South Asia Agriculture and Rural Growth Discussion Note Series March 2020 8 Leveraging Institutional Platforms to Promote Convergence Context The launch of NRLM to address rural with other rural development programs, as insurance, pensions, etc. with livelihood poverty marks a paradigm shift in well other ministries, is enshrined in the promotion initiatives under NRLP are poverty alleviation because unlike other framework of NRLM. expected to generate cash flows at the programs that preceded it, the NRLM household level to strengthen savings and focuses on training and capacity building, The framework envisions that by credit habits among the rural poor and help and enabling women to prepare and converging with other programs, NRLM them accumulate assets. The approach of implement their livelihoods plans through would be able to address the different building peoples’ institutions under NRLM; access to financial resources from their dimensions of poverty and deprivation. therefore creates conditions wherein own institutions and from banks. The Convergence of social protection schemes programs targeting the rural poor converge importance of promoting convergence like MGNREGS, food security, PDS, social in terms of content and capital flows. Intervention The implementation of convergence beginning with the Intensive Participatory changes introduced was the creation of initiatives gained traction only from FY Planning Exercise (IPPE). The IPPE gave dedicated funds (a new financing window) 2015-16, primarily due to a shift in the voice to the poor, including SHGs and their for economic initiatives related to Ministry of Rural Development (MoRD) federations for the first time, in preparation Rural Women strategy and the rapid scale-up of NRLM. of MGNREGA’s labour budget. In the reached by 2018-19 following years, SHGs have played a key NRLM Shift in the Ministry of Rural role in the preparation of Gram Panchayat 2018-19 Development (MoRD) strategy Development Plans (GPDPs). 2015-16 2012-13 As part of a major strategic shift, the MoRD Rapid Scale-up of NRLM made a concerted effort to foster conver- gence between line departments with other While the importance of SHGs and their ministries. The change was conceived to federations in conducting participatory 18 36 59.2 67.9 (a) efficiently utilize the substantial resourc- processes was always well understood, the million million million million es made available to Gram Panchayats rapid expansion of NRLM across all States by the Fourteenth Finance Commission in and UTs (except Delhi and Chandigarh) meant (a) agriculture, livestock, non-farm and addition to the increased budgetary alloca- that a critical mass of institutional platforms skills development, tions of major RD programs; and was developed that could be leveraged (b) adopt a broader vision to address the by other programs to promote awareness, (b) financial inclusion and multiple dimensions of poverty rather than improve implementation and monitoring. looking at programs in isolation. (c) convergence initiatives to improve Considering the emerging priorities of the access to other states and Government of In this context, a series of participatory NRLM, the NRLP was restructured for the India (GoI) welfare schemes and services. planning exercises were conducted - third time in Jan’-Feb’ 2016. Among the key Convergence between NRLM and other Departments/Ministries Convergence has been promoted in two to sanitation services available from the The second is an escalating trend of broad strategic manners. The first is the government; (c) promotion of behaviour women-owned and women-led enterprises convergence between NRLM and other change communication at the household serving the business needs of government departments or ministries, which have level; (d) access to nutrition services; and departments, ministries, projects and previously focused on (a) promotion of (e) access to other public services and entities. This typically involves an farm and non-farm livelihoods; (b) access entitlements. approach where (a) SRLMs work with other government departments to award to beneficiaries of government schemes; This remainder of this chapter will high-value public-sector contracts to firms and (c) women owned enterprises leverage summarize key policy decisions and owned by SHG members; (b) women- opportunities to capitalize on an array elaborate on initiatives and success stories owned enterprises are enlisted as of service-sector requirements within that traverse both categories. registered vendors to supply raw-material government-run facilities. Convergence between NRLM and other Departments/Ministries pigsty; (d) packing, labelling and branding TRIFED, Ministry of Tribal Affairs of organic products; (e) soil testing; (f) organic certification; and (g) exposure A memorandum of understanding was visits and training of women farmers and signed between the Tribal Cooperative community resource persons. Marketing Development Federation of India (TRIFED) and NRLM on 10th February Mahatma Gandhi National Rural 2018. It is envisaged that the collaboration Employment Guarantee Scheme will facilitate the utilization of the SHGs and/ (MGNREGS) or producer collectives for procurement, processing and/or marketing of Minor The NRLM has converged with MGNREGA Forest Produce commodities under the Department of Agriculture, Cooperation with the aim of strengthening livelihoods scheme “Minimum Support Price for Minor & Farmers’ Welfare, Ministry of by the creation of durable and productive Forest Produce (MSP for MFP)” being Agriculture & Farmers’ Welfare community infrastructure. Specifically, this implemented by TRIFED. (MoA & FW) initiative is expected to facilitate the (a) development of storage sheds for custom It is also envisioned that community The NRLM promotes Agro-Ecological hiring centres/tool banks; (b) godowns for owned “Procurement and/or Value addition Practices (AEP) with a focus on the producer groups/companies; (c) sheds for centres” will be set up by making resources Mahila Kisan (woman farmer), and the milk collection centres; (d) sheds/storage available to SHGs/producer collectives eventual aim of turning the village into units for tasar interventions; (e) construction against a business plan. In order to help an intervention unit. Interventions with of vermi/NADEP compost pits/tanks; and manage these centres and provide neces- AEPs have resulted in diversified farming (f) setting up rural haats (markets). sary guidance, it is planned that forward systems, marked with a low cost of and backward linkage will be established, cultivation, higher recycling of bio-mass Department of Animal Husbandry, as required. In addition, TRIFED has and adoption of sustainable agriculture Dairying and Fisheries (DADF), practices. The convergence between Government of India NRLM and Paramparagat Krishi Vikas Pariyojana (PKVY) being implemented by The areas of cooperation between the the MoA & FW seeks to (a) provide input NRLM and DADF includes (a) providing support viz. preparation of land, supply milch animals to poor landless farmers, of liquid bio-fertilizers, seed preparation, widows and other vulnerable sections of procurement of organic seeds, creation the society; (b) supporting the productivity of azola pits, and support in disease enhancement of small ruminants and and pest control; (b) setting up of poultry and (c) developing micro-level custom hiring centres (CHC)/tool banks; infrastructure at the village and the (c) creation of cattle shed/poultry shed/ household level. management, monitoring A&D, facilitating Ministry of Health and Family Welfare enterprise activities and collection of (MoHFW). beneficiary information and contribution. The aim of this collaboration is to (a) pro- As of date, SHG members have assembled mote behavioural change and communica- and distributed more than 1.6 million solar tion; (b) celebrate Village, Health, Sanitation lamps to school children. and Nutrition Day (VHSND); (c) monitor and manage the nutritional status of women Ministry of Drinking Water and and children; (d) promote use of common Sanitation infrastructure; and (e) promote livelihoods for women’s collectives. proposed to provide assistance in market- Community-based organizations have played ing handloom, handicraft and processed a critical role in the implementation of the packed food or organic products through Swachh Bharat Mission – Gramin (SBM-G). the TRIBES INDIA outlets. As part of the MoU signed with SBM-G, the SRLMs have (a) provided training on safe Ministry of Non-Renewable sanitation practices to community members; Energy - ‘Million Solar Urja Lamp (SoUL) (b) developed community cadre to ensure Program’ that village becomes open defecation free; (c) appointed village organization as The Indian Institute of Technology nodal agencies to generate demands for (IIT)-Bombay had launched a project with construction of toilets, develop required an aim to assemble and distribute 1 million social capital and identify issues pertaining solar lamps in 11000 villages of Madhya to the implementation of the scheme; Other key initiatives to promote Food, Pradesh, Maharashtra, Rajasthan and and (d) addressed issues associated with Nutrition and health of SHG members Odisha between 2014-2016. women’s health and menstrual hygiene by and children generating demand for sanitary napkins and This project has now been scaled up with foster community participation in promotion Swabhimaan project with assistance a focus on ‘localization of solar energy’ of safe menstrual hygiene practices. from UNICEF through the active involvement of local The Swabhimaan project (2016-2020) communities in the implementation process. Poshan Abhiyaan evaluates the delivery of a package of 18 Further, per the design of the project, essential nutrition (specific and sensitive) IIT-Bombay seeks to transfer the skills Poshan Abhiyaan is a collective effort of interventions through the NRLM SHGs and and the technological know-how so that three key ministries viz. Ministry of Rural VOs, to improve women’s nutrition before the community members can engage in Development (MoRD), Ministry of Women conception, during pregnancy and after assembly, campaigning, distribution, repair and Child Development (MoWCD) and birth, in select blocks of three states viz. and maintenance of these solar lamps. Bihar, Chhattisgarh and Odisha. The aim of the project is to engage with SHG, VO and In this context, the institute has entered a part- CLF for behavioural change, engagement nership with four State Rural Livelihood Mis- of adolescents, screening and care of sions (SRLMs) viz. Assam, Bihar, Jharkhand those at most nutritional risk and nutrition and Rajasthan. This phase of the project enterprises. seeks to distribute 7 million solar lamps, with schools as the distribution platform. The decentralized model of production The SRLMs are responsible for identifying and distribution of take-home ration in local people, logistics for training, assembly collaboration with Kudumbashree adopted and distribution (A&D), service repair by the Government of Kerala has been and maintenance centres, inventory replicated by multiple States. Under this The Chhattisgarh State Rural Livelihoods children and women and communicating The core belief of the Mission is that the Mission (CGSRLM) has taken concrete steps towards creating durable messages of behaviour change. most effective way of addressing the community and individual assets in multidimensional nature of poverty is to convergence with MGNREGA. The participation of women is seen as the adopt an inter-sectoral approach and medium for wide dissemination of Social ensure that the benefits of the government Behavioural Change Communication schemes being implemented by multiple (SBCC) messages, which is essential in ministries/departments are delivered achieving nutritional outcomes. The SHGs to eligible households in a focussed, and its federations actively participated in transparent and accountable manner. the conduct of the VHSND. Thus, Mission Antyodaya has been NRLM has signed an MoU with designed as a “convergence framework Lady Irwin College, University for measurable effective outcomes on of Delhi, wherein the latter will parameters that transform lives and establish a centre on “Women livelihoods.” A snap shot of the assets constructed Collectives Led Social Action and in the past couple of years is Sustainable Development”. The SHGs and its federations promoted furnished below: under the NRLM are expected to play a 2573 Cow sheds The centre is expected to provide technical critical role in the success of the mission. support and policy guidance to the NRLM Apart from supporting the preparation 1223 Poultry sheds for knowledge creation and capacity of Gram Panchayat Development Plans 1739 NADEP pits building. (GPDP), the SHGs in these clusters will be trained and mobilized into community 854 Vermi-compost pits Mission Antyodaya owned producer groups and producer companies. In addition, emphasis will be 835 Azola tanks Apart from the above mentioned inter- placed on promoting bank linkage, non-farm 7664 Farm ponds departmental/ministerial convergence livelihoods and community driven extension initiatives, the Ministry of Rural services. 678 Wells Development launched Mission Antyodaya - a flagship convergence initiative in The Mission has placed emphasis on October 2017 with an aim of developing developing a comprehensive baseline and model, members of the SHGs have been “Poverty Free India” by 2022. In the first deploying a strong Management Information given the responsibility of producing phase (2017-20), the Mission has set itself System (MIS). The baseline data had supplementary nutrition for children in the an ambitious target of bringing 10 million facilitated the ranking of Gram Panchayats age group of 6 months to 3 years. households, across 5000 clusters, on objective and verifiable indicators Village Health Sanitation and Nutrition (about 50000 Gram Panchayats) out of and in establishing strengths/areas for Days (VHSNDs) are expected to play an poverty. improvement for each Gram Panchayat. important role in identifying vulnerable Doing Business with Government – a new paradigm for women Micro and Small Entrepreneurs Rural women entrepreneurs are forging a micro enterprises in rural India and a more services, access to new markets and afford- new relationship with the GoI - as suppliers open public procurement regime for micro able finance. Functioning within the larger of goods and services. The last decade has and small enterprises (MSEs). government structure, several SRLMs are seen this relationship mature and move proactively liaising with local authorities beyond trainee-trainer and beneficiary- The NRLM, through its state functionaries and line departments to leverage business donor engagements to one based on supply has been instrumental in providing a facilita- opportunities worth millions of dollars for and demand. The rise of this new dynamic tive environment to about five million wom- women entrepreneurs. This is evidenced is a result of a changing landscape at both en entrepreneurs from Self Help Groups across states, particularly in Kerala, through ends – greater number of women-owned (SHGs) through business development three key approaches, as follows: In another initiative, MPSRLM secured Kerala Owned a contract to provide chikki (peanut and 248 by 2023 jaggery brittle) to Mid-Day Meal Schools in 64 blocks with severe acute malnutrition. Units Women More than 700 women were involved to Supplies supplementary nutrition meet the INR 20 crore (USD 2.8 million) for children between 6 months contract. Having established their track and 3 years. record in terms of quality and timeliness, The turnover of this intervention is about USD 15.4 million. repeat orders are coming in. In another example of convergence between government bodies, providing new market opportunity for rural women, JEE- ViKA has initiated collaboration with State Health Society to run a canteen in govern- ment hospitals. Like a social enterprise, the goal was two-fold: to ensure profits with the social purpose of providing hygienic food to hospital in-patients, visitors and staff. With the technical assistance of Café Kudumbashree – women-run enterprises Convergence between two government supply Nutrimix to 33,000 aanganwadis serving local food in government offices in departments across Kerala, with a collective annual Kerala – the first canteen was launched in turnover of over INR 100 crore (USD 14 October 2018. Twelve SHG women serve The first is a convergence approach million). more than 150 plates of food daily, earning where SRLMs work with other government an average monthly revenue of INR 3 lakh departments to award high-value public A decade later, Kerala’s Department (USD 4,225). The two departments have sector contracts to firms owned by SHG of Finance, through an unprecedented signed up to set up thirteen more canteens members. This was demonstrated in Kerala government order, amended the store across all the major district hospitals. in 2000, eleven years before NRLM was purchase rules to allow government entities launched. The Information Technology to sanction work to Kudumbashree women- Registering women-owned enterprises Department of the state directed all govern- run stitching enterprises without getting as approved vendors to supply raw- ment entities in Kerala to give preference to into the complicated tendering process. material for various Government women-run computer centers set up under In 2017-18 alone, the units were able to schemes Kudumbashree, while outsourcing data generate work orders of more than INR 2 entry, processing, and digitization works. crore (USD 281,700). The other states soon Several central and state schemes, followed suit. particularly those pertaining to the Subsequently, in 2006, Kudumbashree and the Social Welfare Department collaborated to In 2018, the State Rural Livelihoods provide a dietary supplement, called Nutrimix Mission of Madhya Pradesh (MPSRLM) tied to aanganwadis (community health centres). up with Sarva Shiksha Abhiyaan (Education Nutrimix is a part of take-home ration under for All Programme) and the Swachh Bharat the Integrated Child Development Services Abhiyan (SBM/Clean India Mission), (ICDS) scheme and is provided to children two flagship initiatives, to stitch uniforms aged between 6-36 months. through women-owned enterprises. 22,000 women from 33 districts across the state Today, 242 Kudumbashree-units – owned delivered orders worth INR 258 crore and operated by more than 2,000 women – (USD 36 million). A construction of houses and toilets, permit s a first in the country, a Solar end-beneficiaries to purchase required Module Manufacturing Plant, fully material directly from government approved owned and operated by local tribal communities, has been set up vendors. Several SRLMs swiftly recognized in Dungarpur, Rajasthan. IIT Bombay, the potential of this arrangement and Rajasthan Grameen Aajeevika Vikas motivated women entrepreneurs to diversify Parishad and the Tribal Area Development Department are supporting this company, existing or develop new enterprises to cater which is managed entirely by SHG to the huge demand for quality material. women. As of today, 86 SHG members An example of the second approach are who received training on technical and the brick manufacturing units set up to marketing aspects of Solar lamps have assembled and marketed 40,000 solar address demand under Pradhan Mantri lamps & earned a revenue of USD Awas Yojana (Housing for All) and Swachh 110,000 (at Rs, 200 per lamp). The SHG Bharat Abhiyan (Clean India Mission). members who are involved in assembly, Chhattisgarh, one of the poorest states in distribution and marketing of solar lamps are paid an honorarium of about INR 5000. Therefore, the project is not only providing clean light at affordable cost but also the country, leveraged the two schemes, generating livelihoods and employment in rural areas. and provided a new market opportunity for 1,989 SHGs (close to 20,000 SHG-women), Content with the services provided, the Procurement Bill to encourage MSE to manufacture clay bricks. In 2017-18, the Railways extended the contract to manage participation in government procurement. women collectively manufactured more than parking lots in 40 stations, including five 1,700 lakh bricks, earning a net income of major stations under Trivandrum division, To ensure enforcement of these measures, INR 18 crores (USD 2.5 million). for three years. In another initiative, the the government has developed facilitative Department of Tourism has released a platforms such as Government E-Market Capitalizing on-sector requirements government order directing District Tourism Place (GeM) and MSME Sambandh within government-run facilities Promotion Councils in all 14 districts of Portal. While GeM is an inclusive Kerala to implement ‘Clean Destination e-marketplace where suppliers (including The third approach is to leveraging oppor- Campaign’ through Kudumbashree women. MSEs) can list their products and services tunities in the service sector of government About 1,400 Kudumbashree members, for purchase by government organizations, enterprises. Kudumbashree, for instance, including transgenders, are employed the latter is a monitoring mechanism to recognized such a need and set up a Facil- through these initiatives, earning a monthly track procurement from MSEs by central ity Management Centre (FMC) by training income between INR 10,000-15,000 (USD government entities. its members to provide housekeeping and 140-210). A logical next step would be to related services. The first breakthrough for think through creatively on the transition In February 2019, the government launched FMC came in the form of a contract with from self-employment opportunities to another initiative called ‘Swayatt’ to assist Kochi Metro, where Kudumbashree mem- entrepreneurial ventures. enterprises run by women and other bers managed ticketing, customer care, vulnerable groups to make their products call center, housekeeping, and gardening Irrespective of the chosen approach, accessible to over 33,000 government at all stations. Based on its success, FMC public procurement through SHG women- buyers through GeM. bagged housekeeping contracts from Vytilla owned enterprises must be dealt with Mobility Hub (a multimode transportation caution. SRLMs must build capacities of terminal in the State’s commercial capital), women entrepreneurs to independently Cochin University of Science and Technol- and critically review contracts for ogy, Cochin Shipyard, and the Indian Oil unfavorable business terms. Corporation facility. While the above examples point to specific In 2016, the Indian Railways entrusted local successes, the larger policy approach Kudumbashree members with a contract and environment have provided measures for upkeep and maintenance of AC waiting such as set-asides, bid-price preferences, halls and parking lots on a pilot basis. and sub-contracting through the Public Key Lessons and the Way Forward The recent efforts made by MoRD are based on the fact that the mandate of poverty allevi- ation can truly be achieved only by develop- ing synergies between different government programmes In addition, the experiences of various state-supported rural livelihood pro- grams has shown that investments in social and economic mobilization of the rural poor leads to increased voice, participation and representation of the rural poor in local gov- ernments; creates demand side accountabil- ity; and pressure for improvements in local governance and last mile service delivery. In many states, this has led to convergence of various public services, entitlements and programs at the household level, resulting in better targeting of the development programs including increased access to nutrition ser- vices and reduction in malnutrition and infant and maternal mortality, increased access MSEs in the complex terrain of public The early results of the convergence to social safety nets including the Mahatma procurement. Yet, the long-term gains will initiatives launched by the NRLM have Gandhi National Rural Employment Guaran- be realized when we enable entrepreneurs yielded promising results and it is expected tee Scheme (MGNREGS), pensions, PDS to learn from their experience of public that these efforts under the overall entitlements and insurance services. procurement, to build their skills and firm framework of Mission Antyodaya will lead capabilities to compete in other markets. to a paradigm shift in the implementation of In the entrepreneurship domain, while But, for now, rural women entrepreneurs rural development schemes. stand-alone policy initiatives may potentially are mastering the art of doing business with distort markets, these efforts help in government. leveling the playing field for women-owned About the discussion note series This note is part of the South Asia Agriculture and Rural Growth Discussion Note Series, that seeks to disseminate operational learnings and implementation experiences from World Bank financed rural, agriculture and food systems programs in South Asia. Author(s): Shantanu Kumar, Alreena Renita Pinto, Arshia Gupta Series editors: Alreena Renita Pinto, Deepti Kakkar Publication design & illustrations: Satwik Gade We are grateful for the generous support from the Ministry of Rural Development, The Bill & Melinda Gates Foundation, The Department for International Development, and various State Rural Development departments. Disclaimer: The findings, interpretations, and conclusions expressed in this note are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations or to members of its Board of Executive Directors or the countries they represent.