Achievements and Challenges of DAY-NRLM in Andhra Pradesh
The Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) aims to empower rural households in India. The government set an ambitious target to mobilize 10 crore rural households into Self-Help Groups (SHGs) by the end of the financial year 2023-24. This initiative is crucial for enhancing the livelihoods of rural communities. As of March 2024, the target has been successfully achieved, marking a significant milestone for the program. However, challenges remain, particularly in the allocation and utilization of funds, which are essential for sustaining these initiatives.
Overview of DAY-NRLM Achievements
The DAY-NRLM has made significant strides in mobilizing rural households across various states and Union Territories in India. The program’s primary goal is to reduce poverty by promoting self-employment and income generation through SHGs. The initiative has successfully mobilized 10 crore households, demonstrating its effectiveness in reaching out to rural communities.
In Andhra Pradesh, all 37 rural blocks in Nellore district are covered under the DAY-NRLM. This comprehensive coverage ensures that the benefits of the program reach the most vulnerable populations. The state has received a central allocation of Rs. 756 crores over the last three financial years. However, only Rs. 377 crores have been released due to delays in proposal submissions from the state. This situation highlights the need for better coordination between state authorities and the central government to ensure timely fund disbursement.
Despite these challenges, the approved central share for the current financial year stands at Rs. 307.69 crore, with Rs. 76.92 crore already released. This funding is crucial for sustaining the momentum of the program and ensuring that rural households continue to benefit from the initiatives under DAY-NRLM.
Financial Allocation and Utilization Issues
While the DAY-NRLM has achieved its mobilization targets, financial allocation and utilization remain significant concerns. The central allocation for Andhra Pradesh has been substantial, yet the state has not fully utilized these funds. The primary reason for this underutilization is the delay in submitting proposals by the state government. This delay stems from issues related to the receipt of funds from the Treasury.
For the financial year 2023-24, the Ministry has approved an Annual Action Plan for the Mahila Kisan Sashaktikaran Pariyojana (MKSP) with a budget of Rs. 64 crores. However, the Andhra Pradesh State Rural Livelihood Mission (SRLM) has not opened the budget head for MKSP, which is essential for fund release. Additionally, the MKSP budget was not reflected in the Public Financial Management System (PFMS) report, further complicating the fund release process. As a result, no funds have been released for MKSP during this financial year.
The situation underscores the importance of timely and accurate financial reporting. Without proper documentation and adherence to financial management norms, the state risks losing out on essential funding that could benefit rural households.
Challenges in Implementing Start-Up Village Entrepreneurship Programme (SVEP)
The Start-Up Village Entrepreneurship Programme (SVEP) is another critical initiative under DAY-NRLM aimed at promoting entrepreneurship in rural areas. This demand-driven scheme releases funds based on the submission of Detailed Project Reports (DPRs) from the state. However, the Andhra Pradesh SRLM has faced delays in submitting the required DPRs and financial documents. This has resulted in a significant lag in the timely release of funds for the program.
For the financial year 2024-25, the total allocation for SVEP is Rs. 13.33 crore, with Rs. 8 crore as the central share. So far, only Rs. 2 crore has been released. The delays in fund disbursement hinder the program’s effectiveness and limit the opportunities for rural entrepreneurs.
Addressing these challenges requires a concerted effort from both state and central authorities. Streamlining the proposal submission process and ensuring timely financial reporting can significantly enhance the implementation of SVEP and other initiatives under DAY-NRLM. By overcoming these hurdles, the program can better support rural entrepreneurs and contribute to sustainable economic development in the region.
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