NABARD vision and mission for RNFS

NABARD vision and mission for RNFS:

NABARD has acknowledged the promotion of RNFS as an important and necessary adjunct to its refinancing function. The objective of the above promotional programmes is to develop replicable models that can generate employment opportunities and income in rural areas in a sustainable, demonstrative and cost effective manner. For supporting and promoting RNFS activities NABARD is facilitating increase in GLC by providing refinance to eligible institutions; coordinating with all the shareholders for integrated development of RNFS; and creating entrepreneurship through the following promotional programmes:

Although there has been a significant increase in entrepreneurship in India in the post liberalisation period but it has been restricted to the urban areas only. Rural areas are still deprived of the entrepreneurial development. Therefore NABARD is continuously trying to create value through recognition of business opportunity, the management of risk taking, and through the communicative and management skills to mobilize human, financial, and material resources necessary to bring a project to fruition through its Entrepreneurship Development Programmes.

NABARD introduced Rural Entrepreneurship Development Programme (REDP) on an experimental basis in early 90’s, as a means to support capacity building of rural unemployed youth to enable them to establish their own units. This proved to be a successful model for employment generation in rural areas. The most important feature of the programme is that it not only considers the training phase but also considers the post training phase of the trainees. Firstly, detailed survey for identifying potential business activities/market, publicity, awareness creation and motivational campaign are made during the pre-training phase and then training is provided to the trainees and at last they are provided escort services and credit linkages for setting up units.

Till now NABARD has sanctioned a grant assistance of ` 96 crore for conducting 27711 REDPs/SDPs, benefitting 6.93 lakh unemployed youth. With the association of the Rural Development & Self Employment Training Institute (RUDSETI), banks and voluntary agencies in conducting regular training programs the REDP has now been institutionalized. The support is also extended to RUDSETIs for incurring capital and/or recurring expenditure which was ` 88 lakh during 2010-11. Considering the campus approach helpful to make training effective and to improve attitude, human relations and perceptions of the participants, the national bank is providing free, unique and intensive short term self employment training with free food and residence facility under RUDSETI. As on 31.03.2011, there were 26 RUDSETIs/RUDSETI type institutions across the country covering 253 districts in 14 states.

Besides training of the prospective entrepreneurs the national bank also provides financial assistance, under SLAMM, to those who have the requisite talents and traits for entrepreneurship, but lack necessary monetary resources of their own for setting up units or implementing projects.

Considering the problems of handicraft sector in India i.e., absence of proper training, non-usage of innovative designs and technologies etc, NABARD is providing various initiatives to the artisans. The national bank is providing training to the artisans through master craftsmen who upgrades and refines the technical skills either of practicing master craftsmen (trainers) or/ of rural entrepreneurs. However this training has to be imparted to master craftsmen through action learning in use of better tools, equipments, etc. or by master craftsmen in the use of improved tools for obtaining better results in quality and finish. Besides this NABARD is also providing them (artisans) centres where they can train themselves and at the same time can be supported through various facilities for self employment (raw material supply, common facilities, quality control, marketing under common brand name etc). These initiatives are helping the artisans to get adequate remuneration for their work.

Women Development Programmes: The Indian sociological set up has been traditionally male dominated. More than five decades of continuous efforts to mainstream Indian rural women from remoteness into development fold have yet to bring forth the desired results due to attitudinal bias, absence of gender perspective in the process of planning and implementation, inaccessibility to credit and other weakness peculiar to women. During its three decades of service, NABARD has experienced that Indian rural women need credit and credit plus services. Recognizing the fact that majority of women workers are engaged in the unorganized sector, NABARD has been implementing a number of women specific programmes to develop, empower, and advance them in RNFS.

To mainstream gender development and strengthening of institutional capabilities to address gender related issues in credit and support services, NABARD provides grant assistance to RRBs and cooperative banks to set up Women Development Cells (WDCs) which intends to organize gender sensitization meetings and awareness programs and implement on most priority basis activities that can increase the credit flow to women. During 2008-09, the scheme for setting up WDC was modified.

Besides this, NABARD also formulated a single window scheme, ARVIND that includes provision of credit as well as promotional components of assistance for conducting skill improvement (business, finance, marketing etc) and Entrepreneurial Development training programmes for women as well as for establishing production units at the level of sponsoring agencies or setting up household units with loan assistance from banks. NABARD provides 100% refinance to banks for credit extended under the scheme to women.

To promote the sale of products made by the rural women, NABARD under its scheme MAHIMA provides assistance to support initiatives in marketing of these products, such as conducting market survey, capacity building, branding, packaging, publicity, setting up of market outlets, technology upgradation, etc. MAHIMA aims at giving a fillip to agencies’ efforts for creating a niche or pro-poor market provided that their scheme has to be financially viable. NABARD provides 100% refinance to banks for credit extended under the scheme.

Although these schemes are doing exceptionally well for benefitting the rural women yet there is a need of encouragement and support for women related action research, area programmes, and supplementary and alternative models for effective credit delivery system for women. Moreover strengthening of institutional capabilities to deal with gender issues in credit and support services and skill training/upgradation programmes, REDPs and other similar training for rural poor women empowerment should be encouraged and supported.

For promoting the local marketing and local sale of the non-farm products NABARD is organizing local markets in the form of Rural Haats or rural weekly markets in all districts for development of infrastructural facilities in the existing/ new haats. Till now, a grant assistance of ` 17 crore for 383 rural haats across 23 States has been provided. NABARD provides minimum infrastructural facilities in the form of raised platforms with semi-permanent roofing, sanitation arrangements, provision of drinking water, compound wall/ barbed wire fencing, parking, notice board etc.

Recognizing the need of expanding markets and the competition NABARD is also setting up of marketing outlets at district level and sub district level for the producers in the unorganized sector who are not able to realize the optimum prices due to lack of negotiation power, small scaled production and inability to display the products at appropriate location in the showroom etc. These Rural Marts also facilitates marketing linkages for the artisan; handicraft and agro based products through setting up of a retail outlet and cover the risk involved in the initial stages of setting up the rural retail outlet.

NABARD promotes use of the artisan products by providing access to urban and country markets within NABARD and among other agencies; to provide capacity building of marketing aspects of artisans and entrepreneurs; and to organise buyer seller meets, exposure visits and exhibitions. NABARD itself supports products of few artisans under its promotional programme of Craft Mart by displaying their products along with contact addresses.

Recognizing the considerable consumer preference and high potential of handloom sector in employment and income generation and in capturing both domestic and global markets NABARD introduced SUDHA to solve the problems of obsolete technology and conventional weaving designs of the weavers. Under the scheme NABARD finances handloom projects according to the nature of activities involved/planned in it for market survey by concerned agencies; design development to improve the marketability of handloom in domestic and international markets; skill upgradation/improvement for adoption of improved looms, usage of standard inputs, better dyeing, printing, processing and weaving practices etc; hiring of consultants/appointment of experts for a shorter period; quality control; special marketing efforts (preparation of brochures, pamphlets, branding, other marketing oriented measures); exposure visits and orientation/ sensitization workshops. “Tamil Nadu Handloom Weavers’ Co-operative Society Ltd”-"Co-optex", a successful programme under SUDHA, not only supplied new weaving designs which provided uninterrupted continuous employment but also acted as a pilot scheme to develop goodwill and the brand name of Co-optex in the up country market and among the customers in the competitive market.

In this regard, NABARD also extends financial support for arranging exhibitions/ melas to enable artisans/craftsmen to exhibit and sell their products, besides getting an insight into market demands and preferences, quality upgradation of products, their pricing and other relevant aspects. It helps in directly linking the rural producers with markets. Out of these melas SARAS MELA is very famous which crossed the total sales of ` 72 lakhs in the 2011-12. Sales were enhanced by ` 2 lakhs through credit card facility provided to the artisans. Many artisans have received bulk orders ranging from `1 lakh to ` 10 lakh.

Table 4.7: Marketing Initiatives by NABARD

Years	Marketing Events/ Exhibitions	Grant Assistance (lakh)
2005-06	150	30.41
2006-07	230	51.07
2007-08	206	94.13
2008-09	213	111.06
2009-10	263	146.13
2010-11	320	259.00
2011-12	537	284.00