental management functions do not merely become monitoring of environmental check-lists. Thematic Area 1 : Agriculture Decentralized Production of Bio-fertilizers & Bio-pesticides Introduction Soil is the most important asset of a farmer. Soil fertility is to a large extent determined by the presence of suitable soil biota, which in turn is determined by the soil organic content. Repeated use of chemical fertilizers destroys the soil biota and thereby affects fertility and yield. Application of biofertilizers in the form of N2 fixers (Azospirillum, Rhizobium, Acetobacter, blue green algae, Azolla), Phosphate Solubilizing Bacteria (PSB) and fungi (mycorrhizae) can help in improving the soil biota status and thus improve the soil quality. Since many of them fix nitrogen from the atmosphere, need for application of Nitrogen would also be reduced. Further, some of them help in making soil nutrients available in a form ready for uptake by plants and help in improving the nutrient availability status of the soil. Similarly with pest control also, indiscriminate use of broad-spectrum chemical pesticides has destroyed natural predators of crop pests and created pesticide resistance among pests. Use of biopesticides can address these issues very effectively. Bio-fertilizers and bio-pesticides are being manufactured in India since late 1970s. However, it received serious attention only in the early 1990s. Since then a no. of manufacturing units have come up, but farmers continue to face problems in accessing good quality materials in a timely manner. The main constraints expressed by manufacturers are: unattractive carrier material, low shelf-life, lack of proper storage facilities, loss of quality on transportation, poor marketing, high risk and less profit. Adoption has been good wherever the manufacturer is doing niche marketing. Against this background the JRD Tata Ecotechnology Centre (JRDT ETC) of the MS Swaminathan Research Foundation (MSSRF), Chennai initiated a project to train a group of SHGs members to manufacture these bio-fertilizers and bio-pesticides by demystifying the biotechnology. They had to make crucial innovations in the manufacturing process to enable production in local, decentralized and un-lab-like conditions. Intervention The JRD Tata Ecotechnology Centre works with women from small & marginal farm families and agricultural labourers. They promote eco-enterprise development through the creation of biovillages (See Figure 7.1 & 7.2) 309

322 Figure : Concept of biovillage Figure16.4:Ecoentrepreneurship & eco-jobs Eco-entrepreneurship is defined as the technical, managerial and marketing capacity of rural women and men to mobilize and organize themselves as entrepreneurs to produce environmentfriendly products and services for sustainable development. Eco-jobs are defined as employment opportunities in the sectors that use natural resources efficiently and effectively without creating environmental instability. Eco-enterprises are designed in such a manner that they meet the following criteria: Economically viable Environmentally sustainable Socially equitable Energy efficient Employment generating With this framework for development of eco-enterprises, work was initiated in Kuttathuavarampatti (bio-fertilizers) and S.Pudur (bio-pesticide) in the Kannivadi region of Dindigul district, Tamil Nadu and Keezhsathamangalam (bio-fertilizers) of Puducherry UT. These areas were chosen because they had the cropping pattern suitable for use of these products and thus offered a local market. Implementation strategy Selection of Women SHGs The JRDT-ETC had been working in these areas for some time and had developed SHGs and federated them into two CBOs, namely, the Kulumai in Kannivadi and the Bio-council in Puducherry. These federations were the fora for presenting and discussing the idea of eco-enterprises based on bio-fertilizers and bio-pesticides to the SHG leaders. In turn, these leaders discussed them in their respective SHGs. Finally, 3 SHGs were chosen to set up the eco-enterprises viz., Jhansi Rani 310

323 WSHG, Kuttathuavarampatti and Elayathendral Women s Self-Help Group of S. Pudur in Kannivadi region of Dindigul district and Manimegalai WSHG of Keezhsathamangalam of Puducherry region. Training & Capacity Building Exposure visit Hands-on experience on the production process before initiating the process Learning by doing after establishing the unit while stabilization in the production process was on Group and account management training to leaders and Need-based training on the problems encountered during the production Preparation of microplan Based on the micro-plan, the bio-fertilizer/bio-pesticide units were set-up as per the schedule given in Figure 4.3. A detailed business plan was prepared and loans availed to set up the units. The total project cost of the bio-pesticide unit was Rs.2.4 lacs and received a loan of Rs.1.75 lacs from Canara Bank at Kannivadi. The bio-fertilizer units cost Rs.1.5 lacs each which were financed through an SGSY loan and members contributions. Table : Detail Activities & Responsibilities Details of the Time Responsibilities Resource Monitioring Activities Training & Oct Nov MSSRF MSSRF Leader of the federation and Capacity Building 2002 MSSRF staff Praparation of Dec Group Members Group Ms. Angel of the group business plan Jan 2003 Consultation with Jan 2003 MSSRF and the MSSRF Staff of MSSRF and Ms. Vijaya, the Charted group SHG Accountant Submission of Feb 2003 Group Group President and Secreatary of the proposal to Bank group an follow-up Establishing the April 2003 MSSRF staff and Group Leader of the SHG and MSSRF unit purchase of materials group Staff Establishing the May 2003 MSSRF Staff Group Leader of the SHG and MSSRF Unit Staff Initiating the May 2003 Group Group MSSRF staff and a member the production group Quality Control May 2003 Group Group President of the group and MSSRF with technical help of TNAU, Coimbatore Market Linkages June 2003 MSSRF MSSRF Staff from MSSRF and president of the group Products, production process and operations Azospirillum, Phosphobacteria and Trichoderma viride are the three major products being produced by the eco-enterprises. (See Figure 7.4). The key steps in production of these products are: Isolation of efficient local strains of the microorganisms Maintenance of the isolated strains as mother culture at MSSRF microbiology lab 311

324 CPreparation of starter culture/inoculum from the mother culture at the decentralized production unit Preparation of broth, sterilization of Horlicks bottles used as fermentors Inoculating the sterilized broth and incubating for a period of 4-6 days Preparation of carrier material namely, vermicompost Mixing the broth containing the bioagents with vermicompost, drying and packing Azospirillum Azospirillum can utilize atmospheric nitrogen and contribute to plant nitrogen nutrition, it can also improve the plant nutrient uptake and contribute towards the balance of the root environment through protection against pathogens and equilibrate nutrient flow in the soil. It can fix atmospheric nitrogen to the tune of about kg/n/acre/year, which reflects in an increase in the crop yield by %. It has the potential to reduce the consumption of chemical nitrogen fertilizer by %. Phosphobacteria Several soil bacteria and fungi, notably species of Pseudomonas and Bacillus secrete organic acids that bring about the dissolution of the bound phosphates in the soil. Utilization of phosphate-solubilising microorganisms (Pseudomonas and Bacillus) account for about 45 % of the total biofertilizer production and use. Trichoderma viride It is a green coloured, fast-growing beneficial fungal species. It has multiple uses in crop production, as a biocontrol and decomposing agent. It also acts as a growth promoter by producing growth hormones. It controls soil borne pathogens through either antibiosis or competition or hyperparasitism on harmful fungus. It acts against species like Fusarium, Phytopthora, Botrytis, Pythium, Verticililium and Sclerotia, and reduces the use of chemical fungicides. The product is compatible with biofertilisers like Azosprillum and Rhizobium and other biofungicdes like Pseudomonas and Bacillus subtilis. Application of the product through seed and seedling/ tuber/corm treatment helps the farmer to protect the seeds from diseases, and ensures vigorous and uniform plant establishment. The President of the SHG allocates the various tasks among the SHG members. Care is taken to rotate the members among the various tasks so that everyone is well-versed in all aspects of the production process Quality control Serial dilution method has been used to determine the Colony Forming Units (CFUs) in each batch. From the production after thorough mixing through random sampling a small quantity is taken by the quartering method and tested for its CFUs in the concentration of 106 to Separate register is maintained for quality check details and materials are passed for packing only when the lot contains 1 x1010. Meanwhile, once in a quarter, random samples from the production is taken and checked for its consistency in quality at the microbiology laboratory of Chennai as well as at the unit by the professional staff. The bio-pesticide is registered with the Central Insecticides Board and Registration Committee, Directorate of Plant Protection, Quarantine and Storage, Department of Agriculture and Cooperation, Faridabad, Haryana 63, under Central Insecticides Act of Marketing The SHG groups have entered in to an MoU with a few agri-input companies and dealers to market their products. In addition, they have identified plantation crop farmers in areas close to their villages 63 www

325 and market to them directly. Further, they have a working relationship with the Reddiarchattram Seed Growers Association (RSGA, also promoted by JRDT-ETC) to promote their products amongst their farmer members. However, since , all the eco-enterprises in the Kannivadi region of Dindigul district have been brought under the Kulumai 64 Livelihood Promotion Cell (KLPC), which buys the products from these units and markets them through a Marketing Officer appointed by the KLPC. In addition, SHG members of the units are free to sell the products on their own too. Benefits to the eco-entrepreneurs The total project cost including capital costs and working capital is around Rs.1.5 lacs. The following table shows the production and returns from each unit since its inception Table Earnings per member for different eco-enterprises Year Sales Net profit (Rs) Average income per member* per month 1. Trichoderma viride kg kg kg The profit was used to repay the bank loan kg taken to establish the unit kg Pseudomonas fluorescens The profit was used to repay the bank loan taken to establish the unit Biofertilizers (Azosprillum and phosphobacteria) The profit was used to repay the bank loan taken to establish the unit *- apart from wages from employment in the unit which is on an average of Rs 1000/month 4. VAM** The profit was used to repay the bank loan taken to establish the unit ** - the amount of time spent by the members on the production is less than a hour in a day members do the task after their agriculture work 64 The KLPC is the SHG Federation Level body to promote eco-products 313

326 As can be seen from the above table, all the units have paid off their loans and are providing monthly returns of Rs to each member of the group. In all there are 108 women from various SHGs involved in these eco-enterprises. Innovations in production Many changes were made in the production process and materials to bring down the cost as well as make the process easy to follow at the grass-roots level. Key changes were: Laminar flow chamber: In order to maintain the quality and at the same time reduce the contamination, make it more women friendly and simple, low-cost Laminar Air Flow chamber was fabricated to ease the inoculation purpose. For the mass multiplication of Azospirillum/ Phosphobacteria: Locally available, low-cost container, i.e. ½ litre horlicks bottles were used instead of culture flasks/fermentors. Carrier material: In order to avoid the purchase of external carrier materials the use of locally available FYM was composted using earthworms, used as a carrier material. In the case of Trichoderma viride, the inoculated broth was incubated for 3 days and if no growth was observed they were immediately discarded instead of waiting for the entire period of 15 days before taking the decision. This helped in reducing wastage of time and poor performance of a batch. Relevance of bio-fertilizer & bio-pesticide based eco-enterprises to BRLP Agriculture is the largest source of livelihood. With the BRLP promoting CMSA as a flag-ship initiative to ensure an eco-friendly and cost-effective sustainable agriculture technology, production and supply of key eco-friendly inputs would become vital. Therefore, the establishment of such eco-enterprises to produce bio-fertilizers and bio-pesticides would go a long way in ensuring steady, reliable, timely and cost-effective supply of quality inputs. Integrating with BRLP Production of these bio-inputs, should be integrated with CMSA and/or other similar agricultural interventions. These activities can be taken up by SHGs once the area has been surveyed and suitability of the products to the crops being grown has been established. The SMMU should collaborate with the JRDT-ETC to help in transfer of technology as well demystifying it for application at the grass-roots level. For more information contact: Dr.Sudha Nair, Director JRD Tata Ecotechnology Centre M. S. Swaminathan Research Foundation III Cross Street, Institutional Area Taramani, Chennai , INDIA. Tele: ; Fax: ecotech@mssrf.res.in 314

327 Marketing KB Drip A Low Cost Drip Solution Introduction Lack of irrigation is the single most important limiting factor for increasing productivity, cropping intensity and thus, returns to the farmer. In the last three decades in the absence of large public investments in creating irrigation infrastructure in the country, ground-water based irrigation driven by private initiative has emerged as the largest contributor to increase in irrigated area. Aided by little or no electricity costs and low cost of owning an electric pump set, shallow tube wells have emerged as the major source of irrigation (>40% of net irrigated area 65 ) in the country. However, indiscriminate use of groundwater has resulted in fast depletion of the resource, frequent failure of the tube well, shortened period of yield and the need to dig deeper and deeper tube wells. Drip irrigation is a well known technology to help conserve such precious water with the added benefit of improving yield and quality of produce due to maintenance of suitable soil moisture status. However, conventional drip technology despite subsidies (often available to limited no. of farmers) has remained beyond the reach of small and marginal farmers. Further, the technology has been often promoted only for wide-spaced crops such as coconut, mango, grapes, etc., mainly due to the high cost of the equipment, especially, the lateral tubes and the emitters. Intervention International Development Enterprises (India) (IDE-India) a Section 25 company first challenged this notion by introducing micro-tube based drip irrigation technology that could be used in close-spaced crops such as mulberry, cotton, tomato, chillies, etc. However, even this technology was found costly for most small and marginal farmers. In a quantum leap of innovation, IDE-India introducedd pepsi tapes 66 with punched holes into which microtubes were inserted. At one stroke it reduced the cost of the equipment and did away with the need for an engineer to design and install the drip system in the farmer s field. Needless to say, this was more affordable but still needed considerable labour in installation and in removing after the crop season and re-laying it for the next crop. The next generationn of pepsi tapes now called KB 67 Drip tapes were made of better material; a mixture of LLDPE & LDPE 68 and came with pre-punched drip holes. They were also available in different thicknessess of 125, 250 & 500 microns. As compared to conventional drip systems these systems were cheaper by 70-80% depending on the thickness of the KB Drip tape. A comparison of costs for conventional drip with KB Drip for close-spaced vegetable crops is given in Table 6.1. Figure : DRIP Irrigation 65 Groundwater Irrigation in India: Gains, Costs and Risks. Vasant P. Gandhi, N.V. Namboodiri, IIM(A), March Ice candy is sold in transparent polythene tubes. Locally, they are called pepsi, hence the name pepsi tapes for low cost IDE drip tapes. 67 Krishak Bandhu is the brand name of IDE-India products 68 Linear Low Density Polyethylene and Low Density Polyethylene 315

328 Table: KB Drip vs. Conventional drip Crop: Vegetables, Tapioca, 125mic with 250mic with Regular system with In Turmeric, Cotton, Spacing: Prepunch KB Drip Prepunch KB Drip line lateral 3.5 feet Sl. Particulars Amount Rs./acre Amount Rs./acre Amount Rs./acre 1 Tube 16 mm Dripper GTO16mm joiner & End cap Lateral Ball valve 63mm S/m pipe 63mm installation TOTAL Soon other products followed such as Ventury Injectors for fertigation and KB Layflat pipes that replaced costly PVC pipes that are used as mains and sub-mainss in conventional drip systems. Figure : Water conveyance Pipes Figure : Channel partner of IDE-India 316

329 Implementation strategy Among developmental NGO s, IDE-India is unique in its strategy of using market forces to promote and distribute its low cost drip technology without the use of subsidies. Indeed, IDE-India uses developmental money to create new products and open up new markets through extensive and intensive promotion, recruit and train dealers and field-mechanics. Currently, IDE-India has drip operations in 7 states of the country. Figure 15.15: Channel partner of IDE - India Manufacturer Manufacturer KB Dealer Distributor Global Easy Water Product P.Ltd., KB Dealer Customer Customer Customer Customer KB Dealer Customer Customer The entire channel is managed by a team headed by an Area Manager supported by Business Supervisors and Business Associates (BA). 1 or more blocks are covered by a BA, who is responsible for conducting and organizing promotion of KB products and provide marketing support to the KB Dealers in the area. In all there are 35 BAs in Tamil Nadu covering more than 8 districts. A BA gets a fixed base salary and commission at 7% of the total sales turnover achieved by his dealers. On an average a BA 69 who had worked for 2 or more years with IDE-India earned about Rs.5,650/month as commission alone. There are 2 manufacturers in Tamil Nadu who supply to Global Easy Water Product P.Ltd., (GEWP) a wholly owned subsidiary of IDE-India which is the sole distributor for Tamil Nadu. GEWP provides technical knowhow and information about suppliers of KB Drip tape manufacturing units. It also provides the manufacturer specifications of raw materials and approved suppliers. GEWP pays a fixed processing cost of Rs.20-23/kg of KB Drip tape manufactured which usually leaves a margin of 69 Data is for Tamil Nadu 317

330 5% to the manufacturer. A Quality Supervisor 70 is placed at the manufacturing unit to ensure quality of input and output. Dealers buy from GEWP on a cash and carry basis. Often, given the proximity of GEWP to most dealers, delivery is also just-in-time, thus reducing the inventory costs of dealers. In fact, for most dealers initial investment is just the value of the first order 71 of which 50% is received as advance from the end-customer. In Tamil Nadu there are 135 dealers spread over 8 districts. A dealer is allowed a margin of 20% on total sales turnover. On an average a dealer with 2 years experience in the KB Drip business had a turnover of Rs.8 lacs with a profit margin of Rs.1.6 lacs. The highest sales turnover was of Rs.20 lacs with a profit margin of Rs.4 lacs. A typical dealer employs 2-5 Fitters and 8-10 Helpers who install the KB Drip systems. Each team of a Fitter and 2 Helpers are paid Rs.1500/acre. Average earning/fitter is about Rs.60,000-80,000/year. Benefits of KB Drip Economic benefits at farm level Economic benefits of KB Drip at the farm level are well known. A study 72 carried out by the present author in 2007 captured the impact as depicted in Figure 6.3. Figure Income Impact of KB Drip Investment to increase water security Adoption of KB- Increase in cropped area Increase in yield Increase in inputs Increase in income Increase in investment Primary cycle Increase in household expenditure & asset building Secondary cycle Shift to highvalue crops Increase in risk appetite Increased land holding Increase in income 70 In the unit visited by us, all the workers were women and the Quality Supervisor from GEWP was also a woman! 71 S.Palanisamy invested 50% of the last salary he received as a BA to start the KB dealership 72 This study covered 3 states and explored how the increased income was being used by KB Drip users. 318

331 A case study (Table 6.2) carried out in the same study illustrates the economic, social and environmental benefits of KB Drip on marginal farmers in this case a women farmer from Maharashtra. Table: Indomitable Spirit Akka Tai Jagannath Karande Name & Akka Tai Jagannath Karande, Karandewadi village, Sangola taluk, Solarpur address district Family details 2 adults & 3 children. Husband is not educated, she has studied upto 1 st standard Assets Landholding Water sources Kutcha house with no electricity and cooking in a makeshift thatch-roof room on traditional fire-wood cookstove 0.5 acres Does not own a well, but shares an ancestral well with 20 other families. The well itself has long run dry, but each family buys water at Rs.50/hr from a 5hP pump, fills the well and then repumps the water to their fields Cropping pattern Reasons for adopting KB Drip Now only pomegranate Akka Tai and her husband Jagannath Karande have been married for 16 years now. They have always worked as labourers in other fields, sugarcane factory and even a textile mill About 9 years back, Jagannath and his 2 brothers bought 2 acres of land at Rs.16,000/acre. Akka Tai received a share of 0.5 acres. She spent a further Rs.15,000 in clearing the land and ploughing, thus the cost of her 0.5 acres is about Rs.23,000. Initially, she grew jowar, bajra, while her husband continued to work in the factory However, she observed that others around her were growing pomegranate and prospering She applied for and received a subsidy under the Horticulture Development scheme that is available to all farmers to raise fruit orchards With the subsidy, she blasted pits into the rocky land and planted 171 pomegranate plants (Ganesh variety that was popular then. Now she has replaced some of them with Bhagva variety that is more popular and fetches a higher price in the market) She purchased water and started cultivating the orchard, but the yield was very low since the land is undulating and water was not reaching all the plants uniformly She had heard of drip irrigation, but could not afford it. When she heard that KB Drip would cost her only about Rs.2000 she raised the money and purchased it. She has been using it since last 5 years. 319

332 Name address Benefits from Drip & KB Akka Tai Jagannath Karande, Karandewadi village, Sangola taluk, Solarpur district In the very first year of using KB Drip her income from Pomegranate went up to Rs.30,000 from a meager Rs.10,000. This was entirely on account of better distribution of water among the plants (Increased yield, increase in water use efficiency and increased income effects). In the second year it went up to Rs.40,000 and in the 3 year to Rs.50,000. Earlier cropping yielded only some food grains and certainly no cash. Cash income was from her husband working in a factory and she herself working in a grape drying unit. This year she is expecting an income of Rs.2.00 lacs from her 0.5 acres of pomegranate. After covering her farm expenses of Rs.40,000 (Increased input usage), she would be left with a cash surplus of Rs.1.6 lacs In addition, her husband earns a further Rs.20,000 a year from selling the kulfi that Akka Tai makes at home and Rs.10,000 by working as an expert pruner. Akka Tai continues to work in a grape drying unit for about 2-3 months and earns Rs.5000 Thus this year s annual income is expected to be Rs.1.95 lacs Of this about Rs.20,000 is being spent on household expenses. This has increased from Rs.10,000 (Increased household expenditure). The increase is mainly on account of clothing, purchase of food grains and increased frequency of meat eating, about 2-3 times/week (Increased food quality and security) Future plans Top priority is to dig a well and secure the source of water (Asset building effect, reducing cropping risk). When we met her she was supervising (increased selfconfidence) the digging of a well and had hired a blasting expert to blast the rocks. She has already invested Rs.1.0 lacs (Increased investment capacity) to dig upto 50 feet but is to yet strike water. She is planning to dig 20 feet more and then bore horizontally (Increased self-confidence and increased risk-appetite) She has borrowed about Rs.1.0 lacs to dig the well (increased risk appetite) She has made an offer to her neighbour (Increased self-confidence, positive attitude towards life) to purchase his land (Asset building effect) for Rs.20,000/acre should he choose to sell it To convert the entire plot into Bhagva variety since it fetches higher returns as compared to Ganesh variety (change in cropping pattern effect, increased riskappetite) Her goal is to have an orchard in about 2 acre (Positive outlook, clear vision and confidence of achieving it), which she reckons would give her family a decent standard of living. Only after achieving this goal she would like to invest in improving the house, taking an electricity connection, etc. Analysis Technical effects Change in cropping pattern, especially shift to high-value crops (Jowar to pomegranate, within pomegranate to higher yielding Bhagva) Increased water use efficiency (higher yield from the same 0.5 acre plot on account of water being more uniformly distributed through KB drip) Increase in level of inputs (She has spent Rs.40,000 on her 0.5 cre plot this year to ensure high yields from pomegranate. This is higher than the yield from pomegranate in the previous year) 320

333 Name address & Akka Tai Jagannath Karande, Karandewadi village, Sangola taluk, Solarpur district Economic effects Increased income (from being barely able to make two ends meet to now having an income of Rs.1.6 lacs from only 0.5 acre of Pomegranate) Asset building, she is digging a well and has made an offer to her neighbour to purchase his land Social effect Increased self-confidence, from realization of set goals, increase in income, stability in income Increased risk appetite, plans to bring entire area under Bhagva variety, has borrowed to dig a well, has made an offer to her neighbour to buy his land Improved quality of life, now the family is clothed better and eats better (meat 2-3 times/week), does not work in others fields, but continues to work in the grape factory, while husband sells kulfi ice creams Positive outlook about the future reflected in clarity on future plans and the decision to put on hold asset creation and expenditure on the home front until she meets her set goals Comments Akka Tai Jagannath Karande is the tale of a woman s indomitable spirit to overcome her circumstance by sheer will power and dint of hard work. The choice of crop (pomegranate) and its economics is the key to her economic development, but it is KB Drip that is the critical input that enabled her to realize her goals. Most importantly, it has turned her into a farmer who has a positive attitude towards life, full of self-confidence and a clear vision of what she wants to do. Economic benefits at business level As already described in the previous section, as a BA or as a dealer or even as a fitter, marketing of KB Drip provides a profitable source of livelihood. With the micro-irrigation market 73 pegged at Rs.17 billion in 2009 and expected to grow, the volume of KB Drip is also expected to grow leading to higher earnings for its channel partner as well. Thus, acquiring a KB dealership is an attractive business proposition given the high volume of business and the low entry barriers in terms of low investments. Relevance of KB Drip to BRLP Given that agriculture would be one of the primary livelihoods that BRLP would be promoting, efficient use of irrigation water would be of crucial importance both from an environmental and economic angle. Therefore, drip technology would be relevant to BRLP, especially where ground-water based irrigation is the norm. However, given the poor paying capacity of most of BRLP beneficiaries, KB Drip tapes, being low-cost but highly reliable would be very appropriate. Integrating KB Drip into BRLP BRLP should initiate a dialogue with IDE-India to forge a partnership. On the one hand, KB Drip may be introduced in BRLP locations where drip is relevant, while on the other, individuals or SHGs within the BRLP beneficiaries may be given opportunities to be fitters, helpers and dealers of KB Drip. KB Drip may be put on a list of items for which SHGs could raise loans from banks or SHG Federations. 73 Micro Irrigation System in India 2010; a report prepared by Netscribes (India) Private Limited 321

334 For the proposed, community managed deep tube well based irrigation system; BRLP should make use of drip systems mandatory to ensure that water is used efficiently. For more information contact: Mr.Amitabha Sadangi / Mr.Suresh Subramaniam INTERNATIONAL DEVELOPMENT ENTERPRISES (INDIA) C 5/43, (1st & 2nd Floor) Safdarjang Development Area New Delhi Phone Nos Fax No suresh@ide-india.org 322

335 Tree-Based Farming for Dryland Agriculture Introduction Dryland agriculture dominates the Indian agricultural landscape. Nearly 60% of the country s land is under dryland agriculture producing only one crop/year, leaving precious land fallow for nearly 8-9 months a year. Even this single crop is a gamble with monsoon. The result is poor and limited livelihood options and seasonal and permanent migration. It is against this background that BAIF 74 (Bharatiya Agro Industries Foundation) has successfully integrated a tree component in dryland farming through people s participation that has changed the socio-economic status of the families, including an increase in overall agriculture production, year- for round local self-employment, sufficient fuel-wood for cooking, fodder for livestock, biomass composting, and security of drinking water. Livestock interventions such as goat, sheep and improved cattle rearing have been integrated to maximize income. Called the Wadi model (Tree based farming system TBFS), it has become popular replicated in several states in the country by BAIF as well as other organizations. and has been Figure: Tree-based farming system Intervention TBFS consists of integrating growing trees into the cropping pattern. The choice of trees is such that it covers horticultural, forestry, fodder yielding and fuel-wood species. Thus, while the basic agricultural crop provides grain to the farmer, the trees provide fruits and timber for marketing and fodder and fuel-wood for own consumption. The dryland farmer is thus able to meet his needs of grain, fodder, fuel-wood as well as income. Further, given the different durations of gestation, yield and returns, the dry land farmer is assured income in short (grains, vegetable), medium (fuel-wood, 74 In Karnataka the organization is BAIF Institute of Rural Development-Karnataka (BIRD-K). The description of TBFS is largely drawn from their implementation experience. 323

336 fodder) and long term (timber species). Thus, TBFS also enhances income security of the dryland farmers. Broadly, it consists of: Digging trenches & rainwater harvesting pond Digging trenches (10 x 1.5 x 1.5 ) along the farm bunds and across contours in the farmers field. The soil from the trenches is piled on to the bunds, thus strengthening it. The trenches are connected in such a way that excess rainwater from one trench flows into another trench that is at a lower contour. A rainwater harvesting pond of 30 x 30 x 10 (for an acre plot) is dug at the lowest level of the plot such that all the excess flow from the trenches and the run-off from the plot is channelized into the pond. Tree plantation Timber species such as teak, acacia, silver oak, sisum, casurina etc. are planted at the rate of 2-3/trench Fuel, fodder and other species such as subabul, Cassia siamea, drum stick are planted on the farm bunds such that an acre has about plants. Sometimes even plants such as papaya are planted on the bunds The main crop land is planted with fruit trees such as mango, sapota, guava, etc., depending on the choice of the farmer. In between these trees, the normal agricultural crop of the farmer is taken. Along the border of the plot, live fence in the form of Euphorbia, Glyricidia, etc. are planted to provide protection to the plantations from grazing. In addition, these also provide a ready source of green leaf for manure and fodder purposes. Thus, an acre of farmland is planted with trees along with providing enough space to grow agricultural crops. Implementation strategy People s nursery The project in principle had decided in the beginning that all forestry seedlings required for the project are to be raised by the project participants themselves. Accordingly, arrangements were made to set up nurseries which were managed either by individuals or by groups. This process ensured that the project participants were empowered to select and raise the species of their own choice. The decentralized locations of these nurseries also helped to ensure timely plantations to avoid transportation of seedlings from a long distance. This has contributed sufficient income in lean seasons particularly for women. Formation of SHGs The basic strategy was to implement TBFS at the community/village level but with individual ownership. Therefore SHGs were formed to mobilize and organize the community. They played a crucial role in the planning and distribution of inputs, execution of community activities such as establishing farm ponds, mobilization of savings and credit, important decision-making regarding control of grazing, etc. 324

337 Hasiru Habba - Unique feature of TBFS implementation Hasiru Habba or Green Festival is a unique aspect of TBFS implementation by BIRD-K. On an appointed day, declared as the Hasiru Habba day, the entire community is decked up in green and goes in a large procession throughout the village calling out to those that have not yet joined the procession. At every farmer s plot, where, trenches and rainwater harvesting ponds have already been dug, saplings of species desired by the farmer s family is kept ready for planting. The entire group of people in the procession go to each such plot and in an admirable show of community action, plant all the saplings in the plot. One by one all the plots in the community marked for action that day is completed. This show of community action, at one stroke provides for spreading large-scale awareness, motivating people and ensures community bonding and shared responsibility. These groups also served as sharing platforms. The groups also promoted social bondage among the participants and encouraged voluntary participation such as common harvesting and other activities, which are highly labour-oriented. Preparation of MLPs & monitoring implementation A micro-level plan is prepared for each farmer s plot with inputs from the farmer, other members of the SHG and BIRD-K experts. Based on an aggregation of the MLPs, the decentralised nurseries plan their work. Trenches and the rainwater harvesting ponds are dug on individual plots with community action. 1-2 mandays of labour is expected to be contributed to each plot by every member of the group. Absence has to be compensated by paying the stipulated manday cost. Monitoring of quality and quantity of work is done by the individual farmer and a monitoring committee of the community. 325

338 Table : Summary of timing of benefits from TBFS Location Type of planting Returns Remarks Fence Cassia siamea, Green leaf for Returns are in the short term Glyricidia, Euphorbia, manuring Since many of these species etc., planted at 1-2 Keeps out grazing coppice well, they can provide spacing animals since they cover for years. Trenches Forest species such as teak, acacia, silver oak, mahogany, sisum, etc., at 3 saplings per trench of 10 length. Farm bunds Main crop land Farm pond Green manure, fodder, drumstick and some fruit trees such as papaya Fruit trees such as mango, sapota, guava, 100 trees/ha. Fish rearing, planting some vegetables on the bund grow fast and thickly Provide poles and timber Yearly/seasonal Pruning will yield fuelwood Provides year-round fodder Biomass for composting and green manuring Fruits Fruits for sale Pruning yields fuelwood Fish and vegetables for own use Returns are both in short term and long term Timber yield which is over years acts as a life insurance cover to the farmer Pole yield is in the medium term Fuel-wood is the short term return Returns are in the short term and medium term Returns are in the medium term Returns are in the short term The introduction of TBF systems has resulted in increased production of fodder. This has further led to integration of livestock such as goats, sheep, upgraded cows, etc. A well-reared sheep fetches a net income of Rs.1000 per year. Each goat generates an annual income of Rs Sufficient availability of biomass has facilitated promotion of in situ organic composting practices like vermin-composting and NADEPP-composting, etc. This has further resulted in reduction of input cost which is one of the major factors that contribute to the vicious circle of poverty of Indian farmers. The families could realize actual benefits from forestry trees in terms of increased availability of fuel-wood and fodder. The forestry trees planted in the trenches and bunds are regularly pruned to avoid shade. Such pruned twigs meet the requirement of the family in terms of fodder and fuel-wood. The fertility of the land has improved as a result of application of compost and vermincompost. This has also been partly due to the year-round presence of the family on their land. Trees have helped in the production of fuel-wood thereby reducing the time that women spent on collecting fuel-wood From the fifth year onwards, the participant families have started earning an average amount of Rs.5000 to Rs.6000 every two years from the sale of poles or fuel wood. From the fifth year onwards, from horticulture plants such as mango, cashew and tamarind, participants are earning an average amount of Rs.5000 to RS.10,000 per ha. Many participants have shifted their residences to their plots since year-round employment is now available. This in turn has resulted in further improvement in agricultural practices. 326

339 Finally, mixed cropping has helped diversify the cropping portfolio of farmers thereby reducing risk of crop/market failure for any single crop. Further, with income from various components coming in different time periods, risk has been mitigated and security of income enhanced. Environmental benefits Trenches capture run-off water and thereby recharges groundwater. A single filling of a trench holds upto 1000 litres of water. Trenches also trap the soil that comes along with the run-off water and thereby prevent loss of fertile soil. The rainwater harvesting pond can harvest 2,50,000 litre of water in a single filling. Thus, trenches and these ponds together help in improving the soil moisture regime in the plot. Increased soil cover in the form of trees helps in checking soil erosion and in reducing soil moisture loss, especially during summers. Availability of leafy green manure and other biomass helps in preparation of compost, which in turn improves the soil organic content Availability of fodder leaves helps in reducing grazing pressure on common lands and helps regenerate them better. Trees act as windbreaks and help in protecting crops and soil during storms. Relevance of TBFS to BRLP Many of the districts of southern Bihar sought to be served by BRLP falls under dry-land farming, where agriculture is still the primary occupation. However, returns from farming are meager and uncertain. Precious land resources remain vacant for most part of the year as most of the farmers can take only one crop of about 3-4 months duration. This situation results in forced migration for small and marginal farmers during off-season leading to related social problems such as isolation of families and deprivation. Therefore, a viable strategy is required to help increase the productivity, income and range of livelihoods in these areas without endangering the already fragile eco-systems. Tree-based Farming System that incorporates tree farming into agriculture through the careful selection of tree species to yield food, fodder, manure, fuel-wood and timber is an appropriate solution. The yield of fodder and manure helps to diversify the source of income by supporting dairying and composting. Further, with income from different sources being spread over different time horizons with different risk profiles helps the farmer in better negotiating crop/market loss. Integrating with BRLP TBFS can be integrated with the BRLP through existing mechanism for promoting and implementing CMSA. Expertise in the areas of forestry, horticulture and watershed activities would need to be added to the district/block level team to support the implementation of TBFS. SHGs can be the implementing mechanism at the village level supported by the Village Resource Person. For more information contact: Dr. G.N.S. Reddy Vice President BAIF Institute for Rural Development Karnataka, P.B. No. 3, KAMADHENU, Sharadanagara, TIPTUR , Tumkur District, Karanataka, India. Phone: , , ; Fax: birdktpr@gmail.com, Web: 327

340 Thematic Area 2: Animal husbandry Parampara Herbal Producers Company Introduction In India, cattle and small ruminants are the most sought after assets for securing a livelihood. Most women SHG members prefer this option while preparing a microcredit plan since they have sufficient skills to use the assets and local resources are available to maintain the assets. However, often managing the health of the animals proves difficult either due to lack of access to veterinary services or due to its expensiveness. The Institute of Ayurveda and Integrative Medicine 75 (IAIM) along with the Dakshina Kannada Milk Union and the National Dairy Development Board (NDDB) has successfully harnessed local veterinary traditions (ethnoveterinary) for treating a selected and prioritized set of cattle diseases. Following successful clinical trials they have helped set-up a community owned and managed business enterprise (Parampara Herbal Producers Company) to manufacture and market these ethno-veterinary products. Intervention The Indian subcontinent has a rich ethnoveterinary health tradition owing to the large agriculture based livelihoods and rich biodiversity. Due to various social, economic and political factors this tradition is facing the threat of rapid erosion. IAIM along with other organizations started a programme to revitalize these traditions. A participatory Rapid Assessment Programme was designed in order to find the best ethnoveterinary practices in select location of southern India. This method is a community-based rapid assessment in which ethnoveterinary folk healers, veterinary doctors, ayurvedic doctors, botanists and field workers play key roles. A total of 116 plant species for treating nearly 19 health conditions that are commonly seen in cattle were taken for assessment in different geographical locations. The basic principle of this assessment is a consensus of opinion among different medical systems about the management of a health condition. It was found that nearly 70% of the practices had supportive evidence from Ayurveda and modern pharmacology on their prescribed uses. It was also found that 55% of those positively assessed plants are easily available locally in each of the biogeographical locations and could be easily grown in homestead gardens. The process, steps and outputs of a typical RALHT is shown in the figure below 76 : 75 Earlier called Foundation for Revitalization of Local Health Traditions (FRLHT) 76 Documentation & Participatory Rapid Assessment of Ethnoveterinary Practices, Raneesh Santhanakrishnan etal, August 2007, Indian Journal of Traditional Knowledge, Vol.7(2), April 2008, pp

341 Figure15.18: Rapid Assessment of Local Health Traditions Implementation Strategy In this section how the above process was applied in a specific case and products identified for promotion is described. The following tables show the outputs from RALHT conducted in Dakshina Kannada District Milk Union area in Karnataka: 329

342 Table: 15.39: Prioritized list of animal health conditions Table: 15.40: Folk understanding of mastitis & clinical features 330

343 Table: 15.41: Comparative assessment of remedies from different sources Table : Comparative Assessment of local remedies for treating mastitis Remedy ISM 77 Doctor Veterinary Community Promotion Doctor Remedy 1: Wattaka volubilis leaf Yes Yes Yes Yes & stem paste applied over affected areas of the udder Remedy 2: Wattaka volubilis leaf & stem paste and Commelina benghalensis leaf paste applied over affected areas of the udder Remedy 3: Handful of Andropographis serpyllifolia (leaves & root), 15 flakes of Allium sativum bulb, and Piper nigrum (9 no.s) are ground to a paste and administered orally for a period of 9-21 days. Yes Do not know Yes Yes No Ayurvedic references to Andropographis serpyllifolia in treating mastitis No information on its use for treating mastitis in modern pharmacology Yes Needs more investigation before it is accepted or rejected Based on the RALHT process a set of products were identified and put under clinical trial under the supervision of Dr.Raviraja Udupa, Veterinary doctor from the Dakshina Kannada Milk Union. Following successful trials, the products were standardized and the decision to manufacture and 77 Indian System of Medicine (Ayurveda, Siddha, Unani) 331

344 market them was taken. Accordingly the Parampara Herbal Producers Company (PHPC) was established in 2003 by 280 members from amongst cooperative milk producers of Kaup block of Udupi district as well as 30 Self-Help Groups of Dakshina Kannada Milk Union with help from IAIM and the NDDB. Share capital & sales turnover A sum of Rs. 5,00,000 is the current share capital. The General Body in June 2010 has approved to increase this share capital to Rs. 25,00,000. Sales Turnover for the financial year amounts to Rs. 18 lakhs. Net profit after all taxes was Rs.62,923 with an Earnings per share of Rs During this year, PHPC has already achieved a sales turnover of Rs. 8 lakhs and is expected to achieve around Rs. 25 lakhs. Table :15.43 Products of PHPC Product Use Price Rs. Mastaheal (100 gms.), Herbal ointment used in management of Rs.55 mastitis Larvin (50 gms.) Herbal ointment used in management of Rs.35 wounds Nirgundi Taila (50 ml. and 100 ml. Pain relieving herbal oil Rs.25 & 45 Hi- Milk Gain (500 gms.) Herbal mixture used to improve both the quality and quantity of milk Rs.72 Fertaheal Herbal mixture used in management of Rs.116 infertility and downer cow syndrome Triphala Vet Herbal choorna used in management of bloat and indigestion Rs.28 Figure : Ayurvedic Feed Addative 332

345 Of these the greatest demand is for Ferta Heal Powder, Hi-Milk Gain Mixture and Mastaheal Ointment. The raw materials for these products are procured from around 300 home herbal gardens of SHG members. Those that are not produced locally are purchased from the market. Where home herbal gardens have been set up, women SHG members have been trained in preparing veterinary remedies at home for treating their own animals. Benefits of ethno-veterinary medicines Economic benefits Apart from sharing the profits (a sum of Rs has been distributed so far) amongst shareholders (280 dairy farmers and members of 30 SHG groups), the use of ethno-veterinary medicine delivers benefits to the users too. For example, it costs Rs. 1200/- per episode of treatment of mastitis. Whereas the treatment with the help of Mastinil costs around Rs. 200/-. Another benefit is that A Year - a Calf is possible through the use of Fertaheal. This means the dairy farmer gets to earn his income from early calving, which otherwise gets affected due to repeat breeding for a number of months. The product High Milk Gain helps the milk producer to improve the quality of milk (higher SNF and fat) as well as the quantity of milk produced, without use of synthetic products. Health benefits Most important benefit is that these products are available through Milk Producer Societies 24 x 7. Even before calling a veterinary doctor, a milk producer has an opportunity to use these readily available products, to improve the health of their animals as a first response. Some examples are given below: Haemogalactia is managed by the dairy farmers through use of a locally available medicinal plant (which is a weed) namely Mimosa pudica. The retained fetal membrane is managed through use of bamboo (Bambusa arundinacea) leaves. Curry leaves (Murraya koenigii) is used for management of infertility. Teat herpis is managed through use of Memycylon malabaricum. Adhatoda zeylanica leaves are used for management of simple cold and cough. Tinospora cordifolia stems are used to manage common fever. Aloe vera pulp is used both for minor cuts and wounds as well as gastritis. Herpis is managed by the use of Memycylon malabaricum. Future plans Promote homestead cultivation of medicinal plants for both home based remedies for primary vet-care as well as to supply the surplus to PHPC. Expand the number of products from 6 to 15, covering both human as well as veterinary healthcare as well as other consumer products from locally and organically cultivable medicinal as well horticultural produces. Increase the sales turnover from Rs. 18 lakhs to Rs. 1 crore by distributing the herbal products to other district milk unions of Karnataka. Explore the potential for establishment of four more production units depending on market needs in other zones of Karnataka. Relevance of ethno-veterinary medicines to BRLP Dairying is one of the most sought after livelihoods in rural India. Nearly, 3.75 million households are expected to take up dairying as one of the livelihoods under BRLP. However, having invested in cows 333

346 and buffaloes, quite often poor vetcare services result in either loss of the animals (asset) or poor returns to the owners. Using RALHT process to identify local remedies, local sources of medicines and systematically assessing them would help build knowledge in the community to better manage the health of their own animals. Further, when these products are manufactured and marketed, it opens up a new source of employment and enterprise activity for women SHG federations. With home herbal gardens being set up to supply plant materials to the production unit, further flow of income to the individual household is ensured. Integrating with BRLP Therefore, the process of RALHT to identify ethno-veterinary services should be made an integral part of any micro-credit plan that involves cattle-rearing. Further, following the identification of the local remedies and the plant material needed, home herbal gardens should be set up. Thus, setting up of home herbal gardens should also be treated as an integral part of the micro-credit plan for cattle-rearing. The decision to set up a Producers company may be taken at the level of a SHG Federation once the market for such products is assessed in the area. BRLPS should seek to collaborate with IAIM to build the knowledge and skills of their personnel at the district and block levels in ethno-veterinary services and the process of RALHT itself. For more information contact: Mr.Hariramamurthy, Institute of Ayurveda and Integrative Medicine No.74/2, Jarakbande Kaval Post: Attur, Via Yelahanka Bangalore Tel: / 8001/ 8002/ 7926 & g.hari@frlht.org, hariram_01@yahoo.com 334

347 Thematic Area 3: Green Energy Innovative Use of CER/VER to Finance Biogas+ Introduction Keeping diary animals (cows and buffaloes) is one of the most sought after livelihood options for rural Indians. In fact, it is a tradition that is based on treating dairying as an integral component of sustainable farming. Cowdung when allowed to decompose in pits along with other agriculture biomass waste becomes a good source of organic manure. However, this process releases methane (CH 4 ) and carbon-di-oxide (CO 2 ), both gases that have high global warming potential. Using cow dung in specially designed digesters helps harvest the methane, which could be used as a domestic cooking fuel. This is called biogas technology. The Ministry of New & Renewable Energy (MNRE) was promoting this under a national programme that offered subsidy to those families that opted for installing a biogas plant. However, with the withdrawal of the programme, adoption of this technology has flagged. SKG Sangha, an NGO based in Kolar district of Karnataka and working in several part of the country, especially in Karnataka, Andhra Pradesh and Tamil Nadu, is now promoting this technology with the help finance that has become available from sale of avoided emission reduction units. This represents an innovative use of CDM finance to promote an environmentally sound technology. Intervention SKG Sangha is promoting a fixed-dome type biogas digester of 3m 3 and higher capacities. Unlike in traditional biogas digesters where the spent slurry that comes out of the digester is let out into the open and wasted, SKG Sangha builds a vermicomposting tanks to receive the slurry. This slurry along with other agri-residue is fed to earthworms that convert this mixture into vermicompost, a good and easy to handle organic manure. However, in the absence of subsidy that the MNRE was offering, SKG Sangha has identified buyers of CERs (Certified Emissions Reduction units) and VERs (Verified Emission Reduction Units) to finance its operations and provide a subsidy to the biogas adopting families. SKG Sangha has estimated that a single biogas unit of 3m 3 generates about 6 CERs/year or 60 CERs over a period of 10 years, the maximum crediting period for claiming CDM benefits without reviewing the baseline emissions. The current discounted rate for claiming CERs in advance for 10 years is about 7 Euros 78, which translates into Rs.25,200 for each biogas plant. This amount is used to finance its costs of operations, capital subsidy for biogas installation and providing maintenance and monitoring services over the next ten years. The customer for the biogas pays about 20-50% of the total cost of installing and operationalizing the biogas. Implementation strategy SKG Sangha has a network of Village Representatives (VR) who scout for potential customers for biogas plants. On finding a customer, s/he informs SKG Sangha, who then depute a trained mason drawn from their cadre of biogas masons to the site. The customer provides material such as sand, bricks, cement, etc., along with labour to complete installation. The VR supervises the installation and takes an approval of works done and acceptance letter from the customer Euro = Rs

348 SKG Sangha bundles about 10-15,000 such biogas plants and presents them as a Small-scale bundled CDM project to potential buyers. On finding a buyer, the process of preparing a Project Design Document (PDD) and validation of the PDD is carried out. The buyer pays upfront for the estimated CERs. SKG Sangha then uses this amount to finance the implementation of the project. The VRs are local youth selected based on their interest, aptitude and ability to do the work. They are paid a salary of Rs incentives for meeting their targets. In addition, they are also responsible to attend to customer complaints and monitor the working of the biogas plant in their area of operations. Typically, a VR is expected to cover 5-10 villages depending on the potential. The VRs are supervised by block level and district level supervisors. Some of the block level supervisors are drawn from VRs who have been promoted. Currently there are more than 50 Village Representatives working with SKG Sangha. These VRs attend to their work with SKG Sangha in addition, to doing their own farming and other activities. Benefits from SKG Sangha s Biogas Projects Economic benefits Savings on time spent in collecting and processing firewood which can be used for economic activities Faster cooking time on biogas as compared to traditional biomass cook stoves Sanitation is improved as the cow dung, cow urine and other wastes are treated in scientific manner leading to lower incidence of diseases in the households Health of women and children is improved as indoor air pollution is avoided and sanitation is improved Child education improves as they are no longer needed in collection and process of fire wood and the mother can spare time on child education Soil fertility increases as the vermicompost in the form of organic fertilizer Employment generation is assured in the rural areas by implementation and maintenance of the project. Environmental benefits GHG emission reduction is about 15 tons CO2 equivalent/year/unit, which can be avoided by using biogas digesters Avoided biomass burning of 4 tons per year saves about 5 tons CO2 equivalent About 22 tons of cow dung results in emission of about 4 tons of CO2 equivalent About 25 tons of biomass and agricultural residues and animal urine results in emissions of 4 tons of CO2 equivalent One ton of avoided chemical fertiliser manufacturing and usage will contribute about 2 tons of CO2 equivalent Avoidance of kerosene usage in the house holds for emergency needs and to start fire in traditional biomass stoves saves about 100 litres of kerosene per year and N2O emissions because of wood burning and chemical fertiliser application and cow dung and urine fermentation in anaerobic traditional compost pits also contribute to emission savings Prevents cow dung, cow urine and other wastes from getting into water systems thereby avoiding polluting them. 336

349 Relevance of Biogas to BRLP With dairying being the most sought after livelihood intervention across Bihar, a technology that helps reduce the negative environmental impact in terms of methane and CO 2 emission from poor management of cow dung and urine would have wide spread application and relevance. In addition, BRLP is planning to introduce biogas and vermicomposting as major thrust areas under the new SPIP. The experience of SKG Sangha in integrating biogas with vermicomposting as a single unit would be valuable to BRLPS. Further, with CDM funds being available for financing such initiatives as demonstrated by SKG Sangha, this technology can be made more affordable and accessible. For more information contact: SKG SANGHA H.No. 532, 2nd Main Road, Gandhi Nagar, KOLAR Karnataka State, INDIA. Postal Code Ph: Fax: info@skgsangha.org, skgsangha@gmail.com 337

350 Lighting A Billion Lives (LaBL) Introduction In the 21 st century electricity is a basic need for a civilized human life. Yet, over 2 billion people are without access to electricity; of this 25% are in India alone, almost exclusively in rural areas. Many homes wake in darkness and are forced to go to bed once the sun sets. Lighting in these families is often provided by feeble, smoky kerosenee lamps, which have an adversee impact on eyes as well lungs of the users, especially children who study. Grid extension is being taken up on an accelerated mode by the government, but with crunching power shortages that the country is facing, reliable power supply to these newly connected rural areas is but a wishful dream. In this context, The Energy & Resources Institute (TERI) has launched an innovative campaign to provide basic lighting to a billion lives. In the process, it has not only provided lights to rural people, but has also created numerous rural eco-jobs /enterprises. Intervention Solar PV technology-based solutions for rural lighting have been around for more than 2 decades. Its penetration has been poor largely on account of its high up-front cost of ownership. Often, capital subsidies and/or loans have been used to make it more affordable. However, even this has not been very successful in reaching out to the poorest. Sporadic attempts at renting out solar lighting devices have shown encouraging results, but have stumbled while scaling-up for lack of a well thought-out issues on a implementation and financing mechanism. TERI, through its LaBL (Lighting a Billion Lights) campaign has addressed thesee comprehensive basis. LaBL operates on a fee-for-service model wherein solar lanterns are rented out every day in exchange for a nominal recharging fee. This is institutionalized by setting up Solar Charging Stations (SCS) in villages for charging the lanterns and providing the lanterns daily on rent to households and enterprises. Figure15.20: LaBL Solar Charging Station Schematic 338

351 Figure 15.21: LaBL Solar Charging Station A typical SCS designed by TERI specifically for LaBLL consists of 5 (five) self contained modular kits each consisting of 10 (ten) lanterns, one junction box and one solar panel (50 Wp) each. Thereby, one SCS cumulatively has 50 solar lanterns along with 5 (five) solar panels and 5 (five) junction boxes. The SCS being modular, the number of solar panels along with solar lanterns can be decreasedd or expanded (in multiples of 10 lanterns) based on the needs and capacities of the community. The Solar Lantern itself is based on LED (Light Emitting Diode) technology which guarantees a long life of the lamp. The lantern provides light for 5 6 hours daily using LED lamps on full charge of the battery providing illumination of lumens or light equivalent to a 40 W incandescent bulb. The LED works for a full night (about eight hours) if operated on the dimming option. If required, a battery is also provided in the SCS which acts as a back-up source for charging the lanterns during cloudy or foggy days or for any emergency charging during night. Implementation strategy The Campaign facilitates in creating local LaBL-Entrepreneur driven delivery channels for distribution and servicing of solar lanterns to rural communities where kerosene is the predominant fuel for lighting not only in households but also in small enterprises such as shops, local bazaars, tuition and coaching centers, and various cottage industries. It is implemented in partnership with NGOs/Trusts/PRIs referred to as LaBL-Partner Organizations. These partners coordinate, monitor and advance the Campaign in their areas of operations and directly supervise and handhold the entrepreneurs for effective operation and management of the charging stations. TERI is the overall campaign coordinator and manages the programme in coordination with various other stakeholders. TERI facilitates turnkey installation and commissioning of the SCS through the LaBL Technology Partner. While stringent quality check is ensured by TERI, LaBL TP undertakes the supply and installation of the hardware and the post warranty after sales service is providedd by the LaBL TRCs (Technology Resource Centres). The LaBL PO (Partner Organization) also has the option of becoming LaBL TRCs. TERI conducts rigorous theoretical and in field training for the prospective LaBL TRCs beforee they are authorized as TRCs. The TRCs are authorized to cover a SCS in a cluster for providing post warranty after sales service against a service fee from the LaBL Entrepreneurs. Continuous upgrade in the technology and its acceptance in the society are also ensured by TERI during all phases of the campaign. LaBL PO: The entire campaign rests on the strong partnerships developed at the grassroots level with LaBL PO. LaBL POs facilitate direct livelihood to at least one person in the village by engaging 339

352 her/him as LaBL Entrepreneur. The LaBLL entrepreneurs act as custodians of the SCS under the project and are responsible for regular O& &M (operation and maintenance) of the SCS. The income from the renting of the solar lantern can be shared by the LaBL PO and the LaBL entrepreneur, with the amount decided mutually. However, a part of the money should be spent for O&M of the charging station and for replacement of the battery as may be required after months of operation. In case, any loan has been obtained towards co-financing, a part of the income also has to be spent for repaying the loan. The SCS can also be customized to generate additional income by providing facilities such as charging of mobile phones, other ICT based services and sale. Figure LaBL Partnership Network LaBL Users Fee for Service (5-10 LaBL Installation Partner Installation & Commissioning of h i t ti LaBL Entrepreneur /Franchisee (Youth, women, SHGs), Technologic al Resource Centre Financing model The cost for standard LaBL SCS with 50 LED lanterns ranges from Rs to Rs (depending on the specifications and configuration of the system). This includes complete hardware as well as the cost of installationn and commissioning of the SCS at the village location. TERI has created a LaBL fund for providing support to install SCS in the villages. A subsidy amount of up to Rs is available per SCS from the LaBL Fund at the sole discretion of TERI. The balance amount needs to be leveraged by LaBL PO either as a contribution from their own sources OR by availing a loan from banks/financial institutions. Operation and management of the SCSs is sole the responsibility of the LaBL PO. The earning from the rent amount could be utilized for this purpose. Any other administrative cost also has to be managed by the LaBL PO. The following tables provide the indicative revenue model for the SCS: 340

353 Table : Capital Cost & Capital Financing Capital Required Capital for Solar Lantern Charging Station Rs.150,000 (Less) Expected Support from MNRE Rs.37,500 (Less) Expected Support from LaBL fund Rs.62,500 Expected Investment by Entrepreneur/ Bank Finance Rs.50,000 Table : Profitability of SCS Monthly Income Income from Renting (average utilization 45 lanterns/day) Rs 5640 Income from mobile charging (say 150 mobile charging/month) Commission from sale of standalone solar lanterns & solar torches Total Monthly Income Monthly Expenses Rs.450 Rs. 110 Rs.6200 Debt Servicing (@12 % interest, 5 years tenure) Rs 1100 Operation and Maintenance expenses Rs.700 Total Monthly Expenses Rs 1800 Monthly Net Income (say) Rs.4400 Benefits of LaBL The lighting benefits of LaBL to those renting the solar lanterns are obvious. For the first time many are experiencing the benefits of electric lighting without having to pay for the ownership cost of the equipment. Economic benefits The process of operating and managing a SCS, where lanterns are charged during the day and rented in the evening creates business opportunities for the rural entrepreneur. Thus, the LaBL Campaign apart from providing reliable and ensured lighting to households at an affordable rate, also facilitates entrepreneurial development among rural communities. The solar charging station can, for example, also provide other services such as telecommunication services, purification of potable water, mobile telephone charging, etc. Currently, the LaBL Campaign has managed an impressive record in the field. 33,000 households covering 165,000 people have been lit up in 600 villages across 16 states of the country. In the process it has created 600 eco-enterprises each earning about Rs /month. Environmental benefits Each solar lantern in its useful life of 10 years displaces the use of about litres of kerosene thereby mitigating about 1.45 tonne of CO 2, assuming 4-6 litres of kerosene consumption per month per household. Thus, for the 33,000 households covered, the total carbon savings is about 48,000 t of CO 2 341

354 Relevance to BRLP Lighting is a basic necessity of life. Often, it also enhances productivity and helps increase household incomes. Vast areas of rural India are either underserved by the grid or do not have a connection at all. A large no. of BRLP target groups would fall into these categories that exist without modern lighting services. Being served by a public electric grid system is but a pipe-dream for most of them. Perhaps, a LaBL kind of initiative that does away with the need to own costly SPV systems but offers them on a rent through a local entrepreneur may be best way to serve them in the short to medium term. Thus, LaBL would be relevant to BRLP, especially where clustering of at least 50 customers is possible. Integrating with BRLP BRLP should partner with LabL at the state level to help identify villages not served by the electric grid. At the field level, the LaBL is best anchored at the Federation level which can act as the LaBL- PO. Individual members of SHGs or local entrepreneurs may act as the LaBL Entrepreneurs. For more information contact: Mr.Debajit Palit The Energy and Resources Institute (TERI) Darbari Seth Block, IHC Complex, Lodhi Road, New Delhi Tel: /111; Fax: /45 debajitpalit@gmail.com 342

355 Gasifier Stoves with Biomass Pellets Introduction Nearly 60% of rural households in Bihar depend on biomass for their cooking energy needs. The stoves for burning these fuels are highly inefficient and result in just 8-12% of the energy in the fuel being converted into energy useful for cooking. Further, these stoves emit a lot of smoke and soot which results in severe indoor air pollution which has a direct bearing on the health of the women who cook using these stoves. First Energy a company based in Pune produces and markets a stove based on a design patented by the Combustion, Gasification and Propulsion Lab at the Indian Institute of Sciences (IISc.). This stove called the Oorja stove is based on the principles of gasification. Technology Ordinarily, when biomass is burnt, it results in production of heat, water vapour and CO 2. This reaction takes place when there is sufficient oxygen available to convert the carbon in the biomass into CO 2. However, if the amount of O 2 is restricted, then the carbon in the biomass is converted into CO (carbon monoxide), CH 4 (methane) and H 2. This reaction is called gasification because, biomass (which is nothing but carbohydrate, C 6 H 6 O 12 ) is converted into a gas called producer gas which is a mixture of CO, CH 4 and H 2. This is an inflammable gas and can be used for producing energy of various forms. This reaction is used in a gasifier stove to convert biomasss into producer gas which is then combusted to create heat for cooking applications. Typically, a gasifier stove consists of two concentricc cylinders that are joined at the base. The outer cylinder has perforations to allow air to circulate. The inner cylinder is lined with ceramic and has a cast iron grate below which is a 2W blower which runs of 2 AA battery cells. The inner cylinder has holes at the top, upto which biomass fuel in the form of compressed pellets are filled. In contradiction to normal practice, the fuel is lit from the top after sprinkling some kerosene. Once the fuel starts burning, the blower is switched on to provide a steady stream of air, which however, is not sufficient for complete combustion. This results in gasification of the fuel leading to release of producer gas. Figure Oorja Gasifier Stove 343

356 The process of fuel being burnt heats up the inner cylinder and causes air to be sucked by convection into the annular space between the two cylinders. This air whichh gets heated up on contact with the wall of the inner cylinder rises up and is emitted through the holes at the top of the inner cylinder. There it comes in contact with the producer gas being produced by gasification of the fuel pellets. When the hot air mixes with the producerr gas, the mixture is instantly ignited and burns above the fuel burning zone, creating a clean smokeless and soot less flame. By adjusting the blower, the flame can be adjusted much like a LPG gas stove. Figure : Clean, Smokeless flame from Oorja gaifier stove Implementation First Energy Private Limited (FEPL), a company based in Pune manufactures and markets these gasifier stoves under the brand name Oorja. Each domestic Oorja stove produces a power level of 3-4kwth which is equivalent to the power produced by one burner on a typical LPG stove. It consumes 600g of biomass fuel pellets of a certain density. In order to ensure a uniform and comfortable cooking experience, the fuel should be of standard quality. Therefore, FEPL also organizes supply of the biomass fuel in the form of standard density pellets. So far, FEPL has marketed 500,000 Oorja stoves and nearly 35,000 tons of biomass fuel pellets through a network of more than 3000 village level women entrepreneurs. For every 1000 stoves, FEPL identifies an entrepreneur who is provided technical support to set up a micro-pelletizing plant to produce and Village selection, local supply fuel pellets to the users of the Oorja stove. The management, monitoring, biomass pellets are made from locally available biomass residues such as ground nut husk, saw dust, cotton stalks, etc. Benefits of Oorja Stove The Oorja stove not only provides a clean, comfortable and LPG-like cooking experience to the user, but also releases the rural woman from having to fetch fuel from distant places. In addition, it creates enterprises in the form of women entrepreneurs for marketing the stoves and the fuel pellets and other entrepreneurs for producing biomass fuel pellets. 344

357 Relevance to Bihar SRLM Nearly 60% of rural households in Bihar depend on biomass fuel for their cooking energy. As mentioned earlier current cooking devices lead to severe indoor air pollution, which results in high levels of morbidity among women. The net result is a severe dent in the earning capability of the women, not to mention the increased expenditure on account of respiratory diseases. The SPIP for Bihar mentions that production vermicompost would be a major thrust area in implementing SRLM in Bihar. In order to wean away women from using cow dung cakes as a cooking fuel directly, BRLPS is planning to introduce integrated biogas-cum-vermicomposting units. However, biogas produced from cow dung alone would not be sufficient to cook a meal for a typical family of 5 members. Invariably, biomass would be used leading high indoor air pollution. A gasifier stove based on locally available biomass is an appropriate solution to address this environment and health problems associated with cooking energy. In addition, since it also provides a basis for creating enterprises for women in the form of marketing the stoves and producing biomass fuel pellets, this Green Opportunity is appropriate for introduction in Bihar under the forthcoming SRLM implementation. For more information contact: Mahesh Yagnaraman CEO, First Energy Pvt. Ltd., Office No. B ,1 st Floor, B Wing, Signet Corner S.No.134, Baner, Pune , Tel: maheshyagna@firstenergy.in, Website: firstenergy.in 345

358 Annexure 3 Regulatory Requirements List This list will form the basis for developing Codes of Practice by all federations (SHG federations, producer collective federations) supported by the SRLM. It contains a list of activities that are not to be supported by the SRLM as they would contravene the laws and regulations of the State Government, Government of India as well as Safeguard Polices of the World Bank. Agriculture All bore holes (either at the time of construction or abandoned ones) should be properly covered to prevent accidental fall of children. Purchase, stock, sale, distribution or exhibition of the following pesticides will not be supported: o pesticides banned by the Government of India 79 and Government of Bihar o pesticides classified in Class Ia, Ib and II of WHO classification 80 Purchase, stock, sale, distribution or exhibition of pesticides and chemical fertilizers (including manufacture and marketing of organic inputs) will not be supported without the requisite licenses from the District Agriculture Officer. Stocking, exhibiting, selling or distribution of any fertilizer which is not of prescribed standard is not supported (Fertilizer Control Order 1935). Without the previous sanction of the collector, construction of any new irrigation channel from any river or stream (existing within the limits specified in the notification by State Government) is not allowed (Bihar Irrigation Laws 1922). Forests and Wildlife 81 Grazing of livestock in forest areas without taking required permission from the Forest Department will not be supported (Wild Life Protection Act 1972). Activities that involve use of forest land for non-forest purposes without the permission of the Forest Department 82 will not be supported without prior approval of the Central Government (The Forest Conservation Act 1930). Activities like clearing, kindling fire, damaging trees (felling, girdling, lopping, topping, burning, stripping bark and leaves), quarrying stone, etc in reserved and protected forests 83 are not supported (Indian Forest Bihar Amendment Act, 1939). Extraction, transport, processing, sale of forest produce including non timber forest produce without taking required permission will not be supported 84. Destruction, exploitation or removal of any wild life (including specified plants and forest produce) from a sanctuary or the destruction or diversification of habitat of any wild animal, or diversion, 79 See Annex 7 80 See Annex 8 81 Relevant in case of districts with forest area (for example, Bhabua, Jamui, West Champaran, Gaya, Rohtas and Nawadha have more than 50,000 ha under forests). Applicable in all cases except those that are in accordance with the provisions of the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, Approval of the Central Government is required. 83 The districts with protected forest areas (national park, sanctuary, closed area) are: West Champaran, Vaishali, Monghyr, Gaya, Rohtas, Begusarai, Jamui, Nalanda, Bhagalpur, Katihar and Darbhanga. 84 The Mukhiya of the GP can issue transit permit for transportation of timber from farmer s land to any place within the district. The Divisional Forest Officer can issue transit permit for transportation of timber from farmer s land to any place outside the district. No permission is needed for transportation of 10 species - Mango, Tamarind, Jamun, Kathal, Mahua, Bamboo, Peepal, Banyan, Paakad, Badhara. 346

359 stoppage or enhancement of the flow of water into or outside the sanctuary, cultivation of specified plants is prohibited without a permit granted by the Chief Wildlife Warden 85 (Wild Life Protection Act 1972). Setting up of saw mills or any other timber processing mills without the permission of the Forest Department will not be supported. Fisheries and Water Bodies Fishing in the prohibited/closed season (15th June to 15th August) will not be supported (Bihar Jalkar Management Act 2007). Fishing in Free Fishing Zones without a Free Fishing Card issued by the District Fisheries Officer will not be supported 86. Fishing using nets with mesh size smaller than the permissible size (4 cm) and fishing of fingerlings of culturable fishes will not be supported (Bihar Jalkar Management Act 2007). Fishing using destructive fishing practices (use of poison, explosives, etc.) will not be supported (Bihar Jalkar Management Act 2007). Putting up a fence or any obstruction restricting the movement of fish in rivers and reservoirs will not be supported (Bihar Jalkar Management Act 2007). Drawing water from tanks, reservoirs and mauns for irrigation without the requisite permission will not be supported (Bihar Jalkar Management Act 2007). Disfiguration or modifications to jalkars is not allowed (such as flood proof or flow control measures) without permission from District Forest Officers (Bihar Jalkar Management Act 2007). Culture of invasive species (e.g., African Catfish) will not be supported. Activities which cause or permit any poisonous, noxious or polluting matter into stream or well or sewer or on land are not supported (Water Prevention and Control of Pollution Act, 1974). Do not allow activities like curing, tanning of skins and hides near 87 residential areas or water bodies (Ministry of Environment and Forest). Infrastructure and Industry Construction of check dams, embankments, etc., will not be supported without prior approval of the design by the Minor Irrigation Department, Government of Bihar. Embankment / check dam exceeding 3 meters in height will not be supported. Any industrial activity will not be supported without requisite permission from the Bihar Pollution Control Board. Brick making activity using soil from agricultural fields will not be supported. Mining activities will not be supported. Activities involving the use of prohibited chemicals (for example, banned benzidine based dyes and azo dyes) will not be supported 88. Activities involving use of chemicals will not be supported unless appropriate safety measures and safe disposal of effluents are undertaken under guidance from the Bihar Pollution Control Board. Activities with Significant Adverse Environmental Impact All activities likely to have significant adverse environmental impacts that are irreversible or unprecedented, with impacts that may affect an area broader than the site of the activity are not to be supported. 85 In case of Nilgai menace to standing crop, the DM/SDO is empowered to take action. 86 Information given by District Fisheries Officer, Vaishali. 87 Tanning units should be at least: 5 km away from ecologically sensitive areas; half km away from flood plains affected by dam in the upstream or flood control system; half km away from high way or railway line; 2 km away from water bodies used for drinking water purpose or as bird sanctuaries. 88 See Annex 9 for list of dyes banned in India. 347

360 Annexure - 4 Environmental Guidelines for Producer Collective Federations Agriculture Compulsory actions Take license to sell, stock, exhibit and distribute pesticides from the competent authority (District Agriculture Officer). If pesticides are to be sold or stocked at more than one place, take separate licenses for every such place. Display the license in a prominent part of the premises that is open to public. Do not sell pesticides in classes Ia, Ib, and II (WHO Classification of Pesticides by Hazard). Do not sell pesticides without ISI Mark Certification. Do not stock or sell any insecticide unless it is: properly packed, properly labelled (including name of active ingredient, expiry date, toxicity level, etc.) and the package includes information leaflet (including safety guidelines). Do not change or remove any inscription or mark made by the manufacturer on the container, label or wrapper of any pesticide. For sale of the insecticide Sulphur and its formulations, maintain a separate register showing names and addresses of all the persons to whom it has been sold or distributed and the quantities to be sold or distributed. Do not sell or store pesticide in the same building where any articles consumable by human beings or animals are manufactured, stored or exposed for sale. Store in a separate room which is well built, dry, well-lit and ventilated and of sufficient size. Immediately after the date of expiry segregate and stamp all such stocks as not for sale and keep in a separate place with clear sign displaying that it is date-expired pesticide. Dispose these stocks in an environment friendly manner taking advice from the Bihar Pollution Control Board. Take license to sell fertilizers from the competent authority (District Agriculture Officer). Do not sell fertilizers without ISI Mark Certification. Good practices Maintain proper records of procurement and sale of pesticides specifying the brand name and name of active ingredients. Stock and promote sale of safety gear to be used while handling pesticides (for example, hand gloves, plastic masks, etc.). Stock and sell inputs/equipment for non-chemical pest management (neem oil, pheromone traps, etc.). Stock and sell bio fertilizers and organic manures such as neem seed cake, vermicompost, etc. Provide soil testing and fertilizer recommendation services to member farmers. Coordinate with Department of Agriculture and Krishi Vigyan Kendra to provide training to farmers on integrated pest and nutrient management suitable for the region. 348

361 Dairy Compulsory actions Take required permission from Bihar Pollution Control Board to establish and operate a milk processing unit. Coordinate with Forest Department for permission 89 to member farmers for grazing of livestock in forest area. Good practices Ensure hygiene in the milk cooling / processing unit premises. Dispose waste water from the milk cooling / processing unit premises into a soak pit located at least 15 metres away from any drinking water hand pump or tubewell. Encourage fodder management practices among member farmers including fodder cultivation, rotational grazing, fodder enrichment, etc. Encourage composting by member farmers. Coordinate with Department of Agriculture/Animal Husbandry for training/technical support to member farmers on fodder management and composting. 89 Relevant in case of districts with forest area (for example, Bhabua, Jamui, West Champaran, Gaya, Rohtas and Nawadha have more than 50,000 ha under forests). Applicable in all cases except those that are in accordance with the provisions of the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act,

362 Annexure - 5 Table : Environmental Guidelines Agriculture (including Irrigation) EG No. AGRICULTURE Possible Issues Compulsory actions Good practices at individual level Good practices at SHG/VO Level Over extraction will Plug / cover boreholes that are Use efficient ways of irrigation like drip deplete ground open / abandoned. and sprinkler irrigation. water. Use pipes for conveying water to avoid Maintain minimum distance seepage and evaporation losses. (250 metres preferable) If field channels are used to convey between two adjacent water, keep them free from weeds to tubewells/ borewells. avoid water loss. Unprotected / abandoned bore holes are a safety hazard for small children. Use of hazardous pesticides harms human, livestock and environmental health. Excessive use of chemical fertilizers leads to pollution. Do not use (a) banned pesticides (b) pesticides that are extremely hazardous or highly hazardous or moderately hazardous (Check Annex for list of banned pesticides, extremely hazardous pesticides, highly hazardous pesticides, moderately hazardous pesticides). Do not dispose used pesticide containers in the open (fields, near water bodies, etc.) dispose by sealing and burial. Follow sustainable agriculture practices (see below) Use pesticides only with recommendation of the VRPs/SMSs as part of an integrated pest management approach. Use the prescribed mask, gloves and goggles to protect the body while handling pesticides. Use efficient spraying equipment to prevent leakage. Always wash with soap after spraying. Use chemical fertilizers only on the basis of recommendations given after soil testing. 350 Agree on norms for regulating digging of new borewells, crop selection, irrigation method to prevent over-extraction of groundwater. Organize training on efficient irrigation methods (drip and sprinkler irrigation including the low-cost drip system) and water conservation practices. Facilitate access to Government schemes such as subsidy on drip and sprinkler irrigation, farm ponds under MNREGS, etc. Periodic review to assess any emerging cumulative impact. VRPs to provide extension support to farmers, procure quality inputs, facilitate soil testing, etc. Establish agriculture tool hiring centre with equipment such as efficient sprayers, safety gear, weeder, etc. Support enterprises such as shops for selling botanical pesticidal extracts, pheromone traps, vermicompost, etc. Organize awareness programs on safe use of pesticides, fertilizer scheduling, benefits of organic manures, etc. Facilitate access to Government schemes such as subsidy for vermicompost units, training on integrated pest management, etc.

363 Table : Environmental Guidelines Dairy EG No. DAIRY Possible Issues Compulsory actions Good practices at individual level Good practices at SHG/VO Level Degradation of pasture Practice stall feeding wholly or partially (if possible, lands and forests. cultivate fodder). Fodder scarcity. Poor hygiene leading to spread of disease. Animal shed located close to residential area may contribute to spread of zoonotic diseases. Do not graze animals in forest land without taking requisite permit from the forest department. Chop fodder and use feed container to prevent wastage of fodder. Always store fodder in clean and dry place. Use supplementary animal feed (crop residues, nonconventional feed, etc.) after technical consultation with the Livestock Resource Person / Extension Personnel. Practice fodder treatment (with urea, molasses, mineral mixture, etc.) after technical consultation with the Livestock Resource Person / Extension Personnel. Cattle must be housed outside the living area preferably in a separate shed. The shed should be at least 15 meter away from drinking water source (hand pump) and should be kept clean. Collect dung and urine for use as manure (compost, liquid manure, etc.). Dispose diseased animal carcasses safely (by burning/deep burial at least 500 meter away from habitations/water bodies), seek technical advice on safe disposal from a qualified Veterinary Doctor. Livestock Resource Persons to provide extension support to SHG members on fodder management, composting, etc. Operate chaff cutter on pay-and-use basis for benefit of all members. Establish a system for bulk purchase, storage and supply of fodder (fodder bank) for use in periods of scarcity. Undertake pastureland development (soil conservation, seeding, protection, rotational harvesting). Facilitate access to Government schemes such as subsidy for chaffcutters, distribution of fodder seed, training on fodder management, etc. 351

364 Table : Environmental Guidelines Fisheries EG No. FISHERIES Possible Issues Compulsory actions Good practices at individual level Unsustainable fishing practices leading to stock depletion and biodiversity loss. Do not fish in the season declared as prohibited/closed by the Government. For fishing in Free Fishing Zones take the Free Fishing Card issued by the District Fisheries Officer. Do not use nets with mesh size smaller than the permissible size of 4 cm prescribed by the Government. Do not fish using destructive fishing practices (use of poison, explosives, etc.). Do not culture invasive species (e.g., African Catfish). In culture fishery maintain the prescribed stocking density, species mix (surface, column and bottom feeders) and feed/fertilizer schedule. Good practices at SHG/VO Level Coordinate with Fisheries Department (and other technical support institutions) for technical support and training on sustainable fishing including proper stocking density, feed/fertilizer scheduling, etc. 352

365 Table: Environmental Guidelines Poultry EG No. POULTRY Possible Issues Compulsory Good practices at individual level Good practices at actions SHG/VO Level Poultry shed located - Maintain a distance of at least metres between the poultry shed and the Poultry Resource close to residential area residential area. Persons to provide may contribute to extension support to spread of zoonotic Maintain the prescribed stocking density. SHG members on good diseases (e.g., bird flu). practices. Ensure proper ventiliation. High stocking density leads to poor hygiene and disease outbreak. Improper disposal of diseased carcass will lead to spread of disease. Follow the prescribed sanitation practices: clean and sterilize poultry shed and equipment between flocks, provide disinfecting foot dips at entrance of shed, maintain litter in dry condition (stirring, periodic replacement), etc. Use a separate set of footwear for the poultry shed to avoid contact between the high nitrogenous litter and skin. Use old poultry litter as fertilizer. Burn or disinfect all used and opened vaccine ampoules by to prevent accidental cross-contamination. Withdraw use of non-nutrient growth promoters and anti-microbial drugs from feed or water 5-7 days prior to sale/slaughter of birds to avoid any drug residues in the meat. Dispose dead birds by burning or by burial in pits at least 2-3 feet deep. In pit burial, sprinkle lime powder over carcass and ensure tight earth cover. Use physical measures for rodent control (rat proof sheds, rat traps, etc.) instead of rodenticides (as these chemicals also carry risk of contaminating poultry feed). 353

366 Table: Environmental Guidelines Goat Rearing EG No. GOAT REARING Possible Issues Compulsory actions Good practices at individual level Degradation of pasture Do not graze lands and forests. animals in forest land Fodder scarcity. without taking requisite Poor hygiene leading to spread of disease. Animal shed located close to residential area may contribute to spread of zoonotic diseases. permit from the forest department. Practice fodder/feed management: tethering of goats to restrict area of grazing, partial stall feeding with collected grass and tree leaves, feeding supplements, grazing on harvested agricultural land, controlled browsing of plants on wastelands, etc. Practice regular de-worming for ensuring adequate weight gain (and thus, efficient use of fodder). Maintain hygienic conditions in the goat shed to prevent spread of disease. Raised flooring and lining of the floor (bamboo matting or bricks) will keep the floor dry. Collect droppings from shed for use as manure. Practice summer penning in fields. Good practices at SHG/VO Level Livestock Resource Persons to provide extension support to SHG members on fodder management, composting, etc. Periodically monitor goat population and restrict herd size depending on availability of fodder. Undertake pastureland development (soil conservation, plantation of fodder tree species, protection, rotational harvesting). Facilitate access to Government schemes such as social forestry / plantation of saplings of fodder trees (under MNREGS), training on feed management, etc. Dispose diseased animal carcasses safely (by burning/deep burial at least 500 meter away from habitations/water bodies), seek technical advice on safe disposal from a qualified Veterinary Doctor. 354

367 Table : Environmental Guidelines Activities involving use of chemicals, machinery, intense heat (Examples: Agarbatti rolling, Dyeing, Makhana roasting, etc.) EG No. ACTIVITIES USING CHEMICALS AND/OR MACHINERY Possible Issues Compulsory actions Good practices at individual level Good practices at SHG/VO Level Health problems due to Do not use any prohibited Use safety gear such as gloves, masks, etc., as Maintain a regularly stocked first-aid kit. exposure / contact with chemicals (for example, banned appropriate. chemicals. benzidine based dyes and azo dyes). Ensure easy access to first aid kit, water, etc. Risk of injury from machinery. Risk of burn injuries from intense heat/fire. Undertake the activity in a location that prevents open/easy access by others especially children. Undertake the activity in a well-ventilated area. Ensure safe disposal of waste chemicals (do not dispose into water bodies or onto open land). 355

368 Annexure - 6 Inputs to the Terms of Reference for Technical Support Organization for Pilot on Natural Resource Management for Livelihood Sustainability Proposed intervention in SRLM The Environmental Action Plan of the State Perspective and Implementation Plan (SPIP) of the Bihar State Rural Livelihoods Mission, proposes to strengthen the capacity of community institutions specifically SHG federations to undertake natural resource management planning for facilitating investments in the environmental sustainability of livelihood activities. Towards this, the SRLM plans to implement a pilot on Natural Resource Management Plans by SHG Federations in select locations in convergence with the MNREGS. The pilot will cover at least 10 Gram Panchayats and about SHG primary federations in each Gram Panchayat. The services of a Technical Support Organization are required to provide on-the-ground technical support to the SHG federations, to the community cadre of Green VRPs and to the Block SRLM team. Scope of work and tasks to be executed by the Technical Support Organization (TSO) Development of a standardized methodology for generation of Natural Resource Management Plans (NRMPs) by SHG federations: The TSO will develop a detailed methodology got facilitating development of NRMPs by the federations. The methodology will be developed through a consultative process involving (a) the SRLM team at state, district, and block levels, and, (b) the community institutions and community cadre involved in the Bihar Rural Livelihood Project (BRLP). Field testing of the methodology in at least one district each of North and South Bihar will be undertaken prior to arriving at a pilot-ready version. The methodology will include: detailed process guidelines and formats captured in a user-friendly manual. Detailed case studies illustrating the process, outputs and outcomes will feature in the manual. Creation of a cadre of Green VRPs: A specialized cadre of Village Resource Persons (called Green VRPs) will work closely with the VOs and will be responsible for facilitating the development and implementation of the NRMP. The Green VRPs will be identified by the TSO in consultation with the SRLM team from the existing pool of VRPs who have worked on the BRLP s agriculture interventions. The TSO will be responsible for providing initial training and continued hand-holding support to the Green VRPs. Development and delivery of training modules: The TSO will develop and deliver training modules for the following individuals: Green VRPs, SHG federations, Block SRLM team. The details of the content and methodology of the training are provided in the capacity building section of the Environment Action Plan of the SPIP. The TSO will also develop and deliver an awareness and sensitization session for Gram Panchayat functionaries. On-the-field hand-holding support to Green VRPs in facilitating development and implementation of NRMPs: The TSO will provide support to the Green VRP in implementation of the following activities: Facilitating participatory NRMP development by the VO. Facilitating the participation of the VOs in the Ward Sabha, Mahila Sabha and Gram Sabha and articulation of the NRMPs. 356

369 Integrating the consolidated list of works identified by the VOs through the NRMPs into the Gram Panchayat s MNREGS shelf of works and prioritized annual work plan. Facilitating the implementation of the identified works through MNREGS. Facilitating the implementation of relevant activities in the NRMP through convergence with line department schemes. Formation of a sub-committee on environment in each VO to anchor the process of development and implementation of the NRMP. Skills, experience and qualifications The TSO will have the following skills, experience and qualifications: Skills: o The organization must have demonstrated skills on natural resource management planning, capacity building of community cadres, facilitating convergence initiatives, and liaisoning between community institutions and panchayat raj institutions. Experience: o Thematic and geographical area of work: The TSO must have experience of working (preferably in Bihar) on natural resource management with self help groups. It must also have experience of working on MNREGS. o Field experience: The field experience of the organization on natural resource management must not be less than 5 years. o Technical support experience: It is preferable that the organization has experience of providing technical support to the Government on community based natural resource management. Team composition and Qualifications: The TSO team working on this project must possess the following composition and qualifications: o Coordinator (one individual): Master s degree in rural management or allied subject with at least 10 years of experience in NRM. o Specialists (three individuals): Master s or Bachelor s degree in NRM/agriculture/forestry/water resources engineering/planning with at least 7 years of field experience in NRM. Time frame and Reporting The services of the TSO will be hired for a period of one year. The Coordinator of the TSO will coordinate with the State Environment Innovations Coordinator, the District and Block Environment Coordinators. The following reports will be submitted by the TSO on a timely basis to the CEO, BRLPS: Inception Report: By end of 1 st month Quarterly Reports: By end of 3 rd, 6 th, 9 th months Final Report of Pilot Phase: By end of 12 th month In addition, the TSO will participate in monthly review meetings with the State Environment Innovations Coordinator. 357

370 Annexure - 7 Table : List of Pesticides / Pesticides Formulations Banned In India A. Pesticides Banned for manufacture, import and use (28 Nos.) 1. Aldrin 2. Benzene Hexachloride 3. Calcium Cyanide 4. Chlordane 5. Copper Acetoarsenite 6. CIbromochloropropane 7. Endrin 8. Ethyl Mercury Chloride 9. Ethyl Parathion 10. Heptachlor 11. Menazone 12. Nitrofen 13. Paraquat Dimethyl Sulphate 14. Pentachloro Nitrobenzene 15. Pentachlorophenol 16. Phenyl Mercury Acetate 17. Sodium Methane Arsonate 18. Tetradifon 19. Toxafen 20. Aldicarb 21. Chlorobenzilate 22. Dieldrine 23. Maleic Hydrazide 24. Ethylene Dibromide 25. TCA (Trichloro acetic acid) 26. Metoxuron 27. Chlorofenvinphos 28. Lindane (Banned vide Gazette Notification No S.O. 637(E) Dated 25/03/2011)-Banned for Manufecture,Import or Formulate w.e.f. 25th March,2011 and banned for use w.e.f. 25th March,2013. B. Pesticide / Pesticide formulations banned for use but their manufacture is allowed for export (2 Nos.) 29. Nicotin Sulfate 30. Captafol 80% Powder C. Pesticide formulations banned for import, manufacture and use (4 Nos) 1. Methomyl 24% L 2. Methomyl 12.5% L 3. Phosphamidon 85% SL 4. Carbofuron 50% SP D. Pesticide Withdrawn(7 Nos) 1. Dalapon 2. Ferbam 3. Formothion 4. Nickel Chloride 358

371 5. Paradichlorobenzene (PDCB) 6. Simazine 7. Warfarin Table : List Of Pesticides Refused Registration Sl Name of Pesticides 1. Calcium Arsonate 2. EPM 3. Azinphos Methyl 4. Lead Arsonate 5. Mevinphos (Phosdrin) 6. 2,4, 5-T 7. Carbophenothion 8. Vamidothion 9. Mephosfolan 10. Azinphos Ethyl 11. Binapacryl 12. Dicrotophos 13. Thiodemeton / Disulfoton 14. Fentin Acetate 15. Fentin Hydroxide 16. Chinomethionate (Morestan) 17. Ammonium Sulphamate 18. Leptophos (Phosvel) Table : Pesticides Restricted For Use In India S. No. Name of Pesticides 1. Aluminium Phosphide 2. DDT 3. Lindane 4. Methyl Bromide 5. Methyl Parathion 6. Sodium Cyanide 7. Methoxy Ethyl Mercuric Chloride (MEMC) 8. Monocrotophos 9. Endosulfan 10. Fenitrothion 11. Diazinon 12. Fenthion 13. Dazomet 359

372 Annexure - 8 List of pesticides not permissible (WHO classes Ia, Ib and II) Table : Extremely hazardous (Class Ia) Common name Aldicarb Ethoprophos Brodifacoum Flocoumafen Bromadiolone Hexachlorobenzene Bromethalin Mercuric chloride Calcium cyanide Mevinphos Captafol Parathion Chlorethoxyfos Parathion-methyl Chlormephos Phenylmercury acetate Chlorophacinone Phorate Difenacoum Phosphamidon Difethialone Sodium fluoroacetate Diphacinone Sulfotep Disulfoton Tebupirimfos EPN Terbufos Table : Highly hazardous (Class Ib) Common name Acrolein Allyl alcohol Azinphos-ethyl Azinphos-methyl Blasticidin-S Butocarboxim Butoxycarboxim Cadusafos Calcium arsenate Carbofuran Chlorfenvinphos 3-Chloro-1,2-propanediol Coumaphos Coumatetralyl Zeta-cypermethrin Demeton-S-methyl Dichlorvos Dicrotophos Dinoterb DNOC Edifenphos Ethiofencarb Isoxathion Oxydemeton-methyl Paris green Pentachlorophenol Propetamphos Sodium arsenite Sodium cyanide Strychnine Tefluthrin Thallium sulfate Thiofanox Thiometon Triazophos Vamidothion Warfarin Zinc phosphide Famphur Fenamiphos Flucythrinate Fluoroacetamide Formetanate Furathiocarb Heptenophos Methiocarb 360

373 Lead arsenate Mecarbam Mercuric oxide Methamidophos Methidathion Methomyl Monocrotophos Nicotine Omethoate Oxamyl Table : Moderately hazardous (Class II) Common name Alanycarb Anilofos Azaconazole Azocyclotin Bendiocarb Benfuracarb Bensulide Bifenthrin Bilanafos Bioallethrin Bromoxynil Bromuconazole Bronopol Butamifos Butylamine Carbaryl Carbosulfan Cartap Chloralose Chlorfenapyr Chlordane Chlorphonium chloride Chlorpyrifos Clomazone Copper sulfate Cuprous oxide Cyanazine Cyanophos Cyfluthrin Beta-cyfluthrin Cyhalothrin Cypermethrin Alpha-cypermethrin Cyphenothrin [(1R)-isomers] 2,4-D DDT Deltamethrin Endosulfan Endothal-sodium EPTC Esfenvalerate Ethion Fenazaquin Fenitrothion Fenobucarb Fenpropidin Fenpropathrin Fenthion Fentin acetate Fentin hydroxide Fenvalerate Fipronil Fluxofenim Fuberidazole Gamma-HCH, Lindane Guazatine Haloxyfop HCH Imazalil Imidacloprid Iminoctadine Ioxynil Ioxynil octanoate Isoprocarb Lambda-cyhalothrin Mercurous chloride Metaldehyde Metam-sodium Methacrifos Methasulfocarb Methyl isothiocyanate Metolcarb Metribuzin Molinate 361

374 Common name Diazinon Difenzoquat Dimethoate Dinobuton Diquat Phenthoate Phosalone Phosmet Phoxim Piperophos Pirimicarb Prallethrin Profenofos Propiconazole Propoxur Prosulfocarb Prothiofos Pyraclofos Pyrazophos Pyrethrins Pyroquilon Quinalphos Nabam Naled Paraquat Pebulate Permethrin Quizalofop-p-tefuryl Rotenone Spiroxamine TCA [ISO] (acid) Terbumeton Tetraconazole Thiacloprid Thiobencarb Thiocyclam Thiodicarb Tralomethrin Triazamate Trichlorfon Tricyclazole Tridemorph Xylylcarb 362

375 Annexure - 9 List of dyes banned in India The Ministry of Environment and Forests, Government of India has prohibited the handling of benzidine based dyes vide the notification published in the Gazette in January, As per this notification, handling of all the 42 benzidine based dyes are prohibited from 1993 onwards. The Ministry of Environment and Forests has further prohibited the handling of 70 more azo dyes which came under the banned category as per the notification published in the Gazette on 26th March, Thus, the Ministry of Environment and Forests has prohibited the handling of = 112 dyes which are capable of releasing any of the harmful amines. Table : List Of 42 Benzidine Based Dyes Prohibited From 1993 Sl. CI Generic Name CI Constn. No. 1. Acid Orange Acid Red Acid Black Acid Black Azoic Diazo Compo Direct Yellow Direct Yellow Direct Orange Direct Orange Direct Red Direct Red Direct Red Direct Red Direct Red Direct Red Direct Red Direct Violet Direct Violet Direct Violet Direct Blue Direct Blue Direct Green Direct Green Direct Green Direct Green 8: Direct Brown Direct Brown 1: Direct Brown Direct Brown Direct Brown Direct Brown Direct Brown Direct Brown

376 34. Direct Brown Direct Brown Direct Brown Direct Brown Direct Brown Direct Brown Direct Black Direct Black Direct Black Table : List Of 70 Azo Dyes Prohibited From June S.No. CI Generic Name CI Constn. No. 1 Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Red Acid Voilet Acid Brown Acid Black Acid Black Acid Black Basic Red Basic Red Basic Brown Developer 14 = Oxidation Base Direct Yellow Direct Orange Direct Orange Direct Orange Direct Orange Direct Red Direct Red Direct Red Direct Red

377 35 Direct Red Direct Red Direct Red Direct Red Direct Red Direct Red Direct Red Direct Violet Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Blue Direct Green Direct Blue Direct Black Direct Black Disperse Yellow Disperse Yellow Disperse Yellow Disperse Orange Disperse Red

378 Chapter - 16 Governance and Accountability Plan 16.1 Introduction Good governance is recognized as an essential requisite for sustainable development of institutions of poor for improving their livelihoods and also for the project organization - State Rural Livelihoods Mission (SRLM) which is nodal agency for implementing the programs of poverty reduction and empowerment. Good governance is basically the combination of transparent and accountable systems and processes, strong skills, competence, and fundamentally willingness to do right things. For our purpose, it refers to ability and extent of accountability in the project organization as well as community institutions, transparency in their functioning, and responsiveness to the public needs. The context for preparation of the proposed Governance and Accountability Action Plan (GAAP) is to consolidate various initiatives taken so far and strengthen accountability arrangements, improve transparency in the functioning of BRLPS as well as its project assisted Community Based Organizations (CBOs) in the light of recommendations highlighting governance and accountability issues in various Ad memoirs of the World Bank and guidelines of NRLM. The existing World Bank assisted Rural Livelihoods Project under implementation in selected blocks (42) in six districts of Bihar, concluding in September 2012, is likely to be scaled up in terms of both quantity and quality to cover all districts (38) and blocks (534) by the year under National Rural Livelihoods Mission assisted by Government of India and World Bank including Kosi Area Development project. In view of state wide project operation, it is crucial to document and incorporate a chapter on Governance and Accountability Action Plan in the State Perspective and Implementation Plan of State Rural Livelihoods Mission to set uniform structures, management system and checks and balances mechanisms. In view of the provisions of Right to Information Act, Anti-corruption Act and other such relevant regulations, it is necessary to provide suitable mechanisms for timely compliance including disclosure of information on demand and suo moto Good Governance and Accountability Initiatives in Place While implementing rural livelihoods project in six districts from the year 2007 and onward, BRLPS introduced a wide variety of good governance and accountability initiatives like structures, systems, processes and mechanisms to maintain delivery of services efficient and effective. The systems, processes and mechanisms were modified and improved on the basis of experiential learning and recommendations of review visits of World Bank Team over the years to make them more sensitive and responsive. All these show organizational preparedness to take up the task of scale up. Good governance initiatives taken so far in terms of structures are listed below: Setting up of BRLPS by Government of Bihar as an independent and autonomous institution registered under the Society Registration Act of 1860 in the year 2005 to address rural poverty through enhancing the livelihoods of poor. It is led by its General Body, from which a more functional Executive Committee has been formed for taking all policy level decisions and advising the functionaries of the society on the management of the Bihar Rural Livelihoods Project. 366

379 At the state level, the State Project Management Unit (SPMU) has been established and staffed with a team of dedicated development professionals headed by Chief Executive Officer. At district level, District Project Coordination Units (DPCU) are fully functional in each of the six districts headed by District Project Manager (DPM) who is supported by thematic managers and office staff. He is primarily concerned with coordinating with their blocks for effective implementation and convergence with ongoing projects in the district. At block level, Block Project Implementation Unit (BPIU) has been established in each of 42 blocks led by Block Project Manager (BPM) who is assisted by adequate field and office staff. He is responsible for implementing most of the project components and work very closely with the community based organizations-shgs, VOs and BLFs. These community institutions are also supported by community cadre s Para professionals providing specialized services. At the community level, the project is implemented through village level institutions consisting of the following structures: i. Self Help Group (SHG) ii. Village Organization (VO) federation of SHGs iii. Block Level Federation (BLF) federation of VOs iv. Economic Activity Federation/Producer Company. Accountability, in contrast to governance, addresses the extent to which project organization and community institutions abide by their charter and are otherwise accountable to their policies and actions to various stakeholders. Transparency is one of the preconditions for institutional accountability. The following initiatives have been taken so far to make BRLPS and community institutions more transparent and accountable to their stakeholders. i. Community Operational Manuals (COMs) on IBCB, MF, FS, HRF, LF, Record keeping, and Procurement in respect of SHG and VO. ii. Training Cell at DPCU level for capacity building of community members, BPIUs staff and community cadres. iii. Annual Action Plan and Budget at block, district and state levels. iv. Monthly Meeting for review of progress of implementation at block, district and state levels. v. Thematic section for Monitoring, Evaluation and Learning. vi. Rural Livelihoods Electronic Management Information System. vii. Organizational Manuals on HRD, Financial Management, Administrative matters, and Procurement of goods and services. viii. Arrangements for induction, need based capacity building programs, training on thematic areas through specialized agencies, Management Development Programmes and exposure visits within and outside state for all staff. ix. Annual Performance Appraisal and performance incentive system. x. Grievance Redressal System at DPCU and SPMU levels. xi. Record Keeping and Accounts maintenance manually and through TALLY system. xii. Internal Audit and Control System along with Statutory Audit and its compliance. xiii. Standardized formats and listing of all financial reports and returns with submission time line from block to district and to state. xiv. Devolution of power to thematic heads, DPMs and BPMs. xv. BRLPS web portal for dissemination of information to all sections of society. xvi. Several thematic programs are implemented by Partner agencies. 367

380 xvii. Evaluation studies conducted, time to time, internally and by external independent agencies. xviii. State Support Mission as and when required. Two such missions were sent to two districts for in depth performance evaluation and result studies during Objectives of Gaap The objectives of GAAP are listed as follows; The basic objective of GAAP is to improve transparency and accountability in the functioning of community institutions and in the project implementing organization by standardising and maintaining specified level of quality in terms of governance and management structures, functional performance (more participative, responsive and effective in delivery of services and assisting rural poor especially women), financial prudence, adherence to the Rule of law established under various community operational manuals and thematic organizational manuals. Enhance transparency through full compliance with RTI Act and disclosure of information. Setting up vigilance mechanism to mitigate the risks of corruption, collusion, nepotism, fraud and irregularities at all levels. Improve accountability through capacity building initiatives, sensitization programs on governance and accountability, performance/output bench mark, creation of a culture of doing right things and designate responsibility for implementing specified mechanisms at each project unit Strategy Project Implementation Arrangements: SRLM will be implemented by following existing pattern of organizational structure at state, district and block levels combining a mix of centralized responsibility and decentralized arrangements to facilitate efficient, effective, and accountable procurement execution, contract management and monitoring of project outcomes. Existing organization pattern for Community based organizations along with community cadres will also be extended to villages/community Building Strong Project Teams with Effective Tools: Standard Human Resource Management manual will be designed for the project containing all HR processes and activities. Project management and technical/thematic teams shall be selected based on their skills, provided with induction and job - oriented training and supported by professionally qualified thematic experts. They will be entrusted with clear responsibilities and heads of project units will be delegated with adequate authority and responsibilities Building Self-reliant Community Based Institutions: Standard Community Operational Manuals on all business processes will be developed by modifying existing manuals as per the guidelines of NRLM. Community members including Community Cadres personnel will be trained in the use of these manuals at the level of community institutions. Capacity building programs will be conducted continuously at regular interval to reinforce the habit of best business practices and cultivate sense of equity Delivery of standard services: Delivery of services by the project will be standardized in terms of quality and quantity by thematic heads in consultation with units through Annual Action Plan while community institutions will decide their service standard through participatory process of their members Result-Oriented Monitoring, Evaluation and Learning Framework and Action Plan: A resultoriented Monitoring, Evaluation and Learning framework along with action plan including E- 368

381 Rural Livelihoods MIS developed for existing project shall be suitably modified as per guidelines of NRLM and extended to new districts/blocks to track progress and demonstrate the impact of project activities and implementation arrangements, including the effectiveness of the GAAP in achieving its objectives Enhanced Disclosure and Transparency: A proactive attitude and approach will be adopted relating to transparency and public dissemination of project related information, including through the implementation of a project communication strategy. One project official at each district unit will be designated to provide information Civil Society Oversight and Involvement: The project will involve a high degree of participation and oversight by civil society groups aimed at reducing the risk of corruption, collusion, nepotism, fraud and misuse of power. A key official will be designated at state and district level to take care of such cases Procurement Guidelines and Procedures: Detailed procurement guidelines and manual prepared will be modified as per the guidelines of NRLM which will be implemented to promote efficient and timely procurement and minimize procurement associated risks Financial Management Guidelines and Procedures: Financial Management Manual covering policy, detailed procedures for financial up keep and controls including payment validation procedures have been designed for all project activities to mitigate fiduciary risks. This Manual will be strengthened in the light of NRLM guidelines and implemented accordingly Complaints Handling Mechanisms: A complaints Handling Unit (CHU) will be established at state and district level for acting on all project complaints and grievances in a professional and timely manner, with the utmost integrity and without any risk of reprisal to whistleblowers either from within or those from the civil society/private sector. 369

382 16.5 Governance and Accountability Action Plan Matrix Table: 16.1 Accountability Action Plan Matrixes Main Activity Sub-Activity Responsibilities A. Prevention 1. Business Processes: Delivery of services, financial and procurement management at Community Based Organizations 2.Business Processes at Project level: Delivery of services 1. Develop Community Operational Manuals 2. Capacity Building of CBOs and committees to use COM in its functioning 3. Participatory Supervision 1. Capacity Building of staff to perform as per COM 2. Annual Action Plan and Budget with monthly and quarterly break up 3. Accomplishing planned targets Thematic SPMs & PMs at State, Managers at district and block units and CBOs Thematic SPMs & PMs at State, Managers at district and block units 3. Procurement 1. Procurement Manual Policy, Systems, Processes and all related issues 2. Capacity Building of staff 3. Develop data base & use of project website 4. Procurement Cell to supervise, guide & settle procurement issues 5. Independent audit Procurement Specialist and Procurement Officer 4. Financial Management 1. Financial Management Manual Policy, System, Process and rules 2. Capacity Building of staff 3. Project Financing Plan 4. Budgetary Allocation 5. Payment validation and Time bound Bills Payment at all levels 6. Time bound Record keeping, Accounts and Financial Statements 7. Time bound Reports and Returns at all levels 8. Internal Audit and Control System Chief Finance Officer, Finance Officer and Accountants at all levels 5. Sensitization Programmes on Governance and Accountability to staff and Community Institutions 1. Programmes for project staff 2. Programmes for Community Institutions. SPM-HRD/PM-SLPM District Training Cell 370

383 Main Activity Sub-Activity Responsibilities 6. Disclosure of Information 1. Guidelines on Policy, systems and Procedures for Disclosure 2. Arrangements for collection and dissemination of Information 3. Capacity Building on D I 4. Supervising the Supervisors 5. D I Indicators Administrative Officer 7. Preventive Vigilance B. Detection 1. Creation of vigilance Cell with an Officer responsible for vigilance function at State level 2. Framing of policy, procedures and rules to manage vigilance cases 3. Partnering with civil society, local bodies and vigilance agencies Administrative Officer 1. Monitoring, Evaluation and Reporting 2. Annual Performance Appraisal of Staff 3. Performance Assessment of Project 1.Plan for Monitoring and tracking service delivery indicators 2. E-MIS Data Collection and Reporting the status 3. Monthly Review Meeting at State, District and Block levels 1. Plan for Performance Appraisal of staff on Input and Output Indicators 2. Sensitization of Staff on Performance Appraisal Process 3. Timely completion of PA process 4. Preparing Performance Appraisal Report 1. Plan for Performance Assessment of Project 2. Process Monitoring and Evaluation internally and by external agencies 3. Impact Study Internally 4. Impact Studies by External Agencies SPM-M&E, PM-M&E, DPMs and BPMs SPM-HRD, PM-SLPM, DPMs and BPMs Thematic SPM & PM, SPM-M&E, PM-M&E, DPMs and BPMs 4. Feedback from Field 1. Establishing Feedback Mechanism to Receive Field Voices 2. Plan to obtain Score Cards on Community Institutions 3. Social Audit Thematic SPMs, PMs, SPM-M&E and PM-M&E 371

384 Main Activity Sub-Activity Responsibilities C. Response: Correction and Deterrence 1. Complaint Handling 2. Corrective Actions 3. Punitive Action (Sanctions and Remedies) 1. Establishing Complaints Handling Unit at State, District and Block level to address complaints and grievances of community 2. An official at all levels will be designated with Phone/Mobile number and address to receive communication from CBOs and community members in any form 3. Record and maintain a log of complaints received against project and CBOs (if possible web based complaints registration system) and respond to all complaints received, in an automatic standardized format, within seven days of receipt. 4. Setting up web based grievance registration system for Project Staff at State and District level with time bound resolution by a committee established for the purpose 1. Plan for timely corrective action for CBOs 2. Disclosure of Information on status of investigation, measures taken and corrections done in monthly reports for review in Monthly Meeting 2. Performance Incentive for quick and timely corrective actions 1. Adoption of Policy, Procedures, Rules for dealing cases of corruption and frauds 2. Constitution of exclusive committee for sanctions and remedies Administrative Officer, DPMs and BPMs supported by selected VO committees Administrative Officer, DPMs and BPMs supported by selected VO committees Chief Finance Officer, Administrative Officer and Procurement Specialist 372

385

386