NRLM has been designed to be implemented in all States and Union Territories except Delhi and Chandigarh. However, it would be difficult to implement NRLM which involves a fundamental systemic reform simultaneously in all the 28 States and 7 Union Territories in India, unless a ‘proof of concept’ is established and the states are prepared to transit from SGSY to NRLM. Apart from creating an enabling environment in the states, the institutional capacities of the Central and State governments need to be developed to understand, adopt and implement the NRLM to produce significantly higher outcomes. Further, not all the states have similar community institutional environment which is central to NRLM.
In this context, Government of India has availed credit from the International Development Association (IDA) for implementing the, National Rural Livelihood Project (NRLP), under NRLM. National Rural Livelihoods Project (NRLP) has been designed as a sub-set of NRLM to create ‘proof of concept’, build capacities of the Centre and States and create an enabling environment to facilitate all States and Union Territories to transit to the NRLM. NRLP would be implemented in 13 high poverty states accounting for about 90 percent of the rural poor in the country. Intensive livelihood investments would be made by the NRLP in 107 districts and 422 blocks of 13 states (Assam, Bihar, Chhattisgarh, Jharkhand, Gujarat, Maharashtra, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh, West Bengal, Karnataka and Tamil Nadu). Distribution of project funds among the states would be basedstate based on inter-se poverty ratios.
NRLP will broadly support the following components:
The Planning Commission has allocated an amount of Rs. 29,000 crore for NRLM for the 12th plan period. In addition, Government of India signed an agreement with IDA/World Bank in July 2011. In order to provide additional resources for the high poverty states to undertake intensive investments, GoI signed an agreement with IDA/ The World Bank in July, 2011, for credit of an amount of US $ 1 billion (approximately Rs. 4500 crore) for National Rural Livelihoods Project (NRLP) to be availed over a period of five years, which has since been restructured and the credit amount reduced to $500 million. This credit amount is being used to augment resources available for implementing the mission in select blocks of 13 high poverty states which account for 92% of the rural poor in the country.