LEDP Circular
LEDP Circular
LEDP Circular
NABARD
08 August 2018
Principal/Director/Joint Director
NABARD, All Training Establishments
Madam/Dear sir
The Self Help Group-Bank Linkage Programme (SHG-BLP) enables SHG members to have access
to savings and credit. For graduation to the next stage of self-sustaining income generating
enterprises, securing repeated and higher doses of credit, enhancement of skill is essential. Since
2006 NABARD has been enabling graduation of SHGs to the next level through the Micro
Enterprise Development Programme (MEDP). Based on the impact evaluation studies on MEDPs,
a holistic programme for livelihoods and enterprise development, i.e. Livelihood and Enterprise
Development Programme (LEDP) for creating sustainable livelihoods amongst SHG members was
introduced on pilot basis in select states vide circular No. 258/MCID -05/2015 dated 18 December
2015 and subsequently mainstreamed vide circular no. 122/ MCID-01/ 2017-18 dated 18 May
2017.
This master circular combines the instructions issued (as per Appendix-I) from to time on MEDP
and LEDP for guidance of Regional Offices. Rating of the lmplementing agencies should be carried
out as per the rating guidelines issued by RMD.
tyNrf
Ydurs faithfully,
j`:,
(K Venkateswara Rao)
Chief General Manager
TTstatdrrfufaFTife
National Bank for Agriculture and Rural Development
qIrFTHrfufan
tiae i. di-24, `di' as, qtH -gr ±, qtFT (TF), g* -4oo o5i . tla. : +91 22 2653 oo84 . fa : +9 I 22 2652 814 I . €-atT : mcid@nabard.org
Micro Credit Innovations Department
Plot No. C-24, 'G' Block, Bandra-Kurla Complex, Bandra (E), Mumbai -4oo o51 . Tel. : +91 22 2653 oo84 . Fax : +9122 2652 8141 . E-mail : mcid@nabard.org
Operational Guidelines and Instructions on Skill and Livelihood
Development and Enhancement Programmes
Enabling SHG members to take up income generating activity for livelihood involves
intensive training and hand holding on various aspects including understanding
market, potential mapping and ultimately fine tuning skills and entrepreneurship to
managetheenterprise.Hence,skillspecifi6,1ocationspecificandfocusedskillbuilding
programme as supplemental effort on skill up- gradation and development for
sustainable livelihoods / micro enterprises by matured SHG members are required to
be supported to enable them to set up and run a successful enterprise for income
generation and livelihood. To meet these objectives, NABARD supports two such
programmes- MEDP and LEDP.
a. The training partner should interface the SHPI/ agencypromoting the SHG and
then interact with the SHG members.
b. The agency through its interactions should make comprehensive assessments
of the needs and skills existing at the participant level and then make a clear
judgment of the type and need of the activity and the skill sharpening sought
for by participants. Bankers should be involved in identification of members
and the activities.
c. Actual conduct of the skill development and enterprise training and seek
feedback and future plans from participants.
d. The training module should contain case studies in identified activities and
success stories of micro-entrepreneurs from out of SHG members.
e. Practical inputs from the marketing experts as Guest Faculties
f. Relevant inputs from the concerned Branch Manager(s)
9. Providing guidance for approaching banks for repeat finance appropriately
3. Training partner:
a. Agency involved in microfinance enterprise development or has reasonable
Knowledge & understanding of the subject and its constituents
b. It should be a legal entity with experience in conducting training with adequate
professional competence in capacity building.
c. It should have exclusive trainers in the subject area (livelihood activity/ enterprise
management) as a regular employee and should be in a position to hire suitable
technical person for the skills training.
d. A suitable training venue (own or hired). If it is possible, the sessions and coaching
can be done on site or on the field.
a. Adequate training materials/raw material/ training resources.
Identified partner agency could be paid 25% of the estimated amount to defray
expenses in connection with organizing the programme. The balance would be paid on
completion of the programme based on actual participation basis.
As per the item-wise budget appended in the annexure, the implementing agencies
have to arrange lunch/refreshments to the participants. In some cases, if
implementing agencies, due to lack of infrastructural facilities are unable to arrange
for lunch/refreshments; the participants, be paid cash in lieu of lunch/refreshment. In
such cases, subject to satisfaction of the ROs as to the lack of infrastructural facilities,
the option of paying cash to the participants in lieu of the refreshment budget may be
exercised against proper acknowledgement from the participants.
6. Monitoring:
ROs have to closely monitor the results under MEDPs to improve the settlement rate
of the participants and they have to ensure that per day costs for training under MEDP
and OFDD are similar. The trainees have to be monitored for at least up to 6 months
on completion of the programme.
8. Livelihood and Enterprise Development Programme (LEDP)
1. Objectives:
a. To enhance the capacities of SHG members through identifying the skill gaps,
appropriate skill upgradation, exposure visits, demonstrations and support for
livelihood activities in the locality.
b. To enhance the income levels of SHG members by taking up livelihood ac-tivities
with credit support of banks through SHG or through individual/JLG mode.
c. To develop a shared vision of change, enhance capacity / knowledge of SHG
members for managing their enterprise, business development and marketing.
d. To facilitate collaboration with Resource Agencies for provision of common
infrastructure / incidental services including establishing business tie-up
arrangement or assured buy-back of the finished products.
2. Eligibility:
E:F¥3.r#ctoh££:vge7tc:E:£ndeT:ds:nps[u,±t#]ce:o:t¥eT3uh]::b]]eeft*hGeoa:::s::y9%rrakt:::#£
communities in the identified project area may be considered as PIA. Further, the PIA
must have the capacity to train, handhold and forge marketing tie-ups or be in a
position to rope in suitable Resource Agency for the same. Past experiences in
livelihood promotion may be an important criteria while selecting the PIA for LEDP
in a district.
SHGs / SHG members: AIL SHGs fulfilling the criterion of `panchasutra' and credit-
1inked for at least six months are eligible. SHGS formed primarily under NABARD
assisted projects may be covered. However, SHGs formed without our support keen to
participate in LEDP may be considered for inclusion. SHG members showing promise
to take up the livelihood activity only may be selected. In Priority States, North Eastern
States and Hilly states, SHGs that have been graded and found` suitable for credit
linkage may also be considered for LEDP. As credit is a critical input, the credit linkage
of such SHGs for taking up the activity after the skill training phase under LEDP will
have to be ensured. SHGs whose cr`edit facilities are overdue/ declared as NPA would
be ineligible.
3. Programme Design:
The LEDP proposal will cover minimum of 15 to 3o SHGs in cluster of contiguous
villages where from SHG members (5 to 6 from each SHG) will be selected for taking
up livelihood activity under LEDP. The skill training will be provided in batches of 25-
3o members. The initial intensive training may be followed up with refresher training
to resolve the implementation problems/ issues being faced by SHG members. Such
refresher training may be necessary only where the initial trainingYwas up to seven day
duration. Along with the training, a demonstration unit of the livelihood activity in
Agriculture & AIlied sector can be considered, depending upon the activity, through
willing volunteers / CRPs, which may be part funded under the project. This
demonstration shall be used for hands on training/ learning to the identified SHG
members.
In respect of activities in non-farm/ handicraft sector provision of raw material, tools/
machines for training purpose, etc. may be part funded under the project.
Demonstration unit in such cases may not be necessary.
In the post training period, the trainees will be provided mentoring and other escort
and support services by the SHPI/ ANGO themselves or through identified Resource
Agencies for getting higher credit doses either through existing SHG or through
individual / JLG mode, guidance and credit counselling, sourcing of technical
knowhow and raw material, packaging guidance, design and marketing tie-up.
Continuous and sustained association with Resource Agencies which will provide the
necessary technical and skill inputs is a crucial aspect of this livelihood approach.
4. Methodology
I. Livelihood mapping: The Programme Implementation Agency (PIA) in
association with or under the guidance of Resource agency will conduct
mapping in the project area of the existing skills, required skills, raw material,
local consumption, marketing avenues and extension support to identify
suitable livelihood activities, which can be undertaken by SHG members with
suitable intervention. Need assessment shall be finalized through interaction
with SHG members/ their family members on RRA (Rapid rural appraisal)
basis. The local bank branches/ Lead Bank officer shall be taken on board.
Based on such mapping the PIA will prepare a project report and submit it to
the Regional Office of NABARD for consideration.
11. Identification: Aspiration, intent and seriousness of SHG members would be
critical for the livelihood activity to be successful. Based on a survey, the
trainees will be carefully identified, including the persons among them willing
and capable to start demonstration unit (part funded under the project) to be
groomed to function as Community Resource Person.
Ill. Community Resource Person (CRP): SHG member who possesses
leadership qualities, has the necessary motivation and capacity to act as CRP
for guiding other SHG melribers and providing/ arranging solutions to the
problems faced while adopting the livelihood activity would be identified in
consultation with the concerned DDM. The PIA shall develop the CRP to act as
local activity resource centre / mentor for guiding the SHG members on an
ongoingbasis.
IV. Tie-up with the Resource Agency: PIA may make need-based tie up
arrangements with Resource Agencies / NGOs for leveraging their expertise in
identified livelihood activity for resource mapping, providing training, other
support services. The Resource Agency may also assist in capacity building of
staffs of PIA, marketing support either by buy-back or through tie- ups etc.
V. Government agencies/ Programmes: Intensive blocks where sRLMs have
already initiated livelihood interventions may be avoided. Efforts may,
however, be made to leverage upon available support / facilities/ infrastructure
from the district administration/ line departments under different government
programmes in the area. Such convergence of efforts should lead to higher level
of support and hand holding to the LEDP participants.
VI. Training: -Training period will be for about 3 to 7 days for activities in
Agriculture & AIlied areas and up to 15 days (for activities in handicraft and low
input non-farm/ micro enterprise sector) - to be decided by ROs depending
upon the nature of activity and perceived skill-gap. Training will be imparted
through livelihood experts including technical people and marketing experts.
Training shall be accompanied with demonstration, if required, to be started by
volunteer called CRP.
VII. Refresher training: PIA has also to arrange a short duration refresher
training programme for all the trainees who have taken up the livelihood
activity iafter a suitable interval from the intensive training programme.
VIII. Exposure visit: PIA may arrange for need based exposure visits to their field
staff, CRP and selected trainees to a successful unit/ cluster/ PO or progressive
entrepreneur to a unit related to the LEDP. The venue for exposure visit may be
decided in consultation with the DDM of the district. At least 25% members
from each training group should participate in the exposure visit.
IX. Follow-up and escort services: PIA shall provide mentoring and hand
holding support to the identified SHG members and the CRP by arranging
necessary linkages and coordinating efforts through frequent visits to the
concerned villages.
X. Credit: The role of PIA would include arranging access to higher credit from
banks.
5. Role of Resource Agency (RA):
Entities like NGOs, Livelihood schools/ institutes, Corporates, KVKs, farmer field
schools, Agriculture Universities and Marketing Agencies etc. may take up the role of
such RAs. The Resource Agency shall also support capacity btiilding of PIA for
sustaining, continuing and further replicating the intervention.
The identified RA will work in tandem with the SHpls. The Resource Agency may
assist the SHPI in conducting a quick Livelihood Mapping exercise in the identified
cluster to assess the potential of enterprise creation among SHG members, activities
to be covered, requirement of skill development, creation of value chain, marketing tie
up etc. before the actual implementation. The RAs should have arrangements and
wherewithal for skill development, imparting technical knowhow, value addition of
products being produced locally etc.
Similarly, an indicative model for low input non-farm sector activities/ handicraft
activities covering 9o persons in a compact cluster covering a village and hamlets in 3
kin radius has been worked out in Appendix-IV.
As the cost would vary depending upon activity,location, number of participants, etc.
ROs may decide the costs and particulars of the project according to need and merit.
The project cost is kept flexible subject to the cost broadly not exceeding I 43oo/-per
person in respect of activities in Agriculture and Allied sector and I 56oo/-per person
in respect of NFS/ handicraft activities.
RO may consider cost of critical common facility/ infrastructure separ`;tely on a case
to case basis only where it is absolutely necessary for success of the project. Normally
these facilities/ infrastructure should be available under government schemes with
government departments, made available by block office or are taken on rent by the
trainees. I
7. Project period:
The project period will generally be one year after the last set of trainees are provided
training. The PIA has to start the process and complete the intensive training
programmes within three months from the date of sanction. In case the PIA fails to
commence training within a period of three months from the date of sanction, the
sanction may be withdrawn and advance released, if any, may be recalled. Only in
genuine cases, ROs may consider extension of the project period for a reasonable
period after thorough evaluation of the reasons warranting the same.
8. Monitoring a^nd release of assistance:
The PIA will ensure constitution of a project Monitoring committee (PMC) with DDM,
NABARD, LDM, RA, branch managers of bank branches having SHG accounts and
subject matter specialists in the district as members. The PMC should regularly review
of the progress and provide guidance to accomplish successful completion of the
LEDP. The PIA will convene the meeting of PMC at least once in a quarter and submit
the proceedings of the meetings along with progress in prescribed format to respective
DDM and RO of NABARD. Prescribed progress report formats are enclosed as
Appendix V, VA, VI & VIA.
DDM will make visit to the training location at least once during the course of training
batch. He will also satisfy himself about achievement of deliverables under the project
by visiting few sample units before recommending release.
9. Documentation:
The PIA will document the socio economic information of the trainees at their pre-
training state and post training state in order to assess the impact of the programme.
The PIA should also document success stories of trainees of the project and the
learnings from the project for making use of on replication of the project. The PIA has
to submit a comprehensive Project Completion and a brief evaluation report after
completion of the project along with the final claim of grant assistance.
1o. Release of Assistance:
The release of fund will be linked to outcomes and based on the recommendations of
the\ PMC and DDM and compliance of terms and conditions stipulated in the sanction
letter. RO may take appropriate decisions on the mode of release keeping in view the
requirement and continuity of the project. The release of assistance however will be
linked to outcomes and based on the recommendations of the Project Monitoring
Committee.
11. Source of Assistance:
The expenditure will be met from WSHG Fund in respect of WSHG districts and from
FIF in case of other districts.
12. Delegation of Powers:
CGM/ GM (OIC) RO: = 7.5o 1akh per project (On recommendation of PSC).
ROs may consider sanctioning LEDPs to SHpls/ ANGOs/ IAs under Digitization
Project, for livelihood promotion amongst SHG members, where projects are ongoing
or are recently closed. Priority may also be given to LEDPs recommended by banks
and part of Area Development Scheme.
PIAs are expected to introduce sustainable livelihoods amongst SHGs in clusters and
in due course nurture them into Producers' Organizations.
Appendix- I
Circulars/ instructions based on which Master Circular has been prepared are listed
below.
Sr No. Reference No.I Date
(In case of clarification, if required on specific issue, circulars indicated above may
please be referred to)
Appendix-II
5 Total 5oooo.oo
6 Average cost per participant basis for two weeks 1667.00
While the above break-up gives the broad items of expenditure, RO is free to have
adjustments in amounts under the heads, based on the need, within the overall budget
of { 5o,ooo/-per programme upto a period of 2-3 weeks.
10
Appendix- Ill
Indicative Cost Estimates for LEDP in Agriculture and Allied Sectors
(chount in = )
Sl Project Noof Unit cost Total Remarks
No Compohents persons Cost
1 Identification 10,000To be released on acceptance of
and selection terms & conditions (RO may
of trainees exercise its discretion on
releasing the amount only on
completion of training)
2 Skill 150 8o x 7 X 150 84,000Resource agency fee, Training
upgradation material, material for conduct
training fpr and demonstration of technical
upto 7 days skills, rent for training location,
(for 5 training documentation and evaluation,
programines of Misc / contingencies, etc.
3o members RO is free to make adjustments
each). and accommodate other items
within the overall limit of
expenses. Expenses will be
proportionately lower, if the
number of participants or
duration of training is lower.
- IiTmediately before
commencement o.f tralninq .
loo X 7 X 1,05,000Boarding charges @ Rsioo/
150
person/ day
3 Support for One demonstration 60,000Unit cost of demonstration to
devp. of / CRP per LEDP (Maximum) be decided by RO. To be
demonstration released after identificatio`n of
unit and CRPs CRP. The CRP may contribute
his own resources for the demo
unit if the cost is higher.
4 Refresher 150 180x2X150 54,000On pro rata basis - to be
training imparted to only those
members who have made
arrangements for capital/
credit and are fully ready to
take up activity.
5 Exposure visit 20,000RO may consider need based
(Maximum) exposure visit of trainees. At
least 25% members from each
training group should
participate in the exposure
visit.
Appendix- IV
Indicative cost Estimates for LEDP in Handicraft and low input RNFS
activities
(Amount in = )
Sl Project Noof Unit cost Total Cost Remarks
No Components persons
1 Identification 90 10,000 To be released on
and selection acceptance of terms &
of trainees in conditions. (RO may
the cluster. exercise its discretion
Market on releasing the
identification amount only on
etc. completion oftraining)
Total 4.98,ooo
Cost Of critical coTTmon f actttrty/ inf rastructure meg be allowed separately on a case
to case basis u)here it is absolutely necessary for success Of the protect.
14
Appendix-V
To be submitted by the PIA after completion of each batch of Training
Programme
SlNo, ParticularsI
4 Activity:
6 Nature of Training :
Intensive training / Refresher
Training:
7 Period of training :
8 Selection Procedure :
22 Members of PMIC :
1.
2.
3.
4.5.
Programme Coordinator
Appendix-VA
List of Trainees Completed Training Programme
(To be attached with Appendix-V)
(End)..............................
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
17
Appendix -VI
Quarterly Progress Report
To be submitted by the PIA every quarter after Acceptance of the
sanction of the LEDP and with the claim seeking assistance
(Position as on quarter ended March, June, September, December & end of the
Project to be submitted so as to Reach NABARD RO by 5th of the month following the
close of quarter)
SlNo, Particulars
1 Name of the PIA :
(with details of Project
Coordinator and contact no.,
email id)
2 Reference No. & Date of
Sanction of LEDP:
3 Grant assistance Sanctioned :
Grant assistance Released
during the quarter:
Cumulative release :
4 LEDP Activity details :
5 Location of LEDP
Village:
Block:
District:
8 Training programmes
conducted during the quarter
(type and No of Programmes):
Whether Appendix -I
submitted?
9 No. of trainees successfully
completed training programme :
No. of drop outs :
(give reasons of drop out)
10 No. of trainees receiving
financial su|)port by SHG:
Through internal corpus:
Throulgh bank linkage :
11 No. of trainees adopted
livelihood activity after training :
18 Members of PMIC :
1.
2.
3.
4.-
23 Improvement in price
realization ` and marketing
facilities,
i®
iE
a
a: i.E
!±i:Fig
-"-
ig!Eg
-"-
iE!Eg
-"-
E::i
3i
CAai8
E#
gEL