aajeevika tamil nadu state rural livelihoods...

AAJEEVIKA

Tamil Nadu State Rural Livelihoods Mission

Part A

Annual Action Plan for TNSRLM

2012 – 13

Submitted to

National Rural Livelihoods Mission Ministry of Rural Development

Govt. of India

Submitted by

Tamilnadu State Rural Livelihoods Mission Rural Development and Panchayat Raj Department

Govt. of Tamilnadu

Tamil Nadu State Rural Livelihoods Mission - Aajeevika

Annual Action Plan – 2012-13 - TNSRLM Page 1

Tamilnadu State Rural Livelihoods Mission

The attempts of Government of India on poverty mitigation have given the

birth of programs, which directly target the poor families on creation of livelihood

assets and self-employment. Swarnjayanthi Gram Swarozkar Yojana (SGSY) has

been devised in order to improve the qualities of approaches, which will result in the

qualitative outcomes. Unfortunately, the magnitude of the unfinished task is

enormous. With this background, the Government of India has restructured the

SGSY as National Rural Livelihoods Mission (NRLM) which will be implemented in a

mission mode across the country. In Tamilnadu this will be implemented as

Tamilnadu State Rural Livelihoods Mission through Tamilnadu Corporation for

Development of Women.

Tamil Nadu Corporation for Development of Women (TNCDW) was formed

during the year 1983 under the Companies Act, 1956. The accounts of TNCDW are

subject to internal audit, statutory audit and AG audit. The activities of TNCDW is

governed by Board of Directors. TNCDW has been nominated as Project

Implementation Agency (PIA) for implementing NRLM in the State. The Principal

Secretary, Rural Development and Panchayat Raj Department, Government of

Tamil Nadu is the Mission Director and Managing Director, TNCDW is the Chief

Executive Officer.

In TamilNadu the tremendous success of the “ Tamil Nadu Women‟s

Development Project”, a scheme for empowerment of women, implemented by

TNCDW with the help of IFAD, encouraged the state government to expand the

SHG movement from 5 districts of the state as a statewide project in the name and

style as Mahalir Thittam (MaThi) as a fully state funded programme. TNCDW

became the focal point for women empowerment activities due to its key role as the

prime organization spearheading the SHG movement in the State. “Mahalir Thittam”

is implemented in partnership with NGOs and community based organizations such

as PLFs which are affiliated to TNCDW who extend support in the formation of

SHGs, capacity building activities and in guiding and monitoring their activities.



With rich experience in SHG movement and building of grass roots

institutions of the poor by TNCDW under the Mahalir Thittam and World Bank

assisted “Pudhu Vaazhvu” Project, transformation from SGSY to NRLM (TNSRLM)

will not be a big challenge in Tamil Nadu. NRLM will be helpful in strengthening the

institutions of the poor already in existence and also create and nurture new

institutions formed for specific purposes like producer groups, common livelihood

groups, federations, etc., TNSRLM will identify gaps and bridge them through

convergence and partnership with government departments and other organizations.

Based on the broad guidelines of NRLM, the implementation of Tamil Nadu

State Rural Livelihoods Mission (TNSRLM) is designed by the State. Mission and

objectives of TNSRLM includes State specific challenges and the requirement of the

people of the State.

1. Mission, Guiding Principles and Core Values

1.1. Mission

The mission of TNSRLM is “to bring the poorest of poor and unreached

families into the SHG network, establishing and strengthening the self managed

institutions of the poor by enhancing their capacity and thereby promote livelihoods

with incremental income at the household level through sustainable Community

Based Organizations.”

1.2. Guiding Principles

The following are the guiding principles of TNSRLM.

Poor have inherent capabilities and strong will to come out of poverty.

Strengthening of the Institutions of the poor and universal social

mobilization will help the poor to unleash their potential to come out of

poverty.

Facilitating knowledge dissemination, capacity building, skill up-gradation,

access to credit, and creation of forward and backward linkages for the

livelihood enhancement of the poor.



Economic empowerment of women will have positive and direct effect on

the households and the society as a whole.

1.3. Core Values

The following core values shall guide the activities

Targeting the poorest of the poor / ultra poor with special emphasis on the

SC and the ST households, differently abled persons, the aged, the

vulnerable, the marginalized and the destitute.

Having ownership of the project by the poor, involving poor in planning,

implementation, monitoring and management.

Ensuring transparency and accountability of Institutions of the poor.

Ensuring self-reliant and self sustainable people‟s institutions.

2. Objectives

TNSRLM envisages creation of sustainable livelihoods of the rural poor living

below the poverty line within a period of 5 to 7 years in the 31 rural districts of Tamil

Nadu. The objective of the Mission is to “build strong and vibrant institutional

platforms of the rural poor that enable them to increase household incomes

through livelihood enhancements and improved access to financial and other

services”. The focus of the Mission will also include leveraging financial resources,

livelihood support, public services and to ensure their entitlements.

3. Key Results

The key results expected of the TNSRLM are:

Establishment of a sensitive and effective autonomous implementation

structure to facilitate strengthening of the rural institutional platform up to

grass root level.

Inclusion of all the eligible poor in the community based pro-poor village

institution.

Augmenting the corpus of the Institutions of the rural poor to leverage bank

credit at affordable rate of interest.



Pooling of funds and convergence of other services through dovetailing of

schemes for the development of the poor.

Incremental income in various livelihood activities and investment by the

poor in productive assets.

Enhancing skills of youth for gainful self employment / wage employment.

4. Programme Strategies

Based on the above framework and systems, the following key programme

strategies have been devised to achieve the objectives.

a) Social Inclusion and universal social mobilization.

b) Building Institutional platform of the poor.

c) Financial Inclusion

d) Economic Inclusion – Building sustainable livelihoods for the poor.

e) Skill and Placement

f) Last Mile Service Delivery (Through community professionals and Social

Entrepreneurs).

g) Leveraging resources through dovetailing and convergence with all

schemes of Government.

5. Project Area and Scope

Out of the 32 Districts in Tamil Nadu, TNSRLM will be implemented in all

Districts except Chennai. In addition to NRLM funds, intensive investments will be

made as part of the World Bank supported NRLP in 4 districts. Even among these 4

Districts, the intensive livelihood investments will be restricted to 16 blocks to

provide the ‘proof of concept’ for the rest of the State to adopt similar approaches

to poverty alleviation in terms of staff structures, community investment support and

other support to the poor. The NRLP intensive districts are selected from among the

uncovered districts under the World Bank supported Tamil Nadu Pudhu Vaazhvu

Project (TNPVP). In Tamil Nadu, out of the total of 385 blocks, 120 blocks have

been covered under the Pudhu Vaazhvu project. The remaining 265 blocks will be

covered under TNSRLM in three phases.



The Intensive blocks under TNSRLM are ranked by the number of BPL

families within the district and the districts are selected taking into account the

following criteria, namely,

Percentage of Agricultural Labourers to total main workers

Rural female literacy rate.

Industrial backwardness.

Infant Mortality rate

Number of BPL families

Percentage of SC and ST population.

List of districts and blocks to be covered under NRLM in phases is enclosed

in Annexure-1

5.1. Project Area for Phase – I

o During the year 2012-13, the project will be implemented in 15 districts

covering 60 blocks, which includes 16 blocks from 4 districts under NRLP and

remaining under NRLM. The total number of Village Panchayats to be covered

is 2323.

Project Areas – Phase – I (2012-13)

Project No. of

Districts

No. of

Blocks

No. of Village

Panchayats

Year of

commencement

NRLM 11 44 1865

2012-13

NRLP 4 16 458

Total 15 60 2323



In phase-I, it is proposed to take up one block in Perambalur, two blocks each

in Ariyalur and Dharmapuri districts, four blocks each in Dindigul, Erode, Nilgiris,

Ramanthapuram, Thiruvarur, Thanjavur and Tiruchirappalli districts, five blocks each



in Cuddalore, Nagapattinam and Thiruvannamalai districts, six blocks each in

Vellore and Villupuram districts for the intensive implementation of TNSRLM.

6. Activities proposed under TNSRLM in 2012-13

TNSRLM was established and made functional at the state level and housed in

the TNCDW. The major activities proposed are as follows:

Fully functional State Mission Management Unit (SMMU).

Hiring of Human Resource Agency, staff recruitment and induction training.

Hiring of various agencies for baseline survey, process monitoring, differently

abled facilitating agency, software development agency and auditors.

Establishment of technical cells for Information, Education and

Communication (IEC), Management Information System (MIS) and Skill and

Placements.

Establishment of District Mission Management Unit (DMMU) and Block

Mission Management Unit (BMMU).

Setting up of State Supply and Marketing Society (SSMS).

Assessment / studies on specific themes - Gender / Empowerment /

Differently-abled / Tribals

Evaluation / Impact assessment of TNPVP pilots on poverty & Empowerment.

6.1. Activities in Intensive blocks

The following Activities will be taken up in 60 intensive blocks in 15 phase – I

districts:

Information Education and Communication activities at various levels.

Orientation to line departments and Panchayat Raj Institutions (PRIs).

Conducting Participatory Identification of Poor (PIP) process for identifying target

poor.

Formation of Village Poverty Reduction Committees (VPRC) and Social Audit

Committees (SAC).

Preparation of Village Development Plan(VDP).

Release of Community Investment Support to VPRC.



Formation of Self Help Groups.

Restructuring Panchayat Level Federations (PLF).

Establishing Village/ Block and District level convergence forums.

MIS – Review and monitoring system at Block level.

Mapping of skills and Education status.

Business correspondents.

6.2. Activities in Non- Intensive Blocks

As per the guidelines of National Mission Management Unit (NMMU), it is

proposed to implement the NRLM activities under non-intensive mode in 205 Blocks

during 2012-13 and 105 Blocks during 2013-14. 100 Village Panchayats from blocks

proposed to take up as intensive blocks in 2013-14 will be selected as pilot resource

Village Panchayats at the rate of one per block.

In these pilot resource villages, the following activities will be taken up:-

Development of social capital (CPs / CRPs)

Social mobilization

Conducting base line studies

Conducting Participatory identification of Poor

Formation of VPRC

Mapping of skills and Education status

6.3. Activities proposed in both Intensive and Non- Intensive blocks in all

Districts

1. Skill and placement

o Assessment/survey of job market

o Job melas

o District Resource centre for Youth Skill training

o Entrepreneurship Development Trainings

o Job oriented Youth Skill training



2. Convergence and networking

o Inter department planning workshops at block level

o Block and District level convergence committee

3. Livelihoods cluster

o Creation of CLGs at Village / Cluster level @ 5 per District

o „One Village - One product‟ promotion

o Partnership with Small Industry association

o Innovation forum

o Internship for students on Promotion of SHG products

4. Financial Inclusion

o Bank Mitras

o Financial literacy to all poor house holds

o Pension and insurance schemes for poor

5. Marketing

o Standardisation and Value addition

o Branding of SHG products

o Inter District and Intra District marketing among SHGs

o MOU with private sector and SSI associations

o Marketing support through fairs and Exhibitions at State and

Regional level

o Buyer – Seller meets (State & regional level)

6. Awards

o Awards to best PLFs and SHGs

o Awards to Bankers

7. Monitoring & Evaluation

o MIS cell

o Research and Analysis wing



8. Communication & Documentation cell

o Development of Communication Materials

o Printing and distribution of Manuals & Materials

o Documentation and dissemination

7. Resource Block

It is proposed to develop Vanur Block of Villupuram District as

Resource Block for Livelihood Clusters with technical assistance from Palmyra,

Auroville. The block is one among the 60 blocks to be covered under phase I.

Palmyra is a unit of the Auromitra Trust, under the Auroville Foundation

which was founded in 1978 and re-registered in 1999. Working with the community

based organization by Palmyra has brought about a social change in Vanur and

Marakkanam block of Villupuram district for the low income farmers, especially

women. It has taken up a project titled “Empowering and Improving Livelihood

Opportunities of Rural Women through Integrated Agriculture Development” under

“Mahila Kisan Sashaktikaran Pariyojana” (MKSP) in Vanur block of Villupuram

District. Hence based on the expertise in the said sector, activity clusters will be

developed with the assistance of Palmyra, Auroville in Vanur block of Villupuram

district and enter into agreement in the following areas.

Training to the SHGs in identifying common activity preferably in

agricultural sector including viability study.

Promotion of activity clusters

Forward and backward linkages.

Continuous and timely handholding support to the members involved in

the activity.



8. Activities and Timeline

The various activities to be undertaken by the State, District, Block, Cluster

and Village level along with timeline to be completed is enclosed in Annexure – 2.

9. Support Structures

9.1. Institutional Arrangement

The Government have nominated Tamil Nadu Corporation for Development

of Women Limited as the State Rural Livelihoods Mission Implementing Agency.

This Corporation with its agenda to work for the overall development of women with

focus on their empowerment and promotion of entrepreneurship among them has

been doing everything possible to achieve these objectives. A by-product of its

efforts has been laying down a strong foundation for the healthy growth of Self Help

Groups and their federations known as Panchayat Level Federations. Promotion of

entrepreneurship among women involves capacity building and creation of

livelihoods opportunities. By this, the Corporation has been doing its bit towards

addressing poverty alleviation in the rural areas of the State. As the core objective of

the TNSRLM is rural livelihoods promotion through women groups the Corporation

becomes eminently qualified to undertake the task. The implementation of the

mission by it would help redouble its efforts at poverty reduction and reach out to

those deserving of support.

A High Level Empowered Committee (HLEC) headed by the Minister for

Rural Development has been formed to lend policy level support to the mission

implementing agency. The Empowered Committee will also strive for better

convergence with the Government Departments/undertakings. Besides, it will also

monitor the implementation of the mission.

.



The overall structure of the TNSRLM will be as indicated below:

9.2. Human Resources Management

9.2.1. Size and composition of professional staff at state, district, block, and

cluster levels (intensive and non-intensive)

In the Intensive Districts -

At the state level, State Mission Management Unit (SMMU) headed by

Chief Executive officer supported by a team consists of the following:

a. State Programme Managers – 8

b. Project Managers - 6

c. Project Executives - 12

d. Young Professionals - 8, and

e. Support staff

At district level, District Mission Management Unit headed by Project

Director and Eight Assistant Project Officers in the NRLM.

At Block level, there will be one Block Programme manager with support

staff

At Cluster level, in each cluster, there will be one cluster co-ordinator and

four cluster facilitators.

High Level Empowered Committee

State Mission Management Unit

District Mission Management Unit

Block Mission Management Unit



In case of non-intensive blocks, the existing staff at the District Project

Implementation Unit (DPIU) will implement, monitor and supervise the activities with

the support of social capital.

9.3. Harmonization between TNSRLM and TNPVP staff

9.3.1. At State level

The following TNPVP staff at State level will share their experience for

TNSRLM on the following thematic areas:-

1. Community Driven Development

2. Differently- abled and Vulnerability

3. Tribal Development

4. Livelihoods

Separate cells at State level will be formed in the following thematic areas for

TNSRLM with staff from TNCDW and TNPVP.

1. Communication

2. Capacity Building

3. MIS

4. Skills and Placement

These cells along with TNSRLM will formulate and implement the Mission

activities.

Further, the Environmental aspects of TNSRLM implementation will be taken

care by Specialist (Environment) of TNPVP.

9.3.2. At District level

The following thematic specialists of TNPVP will support TNSRLM

activities in their respective districts

1. Livelihoods 2. Capacity Building



Similarly, the following thematic specialists of TNSRLM will support the work

of TNPVP in their respective districts:-

1. Business Development & Micro Enterprise

2. Partnership and Convergence

The core strategy and guiding principles of the TNSRLM are based on the

Pudhu Vaazhvu Project being implemented in the State. The technical support of

TNPVP has been included at all stages of TNSRLM implementation. There is

vertical and horizontal integration and linkage between TNSRLM and TNPVP which

is reflected in the HR plan and implementation plan. TNPVP will be the pilot blocks

of TNSRLM and learning from TNPVP will be guiding the TNSRLM at every stage.

Detailed Organogram of existing structure of TNCDW and TNPVP and

proposed structure of TNSRLM are given in the annexure-4.

Staff will be hired by outsourcing using a human resource agency and also

through deputation from Government Departments.

9.4. Strategy for meeting capacity building requirements of staff and CBOs

The staff at State, District, Block and Cluster level will undergo the following

trainings after signing Memorandum of understanding between the SMMU and

Capacity Building agency.

o Village Immersion

o Induction training

o Field placement

o Thematic training

o Need based training

o Refresher training

o Exposure visit

The services of CRPs / CPs who are members of CPLTC will be utilised for

giving training to CBOs apart from project functionaries. The details of trainings

undertaken are captured as follows:-



COM training

SHG members and Representatives training

VPRC / PLF office bearers and book keepers‟ training on

Governance and Financial Management.

EC Members training for PLF and VPRC.

Skill training for the SHGs involved in livelihood promotion

activities.

Strategy for human resources management and capacity building

requirement of Staff are given in Support Structures chapter of SPIP and capacity

building requirements of CBOs are detailed in Training and Capacity Building

chapter of SPIP.

In order to implement the above strategy and to obtain key results, the Mission

will follow the frameworks and systems as detailed below:

10. Social Management Framework

Social Management Framework for TNSRLM has been designed to provide

necessary guidance to identify and address the potential social concerns from the

planning stage to its implementation. SMF states that through the Participatory

Identification of Poor (PIP), the left out poor are mobilized and further strengthened

by building pro-poor people institutions, continuous capacity building, financial

inclusion and livelihood enhancements to bring them out of poverty. The

methodology adopted for the preparation of the SMF includes

situation analysis of socio-economic status of proposed project blocks.

social assessment study of previous state supported livelihood projects like

IRDP, SGSY, etc.

review of social safeguard policies of Government and the World Bank.

interactions and consultations with the stake holders.

application of acts, guidelines and best practices of Mahalir Thittam, TNPVP

etc.



10.1. Social Management Framework - Flow Chart

The Flow chart of SMF comprises the following stages.

1. Project identification of people / conflict areas

2. Project prioritization

3. Project investments

4. Project implementation

It is to be applied at all stages of the Project as indicated in the following

table. It encourages participatory approach from the identification of target to

implementation of project for the poor. The framework provides an overview of

consultation and participation activities to be carried out in various stages of project.

10.1.1. Stage I

It explains about the process by which the poorest of the poor (POP), the

Scheduled Caste (SC), the Scheduled Tribe (ST), Differently abled (D), Vulnerable

(V) and any district specific conflict areas are identified and the institutions

responsible for the activity.

10.1.2. Stage II

It explains about the crucial processes of the project by which the identified

target poor are mobilized and included into SHGs and then facilitated into

Federations and the agencies responsible for the completion of the activities.

10.1.3. Stage III

It explains about the processes and the investments of the project by which

the different type of interventions are being taken to address the different issues

pertaining to health, nutrition, empowerment and livelihoods.

10.1.4. Stage IV

It explains about the various management measures to be taken for an

effective implementation of all social safeguard principles in the project.



Table 6.1. SMF – Flow Chart of Implementation Process

List of Vulnerable / Conflict Areas

Pro

jec

t

peo

ple

/

are

as

Pro

jec

t p

rio

riti

za

tio

n

Pro

jec

t In

ve

stm

en

ts

Pro

jec

t

Imp

lem

en

tati

on

BMMU PFT SC

SC SC

ST D M V Conflict areas

VP SC

POP by PIP VPRC

Compliance

monitoring (SMMU)

Grievance

redressel

Consultations/ Focus group

discussions

Social monitoring

tools

Thematic studies by

agencies

M&E indicators

/ Reviews

Coverage in

existing SHG

Formation of

new SHG

Primary

Federations

Capacity Building

(by CRPRC)

Health & nutrition interventions

(by BLF)

Value

interventions

(by CLG)

Planning & execution of

Livelihood proposals

(DMMU)

Vulnerability reduction and

improved income



10.2. Disclosure

The SMF will be disclosed on the web site of TNSRLM and TNCDW.

Disclosure of the SMF at the community level shall take place as a village entry

point activity and it will be explained to all adults in the Grama Sabha. A summary of

the SMF in the local language shall be circulated in project areas.

SMF is explained in detail in Social Management Framework chapter of

SPIP.

11. Environment Management Framework

TNSRLM has developed Environment Management Framework which will

address the environmental aspects for livelihood activities of the Mission. Any

damage to the environment cannot be compromised in the process of livelihood

generation. It is therefore important to design environmental safeguards to protect it

while meeting the following objectives:

Livelihood Business plan proposal with adverse and unmanageable

environmental impacts are not approved.

Livelihood Business plan proposal should be designed and implemented with

adequate and appropriate environmental mitigation measures

Cumulative environmental impacts of the sub-projects should be addressed

Environmental benefits of sub-projects should be enhanced and environment-

enhancing livelihood activities should be promoted and

Long-term sustainability of the benefit from sub-projects should be assured by

securing the natural resources base on which they are dependent

To achieve these objectives in a comprehensive and coordinated manner,

an Environment Management Framework (EMF) is developed for the Mission.

Once adopted EMF can adequately address the environmental aspects for a vast

range of livelihood activities supported by the Mission.



The EMF comprises the following components

Environmental appraisal procedure for categorization of sub-projects and

triggering of appropriate mitigation measures

Technical Environmental Guidelines (TEGs) to address the environmental

concerns associated with specific sub-project activities likely to be supported by

the Mission. The EMF also incorporates a cultural property plan and a pest

management plan for the sub-projects where these issues may become

prominent.

Environmental Monitoring and Evaluation Plan, and

Environmental Training and Capacity Building.

Implementation of environmental management framework

EMF is explained in detail in Environment Management Framework chapter

of SPIP.



12. Financial Management System

The financial management system for the Tamil Nadu State Rural Livelihood

Mission (TNSRLM) has been designed as per the financial system prescribed by

National Rural Livelihood Mission to ensure the adherence of non-negotiable

principles of transparency, accountability, equity inclusiveness in decision-making

by direct allocation of financial resources to the Villages.

a. At present, TNCDW is having financial management system of

maintaining accounts in double entry system and Tally software is being

used for the computerization of accounts of both State office and District

offices and accounts are consolidated by synchronizing the accounts in

State office. This financial management system is adequate and effective.

In Pudhu Vaazhvu Project also the accounts of State office and District

offices are being maintained by using Tally Software. The same system

of financial management using Tally Software will be adopted for

TNSRLM. The accounts of NRLM funding will be maintained separately

and accounts will be shown separately as an extended arm of TNCDW.

Pudhu Vaazhvu Project has an integrated tally system to capture

physical, financial & qualitative date. This will be explored for integration

with existing TNCDW tally based system.

12.1. It is also proposed to adopt the following best practices being followed in the

Pudhu Vaazhvu Project and Mahalir Thittam in the areas of financial management

12.1.1 Best practices being followed in Pudhu Vaazhvu Project

Project Funds handled by community- Funds are provided directly to

community based organizations i.e. Village Poverty Reduction Committee

(VPRC) and Panchayat level federations (PLFs) after adequate capacity

building and facilitation.

Decision towards utilization of funds done by the Community. No officials are

involved in decision making.



Double entry book keeping system is being followed. Book keeper appointed

from the local village preferably from target poor /differently abled.

Adequate training are being provided to newly appointed book keepers by

Community professionals

All payments are supported by proper resolutions and encashment of cheque

should accompany a copy of resolution to the Bank. In each cheque leaf, the

words “cheque should accompany a copy of resolution is affixed”.

Periodical change of office bearers at least once in two years.

Identification of weak book keepers and giving orientation by Community

Professional book keepers and also taking them to Village Panchayats where

better book keeping maintained.

Obtaining of monthly expenditure report along with copy of Bank

reconciliation statement.

Conducting of quarterly audit by community auditors who are drawn from

different Blocks.

Professional audit firms have been appointed to audit the accounts of all

CBOs. (i.e., VPRCs, PLFs)

Based on the audit findings of village institutions by village auditors,

orientations by village auditors are being conducted at cluster level in which

the village auditors share their findings.

Transparency in maintenance of books of account. Display of monthly

expenditure in notice boards, prominent locations of the village and also

placing of accounts expenditure report and audit reports in the Grama Sabha

periodically.

Periodical checking of accounts by said Audit Committee (SAC) and report on

the findings to Grama Sabha.

Release of funds in instalments based on milestones achievement and

utilisation certificate certified by SAC and approval by Grama Sabha.

These issues are also considered as an indicator for annual performance of

Project staff.



12.1.2. Best practices being followed in Mahalir Thittam

Funds handled by community themselves in respect of Panchayat level

federations (PLF) after adequate capacity building and facilitation.

Decision towards utilization of funds done by the Community. No officials are

involved in decision making.

Double entry book keeping system is being followed. Book keeper appointed

from local Village Panchayat preferably from target poor /differently abled.

Adequate trainings are being provided to newly appointed book keepers by

trainers

Auditing of SHG accounts and PLF accounts done by Chartered Accountant

12.2 The overall proposed financial management organogram for monitoring is given below:

The Overall Financial Management Organogram for monitoring

Chief Executive Officer

Project Manager – (Finance) - State

Asst. Project Officer (Admn. & Accounts)

Cluster Facilitator (Accounts & Monitoring)

State Programme Manager

Project Director - District



12.3 Financial Management Framework:

The unique feature of the TNSRLM is direct funding to the Village

community. The mechanism of fund flow from GOI up to Village Panchayat level is

described in the following Figure.

Fund disbursement mechanism

12.4 Financial Management Manual (FMM)

FMM has been prepared detailing the accounting and financial monitoring

reporting (FMR) requirements for the SMMU and DMMU. The FMM elaborates the

accounting and financial management processes such as funds flow, budgeting and

audit arrangements. The financial and accounting policies contained in these

manuals shall supplement the policies adopted for State Unit and District Units.

Vulnerability reduction

Government of Tamil Nadu (25%)

State Mission Management Unit

District Mission Management Unit

PLF VPRC

SHGs

Village Panchayat

(for IEC & PIP)

Government of India (75%)

BMMU

Cluster Level



12.5. Community Operational Manual (COM): Covers in detail the process of

managing the community level finances and maintaining accounts. The COM

contains details of the fund flow, accounting and reporting requirements of VPRCs,

PLFs and higher level institutions. COM already developed by TNPVP will be used

in TNSRLM by applying necessary modifications.

12.6 Positioning of FM staff

Key FM positions such as Financial Advisor, Deputy Financial Advisor and

support staff are in place at State office and Assistant Project Officer with support

staff at District offices.

12.7. Bank account to receive NRLM funds

A bank account has been opened on 3.11.2011 with Indian Overseas Bank,

Nungambakkam, Chennai-34. SB A/c no is 22701000000888 to receive NRLM

funds. IFS code of the branch is IOBA0000183.

Financial Management chapter of SPIP deals in detail about the Financial

Management aspects of TNSRLM.

13. Procurement Arrangements

Procurement function has an important role to play in the TNSRLM for its

satisfactory implementation, speedy transfer of resources by way of disbursement

and achieving economy, efficiency, transparency and fairness in the Project.

Procurement of Goods, Works and Services is vital for implementing the Mission

activities. The procurement of all goods, works and consultancy work under the

TNSRLM will be undertaken in accordance with the approved manual of

procurement of National Rural Livelihood Mission (NRLM). Procurement plans are

being prepared by each district and state office separately.



12.1. Procurement structure at SMMU:

12.1.1. Composition of Procurement Committee

12.2. Procurement structure at DMMU

12.2.1. Composition of District Procurement Committee

CEO/TNSRLM

Project Manager (Finance)

PE (Procurement/

TNSRLM PM (Financial

Management) TNSRLM

Project Manager of the

thematic area of

TNSRLM

Project Executive

(Procurement)

Project Director / TNSRLM

Assistant Project Officer (Admin &

Accounts)

Project Director/

TNSRLM

Assistant Project

Officer (Admin &

Accounts)

Thematic Assistant

Project Officer

Additional Project

Director

(DPM – TNPVP)

State Programme Manager



12.3. Procurement of goods, works and services will be undertaken in

accordance with the NMMU guidelines

Types of Procurement

1. Procurement of Goods

2. Procurement of Civil works

3. Procurement of Services

4. Community based procurement.

12.3.1. Procurement of Goods

The following are the methods of procurement of goods to be followed for

implementing TNSRLM:

• Open Tender

• Limited Tender

• Single Tender

• Local Shopping (3 Quotations)

• DGS&D Rate Contracts

• Petty Purchase without quotation

12.3.1.1. Threshold for methods of procurement of material Goods

Method of Procurement Goods

Open Tender Up to Rs 2.5 Crores

Limited Tender Up to Rs. 25 Lakhs

Single Tender No upper limit; but based on conditions.

Local Shopping

(3quotations)

Up to Rs. 5 Lakhs

DGS&D Rate Contract Up to Max of Rs. 25 Lakhs

Petty Purchase ( without quotation )

Up to Rs. 5000

12.3.2. Procurement of Civil Works:

The following are the methods of procurement of civil works:

• Open Tender

• Limited Tender

• Local Shopping



12.3.2.1. Threshold for methods of procurement

Method of Procurement Works

Open Tender Up to Rs. 25 Crores

Limited Tender Up to Rs. 1 Crore

Local Shopping

(3quotations)

Up to Rs. 5 Lakhs

12.4. Procurement of Services

The procurement of services such as consultancy services, institutional

consultancies for undertaking diagnostic/ impact/ evaluation & other studies, project

design, support services for implementing various components of program, including

management and advisory support, consultancies towards providing training &

capacity building activities, auditing, developing systems & methods for monitoring

including MIS, engaging services for supervision of construction of works &

installation of equipment, similarly technical assistance services including thematic

experts for institutional development, financial inclusion etc.

12.4.1. Methods of selection:

Quality and Cost Based Selection (QCBS)

Least Cost Selection (LCS)

Fixed Budget Selection (FBS)

Selection based on consultants‟ qualifications (CQS)

Single Source Selection (SSS)

Individual Consultant (IC)

12.4.1.1. Threshold in Procurement of Services

Method of Procurement Threshold

Selection based on Quality

and Cost ( QCBS)

More than Rs. 50 Lakh with no Upper

Limit

Selection based on Least

Cost Selection (LCS) Up to Rs. 50 Lakhs



Method of Procurement Threshold

Selection based on Fixed

Budget ( FBS) Up to Rs. 50 Lakhs

Selection based on

Consultant Qualifications

(CQS)

Upto Rs. 50 Lakhs

Single Source Selection

No upper limit; but based on conditions

Individual Consultants/

Single Source Subject to acceptable justifications

Individual Consultants

Competitive Up to Rs. 25 Lakhs

12.5. Procurement Threshold for Prior Review 12.5.1. At State level Procurement unit at NMMU will undertake prior review of selection and award

process of all contracts at SMMU level as per the value thresholds mentioned below.

12.5.2. At District level Procurement unit at SMMU will undertake prior review of selection and award

process of all contracts at DMMU level as per the value thresholds mentioned below

S.No. Procurement Prior Review Threshold

1 Of all Goods contracts issued

Rs.10.00 lakhs and above

2 Of Works contracts Rs.50.00 lakhs and above

3 Of Service contracts Rs.20.00 lakhs and above

A detailed procurement procedure to be followed is given in SPIP.

S.No. Procurement Prior Review Threshold

1 Of all Goods contracts issued

Rs.40.00 lakhs and above

2 Of Works contracts Rs.1.00 crore and above

3 Of Service contracts Rs.50.00 lakhs and above



12.6. Community Procurement

The community procurement guidelines already developed by TNPVP will be

used with necessary modifications for TNSRLM.

12.7. A copy of 18 months procurement plan is enclosed in annexure 5.

13. Budget and Component wise Expenditure

The Budget Estimates for the year 2012-13 is Rs. 194.39 Crores for both

NRLP and NRLM and component wise expenditure is as follows:-

The component wise details of budget estimates are as follows:-

(Rs. in Lakhs)

S.No. Component Description Amount

1 A Institutional and Human Capacity Development

75.00

2 B State Livelihoods Support 17590.96

3 C Innovation and Partnership 1359.00

4 D Project Implementation support 414.11

Total 19439.07

14. Source of Funding

The source of funding is as follows.

(Rs. Lakhs)

S.No Description GOI GOTN Total

1 National Rural Livelihoods Mission (NRLM)

11300.21 3766.73 15066.94

2 National Rural Livelihoods Project (NRLP)

3279.10 1093.03 4372.13

Total 14579.31 4859.76 19439.07



15. Skills and Placement

Annual Action Plan for 2012-13 on Skills and Placements is enclosed. The

budget estimate for the year is amounting to Rs.47.12 crores and the component

wise break up is as follows.

Rs. in Lakhs

S.No. Component Amount

A. Youth Skill Training

1. State Resource Centre 85.40

2. District Resource Centres – one per district

564.17

3. Preparation of youth database, career guidance training and youth festival

812.12

4. Providing skill training to 30,000 youth @ Rs. 10,000 per youth

3000.00

B. Entrepreneurship Development Training

1 Training to 5,000 women @ Rs.5,000 per women

250.00

Total 4711.69

The source of funding for Skills & Placement is as follows.

(Rs. Lakhs)

Description GOI GOTN Total

National Rural Livelihoods Mission (NRLM)

3533.77 1177.92 4711.69

Skills and Placement proposal is enclosed separately as a part of Annual

Action Plan.



The following are enclosed as Annexures:

a. Details showing districts/blocks proposed to be covered during 2012-13

And phase wise no. of blocks to be covered in Annexure - 1.

b. Activities and Timelines in Annexure - 2.

c. Budget estimate of TNSRLM for 2012-13 in Annexure -3

d. Organogram containing TNCDW, TNPVP and proposed TNSRLM staff

structure. Annexure – 4

e. Procurement plan for 18 months. Annexure-5.

Managing Director

aajeevika tamil nadu state rural livelihoods...

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