Assessment of design, strategy and impacts of DAY-NRLM


Deendayal Antodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) is a flagship programme of the Ministry of Rural Development (MoRD) that seeks to alleviate rural poverty through building sustainable community institutions of the poor. The centrally sponsored programme is implemented in partnership with the State governments. The Mission was launched in 2011.

During FY 17-18, 820 additional blocks were covered under the “Intensive” strategy. Cumulatively, the Mission is being implemented in 4,459 blocks spread across 586 districts of 29 States and 5 Union Territories (UTs).

Financial Inclusion

As part of its financial inclusion strategy, the Mission closely works with the Department of Financial Services (DFS), Reserve Bank of India (RBI) and the Indian Bank Associations (IBA) to provide bank credit to SHGs(Self Help Groups). As a result of the sustained efforts made on both the supply and the demand side the SHGs have been able to access substantial amount of bank credit. The loan outstanding to SHGs have increased  to 64589 crore as of Feb’18.

Financial Services in Remote Areas

The Mission has also achieved significant success in improving the last mile delivery of credit services through the agency of SHGs. About 1,518 SHG members have been deployed as Banking Correspondents Agents (BCAs) to provide last mile financial services including deposit, credit, remittance, disbursement of old age pensions and scholarships, payment of MGNREGA wages and enrollment under insurance and pension schemes.

Interest Subvention

DAY-NRLM also provides Interest Subvention to women SHGs availing bank loans amounting to Rs.3.00 lakhs, to subsidize the cost of borrowing. The interest subvention effectively reduces the cost of borrowing to 7% per annum. In respect of 250 districts, an additional interest subvention of 3% is also allowed on timely repayment of loans, reducing the effective interest rate to 4% per annum. Since the inception of the scheme, a cumulative amount of Rs. 2,324 crores has been provided as interest subvention.

Mahila Kisan Shashaktikaran Pariyojana and Value Chain Initiatives

In order to promote agro-ecological practices that increase women farmers’ income and reduce their input costs and risks, the Mission has been implementing the Mahila Kisan Shashaktikaran Pariyojana (MKSP). As of March 2018, more than 33 lakh women farmers were being supported under this scheme. Further, about 8 lakh Mahila Kisans have been mobilized into 86,000 Producer Groups (PGs) which are federated into 126 Producer Companies (PCs). These value chain development initiatives have contributed significantly to the farmers’ income from agriculture, horticulture, dairying, fisheries and Non-Timber Forest Produce (NTFP) related activities.

Community Livelihood Professionals

The community driven implementation strategy is the cornerstone of the Mission. This is borne out by the fact that more than 1.72 lakh community members have been trained and deployed to provide support to the community institutions in a variety of themes, such as bookkeeping, training and capacity building, financial services etc.

Start-up Village Entrepreneurship Programme & Aajeevika Grameen Express Yojana

As part of its non-farm livelihoods strategy, DAY-NRLM is implementing Start-Up Village Entrepreneurship Programme (SVEP) and Aajeevika Grameen Express Yojana (AGEY). SVEP aims to support entrepreneurs in rural areas to set up local enterprises. Implemented in 17 States since 2016-17, about 16,600 enterprises have been supported under SVEP resulting in gainful employment for about 40,000 persons.

Aajeevika Grameen Express Yojana (AGEY), was launched in August 2017 to provide safe, affordable and community monitored rural transport services to connect remote rural villages. As of March 2018, proposals from 17 States have been approved and 288 vehicles are operating.

Deendayal Upadhyaya Grameen Kaushalya Yojana

DAY-NRLM has another sub-scheme viz., Deendayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY). DDUGKY aims at building placement linked skills of the rual youth and place them in relatively higher wage employment sectors of the economy.

In FY 2017-18, as of Feb’18, 1.28 lakh rural youth have been trained and 69,320 have been placed.

The CIPET and Indo German Tool rooms have also been engaged as Project Implementing Agency of DDUGKY program for high end training with better placement & salary.

Rural Self Employment Training Institutes

The Mission, in partnership with 31 Banks and State Governments, is supporting Rural Self Employment Institutes (RSETIs) for skilling of rural youth to take up gainful self-employment. At present 586 RSETIs in the country are supported by the Mission.  In FY 2017-18, a total of 4.23 lakhs candidates have been trained and 3.34 lakhs candidates have been settled.