Sie sind auf Seite 1von 198

Project Implementation Plan

Targeted Rural Initiatives for Poverty


Termination and Infrastructure (TRIPTI)
July 2008

Orissa Poverty Reduction Mission

SIRD Campus, Unit VIII, Bhubaneswar 751012, Orissa


Tel.: 91 674 2560166 / 2560126
Email: oprm_tripti@hotmail.com

Content Page
1. Background 7-17
2. Problem Analysis 18-23
2.1. SHG Movement in Orissa Under Mission Shakti
2.2. Community Based Financial Organizations (CBFOs)
2.3. Low enterprise productivity and Enterprise Support Services
2.4. Unemployment among educated rural youth
3. Project Strategy 24-27
3.1. Objective
3.2. Principles
3.3. Approach
3.4. Expected Outcomes
4. Project Area and Phasing 28-31
4.1. Selection of Project Blocks
4.2. Project Phasing
4.3. Project Inputs at GP level
5. Project Components 32-97
5.1. Community Institution Building 33-55
5.1.1. Objectives
5.1.2. Sub-component Community-level Institution Building
5.1.2.1. Institution building processes
5.1.2.2. Capacity building measures for SHGs, GPLFs and other
community level functionaries
5.1.3. Sub-component project staff capacity-building
5.2. Community Investment Fund 56-63
5.2.1. Objectives
5.2.2. Financing Micro Investment Plans
5.2.2.1. What is MIP?
5.2.2.2. How MIP will be prepared?
5.2.2.3. MIP Appraisal
5.2.2.4. CIF Cycle
5.2.3. Financial Products for Rural Poor
5.2.4. Leveraging bank funds
5.3. Pro-poor Inclusion 64-85
5.3.1. Objectives

Page 2 of 198
5.3.2. Two fold approach to inclusion
5.3.3. Activities for including the Left out Poor
5.3.3.1. Identification of EPVGs
5.3.3.2. Activities to support EPVGs
5.3.3.3. Release of Pro-poor Inclusion Fund
5.3.3.4. Innovative Projects to enhance the Productive Capacities of the
EPVGs
5.3.3.5. Additional Activities to promote inclusion of the rural poor
5.3.3.6. Pro-Poor Inclusion Plan and Fund Flow Mechanism
5.3.4. Tribal Development Plan (TDP)
5.3.4.1. Key Elements of the Tribal Inclusion and Development Strategy
5.3.4.2. Description of the Tribal Development Strategy
5.3.4.3. Pro-poor Inclusion
5.3.4.4. Community Investment Funds
5.3.4.5. Livelihood Fund
5.3.4.6. Project Management
5.3.4.7. Monitoring and Learning
5.3.4.8. Additional Provision as part of the TDP
5.3.4.9. Operational Arrangements for Social Inclusion
5.3.4.10. Monitoring and Evaluation Framework
5.4. Livelihood Fund 86-97
5.4.1. Objectives
5.4.2. Financing Value Chains
5.4.2.1. Block-level mapping of livelihoods
5.4.2.2. Identification of key value chains in a district for investment
5.4.2.3. Call for proposal, appraisal, and financing of Value Chain Proposal
5.4.2.4. Implementation of value-chain sub-projects
5.4.3. Skill-development and Jobs for Rural Youth
5.4.3.1. Block-level mapping of skills
5.4.3.2. Identification of key sectors with job opportunities
5.4.3.3. Selection of trainees, skill-building, and placement
5.4.4. Innovations
5.4.4.1 Activities
6. Monitoring, Evaluation, and Learning 98-121
6.1. Result Framework and Monitoring of TRIPTI
6.2. Arrangement for results monitoring indicators by years of implementation
6.3. Description of Monitoring and Learning System
6.3.1. Progress Monitoring of project inputs and outputs
6.3.2. Performance Monitoring of Community Institutions, Livelihood Investment
and Project processes

Page 3 of 198
6.3.3. Internal Learning, Feedback and Social Accountability Measures
6.3.4. Participatory Monitoring and Learning
6.3.5. Baseline and Impact Assessment
6.3.6. Impact Evaluation
6.3.7. Institutional arrangement for M & L
6.3.8. Operational manual for ME & L
6.3.9. Reporting
6.3.10. Summary of M&L System
7. Implementation Arrangement and Project Management 122-135
7.1. Organizational Structure – State, District, Block, Communities
7.2. Human Resource Strategy
8. Financial Management 136-152
9. Procurement Procedure 153-159
10. Communication Strategy 160-169
11. Environmental Management Framework 170-188
12. Governance and Accountability 189-194

Annexures
I. Map of Project Area
II. Cost Tables
III. Procurement Plan
IV. Risk Mitigation Plan
V. Model Situation Analysis Report for GPs
a. SHG Profile
b. Village check list
c. Disability
d. SHG grading
VI. ToR for Human Resource Strategy
VII. ToR for Value Chain Analysis and Intervention
VIII. ToR for Skill development and placement of Rural Youth
IX. ToR for convergence study
X. ToR for Pro-Poor Inclusion
XI. ToR for Baseline study
XII. ToR for External Quality Monitoring
XIII. ToR for Strengthening Plan
XIV. ToR for Process Monitoring
XV. ToR for Independent Environmental Agency to conduct environmental audit
XVI. ToR for MIS Consultancy
XVII. ToR for Expression of Interest (Social Inclusion)
XVIII. ToR for Hierarchy of Authority for Environmental Approval

Page 4 of 198
XIX. ToR for Environmental Agency to provide support on environmental issues
XX. Environmental Appraisal Formats

Page 5 of 198
Abbreviation
APD Assistant Project Director
APDPIP Andhra Pradesh District Poverty Initiatives Project
APICOL Agricultural Promotion and Investment Corporation of Orissa Ltd.
APRPRP Andhra Pradesh Rural Poverty Reduction Project
ATMAs Agricultural Technology Management Agencies
BLFs Block Level Federations
BPFT Block Project Facilitation Team
BPL Below Poverty Line
CBOs Community Based Organisations
CCs Cluster Coordinators
CIF Community Investment Fund
COM Community Operation Manual
CRPs Community Resource Persons
DFID Department for Foreign International Development
DPMU District Project Monitoring Unit
DRDA District Rural Development Agency
EC Executive Committee
EPVGs Extremely Poor and Vulnerable Groups
FARD Fisheries and Animal Resources Development
FGD Focus Group Discussions
GB General Body
GoI Government of India
GoO Government of Orissa
GP Gram Panchayat
GPLFs Gram Panchayat Level Federations
HHs House Holds
HR Human Resource
IB Institutional Building
IRDP Integrated Rural Development Program
MFIs Micro Finance Institutions
MIP Micro Investment Plan
MIS Management Information System
MoRD Ministry of Rural Development
MoU Memorandum of Understanding
NGOs Non Government Organisations
NIRD National Institute of Rural Development
NREGA The National Rural Employment Guarantee Act
NSDP Net State Domestic Product
OLRDS Orissa Livestock Resource Development Society
OMFED Orissa State Cooperative Milk Producers Federation
OPOLFED Orissa State Poultry Products Co-operative Marketing Federation

Page 6 of 198
OPRM Orissa Poverty Reduction Mission
ORLP Orissa Rural Livelihood Project
ORMAS Orissa Rural Marketing and Advancement Society
OTELP Orissa Tribal Empowerment and Livelihoods Project
OUAT Orissa University of Agriculture and Technology
PD Project Director
PMC Participatory Monitoring Committee
PMRY Prime Minister Rojgar Yojana
PoP Poorest of Poor
POs Project Officers
PPIF Pro-Poor Inclusion Fund
PRA Participatory Rural Appraisal
PRIs Panchayati Raj Institutions
SGSY Swarnajayanti Gram Swarozgar Yojana
SHGs Self Help Groups
SoE Statement of Expenditure
SPMU State Project Monitoring Unit
TDP Tribal Development Plan
UC Utilisation Certificate
UVC Utilization Verification Committee
VO Village Organisation
WORLP Western Orissa Rural Livelihoods Project
WSHGs Women’s Self-Help Groups

Page 7 of 198
1. BACKGROUND

Orissa is located between 170 50’ and 22034’ of the north latitude and between 810 24’
and 870 29’ east of Greenwich having a land area of 1,55,707 sq.km. The State
comprises of 4.74 per cent of India’s landmass and 36.81million people (2001 census).
The State’s population account for 3.57 per cent of the population of the country. Nearly
85 per cent of Orissa’s population lives in rural areas. The decennial growth rate of
population was 15.94 per cent as against 20.06 per cent in the previous decade. The
significant decline in population growth rate would have been due to rise in literacy rate
and increased use of family planning measures and to certain extent due to high infant
mortality rate (IMR).

Modern Orissa came into existence with a peculiar set up where there was neither
economic integration nor socio-cultural cohesion. Over centuries, Orissa has evolved as
an unique political, social, religious, and cultural unity that has been greatly influenced
by its geographical insulation from the rest of the country. Orissa has enclosed a
semicircular coastal belt of nearly 480 kilometre long, forest-clad hills and mountain
ranges of the Eastern Ghats. The tribal people in Orissa have always been an important
segment of the total population. Though they were more numerous in ancient and
medieval Orissa, today they constitute about a quarter of the population.
1.1 Poverty Scenario
The latest estimate made by the Modified Expert Group of the Planning Commission has
calculated that in the State of Orissa below-poverty-line (BPL) population is 47.15 per
cent, which is the highest in the country. Orissa’s poverty is far higher than the national
average of 26.1 per cent. The poverty is more concentrated in rural areas.
Table 1.1

Page 8 of 198
Poverty Dynamics in the State: Orissa has the highest proportion of poor persons in its
population relative to all other states/UTs in India. However, there have been positive
developments in recent years, and poverty rates in Orissa have declined from 47% to
39.9% between 1999-00 and 2004-05.1 Despite this improvement, poverty rates in
Orissa remain almost twice as high as rates in the rest of India, where the poverty head
count ratio is 21.8%. Non-monetary indicators of poverty too confirm the low welfare
status of Oriya households. For instance, infant mortality rate is 65 per 1,000 live births
relative to 57 per 1,000 live births for India.2

There is considerable geographic variation in poverty rates, with higher rates in rural
areas relative to urban regions and in the Southern interior region relative to the coastal
regions (Table 1.2). Data from 1999/00 reveal that poverty rates are higher in rural
areas (48%) than in urban areas (43%). Given that 87 percent of Orissa’s 37 million
population is rural, a vast majority of the poor live in rural areas.3 Across the three
regions of the state, poverty rates vary from 87% in the Southern interior region to 50%
in the Northern interior region to 32% in the Coastal region. Not only are poverty rates
higher in the Southern interior region, but poverty is also most severe in this region of
Orissa.

Orissa has the third highest concentration of STs (after Madhya Pradesh and
Maharashtra) of any state in India, but the poverty rates of SCs and STs are significantly
higher than for non-backward castes. Although STs represent about 22% of the
population of Orissa, they constitute more than 40% of the total population in poverty.

Table 1.2: Headcount Index in Regions of Orissa by Social Group (1999-2000)


Rural Urban
Region ST SC Other All ST SC Other All
Coastal 66.6 42.2 24.3 31.7 63.5 75.7 34.3 41
Souther 92.4 88.9 77.7 87.1 72.3 85.0 24.6 43
n
Northern 61.7 57.2 34.7 49.8 54.4 63.1 37.8 46
Orissa 73.1 52.3 33.3 48.0 59.4 72.0 34.2 43
Source: NSS Data as calculated by A Dubey, referenced in De Haan (2005).

In addition to the high rate of poverty, many households that are not chronically poor are
vulnerable to poverty both from idiosyncratic and covariate shocks. As a result, volatility
1
See Government of India Press Information Bureau (http://planningcommission.nic.in/news/prmar07.pdf)
for the latest poverty estimates and details of its estimation. Poverty estimates based on a uniform recall
period suggest that poverty rates have fallen from 36% in 1993-94 to 27.5 in 2004
2
National Family Health Surveys (2005-06) Fact Sheet – Orissa.
3
Orissa has one of the lowest population densities among Indian states.

Page 9 of 198
of household incomes will remain a major issue even in better-off areas and even as
chronic poverty continues to decline. Oriya households are vulnerable to idiosyncratic
shocks, some of which are predictable (like old age) and some unpredictable (such as ill
health, an injury, death of a work animal). In addition, they are also vulnerable to
covariate shocks, which in Orissa include cyclones, floods and droughts, as well as
those arising from environmental degradation.

Health shocks, which affect households directly though out-of-pocket expenses and
indirectly though loss of earnings, are among the most frequent shocks affecting
household welfare. Dev et al (2007) find that sudden health problems are the most
frequent idiosyncratic shocks affecting households, while droughts are the most frequent
covariate shocks affecting households. They argue that covariate shocks are generally
more visible to policymakers and hence they receive more attention, while health shocks
are “invisible” and are assumed to be less important.

1.2 Socio-economic Profile


Orissa is one of the major states of the Indian Union, with a population of 36.71 million in
2001. It has the third lowest population density (236 persons per sq. km in 2001) among
the major states of India, ahead of only Rajasthan and Madhya Pradesh. However, there
is significant inter-district variation within the state in this regard, with the district of
Khurda having a population density of 666 persons per sq. km at one end, and
Kandhamal district with a population density of only 81 persons per sq. km at the other
end. This has meant massive spatial concentration of the population. Coastal Orissa
accounts for some 52 per cent of the population of the state with an area share of 25 per
cent.

The rate of growth of population in Orissa during the decade 1991–2001 was 15.94 per
cent as against 21.34 per cent for all-India. This is the third lowest rate of growth of
population among the major states of India with the rate of urbanisation in Orissa at
14.91 per cent. It is the lowest among the major states of India and is rising very slowly.
The sex ratio of Orissa’s population was 971 in 1991, the third highest among major
Indian states, lower than only Tamil Nadu (986) and Kerala (1058). The aggregate sex
ratio of Orissa in 1991 is, in fact, lower than the 0–14 years age group sex ratio of 978.
This implies that there is no upward bias towards aggregate sex ratio due to greater
male out-migration as compared to that of females.

About 23 per cent of the population comprises of the indigenous tribal population, mostly
concentrated in the north-western and south-western districts of the state with traditional
means of livelihood. They have a heavy dependence on forests for their livelihood. The
forces of modernisation have largely bypassed them. The processes of modernisation

Page 10 of 198
have largely marginalised them in economic terms, threatening their livelihood security.
Alienation of tribals for various reasons is emerging as a social problem.

The population belonging to Scheduled Caste constitutes a little more than 16 per cent
of the state’s population. Unlike the tribal population, they are mostly concentrated in the
four (undivided) coastal districts of Balasore, Cuttack, Ganjam, and Puri, which together
account for 53.8 per cent of the state’s SC population

1.3 Livelihood Context in Orissa


Orissa possesses a varied physiography due to its rather peculiar geographical location
and wide range of physical features. The extensive ranges of hilly forests, several lofty
peaks, rolling uplands, long stretch of coastline, extensive riverine system, brackish
waters, coastal mangroves, and coastal plains together have endowed the state with a
wide range of ecological habitats for a diverse and broad spectrum of flora and fauna.

On the basis of physical features and agro-climatic conditions, it is possible to divide the
state into four zones:
(i) Northern Plateau (constituting 18.3 per cent of the state’s area and comprising
undivided Keonjhar, Mayurbhanj, and Sundargarh districts). This region is
characterised by hill ranges rising to elevations of 2000 to 3000 feet above sea level.
(ii) Central Table Land (constituting 23.9 per cent of the state’s area and comprising
undivided Balangir, Dhenkanal, and Sambalpur districts). This region is generally flat
with slightly undulating and folded topography, rising to an elevation of 1000 feet.
(iii) Eastern Ghats (constituting 32.0 per cent of the state’s area and comprising the
undivided districts of Kalahandi, Kandhamal, and Koraput). This region is dominated
by hill ranges along with some plains and valleys lying between them, with elevation
of plateaus ranging from 900 feet to 2000 feet.
(iv) Coastal Plains (constituting 25.8 per cent of the state’s area and comprising the
undivided districts of Balasore, Cuttack, Ganjam, and Puri). This region consists of a
number of river deltas.

The state receives about 1500 mm (60 inches) of rainfall normally, with a variability of
25–30 per cent. About 77 per cent of the rainfall comes from the south-west monsoon
(June to September). However, the south-western districts of Kalahandi, Balangir, and
Koraput fall in the rain shadow zone of the south-west monsoon and hence receive
highly erratic rainfall.

The coastal region presents a virtual mono-cultural landscape and the predominant crop,
paddy, is grown in two-crop combinations with pulses, oilseeds, or jute. Paddy is also
the most important crop in highland Orissa and is widely cultivated in river valleys. A

Page 11 of 198
large number of miscellaneous crops such as coarse millets, pulses, oilseeds, jute, and
sugarcane are also grown.

The specific agro-ecological conditions of the state define the broad contours of
livelihood options for its people. These conditions, however, are not static and are liable
to change according to the patterns of human intervention and the modes of utilisation of
natural resources. As a result, the natural conditions of production and livelihood security
can come under increasing threat due to deforestation and soil erosion, floods, water
logging and soil salinity, as well as vulnerability to cyclonic storms.

As much as 73 per cent of the total main workers are engaged in agriculture, out of
which 44.3 per cent are cultivators and 28.3 per cent are agricultural labourers. Although
contribution of agriculture to Net State Domestic Product (NSDP) has declined from 67
per cent in 1951 to about 30 per cent by turn of last century there has been no change in
the workforce engaged in agriculture. The distribution of agricultural holdings is not only
skewed but also adverse in terms of average holding size.

Out of the total workers of 142.73 lakhs as reported in 2001 census, 29.7 per cent were
cultivators, 35 per cent were agricultural labourers, 4.8 per cent were engaged in
household industries and 30.5 per cent were other workers (the details of other workers
have not been worked out). There are about 7.62 lakh job seekers who have registered
their names in employment exchanges in the year 2002. The number is much less than
the actual as job opportunities in the organized sector has considerably shrinked. In the
year 2002 as many as 6.18 lakh educated (matriculation and above) job seekers existed
in the live registers of the employment exchanges. As reported in Economic Survey of
Govt. of Orissa, 2003-04, there were as many as 5030 professionals belonging to the
category of engineers, medical, agricultural and pharmacy graduates who search jobs
through employment exchanges. Together with post-graduates in these disciplines the
number stood at 5372 in the year 2002.

Key issues in sectors that present livelihood options in project districts:

Agriculture: Agriculture contributes about 30% to Orissa’s Net State Domestic Product
(NSDP). Orissa has a cultivated area—net area sown and current fallow—of 6.4 m. ha.
as against a geographical area of 15.5 m. ha. The gross cropped area is 8.4 million ha.
and the cropping intensity is 139%. The per capita availability of cultivated land was 0.17
ha. in 1999. Irrigation facilities are available for only 2.4 m.ha. of the total cultivated area.

Page 12 of 198
Kharif is the main cropping season from April to September. This coincides with the
monsoon season when most of the rainfall is received. 4 Crops are also grown during the
rabi season from October to March, utilizing irrigation facilities and residual moisture in
the soil. Paddy accounts for 90 percent of the cropped area and 80 percent of irrigated
area. 5 However, rice yields are only about one-half the all-India level. In 1998, only 11%
of the gross cropped area was under cash crops such as oilseeds, fibre crops, plantation
crops and vegetables. The government has been taking steps to promote cultivation of
sugarcane, jute, cotton, soyabean, groundnut, potato, chilly, onion, etc., but agriculture
largely remains a subsistence activity in the state. Low agricultural productivity has been
attributed to traditional farming practices, low use of yield stimulating inputs, small size of
holdings, incidence of high tenancy, low capital formation and investment in agriculture,
inadequate rural infrastructure and services and an inappropriate policy environment.

Estimated at approx. 50%, agricultural wage labour is a major source of income among
the poor in Orissa. A little over 25% are engaged in subsistence farming. The share of
cultivators in the total employed dropped from 45% in 1993-94 to 30% in 1999-00.
Poverty in the state has been linked to low agriculture wages. In the coastal region, a
day of work by a male agricultural labourer bought 3.9 kg of rice in 1999-00 which
represents a more than 20% increase from 3.2 kg in 1993-94. In the southern region,
however, the corresponding change was only 10 percent.

A few results from a survey conducted in Orissa for a forthcoming World Bank study on
agriculture marketing in India are noteworthy:
 Participation of farmers in producer groups is very low at just 4.8%. Regression
analysis, however, shows that farmer participation in an association contributes to a
price premium of about 4.9%.

 There is a great demand for improved market infrastructure, indicated by the high
frequency of requests for closer markets, improved transportation and cold storages.
 Approx. 18% of farmers surveyed have access to banks and credit institutions. 60%
of farmers surveyed, cited lack of credit as a major constraint to increased agriculture
production.

 Other constraints in agriculture production include irrigation shortages (85% of


respondents) and lack of inputs (50%).
 Only 25% of farmers undertake post-harvest functions as compared to 80% in Uttar
Pradesh despite of perceived price for various quality features.

4
The state has an annual rainfall of about 1500 m.m., 80% of which is received during the monsoon period lasting from
June to September.
5
Based on estimates from 55th Round NSS for 1999-00.

Page 13 of 198
In February 2005, a proposal for amending the Agricultural Produce Markets Act was
introduced in the state legislature. This act restricts the wholesale of farm produce to
state controlled wholesale markets and also places market development with state
governments. The reform of this act would encourage private investment in market yards
and market infrastructure apart from facilitating contract farming.

GoO has also established Agricultural Technology Management Agencies (ATMAs) in


four districts—Khurda, Koraput, Ganjam and Sambalpur—and is in the process of rolling
out the initiative to other districts. Supported by the Union Ministry of Agriculture, this
program aims to reform the public extension system’s institutional framework for
technology transfer by establishing ATMAs which would serve as district-level
institutions that would firstly integrate research and extension activities, and secondly
decentralize the day-to-day management of the public extension system. Existing
research-extension units (R-E) such as Krishi Vikas Kendras and line departments
including the Depts. Of Agriculture, Horticulture, Animal Husbandry, Fisheries, etc. would
be constituent members of ATMA. While existing R-E units would retain their institutional
identity, and affiliation, the programs and procedures pertaining to district-wide research
and extension activities would be determined by ATMA.

Fisheries: Fisheries are viewed as a significant livelihood opportunity for the rural poor
in Orissa. As per 2001-02 GoO estimates, there were over eight lakh fishermen in Orissa
producing 281,807 tonnes. Orissa still, however, needs to import around 42,200 tonnes
to meet its fish consumption needs. While Orissa has developed closed water body
aquaculture, it has not sufficiently tapped open water bodies such as reservoirs, rivers,
estuaries, lakes, lagoons, canals, swamps etc. despite their large coverage and
productive potential. The Department of Fisheries and Animal Resources Development
(FARD) estimates that the productivity and production of reservoir resources could be
increased from 9.3kg/ha and 1830 metric tonnes to an estimated 100kgs/ha and 19748
tonnes respectively if developed along scientific lines. GoO has outlined a State
Reservoir Fishery Policy in order to reform fishing rights, management, conservation,
technology use and private investment in this sector.

Overall, several schemes are presently being offered such as the Fish Farmers
Development Agency that provides a subsidy for the development of fish production
areas through excavation/renovation; SGSY that also provides differential subsidies for
below poverty line individuals/groups (SHGs) to develop fish production areas through
excavation/renovation; the Prime Minister Rojgar Yojana (PMRY) whose scheme is
similar to the aforementioned though operated by the Industry Department; the Circular
Hatchery Scheme through which a person can avail of a subsidy to produce fish seed
through fish seed hatcheries; the Normal Brackish Water Scheme operated under a

Page 14 of 198
centrally sponsored scheme through the Brackish Water Fishermen Development
Agency; and a program to assist coastal fisher folk with mechanization. A range of
welfare schemes for also available to address housing and social security.

Livestock: GoO estimates that over 80% of rural households own livestock through
which they earn supplementary income. Small holders together with the landless own
60% of milch animals, 55% of draught animals, 75% of poultry, over 80% of goat and
almost the entire sheep and pig populations. Despite high ownership among small
holders, they have not been able to maximize returns from this sector. In 1998, GoO
appointed a Steering Committee to develop a comprehensive Livestock Sector Policy
Framework. Several measures targeted at small holders were proposed such as the
redesign and reconfiguration of input delivery services with particular emphasis on
animal health and breeding services; adoption of a self-help approach to increase
knowledge and skills of small holders and para-vets; promotion of grassroots bodies
such as producers co-operatives, breeders’ associations, self help groups and voluntary
organizations to serve as the conduit between FARD and small holders for transfer of
technologies, skills training, extension support and input delivery; and promotion of
intermediate production systems to assist smallholders with integrating modern
technology and management into traditional systems.

Under the new policy, the mandate of FARD would be to firstly control, contain and
eradicate animal diseases, and secondly to develop the livestock sector. In the latter
area, FARD would adopt a participatory, integrated approach working with NGOs and
other departments/agencies such as the Orissa Livestock Resource Development
Society (OLRDS), Orissa State Cooperative Milk Producers Federation (OMFED),
Orissa State Poultry Products Co-operative Marketing Federation (OPOLFED), Orissa
University of Agriculture and Technology (OUAT), Agricultural Promotion and Investment
Corporation of Orissa Ltd. (APICOL), District Rural Development Agency (DRDA) etc.

The policy framework was converted into a 10-year plan (2002-2012) to be executed in
two phases. The plan is being implemented by a consortium of agencies including those
mentioned above. GoO has grouped the 30 districts in the state into three categories A
(most potential), B (potential) and C (least potential). This classification has been based
on several criteria specifically relevant to dairy production as well as animal population
size, household ownership of different species of livestock, and production aggregates of
livestock produce for all other species. Seven of the nine ORLP project districts—
Balasore, Bhadrak, Jagatsinghpur, Jaipur, Kendrapara, Khurda, Puri and Cuttack —fall
in category A while two—Angul and Nayagarh—fall in category B.

Page 15 of 198
1.4 Poverty Reduction Initiatives of Government of Orissa
Government of Orissa (GoO) has articulated a strategy to accelerate growth and poverty
reduction which is reflected in its Tenth Five Year Plan and draft “Vision 2020” strategy.
At the core of the vision and development strategy are efforts to (a) encourage private
sector growth to increase per capita incomes in Orissa so that the widening gap between
the state per capita income and the national average is first arrested and then reduced;
(b) enhance the quantity and quality of public investment in infrastructure (roads and
irrigation) and human capital (education and health) so that rapid growth can be
sustained and its benefits more equitably distributed than in the past; and (c) empower
the poor through the formation and strengthening of user associations and women’s self-
help groups (SHG). The Orissa development report gives emphasis on poverty and poor
living conditions of the people, measures taken so far to improve the economic situation
and pending challenges that have to be faced in coming decades to enhance growth and
ensure equity. The vision statement has been presented for an overall growth of about 6
per cent per annum during the Tenth Plan and poverty reduction to the extent of 7 per
cent.

The State’s Tenth Five-Year Plan document recognizes the importance of social and
human development as a precondition for realizing the redistributive benefits of growth.
To quote: ‘Experience of development planning over the last three decades has
established the proposition that growth is a necessary but not a sufficient condition for
the betterment of quality of life of the individual and the community. The Tenth Plan will
therefore not only focus on growth with social and distributive justice but it will also strive
to bring about necessary social transformation. The emphasis in the Tenth Plan will have
elements, which have a bearing on human capital formation.

The following poverty reduction programmes are being implemented in the state:

National Rural Employment Guarantee Act:


The National Rural Employment Guarantee Act (NREGA) was recently expanded by
Government of India to all 30 districts in the state, and is the largest anti-poverty
program under implementation. Up to April 2007, of the 2.7 million households that
registered for the job cards, 2.7 million received a job card. Of the households with a job
card, 889,000 households requested employment under the program, and 832,000 were
provided employment. Almost 73% of all days of work created under the NREGA are
filled by SCs and STs.

Gopabandhu Grameen Yojana:


A further new anti-poverty area-based program in Orissa which was introduced in 2006-
07 and is scheduled to continue till 2011-12 is the Gopabandhu Grameen Yojana. It is

Page 16 of 198
significant for linkages to ORLP that the geographic focus is on the proposed project
districts. The focus is on local infrastructure provision related to electrification, roads
and water supply in areas. The emphasis on link roads is of particular relevance in terms
of market linkages for rural communities.

Other Livelihoods Initiatives in Orissa:


The UK Department for Foreign International Development (DFID) currently finances two
projects focusing on improving livelihoods: WORLP6 and OTELP7 (jointly with World
Food Program and International Fund for Agricultural Development). Both projects use
a watershed plus approach, whereby the projects provide additional funds for improving
livelihoods to complement funds available under the national watershed development
program. OTELP focuses on 30 most backward blocks in 7 districts with tribal population
of over 60%. WORLP is implemented in 4 districts. SGSY8 is the flagship enterprise
development program funded jointly by the central government and the state
government. The program is implemented through the District Rural Development
Agencies and has a state-wide budget of Rs.800 million for 2005-6. Special SGSY is a
related program which is fully funded by the central government. This program finances
proposals that are larger (up to Rs. 150 million). ORMAS9 is currently implementing a
special SGSY project that is working with approximately 30,000 members of 2000 SHGs
to help improve marketing of rural products. STEP and Swayamsidha are two other
central government funded livelihood improvement programs under implementation in
Orissa. Both programs are fully funded by the central government. Other government
initiatives to improve livelihoods of the poor through SHGs include procurement from
SHGs of vegetables and other supplies for school lunch programs, encouraging leasing
of small water bodies (Panchayat tanks) to SHGs, facilitating engagement of SHGs as
retailers of cooking gas and consumer retail products, and engaging SHGs as licensees
to supply kerosene and run fair-price shops.

Proposed National Rural Poverty Elimination Program (redesigned SGSY)


The Ministry of Rural Development (MoRD) Government of India, based on the
experience of the Andhra Pradesh “Indira Kranthi Program”10 which focuses on social
mobilization and creation of federated organizations of the poor, has recast the overall
SGSY program drastically along similar lines. As of next fiscal year the new NRPEP
program will be implemented with the following salient features:

6
Western Orissa Rural Livelihoods Project
7
Orissa Tribal Empowerment and Livelihoods Project
8
Swarnajayanti Gram Swarozgar Yojana
9
Orissa Rural Marketing and Advancement Society
10
World Bank financed Andhra Pradesh Rural Poverty Reduction Project

Page 17 of 198
 A non lapsable entitlement in the form of a Poverty Elimination Fund created at
the national, state and district levels (75: 25 cost sharing ratio) allocations will be
made based on a State poverty elimination action plan and a MoU signed
between the state and the central government;
 Funds will be allocated for social mobilization, capacity building and revolving
fund;
 States and districts will be required to create a separate implementing agency
with dedicated staff to implement and monitor the program;
 A universal approach will be adopted for social mobilization of SHGs their
formation and establishment of federations;
 Formation of SHGs, their training and capacity building will to be met from a
government grant and a revolving fund placed with SHG federations to lend to
their membership;
 Creation of a demand based skills up-gradation program linked to job placement;
 Support for livelihood clusters and federations to achieve economies of scale in
marketing of products.

Page 18 of 198
2. Problem Analysis

The distinguishing feature of the State has been the strong will demonstrated by the
government to further the SHG movement in the State and to work in collaboration with
civil society and the voluntary sector. While NGOs pioneered this movement in the
State, the Government has since come forward to strengthen existing SHGs and
develop new ones. SHGs are now recognized as a viable means for socio-economic
development for the rural poor.

2.1. SHG Movement in Orissa under Mission Shakti


As in other states in India, SHGs are the predominant mode of microfinance in Orissa.
SHGs are promoted by several agencies under several programs. . Based on all-India
data, Orissa ranked 4th in 2004 as well as 2005 in terms of SHGs that have successfully
accessed bank loans. Some SHGs promoted by NGOs and the ICDS system have been
federated into SHG federations at multiple levels. Promotion of Women’s Self-Help
Groups (WSHGs) under Mission Shakti has been a key strategy for achieving women’s
empowerment in Orissa. One of the important objectives of the Mission is to help
capacity-building of the existing and the new Groups to be formed to take up income-
generating and remunerative economic activities by providing them the necessary
technical support, market linkages and credit linkages, where necessary.

Though there appears to be adequate financing available for SHGs, many SHGs (and
other economic organizations of the poor such as common interest groups, farmers’
organizations, etc.) have difficulty in accessing these resources because they lack voice,
confidence, basic administrative skills and capacity (e.g. functional literacy, book-
keeping, etc.) and capability in negotiating with, and accessing support from, rural
banks, resource and marketing agencies. In addition, the potential financial viability of
many SHG enterprises is constrained by the lack of available physical productive assets
at the local level for example: local markets and farm-to market-roads. This problem is
further compounded by weak processes at the Gram Sabha and Gram Panchayat level
that result in a planning process which does not adequately reflect the needs of the poor
or their organizations.

2.2. Community Based Financial Organizations (CBFOs)

The project recognizes the progress under the Mission Shakti movement in Orissa that
has demonstrated considerable achievement in the field of social mobilization of the
poor into SHGs and some degree of credit mobilization from Banks. They have not
realized the economic benefit that was envisaged under the movement in the poverty
pockets of the identified project area. As of September 2007, an estimated 2,28,562

Page 19 of 198
SHGs were reported to have been promoted by the Department of Women and Child
Development through its ICDS workers, 70,000 SHGs by NGOs, and 52,000 by banks.

The situational analysis of the SHG program in Orissa suggests that there are certain
issues that are constraining the impact of the program. Some of the key issues are: (i)
no definitive estimate of number of functioning SHGs and their quality are available; (ii) a
significant proportion of SHGs are likely to be either defunct or functioning at very low
levels of potential; (iii) a large proportion of SHGs are likely to be functioning in a manner
that significantly deviates from self-help principles; (iv) quality of book-keeping is
generally reported to be poor; (v) on-time recovery of SHG loans has fallen to 93%; (vi) a
large number of GP level and Block-level federations have been promoted without clarity
of purpose or need for financial viability; and (vii) substantial number of poorer
households are outside of the SHG fold.

Furthermore, despite the rapid growth of the SHG-bank linkage, outreach of financial,
insurance and marketing services does not meet demand and there is tremendous
scope to address this. While SHGs have provided access to financial services for a large
number of people who previously did not have this opportunity, the services available
through SHGs remain very rudimentary. Moreover, the livelihoods portfolio of a rural
poor household11 is sub-optimally developed due to various factors such as; a) low
productivity of major sectors12; b) limited capacity of producer organizations 13; and c)
inadequate livelihood support services14. SHG members predominantly invest in small
scale agricultural and non-farm activities such as livestock and poultry rearing,
production of lentils and other products for the Government’s Mid-Day Meal Scheme for
school children, and local handicrafts and weaving. Overall the quality and quantity of
products is limited due to the lack of technical back-stopping, lack of ideas regarding
new livelihood opportunities and poor access to technically qualified service providers
and new markets.

This short-fall is further amplified for poor people who are living in a socio-political
system that is exclusionary and does not allow them access to entitlements. For
example, both inclusion and exclusion errors in Orissa for Below Poverty Line (BPL)
ration card holding are large. Inclusion errors, defined as the proportion of non-poor
11
Can be categorized as small and marginal farmers, landless agricultural labors, migrating labors, people
living in adverse social and physical conditions, destitute, widowed households and many other resource
poor people;
12
Agriculture, fisheries & livestock, handicraft & weaving are some sectors in Orissa on which large number
of poor people depend on their livelihoods;
13
Well-functioning producer organizations can help producers capture a better share of value in a product
supply chain by increasing bargaining power of the producers and providing support services such as
storage infrastructure, credit, and marketing;
14
Lack of professional support to enterprises supported on appropriate technology, input supply, quality
maintenance, and marketing as well as handholding of the enterprises during the initial stages of growth;

Page 20 of 198
being classified as BPL, are significant. For example, among all households carrying a
BPL card, 18% belong to the top two quintiles (the richest). However, exclusion too is
significant. Among the poorest 20% of households, around 35% do not possess a BPL
or AAY ration card. Across cast groupings, BPL coverage is significantly higher for STs
and SCs than for non-backward castes.

The importance of sustainable livelihood options for the poor in poverty alleviation
programs needs no mention. It has been widely observed that outcomes in terms of
greater economic upliftment have been achieved wherever capacity building and
beneficiary mobilization have been carried out. The project will emphasize on
strengthening and creation of organizations of the poor – SHGs and Federations at
Panchayat, Block and District levels with distinct roles and responsibilities. Focus will be
on Microfinance through provision of financial services to poor and under-served
communities with avenues for stimulating rural economic development through local
enterprise.

Limited Access to Financial Services for SHGs

• Limited outreach - Only a small proportion of the 3.5 million poor households in
Orissa are likely to be members of mature SHGs, clients of well-performing MFIs, or
direct clients of banks and other financial institutions.
• Limited depth - While SHGs have offered access to some financial services for a
large number of people who previously did not have this opportunity, the services
available through SHGs remain very primitive.
• Inadequate support to SHGs - For the large number of SHGs promoted through the
ICDS system, the range and quality of support services available is very limited.
This tends to be limited by the knowledge and skills of the Anganwadi workers and
supervisory staff of the system. The situation is likely to be similar for a large
number of SHGs promoted by several small NGOs.
• SHG as organization for savings and credit as well as micro-enterprise - Use of
an SHG as a unit for economic activity (particularly under SGSY, but also otherwise)
is problematic since not all members in the SHG are likely to be interested in a single
economic activity.

2.3. Low Enterprise Productivity and Enterprise Support Services

The SHGs provide a platform to systematically reach out to women and organize
them. It helps involve them and incorporate their views in planning and
implementation of microfinance and livelihood programmes. This gives them
increased access to economic resources of their families. As the SHGs mature the

Page 21 of 198
women also start establishing linkages with a number of external institutions helping
them widen their horizons. Using the strength of the collective they are able to
influence the outside world. However they have to deal with the following
bottlenecks:

• Low Investment in / productivity of major sectors with large number of


dependent poor: Agriculture and fisheries are two sectors in Orissa on which large
number of poor people depend for their livelihood. However, there is a paucity of
livelihood enhancing interventions in these sectors.
• Few well-functioning Community Based Livelihood Producer Groups: Well-
functioning Community Based Livelihood Producer Groups can help producers
capture a better share of value in a product supply chain by increasing bargaining
power of the producers and providing support services such as storage
infrastructure, credit, and marketing. While an exhaustive assessment will require
further study, well-functioning Community Based Livelihood Producer Groups are
estimated to be few in Orissa.
• Inadequate livelihood support services: While there are several institutions whose
mandate includes enhancing livelihoods of the rural poor, the capacity of such
organizations to reach the poor appears limited. Both DRDA and ORMAS
professionals operate at the district level. A sustained improvement in livelihoods of
the poor requires professional support at much lower levels, at least in the initial
stages. Some NGOs do provide such support but the availability is much lower than
the need. One of the key constraints to programs such as SGSY succeeding is likely
to be the lack of professional support to enterprises supported on appropriate
technology, input supply, quality maintenance, and marketing as well as handholding
of the enterprises during the initial stages of growth.

2.4. Unemployment among educated rural youth

It is necessary to again emphasize the factors that are affecting the current scenario -
state of the economy, unemployment and the field survey findings for emphasis.
• Orissa is still very much a rural state, where 85% of the population stays in rural area
as against 72% for the country. To put more emphasis, all the project districts have
higher proportion of rural population than the state proportion except Khurda and
Angul. The rural areas have their own issues which needs no emphasis.
• The state has higher proportion of rural person more than the age of 15 than the
same figure for all India, especially so in the age group of 15 – 29. This is not so in
case of Urban Orissa. One of the primary causes of this could be the high IMR of the
state. Once this issue is dealt with over a period of time, the state will continue to
have more proportion of people in the working age group for some years to come.

Page 22 of 198
• Orissa, including the rural area, has more proportion of illiterates and persons with
primary and middle education than all India in the working age group (15 years and
above), but much lesser proportion when it comes to people with education levels of
secondary and above. Does this imply that more numbers of people of the state are
dropping out of school in the primary and middle level? This will continue to remain
so for some more years as the current attendance rates of the state are the lowest in
the country.

Though the above trend might be over all true for all the districts, the proportion
might be more favourable for the project districts as all of them have significantly
higher literacy rates than the state.
• Orissa has one of the highest unemployment rates in the country, which sharpens
further in the age group of 15 – 29. Female unemployment rates have increased
more than that of the male over time periods implying that females are increasingly
seeking work. But rural unemployment rates are lower than the urban ones.

This obviously does not mean that the rural youth are in a better position, but the fact
could be that they are desperate for work and take up any work that is available
where as the urban youth are choosy. Also now that it is known that the incidence of
poverty in the state is mostly rural, lower unemployment rates in rural area mean
poor quality of work, high level of under employment resulting in very low wages.
• One of the reasons of unemployment among the educated is preference for
organised sector jobs, which currently stands between 7 – 8 % of total employment,
and is unlikely to see any increase in the near future due to the techno-economic
changes happening in the country as a result of employment squeeze by state, and
public sectors. The private sector employment growth in the organised sector is too
low to keep pace with increase in the labour force.
• The state has more proportion of casual workers than the country. % main worker to
population of Orissa is 5th lowest in the country and has decreased significantly in the
last reporting period.

Caste-wise, among the scheduled tribe population, the incidence of poverty is higher
than that among scheduled caste and other caste population. As a result of higher
incidence of poverty in the State, the living condition of the people in terms of the
development indicators like literacy rate, infant mortality rate, per capita income, per
capita food grain production, etc. is much below the national average. Even within the
State, composite indices of the socio-economic indicators show that there was greater
inter-district variation in the living condition of the people. Moreover, the performances of
the welfare activities are not satisfactory in the State which is mainly responsible for the
poor living condition of the people.

Page 23 of 198
Finally, the exercise of poverty alleviation requires to be integrated into the micro context
of its existence. In its existing form, while one initiative attempts to address a specific
requirement, there is always another variable that pulls the BPL person back into the
poverty trap. Identification of the crucial element that would uplift a person from his
circumstances would be direct and automatic if the programme itself is demand driven,
rather than being allocation driven or policy maker driven. A demand driven approach
covering wage labour, self-employment, placement employment or any viable means of
livelihood will lead to the better deployment of resources A demand driven strategy,
ultimately will also accord greater respect to social choice.

It is to be noted that addressing poverty requires a three pronged measure in the coastal
districts of Orissa:
o Dedicated agency and administrative structure to implement poverty alleviation
program in the selected districts which will provide professional support to SHG
Federations and enterprises with regard to appropriate technology, input supply,
quality maintenance, and marketing as well as handholding of the enterprises during
the initial stages of growth.
o Facilitating empowerment and capacity building of the Self-help Groups and
Federations - SHGs and SHG federations need to be developed as financial service-
organizations if these organizations are to make a significant impact in providing
access to financial services for the poor. As presently promoted, these organizations
are socially empowering, but the economic impacts are limited because of the limited
depth of services provided.
o Providing livelihood opportunity to the SHGs and Federations – Sustained
improvement in livelihoods of the poor will require professional support for the
development of Value Chain Analysis and Livelihood Sub-Projects and community
organization for managing operations at scale. at much lower levels, at least in the
initial stages. Some NGOs do provide such support but the availability is much lower
than the need.

Page 24 of 198
3. Project Strategy

TRIPTI will adopt a three-pronged strategy which would include investment in processes
to build “voice” (empowerment) of the rural poor and simultaneously, access to
productive assets and finally provide a platform for “scaling-up” of livelihoods activities.
People’s institution of the poor for voice and scale, will enable the poor to negotiate and
bargain with market actors for better economic gains and subsequently, negotiate with
service providers (government, private sector, civil society) for better service delivery.
Several models have been initiated by the GoO, NGOs, private sector and Bank
supported projects in India; and they have demonstrated innovative developmental and
business practices to successfully deliver financial services to the poor; and create
opportunities for marketing produce and local level value addition with scale. The
proposed project seeks to build on these existing innovations and provide an enabling
institutional framework to scale-up more promising initiatives and innovations.

3.1. Project Objective

Enhancing the socio-economic status of the poor especially women and


disadvantaged groups in selected districts

The project aims to achieve this objective by:


a. Strengthening economic organizations of the poor to be more self reliant and achieve
better livelihoods for members.
b. Enable women’s’ groups to play a more vocal role in local decision-making and help
them sustainably access financial services from public and private financial
institutions for establishing economically viable small to medium scale enterprises.
c. Increase incomes of the majority of the poor members of SHGs through enhanced
rural livelihoods by financing capacity building measures and developing market
linkages.

3.2. Project Principles:


 Economic – all interventions will be designed to ensure improved cost-effectiveness
and increased economic return to the community members.
 Institutional - effective utilization of existing capacity (district, block level staff and
federation members) for delivering and monitoring services at the district level.
 Social -- improved capacity of communities to organize them to identify their needs
and access support to meet these needs.
 Participation - increased focus on involving communities in a participatory manner.

Page 25 of 198
3.3. Project Approach:
A) Building Inclusive community institutions
B) Increasing access to financial services
C) Increasing sustainable income opportunities
D) Tribal Development Plans
Extensive lessons are available with GoO from implementation of various poverty
alleviation programs such as SGSY and Integrated Rural Development Program (IRDP).
The project has drawn lessons from the recent experience with the CDD approach under
the IDA funded projects such as Andhra Pradesh District Poverty Initiatives Project
(APDPIP), Andhra Pradesh Rural Poverty Reduction Project (APRPRP), Madhya
Pradesh District Poverty Initiatives Project and Rajasthan District Poverty Initiatives
Project has incorporated the following lessons in its design:

Table-3
Good Practices / Strategy adopted in Project Design
Challenges
Create special Recognizing that the extremely poor and vulnerable groups (EPVGs)
mechanisms to reach may not be participating in self-help institutions through which they
the poorest of the poor. can improve their economic status. The project provides special
funding to jump start their participation in SHGs.
Build core skills for The project will focus on strengthening the capacity of SHGs and its
long-term sustainability federations at different levels in core operational and financial
of economic functions so as to ensure that SHGs meet NABARD’s graduation
organizations of the criteria.
poor.
Savings and credit The project recognizes that individuals who come together to access
groups do not microfinance do not necessarily have a common interest in an
necessarily function economic activity and the requisite skill set. The project is, therefore,
well as economic promoting the establishment of affinity groups such as Producer
activity groups. Organizations, whose membership may continue to belong to
separate SHGs through which they access finance.
Facilitate selection of The project will conduct a District-level livelihood assessment to
economic activities to identify a few high potential economic activities. Livelihood funds
ensure they are market- would then support interested producers to formulate business plans
driven. and establish livelihood-focused producer organizations.
Federate to ensure The project will encourage SHGs to cluster and form panchayat and
long-term sustainability, block-level federations, thus increasing the likelihood of these
achieve economies of organizations continuing to exist beyond the life of the project and
scale and increase enabling them to benefit from lower transaction costs, improved

Page 26 of 198
returns. market access etc.
Reduce scope for The project will reduce the scope for corruption at all levels through
corruption through direct transfer of funds from the state unit to project beneficiary
direct transfers and groups. Further, a Grievance Handling System through which
participatory monitoring beneficiaries and staff may report on various types of irregularities will
systems. be adopted to increase accountability at all levels of implementation.
This will build upon the Governance Accountability Action Plan, which
builds upon RTI legislation.
Employ a competitive The project has adopted a competitive, merit-based and transparent
recruitment system to recruitment system for both staff and specialists who will be sourced
ensure high quality and from government departments and the open market. This process will
commitment. reduce the potential for nepotism while ensuring the project is led and
implemented by highly motivated and suitably qualified staff. An
overall HR strategy will be developed and agency hired to assist with
recruitment.
Community resource A cadre of community managed functionaries will be trained who will
persons/facilitators are then mobilize and provide support to the network of institutions.
effective social
mobilizers and offer a
sustainable option for
scaling up
Linkage with line To ensure sustainability, linkages with PRIs and line departments will
departments and PRIs be developed at the outset. These linkages will be facilitated in terms
of PRI service provisioning becoming more inclusive and their
services to become more accountable. Inter-phase between PRIs and
SHGs will occur through gram sabhas for identification of the poor,
participatory monitoring of the programme and access of services
such as Mid-day Meals.
Decentralized Project staff will be decentralized to the block and cluster level to
implementing agency allow close supervision, facilitation and capacity building of SHG
with high quality staff federation. Over time these staff will be directly recruited by the SHG
placed at block level federations

Page 27 of 198
3.4. Expected Outcomes
♦ 50% of the 30,000 SHGs (300,000 households) have saved at least
Rs.2500/- in SHG/CBOs; availed at least Rs.10000/- as investment credit
annually from CBOs, and are covered for the risk for at least Rs.20,000/- for
life/asset
♦ At least 60% of all type of CBOs score “Satisfactory” consistently in the
Institutional Maturity Indicators (on parameters like organizational
development, functioning, inclusiveness, accountability, transparency,
resource mobilization, cost coverage, etc.). At least 50% of households
(including the extremely poor and vulnerable groups) have increased
productive and sustainable asset base
♦ At least 75% of households directly benefiting from project reported reduced
dependency on the high cost borrowing sources

Page 28 of 198
4. Project Area and Phasing

TRIPTI Project will be implemented in 10 districts namely Anugul, Balasore, Bhadrak,


Jajpur, Kendrapara, Jagatsinghpur, Puri Khurda, Nayagarh and Cuttack.

4.1. Selection of Project Blocks


Since the project aims to improve the livelihoods of rural poor by mobilising them into
Women SHGs and appropriate financial assistance thereafter, the following socio
economic were taken into consideration for selection of blocks.
Indicator Relevance
a) Total Population For wider project coverage
b) SC / ST Population Coverage of vulnerable sections of
society
c) No. of Existing GR I passed SHGs Availability of readymade platform of
strong SHGs for the project to take off
immediately
d) Composite Development Index of Coverage of underdeveloped blocks and
Blocks as per Ghadai Committee areas in the project district
Report (1993)

While preparing a framework for selection of “TRIPTI Blocks” double weightage was
given to the Socio Economic Indicators mentioned in (b) and (d) above. Block weightage
points were calculated and for each indicator based on the following principles:

Indicator Weightage Point (assuming 10 blocks in a district)


a) Total Population Least populous block – 1 Most populous block – 10
point points
b) SC / ST Population Block with lowest SC / ST Block with highest SC / ST
population – 2 points population – 20 points
c) No. of Existing GR I Block with lowest number of Block with highest number
passed SHGs such SHGs – 1 point of such SHGs – 10 points
d) Composite Development Most developed Block – 2 Least developed Block – 20
Index of Blocks as per points points
Ghadai Committee Report
(1993)

On the basis of the above scoring framework weightage points were calculated for all the
blocks of the 10 project districts. Accordingly 38 blocks (2 blocks from Cuttack and 4

Page 29 of 198
blocks each from rest 9 districts) were selected which secured highest weightage points
in comparison to other blocks in the respective districts.

Table- 4.1
Name of District Name of the Blocks selected
Angul Chendipada, Angul, Atthamalik, Pallahara
Balasore Balasore, Bhograi, Jaleswar, Khaira
Bhadrak Bhadrak, Basudevpur, Chanbali, Tihidi
Cuttack Badamba, Narsinghpur
Jajpur Dharmasala, Danagadi, Dasarathapur, Sukinda
Jagatsinghpur Tirtol, Kujang, Ersama, Balikuda
Kendrapara Patamundai, Rajnagar, Mahakalpada, Kendrapara
Khurda Balianta, Begunia, Chilika, Tangi
Nayagarh Daspalla, Nuagaon, Odagaon, Ranpur
Puri Puri (Sadar), Gop, Astaranga, Nimapara

4.2. Project Phasing:


In the first year the project will focus on establishing systems and process to achieve
intensive coverage of institution building. The strategy includes immersion programs
through exposure visits to best practices within Orissa and outside the state for SHG
members & leaders as well as project staff and use of resources already developed
under similar project in States like Andhra Pradesh, Tamil Nadu, Madhya Pradesh, and
Rajasthan.

The project will follow a saturation approach, meaning all the poor households in all 38
blocks of 10 districts of Angul, Balasore, Bhadrak, Cuttack, Jagatsinghpur, Jajpur,
Kendrapada, Khurda, Nayagarh, and Puri will be brought under SHG fold. The project is
expected to directly benefit about 1.5 million people belonging to 300,000 households.
For ensuring sustainability and institutional development implementation will be done in
a phased manner. This would allow sufficient time for development of an HR strategy,
staff recruitment, training and piloting of institutional delivery and monitoring systems.

4.3. Project Inputs at GP Level


The cycle that the project will follow at the village level is laid out in table below. The
Project Development Cycle has four stages of Initiation & Stock Taking, Social
Mobilization, Capacity Building, Value Chain Proposals - Planning & Implementation and
Federation Strengthening & Building. Table provides details of activities at the village
level and key milestones for each stage.

Page 30 of 198
Table-4.3

Stages Key Activities Key Milestone / Triggers

Initiation and  Preparation of clusters for placement of  Multi-GP Clusters finalized


Stock Taking Cluster Coordinators  Cluster Coordinators recruited and
 Placement of Cluster Coordinators functional
 Training and induction of Cluster  Cluster Coordinators inducted:
Coordinators well versed with project details and
 Mapping & rating of SHGs in each GP their role in the project
and Block  Based on mapping & rating
 Mapping & rating of GPLFs and BLFs exercise: “Quality Index/Card” of
 Based on mapping exercise Institution all SHGs, GPLF and BLF
Building plan for quality enhancement developed and Institution Building
prepared plan for each prepared
 Identification of poorer household still outside  List of BPL households outside the
the SHG fold SHG fold prepared

Page 31 of 198
Social  Identification, selection and Capacity Building  Formation of SHGs with members
Mobilization of CRPs from left-out poorer households
 Training of SHGs on Social Inclusion aspects  Opening of bank accounts for all
 Mobilize identified left-out poorer households new SHGs
into SHGs  Regular meetings and savings of
 Formation of SHGs and training of SHG groups
members and office bearers  Repayment rate on inter loans at
 Identification and training of community 95-100%
resource persons (CRPs) and book keepers  Substantial number of CRPs and
 SHGs meet regularly, practice thrift and inter bookkeepers trained and providing
loaning according to group norms services
 Training to SHGs in development of micro  Micro investment plan approved
investment plans for investments in and first tranche of CIF provided
productive assets  Majority of SHGs received credit
from Banks and repaying
Institution  Formation and strengthening of GPLFs  Establishment of GPLFs and office
Building of  Establishment of accountability systems bearers
GPLFs  Capacity building for GPLFs in micro  Majority of SHGs have been credit
investment planning and creation of a linked
community investment fund  Accountability systems in place
 Introduction of computerized financial and functioning
management systems
 Establishment of social accountability system
and processes
 Exposure visits for learning
 Launching of skill building programs for rural
youth
Value Chain  Mapping of livelihood activities for which a  Value chain identified and appraise
Proposals: substantial number of SHG members are for initiating investments

Planning &
investing  Producer Organizations formed
 Formation of value chain specific Community  Value chain investment proposal
Implementation
Based Livelihood Producer Groups prepared, appraised and
 Training on development of value chain sanctioned for implementation
investment plans  Procurement committees
 Preparation of value chain proposals established
 Establish partnerships and linkages with  Community Based Livelihood
service providers and private sector Producer Groups functioning with
 Establishment of procurement committee strong networks with private and
 Procurement of service provider for technical public sector as well as local
support on value chain development governance bodies
 Technical assistance and capacity building
provided to Producer Groups

Page 32 of 198
Block Level  Technical assistance and capacity building  BLFs functioning with strong
SHG
Federations provided to BLFs networks with private and public
Strengthening sector as well as local governance
& Building
bodies

Page 33 of 198
5. Project Components

Despite of the rapid growth of the SHG-bank linkage in the State, outreach of financial,
insurance and marketing services is far below demand and there is tremendous scope to
address this demand. While SHGs have provided access to financial services for a large
number of people who previously did not have this opportunity, the services available
through SHGs remain very rudimentary. Moreover, the livelihoods portfolio of a rural
poor household is sub-optimally developed due to various factors such as; a) low
productivity of major sectors; b) limited capacity of Community Based Livelihood
Producer Groups; and c) inadequate livelihood support services. It is in this background
that the core design of the proposed project to address the above challenges and
opportunities in a holistic manner.

TRIPTI intends to work with all the existing SHGs in the operational area and would build
their capacity to become an engine for socio-economic development of the members.
The primary focus of the project is to provide equitable and enabling opportunities to the
rural poor and vulnerable of Orissa for ensuring better livelihoods. The Programme will
be demand driven focusing on identifying crucial elements in the livelihood approach
applicable to the community. The demand driven approaches will aim to establish
livelihood interventions and up scaling key sectors through better service delivery and
better interface between producers and facilitating agencies.

The activities and resources of the project are structured around the following four
components:

Table 5
Components Sub Components
Component 1: Institutional 1 A. Community Level Institution Building
Building 1 B. Developing Capacity of Project Staff

Component 2: Community 2 A. Financing Micro Investment Plans


Investment Fund 2 B. Pro poor Inclusion

3 A. Value Chain Proposals


Component 3: Livelihood
3 B. Skill Development & Jobs for Rural Youth
Fund
3 C. Innovations on Livelihoods Enhancement &
Promotion
4 A. Project Management
Component 4: Project
4 B. Monitoring & Evaluation
Management, Knowledge
4 C. Learning and Replication: Thematic studies &
Management & Replication
Pilots

Page 34 of 198
5.1. Community Institution Building

5.1.1. Objectives
• Build and strengthen client owned, managed and controlled sustainable
community based institutions of poor i.e. SHGs, their federations and producer
organizations;
• Develop a cadre of strong Community Resource Persons (CRPs) for providing
on-time and continuous support to SHGs, their federations and producer
organizations;
• Strengthen and empower SHGs, their federations and producer organizations to
participate actively in the development programs;
• Enhance the knowledge base, skills and influence the attitudes of all project
staffs at different levels of project implementation, for enabling them to work as
effective teams to achieve TRIPTI objectives and outcomes; and
• Orient all other stakeholders on the project objectives and the operational
aspects of TRIPTI.

5.1.2. Sub-component Community-level Institution Building


The community level institutions that TRIPTI will directly promote and invest on
strengthening their capacities are as listed in Table – 5.1.1 with their key functions, and
supporting functionaries.

Table 5.1.1: Community Level Institutions with summary of key functions &
supporting functionaries
Community Level Key Functions Supporting
Institutions Functionaries

Self Help Groups  Will be based on thrift and  Book keeper


revolving their internal savings for  SHG’s
providing credit to each other. President, Secretary
 Planning and implementaion of & Treasure
micro investment plan (MIP)
GP Level SHG  Will provide the SHGs technical  Book Keeper
Federation assistance for preparation of MIP  Auditor
 Facilitate access to financial and  Executive
technical resources from the project & Committee
other financial institutions Members
 Take-up specific social and economic  Various functional
activities requiring collective action. committees

Page 35 of 198
Block Level SHG  Provide GP Level Federations with  CEO
Federation technical assistance, capacity building  2 Functional
and facilitate convergence between Coordinators for 3-4
CBOs and different agencies of GPs
development like local governments  Executive
and line agencies. Committee
 Hire functionaries to provide support to Members
GP Level Federations.  Various functional
 Arrange bulk finance for the GP Level committees
Federations from commercial banks
and support formation and promotion
of livelihood based organisations and
activities requiring linkages with
comemercial sector organisations.
Producer’s Groups  Purchase or procurement of inputs for  Board of Directors
and their production  CEO
collectives at  Local processing and storing of inputs  Functional
higher levels and outputs Coordinators
 Marketing and selling of produce
 Develop commercial and direct
relationships with private, cooperative
and public sector agencies.

Page 36 of 198
5.1.2.1. Institution building processes
Situatio
n
Assessm 1 month – by CC
ent

GPLF
Functio
Formati
nal
on /
Revival
of GPLF

Start-up Fund 3 months


(Communication
Campaign + Initial
Setup)

GPLF IB
Plan 3- 6 months

MIP
Training 1 month

Strengthe
ning Plan

♦ Formation and strengthening of SHGs


SHG is a small homogeneous group consisting of 10-20 members with similar socio-
economic conditions, living in the same village or neighbourhood, coming together on a
self selection basis for sharing their common concerns, pooling their own resources
(both financial and non-financial) and working together for their personal, social,
economic and political development. Generally, a self-help group may consist of 10 to
20 members. However, in difficult areas like deserts, hills and areas with scattered and
sparse population and in case of persons with disability, this number may vary from 5 to
20.

Page 37 of 198
They agree to save regularly, rotate their internal fund and leverage external capital in
order to create financially viable and sustainable Common Fund known as the Group
Corpus. The members of the group agree to use this common fund and such other
funds that they may receive as a group through common management for meeting their
credit requirements. The SHGs will generate its income by collecting interest on loans
given from their own corpus, penalties and interest margins on loans accessed from
external sources.

The group will frame its norms that are essential for administrative and financial
management, select 2/3 office bearers (President, Secretary and Treasurer), open an
account on group’s name in the nearest bank branch and nominate Office Bearers to act
as signatories. The SHG will maintain Books of accounts with support of a Bookkeeper
who belongs to the same group or the same village. The Bookkeeper will write books of
accounts during the SHG meetings only. The SHG has to pay honorarium to the SHG
Bookkeeper from their group corpus fund.

Five Golden Rules for Self-Help Groups

• Regularity of meetings (Weekly/fortnightly/monthly)


• Regularity of savings (Weekly/fortnightly/monthly)
• Regularity of internal lending (Weekly/fortnightly/monthly)
• Regularity of repayments (as per members family income & cash flows)
• Regularity of Bookkeeping (Weekly/fortnightly/monthly)

The project intends to work with all the existing SHGs in the operational area. The BPFT
has to ensure that all SHGs irrespective of promoting agency shall access their
entitlements based on their performance track record, and conforming to the TRIPTI
guidelines. As there is a felt need for capacity building of SHGs, the project will will
focus on building the capacities of the existing SHGS so that they can become self-
sustainable institutions. The GPLF will do the capacity need assessment of the member
SHGs and will prepare an Institution Building (IB) plan based on the findings of the
assessment. (Details of IB plan has been discussed later in this chapter)

However new groups will be formed to include the left out poor in the group fold. The
Left out Poor are defined as those people on the 2002 BPL survey list that are not yet a
part of the SHG movement in the state. The 2002 BPL survey list will be adapted as the
standard for identifying the bulk of the poorest households in the project blocks to whom
benefits will be extended.

Page 38 of 198
Formation and strengthening of GPLFs

Grading
/
Assess
ment /
Financia
III / IV
l Audit
Grade

Min II
Revival
Grade
/
Capacit
y Need
Building specific
Training

MIP
Preparati
on &
Appraisal

Release of
funds from
GPLF / Bank
Linkage

GP Level Federation will comprise of 25-40 SHGs functional within a Gram Panchayat.
In case there are more than 40 SHGs in one GP, two Federations within the GP will be
promoted based on geographical coverage (keeping distance convenience for member
SHGs in perspective) and functional effectiveness of GPLF to provide necessary
services.

The GPLF will be the hub of all activities undertaken in the project. Therefore it is
necessary to assess the existing status of the GPLF. This will be done by the Cluster
Coordinator while undertaking the situational analysis of the concerned Panchayat.

Page 39 of 198
The format for situational analysis has been provided in the annexure-V. Each Cluster
Coordinator will have to undergo a month immersion programme in a particular
Panchayat (other than his native Panchayat) where s/he has to conduct the situational
analysis for the same. Initially s/he has to interact with key respondents in the villages
and identify the major issues pertaining to that village. Assessing the status of the
existing SHGs and studying the potential of newer ones will be one of the main tasks of
the CC. S/he will present the findings of the situation analysis in the GP level orientation
meetings and introduce the project to the major stakeholders in the Panchayat. The CC
will also assess the functionality of the GPLF if there exists one or more in the
Panchayat.

If there are more than one functional GPLF and they conform to TRIPTI guidelines, the
project will work with both of them instead of focusing on only one of them.

Based on field visit analysis in the project blocks and panchayats, three kinds of
inferences are available regarding the status of GPLF in the project blocks, these three
situations are explained below and accordingly, the project strategy is proposed for
working with GPLFs.

1. GPLF non-existent
Where GPLF is non-existent, the BPFT will be primarily responsible to form the
GPLF. The BPFT with the support of the CC will grade the SHGs existing in the GP.
Initially, the groups will be graded based on the NABARD guidelines. It will be
needed for leveraging bank linkage as the banks follow these guidelines for funding
SHGs. But the project will develop its own grading tool consolidating the learning
from Mission Shakti and other similar projects. This will be followed by the capacity
need assessment of the groups. Based on the findings of the need assessment, the
BPFT will organise group management, book-keeping, leadership development
trainings and exposure visits for the office bearers, functionaries and members of the
SHGs. Only after 12 – 15 SHGs in the same GP start functioning by adhering to the
five golden rules, process of GPLF formation will start.

2. GPLF existent but not functional


Where GPLF is non-functional, the BPFT will be primarily responsible to revive the
GPLF. The BPFT with the support of the CCs will study the resources, governance,
design of systems and implementation and efficiency of the federation. This will help
the team to identify the gaps and address the same in the federation. The team will
also grade the existing member and conduct capacity need assessment of the
groups. Based on the findings of the need assessment, the BPFT will organise group
management, book-keeping, leadership development trainings and exposure visits

Page 40 of 198
for the office bearers, leaders and members of the SHGs. The team will also
organise federation management trainings for the GPLF leaders and accounting and
auditing training for the book-keepers and auditors of the GPLF. These capacity
building processes will gradually help in reviving the federation.

3. GPLF existent and functional

Criteria of a functional GPLF:


♦ At least 75% functioning SHGs in the GP are members of the GPLF
♦ The member SHGs have become members either by paying one time
membership fees or regular subscription as per the bye-laws of the
federation
♦ GPLF has an account in the nearest bank.
♦ Books of accounts are updated on monthly basis.
♦ At least 90% of Executive Committee (EC) meetings have been held as
stipulated in the bye-laws of the federation.
♦ GB (General Body) meeting has been held in the last financial year, as
stipulated in the bye-laws of the federation, with minimum 60% participation
by primary GB members.

 Start-up funds will be released by the project in all functional GPLFs and in
other GPLFs only after they become functional. As the term is self-explanatory,
GPLF will be provided with a start-up fund for purchase of fixtures and furniture
and setting up of their office. The GPLF will organize a communication
campaign in the GP and reach out to all households in GP for spreading
awareness about the project. The communication campaign aims to
communicate with majority of the households residing in the GP. Localized
communication medium will be used to reach out to these households.
Therefore, the entire planning and execution of the communication campaign will
be done by the GPLF. The key messages of the campaign would focus on the
TRIPTI principles, approach, and key project implementation process guidelines.

 Based on the findings from the situational analysis, the GPLF - EC members will
prepare a GPLF Institution Building (IB) Plan. The BPFT along with the CC will
facilitate the process. The IB Plan will focus on the following four activities:

a) Initial capacity building activities:


This could include structured trainings (both financial and non-financial)and
exposure visits both at the GPLF or SHG level. The themes of training will be
decided by the EC members of GPLF.

Page 41 of 198
b) Inclusion of left-out BPL households (as per BPL survey list 2002) into the
group:
The GPLF would identify the left out poor in the villages and mobilize them into
groups. These women can either be formed into new groups or included into the
adjacent existing groups. The Left out Poor are defined as those people on the
2002 BPL survey list that are not yet a part of the SHGs in the project blocks.
(Further elaborated in section under Pro-poor Inclusion in Component - 2)

c) Identification and mobilization of extremely poor and vulnerable groups


(EPVGs):
The GPLF would identify the EPVGs and mobilize them into groups and link
them to State social welfare programs and schemes for benefits. Community
based identification of the EPVGs will be adopted as a means to identify the
target population. The process of selection will be initiated at the village level
through participatory meetings led by CRPs, federation executive members,
supported by CCs. An aggregate list of proposed beneficiaries will be
consolidated and discussed at the GP level. Bridging finance up to Rs.
3000/beneficiary for the inclusion of identified beneficiaries into existing SHGs.
Innovative activities to enhance the productive potential of the extreme poor and
vulnerable persons will also be funded by this fund. (Further elaborated in section
under Pro-poor Inclusion in Component - 2)

d) Developing a cadre of Community Resource Persons (CRPs): A cadre of


CRPs will be supported by the project for social mobilisation. The project will
invest in building their knowledge and skills to provide services to and be
accountable to the community level institutions. The project envisages that in
course of time these CRPs will form the backbone of the institution building
process at the community level. CRPs are community leaders from mature SHGs
who are out of poverty by being members of groups. They will play a vital role in
expanding the group base. They will be the key resource persons in the project
to replicate the institution building processes with their experiential learning and
exposure to best practices.

A cadre of CRPs other than for social mobilisation like book-keepers, paravets,
job resource persons and health activists) will also be supported by the project.
They will emerge from the community as and when their services will be required
by the same. The project will focus on building such social capital at grassroots
level so that they will be very effective in spreading the information and providing
qualitative services to the community on a sustainable basis.

Page 42 of 198
Characteristics of CRPs for social mobilisation:
o A role model member of SHG, GPLF and BLF.
o The SHG and GPLF must be strong, mature and self-reliant
organizations and recognized as role models.
o She has high level of experience of managing their own organizations.
o She should not have any loan default.
o She has excellent articulation skill.
o She should be sensitive to the needs of the excluded groups.
o She should have reading and writing skills.
o She should be willing to travel extensively.
o She has a thorough knowledge and experience of various trainings to be
given to the members of SHGs and GPLFs through their experiential
learning and best practices followed in their organizations.
o She has the ability to use their folklore in the trainings for motivating new
members.

CRP team composition: Each CRP team will comprise four women leaders
of SHG and GPLF; one senior book-keeper and one Cluster Coordinator. In
cases where there will be no federation, CRPs will be identified from the
mature SHGs existing in the Panchayat.

CRP Promotion Strategy:


♦ During the initial stage, external CRPs from similar projects will help
the project to build the capacities of the internal CRPs in TRIPTI
operational blocks.
♦ CRP teams will have orientation training in their respective blocks on
the action plan to be implemented by them in the operational area.
♦ The CRP team will document the case studies of the members,
SHGs, GPLFs and create profile of their organizations on institution
building, microfinance, seed capital management, loan profile of groups
and members, organizational processes, community staff roles and
responsibilities, best practices followed in their institutions etc.
♦ The external CRP team will spend 15 days each in each Panchayat.
In these 15 days, the external CRP team will intensively work to build the
capacities of internal CRPs of that Panchayat. The internal CRPs will be
identified by the GPLF with facilitation of BPFT. The Cluster Coordinator
will monitor the whole process. The mobilization work in the Panchayat
will be then taken up by the internal CRP team.

Page 43 of 198
e) Capacity building for preparation of MIPs: One of the key outputs of the
successful implementation of the IB Plan is that the SHGs and the GPLF are
able to prepare, appraise and consolidate Micro-Investment Plans (MIPs).
Therefore, one of the primary capacity building activities under the IB Plan is
training to SHG and GPLF members on preparation of the MIPs. The GPLF
Executive Committee along with the Finance Committee members will be
trained on preparation, appraisal and consolidation of MIPs. A separate
module for MIP training will be prepared for this, which will be based on
learning from similar projects and also, from experiences emerging from
within the project. Based on these MIPs, Community Investment Funds (CIF)
will be provided to the GPLFs; the entire process on how CIF will be
implemented is explained and elaborated in the section on Component 2:
Community Investment Fund.

o Strategically, it is also planned that CIF will be transferred in two


steps/tanches because in addition to ensuring that the CIF is utilized
effectively, it will also act as a capacity building tactic where in the GPLF will
have direct involvement in the implementation and management of the CIF.
This process itself is envisaged as an enormous opportunity for experiential
learning. Therefore, from an institution building process perspective, it is
designed in TRIPTI that there will be another simultaneous phase with
implementation of CIF for GPLF strengthening. This phase will include a
preparation and implementation of a GPLF Strengthening Plan. For
implementation of strengthening plan there will be technical assistance drawn
from agencies and institutions of repute within India. The Strengthening Plan
would primarily focus on following activities:

♦ Developing business plans for GPLF- This will include - how to


generate income by collecting share capital, membership fee, service
fees ,savings, interest margins and penalties so that it becomes
financially sustainable in a period of 3 years.
♦ Follow up federation management trainings for the office
bearers of GPLF in order to develop their clarity on the roles and
responsibilities of the EC and have a long term vision and strategy to
work effectively. TRIPTI places great emphasis on training community
leaders and giving them exposure on their roles and responsibilities.
These trainings will basically aim to enhance the knowledge of the office
bearers of GPLF on technical aspects to manage strategic roles of the
federation.

Page 44 of 198
♦ Capacity building for management of CIF – Officer Bearers,
CRPs, Executive Members and Finance Committee members of the
GPLF will be trained on CIF monitoring and management so that they can
rotate and utilize the CIF effectively.
♦ Capacity building for using FMIS- This is necessary for building
the capacity of the federations for management of financial intermediary
role.
♦Capacity building for using audit reports, financial management reports
grading reports, etc.

Committees in GPLF:

For smooth functioning of GPLF various functional committees will be formed with
member’s representation from the GB and Executive Committee of the GPLF. The
various committees to be formed are elaborated below:

Participatory Monitoring Committee (PMC):


Composition:
The PMC will consist of 5 members from GB who are not in the Executive Committee or
from any other Committees of GPLF.

In GPs where the tribal population is 11-30%, at least one tribal will be member in the
PMC.

Selection:
The members of PMC will directly elected by the Governing body (GB).

Functions:
♦ Ensuring that all the committees follow the procurement procedures as outlined in
the community procurement booklet of the COM.
♦ Reporting to GB regarding any violation or deviation of rules by the EC or any other
committees.
♦ Monitoring the adherence to project principles and rules in selection of beneficiaries,
implementation of sub-projects and all decisions of GB.
♦ Ensuring that transparency and accountability systems are in place and functioning.

In GPs where the population is greater than 30%, at least one tribal will be member in
each of the GPLF Committees

Finance Committee:
Composition:

Page 45 of 198
The Finance Committee will comprise of the following 5 members:
♦ 2 members from the EC; and 3 members from GB

Selection:
EC will nominate the EC and GB members to the Finance Committee, subsequently
approved by the GB.

Functions:
♦ Appraising the MIPs submitted by the member SHGs.
♦ Liasoning with banks for establishing linkage to facilitate access to credit.
♦ Preparing annual budget for GPLF and submit to EC for approval.
♦ Reporting to GB progress on status of MIPs appraised, CIF funds received and
disbursed to members during GB meetings.

In GPs where the population is greater than 30%, at least one tribal will be member in
each of the GPLF Committees

Procurement Committee:
Composition:
The Procurement Committee will comprise of the following 5 members:
♦ 2 members from the EC and 3 nominees from GB

Selection:
EC will nominate the EC and GB members to the Procurement Committee, subsequently
approved by the GB.

Functions:
♦ Preparing procurement plans and submitting to the EC for approval.
♦ Taking responsibility for implementation of procurement plans and ensuring
compliance with agreed procurement procedures.
♦ Ensuring that all member SHGs are aware and versed with procurement procedures.
♦ Ensuring that the display boards provide updated information on all procurement
decisions.
♦ Reporting to GB during the GB meeting on procurements made during the year,
issues arising during procurement and process undertaken to resolve these issues.

In GPs where the population is greater than 30%, at least one tribal will be member in
each of the GPLF Committees

Utilization Verification Committee:

Page 46 of 198
Composition:
The Utilization Verification Committee will comprise of the following 5 members:
♦ 2 members from the EC and 3 members from GB

Selection:
EC will nominate the EC and GB members to the Utilisation Verification Committee,
subsequently approved by the GB.

Functions:
♦ Verify randomly at least 25% of the loans sanctioned to SHGs to confirm utilization of
funds for intended purposes;
♦ Record outcome of random verification of sanctioned loans in a systematic way; and
♦ Report to EC regarding any instances of misuse of loan funds, other than intended
purposes.

In GPs where the population is greater than 30%, at least one tribal will be member in
each of the GPLF Committees

Social Services Committee:


Composition:
The Social Services Committee will comprise of the following 5 members:
♦ 2 members from the EC and 3 members from GB

Selection:
EC will nominate the EC and GB members to the Social Services Committee,
subsequently approved by the GB.

Functions:
♦ Overseeing performance of MDM and other social security schemes
♦ Plan and monitor special activities for the EPVGs
♦ Monitoring and ensuring quality management of community based services

In GPs where the population is greater than 30%, at least one tribal will be member in
each of the GPLF Committees

Tribal Committee:
In GPs where the tribal population is 11-30%, there will be a separate Tribal Committee
to oversee that the tribals are included in all the project processes and the project
entitlements are availed by them. This committee will be selected by the GB.

Page 47 of 198
♦ General Body of GPLF:
All members of SHGs who are member of the GPLF will constitute the General Body of
that GPLF.
♦ Executive Committee of the GPLF:
The General Body will nominate 11 members in the Executive Committee, out of which 3
will be nominated as the Office Bearers (President, secretary and Treasurer) of the
GPLF. If there is disagreement among the GB members, election will be conducted for
selecting EC members.

Members of the EC shall not to be office bearers in SHGs once they are elected to the
EC.

In GPs where the population is greater than 30%, tribals will hold at least 4 posts among
the 11 member Executive Committee

♦ Regularizing election of office bearers


The term of the EC members will be for two years but for the smooth functioning of
GPLF, 1/3rd of EC members can be allowed to continue for a period of 2½ years instead
of 2 years. These one-third members will be decided by the EC itself. Nominated
members shall have no right to vote. The BPFT in the initial 3 years and BLF henceforth
will facilitate the process of holding elections regularly in every 2 years in the GPLFs.

♦ EC meetings
The Executive Committee members should meet at least once in a month in the GPLF
Office on a date and time specified in advance. Sometimes, depending on the
exigencies special meetings can be held. In case of change in the time and place of
meeting, office bearers will provide prior information to the EC members in the manner
specified in the bye-laws of the GPLF.

♦ GB meetings
General body meeting must be held as frequently as required and any number of times.
A least once in a year all the members must meet. The EC members are responsible to
convene this meeting. It is better to hold the meeting within three months after the
financial year is over.

The meeting must be arranged at a spacious venue where all the members can be
seated. The date at which the meeting will be held should be convenient for all members
to attend. The notice should be sent a week in advance to the date of the meeting so
that the members will not forget.

Page 48 of 198
These kind of specific rules need to be left to the GPLF to formulate.

♦ Establishing systems (accounting, audit, MIS)


o Accounting:
A SHG Financial Management Software will be installed at the blocks to monitor
the financial management functions of the GPLF and SHGs. It will be initially
operated by the BPFT. In the long run when the operations begin to expand,
TRIPTI will facilitate the institutionalisation of data flow from the SHGs and
federations through an independent entrepreneur who will provide the financial
statements to the SHGs and federations based on a pre-determined fee
structure.

o Audit:
The books of accounts of the GPLF will be audited in every three months
internally by the GPLF Auditor who will submit its report before the EC and GB
of the concerned GPLF. At the year end, the GB of the GPLF will appoint a
Chartered Accountant firm to conduct the statutory audit. The audited financial
statement of account will be placed before GB for discussion and approval.

o Annual Report:
Each GPLF will prepare an Annual Report on yearly basis which reflects the
activities undertaken and the financial progress of that federation. The Annual
report will be prepared by the Office Bearers and placed before GB for
discussion and approval.

o Amendment to the bye-laws:


Bye-laws are formulated pertaining to the functions of the institution/organization
at the time of registering it, keeping in mind the vision and mission of the
institution, which in this case could be the GPLF. If necessary these bye-laws
can be amended from time to time. Any amendment to the provisions of the bye-
laws will be approved by the GB of the GPLF for necessary incorporation.

♦ Formation and strengthening of BLFs


After forming GPLFs in at least more than 50% of the GPs of the block, and once the
GPLFs attain a certain level of maturity, the Block Level Federation (BLF) will be
promoted. The BLFs provides solidarity to all the BLFs and SHGs. The BLF will
generate income by collecting membership, share capital, savings, interest margins,
penalties, resource fee and service fee

Page 49 of 198
Ideally one BLF should be formed in every block covering 700 to 800 SHGs. The BPFT
shall ensure that irrespective of who promotes GPLFs; at least 90% of GPLFs that exist
in the block, become members of BLF by paying membership fee. If BLFs promoted by
other agencies already exist, DPMU/BPFT will not promote new BLFs in that block but
work with the existing BLF.

The BLFs will be provided start-up fund for setting up their office. Technical assistance
will be drawn from institutions in and outside the state to strengthen the BLFs. These
technical agencies will basically focus on stabilising the institution building processes
and achieving the following outcomes by the end of fifth year of the project:
o 90% of GPLFs will have membership of the BLF
o Regularity of the meetings with 75% Board attendance in all the BLFs
o All the BLFS will have clearly spelt out Vision, Mission and strategic and
annual financial work plans
o Board members of the BLF are trained on concept of Federation, legal
aspects and financial statements.
o The BLF will identify the products and services to be offered to GPLFs and
consequently to SHGs.
o All the BLFs will have evolved financial and operational policies.
o Software for MIS installed and operational.
o Training plans of SHGs drawn and consolidated regularly.
o BLF offers monitoring, auditing and other technical services on prescribed fee
for the services to GPLF and SHGs.
o BLF able to meet at least 80% of its operational cost from service fee and
other income, by the end of 3 years.

The BLFs will basically play the role of BPFTs and will be responsible to implement the
project at the block level from the fourth year. It is envisaged that towards the end of the
third year and beginning of the fourth year of the project the BPFT functions will be
incubated into the BLFs and the accountability line of BPFT staff along with the Cluster
Coordinators will be transferred to BLFs. These visualized transitions of key functions
will contribute towards the sustainability of the institutions beyond the project life.

♦ Formation and strengthening of Producer Organizations


For the promotion of Livelihoods through intervening on Value Chains the groups of
producers will be organised into Producer Organizations for gaining from the principles
of collectives.

Page 50 of 198
5.1.2.2. Capacity Building measures for SHGs, GPLFs and
others community level functionaries:
 For SHGs:
- Apart from providing regular facilitation support to the SHG during scheduled meetings,
the CRPs and CCs shall conduct group management trainings for SHG members and
office bearers at the village level on group orientation and MIP process..
- The BPFT and CCs along with GPLF members will plan exposure visits to resource
groups within the cluster/district/out side the state.
- Account keeping trainings would be organized for the SHG book-keepers at the
Panchayat level.

The project will strengthen the existing SHGs irrespective of the promoting agency. The
DPMU/BPFT has to ensure that all SHGs irrespective of promoting agency shall access
their entitlements based on their performance track record, and conforming to the
TRIPTI guidelines.

 For GPLFs:
- For strengthening of GPLFs, the CCs along with BPFT staff will help GPLF prepare a
calendar of GPLF meeting dates, place and time, attend and facilitate the monthly
meetings of GPLFs regularly for 3-4 years.
- The EC members of the GPLF will prepare the institution building plan based on the
capacity need assessment of member SHGs. Based on the plan; they will arrange the
structured trainings and exposure trips for the SHG members and the book-keepers. The
entire process will be facilitated by the CCs with support from BPFT staff.
- One model GPLF could be developed in each cluster and use that as a resource
GPLF for demonstrating the best practices.
- Apart from providing regular facilitation support in the scheduled meetings, federation
management trainings will be provided to members of GPLFs office bearers.
-Office bearers training will be organised both for the existing and newly elected Office
Bearers in order to develop their role clarity and building their leadership skill.
-The different Functional Committee members will be trained to carry out their
functions effectively.
- Accounts and audit trainings will be provided to the master bookkeeper and auditor.
- Exposure visits shall be conducted for the GPLFs.

BPFTs and CCs shall ensure that irrespective of promoting agencies, all SHGs that exist
in the GP take membership in GPLF by paying membership fees.

Page 51 of 198
For Others
- Orientation trainings will be organized for PRI members to ensure their pro-active role
in the project.
- PRIs, Anganwadi workers, ASHA, ANMs etc. will be invited to the regular meetings to
educate them on the role of GPLF and TRIPTI.

5.1.3. Sub-component project staff capacity-building - SPMU staff,


DPMU staff, BPFTs
Developing capacity of project staff will focus on capacity building and skill
enhancement of project staff at state, district, block and cluster level to implement the
project effectively. This component will finance induction of staff into the project;
concurrent trainings for enhancing staff skills & knowledge; thematic training programs
are per the need of the project, exposure visits and immersion programs for staff
members to learn from best practices within state, nationally and internationally.

TRIPTI realizes and recognizes that competent, dedicated and motivated human
resource will be another key factor in achieving the outlined project outcomes and
objectives. Based on this realization the strategy for developing capacity of project staff
is articulated as below:
 Customization of Capacity Building activities to the overall framework of TRIPTI
will be a priority.
 Capacity Building for staff will be designed and provided based on roles that the
concerned staff is going play in TRIPTI.
 Capacity Building for staff will be a combination of in-house trainings, exposure
visits & immersion programmes and participation in trainings conducted by
specialized agencies.
 Staff skill & knowledge development will be applied as a motivation building
approach by TRIPTI.

Capacity building of staff at different levels:


The broad categories of different staff capacity building programs planned in this project
have been as given below:

Table – 5.1.2: Who, what and how for Capacity Building of Project Staff
Sl. Name of the Key contents of training Training Methodology
No. Stakeholder
1. PD/ APDs  Trainings on relevant subjects  Thematic training
 Exposure to similar project in  Induction Program

Page 52 of 198
India and outside India  Exposure visits &
immersion programs
2. Functional  The specialists will be sent to  Induction Program
Specialists in different training programmes  Skill development trainings
the SPMU organised by the external  Exposure visits &
agencies (both national and immersion programs
international) for updating their  National and international
knowledge in their functional Workshops/Seminars
areas.
3. DPMU staff o Vision, mission, and values of o Induction Program
TRIPTI o Exposure visits &
o Project objectives, strategies immersion programs
and components. o Skill development trainings
o Financial management and o Workshops
procurement o On job technical
o Participatory monitoring and assistance
learning o Periodic reviews
o Situational Assessment
o MIP planning and livelihoods
o Social inclusion and
development
4. BPFT s and • About the project • Induction Program
CCs • Situational Assessment • Trainings
• Institution building • Exposure visits &
• Micro Investment planning immersion programs
• Livelihood planning
• Social inclusion
• Environmental Safeguards
• Entrepreneurship promotion
• Procurement
• Marketing
• Financial management
• Monitoring

5. Cluster  Poverty concepts  Exposure visits & immersion


Coordinators  About the project programs and trainings
 PRA tools  Field visits
 Situational analysis
 MIP process
 Livelihood planning

Page 53 of 198
 Social inclusion
 Financial management and
Procurement
 Participatory Monitoring
6. Demand  Contents to be prepared taking  The training methodology
driven into consideration the needs of will be based on the
trainings the participants contents and participants
of the training

Capacity Building for the Project Directors/ Additional PDs


Project Director will participate as participant and resource persons in induction training
program for the new staff, as well as participate in exposure visits and immersion
programs in India and internationally. In addition they will go for suitable thematic
training programs on relevant subjects from time to time.

Additional/Asst. Project Directors as they are expected to be more actively involved in


the project supervision, monitoring, technical assistance and strategic planning. TRIPTI
envisages that they will be required to undergo induction program more rigorously by
participating in induction program, getting exposure and immersed in similar project in
India and also internationally, attending thematic trainings on relevant subject conducted
externally. The training programs they will attend will be based on the roles they
supposed to perform in implementing TRIPTI.

Capacity building for SPMU staff:


The Specialists and the Officers in the SPMU will steer the programme in their
respective thematic areas. Therefore they will be given capacity building inputs to
enhance their knowledge and skills in their functional areas. They will be required to
undergo induction program more rigorously by participating in induction program, getting
exposure and immersed in similar project in India and also, attending thematic trainings
on relevant subject conducted externally. They will be sent to different training
programmes organised by the external agencies (both national and international) for
updating their knowledge in their functional areas.

Capacity building for DPMU staff:


As the DPMU staff will have two roles viz., functional role and role for nurturing CCs and
BPFT staff, two kinds of capacity building support has to be provided to the DPMU staff.
For functional roles, the State level specialists will take main responsibility for the
orientation and regular support to the DPMU staff. They will be sponsored to attend
national level training programs (details provided in the table) being organized by
reputed institution. In some instances, tailor-made programs will also be organized. The

Page 54 of 198
Institution Building Specialist in the SPMU will take the initiative of sponsoring them to
such programs.

To enable the DPMU staffs to provide adequate support/supervision to the BPFT/CCs,


PD will ensure that the DPMU staffs are involved in all the district level events in which
the BPFTs/CCs are participating. This will not only be good for team-building; but the
DPMU staff will also realize the emerging project requirements and hence can support
and supervise effectively.

In addition, periodic review/learning meetings with all the DPMU staffs in which they are
able to share their experiences about the project and update others about the work done
by them. This can also be a forum in which successful initiatives can be brought to the
notice of everyone for possible replication. This will enhance cross learning across
districts.

Capacity building of BPFTs:


In addition to compulsory attending induction program and immersions, BPFTs will have
to go through many rounds of capacity building sessions in the first two years of their
association with the project. It is very important to plan these in such a way that before
moving to the next logical step in their work, they develop sufficient expertise in that
subject matter. Apart from thematic trainings, the BPFTs will be taken for exposure visits
to successful projects within and outside the state. The Institution Building Specialist in
the SPMU will take the initiative of sponsoring them to such programs.

Selection and training of Cluster Coordinators:


Cluster Coordinators will be the cutting-edge staff of the project; therefore their selection,
orientation & induction, exposure and immersion will be very critical for making TRIPTI
attain its outcome. They are the ones who will be initially spear heading the community
level processes and the way they will guide the SHG members, office bearers, leaders
and CRPs will be very important for project reaching its objectives. Therefore, TRIPTI
has decided to adopt an approach where a rigorous learning and development process
will be put in place. For Cluster Coordinators the following steps will taken for preparing
them for project implementation, developing their skills and inducing an attitude or mind-
set to work for the poor and vulnerable.

After initial screening and selection of the CCs by an external agency, they will:
- Undergo one month immersion program to develop an in depth understanding
of the poor and their coping strategies by staying in location away from their
own residential block.

Page 55 of 198
- After completion of the immersion program, they will undergo a written test to
depict their understanding on poverty and strategies to address that. An
objective assessment tool will be put on place for this. It will be the
responsibility of the BPFT to put the objective test in place
- This will be followed by group discussion with their peers for generating more
clarity on issues they witnessed in the field and also, for inter learning.
- After that the CCs will undergo conceptual training in different phases. The
broad components of training have been provided in the Table 5.1.2.

Along with the above mentioned trainings, Stakeholders’ workshop will be organized
annually for sharing of experiences, discussing the emerging issues and planning the
future strategy for the project. Review meetings will be organized annually at district
and state level to appraise the progress of work, reflect on the issues and discuss on the
future course of action for the project. TRIPTI staff will also be sent to attend national
and international trainings, workshops and seminars for updating their knowledge
and enhancing their skill.

Capacity building plan for project staff:


The SPD, APD and SPMU staff will undergo 3 days immersion programme in similar
projects within and outside India. Similarly, The DPMU and BPFT staff will get immersed
for one week in similar projects within India.

The SPMU will be primarily responsible for conducting the induction programme for all
the staffs joining at different levels in the project. There will be a core team at the SPMU
level who will be primarily responsible to conduct the induction trainings. A three day
module will be prepared by the training team based on the project principles, strategies,
components, outcomes etc and the staffs will be trained in several batches on the same.

Once the project gets grounded, institution development strategy for the project will be
prepared. An annual strategy plan will also be developed for project staff describing the
system envisaged to develop capacity of trainers, institutionalisation of capacity building
events and mechanisms to ensure quality of these events.

An annual calendar of capacity building events will be prepared each year elaborating on
the classroom trainings, exposure visits, workshops, handholding etc planned for all
categories of members, office-bearers and functionaries for that particular year.

Institutional arrangements for institution strengthening and development:


The SPMU (State Project Monitoring Unit) shall play very significant role in developing
the required training infrastructure, providing technical inputs to districts, coordinating
and ensuring on-time effective implementation of all project activities. The Specialist,

Page 56 of 198
Institution Building in the SPMU will overall responsible for the coordination and
monitoring of all the capacity building and institution strengthening activities of the
project. S/he will function in collaboration with the Capacity Building Officer in the SPMU,
Project Executive (Institution Building and Tribal Development) and staff of Panchayat
federations to ensure effective implementation of the capacity building programmes. She
will also be responsible for ascertaining that the project staffs are sent to different
training programmes for updating their knowledge and skills in their respective functional
areas.

Table –5.1.3: Project functionaries responsible for institution building:

Level Name of Position


SPMU  Institution Building Specialist
 Capacity Building Officer
BPFT  Project Executive (Institution Building and Tribal
Development)

Table –5.1.4: Grassroots functionaries responsible for institution building:

Level Name of Position and function


SHG  CRP & CC – for handholding, system setting & training
 BPFT to provide support & training to CRP & CC
GP Federations  CC – for regular facilitation
 BPFT – provide support to CC and help in system
setting in GP federation

Page 57 of 198
5.2. Community Investment Fund

Under the aegis of Mission Shakti formation of SHGs and women empowerment has
reached a movement stage in Orissa. The SHGs provide only the basic financial
services such as savings and individual lending to its members. In most parts of the
state the SHG – Bank Linkage programme has emerged as a mainstream model for
delivering micro finance services. TRIPTI recognises the necessity of providing efficient
microfinance services for the poor and low-income households and their micro-
enterprise as a poverty reduction and development strategy to ensure sustainable
sources of income to the rural families. Improved access to and efficient provision of
savings, credit and insurance facilities, in particular, can enable poor persons to regulate
consumption, improve risk management, build assets, develop micro enterprises,
enhance their earning capacity and enjoy an improved quality of life. Microfinance
services can also contribute to the improvement of resource allocation, promotion of
markets and adoption of better technology, thereby helping to promote economic growth
and development.

The project recognizes that that each individual has separate needs and distinct
capabilities that have to be harnessed in proper manner in order to come out of poverty.
A community-owned and managed loan fund will help members meet part of their credit
needs, gain experience in fund management and demonstrate creditworthiness that will
help leverage funds from other sources, and develop new financial products that are
suited to their unique needs. The Community Investment Fund will be an infusion from
TRIPTI to the GPLF and is expected to revolve as members take and repay loans from
this fund. The SHG may provide business loan, agricultural loan, loans to secure
housing, education and other needs as per the plan prepared by the members.

• Under micro investment plan based intervention strategy, CIF will be a grant
from Project to GPLF and loan from GPLF to SHG for implementing micro plans of
SHGs.
• The Community Investment Fund is essentially designed to reach the poor
only. The SHG members will prioritize the household MIPs to be financed from CIF
based on the socio-economic profile and need assessment of the member. It will be
a focus of the project so that the poor and marginalized are given preference in
accessing loans from the CIF sub-component.
• In some instances a contiguous group of GPLFs may implement activities
such as joint marketing interventions, social development activities and physical
infrastructure for enhancing Livelihood Value Chain created for the benefit of more
than one Gram Panchayat.

Page 58 of 198
The Community Investment Fund - CIF will act as a catalyst to help poor households
meet their demand for improved access to credit for investment needs. The project
would support access to funds through the Community Investment Fund (CIF) for those
activities that cannot be funded through existing sources in the short run. The project
recognizes that each individual has separate needs and distinct capabilities that have to
be harnessed in proper manner in order to come out of poverty. It is known fact that the
poor depend on multiple livelihood sources and may access credit from the SHG for
various purposes. The SHG members may take loan for individual based livelihoods
which may be further congregated at higher levels for collective benefits.

5.2.1. Objectives

The purpose of the Community Investment Fund will be to:


• Act as a catalytic fund for addressing livelihood and household needs of members of
Self-Help Groups
• To demonstrate credit worthiness and investment worthiness of poor SHG members
• Capacity Building and initial support for SHG Federations
• Financial Product development suited to rural poor
o Broaden and deepen the range of financial services
o Test market-led innovative products and delivery systems to serve the poor

5.2.2. Financing Micro Investment Plans

Under the Community Investment Fund funding provision will be available for SHG Micro
Investment Plan that includes finances required for household needs and livelihoods
activities for income enhancement. This fund will be disbursed to the GP and Block
Federation15 as a grant for on-lending to SHGs based on a detailed Micro Investment
Plan. The Micro Investment Plan (MIP) will include Investment plans prepared by
individual households and their consolidation at SHG level. It will include plans for
investment on asset creation for income generation and household need investments.
The process of MIP preparation will be an integral part of the financial management
process of the SHG. Since MIP is envisaged as a comprehensive tool to improve the
levels of income and quality of life of members of SHGs and overall functioning of Self
Help Groups and their federations, the members will be sensitized about the process
and facilitated properly to prepare the Investment Plan.

The Micro Investment Plan will be a critical element in the poverty elimination strategy
adopted by TRIPTI and will be prepared in a sequential manner. The preparation of MIP
with the members of SHGs is a step by step process that entails involvement of the SHG
15
It is assumed that it will take 2-3 years from Block Level Federations to evolve.

Page 59 of 198
members and joint analysis of the planned investment plans. Members do self
assessment of their SHG based on regularity in savings and internal lending of funds,
book keeping, and regular meetings before further planning. As such it is an active
microfinance process that seeks to seamlessly integrate social mobilization / institution
building processes with that of livelihood enhancement at individual or community levels.

5.2.2.1. What is MIP?

The Micro Investment Plan (MIP) is an Investment plan prepared by individual


households and their consolidation at SHG level. It will include plans for investment
on asset creation for income generation and household need investments. Since MIP
is envisaged as a comprehensive tool to improve the levels of income and quality of
life of members of SHGs and overall functioning of Self Help Groups and their
federations, the members will be sensitized about the process and facilitated
properly to prepare the Investment Plan.

Indicative Components of a Micro Investment Plan:


♦ SHG Details: This gives details about the status and financial situation of the SHG
which indicates about ability of the SHG to handle funds efficiently. Since MIP is
envisaged as a comprehensive tool to bring about change in the quality of life of
members of SHGs and overall functioning of Self Help Groups and their federations,
the members will be sensitized about the process.
♦ Members’ socio economic details: The socio–economic information will include
critical factors such as income, assets and liabilities, needs and problems, number of
earners and dependants, single woman, physical/mental disability amongst the
members in their family if any, health problems, livelihoods and opportunities, skills,
saving capacity, social backwardness, literacy etc.
♦ Income and expenditure statement of members: In this stage the group members
identify and quantify the income and expenditure status of each member themselves
and discuss the economic vulnerability. The rankings given by them are without
dispute and bias and bear stamp of unanimity.
♦ Listing of Household Investment Plans (for economic, social and household
needs): The Self Help Groups will then be facilitated to prepare a list of all members
along with their loan requests indicating both activity/purpose and loan amount. The
group would appraise each loan request and determine the loan terms like amount of
loan, installment amount, repayment period, etc. Here, the group would take into
consideration the potential for chosen activity in the local area and the competence
of the members to carry out the same gainfully.
♦ Prioritization of Members - The SHG at the outset ranks its members according to
their wealth. The members so listed should be placed in order of priority (to receive

Page 60 of 198
loan facilities) based on their socio-economic vulnerability. In other words, SHGs
must be facilitated/sensitized to give preference to the poorest/BPL, particularly SC
and ST communities, over other members.
♦ Financing and Rotation Plan – The sources of funding MIP are SHG’s own funds,
bank finance and CIF. Member borrows from its SHG for implementing Household
Investment Plan and repays the loan amount in full with agreed terms and
conditions. The amount of loan received as CIF will be first available to the most
needy and vulnerable. On repayment and accumulation of group fund the other
ranked members will avail funds from the group.
♦ Terms of Partnership - The micro planning process should clearly bring out the
terms of partnership between members and their SHG, between SHGs and their
GPLF and between GPLF and DPMU on strengthening the relationship and
implementation of the plan. Though, technically, the relationship between all these
parties is lender and borrower, the terms of agreement will also include the
ingredients of healthy IB norms.

5.2.2.2. How MIP will be prepared?

A. Training for MIP Preparation

Livelihood planning with communities is a critical step for the preparation of Micro-
investment plan and it needs careful handling with the community. All the personnel
involved in the preparation of the MIP will be properly oriented and given practical
exposure to come up with feasible micro-investment plans through involvement of
the concerned households and group members. The GP Federation will initiate the
process of MIP preparation with the support of BPFT, CRPs and Cluster
Coordinators facilitating the members of SHGs.

B. Preparation of MIP with SHG members and village members


Once the members have a broad perspective on livelihoods after the initial
orientation, more focused attention will be given to assist them to plan their
livelihoods. This process will be a series of steps or sessions, which will begin after
the initial three to five months and continue until the time each member has prepared
a credible, medium term production and credit plan. It will be very essential on the
part of the CRP and Cluster Co-ordinators to generate a positive vision among the
SHG members for sustaining livelihoods.

Once a vision of good life is generated and the members also develop a motivation
to achieve that vision, a more concrete planning will be taken up based on the
current realities. This plan will be primarily prepared by the senior members of a

Page 61 of 198
particular household sitting together (mainly the husband and the wife) with the
facilitation of the GPLF members, CRPs, CCs and BPFT. The family will
systematically examine their current resources, analyze whether these resources
have been utilized to their best, and develop a medium term plan (say two to three
years) to set up a sustainable livelihood base. Once the planning is done, each
member presents the plan in the SHG, and the members provide feedback and
further fine-tune the plan. Throughout all these processes the Cluster Coordinator
and CRP will be required to provide inputs as and when required. The plan will
include all the details such as the plan for backward and forward linkages, human
resources and finance.

C. Consolidation of MIPs and Resource Mobilization

GPLFs will facilitate all SHGs having credit-worthy MIPs to submit loan applications
with local banks under direct bank linkage. In parallel, GPLFs will also consolidate
the creditworthy SHG MIPs and submit a grant request to DPMU for financing of
these MIPs. Clarify that, subject to prudential borrowing limits and willingness of
banks to finance, priority will be to first link SHGs with banks before providing loans
from the CIF.

The investment plans prepared by individual households will be consolidated at the


SHG level as the SHG Investment Plan. In the initial stages members will seek loan
to meet household needs and investment in livelihood interventions. With gradual
project facilitation and emergence of sector opportunities credit will be absorbed for
key livelihood interventions for asset creation, value addition and investment for
trade and craft, etc. The project will facilitate the preparation of Household level
Investment plans of SHG Members in consultation with family members.

5.2.2.3. MIP Appraisal

GPLF will appraise the micro plans prepared by the SHGs on the basis of
prioritization based on BPL status of SHG members. Such ranking is based on the
2002 BPL list, and ranking system that will be developed during the first year of
project implementation. The process of prioritization will be monitored as part of the
CIF 1 and CIF 2 graduation criteria.

In addition GPLF will be supported in developing systems of prioritization that include


the following considerations:

Status of SHG:

Page 62 of 198
Assessment of SHG based on regularity of savings and internal lending of funds,
book keeping, regular meetings etc.

Financial Viability: Financial viability is concerned about the return to the immediate
beneficiaries. Objective of appraisal of this aspect is to assess whether a proposal is
financially viable. The proposal would be checked for financial viability related to
economic activities.

Commercial Aspects: The commercial aspects of a micro plan look into the
mechanism for forward & backward linkages. It examines the arrangement for
procurement of various inputs and services besides the arrangement for marketing of
outputs produced by the beneficiaries.

Need based applications (like immediate hospital or education fees) will be


afforded priority.
GPLFs will be supported by the project in developing system of prioritization based
on agreement with the general body that is transparent and verifiable.

5.2.2.4. CIF Cycle

Househol Prioritizati
SHG Micro
d on of
Investmen
Investme Members
t Plan
nt Plan for Loan

SHG
Membe
r
Loan
CIF
CIF Cycle Applica
Fund –
tion to
GPLF to
GPLF
SHG
CIF
Fund -
SPMU
to GPLF

Submission of Appraisal
Consolidate Request for CIF of SHG
d MIPs send Grant (GPLF to MIP
to SPMU DPMU) (by GPLF)

CIF Trance Releases

Page 63 of 198
The micro planning model envisages upfront release of certain portion of the CIF
entitlement to GPLF based on achievement of certain milestones. Further the CIF
will be released to the GPLF in two tranches or instalments. It is perceived that in the
initial 3-6 months Micro planning process will be carried out with the eligible SHGs
which will be consolidated and presented for release of (first tranche) from CIF I. In
the subsequent period, the GPLF will carry out capacity and institution building steps
with the remaining SHGs till they become eligible and prepare the Micro Investment
Plans which will then be consolidated for release (tranche two) of CIF II. It is
imperative to note here that there will be a time gap of 6-9 months between CIF I and
CIF II and in the interim the GPLF will facilitate the utilization of the CIF I and
inclusion of the poor and left-out into SHGs.

Table 5.2

Criteria for Release of CIF to GPLF


Community  1st rating of GPLF is graded at least good
Investment Fund I -  50% of total BPL households of the GP are members of SHGs
CIF I in the GPLF
 At least 40% of member SHGs have MIPs ready
 At least 50% of the total SHG member households who have
submitted their MIPs should be BPL households
Community  UC certified by Utilization Verification Committee
Investment Fund II  2nd rating of GPLF is graded satisfactory
-CIF II  75% of total BPL households of the GP are members of SHGs
in the GPLF
 MIP need to be prepared for eligible SHGs claiming CIF II
 At least 50% of SHGs accessed funds from banks / FI against
MIPs
 At least 50% of SHG members have attained savings and
insurance goals set in 1st MIP
 At least 50% of EPVGs have obtained loans as per goals set in
1st MIP

Page 64 of 198
5.2.3. Financial Products for Rural Poor:
Depending on demand and perception of the members various financial products will be
developed to meet the diverse needs of the SHG members. There could be products for
housing, agriculture purposes, working capital for business, etc. Each of the product will
be based on a model that would ensure that the loan is repaid on time and that will also
contribute to the lives of the poor. These financial products will be developed jointly with
SHG members and Federations and introduced as per the demand in each Federation.

From Mono to Multi-product Financial Services (Indicative)

Mono- Credit and Savings Full Service


product

Savings:
Credit: Credit: Savings: Current
Current Credit:
Group Group Accounts
Accounts Group
Individual Individual Programmed
Programmed Individual
Housing Housing Savings
Savings Housing
Small Small Fixed Deposits
Fixed Small
Business Business Insurance:
Deposits Business
Agriculture Agriculture Life
Agriculture
Vehicle Health
Vehicle
Fixed Asset Property
Fixed Asset
Productive
Asset

5.2.4. Leveraging Bank Funds

TRIPTI project will facilitate the SHGs and GPLFs to leverage funds from banks and
other external sources. The MIPs will be funded both by project funds and funds from
external sources. Priority will be given to leveraging external funds. The CIF would be
ideally used as bridging finance by the GPLFs.

Page 65 of 198
5.3. Pro-poor Inclusion

Pro-poor Inclusion
The pro-poor inclusion fund (PPIF), which is part of community investment (roughly
10%), will focus on activities aimed at identifying the extreme poor and vulnerable
groups (EPVG), and enhancing their productive capacity.

5.3.1. Objectives
Fundamentally, the focuses of the social inclusion mechanisms in the TRIPTI project are
on:
1. Enabling the poor and marginalised to participate as equals in community based
organization at the village level
2. Ensuring the broader community both recognize and support these objectives
and
3. Offering needs based support to groups is recognized as facing specific
disadvantages in terms of fulfilling their social and productive potentials.

5.3.2. Two fold approach to inclusion

A two-fold approach underpins the TRPITI strategy to ensure social inclusion as


part of the project design and process. This two-fold approach reflect the reality of
rural poverty in Orissa; one is wide spread poverty and the second is pockets of extreme
deprivation and vulnerability. Hence, the project adopts two distinct definitions for these
two aspects of poverty and strategies have been formulated accordingly:

The Left out Poor are defined as those people on the BPL list that are not yet a part of
the SHG movement in the state. The 2002 BPL list has been adapted as the standard
for identifying the bulk of the rural poor for two reasons: to strengthen the potential of the
government ‘gold standard’ of poverty identification and to ensure harmonization with the
proposed NRPEP. Once the left-out BPL families are identified, the CCs and CRPs will
organise hamlet level meetings to organise the women into groups.

Inclusion of the left out poor will be based on the 2002 BPL listings. There will be a
verification process on the 2002 list by the project staff, with a view to ensuring that the
poorest are included on that list and that the rankings of households in terms of their
BPL scores are robust. The verification would be done largely by the project community
coordinators, and be based on the criteria included in the 2002 BPL methodology. This
process would not only ensure that the BPL list for project purposes is as complete as
possible, but also be an important step in identifying the extremely poor and vulnerable
households who would be covered by the Inclusion Plan for the specially vulnerable.

Page 66 of 198
Extreme Poor and Vulnerable Groups include all those people who suffer from specific
and tangible impediments to participation in social and economic activities. These
groups will include differently-abled persons, destitute and widow headed households.
On the basis of human development indicators in the state, it is expected that SCs and
STs will form a large portion of this group. However, given the complex and contextually
embedded nature of extreme poverty, vulnerability and exclusion, emphasis will be given
to empowering the community to determine those who are considered to fall in this
group.

The EPVGs are considered to be a sub-section of the Left out poor and therefore all
mechanism set out above will apply to these groups and will be monitored. However,
efforts to include this sub-section of the rural poor will require additional processes and
finances to ensure that they are able to participate along side the bulk of the poor and
ultimately the broader community.

The social inclusion aspects of TRIPTI are integral to the Tribal Development Plan for
the project.

5.3.3. Activities for including the Left out Poor

The main instrument for ensuring the inclusion of the left out poor will be the criteria for
graduation of federation, or the conditions established for the release of community
investment funds. In the design of TRIPTI it has been recognized that inclusion targets
of this level will take time to achieve, and therefore the process of inclusion has been
graduated across the two tranches of the CIF. In addition, so as to ensure against mere
tokenism, an additional mechanism that aims to track the flow of benefits to BPL has
been included in this design.

Establishing inclusion indicators in the project cycle is one means to ensure that poorer
groups are benefited in the project. However, significant capacity building and
awareness building process are necessary to ensure that federations and their members
support the process of inclusion. As such, the objective of including the left out poor
cuts across the project cycle as indicated in table 5.3.1

Page 67 of 198
Table 5.3.1 – Key Mechanisms to include the left out poor

Project component Inclusion Mechanisms


Start up Activities Situation Analysis of BPL HH/Group membership
Targets for inclusion established
Capacity Building Training/Lessons learning on including the poorest sections
of society – including conflict resolution, mediation etc
Institution Building Training for new groups/members from BPL category
Community  1st rating of GPLF is graded at least satisfactory
Investment Fund I  50% of total BPL households of the GP are members of
SHGs in the GPLF
 At least 40% of member SHGs have MIPs ready
 At least 50% of the total SHG member households who
have submitted their MIPs should be BPL households
Community  UC certified by PMC
Investment Fund II  2nd rating of GPLF is graded satisfactory
 75% of total BPL households of the GP are members of
SHGs in the GPLF
 MIP need to be prepared for eligible SHGs claiming CIF
II
♦ At least 50% of SHGs accessed funds from banks / FI
against MIPs
Awareness Building ♦ Popular dissemination of project objectives and process
and Communication through COM and other IEC materials
♦ BPL list is made public (displayed in prominent places)
♦ Graduation criteria are publicly verified in GPLF general
body meeting
Monitoring and ♦ MIS system captures progress of inclusion
Learning ♦ Thematic studies on inclusion of left out poor
♦ Cross project learning activities

5.3.3.1. Identification of EPVGs


During project preparation it had been decided not to adopt objective indicators of
poverty or vulnerability along the lines of the BPL scoring system. Rather, community
based identification of the EPVGs will be adopted as a means to identify the target
population. The process of selection will be initiated at the village level through
participatory meetings led by CRPs, federation Executive Committee members,
supported by CCs. An aggregate list of proposed beneficiaries will be consolidated and
discussed at the GP level.

Page 68 of 198
The proposed list will be displayed in the Panchayat office, GPLF office and other public
places for information of community. If there is any objection to the proposed list, anyone
from the community can approach the GPLF for rectification of the same. After 10 days,
the GPLF will organise a village meeting and discuss the discrepancy in the same. The
list will be finalised in the same meeting. If there is no objection to the list, within 10
days, it will get automatically finalised.

The finalised list will again be displayed in the Panchayat office, GPLF office and other
public places for information of community. It will also be available with the CRPs and
office bearers of one of the SHGs in the village. This will help in ensuring transparency in
the selection process.

Guidelines and training materials will be developed to inform the criteria and process of
selection. The CRPs, federation leaders and CCs will be especially trained on the
participatory identification process. The defining principles to be applied in this process
of identification include the following:

• Those people whose current livelihoods is unable to support themselves as they


are prone to regular ‘shocks’
• Those people who face significant economic or social and specific barriers for
improving their livelihoods options
• Those people who are ‘locked’ in low livelihoods options and well-being
outcomes due to their limited skill/asset base or high level of dependence e.g.
problems faced by female headed HHs

Broadly, the EPVG will include the following persons:


 Widows
 Female headed households
 Differently-abled persons
 Destitute
 Tribals
 People vulnerable to seasonal shocks

5.3.3.2. Activities to support EPVGs


Preparation of vulnerability analysis matrix:
After finalization of the list of EPVG, a vulnerability analysis matrix will be used to
assess the status and the felt need of identified persons. This will be developed through
specific planning exercises, led by the CRPs and CCs. The purpose of this matrix would
be to help the community and individuals assess the sources of vulnerability or poverty
of the vulnerable households. This would help to:

Page 69 of 198
• Establish a broader understanding of inclusion of individuals in this list
• Facilitate the process of needs identification
• Revise the vulnerability list on a periodic basis

A simple matrix could include the following headings:


Table-5.3.2
Beneficiary Livelihood Risks/ Social Asset/Skill Livelihood Other
Activities Limitation Status base Implications relevant
issues
#1 i.e. no land, i.e. i.e. Minority i.e. number
land of poor seasonality, group, poor of
quality, reliance lack of housing, dependents,
on animals diversification migrants, lack of male
… other social earner,
issues like debts…
divorce,
dowry, and
disability in
family…

*******The above Performa will be field tested before finalization and implementation.

5.3.3.3. Release of Pro-poor Inclusion Fund:


The fund will provide tailored assistance to target groups to be managed by the
federations and SHGs to the extent possible. This approach has been deemed
necessary to ensure that the operation of the PPIF acts to strengthen people’s
institutions and avoid the creation of any incentives to act outside these institutions.
Hence, the PPIF is designed to finance plans that are submitted by the GPLF. This fund
will finance two types of community investment:

• Bridging finance up to Rs. 3,000 for the inclusion of identified beneficiaries into
existing SHGs. The project will support their contribution to the SHG so as to
make them at par with other members. It also includes providing seed money to
new groups of the EPVG. These funds will finance inclusion plans prepared by
the GPLFs and will be managed at that level.
• Innovative activities to enhance the productive potential of the extreme poor and
vulnerable groups. At least part of this fund will be managed by the GPLF. Each
GPLF will be provided a maximum amount of Rs. 50,000 to take up the pro-poor
inclusion activities.

Page 70 of 198
The PPIF will finance plans prepared by the GPLF and will also cover additional forms of
assistance deemed necessary by the community, including bridging finance against
short term repayment relief for defaulters.

Table 5.3.3

Category of the Support under Pro-poor Support under Support


Extreme Poor Inclusion Fund Pro-Poor under CIF
and Vulnerable Innovations Fund
Groups
Not formed into Add to existing SHG by First priority
groups providing bridging finance for
in the form of deposit to Needs based assistance
SHG under the pro-poor provision of: under the
inclusion fund • Disability CIF
Or aids
Form new groups of the • Community
EPVG and provide seed managed
capital to group facilities
Already in In cases where unable to First priority
groups pay contribution, provide for
bridging funds, paid to assistance
group under the
CIF

Managed By BPFT/GPLF GPLF


On basis of plans submitted by GPLF
Supported By BPFT SPMU BPFT

5.3.3.4. Innovative Projects to enhance the Productive


Capacities of the EPVGs

At least 50% of the PPIF will finance innovative projects to enhance the productive
capacities of the EPVG (including the differently abled) based on the needs assessment
– or vulnerability analysis. This component of the PPIF will be developed over the life of
the project, and will focus on small scale/targeted pilots that feed learning to the project
more generally.

Indicative activities to be included under this sub-component will include:

Page 71 of 198
Assistance to Differently-abled persons
The TRIPTI project aims to focus on the provision of needs based assistance to
differently-abled persons residing in the project area and to ensure that these
persons received assistance from various government schemes and agencies to
help them overcome their physical or mental constraints. The project intends to
provide aids and appliances to the differently-abled persons who cannot receive
assistance from other government schemes. These persons will be identified by
the GPLF with support from CRPs and CCs. Once the list is finalized, it will be
ratified in the GPLF General Body meeting. They will be given skill enhancement
trainings for ensuring increase in their income. The project will provide technical
assistance to these persons as and when required by them.
.
Community Managed Social Services
Widows, especially elderly widows, and female headed households, are among
the poorest of the poor in rural India. Without the support of male family
members, women face the dual burden of earning and child care and supporting
other family members. Due to the imperatives of the former, the development of
children often suffers. To overcome these disadvantages, community managed
crèche facilities or care for the elderly could be one important activity that would
target the needs of the EPVG and result in improving social outcomes for the
wider community.

Pockets of Exclusion
Studies of governance and services delivery in rural India highlight the
disadvantages faced by resident of small habitations or hamlets at the periphery
of GPs that are dominated by larger main villagers. In such cases, exclusion (on
the basis of caste, political or a history of personal feud or conflict) takes on a
collective character. One innovative project that is envisaged is target training or
institutional building that aims to overcome the voicelessness of spatially
excluded groups.

Page 72 of 198
5.3.3.5. Additional Activities to promote inclusion of the rural
poor

These innovative pilots will be demand based – arising from the inclusion plans and
analysis process at the GPLF level. To the extent possible, these activities will be
managed by the GPLF themselves, calling on the services of support agencies or
service providers. The BPFT and DPMU (supported by the SPMU) will play a facilitating
role in this process.

The development of this component will also be supported by Thematic Studies and
Innovative Pilots (part of the Monitoring and Learning Fund) that will be managed by
the SPMU. This will also provide support to need based initiatives to be developed
following the launch of the project. These activities will focus on the generation of
learning and practical insights around the key theme of improving social outcomes at the
village level

One major area of focus under this component of the project is to enhance the delivery
of public services at the GP level and, in particular, promote greater inclusion of the
poor and marginalized groups in key social safety net programs of the
government.

A vast range of government programs aims to ensure social and economic support to
the poor in rural Orissa, including NREGA, as well as education and ICDS programs.
However, the delivery of these initiatives is often limited by a lack of awareness or
limited responsiveness of front-line agencies to the needs of the poor in the state.
Ensuring the efficient and equitable delivery of these initiatives is essential to
overcoming the multiple-dimensions of rural poverty in Orissa. Ensuring access to credit
and improved livelihood options is one important step towards combating poverty.
However, the effectiveness of this approach is contingent on improving access to health,
education and social safety-net provisions of the government

The Government of Orissa recognizes the potential of the self-help group movement in
the state to support improvement in the performance of these programs and set out clear
objectives to involve SHGs in the delivery of Public Distribution System and Mid-Day
Meals.

Though the TRIPTI project, there is immense potential to leverage improved social
outcomes by promoting demand based improve awareness, and thus demand, for
improved service provision and accountability of service providers. One means to

Page 73 of 198
achieve this is to ensure that the SHGs have the capacity to take on the delivery of the
MDM in alignment with the policies of the Government of Orissa.

The emphasis of this component of the project will be on raising awareness among SHG
members regarding their entitlement under various government schemes and regarding
the responsibilities of the front line agencies. By fostering demand based
accountability it is expected that the project will contribute to a tangible improvement in
the performance of public services.

As part of the training and institution building process (as part of IB) the project will
disseminate information aimed at raising the awareness of various government schemes
and, through MIS, the performance, participation and uptake under the key programmes
will be monitored.

Additional activities will be undertaken, as part of the thematic learning component of the
project that promote innovative pilots on a small scale, the results and learning from
which will be fed into the broader project. This component will fund activities, including
those of partner agencies that aim to improve the performance of public services. It is
expected that these innovative pilots and studies will develop new products or
approaches that can be taken up by GPLF as part of the PPIF.

2.5.3.6 Pro-Poor Inclusion Plan and Fund Flow Mechanism

The PPIF will be released on a demand basis, and will fund Inclusion Plans that are
prepared by the GPLF. The Inclusion Plans will be prepared with the support of the
BLFT and service providing agencies. The plans will have two components a) bridging
finance for the EPVGs and b) Innovative projects to increase the productive capacities
of EPVGs (including supply of disability aid, support for community managed services
etc). Each GP will be given an indicative allocation (maximum of Rs 3,000 per identified
EPVG and Rs 50,000 per GPLF for Innovative Projects)

All PPIF funds (excluding those for technical support agencies) will be managed by the
GPLF and transferred to the SHGs. No direct financing will be given to individuals. In the
case of disability aids and the like, benefits for individuals will be given in the form of
goods and services.

The PPIF will be transferred to the GPLF in two tranches, along with the CIF1 and CIF2.
In order to access these funds, the GPLF will be required to submit an Inclusion Sub-
Plan along with the MIPs. The CCs will help the GPLF to prepare the Inclusion plan

Page 74 of 198
conforming to the project guidelines. The second tranche will be released only after the
GPLF submit the UC of the money provided in the first tranche.

In most cases it is expected that bridging finance will be the focus on the first Inclusion
Plan and that Innovative project will be the focus of the second. The format for the plans
will be standard, along the lines of the proforma outline below, giving the option for
demand based financing of each form of assistance.

The Social Services Committee (and the Tribal Committee where applicable) will play a
major role in planning and monitoring the delivery of Innovative Projects, as well as
overseeing Inclusion Planning for the EPVG in group formation. This (these) committees
will be co-signatories on the plans, along with the GPLF.

Pro-Poor Inclusion Fund Plan will contain the following components:


• Details of EPVG selection, dissemination/disclosure
• Summary vulnerability analysis matrix
• SHG status of EPVG
• Bridging finance plan and costing
• Where applicable: signatures of SHG groups leaders agreeing to new member
and agreement for utilization of bridging finance
• Innovative Project Plan, technical and management framework and costing.
• Linkages to the TDP

This format and the PPIF plan mechanism will be developed and finalised in during the
first six months following project launch, and will be communicated in a specific COM
booklet.

5.3.4. Tribal Development Plan (TDP)

5.3.4.1. Key Elements of the Tribal Inclusion and Development


Strategy

The issues of tribal development – focusing on the poorest and socially excluded
sections among the tribal population – are integral to the project design and no separate
components or plan has been developed in the project.. However, the strategy set out
below is considered necessary so as to ensure that tribals are not left out of the
community driven process.

Given the wide variation in the tribal social and economic scenario across the selected
districts in coastal Orissa – with block level populations ranging from 0.3%- to more than

Page 75 of 198
50% in a few cases - TIDS has been designed in three modes reflecting the differing
needs for tribal integration in project process.

Implementation Strategies for Tribal Development – Key safeguard measures as


part of Project Cycle
Table No. 5.3.4 Implementation Strategy as per Tribal Population Range

GP level tribal population


Activity 0-10% 11-30% 30%+
Start up activity • Tribal leaders included in Tribal Situation Analysis
initial meeting
• Tribal Inclusion Analysis as
part of Situation Analysis
IEC campaign Specific tribal IEC campaign to be developed
Institution At least one CC received training in At least one CC from tribal community
formation tribal development
Mobilization (Left out poor criteria applied to tribals)
 50% of total BPL households of the GP are members of SHGs in the
GPLF
 75% of total BPL households of the GP are members of SHGs in the
GPLF
Representation Priority tribals Sub-committee of Tribal hold at least 4 posts on 11
as part of tribal as part of member executive
Social inclusion GPLF
fund
Provision for informal habitation level groups to support minority/weaker
section inclusion
At least one tribal member on At least one tribal member of each
Participatory Monitoring Committee five member GPLF sub-committee
(Participatory Monitoring,
Procurement, Utilisation Verification,
Finance etc)
GPLF Appraisal of disbursement to tribal groups
strengthening
MIP and • District level workshops on tribal economic activities
consolidation • Appraisal of tribal MIPs
Livelihood Fund Inclusion plan for tribal At least one sub-project aimed at tribal
(Block level) development as part of livelihood livelihoods
assessment Where population 30%
Skill training for 8% of job for rural tribal youth
rural youth (15% for SC)
Innovation Fund At least 10% of fund to be used for activities that support tribal livelihoods

Page 76 of 198
Institutional Project objectives to be applied to tribal groups
Sustainability Project aim to promote inclusion of the poorest (BPL) groups in sustainable
federations.

5.3.4.2. Description of the Tribal Development Strategy


Institutional Strengthening & Development

The project will support and develop inclusive, self-reliant, self-managed and sustainable
SHGs and their GP level Federations (GPLF) for livelihoods improvement.
(a) SHGs: As part of the mobilization process, Tribal communities will be provided
information, rules, and non-negotiables, through appropriate channels/medium
about the program. Further, Tribal communities will be encouraged to be part of
the SHGs and will receive additional training on key issues including: concept of
saving, book keeping, and meeting. In areas where there are concentrated tribal
populations, SHGs of tribal communities will be promoted and nurtured. In areas
of mixed populations, efforts will be made to mobilize tribal communities along
with the other left out poor in the village into SHGs. The Cluster Coordinators and
Community Resource Persons facilitating this process will have and or will be
capacitated with the requisite skills and expertise to work with Tribal
communities.

(b) GPLF: In the formation of federations, three different modalities for tribal
representation will be employed. In all cases, 50% of tribals are to be mobilized
into SHG as a condition for the release of the CIF II.
• In GP where tribal population less that 10%

Tribal groups to be included as part of the Social Inclusion Fund, and will
be prioritized for receiving ‘seed grants’. As per the guidelines for social
inclusion component, beneficiaries will be integrated into the GPLF as a
condition for the release of CIF II.
• In GPs where tribal population 10-30%

Tribal sub-committee to be formed as part of the GPLF


• In GPs where tribal population 30%+

At least 4 posts in the 11 member executive committee should be allotted


to tribals.

5.3.4.3. Pro-poor inclusion

Page 77 of 198
This grant fund will be used to provide seed money to the poorest and most vulnerable
groups (disabled, destitutes, and extreme poor) at GP level. Training and intensive
action research pilots will be carried out in blocks with both high and low tribal
concentration to formulate guidelines and methods for including the most poor and
vulnerable groups based on their needs.
5.3.4.4. Community Investment Funds
 These funds will be released to federations following the achievement of
a number of key eligibility criteria, in two tranches. Social inclusion is an important
requirement for CIF release. For the first tranche, GPLF need to plan that at least
50% of BPL households are in SHGs and are part of GPLF and 50% of poorest
households who are members of SHGs have plans to be financed by CIF.
 For the second tranche, at least 50% of EPVGs have obtained loans as
per goals set in 1st MIP

For the first release of the first tranche of the CIF will be dependent on the GPLF giving
an inclusion plan, setting out how the needs of the poorest of the poor and the tribal
groups will be prioritized. After release of first tranche of CIF, GPLF Strengthening Plan
would focus on inclusion of extreme poor groups including tribal groups in the GPLF and
empowering them to access social and development programmes. The release of the
second CIF will be dependent on the performance of the GPLF in reaching these goals.
5.3.4.5. Livelihood Fund
Strategy: Tribal communities are primarily forest or natural resources-based. Natural
resources form an integral part of their lives, skills and livelihoods. Villages inhabited by
these communities are the poorest and devoid of the infrastructure and livelihood
supporting mechanisms conducive to their lifestyle. A majority of these communities
depend on collection of forest produce seasonally as their only source of livelihood.
During other times, they are wage-gatherers - a significant population is marginal or
landless. One of the critical roles of the project in the tribal area would be to ensure an
environment to help grow a symbiotic relationship between tribal people and the natural
resources. Therefore, one of the important tasks of the agencies involved in the project
should be to closely work with the tribal communities in the protection, conservation,
regeneration and sustainable development of the natural resources. This will mutually
benefit developing natural resources-based livelihood enterprises and options.

This requires the project; take both a regulative and proactive approach. All MIP and
livelihood activities will be screened for adverse effects on tribal livelihoods. The
principle mechanism for this will be the appraisal process at the Gram Sabha and by the
federation executive.

Page 78 of 198
Considering the immense importance of Non Timber Forest Produce (NTFP) in the lives
of the tribals, especially the landless tribals, and the policy issues involved in ensuring
the rights of the tribals over the resource, the various issues involved in NTFP
development need to be addressed. For example:
• The issue of NTFP Conservation & Augmentation,

• Sustainable Harvesting mechanisms,

• Value addition, Marketing and Enterprise Development

In each of the tribal areas, NTFP groups/associations – including VSS committees – will
be linked to the GPLF, or formed where needed. They would also be trained as the key
unit for other diversification and development initiatives to take off. Close cooperation
and joint project initiatives need to be put in place between the Orissa Forest
Department and this project will have to be given a priority for addressing issues of
NTFP trade, control and value addition. Where present, forest management committees
will be inducted into the project’s natural resource management framework. It is
imperative therefore; that the present project revisits these marginalized communities
through: a) Holistic Natural Resource Based Livelihood Approach and b) An Institutional
Development & Local Governance perspective which builds from existing traditional
cultural practices and has the ability to converge with project initiatives

The second aspect of the tribal livelihoods plan will ensure that tribal livelihoods be
supported through value chain analysis and asset creation for producer companies,
through the prioritization of tribal livelihood activities (for example non-timber forest
produce) in blocks where population is higher than 30%. In other areas, value chain
analysis will prioritize the inclusion of tribals in value chain activities. In addition,
innovative approaches ensuring gainful involvement of the communities will be achieved
through the skill training component of the project (7% of jobs created by the project will
be for tribals) and the innovation fund (10% to focus on tribal livelihood activities).
5.3.4.6. Project Management
All Project functionaries working in the tribal areas, especially the CC, CRPs and nodal
members and the staff at the State, Block and District Project Units would be sensitized
and oriented towards tribal culture and development issues to enable them to appreciate
the importance of “tribal way of life” (culture) while working among the tribals. With this
participatory strategy in place, the possibility of any potential adverse impacts on the
tribals would be remote, as they will be completely involved in each and every stage of
the intervention process.

In blocks where tribal population is higher than 30%, at least one CC will be from tribal
community. This may require the education level recruitment criteria for CCs to be
reduced in the case of tribals.

Page 79 of 198
In GPs where tribal population is higher than 10%, at least one CC will receive training in
tribal development issues.

5.3.4.7. Monitoring and Learning

Thematic studies on tribal development carried out throughout project cycle.

Tribal Development indicators are being developed and are to be included in PME, MIS
and evaluation process.

5.3.4.8. Additional Provision as Part of the TDP

The critical processes related to the prior arrangements and mechanisms that need to
be set in place, for implementation of the TDP, are described below.
(i) Project level : The major project level arrangements for the implementation of
the TDP include selection of team for carrying out this project, training to team
members on Tribal issues, selection of tribal villages, organizing stakeholder
workshops to analyze data and observations and make changes to the project
implementation plan, field investigation on existing activities – group under
traditional, project/Government intervention – what works, why and what does
not and why, and mapping of resources and mapping of skills in different
geographical zones with links to markets, trader chains….
(ii) Policy Level: A study has been proposed to be carried out after inception of the
project to explore the potential links of tribals to other line departments and
based on the findings of the study a convergence strategy for the project will be
developed. This will help to ensure participation of the tribals in the social and
economic development programmes.
(iii) Information: A major aspect of the limited success with programs and the
participation of Tribals, especially the poorer sections, are related to the
inadequate availability of information regarding different programs and schemes.
Information dissemination of project aspects like project components, basic
principles, non-negotiables, roles and responsibilities of different stakeholders,
are critical to elicit interest and participation of the Tribal communities. The IEC
strategy of the project has taken into account the specificities of the Tribal areas
and is putting together a special strategy to reach out to Tribals. Some of the
methods being looked at are folk art, street theatre, films and simple pamphlets.
The emphasis will be on creating resource persons from within the Tribal
community to provide information and local insight.
(iv) Gender: The participation of women would be the key factor in implementing the
TDP. Tribal men and women would be sensitized for enhancing the women’s
participation in community affairs. The strategy would be to promote women’s
active involvement in the process of development and their effective participation

Page 80 of 198
in decision making. All project functionaries would be sensitized on gender
issues.

(v) Grievance Redressal: In the process of strengthening the SHGs and GPLFs,
besides CB on Credit flow and management, stress will be made to cover social
and convergence issues. Conflict resolution and grievance redressal procedures
will be built in to enable the community not only to resolve the issues related to
credit management and social issues, but also to grievances related to various
schemes and entitlements. A Participatory Monitoring Committee will be formed
in the GPLF for complaints handling at Panchayat level. Apart from this, contact
numbers and official addresses will be displayed and made public for faster
redressal of complaints. A HOTLINE number and postal address will also be
provided so that the community can lodge complaints immediately.

(vi) Social outcomes: The project aims to leverage the potential of improved
organization and voice of the poor to enhance development outcomes more
generally. Specific focus is given to improving the quality of mid-day meal
provision. As such, this objective will be part of the tribal inclusion and
development strategy, focusing on the specific issues facing tribal groups in
accessing these institutions. In addition, given the poor health and education
indicators of tribal groups in Orissa, a special action research study of these
issues will be carried out as part of the institutional inclusion component of this
project
5.3.4.9. Operational Arrangements for social inclusion:
Staffing: For implementing the Tribal Development Plan, the project will have a Social
Development officer anchoring this aspect under the project at the SPMU.
All BPFT members working in areas where tribal population exceeds 10% will be
sensitized on tribal issues and the BPFT members working in Tribal areas will undergo a
comprehensive training to implement the TDP. In blocks like Pallahara in Angul and
Sukinda in Jajpur, which have ST populations higher than 30%, the Project Coordinator
(Institution Building and Tribal Development0) will have experience in working with tribal
development.
Since the scheduled tribes inhabiting the different project districts exhibit striking
diversity in ethnic origins, cultural heritage, social institutions, religious traditions,
dialects, festivals and economic pursuits, an in depth understanding of the socio-cultural,
economic, political and religious life of the tribals will be imparted to all the project
functionaries, right from the district level to the village level, including the NGOs involved
in TDP at the time of their entry into project. This would run concurrently with the rest of
the Project.

Table 5.3.5 : Implémentation arrangements, Organisation and Management

Page 81 of 198
Level Nodal Agent for Tribal Functions
Development
Project State level Executive • Providing necessary guidance and support to the
Level Committee with Director, Project in tribal areas.
Tribal Welfare
Department, ITDA, SC
corporation
State level Social Development • Coordination with DPMUs and other line depts.
Officer activities.
• Support DPMUs and BPFT in social mobilization
and capacity building of tribals and their
institutions
• Support DPMUs and BPFTs in generating and
grounding community sub-projects
District District Program Manager • Coordination with BPFTs and GPLFs and other
Level line depts. staff.
• Support BPFT in social mobilization and capacity
building of EPVGs including tribals and their
institutions
• Support GPLF in generating and grounding
community sub-projects
Block Level Project Executive • Coordinate CCs and GPLF with social inclusion
Facilitation (Institution Building and and livelihood activities
Team Tribal Development) • Grievance Redressal
Cluster Cluster Coordinators • Facilitating communities identify the poor and
Level poorest of the poor through PRA tools.
• Mobilization of women/men to form into SHGs,
• Formation of EC and GPLF
• Assist in the preparation of MIPs and demand
driven sub-projects
• Facilitate implementation of the plans.
• Registering Grievances
Village Community Resource • Mobilization and Facilitation.
level Persons • Coordination with other activities.
• Monitoring and reporting.
• Registering Grievances

5.3.4.10. Monitoring and Evaluation Framework

The Monitoring and Evaluation (M and E) of the social inclusion component is similar to
the process and specific activities for the project as a whole and are integrated into the
M and E framework designed for the project. The overall project M&L System will ensure

Page 82 of 198
a) input and output monitoring b) process monitoring and c) impact evaluation would
ensure effective implementation of Tribal Development Plan.

For the purpose of monitoring and evaluation of social inclusion, basic data relating to
village wise information on EPVGs including tribals, infrastructure facilities, land
utilization, cropping pattern, livelihoods etc. would be recorded in the village registers
that will be kept with the GPLF. The project interventions planned in the village as part
of the Annual Plan and the project interventions actually implemented will also be
captured in the MIS. The data collection would be the responsibility of the BPFT in
association with the CC and CRPs of each village in her/his jurisdiction. The BPFT in
turn would report the progress to the DPMU and SPMU for taking up remedial
measures, if any.

The community would be involved in process monitoring through Focus Group


Discussions (FGD) and Participatory Rural Appraisal (PRA) techniques, wherever
required in order to know the quality of project implementation and inputs provided under
the project. The villagers will monitor the performance of all project functionaries, starting
with the Community activists, Community Para professionals and the BPFT.

Monthly progress reports on the progress of various sub components of the project in
Tribal areas would be submitted by the DPMU to the SPMU.

Table 5.3.6: Key issues for Monitoring and Evaluation of social inclusion

Indicators
Start up activity ♦ Habitation and Village baseline data
♦ Present status (group inclusion, links to federation etc)
♦ Number of Situational Analysis conducted
♦ Number of Tribal Situation Assessments conducted
Awareness building and ♦ Development of Tribal focused materials
communication ♦ Public display of BPL list
♦ Coverage of IEC campaign
♦ Awareness levels among EPVG groups with focus on tribals
♦ Graduation criteria publicly verified in GB meeting of GPLF
Institution formation ♦ Training for CCs
♦ Number of tribal CCs and CRPs recruited
♦ Number of groups formed from the left-out BPL households
Mobilization and GPLF ♦ Number of EPVGs (including tribals) in SHGs before release of
strengthening CIF 1
♦ Number of EPVGs (including tribals) in SHGs before release of
CIF 2
♦ Number of EPVG members of federation

Page 83 of 198
♦ Number of BPL (including tribals) MIPs financed by CIF
♦ Number of EPVGs (including tribals) supported by Pro-poor
inclusion fund
Representation Number of Tribal Committees as part of GPLF
Number of Tribals on GPLF EC
Tribal membership in Committees
MIP and consolidation District level workshops held on tribal economic activities held
Number of MIPs approved
Livelihood Fund Inclusion plan for tribal development – submitted
(Block level) Funding flows to livelihood activities
Number of sub-projects directed at tribal groups financed
Skill training for rural youth Number of EPVG families benefiting from job training
Innovation Fund Percent of innovation funds directed to tribal development
Grievance Redressal Number of grievance from EPVGs (including tribals) submitted, time
taken to resolve
Monitoring and Learning Number of thematic studies on tribal issues completed
Partnerships with tribal development agencies and EAPs
established and workshops held

Monitoring will be ongoing and periodic, done internally by the Monitoring, Learning and
Evaluation Unit at the SMPU level and supported by District Level and Block Level
Financial Management and MIS Officers. The M and E system will comprise of the
following components
o Baseline and Impact Assessments (external agency)
o Regular MIS system
o Participatory Monitoring – at the GP level
o Thematic studies and learning activities

Page 84 of 198
Table 5.3.7 Tribal Development Plan – Components Summary

Strategy Likely activities under TDP Project Primary Support


Component Responsibi Institutio
lity ns
Objective 1: Institutional Developing and Strengthening

Start Up Project Orientation workshop for IB fund BPFT DPMU


Activities community at GP level CC
• Discussion with tribal option
leaders

Orientation • Initial needs identification IB fund BPFT DPMU


meeting at • Federation assessment CC
the village
level for
SHGs
Communica • Development of specific IB fund DPMU SPMU
tion communication products for tribal
campaign localities
Formation • Identification of key tribal IB fund BPFT DPMU
of tribal sub- spokespersons and opinion CC
committees leaders
• Training and orientation on roles

Training and • Training of CCs and CRPs on the IB fund BPFT DPMU
sensitization importance of women’s Resource and
on tribal participation in developmental Agency for SPMU
development activities to the field functionaries Tribals
and the tribal community.
• Orientation to other departmental
staff
Mobilization • Separate SHG for tribal group IB fund GPLF DPMU
of Tribal (homogenous groups) in BPFT
women into villages/habitations exclusively CC
SHGs inhabited by tribal groups.
• Separate SHGs for Tribals and
non-Tribals in mixed villages.
• Representation of tribal groups in
federations

Page 85 of 198
Inclusion of • Identification of destitute, IB fund BPFT DPMU
the poorest vulnerable, disabled, widows etc CC
and most through community process (support
vulnerable • Prioritization for tribal groups in agency)
HH Inclusion fund
GPLF • Assessment of GPLF training IB fund BPFT DPMU
strengthenin needs CC
g plan • Separate tribal plan for villages
where population greater then
30%
Training and • Exposure visits and training IB fund BPFT SPMU
capacity workshops for tribal SHG, DPMU
building committee and EC members

Objective 2: Community Investment Fund


Formation • Screening MIPs for adverse IB fund GPLF DPMUU
and effects on tribals BPFT and
appraisal of • Workshop/training on tribal SPMU
MIP livelihoods, asset management,
investment planning.
Capacity • Training and facilitation support IB fund BPFT SPMU
support in for SHG and GPFL to support DPMU
assessment pro-poor investment planning
and
prioritization
of the poor
Component 3: Livelihood promotion fund
Identificatio • Screening of sub-projects to Livelihoods Livelihoods DPMU
n and ensure no adverse impact on fund resource and
proposal of tribal land rights and livelihoods agency SPMU
value • Assessment of sustainable tribal BPFT
livelihoods and priorities
• Planning and vision programs
Training and • Providing training to producers Livelihoods Livelihoods DPMU
capacity • Formation of Natural Resource fund resource and
building Protection Committees agency SPMU
• Identification of market linkages. BPFT

Promotion • Demand survey for tribal Livelihoods Livelihoods DPMU

Page 86 of 198
of marketing products fund resource and
• Training on latest techniques of agency SPMU
production. BPFT
• Assistance to purchase locally
available material.
• Provision of market linkages.

Skill • Identification of rural youth Livelihoods Skill DPMU


developmen • Provision of training fund Developmen and
t • Support in securing employment t Resource SPMU
Agency
BPFT
Innovation • Support for innovations that Livelihoods SPMU
Fund contribute top tribal livelihoods fund
Monitoring and Learning
M and E Periodic reporting on the M and E SPMU DPMU
implementation status of the TDP

Learning Tribal Development Legal Support M and E SPMU


and best Partner
practice Thematic studies on tribal
promotion development to be conducted
Periodic workshops, training events,
with government departments, NGO
and other actors on tribal
development issues

Page 87 of 198
5.4 Livelihood Fund

5.4.1 Objectives
The Livelihood Fund (LF) aims to deliver a longer-term, strategic commitment for
supporting community development through financing of potential value chain sectors,
creating employment opportunities for youths from rural poor households and identifying
and supporting innovations in the state and piloting them. The Livelihood Fund is
designed to transfer financial and technical assistance to the community based
organizations (producer or commodity groups their federations, producer companies) on
a demand driven basis through a participatory livelihood mapping process for use as a
catalyst to improve their livelihoods and build their institutions. TRIPTI will provide
targeted investment for providing the necessary push for livelihood enhancement of the
poor in the project area.

Strategy for implementation of Livelihoods Fund:


Based on learning and experience coming out of SGSY implementation in Orissa and
other similar programs in India, the Livelihood Fund implementation strategy is
articulated. The strategy discussed below is presented as a corollary to the impediments
found during the implementation of the above mentioned schemes or programs.
• TRIPTI will not finance stand alone or group based income generating sub-
projects but finance livelihoods sector specific value chains;
• In each of the TRIPTI districts 2-3 major sub-sectors would be identified and
prioritized based on the opportunities, potential growth factors and constraints;
• TRIPTI will provide end-to-end technical assistance and hand-holding support to
organise the producers into organizations to function as business organization;
• TRIPTI will invest in skill development and employment for rural youths from BPL
households for taking-up jobs in emerging job sectors in the state and outside;
and
• TRIPTI will make provisions for encouraging innovations and piloting new ideas
that has the potential for scale-up with greater chance of favouring and benefiting
the poorer households.

Sector Market Value Chain Analysis of Performance


Choice Analysis Mapping Gaps & Activity Matrix

Key Elements of Value Chain Approach

Page 88 of 198
5.4.2 Financing Value Chains
The objective of this sub-component will be to increase the share of SHG households in
the value chain of key commodities or products. This will primarily focus on enhancing
livelihoods by strategic investments based on a value-chain analysis at the district level.
Livelihoods enhancement will include enhanced production, productivity and profitability
in sectors like agriculture, horticulture, fisheries & livestock and handlooms key rural
livelihoods in the coastal districts. This would be achieved through improvements in
production technologies and management practices, better market linkages, more
efficient and effective delivery of key support services, and augmentation of community-
level productive capacities as well as infrastructure.

The project will extend appropriate technical assistance to convert the Value Chain
Analysis done at the district level into appropriate Livelihood Sub-projects for the
community. Thus, each of these sub-projects would be demand-driven and address the
identified gaps, leakages, constraints and opportunities of most of the poor in a village
comprehensively. Further, the community itself would manage the sub-project.
Productivity, equity, and sustainability would be the three cardinal principles underlying
each sub-project. And finally the project would handhold the community in implementing
the sub-project.
Matrix for Development of Value Chain Proposals and Livelihood Sub-Projects
Table 5.4.1
Step Key Components
I. Block Level mapping ♦ Overview of existing and emerging Livelihood options
of Livelihoods based ♦ For each Selected Sub-Sector
on GP level o Sub-Sector Characteristics
situational analysis o Sub-Sector Participants
o Marketing Channels
II. Identification of Key ♦ Pre-production
Value Chains in a ♦ Production
District for financing ♦ Processing & Value Addition
♦ Marketing
III. Call for Proposal, ♦ Increasing productivity
Appraisal and ♦ Backward – Forward Linkage
Financing of Value ♦ Resource Agencies
Chain Proposal
♦ Institutional arrangement

IV. Implementation of ♦ Mobilization of Producers & Capacity building


Value Chain Sub- ♦ Development of Business Plan / Implementation Plan
project ♦ Formation & Registration of Producer Organisations
♦ Facilitating Technical Input and handholding till
sustainability is attached

Page 89 of 198
5.4.2.1 Block Level mapping of Livelihoods based on GP level situational analysis

In each of the project blocks the BPFT will interact with the GPLF members, SHG
members and other stakeholders and come up with an analytical overview of the existing
and emerging livelihood options in the block. The livelihoods mapping exercise will
capture the perception and existing livelihoods practices of the targeted beneficiaries,
available and possible market linkages and current skill levels, and institutional
arrangements facilitating such livelihoods. A livelihood map of the block will depict all
activities, products, actors and relationships among segments and the interactions
between producers and intermediaries. It will also understand and document the various
players (private and public sector) those actively involved in emerging and existing
livelihoods sectors in the Block. The livelihoods mapping exercise will broadly focus on
the following aspects:
• Households currently employed or practicing income generating activities
pertaining to a certain sector;
• Volume of sector in terms of turn over, sales, investment, credit flow;
• Identification of constraints to improve or scale-up such as skills, raw materials,
markets, technology, processing, access to credit etc.,
• Identification of technical support agencies available at the block, district and
state level;
• Availability of community based organization like cooperatives, producer groups
or companies;

Note: Specialized training programs will be organized by the SPMU to equip BPFT
members with required knowledge and skill to undertake the livelihoods mapping
exercise at the block level.

5.4.2.2 Identification of Key Value Chains in a District for investment

On completion of block level mapping of various existing and emerging livelihoods it will
be consolidated at a district level in order to come up with a selected few sub-sectors
that will be supported under the project. It is envisaged that diagnostic study on the
selected value chains will be conducted in each of the districts followed by a program
design phase to narrow down on the key Value Chain Proposal to be supported by
TRIPTI.

5.4.2.3 Call for Proposal, Appraisal and Financing of Value Chain Proposal
The value chain consists of different stages starting from Pre-production, Production,
Processing and Value addition and Marketing. In this analysis backward and forward
linkages will be noticed for appropriate intervention. Value chain analysis has to be
carried out for the major livelihood activities of the poor to understand the activity

Page 90 of 198
thoroughly. For each of the selected sub-sectors detailed value chain and SWOT
analysis will be carried out to narrow down on the interventions points to remove
bottlenecks. The SPMU will hire services of agencies (refer to attached ToR of
Diagnostic Study and Value Chain Analysis, Annex – VII) with competencies to conduct
value chain analysis of selected sectors for TRIPTI districts. There will be 2-3 sub-
sectoral value chain analysis for each district and the output of the value chain analysis
process will be the development and finalization of value chain proposals to be financed
by TRIPTI.

The value chain approach will necessitate the application of value chain analysis to the
respective production system in order to develop an integrated program of activities to
achieve program purpose. It will aim to identify and address critical success factors in a
coordinated manner through the value chain, thereby unlocking the potential values and
aiding the way out of poverty.

Value Chain Analysis typically involves identifying and mapping the relationships of
four types of features: (i) the activities performed during each stage of processing; (ii) the
value of inputs, processing time, outputs and value added; (iii) the spatial relationships,
such as distance and logistics, of the activities; and, (iv) the structure of economic
agents, such as suppliers, the producer, and the wholesaler. Value chains can become
complex when they reflect multi-stage production systems with multiple types of firms
operating in different locations in the state or multiple locations around the country.
Value chain analyses are a good way to understand relationships and linkages among
buyers, suppliers, and a range of market actors in between.

The preparation of the Value Chain Proposal will comprise of two steps:

A. The Diagnostic Phase (Value Chain Analysis): In this phase a rapid


assessment (based primarily on previous studies and secondary data) of the
Value Chains and key related products will be conducted. This will help to identify
the most important products / group of products with potential for value addition
accruing to poor producers.

B. The Design Phase for Development of Value Chain Proposal: Depending on


the selected value chain, detailed investigation and assessment of possible
activities will be undertaken. The design phase will assess the feasibility of
different component structures and program activities that can be structured for
implementation of the Value Chain Proposal.

Page 91 of 198
Various Stages of the Value Chain (Indicative)

Harvest,
Post-
P Harvest & C
R Inputs: Pre-
Production: Value Marketing
O
production Addition
O # Seeds # Market N
# Land
D # Fertilizer
# Credit
# Land
productivity # Best linkages
# Branding S
Development Harvesting
U # Manure, etc. # Labour
# Water
Management practices # Client U
producer
C # Fodder
development
# Cropping # Storage,
interface M
Pattern Drying and
E # Agricultural Grading # Exhibition E
Extension and promotion
R # Nursery
# Product
design and R
packaging

As mentioned above, selected agencies will develop Value Chain Proposals on selected
sub-projects that will be implemented in the TRIPTI districts. Livelihood Value Chain
Proposals essentially satisfy the three parameters – Productivity (of the resources
through increased income, decreased expenditure, increased employment and
decreased/diversified risk, and/or an enabling environment), Equity and Sustainability
(of the benefits).

The Value Chain Proposal will identify and quantify each main value chain link, it’s
potential value-addition in terms of poverty reduction, income increases and livelihood
improvements of the poor in the TRIPTI districts. The purpose of the Value Chain
Proposal will be to obtain increased benefits (e.g., food security, reduced vulnerability,
increased income) and better livelihood prospects for rural poor by improving
productivity, value addition and diversification of select sub-sectors.

These Value Chain Proposals will be rigorously assessed along with social,
environmental, and financial perspectives and safeguard policies before approval.
Financial viability of income-generation and livelihood sub-projects has to be evaluated
to ensure that the projects can generate net returns to meet at least the break-even point
as assumed by the respective CBOs to the GPLF or Producer Organization.

Page 92 of 198
5.4.2.4 Implementation of Value Chain Sub-Project
Value Chain Proposals will essentially comprise of sequential but interlinked stages
including Social mobilization and formation of commodity based groups, farmers groups
or producer groups that will be clustered at sub-Block levels; capacity building and
implementation of the commercialization plan by the producer organization. For
implementation purpose typically a value chain proposal will have two parts (i) the sub-
project that will be financed and implemented by the producers and their organizations;
and (ii) technical assistance and hand-holding support.

(i) The sub-project would be developed on a cluster approach that makes business
sense and supports economic viability parameters for that identified sub-sector.
For example; if a dairy cluster sub-project needs to be prepared then it will be
important to do it at a scale that it will attract market, create common
infrastructure (bulk milk cooler) that will benefit a critical number of milk
producers to store milk, etc. The sub-project will lay out clearly the institutional
structure and governance mechanisms that will be established for the sub-project
to be implemented, managed and be economically sustainable. It will include skill
development, technical inputs and capacity building elements that needs to be
financed for the sub-project to me managed and implemented.

(ii) The technical assistance and hand-holding support part through livelihoods
support agencies will basically identify the external facilitation and technical
inputs that will be required to implement the sub-project and attain the desired
outcomes. Based on the sub-sector, an agency will be hired at the SMPU level to
develop strategy and work with the producers in that sub-sector to establish the
value chain for that sub-sector as projected through the value chain analysis
exercise. The contracts with these agencies will be based on outcomes or results
as outlined in the value chain proposal.

Page 93 of 198
5.4.3 Skill Development and Jobs for Rural Youth

The objective of the Jobs sub-component is to equip the rural youth with
marketable skills that would ensure their guaranteed employment through a pre-
designed placement avenue.

Though each sector will have its own specific requirements, there are many generic
knowledge, skills and attitudes (KSA) sought across jobs. It is found that employers want
to recruit trainable workers, irrespective of whether they have vocational skills. They
require workers with basic academic skills taught in primary and secondary education
with the ability to communicate, solve problems, and capacity for teamwork. These skills
allow for cost effective training. The bottom line is that for technical / vocational
education to be effective it has to be demand-led. TRIPTI aims to address this gap and
identify employable rural youth and provide them with avenues for sustainable
engagement through a planned and co-ordinated manner.

 TRIPTI will focus on the rural disadvantaged youth and that too on people with
education levels of secondary school and below, unlike conventional trainings.
 In terms of sectors, it would be useful to study the demand-supply gaps in
various sectors, and shortlist them that match its target segment of workers, such
as given in the table below, Broadly, the project will (a) Support collaboration with
the industry actors in manufacturing sector within Orissa, and ensure that the
youth get admission into an ITI that will ensure them jobs in the supply chain of
the factory, (b) focus on services sector in Orissa itself and find appropriate
training agencies to fill the skill gap; and (c) focus on the unorganized sector
which is the most relevant.

The following steps will be taken up for implementing the jobs component:
 Block Level mapping of Skills
 Identification of key sectors with Job Opportunities
 Identification of Training and Placement Agency
 Designing of training module and curriculum
 Selection of trainees, skill building and placement
 Feedback and Monitoring of Placement Programme

Page 94 of 198
Evaluation /
Mobilization of rural Recommendation by
youth Counseling
GPLF

Classroom Training
Market Research
Consultancy
Linkages &

Hands-on Training

Post – Placement
Service Placement

Table 5.4.2

Level Key Tasks


State • Contracting Training Agency
• Liaison with industry for Jobs
• Liaison with other training agencies for curriculum development
• Overall monitoring of component
District • Liaise with Training Agency to ensure quality of training and
placement
• Liaise with local industry for Job placements
• Post Placement services – by liaison with other agencies
Block • Orient and motivate other stakeholders – parents, SHGs, schools
towards Jobs component
• Orient and Motivate the youth to come for training
• Support the Agency in Screening of candidates for training
• Increase awareness about the component/ job opportunities (e.g.
bringing out a compilation of job advertisements relevant for the
rural youth
• Closely work with training agency during programmes
• Liaise with district team for post placement follow up
• Training of JRPs
GP & SHG • Identify and motivate disadvantaged youth for job oriented training
• Increase awareness about opportunities
5.4.3.1 Block Level mapping of Skills

Page 95 of 198
In each of the project blocks, the BPFT will interact with the GPLF members, SHG
members and other stakeholders and come up with an analytical overview of the existing
and job options in the block. The mapping of the employment and skill scenario of
various sectors will give clear leads as to what are the sectors where jobs will be
generated in the coming years.

The sectoral composition of employment in the rural area in the state is predominantly
dependent on agriculture. Mining & quarrying, within primary sector, a thrust sector in
the state, contributes less than 1 % to employment even as it contributes 7% to the
GDP. Among the sub sectors, manufacturing contributes to employment as much as it
contributes to the state GDP. But even here, it is the urban male who has benefited
more from the employment possibilities, much like the trend in the country.

5.4.3.2 Identification of key sectors with Job Opportunities

The project will identify job training agencies that match the above mentioned choices of
target segment, and share the perspective of end-to-end solution. The training agencies
will work closely with the SHGs promoted by TRIPTI but could also link with schools.
The project will also look to impact the employment scenario by the following
contributions:
 Ensuring that the employers relax educational eligibility norms by emphasis on
natural skills, inclination and attitude
 Developing Modular short term courses for practitioners to attend in between
their jobs
 Bearing the cost of skill development at the source itself
 Reducing the time for getting into a job
 Facilitating entry at higher level and wage
 Recognition – certification, chances of getting into organized sector higher

5.4.3.3 Selection of Trainees, skill-building and placement

A state/district level designated agency will be required to develop active tie-ups with
technical agencies to impart training to the project beneficiaries. In some cases offsite
training may also be arranged at the district headquarters in consultation with the
Training and Placement Agency.

The important factors which have been considered while devising ways of implementing
skill development programmes are the following:

i. The placement canvas is very large and covers diverse sectors.

Page 96 of 198
ii. Proximity of the rural segment to industrially and commercially developed
pockets.
iii. The already existing degree of corporate involvement in sourcing manpower
through need driven skill oriented programmes
iv. The absence of training infrastructure
v. The mobility and adaptability already shown by the rural BPL youth by way of
less resistance to migrate towards economic opportunity

Though each sector will have its own specific requirements, there are many generic
knowledge, skills and attitudes (KSA) sought across jobs. Most employers want to recruit
trainable workers, irrespective of whether they have vocational skills. They require
workers with basic academic skills taught in primary and secondary education with the
ability to communicate, solve problems, and capacity for teamwork. These skills allow for
cost effective training. The bottom line is that for tech/vocational education to be
effective it has to be demand-led. Depending on the sectors identified broad outline of
training curriculum will be developed including the content, soft skills and pedagogy.

The essential skills required for the new economy jobs will include:
• Technical or soft skills as per specific jobs with some emphasis on IT literacy

• Critical thinking or problem solving skills

• Teamwork and Personable

• Multi-skilled

• Multi-lingual, with increasing emphasis being placed on spoken English

• Customer oriented

Page 97 of 198
5.4.4 Innovations
Innovation Fund component will support innovations by various institutions,
entrepreneurs, NGOs, etc. whose main objective is to improve rural livelihoods. The
project will aim to create an enabling environment for implementing and scaling up
innovations for rural livelihood development and service delivery. This component of the
project will support innovations by various institutions, entrepreneurs, NGOs, etc. whose
main objective is to improve rural livelihoods. Innovations could be in field of income
generation, production enhancement, increased social security and better service
delivery. The main objective of this component will be to showcase and support various
innovations that show potential in for scaling up through:

 Presentation, discussion and showcasing in state level workshop


 Recognizing and rewarding potential and promising innovative proposals
 Organizing interface between donor agencies and innovators
 Support facilitating leverage finance for the innovations with bankable proposals

Criteria for Innovation:

• Applicability: The innovation proposals should be relevant to the context of rural


livelihoods with a broader sense of socio-economic wellbeing and fulfill basic
service delivery in rural context.
• Reliability: The innovative projects will be so selected so that it can be
demonstrated, up-scaled, adopted and adapted to various rural settings in the
state.
• Scalability: The projects should have potential for expansion in terms of
geographical reach & human coverage for it to have significant impact.
• Impact: It should have long term results and potential impact in terms of social,
economic & environmental benefits derived by the communities and / or
individuals.
• Sustainability: It should have long term potential i.e., whether the innovation or
its benefits from it are likely to sustain in absence of external support or
additional resources.
• Outreach: The outcome or the impact can reach the numbers of direct / indirect
beneficiaries / groups / communities in terms of social and economic categories.
5.4.4.1 Activities:
 Theme based Innovation Forum: The Innovation Forum will accelerate
development of enduring solutions to social and economic issues by directing an
alternative flow of resources to innovative, result-oriented projects and solutions. Our
annual showcase event will provide a unique opportunity for the up-and-coming
organizations and proposals to gain visibility and gain recognition in a wider forum.

Page 98 of 198
Each year, we will select outstanding social innovators working on the theme issues.
Through these Theme Tracks, TRIPTI will aim to identify highly effective approaches
to address our most pressing social issues and to initiate discussion on how to
generate lasting solutions. After proper screening and public advertisement the
social innovators will be invited to present their work to local leaders in philanthropy,
business, government, and academia at the Social Innovation Forum’s showcase
event.
 Partnership with Government Departments, Research Institutions,
Development Agencies and Financial Institutions: The Innovation Forum will
partner with leading organizations related to the theme tracks to support the social
innovators.
 Support to Social Innovators: Few of the selected and potential social innovation
Projects will be given cash awards and support by the innovation forum and Partners
to come up with viable and pilot projects to be implemented in TRIPTI project area.
The forum may also provide additional services to the Innovators in the form of
consulting engagement for developing financial proposals, executive advise and
guidance form Team Leaders, capacity building in the areas of technology,
marketing or human resources

Page 99 of 198
6. Monitoring, Evaluation and Learning

Monitoring evaluation and learning are important management tools to aid effective
implementation of programme and projects .The major emphasis of MLE is laid on
quantitative aspects related to the input and activities covering physical and financial
progress. This leads to low/inadequate attention on results /outcomes of project
interventions. The Orissa poverty reduction mission aims at reducing the instant of
poverty in the 10 selected districts covering 38 nos. of selected blocks of Orissa .It also
emphasizes to form and strengthen the strong local level institutions which will be
instrumented in eradicating the poverty through their own planning and management of
the resources available to them.

6.1. Results Framework and Monitoring of TRIPTI


Project Development Project Outcome Indicators Use of Project Outcome
Objective Information
1. Socio-economic status of 1.1 50% of the 30000 SHGs At MTR the overall
the poor especially women (300,000 households) have strategy will be reviewed
and disadvantaged groups in saved at least Rs.2500/- in if the progress against the
selected blocks of 10 districts SHG/CBOs; availed at least PDO indicators is
will be enhanced. Rs.10000/- as investment significantly less than
credit annually from CBOs, planned
and are covered for the risk
for at least Rs.20,000/- for
life/asset

1.2 At least 60% of all type of


CBOs score “Satisfactory”
consistently in the
Institutional Maturity
Indicators (on parameters like
organizational development,
functioning, inclusiveness,
accountability, transparency,
resource mobilization, cost
coverage, etc.).

1.3 At least 50% of


households (including the
extremely poor and
vulnerable groups) have
increased productive and
sustainable asset base

1.4 At least 75% of

Page 100 of 198


households directly benefiting
from project reported reduced
dependency on the high cost
borrowing sources
Intermediate Outcomes Intermediate Outcome Use of Intermediate
Indicators Outcome Monitoring
Component 1: Community
Institution Building 1.1 At least 60% of
1. Capacity of the CBOs of federations have at least 2 PY-3 evaluates the
the poor and vulnerable in representatives from the strategies of community
management of their own extremely poor and mobilization and capacity
institutions and livelihood vulnerable groups in their building strategies if the
initiatives will be improved. executive committees targeting, inclusiveness and
effectiveness of CBOs are
1.2 80% of the BPLs in the found to be less than
2002 survey list are expected. The constraints
members of the CBOs will be analyzed in
redesigning the strategies.
1.3 At least 50% of the
households of the GPLFs
reported improved access to
the Mid Day Meal schemes

Intermediate Outcomes Intermediate Outcome Use of Intermediate


Indicators Outcome Monitoring
1.4 At least 60% of the CRPs
providing technical support
on self sustaining basis
(either through CBOs or on
their own)

1.5 At least 60% of CBOs


meet graduation criteria of
the project
Component 2: Community PY-3 will revisit the MIP
2.1 At least 80% of MIPs are
Investment Fund appraisal strategy if less
appraised, approved and
than 50% of the MIP
financed
2. Target households plan investment is not generating
and meet credit demand for 2.2 At least 80% of the sustained income.
household and investment identified extreme poor and
needs. vulnerable persons are In PY-3 the strategies for
members of the CBOs capacity building and
placement support for youth
2.3 At least 80% of the and migrants will be
GPLFs have successfully evaluated if the results are
implemented the inclusion significantly less than the
plan expected numbers.

YR 2 onwards, assess if
there is gradual

Page 101 of 198


improvement in insurance
coverage and access to
basic services and revise
strategy if progress is
stagnant
Component 3: Livelihood 3.1 At least 10000 direct jobs PY-3, revise project’s value
Fund created through project chain, business linkage
facilitation & at least 75% of establishment strategies,
3. Value chains, skills the trained and placed rural business plan of producers’
development for employment youths are getting sustained organization if progress is
and livelihoods innovations income significantly less than the
are financed. expected level
3.2 10% increased share of
the poorer HHs in the
financed value chain leading
to enhanced income

3.3 At least 50% of the PY-3, revise project’s


producers’ organization are innovation initiative if less
commercially viable16 than 5 innovations have
been financed
3.4 At least 15 no. of major
business linkages
established for producers.

3.5 At least 9 local


innovations17 identified,
financed and publicized.

Intermediate Outcomes Intermediate Outcome Use of Intermediate


Indicators Outcome Monitoring
Component 4: Project 4.1 On-time completion of From PY1 onwards intensify
management, knowledge project outputs18 against the efforts to develop and
management and implementation plan establish Learning
replication mechanisms and MIS
4.2 Project implementation
Effective project management procedures and agreed From PY2 onwards monitor
and knowledge management business standards are the HRD plan
system established and key followed and compliance implementation and staff
learning replicated monitored attrition rate

4.3 Performance based From PY1 monitor the


incentive mechanism implementation standards
developed and implemented and make review strategy,
for project staff conduct staff training, etc.
for course correction.

16
Commercially Viable: Having balance sheets indicating positive turnover trends
17
Innovations identified through the Development Market Place
18
MIPs, review & update of work plan, progress reports, Financial Monitoring reports, procurement plans, etc.

Page 102 of 198


4.4 80% of the Block Team
received positive scoring
from the community during
participatory monitoring

4.5 Complaints handling


mechanism established and
complaints disposal rate is at
95% as per GAAP

4.6 Harmonization of
project’s policies and
procedures with Mission
Shakti

Page 103 of 198


Table 6.2: Arrangements for results monitoring indicators by years of implementation

S.N Outcome/impact Indicators Baseline End of year Target Values Data collection and reporting
o. Y-1 Y-2 Y-3 Y-4 Y-5 Frequency Data Responsibility
(related to PDO) & reports collection for data
instrument collection
1.1 50% of the 30000 SHGs (300,000 To be 10 25 50 Twice- Impact External
households) have saved at least included evaluation- agency
Rs.2500/- in SHG/CBOs; availed after Mid term HH survey
at least Rs.10000/- as investment BLS & EOP & PRA
credit annually from CBOs, and
are covered for the risk for at least
Rs.20, 000/- for life/asset.
1.2 At least 60% of all type of CBOs -Ditto- 10 20 40 60 Annually MIS & M&EL Splst. at
score “Satisfactory” consistently in thematic state, dist. &
the Institutional Maturity Indicators studies Block level, &
(on parameters like organizational External
development, functioning, Agency
inclusiveness, accountability,
transparency, resource
mobilization, cost coverage, etc.).
1.3 At least 50% of households -Ditto- 10 20 40 50 50 Six Thematic External
(including the extremely poor and monthly/A studies/pro agency
vulnerable groups) have nnually cess
increased productive and monitoring
sustainable asset base.

Page 104 of 198


1.4 At least 75% of households -Ditto- 10 20 40 75 75 Six Thematic External
directly benefiting from project monthly/A studies/pro agency
reported reduced dependency on nnually cess
the high cost borrowing sources. monitoring

Page 105 of 198


S.No Result Indicators Baseline End of year Target Values Data collection and reporting

for each component


Y1 Y2 Y3 Y4 Y5 Frequen Data Responsibili
cy & collection ty for data
reports instrument collection
1.1 At least 60% of federations -Ditto- 20 40 60 Annually MIS & M&EL splst.
have at least 2 representatives thematic at state,
from the extremely poor and studies dist. & Block
vulnerable groups in their level, &
executive committees External
Agency
1.2 80% of the BPLs in the 2002 -Ditto- 30 60 80 Annual, CMIS, HH Internal &
survey list are members of the Mid survey External
CBOs Term agency
and
Impact
Evaluati
on
1.3 At least 50% of the households -Ditto- Indication of Twice- Impact External
of the GPLFs reported improved increased uptake of evaluation- agency
access to the Mid Day Meal services expected Mid term HH survey
schemes to be visible from & EOP & PRA
Yr-3

Page 106 of 198


S.No Result Indicators Baseline End of year Target Values Data collection and reporting

for each component


Y1 Y2 Y3 Y4 Y5 Frequen Data Responsibili
cy & collection ty for data
reports instrument collection
1.4 At least 60% of the CRPs To be 15 35 50 60 Six Thematic External
providing technical support on included monthly/ studies/pro agency
self sustaining basis (either after the cess
through CBOs or on their own) BLS Annually monitoring
1.5 At least 60% of CBOs meet To be 10 20 40 60 60 Monthly MIS M&L officers
graduation criteria of the project included at Block,
after the district &
BLS State levels
2.1 At least 80% of MIPs are To be Monthly MIS M&L officers
appraised, approved and included at Block,
financed after the district &
BLS State levels
2.2 At least 80% of the identified NA 80 80 80 80 80 Six CMIS & M&L officers
extremely poor and vulnerable monthly Process at Block,
persons are members of the /Annuall monitoring district &
CBOs y State level;
external
agency
2.3 At least 80% of the GPLFs have To be 40 60 80 Six CMIS M&L officers
successfully implemented the included monthly at Block,

Page 107 of 198


S.No Result Indicators Baseline End of year Target Values Data collection and reporting

for each component


Y1 Y2 Y3 Y4 Y5 Frequen Data Responsibili
cy & collection ty for data
reports instrument collection
inclusion plan after the /Annuall district &
BLS NA y State level
3.1 At least 10000 direct jobs To be 2000 5000 8000 100 Six Thematic External
created through project included 00 monthly/ studies/pro agency
facilitation & at least 75% of the after the Annually cess
trained and placed rural youths BLS monitoring
are getting sustained income
3.2 10% increased share of the NA 30 50 50 Six Thematic External
poorer HHs in the financed monthly/ studies/pro agency
value chain leading to Annually cess
enhanced income monitoring
3.3 NA 30 50 50 Six Thematic External
At least 50% of the producers’ monthly/ studies/pro agency
organization are commercially Annually cess
viable19 monitoring

3.4 At least 15 no. of major NA 2 5 12 15 Monthly/ MIS, M&L officers


business linkages established periodic thematic & at Block,
for producers. process district &
19
Commercially Viable: Having balance sheets indicating positive turnover trends

Page 108 of 198


S.No Result Indicators Baseline End of year Target Values Data collection and reporting

for each component


Y1 Y2 Y3 Y4 Y5 Frequen Data Responsibili
cy & collection ty for data
reports instrument collection
monitoring State &
external
3.5 NA 3 3 3 Six Thematic External
20
At least 9 local innovations monthly/ studies/pro agency
identified, financed and Annually cess
publicized. monitoring

4.1 NA Esta The thematic and process monitoring


On-time completion of project blish studies will validate the
outputs21 against the ed establishment of the system and its
implementation plan effectiveness in the first year and
subsequently report about its efficacy
4.2 Project implementation NA 80 80 80 80 80 Annual Process External
procedures and agreed Monitoring Agencies
business standards are followed Studies
and compliance monitored
4.3 Performance based incentive NA Esta The thematic and process monitoring
mechanism is developed and blish studies will validate the

20
Innovations identified through the Development Market Place
21
MIPs, review & update of work plan, progress reports, Financial Monitoring reports, procurement plans, etc.

Page 109 of 198


S.No Result Indicators Baseline End of year Target Values Data collection and reporting

for each component


Y1 Y2 Y3 Y4 Y5 Frequen Data Responsibili
cy & collection ty for data
reports instrument collection
implemented ed establishment of the system and its
effectiveness in the first year and
subsequently report about its efficacy
4.4 80% of the Block Team NA 80 80 80 80 80 -Ditto-
received positive scoring from
the community during
participatory monitoring
4.5 Complaints handling NA Esta Esta Establ Esta Est -Ditto-
mechanism established and blish blish ished blish abli
complaints disposal rate is at ed ed ed she
95% as GAAP d
4.6 Harmonization of project’s NA On- On- On- On- On- The thematic and process monitoring
policies and procedures with going going going going going studies will confirm tat to what extent
Mission Shakti the harmonization is taking place on
annual basis

Page 110 of 198


OBJECTIVES

• To track the project input/output based on the project management matrix.


• Collection and dissemination of information at the various levels for better
planning & implementation of the project activities.

6.3 Description of Monitoring and Learning System


The Monitoring, Evaluation and Learning (ME&L) system of TRIPTI would consist of
the following broad components, namely
(i) Progress monitoring of project inputs and outputs;
(ii) Performance monitoring of community institutions, livelihood investment,
and project processes;
(iii) Internal Learning, feedback and Social accountability measures
(iv) Baseline and impact assessment
The above mentioned aspects are the key to measure the project
achievement/failure. The progress monitoring refers to the project input and
output with quantitative datas which forecast the achievement in specific
measurement methods where as the performance monitoring refers to the
process aspect especially where the process related to the management as
well as the project component is measured through qualitative information and
validated for further improvement .Each of the components are described in the
following:
6.3.1 PROGRESS MONITORING OF PROJECT INPUTS AND OUTPUTS
Progress monitoring would cover activities/inputs and outputs (i.e. immediate
results after delivery of input or set of inputs) to assess progress against planned
activities. The progress monitoring would track mainly quantitative indicators
for each of the project components such as in capacity building aspect the major
indicators will be nos. of persons trained in quantitative terms and effectiveness
of the programme by seeing the training module and overall training environment.
The following are the example of some indicators on which quantitative
information would be collected at regular intervals of monthly, quarterly and six
monthly basis as appropriate. The SPMU with the help of an MIS consultant
would prepare a detail list of indicators that cover all components of the project.
 Coverage of the project - geographic, demographic, coverage of
socio-economic groups
 Project funds, human resources, capacity building (training,
exposure, etc.)
 Component wise number of MIPs submitted and approved,
 Number of CBOs (SHGs, GPLF, BLF, Producers Organisations etc.)
 Number of livelihoods asset created and value of asset.
 Contribution of beneficiary in terms of cash and kind in the project components .
 Trainings received by the target groups
 Facilities created for disabled and vulnerable groups

Page 111 of 198


 Progress in various dimensions of social mobilisation and pro-poor
inclusion (development MIPs, mobilization of poor and vulnerable into
SHGs, capacities and skills built, nos. of groups linked to banks, youths
employed, etc);
 Delivery and use of revolving fund for different types of activities.
 Progress of convergence with private sectors, financial institutions,
line depts.
 Number and project specific trainings received by the project staff,
etc.
 Number of feasible MIPs where Environmental and Social
safeguards have been implemented.
 Number of complaints received and disposed on quarterly basis.
 Number of IEC campaign, communication inputs provided, etc.

A Computerised Management Information System (CMIS) will be the main instrument


for tracking physical progress against the quarterly, annual and cumulative
targets/activities of the project. The CMIS would capture information related to
activities (its immediate results or outputs) that are conducted under each of the four
project components.

Annexure XVI ToR for MIS Consultancy


The data would be collected on monthly, quarterly and six monthly basis depending
upon the nature of inputs/activities. The primary data would be collected through pro-
forma by the Block Level Facilitation Team (BPFT) and it will be fed into the system
at the DPMU level and from DPMU the data will be transferred to the SPMU level on
a monthly basis or as decided at the time of designing of the CMIS. The CMIS would
largely serve the purpose of internal progress review (both physical and financial)
against the planned activities and reporting to the State Government, the World Bank
and other stakeholders. This would also provide necessary information/reports for
quality monitoring of project inputs and outputs, process monitoring and thematic
studies by the external agency as proposed later in this chapter. The formats for the
collection of information will be developed after discussion with the MIS consultant.
There will be space for the further improvement of the formats for simple way of
keeping the information.

TRIPTI would mainly work with the existing SHGs which were formed under the
Mission Shakti (and would form new SHGs for those who are left out, the effort will
be given to include them in the existing SHGs when the size is more they will be form
new SHGs) and would build their capacity to become an engine for socio-economic
development of the members. It is envisaged that in the beginning of village entry a
situational analysis would be done in each village to take stock of the existing SHGs,
their quality, existence of the GPLF and other relevant information. This information
collected through a standard pro-forma would be fed into the CMIS to keep track of
the progress made in each village by the project. The datas related to the
components like capacity building and community investment fund and MIPs
prepared and sanctioned will be kept in the CMIS for preparations of the reports to
World Bank as well as Panchayati Raj Department as and when required .The

Page 112 of 198


specialist in the respective area will give the information on quarterly basis to be fed
in CMIS against the achievement on cumulative basis.

It is planned to integrate the financial information with the physical progress data to
get a comprehensive view of financial analysis of different activities. The proposed
MIS would be developed in a manner that it provides financial information matching
with the physical progress. In TRIPTI, the funds are transferred directly to the GPLF
and producers’ group from the SPMU based on the approval of various instruments
like MIPs, value chain analysis, etc. The fund utilisation is proposed to be tracked
through the utilisation certificate provided by the community organisations giving
details of expenditures. For instance, if one GPLF is funded for Rs.1, 00, 000/ meant
to be given to 3 SHGs for three different activities, then through the UC, it is known
that the amount of funding made to each SHGs and the purposes for which it has
been given. Such information can then provide required financial analysis matching
with the physical data. The software can further agrees and disagrees this
information by operational units. Systems would be developed to route the UC
through the ME&L cell at the SPMU level to enter data in the system.

For monitoring quality aspects of project activities and outputs it is proposed that an
external agency would be engaged. The agency on every six month would conduct
quality monitoring of activities and outputs including utilisation of resources on
sample basis such as nos. of MIP prepared and utilisation of the fund for the growth
of their financial condition. The findings of the agency will be consolidated into a
report which would be shared concurrently with the World Bank and the Project
management half yearly. Based on the findings the necessary decision will be taken
at the SPMU level to change the strategy for sanctioning of the MIPs. It is anticipated
that this monitoring would raise various operational issues which would require
compliance from the project management. The quality monitoring report may
mismatch with the financial report in relation to the utilisation of fund and progress
made so far .

The operationalization of the CMIS would be the responsibility of the ME&L Specialist
of the SPMU with the support of the District MIS & Finance Officer and Block Level
MIS cum financial assistant. A consultancy firm would be hired to design and develop
the CMIS software and to provide handholding support to the SPMU, DPMU and
BPFT staff for operation and maintenance of the software for at least initial one year.
Similarly for developing, training and maintenance of accounting software a
consultancy firm would be engaged.
ToR for quality monitoring is given in annexure XII

Review meetings at different levels of project unit shall also be an important way of
progress monitoring. It is proposed that monthly review meeting of progress against
planning will be held by the DPMU with the BPFT and bi-monthly SPMU will hold
review meeting with the DPMU. Every six month the SPMU will hold review meeting
with all DPMU staff and BPFT team leaders. Besides, progress review these
meetings will discuss operational strategies for course correction. The review
meeting will be held very holistically for a period of one day duration .The
achievement and failure of each component will be analysed carefully for future
intervention .The format for reports of BPFT and DPMU will be SPMU level with the

Page 113 of 198


assistance of the team leaders of BPFT and DPMU level. The specialist at the SPMU
level will attend the bimonthly review meeting with the DPMU for providing their
critical support for the project. The review will be meaningful for analysing the project
component along with the financial expenditure.

6.3.2 Performance monitoring of community institutions, livelihood


investment, and project processes
Fundamentally this project aims to establish strong community institutions and
promoting livelihood options amongst the poor. In this context the performance
monitoring of the initiatives for institution building and enhancing livelihood options
becomes very critical. It is very important that the capacity building aspect of the
project component plays a vital role in building Gram Panchayat level institutions for
effective mobilization and management of the resources from the project as well from
other sources. Since majority of the information that validates the performance of the
above are qualitative in nature, therefore varieties of mechanisms are required to
capture them for measuring the performance. The qualitative informations are
predictive in nature and which can only be internalized such as regularity in
conducting the GPLF meeting where the quantitative information is the nos. of
meeting where as the change in the attitude of the members towards strengthening
their institution can be felt but difficult to measure due to the internal group dynamics.
Three mechanisms are proposed under the performance monitoring component,
namely
a) Assessment of community institutions,
b) Thematic study.
c) Process monitoring.
a) Assessment of community institutions
Under this component the performances of the various project induced CBOs
(SHGs, GPLF, BLF, Producers’ organisation, etc.) shall be assessed against a
set of Institutional Maturity Indicators. The general performance criteria and
indicators for the CBOs would be broadly as following, however would be
customized as per the type of institutions and their nature of work.
Criteria and indicators for assessing CBO performance

CRITERIA INDICATORS
1. Characteristics • Size
• Social homogeneity: kinship/other social ties, Absence of
dependency relations.
• Not dominated by politically/economically powerful
households
• Inclusion of poorest, vulnerable, different-abled persons
2. Identity & structure • Members know the purpose
• Members represent their households
• Continuity in household representatives
• All members can give an account of all the group’s
activities.
• All members can give an account (General) of the group’s
finances.

Page 114 of 198


CRITERIA INDICATORS
3. Leadership • Leadership role changes as per agreed norms including
bank signatories
• Leaders have been elected/selected by the members.
• Selection/election of leader based on desired
characteristics
4. Functioning • CBO has a set of rules (bye laws) which has been
discussed and agreed and sanctions for rule breakers.
• Regular group meeting takes place with 80-90%
attendance.
• Majority of members contribute to group discussion and
decision making.
5. Independence
(Proportional to the age of • Maintenance of records with diminishing support from the
CBO) project
• Majority decisions are taken independent of the project
staff
• Majority of activities taken up independent of the project
1. CBO makes use of planning skills (PRA, etc.) on its
own.
6. Resource mobilization • Every member (for SHGs) makes the minimum savings
contribution and rotated for meeting credit needs.
• CBOs raises money to pay for the service providers
• CBO mobilises specialised skills/services from the
government.
7. Resource Management • (Equitable) investment of project funds (poorer people
included)
• The CBO has shown ability to negotiate with the various
stakeholders
• Group effectively oversees/ manages the work of service
providers
• Budget control
• Transparency
8. Skill acquisition & use • X% of Groups members have attended Y training
programmes (including specialised training)
• Groups have used planning skills to identify and solve
operational problems.
9. Distribution of benefits • The need of poorer members and women are specially
met
10. Links with external • CBO obtains govt. scheme/bank finance/technical
agencies assistance/market linkage, etc. to meet identified needs
• CBO members have basic knowledge of available
schemes, resources, technology centres etc. and use
them.

The institutional performance tracking would be undertaken annually for all types
of CBOs and would be used as triggers for project assistance and also be used
for developing capacity building strategy.
The State M&L Specialist (SM&LS), District and Block level MIS and Finance
officer will be responsible to accomplish this task on timely basis. The other front

Page 115 of 198


line staff like BPFT members including the CC would be involved in doing this
assessment as below:

Institutions to be Frequency By whom


assessed
SHGs Annual Cluster coordinator
GPLF Annual BPFT
BPLF Annual BPFT with Dist. MIS
officer
Producers’ Annual BPFT with Dist. MIS
Organisation officer

The BPFT and the front line staff would be trained to facilitate the assessment
process at the CBO level in a fashion that it becomes a learning experience for the
CBOs to enable them for undertaking corrective measures.
b) Process monitoring (PM)
The Process monitoring would be undertaken to help the project management and
others involved in the project to understand factors responsible for deviation in the
implementation process and actions necessary to increase management
effectiveness. PM would, therefore, verify the quality and performances of the project
implementation on a continuous basis and give inputs for correction.
The monitorable processes on which project needs qualitative assessment can be
broadly divided into two categories –
(i) Field implementation related processes
(ii) Project management related processes.
The processes would be identified on the basis of their critical importance in the
project. Some examples under these two categories are given below.

i. Field implementation related processes that can be monitored are :


 Process of CBO formation and development
 MIP preparation process
 Inclusiveness in planning, execution and benefits sharing
 Institutional performance of CBOs
 MIP implementation and quality of project goods and services
 Utilization of infrastructure created by the project, etc.
 Compliance to the social and environmental safeguards
 Intermediary impacts of project activities/inputs
 Convergence of CBOs with Private sectors including financial
institutions, line deptts. etc.

ii. Project management and Organisational development related issues


 Staff recruitment and capacity building process
 Relationship between different levels of project management units
 Role clarity of staff
 Process of procurement of goods, works and services
 Village and beneficiary selection process
 Adherence to the COM

Page 116 of 198


 MIP, Value chain proposal appraisal process
 Fund disbursal process to the CBOs and units
 Process of social accountability/information disclosure plan
 Performance of MIS and internal learning system, etc.
 Adherence to the business standards
 Coordination among various stakeholders at the field level, etc.
 Performance of wider dissemination mechanism of the project

The PM would be carried out six monthly by an external agency hired for the entire
project period. The rationale behind engaging an external agency for PM are (a)
bringing objectivity to the exercise avoiding biases in the findings that might come
into play, and (b) to deal with the constraints of lack of capacity of internal staff for
undertaking such assignment. Annexure XIV, ToR for Process Monitoring.

Broadly the PM would follow the steps below:

 The process of PM would start with the identification of monitorable


processes, process steps and their corresponding indicators of success. The
processes will be identified on the basis of their criticality to the project. This
will be done in consultation with the SPMU before each round of the PM in a
workshop mode facilitated by the agency. In this workshop the SPMU staff
and some selective field staff would participate.

 As next step the samples for PM would be selected in consultation with the
SPMU. Significant degree of qualitative information is expected from the PM
to validate the indicators of the result framework. Hence, while identifying
issue/processes for PM the agency should ensure that issues selected are
pertinent to the indicators of the result framework. It is therefore important that
the PM agency would first prepare a synopsis of their study before each
round (after the workshop) and get it approved by the SPMU before
proceeding for the field work.

 A team of 2-3 professionals from the PM agency along with the ME&L
specialist and concerned technical specialists from the SPMU would be
involved in researching the issue and collect data to substantiate their
findings.

 For the field implementation related processes where community is involved


(viz. MIP preparation and implementation) data will be collected using the
participatory appraisal tools like FGDs, meeting with the CBO
representatives, etc. The benefit of using participatory tools is that the data
providers will get on-the-spot analysis of the information provided by them.
During data collection at the field the presence of the BPFT/Cluster
Coordinators and CRPs is necessary as this would help them to follow up on
the issues came up during the process monitoring.

 The PM would be objective in its findings and presented in a structured


manner. The findings and observations of PM would be shared at the DPMU
and SPMU level in a workshop mode and an Action Required Report (ARR)
would be prepared for follow up action. The subsequent round of PM will
review the actions taken of the previous ARR and document it in the form of
Action Taken Report (ATR) in the current report.

The final report of the PM would cover :

Page 117 of 198


• Issues/processes identified for process monitoring and rationale for
identification,
• methodology followed for data collection and analysis,
• process discussion, concerns/gaps,
• synthesis of findings in relation to the specific indicator/s of the
Results Framework
• suggested actions/recommendations
• Agreed actions with the DPMU & SPMU in the form of Action
Required Report; and
• Action Taken Report of the previous round.

c) Thematic studies
Thematic studies on specific issues would also contribute in assessing
performance of the project. Also to validate the qualitative indicators of the result
framework the thematic studies would be required. Specialized agencies will be
hired to conduct these studies. The studies will be evaluative in nature but will
also capture the good practices of the project. It is difficult to anticipate that on
what issues/themes such studies would be conducted and in what periodicity as it
is understood that indication for thematic studies would emerge as the project
progresses and from the findings of the process monitoring and external quality
monitoring stated above.
6.3.3 Internal Learning and feedback
Monitoring is also about consolidating learning and its sharing among the
stakeholders of the project including the community.
The internal learning here specifically refers discussion of several issues and
assimilation of learning at the community as well as at different levels of project
management unit. This is crucial for the project to be responsive to the changing
context as it progresses. The effectiveness of internal learning would depend upon
the institutionalisation of learning among the various levels of project organisation
including the community . Mechanisms proposed to facilitate the internal learning are
:

At the community level it is proposed that a quarterly SHG leaders convention at the
GPLF level be held where sharing of experiences, major issues, leveraging
government programme, etc. can be discussed. Most importantly this convention
would place emphasis on sharing of best practices by the SHGs. The Cluster
Coordinator and CRPs would take proactive role in facilitating this event of SHG
leaders convention. The CCs and CRPs would be trained on facilitation techniques of
such events.

For the project staff of BPFT and DPMU it is proposed to have a quarterly workshop
where the emerging issues, findings generated out of the process monitoring studies,
thematic studies, CMIS findings, quality monitoring by the external, etc. can be
shared. Similarly at the SPMU level a similar workshop on six monthly basis is
proposed with the DPMU and BPFT leaders. The purpose of workshops at both level
would be to discussing emerging issues and decide on the corrective measures. The

Page 118 of 198


Process monitoring agency would be facilitating the SPMU level workshops to bring
in more objectivity in the discussion.

The mechanism of peer review would be used for the promotion of internal learning.
The selective members of BPFT and DPMU would form the Peer Review Team
which would visit BPFT operation area of another district and review the programme
on a pre-decided parameters and methodologies. The peer review would end with a
debriefing to the BPFT and DPMU by the team which had done the peer review. A
detail operational manual will be developed and the peer reviewers would be trained
by the external specialist on the methodologies of peer review.

6.3.4 Participatory Monitoring & Learning


The central objective of participatory is to make the primary stakeholders an integral
part of the overall M & L system. The self-assessment would involve the use of
learning tools by the groups to assess their own organizational capacity development
as well as progress towards sustainable livelihoods. Each SHG/GPLF would
periodically undertake self-assessment of the goals it set out for itself and measure
progress towards indicators it selected. Self assessments would track levels of
satisfaction/dissatisfaction of the groups to function as a collective, mobilize
resources, promote bonding and bridge social capital, solve livelihood problems,
manage collective activities and take responsibility. The participatory monitoring also
helps to build social accountability among the group for better utilisation of the
community investment fund .

The assessment of the group for the self-assessment to be useful and taken
seriously by members of the SHG/GPLF. Further they will be empowered to take
decisions on the basis of their collective self-assessment. The members may need to
consult with the various PRI representative and opinion leaders of the community to
guide them for taking decisions.

Developing appropriate self-monitoring and learning tools is a critical step in the


introduction of a participatory monitoring system. Simple, flexible and yet useful tools
would be developed by the GPLF for enabling the groups to undertake self-
monitoring in the project. However, self-monitoring tools would be so designed as to
capture certain basic information about the dynamics and development of the group,
apart from groups’ self-perceptions. The basic group information would be fed into
input-output MIS system as well as process monitoring system. To enable the groups
to undertake self-monitoring, appropriate capacity building of group would be
undertaken by the M&L staff at the district and BPFT level.

Key activities under this component would include:


• Development of participatory monitoring and learning tools for
SHG/GPLF by the project;
• Training of frontline staff in facilitating the use of participatory monitoring
tools by the CBOs;
• Capacity building of all CBOs in the use of participatory monitoring tools
and
• Monitoring the impact of the use of participatory monitoring tools on
internal and external functioning of CBOs.

6.3.5 Baseline and impact assessment

Page 119 of 198


Typically the baseline would consist of (a) hypothesis document for identifying key
hypotheses regarding demand for different types of project interventions by specific
groups and the impact of such interventions and the methodology to measure them;
(b) sampling document for describing the methodology adopted for baseline survey
including control and surveyed areas, justification for choosing samples and size of
sample, basis for weights, etc.; and (c) questionnaires and FGDs for households,
community, CBOs, existing service providers (banks, MFIs, market linking
organisations, etc.) and the project area in general.

The indicators in the Results framework would provide the lead in designing the
baseline questions and sampling as the project’s outcomes would be measured
against those indicators. The baseline study will be done by an external agency
which will be validated annually for possible changes in the information.

ToR is given in annexure XI

6.3.6 Impact Evaluation

Impact evaluation would involve comparing qualitative and quantitative outcomes


before and after the project. The outcome and output indicators would be the point of
reference to establish the net effect of the project. The impact evaluation would
consider major assumptions to establish causal relationship between activities,
outputs and outcomes. The impact evaluation study would require rigorous
methodology and quality analysis. Two impact evaluations are planned during the
project period. The mid term evaluation would be commissioned at the end of PY-3,
while the Final Impact study would be conducted at the end of the project period .

6.3.7 Institutional arrangement for M&L

The SPMU will be responsible for the overall ME&L. It will employ and maintain
throughout the project period, a senior full-time M&L Specialist who will be assisted
by a Communication Officer and an MIS Assistant. Besides the full time staff the
PMU will hire the services of the specialised agencies for (a) design and develop
Computerised Management Information System, (b) Quality monitoring of project
inputs, (c) Process monitoring, (d) Thematic studies, and (e) baseline and impact
studies. At the district level there would be an MIS & Finance Officer who would
coordinate the ME&L functions in the district along with the MIS & Finance Officer at
the BPFT level.

6.3.8 Operation manual for ME&L

An operation manual for the ME&L will be developed describing all aspects of ME&L
in detail with emphasis on “How” part.

Page 120 of 198


6.3.9 Reporting

Report Content Frequency By whom to whom


Progress report* Planning vs. progress Monthly BPFT-DPMU-SPMU-
P&RD

Progress report* Planning vs. progress Quarterly SPMU-World Bank

Quality Quality of project Six monthly External agency – SPMU &


monitoring inputs World Bank (concurrently)
report

Process Review of project Six monthly External agency – SPMU –


monitoring processes World Bank
report

Reporting Performance Six monthly SPMU-World bank


against Result reporting against
framework result indicators (as
per Result
Framework).

Page 121 of 198


6.3.10 Summary of M&L system

M&L Information Instrument Type Frequency By whom to


Components collected on of whom
data
Progress Inputs & outputs Pro-forma, Quant Monthly/quarterl BPFT-
monitoring Computerized MIS, itative y DPMU-
& SPMU
Computerised FMS
Performance - Institutional - Assessment Qualit - Annual BPFT &
monitoring performances of against Institutional ative DPMU
CBOs, Development
- Livelihood Indicators;
investment, & - Process - Six monthly
- Project monitoring - demand - External
processes - Thematic studies based - External
Internal Project processes, - Disclosure of info. Qualit - Monthly at the - CC for
learning best practices, - Sharing ative GPLF GPLF
information workshops at - Quarterly for
disclosure, etc. various level, BPFT & DPMU - DPMU &
- Peer review - six monthly for BPFT
SPMU & DPMU - SPMU &
DPMU
Baseline & Before and after Baseline and Quant Before project, External
Impact the project, Impact evaluation itative Mid term & Post
Evaluation Project impacts & project
and outcomes Qualit
ative

Page 122 of 198


7. Implementation Arrangements and Project Management

The project would be implemented according to norms, rules and procedures


outlined in the Project Implementation Plan (PIP) and Community Operational
Manual (COM). These documents lay out roles and responsibilities of different
stakeholders and provide details of project processes and project cycle. They
incorporate experiences gained through implementation of other community project
in India as well as the outcomes from various workshops, studies and analyses that
were carried out as part of project preparation. The PIP and COM will be subject to
periodic reviews conducted jointly by GoO and IDA, with stakeholder participation to
address any constraints to the successful implementation of the project.

7.1 Organizational Structure:

The project’s institutional arrangements are built as support structure starting from
the community level and going to the Block, District and State level. The primary
agency responsible for the project’s implementation will be the Orissa Poverty
Reduction Mission (OPRM) established by the GoO, as the agency for rural
livelihood promotion and poverty elimination in Orissa. The implementation
arrangement is shown in Figure 7 below.

Institutional arrangements at the State Level

Orissa Poverty Reduction Mission (OPRM)

The GoO has set-up the “Orissa Poverty Reduction Mission” registered under the
Society Registration Act XII, 1860. The State Society has a 21 member General
Body chaired by the Chief Secretary which will formulate policies and guide project
implementation. The management of the Society has been entrusted to an Executive
Committee chaired by the Secretary, Panchyati Raj, GoO. It has representatives from
the government, civil society, commercial banks and developmental institutions.
OPRM will manage the project through a State Project Management Unit (SPMU).
The Member Secretary/Chief Executive Officer of OPRM will be the Project Director
of SPMU. The PD will head the SPMU and will work under the guidance of the
Executive Committee for day-to-day operations and General Body for policy
decisions. The SPMU will constitute a team of professionals with expertise in
institution building, capacity building, social development, livelihoods, microfinance,
communication, monitoring and evaluation, human resources development, and
finance who will be grouped into three broad functional units: Program Unit, Program
Support Unit and Financial Management & Procurement Unit. The person who will
coordinate the activities and look after the day to-day management of the program
unit will be drawn from the market on contractual basis. Where as for Program
Support Unit and Financial Management & Procurement Unit will on deputation from
the Government. Job description, roles and responsibilities are detailed in the PIP.

Page 123 of 198


Institutional arrangements at the District Level

District Project Management Unit (DPMU)

In the ten project districts, a District Project Manager (DPM) will head the DPMU,
which will be responsible for coordinating, implementing and managing project
activities in the district. The structure of the DPMU will be lean with the DPM
supported by Accounting and MIS staff. Other relevant thematic specialists in the
areas like social development, livelihoods and micro finance will be added, based on
district specific requirements that emerge during implementation.

Institutional arrangements at the Block Level

Block Project Facilitation Team (BPFT)

One BPFT will be set-up in each of the 38 project blocks and will play a crucial role in
project implementation. The BPFT – Team Leader will head the BPFT supported by
an Institution Building Facilitator, Livelihoods Facilitator, Financial Management and
MIS Facilitator and Cluster Coordinators, there will be 2 Cluster Coordinators for a
cluster of 3-4 GPs. This Unit will facilitate the formation and functioning of SHGs, GP
Level SHG Federations and Block Level SHG Federations (BLF). Along with a cadre
of Community Resource Persons, the BPFT will be responsible for panchayat and
block level implementation. For the initial 1-2 years Cluster Coordinators will be
directly lined-up under BPFT as project staff but it is envisaged that towards the end
of the 2nd year and beginning of the 3rd year of the project their accountability will be
gradually shifted from the project to the BLF. It is also envisaged that towards the
end of the 3rd year and beginning of the 4th year of the project the BPFT functions
will be incubated into the BLF and like Cluster Coordinators their accountability line
will be transferred to BLF. This visualized transition of key functions will contribute
towards the sustainability of the institutions beyond the project life.

Communities and Panchyat level

The institutional arrangements at the community-level under the project are designed
to enable women and other disadvantaged groups to form their membership
organisations at group level and subsequently federate at the panchyat and block
level. This three tier structure gives women and their organisations ability to achieve
economies of scale and aggregate in terms of access to services, credit and markets.
It also enables them to build good quality sustainable institutions with a strong
financial base. These institutions also enable external institutions like commercial
banks to reduce their transaction costs in dealing with a large number of small,
dispersed and low transaction volume poor households.

A cadre of activists and para-professionals including community activists, book


keepers, community resource persons, para-veterinarians, job resource persons,

Page 124 of 198


health activists will be supported by the project through investment in their knowledge
and skills to provide services to and be accountable to the CBOs and be paid by
them over a period of time.

Page 125 of 198


Figure 7: Project Implementation Structure

Orissa Poverty Reduction Mission (OPRM)


Executive Committee

State Project Management Unit (SPMU)


State Project Director

Program Support Unit


Program Unit Financial Management & Procurement
Additional Project Director
Additional Project Director Unit
Additional Project Director
Institution ML&E Specialist
CIF Cell Livelihood HR Specialist
Building
Promotion Cell Strategic Communication
Cell Financial Management
cum Grievance Handling
MF Specialist Specialist
Livelihood Promotion Officer
Institution Bank Linkage Officer Accounts Officer
Specialist Section Officer
Building Fund Management Officer Procurement Officer
Skill Development
Specialist
Officer (Jobs)
CB Officer
Social Devp.
Officer

District Project Manager


District Project Management Unit (DPMU) MIS & Financial Management
Chaired by District Collector Officer

Team Leader Block Project Block Level SHG


Institution Building Facilitation Team Federation
Livelihoods
Financial Management & MIS (BPFT)
Tribal Development*

* In blocks where tribal population is


more than 30%
Gram Panchayat Level
SHG Federation
Cluster Coordinators

Community Resource Persons Self Help


Groups

Page 126 of 198


Table 7.1: Summary of roles and functions of Community Level Organizations

Community Key Functions Membership Supporting Project Inputs


Level & Office Functionaries
Organization Bearers
Self Help  Will be based on Women from Book keeper These groups will
Groups thrift and poor and be provided
revolving their disadvantaged support in
internal savings households developing group
for providing will be norms, financial
credit to each mobilised to management
other. form affinity capacity,
groups known development of
as SHGs. The solidarity and
group aceess skills, credit
membership and services from a
will be from 10 variety of service
to 15 providers. These
households. self help groups will
be provided
support to be
federated into GP
President & Level Federations
Secretary involving 200 to
300 members at
the GP level.
GP Level  Will provide the (25-40 SHG) Auditor These GP Level
SHG SHGs technical Federation will be
Federation assistance for (when more Record the main receipents
preparation of than 40 Keeping of the project
micro SHGs, 2 resources.
investment plan Federations)
The GP Level
 Facilitate access
Federations will be
to financial and
faciliated to evolve
technical
President & into Block Level
resources from
Secretary Federations (BLFs)
the project,
covering about 10
financial
to 15 GPs.
institutions

 Take-up specific

Page 127 of 198


social and
economic
activities
requiring
collective action.

Block Level  Provide GP (300 – 350 CEO


SHG Level SHGs)
Federation Federations with 2 Functional
technical (when more Coordinators
assistance, than 600
capacity building SHGs, 2 For 3-4 GPs
and facilitate Federations)
convergence (IC / MIS /
between CBOs Book Keeper)
and different
agencies of President,
development Vice-
like local President,
governments Secretary
and line Joint
agencies. Secretary,
Treasurer
 Hire
functionaries to
provide support
to GP Level
Federations.

 Arrange bulk
finance for the
GP Level
Federations
Producer’s,  Purchase or Members will Board of The project will
Organization procurement of come from Directors promote livelihood
s and their inputs for different based activity

Page 128 of 198


Federations production SHGs and will groups and
 Local receive CEO federations of
processing and technical and members who have
storing of inputs financial Functional similar livelihoods
and outputs support in Coordinators in sectors such as
 Marketing and areas of input
dairy, agriculture,
selling of and output
fisheries, handloom
produce procurement,
extension etc.
 Develop
services,
commercial and
technical
direct
assistance
relationships
services and
with private,
marketing
cooperative and
services.
public sector
agencies.

Key Roles and Responsibilities of Key Institutions

Table 7.2 provides a summary of the roles and responsibilities of project institutions at
different levels in the project.
Table 7.2: Summary roles and responsibilities
OPRM - Executive  Providing overall policy guidance and direction to
Committee the project
 Approving all annual plans
 Representing the project at the state
government level
 Undertaking advocacy to ensure pro-poor
policies are issued by the Government
 Formulating policy regarding reducing poverty
and enhancement of livelihoods of the poor
 Providing strategic support and guidance to
program implementation
 Monitoring project implementation and
achievement of performance indicators
 Coordinating with different government
departments and agencies
 Approving overall Human Resource policies

 Redefining and reformulating project strategies

Page 129 of 198


based on emergent experience from project
implementation
State Project  Recruiting project team at the state level, district
Management Unit & block level
 Induction and training of all project staff and key
stake holders
 Developing and issuing service standards,
guidelines for various component
implementation, appraisal checklist and
monitoring indicators
 Developing strategy and action plan for strategic
communications and institution building
 Preparing and financing annual work plans and
budgets, financial management and state-level
auditing
 Monitoring, Evaluation and Learning from project
implementation and knowledge management
activities
 Coordinating activities at district, block, cluster
and village levels

 Converging with other government programs and


developing partnership support
District Project  Prepare annual work plan of project activities
Management Unit and ensure timely accomplishment of the same
 Ensure operationalization of all financial,
administrative and HRD guidelines at the district
level
 Conduct periodic reviews of project progress and
report to SPMU and inform the District
Administration as and when required
 Conduct capacity building programs as well as
other related activities for district, block level staff
and other key stake holders
 Establish strong linkages with district
Government offices, line development
departments, district resource agencies, private
sector players, bankers and eminent public
representatives for garnering required support
for the project
 Monitor and supervise Community Investment
Funds routed to poor through GPLF or BLF or by
the Block unit
 Document project learning and disseminating the

Page 130 of 198


same to all relevant levels as well district
administration
 Extend handholding and ensure technical
support to BPFT as and when required
 Identification and promotion of producer
organization based on value chain analysis

 A District Project Manager will be appointed by


the ORLP society to head the DPMU and based
on requirement thematic specialists will be
placed for providing the requisite handholding &
technical support
Block Project  Organize target community into SHGs and then
Facilitation Team federating them at the GP and Block level
 Build capacity of SHGs and village organizations
 Identification and promotion of producer
organizations based on value chain analysis
 Constitute the apex structure of the Community
based Institutions at the Block viz. BLF and
ensuring functioning of the same through
handholding and regular capacity building inputs
 Manage the interface between banking system
and community groups through membership in
BLF and liasoning with banks
 Help community based institution in preparing
livelihood sub projects (value chain proposals),
getting their approval from DPMU/SPMU and
ensure their qualitative implementation.
 Support community based institutions in
developing linkages with financial institutions,
service provider agencies and line development
departments
 Facilitate community based institutions to
develop forward and backward linkages
 Conduct regular interface of BPFT and BLF with
Block Government officials and Panchayat
representatives and garner support from them
 Manage and monitor channeling of CIF to SHGs
or federations.

 Furnish information through MIS and submitting


progress report to DPMU
Block Level SHG  Facilitate provision of technical assistance to the
Federation VO and SHG members

Page 131 of 198


 Problem solving and conflict resolution
 Review GPLF - SHG performance
 Review micro plans for the social and economic
development of the SHGs/ GPLF
 Network and be a confluence for convergence
between CBOs and the Government and other
Agencies in their geographical area benefiting
the target poor.

 Act as a platform for sharing experiences and


concerns of GPLF – SHGs
GP Level SHG  Provide technical assistance to SHG members
Federation  Problem solving and conflict resolution
 Review SHG performance
 Facilitate formation of SHGs of the remaining
poor in the village
 Compile micro investment plans for SHGs
 Network and be a confluence for convergence
between resource agencies and project staff in
their geographical area benefiting the target
poor.

 Act as a platform for sharing experiences and


concerns of SHGs

7.2 Human Resource Strategy:

OPRM recognizes that for successful implementation and achieving the objectives of
TRIPTI a competent, dedicated and motivated human resource is a must. Based on this
pretext, the project’s human resource recruitment and development strategy is
constructed to aspire for achieving the following objectives:

• Identifying and enrolling best available human resources with project;


• Imparting timely induction as well regular orientation inputs for staff;
• Ensuring shared vision and ownership of project among all staff;
• Bringing clarity among staff about their role and creating an enabling
environment where they can attain required service standards;
• Fostering team building approach in all decision;
• Synchronizing attitudinal and behavioral attributes of staff towards achieving
objectives of the project;
• Grooming leadership of key staffs;

Page 132 of 198


• Placement of system and functioning of the same for continuous assessment
of capacity building for staff;
• Adhering to participatory appraisal system for performance of staff and
extending rewards as well incentives accordingly;
• Putting in place a functional mechanism for identification of grievances and
their timely redressal;
• Bringing competitive remuneration package for staff i.e. similar or better than
the package offered in the state for development sector; and
• Addressing professional and personal dilemmas being faced by staff while
performing duties through face to face and group counseling.

HRD Co-ordination:

To coordinate and execute related HRD related intervention for TRIPTI, there will be a
dedicated Human Resource Specialist (HRS) functional at SPMU level with the Project
Support Unit. S/he will seek regular guidance from Project Director and Addl. PD of the
project for effective implementation of this strategy. Further, a Human Resource
Development core committee will be constituted under the chairmanship of PD and meet
as and when required to look into the HRD issues like effective implementation of HR
manual, fixing of contractual agreement, renewal of contracts etc. The HRS will be the
convener of this committee and other members of this committee will be all 3 APDs and
on annual rotational basis 2 SPMU level functional specialist, 2 DPMs and 3 BPFT
leaders. The exact role of this committee will be further developed in the HR Manual of
the project.

Recruitment of Staff for management and supporting implementation of TRIPTI:

TRIPTI intends to build a team of best available human resources in development


sector. Hence it becomes imperative to design recruitment process in a very
professional way and offer competitive working conditions and remuneration package.
Recruitment process has to focus on selecting competent individuals who have people
centred attitude and approach, clear thinking on working for advancement of poor, ability
to perform in team and have commitment towards his/her job. For the purpose rigorous
staff selection process will be adopted by TRIPTI.

The recruitment process of TRIPTI will comply with Orissa Government roster of
employment as and where necessary for contracting staff in the society. The
appointment of Project Director, Additional PD – Program Support and Additional PD -
Financial Management and Procurement will be done by Government of Orissa and
Executive Committee of OPRM will approve the same.

Page 133 of 198


The recruitment of remaining project staff shall be executed by a national level
experienced and reputed recruiting agency will be hired (through a competitive process)
to conduct recruitment on behalf of TRIPTI. This process may help searching and
recruiting competent experienced professional from all across the nation. This process
will also be required when large and specialized recruitment is to be done in stipulated
time period.

The detailed HR strategy currently under preparation by the consultants for TRIPTI will
elaborate further the recruitment process for TRIPTI and its nitty-gritty.

Induction Process

The society will ensure a comprehensive induction process for all those joining the
project. The induction process will aim at bringing thinking of new recruits similar to the
line of the project. The induction process will lay foundation among staff for sharing
organizational vision and inculcating sense of ownership for the project.

The under-preparation HR Manual will also elaborate the induction process with its nitty-
gritty in TRIPTI. This will add further value and strength to induction process.

Developing Learning Mechanism in the Project

One of major tasks of Human Resource Development in project is to design mechanism


and operationalise action for establishing regular learning among staff. This is important
because continuous learning is strongest way to feed motivation among staff and
improve quality of input extended by them. In project following are proposed for
developing learning mechanism.

• Promoting cross learning within organization through scheduled staff meeting


at all level, encouraging informal project related discussions among staff, writing
case studies of best practices in project and sharing of the same, documenting
learning and disseminating them on different project forum and establishing
system for information flow among staff. The communication officer at SPMU
level will be instrumental to carry out such activity.
• Promoting cross learning with other program/project – This will be
encouraged among staff to allow them attending relevant workshops, seminars
and other events, sharing reports of attended events with other project staff and
organizing exposure program for staff.

Page 134 of 198


• Extending education inputs – through setting up of a rich library in TRIPTI,
subscribing all leading development journals, and establishing system of
information display for easy access by staff.
• Systematizing review process at all level of project. This will focus on input
and output review, process review with special reference to draw learning in
project implementation. The monitoring unit needs to work closely for this.
• Counseling for staff will be very important in effective functioning of learning
system within society. The HR - Specialist in consultation with PD, Addl. PDs and
other key staff will organize counseling for staff as and when required. The
functional head at DPMU and BPFT will also be delegated authority of
counseling their respective staff. The counseling will aim at recognizing strength
with staff and shape his/her job responsibility according to the need of project
and staff comfort.
• Organizing Annual Colloquium on TRIPTI achievement – An annual event for
dissemination of learning of TRIPTI and also for knowing best work on livelihood
by other similar agencies will be planned. This may be combined with Orissa
Innovation Forum’s annual event. This event will help in improving staff learning
through exposure of great work on a single forum.
• Institutionalization of annual get together of staff will help all to visualize the
project structure in total and know each other personally.
• Inviting management trainees (from both national and international
institutions, colleges and universities) will help project to have external academic
perspective of its work.

Capacity Building of Project Staff

The employed human resources in TRIPTI will be groomed with specific capacity
building input facilitating them to perform according to project requirement. The
details of this are elaborated earlier in Chapter 5, Section 5.1.3.

Proposed HR manual for TRIPTI

An HR manual is proposed to be developed in the project during its preparatory


phase. This manual will cover the following
• Staff contract policy
• Process of recruitment
• Compensation package, incentives and reward to employee
• Grievance Redressal Mechanism:
• System of appraising capacity building needs of staff
• Performance appraisal of staff
• Disciplinary control system
• Deputation, hiring and outsourcing of employee

Page 135 of 198


Staffing:
State Level:
Levels
Admin Total
Sl Sector Addl.
PD SPS PO Asst/Accountant/System PS required
PD
Assistant
1 2 3 4 5 6 9 10 11

1 Administration 1 1 1 3

Project
2 1 1 2
Management
Finance
3 1 1 2 1 5
Management

4 Institution Building 1 2 3

Community
5 1 2 3
Investment
Livelihood
6 1 1 2
Promotion
Monitoring and
7 1 1
Evaluation
Human Resource
8 1 1
Development

9 Communication 1 1

Total 1 3 6 8 2 1 21

PD Project Director
Addl,PD Additional Project Directors
SPS State Project Specialists
PO Project Officers
FO Finance Officer
PS Personal Secretary

Page 136 of 198


District Level Staffing:

Levels
Admin Total
Sl Sector Addl.
PD DPM PO Asst/Accountant/System PS required
PD
Assistant
1 2 3 4 5 6 9 10 11

1 Administration 10 10

Project
2 10 10
Management
Finance
3 10 10
Management
Total 0 0 10 10 10 0 30

DPM: District Programme Manager

Block Level Staffing:

Levels
Admin Total
Sl Sector Team Support
PD Executive CC Asst/Accountant/System required
Leader Staff
Assistant
1 2 3 4 5 6 9 10 11

1 Administration 38 38 76

Project
2 410 410
Management
Finance
3 38 38
Management
4 Institution Building 38 38
5 Livelihoods 38 38
Total 0 38 114 410 38 0 638

CC: Cluster Co-ordinator

Page 137 of 198


8. Financial Management

8.1 Introduction

The financial management system for the project TRIPTI has been designed to ensure
effective management and utilisation of programme resources & achieving the
programme objective.

8.2 Financial management Framework

The financial management framework consists of simplified arrangements to ensure


transparency and accountability at all levels of implementation. The financial
management framework for the project is given below.
Table-8.1
Level Institutional Key Financial Arrangements
Arrangements
State Level Governing Body of • Approve the Annual Budget, annual action plans, Annual report
the Orissa Poverty & Financial Statements of OPRM.
Reduction Mission • Approve the appointment of auditors
(OPRM)

Executive Committee • Develop, review and revise OPRM Financial Rules &
of the OPRM Regulations.
• Develop, review and amend TRIPTI Financial Management
Manual wherever necessary.
• Review & monitor the Financial Progress, Financial Position at
the apex level.
• Review and follow-up on external and internal audit reports.
• Overall analysis of financial management function.

Page 138 of 198


State Project • Compile annual budget of Project based on annual action plan.
Management Unit • Monitoring and developing the mechanism for timely flow of
(SPMU) State Project funds to different project implementing agencies.
Director with Asst. • Develop mechanism for proper accounting and auditing of
Financial Advisor, utilization of project fund.
Financial • Maintain accounting information database.
Management • Submit quarterly Claims, FMRs to the World Bank.
Specialist, Accounts • Submit timely financial reports to the different agencies.
officer, Procurement • Develop policy and strategy for book keeping, capacity building
Officer and Cashier at different level and implement the same.
• Appoint internal auditors for the project, including procurement
review and a sample audit of Community Based Organisations
i.e. GPLF, and producer agencies (NGO, Company,
Cooperatives).
• Follow-up on internal and external audit reports.
• Liaise with statutory auditors for timely completion of audit and
place the audit report before the Governing body of the mission
and filing annual returns with the registrar of Societies.
District District Project • Compile annual budget for the district and submit the same to
level Monitoring Unit the SPMU in time.
(DPMU) District • Appraise GPLF plans for Start up activities, Institutional
Project Manager, Building, Inclusion and Strengthening & Sustainability activities.
Project Executive • Appraise MIPs submitted by GPLFs.
(MIS/FM) • Appraise livelihood proposal prepared by GPLF/Producer
Companies.
• Submit requests to SPMU for release of funds to
GPLFs/Producer Companies.
• Track fund releases to GPLFs and timely submission of
utilization certificate.
• Verify utilization certificates submitted by GPLFs, milestone
certificates submitted by Producer Companies on a sample
basis.
• Maintain database on G.P & village wise sub project
agreements, releases and expenditures.
• Develop Rate Charts (for each block) of market rates for the
likely goods, works and services to be procured by the G.P.
Level Federation/SHGs/SHG Members.
• Coordinate with BPFT to ensure regular and timely audit for
district level and block level activities.
Block level Block Project • Facilitate preparation of GPLF plans for various activities.

Page 139 of 198


Facilitation Team • Verify utilization and milestone certificates (on a sample basis)
(BPFT), Team leader and forward to DPMU.
& Programme • Prepare and forward regular monthly Statement of
Executive (MIS/FM) expenditures for Imprest account to SPMU.
• Engage book keepers to provide handholding support to
GPLF/SHG to prepare monthly financial statements from
primary records maintained at GPLF/SHG level- to be
generated from computerized accounting systems when
installed.
• Ensure implementation of capacity building activities for
building skills in financial management of village level and G.P.
level institutions.
• Assist the GPLF in implementing the accountability framework
(including public displays, external audit etc.)
• Facilitate linkages for easy flow of funds for the community to
mobilize community equity.

G.P level G.P. level Federation • Approve plans for start up, institutional building, inclusion fund,
Institution General Body strengthening & sustainability plans.
• Appoint Participatory Monitoring committee (PMC).
• Receive periodic reports from PMC and call for action taken
reports from EC.
• Appoint auditors, review annual audit reports and call for action
taken reports from EC.
G.P level Executive Committee • Appoint President, Secretary, Treasurer, Book Keeper.
Institution • Appoint committees for participatory monitoring, finance
procurement, utilisation verification and social action.
• Sign MoU with SPMU.
• Plan, implement and supervise activities.
• Request for funds from SPMU through DPMU & BPFT along
with utilization certificates.
• Ensure that all decisions related to finances and procurement
are duly documented in the minute’s books of the federation.
• Submit monthly, quarterly, half yearly and annual financial
reports to BPFT for onward transmission to DPMU & SPMU.
G.P level Finance Committee • With the assistance of BPFT team, prepare and submit CIF
Institution plan to GPLF Executive committee.
• Appraise the micro credit plans submitted by the SHGs and
recommend the same to Executive Committee for sanction.

Page 140 of 198


• Monitor the administration of CIF funds, including the Loan
tracking and management system.
• Provide Capacity Building support to the groups regarding CIF
fund with the assistance of BPFT.
G.P level Procurement • Guide the federation in their Financial Management &
Institution Committee Procurement functions.
• Assist the GPLF, SHG (if there are advantages of scale) to
negotiate for highest quality and best prices.
• Prepare Procurement Plan by utilizing the standard price list
(RATE CHART) maintained by BPFT.
• Conduct periodic surprise cash check.
• Prepare annual procurement plans and submit to Executive
Committee for approval.
• Supervise implementation of procurement plans ensuring
compliance with agreed procurement procedures.
• Facilitate audit process, review audit reports and take
appropriate follow up actions.
G.P level Participatory • Carried out periodic audit of GPLF & SHGs handled activities.
Institution Monitoring • Submit regular reports to General Body of GPLF.
Committee
G.P level Utilization Verification • Verify on a random sample basis utilization of loan funds by
SHG members in at least 25% of loan sanctioned.
Institution Committee • Certify utilization of CIF tranches for the approved use of loan
funds.
• Investigate and report to Executive Committee for all instances
of complaints or reports of misappropriation or misuse of loan
funds.

Page 141 of 198


8.3 Funds Flow:

The funds for project implementation will be channelised to the project implementation
agencies as per the flow envisaged is summerised below:
Table-8.2

IDA Government Government


of India Advance of Orissa
transferred under
Special A/C back to back Quarterly
with RBI arrangement, releases against
subsequent budgetary
releases based on allocations &
quarterly IFRs financial progress

Deposit into Bank State Project Management Unit


Account for Having District Level Dist.
project mgt. / Project Monitoring Unit Based on
capacity building/ (DPMU) & Block Facilitation actual
tech. asst funds utilization (in
Team at Block Level (BPFT). trenches
and contracts
depending on
with various Value Chain
service providers Proposal)
Based on achievement of
readiness filters/ Start up funds
milestones(in trenches) Value Chain
CIF Grant proposals
Based on actual utilization Innovative sub
(in trenches) projects
Start up Plans
Inclusion Plans
Institutional Building Plans
Community
Deposits into Bank Based
A/C & manage Gram
Panchayat Block Livelihood
community
livelihood projects Level SHG Level Producer
Federation Federation Groups (CBLP)

Loans to Self Help Groups based on Federations own assessment


of SHG credit ratings, repayment capacity etc.

SHG SHG SHG SHG SHG SHG


Deposits
SHG SHG SHG SHG SHG SHG
into Bank
A/C
SHG SHG SHG SHG SHG SHG

Page 142 of 198


8.3.1 The basis for release of funds to the different levels of the project and the
nature of accounts at these levels of the project are as follows:
Table-8.3
Nature &
Fund flow level Basis of release operation of
accounts
World Bank to • Disbursement from IDA credit in the basis of Interim Unaudited Designated
GoI Financial Reports (IUFRs) submitted on a quarterly basis. account in US$
• Quantum of funds to be transferred into designated account maintained and
determined in the basis of forecast of expenditures for next two operated by
quarters, adjusted for unspent balances in Designated Account CAA&A.
GoI to GoO • Fund transfers through ACA following standard back to back Consolidated
mechanism. Fund of GoO
maintained with
RBI.
Government of • OPRM, TRIPTI Project will prepare annual budgets and submit it to Savings Bank
Orissa to SPMU Government of Orissa Account of the
• Government of Orissa will include estimates in their budget estimate OPRM, TRIPTI
and obtain sanctions from the Assembly. State Society
• OPRM, SPMU will submit quarterly IUFRs in agreed format to CAA&A
within 45 days of the close of each quarter.
• SPMU will maintain detailed books of accounts and follow a simple and
accurate accounting system.
SPMU to DPMU • SPMU will fix an imprest account for each DPMU based on a projection Savings Bank
of expenditure – typically imprest account will provide for expenditures Account of the
for 45 days or so. District Society
• DPMU will submit monthly statements of expenditure (or earlier, if
required) along with original vouchers to be accounted for at the
SPMU.
• SPMU will arrange to replenish the imprest account to the agreed limit
on receipt of SOEs.
DPMU to BPFT • DPMU will release imprest advances to Block Project Facilitation Savings Bank
Teams . Account of the
BPFT
SPMU to GP Start Up Fund GPLF’s Bank
level • The Start up fund is meant for purchase of furniture, taking up of IEC account
Federation activities, situational analysis and recurring cost of GPLF (for three operated by
(GPLF) years in declining basis i.e. Rs.12,000, Rs.9,000, Rs.6,000) President,
• SPMU will transfer the first tranche of Start-up fund (75%) to GPLF Secretary and
on submission of following documents to DPMU through BPFT. Treasurer of

Page 143 of 198


 Registration certificate along with bye law and MOA GPLF
 Plan approved by the General Body of GPLF along with
copy of the Resolution
 Signing of Umbrella Financing Agreement between
DPMU & GPLF and to the Financing agreement (Addenda-I)
 Details of Bank A/C
• The balance 25% of the Startup fund will be released on submission
of utilization certificate of 60% the first tranche certified by the General
Body.
• The amount to be released as above will be accounted for as
“Advance to G.P. level Federation” in the Books of Account of the
SPMU and will be adjusted on the basis of Utilisation Certificate and
Financial Statement submitted by GPLF, treated to be evidence of
actual use of fund.

Institutional Building Plan:

• Institutional Building Plan fund is meant for training, exposure visit,


Grants for inclusion, Grants for mobilizing of left out poor, Identification
of Community Resource persons & their training, Preparation of Micro
Investment Plan (MIP).

• SPMU will transfer the first tranche of Institutional Building fund


(40%) to GPLF upon submission of the following documents to DPMU
through BPFT.
 Institutional Plan approved by the General Body of GPLF
along with copy of the Resolution.
 Signing of to the Financing Agreement (Addenda – II)

• The Second tranche (40%) of the Institutional Building fund to


GPLF will be transferred upon qualifying the following points:
 Completion of the milestones as detailed in
the COM.
 Submission of Utilisation Certificate of the
st
60% of 1 installment certified by the Participatory Monitoring
Committee (PMC).
• The balance (20%) of the Institutional Building Fund to GPLF will
be transferred upon submission of the utilization certificate of the 60%
of 1st and 2nd installment certified by the Participating Monitoring
Committee (PMC).
• The amount to be released as above will be accounted for as

Page 144 of 198


“Advance to G.P. level Federation” In the Books of Account of the
SPMU and will be adjusted on the basis of Utilisation Certificate and
financial Statement submitted by GPLF, treated to be actual use of
fund.
Community Investment Fund (CIF)
• Community Investment fund will be released against SHG Micro
Investment Plan(s) appraised and Consolidated at GPLF
• Milestone based fund release for Productive assets, House hold
consumables, Debt swaps of SHG Members.
• Accounted for in the Books of Account as Expenditure (Funds
Releases) of SPMU.
• The 1st tranche of the CIF fund will be released on
 Approval of SHG MIP by the Executive Committee of the GPLF
 Exhibit the information on approved MIPs on Public Display
Board at GPLF
 Signing of Addenda-III to the Umbrella Financing Agreement
 Adhering to the readiness filter as described in the COM to
include.
• 1st tranche of Institutional building fund released.
• GPLF has been graded and meets the requirements of
Grade B.
 Opening of separate Bank Account for CIF at GPLF level.
 Loan tracking and management system at the GPLF level is in
place.
• The 2nd & subsequent tranches of CIF fund will be released on
 Completion of Institutional Building Plan and submission of final
utilization certificate.
 The strengthening & Sustainability plan prepared by GPLF and
1st tranche of fund released.
 Approval of SHG MIP by the Executive Committee of the GPLF
 Exhibit the information on approved MIPs on Public Display
Boards
 Signing of Addenda-V to the Umbrella Financing Agreement
 Submission of utilization certificate certified by PMC & Certificate
from Utilization Verification Committee for 1st instalment of CIF.

GPLF Strengthening & Sustainability Plan (S&S Plan)

• The fund for above activity is meant for developing business plans for
GPLF, follow up federation management trainings and capacity

Page 145 of 198


building for management of CIF, use of FMIS and financial
management reports.
• The 1st tranche (40%) of the fund will be released on
 Approval of the S&S plan by the General Body of the GPLF
 Signing of Addenda-IV to the Umbrella Financing Agreement
• The 2nd tranche of the above fund will be released on
 Submission of Utilisation Certificate of 60% of the 1st instalment
certified by the PMC & General Body of the GPLF.
 Assessment of capacity to manage loan revolving fund based on
performance indicator.
• The final tranche of the fund will be released on
 Submission of Utilisation Certificate of 60% of the1st & 2nd
instalment certified by the PMC & General Body of the GPLF.
• GPLF will maintain simplified books of accounts with the help of the
bookkeeper.

SPMU to Grants for Livelihood Sub Project Producer


Community • Livelihood sub projects appraised by SPMU with the help of DPMU for Company /
economic viability project depending upon the value chain proposals.
Based Society Bank
• SPMU & DPMU will do the institutional assessment (Includes Financial
Livelihood account
Management & Procurement Capacity assessment).
Producer operated by
• The SPMU after due check, will place the proposal before Executive
Groups (CBLP) Secretary and
Committee of the OPRM for approval.
Treasurer of
• After approval the funds for taking up the sub project will be placed to
Producer
the Producer agency in tranches depending upon the milestone against
Company /
Financing agreement signed with SPMU.
Society
• Accounted for in the Books of Account as Expenditure (Funds
Releases) of SPMU.

8.4 Staffing for Financial Management functions:

An indicative staffing structure at State, District and Block level for performing
financial management function under the project is given below:

Table-8.4
Position Level Key Roles and Responsibility
Asst. Financial Advisor State Level • Overall responsibility of coordination with
(From Orissa Finance GoO on budgetary allocation, fund releases
Service) from state treasury.
• Overall responsibility for establishing effective
fiduciary systems, including the accounting at
the level of GPLF and SHGs for the project.

Page 146 of 198


• Monitoring financial progress against annual
work plans and forecast of expenditures.
• Submission of timely Financial information to
the different stakeholders including GoO, GoI
and World Bank.
• Develop strategy and implementation plans
for capacity building in financial management
of GPLF & SHGs.
• Plan and monitor financial information flows
from GPLF & SHGs
• Responsible for financial planning and
management of the project including financial
forecasting.
Financial Management State Level • Will be responsible for management of the
Specialist (Chartered accounting at State, district and block levels
Accountant or Cost and preparation of quarterly consolidated
Accountant or MBA (Fin) or FMRs for the project.
Equivalent with at least 5 • Preparation of withdrawal claims for World
Years of experience in the Bank Credit.
managerial capacity in similar • Maintain database of financial agreements,
jobs) addendums, release of installments etc.
• Develop and update Financial Manuals.
• Arrange for auditing of Society account.
• Prepare and publish annual accounts and
financial progress reports.
• Will assist to Asst. Financial Advisor in
discharging his duty in financial &
procurement matter.
Accounts officer (CA Inter or State Level • Will be responsible for all finance &
ICWAI Inter or Master degree
accounting functions at the SPMU level &
on Commerce (60%) with
minimum 5 years experience coordinate it with all the accounting & finance
in the similar field. with all the districts & blocks functionaries.
Procurement officer (CA Inter State Level • Will be responsible for preparation of
or ICWAI Inter or Master Procurement plan & dealing with the
degree on Commerce (60%) procurement issues at SPMU level.
with minimum 5 years
experience in the similar field.
Cashier (Graduate in State level • Will be responsible for cash management at
Commerce and having at SPMU level.
least 5 Years of experience in • Prepare monthly bank reconciliation

Page 147 of 198


similar post) statements for all OPRM bank accounts.

MIS/FM Executive (CA Inter District level • Maintain database of financial agreements,
or ICWAI Inter having addendums, releases of instalments etc.
computer literacy and 3 Years • Supervise financial management capacity
of experience) building for GPLFs & SHGs.
• Review and consolidate information on
financial progress at GPLF & SHGs.
• Manage imprest funds provided by SPMU
and prepare monthly Statement of
Expenditures (SOEs) and submit the same by
10th of each month.
• Monitor the financial management aspects at
the block level and provide the report to MLE
at regular interval.
• Assist in preparing of District level annual
work plans
• Administrative matters of the District and the
block and give feedback to the state.
• Manage bank account/s at DPMU level.
MIS/FM Assistant Block level • Maintain database of financial agreements,
(CA Inter or ICWAI Inter addendums, release of instalments etc.
having computer literacy and • Implement financial management capacity
3 Years of experience) building plans for GPLFs & SHGs.
• Review and consolidate information on
financial progress at GPLFs & SHGs.
• Manage imprest funds provided by SPMU
and prepare monthly Statement of
Expenditures(SOEs) and submit the same by
10th of each month.
• Manage bank account/s at BPFT level.
• Assist in preparation of Block level annual
work plans.

Page 148 of 198


8.5 Capacity Building for performing financial management functions:

8.5.1 SPMU, DPMU & BPFT Staff:

The financial and accounting staff of SPMU, DPMU & BPFT at the State, District &
Block level will be trained in the requirements of accounting and reporting under the
project by hiring the service of any agency or by Resource person(s). The Asst.
Financial Advisor with the support of Financial Management Specialist will have the
overall responsibility for preparation of the module and schedule for building capacity
of SPMU, DPMU & BPFT staffs.

8.5.2 G. P. Level Federation:

The MIS/FM Executive will act as Accounts and Monitoring Facilitators at the G. P.
Level Federation, whom with the help of MIS/FM Assistant; DPMU will be
responsible to train the cluster Coordinator. The SPMU and DPMU account
personnel will also provide refresher training at G. P. level on regular interval. The
MIS/FM Coordinator at BPFT will have the primary responsibility of building the
capacity of the Cluster Coordinator, G.P. level Book Keepers.

8.5.3 The Team leader, BPFT with the help of MIS/FM Executive in the Block will have
the key responsibility in coordination with the Cluster Coordinator (2 Nos. in each
cluster taking 4 G.Ps as one cluster) in building the capacity of the Book Keeper
at the village level and also to constantly give hand holding support to them.
Provision of Books of account, development of standard training modules,
training of trainers etc. will be done at BPFT level with the help of DPMU &
SPMU staff.

8.5.4 The arrangements for provision of accounting support by the project to GPLFs
and SHGs will entail the following steps: (a) OPRM will undertake a market
review of the various off-the-shelf computerized accounting packages available
for GPLFs and SHGs; (b) Based on the findings of the market survey, OPRM will
seek additional assistance (if required) to make a technical assessment of
available software and the support services required for the implementation: (c)
Data entry operators will be appointed at BPFT level to work under the
supervision of the OPRM staff to set up and run accounting centres. (d) The
accounting centres will provide accounting services for GPLF and SHG to enter
primary data and generate financial reports; (e) The arrangement will be
reviewed within six months of installation of the accounting centres to ascertain

Page 149 of 198


whether the arrangements are working to a satisfactory level (90% of the GPLF
and SHGs are able to produce monthly financial reports within 15 days of the
close of each month).

8.6 Planning & Budgeting

The project’s planning process will follow a “bottom-up” approach i.e. it will grow out
of village level plans and get consolidated into district and State level annual work
plans. The project planning process of each financial year will follow the budgeting
cycle of the State and will be completed when the project estimates are included in
the State Budget, presented and approved by the State Legislature. The project will
be budgeted as a separate line in the State Budget and the funds will be released to
the State in line with Standard Financial Procedure.

8.7 Accounting Policies and Procedures

8.7.1 Complete accounts in respect of the monetary transactions of the State


implementing mission in the headquarters office as well as in the subordinate
offices shall be maintained on cash basis following double entry book keeping
principle.
8.7.2 All release of funds from SPMU to the G. P. level Federation against approved
annual Work Plan and budget will be treated as grant. Further during the initial
period of the project the funds from SPMU to DPMU will be released as
“Advance To DPMU”. The consolidation of project financial statements will be
done at SPMU on monthly basis and submitted to GoO, GoI & World Bank on a
quarterly basis.The DPMU will release the imprest advance to Block Facilitation
Teams.
8.7.3 Financial Management Manual (FMM) will be prepared detailing the accounting
and financial reporting requirements (including the form and contents of the
FMRs) for the SPMU and Subordinate offices. 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 Implementing Mission.
8.7.4 Community Operation Manual (COM) covers in detail the process of managing
the community level finances and maintaining accounts. The COM contain detail
of the fund flow, accounting and reporting requirement of Federations and
Community level. Formats of the books and registers have been given in the
Community Operation manual.

8.8 Internal Control

Page 150 of 198


8.8.1 OPRM Financial Rules & Regulation has been prepared with delegation of
financial powers, authorities and payment responsibilities.

8.8.2 The State Project Director and Specialist, Financial Management will issue office
orders and guidelines from time to time. The FMM has elaborated the approval
processes for specific project activities. The project will review these
arrangements periodically and make suitable amendments as needed for smooth
project implementation.

8.8.3 The other key internal control mechanisms are:

• Performance standards for certification of milestones and release of


payments.
• Each accounting will close the books of accounts within a specified
number of days of the close of each month, reconcile its balances with bank
statements and books of accounts and forward the same to the next level of
authority in the institutional hierarchy, and State Society will provide oversight
on the qualitative and timeliness aspects of the reporting.
• At the G.P. level federation, Community Based Livelihood Producer
Groups and SHG levels, recording of all financial decisions in the minute
books, public displays of financial information, access of accounting records
to all members and social audit procedures will ensure that transparency and
oversight functions are maintained.

8.9 Audit Arrangements

8.9.1 Statutory Audit

(i) The SPMU will appoint an independent firm of chartered accountants as per
agreed selection criteria and acceptable to the World Bank to conduct
statutory annual audit of the project. The audit would cover all project
operations. The ToR for the auditors, as agreed with the World Bank will be
annexed with the financial management Manual of the Project.

(ii) The audit report will consist of:

• financial statements and


• audit opinion confirming whether the project financial statements have
been prepared in accordance with consistently applied Accounting
Standards and give a true and fair view of the operations of the project

Page 151 of 198


during the year and that the withdrawals from the World Bank Grant made
on the basis of SOEs together with the FMRs procedures and internal
controls involved in their preparation, can be relied on to support the
related withdrawals.

8.9.2 Additionally, the auditor will be required to provide a management letter to project
management-highlighting findings during the audit. The audit will be conducted
as per the national accounting standards.

8.9.3 The audit report with the management letter will be submitted to World Bank
within six months of the close of each financial year. ToR for the audit will be
prepared in agreement with World Bank and will be agreed upon with the audit
firm/s. The form of annual financial statements to be certified will also be covered
in the ToR.

8.9.4 The general body of the G. P. Level Federation, Community Based


Livelihood Producer Groups will appoint chartered accountants as per selection
criteria agreed with OPRM and the World Bank (As per the document in COM) to
conduct annual audit and submit the Annual Reports along with audited
statement of account & utilization certificate within six months from the close of
the financial year otherwise no project fund will be released further.

8.9.5 Apart from the above the auditors appointed by the SPMU will be taken up 10%
sample audit of the G.P. Level Federations, Community Based Livelihood
Producer Groups and give an opinion on the adherence of the Project Financial
management, Procurement rules & regulation.

8.9.6 Internal Audit

The project accounts will also be subjected to quarterly internal audit. A firm of chartered
accountants will be engaged by the SPMU to conduct a quarterly audit of the State,
DPMUs and BPFT and submit letters to the Management. The ToR of the internal audit
task have been drafted and included in the Financial Management Manual. The key
functions of internal audit are:

• Ascertain whether the systems of internal checks and controls operating


are effective
• Ascertain reliability of accounting financial reports
• Ascertain the extent to which the systems in place prevent misuse of
project assets
• Ascertain whether the financial rules and procedures as laid down in the
Manuals followed.

Page 152 of 198


8.9.7 Participatory Monitoring

The GPLF Auditor directly appointed by the G.P level federation will also include
financial reviews on all aspects of quality, quantity and procurement. The auditor will
report the findings directly to the General Body of the Federations along with
recommendations for rectifying short falls. The Auditor will ensure transparency and
accountability of project implementation at the G.P. & village level. The auditor will
undertake review of the financial aspects of the functioning of Federations, Community
Based Livelihood Producer Groups & SHGs will be undertaken

8.10 Reporting and Monitoring

The monthly reporting formats from each of the accounting centres have been designed
to provide summarized monthly financial information on the fund flows, balances in
cash/bank, status of advances and expenditures classified by project
components/activities, disbursement categories, procurement methods etc. These
reports will be compiled by the SPMU on the monthly basis to provide meaningful FMRs.
An important aspect of the reports would be that the information on the number of
village-wise livelihoods business plans approved, value of the business plans, releases
made against the agreed milestones, status of financial reports submitted by
Federations, Producer organisations will be monitored. These reports will be prepared
from the initiation of the project, submitted to World Bank within 45 days of the close of
the quarter and used by the project at the State and District level and by World Bank for
monitoring and management decision making.

8.11 The detailed formats for the reports at all levels are provided in the Financial
Management Manual. The summary details of various reports to be generated at
the different levels are given below.

Page 153 of 198


Table-8.5

No Name of Statement Originating Submitted to Frequency


From
1 Financial Management Report SPMU World Bank Quarterly
2 Annual Audited Financial SPMU World Bank Annual
Statements
3 Consolidated Project Financial SPMU SPMU Monthly
Management Reports
4 Statements of Expenditures DPMU SPMU Monthly
With Bank Reconciliation
Statements
5 Statements of Expenditures BPFT DPMU Monthly

6 Monthly Financial Report Federations DPMU through Monthly


at G.P. level BPFT
and
Community
Based
Livelihood
Producer
Groups

8.12 Public Display of Information

The financial management arrangements at the G.P. and village level will ensure
complete transparency and accountability. In addition to it for better transparency, a
simple summary of accounts will be publicly displayed in the village. The
books/registers, voucher will be maintained properly and the bank passbook will be
operated by the members.

8.13 Computerized Accounting System

The account at SPMU, DPMU & BPFT level will be maintained in the upto date TALLY
accounting software. The SPMU will procure the software and modify it with the help of
the vendor. The same software will installed at the State, District & Block level.

Page 154 of 198


Chapter 9. Procurement Procedure

9.1 Objective

Following are the main principles universally accepted and followed:

 Need for economy and efficiency


 Need for high quality services
 Fair opportunity to all eligible bidders
 Development of domestic contracting, manufacturing and consulting firms
 Transparency in the procurement process

This Document has been prepared to provide standard guideline for procurement of
goods, works and services by the State project Monitoring Unit (SPMU), District
Project Monitoring Units (DPMUs) and Community Based Organisations ( G.P. level
Federation, Producer agencies & SHGs) out of the fund available for the project
implementation. Details of procurement procedures that will apply are given in the
Procurement Manual. All agencies engaged in project implementation should study
the Manual carefully and ensure compliance.

9.2 Procurement Policy

Procurement of all goods, works and services will be carried out in accordance with the
World Bank’s "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May
2004, revised October, 2006 (Procurement Guidelines); and "Guidelines: Selection and
Employment of Consultants by World Bank Borrowers" dated May 2004, revised
October, 2006 (Consultancy Guidelines) and the agreed procedures described in the
Legal Agreements. The details pertaining to procedures and methods to be followed for
procurement contained in this chapter and in the Procurement Manual are condensed
only for ready reference of all agencies, specifically the G.P. Level Federation, producer
agencies who will follow community based procedures described in detail. In case of any
contradictions between these with Bank’s Procurement and Consultancy Guidelines, the
Bank’s Guidelines as referred to above will supersede.

Page 155 of 198


9.3 IMPORTANT PRINCIPLES OF PROCUREMENT UNDER BANK FUNDED
PROJECT:

9.3.1 Equitable opportunity to all eligible bidders without regional preferences and
all the bidders have the same information to compete in providing goods and
works. Foreign bidders will not be precluded from bidding against NCBs
issued. NCBs for procurement of works may require the bidders to offer bid
prices in local currency.
9.3.2 No preference shall be given to any bidder other than domestic preference in
case of ICB. Open competition is the basis for efficient public procurement.
9.3.3 Bids will not be rejected at the sole discretion of any authority. Reason of
rejection must be disclosed to the bidders.
9.3.4 There will be no requirement of registration with State Departments for
participation in the bidding process under the project.
9.3.5 Award of contract shall be made to the lowest evaluated responsive bidder,
who is qualified and capable to perform and not necessarily to the lowest
bidder.
9.3.6 The result of bidding process shall be disclosed to all bidders, through details
placed on the website. Reasons for rejection of bids shall be given to the
bidders.
9.3.7 No exemption will be given to any organization, from submission of Bid
Security, as these amounts to unfair advantage to the beneficiary of such
exception.
9.3.8 Works contracts shall be awarded to competent and capable contractors and
the contractor shall be responsible for supply of all materials. No materials
shall be transferred by the employer either on free issue or on issue rate
basis. Contractor will not be forced to procure materials from any specified
firms or agencies. For this purpose, the Bidding Documents shall stipulate
clear and elaborate Specifications and provisions relating to Inspection for the
purpose of ensuring Quality Control and testing Facilities for compliance with
the Specifications and the agencies responsible for procurement and
implementation will ensure compliance.
9.3.9 The following provisions shall also apply and shall be suitably incorporated in
the bidding documents for bids invited on NCB basis.

Page 156 of 198


9.3.10 Only the model bidding documents for NCB agreed with the Bank [and as
amended from time to time], shall be used for bidding.
9.3.11 Invitations to bid shall be advertised in at least one widely circulated national
daily newspaper, at least 30 days prior to the deadline for the submission of
bids.
9.3.12 No Special preference will be accorded to any bidder either for price or for
other terms and conditions when competing with foreign bidders, state-owned
enterprises, small-scale enterprises or enterprises from any given State.
9.3.13 Except with the prior concurrence of the Bank, there shall be no negotiation
of price with the bidders, even with the lowest evaluated bidder.
 Extension of bid validity shall not be allowed without the prior concurrence of
the Bank (a) for the first request for extension if it is longer than four weeks;
and (b) for all subsequent requests for extension irrespective of the period
(such concurrence will be considered by Bank only in cases of force major
and circumstances beyond the control of the Purchaser/Employer);
 E-bidding shall not be carried out without the prior concurrence of the Bank.
The system of rejecting bids outside a pre-determined margin or “bracket” of
prices shall not be used in the project;
 Rate contracts entered into by Directorate General of Supplies & Disposals
will not be acceptable as a substitute for NCB procedures. Such contracts will
be acceptable however for any procurement under Shopping procedures;
 Two or three envelope system will not be used.
 For the purpose of engaging services of consultants, the procedure, as
outlined in the Procurement Manual, shall be followed.

9.4 Methods of procurement

9.4.1 Goods and Works: Depending upon the threshold level given in the Manual and
the nature of item to be procured, the following methods procurement for Goods and
Works will apply:
 International Competitive Bidding (ICB)
 National competitive Bidding (NCB)
 Shopping Procedure (SP)
 Direct contracting (DC)
 Procurement by Community participation

Page 157 of 198


 Procurement of Services

9.4.2 Procurement of Consultancy Services:

Followings are the methods that would be adopted for selection of the consultants:
 Quality- and Cost-Based Selection (QCBS)
 Quality-Based Selection (QBS)
 Selection under a Fixed Budget (FBS)
 Least-Cost Selection (LCS)
 Selection Based on Consultant’s Qualifications (CQS)
 Single-Source Selection (SSS)
 Selection of individual consultants

9.4.3 The choice of the appropriate method will depend on the nature, size, and
complexity of the assignment; the likely downstream impact of the assignment; and
technical and financial considerations. Every step is elaborated in details in the
Procurement Manual

9.5 Procurement plan


Procurement Plan for the first 18 months is given in annexure - III

9.6 Procurement agencies at different levels


Different procurement agencies responsible for procurement under the project will be:

9.6.1 State Project Monitoring Unit (SPMU).

All items/training services and consultancies under the project will be procured
by SPMU. SPMU will prepare specifications, ToR, call quotations/invite bids,
evaluate, seek necessary approvals/clearances and award contracts; review
performance/assure quality and arrange for timely payment, and ensure
appropriate documentation /audits /utilization of resources and will be
accountable for these activities. This unit will also be responsible for hiring
human resource development agency for recruitment of records management
staff following standard procedure mentioned in the procurement manual. In
addition the SPMU will also coordinate the responsibilities assigned to the
DPMUs and shall liaise with any external agencies including the Bank on behalf
of the Government of Orissa and all its agencies responsible for project

Page 158 of 198


implementation. Presently there is one Specialist who has been engaged to look
after procurement and financial management functions. It is decided that to
recruit one Accounts officer for looking after financial management and one
procurement officer for looking after the Procurement issues under the Project.
During initial period of implementation of the project they will be imparted with
training on Bank procurement procedures. At State level there will be a State
Procurement Committee headed by the State Project Director to evaluate and
finalise the procurement procedures , where the value of the procurement is
more than Rs.50,000/-. The details Procurement method for Community level
procurement to be followed along with threshold value has been described in the
Procurement manual.

9.6.2 District Project Monitoring Unit (DPMU) & Block Project Facilitation
Team (BPFT)

All the procurement under the project for DPMU & BPFT will be decided by
SPMU. During the implementation of the Project if required certain procurement
of Goods/Services may be taken up at the DPMU level. However no procurement
will be done at the BPFT level. SPMU will be responsible to take decision on the
type of Goods / Services to be procured with appropriate ceiling, method of
procurement, documentation etc.
It is the responsibility of the BPFT to collect market rates called “ Rate Chart”
for the likely goods, works & services to be procured by the community Based
Organisations. The Rate Chart will be periodically (preferably in every 6 months)
or there is a sudden change in the market rates. The database of Rate Chart for
different blocks under the district will be kept at the DPMU level and review it
regularly by the District project manager and MIS/FM executive. The details
Procurement method for Community level procurement to be followed along with
threshold value has been described in the Procurement manual

9.6.3 Community Based Organisations (G.P. Level federation, Producer


Agencies, SHGs)

At the Community Based Organisations level the Procurement Committee will be


responsible for selecting the proper procurement method in respect of Goods,
Works & Services as to be procured under the project. There will be an Utilisation

Page 159 of 198


Verification Committee to verify the existence, ownership, Insurance Coverage of
the Asset created out of project fund.

Key Rules of Community Procurement

A. Transparency:
B. Equal opportunity for all Suppliers:
C. Accountability:
D. Ensuring Value for Money:
E. Avoid procurement of items from Friends and Relatives:
F. No undue benefits for anyone

One of the most important activities in implementing a livelihood/business plan is


procuring goods, works, materials and other support services required for
implementing the business plan. The respective Procurement committee at the
Community level organizations will select the procurement methods in
considering the economy and efficiency. All procurement procedures must be
carried in an open and transparent manner by displaying all details of
procurement at prominent places in the village. Transparency mechanisms for
procurement need to be there from the beginning and not only when
procurement takes place. Every body should have access to know the process,
parties involved, prices offered by them, method to select the party and details of
selected parties & product. Further while doing any procurement the community
based organizations will utilize the standard price lists called “Rate Chart”
maintained by BPFT on market rates. The details Procurement method for
Community level procurement to be followed along with threshold value has been
described in the COM. A schematic diagram depicting these methods is given
below.

Community
Procurement

Procuremen Works
t in one or
more lots
Goods
Local Labour
Rate
Market Survey/ (Muster
Roll)
Rate Chart
Material for
works
Page 160 of 198
9.7 Procurement Risk Mitigation Action Plan

At the beginning of the project the Bank carried out an assessment of procurement
capacity and risk associated with the project. It has been agreed with the Bank that the
Government of Orissa will carry out all risk mitigation measures as per the details and
program is depicted in annexure - IV

9.8 Principles of Procurement at Community level

(i) Village level transparency


All procurement procedure must be carried in an open and transparent manner &
displaying all details of procurement at prominent places in the village. Every body
should have assess to know the process, parties involved, price offered by them,
details of selected parties & product.
(ii) Equal opportunity must be given to all suppliers interested in supplying items to
the Community based organization and uniform evaluation procedure must be
adopted.
(iii) Service area, guarantee period must be ensured for the materials to be
purchased.

9.9 Post review by World Bank

(i) All the procurement documents at all levels shall retain up to five years after
the close of the loan agreement with Bank.
(ii) The bank shall cause a post review of the contracts awarded on procurement
of goods, works & services by the programme implementing agency in the
state.

9.10 Complaint Handling Mechanism

In order to deal with complaint received from Contractors/Suppliers effectively, a


complaint handling mechanism will be available at the State Project office headed by the
Communication cum Redressal Officer and immediate action will be initiated on receipt
of complaints to redress grievances. Similarly at the G.P. Level the Participatory
Monitoring Committee at the G.P. Level Federation will deal with all the complaints of the
community.

Page 161 of 198


Chapter 10. Communication Strategy

BACKGROUND

TRIPTI (Targeted Rural Initiatives for Poverty Termination and Infrastructure) aims at
reducing poverty through the establishment of effective village and Gram Panchayat
level institutions, and empowering them, so that they can resolve local issues
independently by utilising their own local resources. In the normal course of
implementation of a project like TRIPTI, communication tends to play the role of a pure
support function. The communication is seen broadly in the perspective of
correspondence, and the traditional “IEC” campaign approach . The concern with this
kind of approach is that it did not exploit the potential of communication to become a tool
to enhance the programme implementation and desired outcomes.

In fact, communication in a development project has the potential to be a powerful tool


that can improve the chances of success of the project. It is not just about sending
information from one stakeholder group to another when asked for it, rather it is about
communicating in a strategic and systematic manner. The goal, objectives of the project
needs to be well understood by the target community so that their participation will
increase. It creates space for stakeholders to provide regular opinion about the project
and give feedback and suggestions. It also plays a key role in determining transparency
and accountability within the project. Thus, not only are we talking of countering the
possibilities of miscommunication, but also of lack of communication.

Communication in TRIPTI is envisaged as a critical aspect of project implementation and


is seen as embedded within the core of the project and not as add on from outside of its
core activities. The communication strategy is linked closely, and has several overlaps,
with the project components of institution building and capacity building. In the context of
the project implementation team, communication is seen through the lens of learning
and reflection and as a human resource management component of motivation and
growth.

10.1 DESIGNING THE COMMUNICATION STRATEGY

In a large development project like TRIPTI which encompasses a wide geographical


area and involves several tiers and numbers of people in its implementation, it is not
adequate for the central team to give a blank commitment for better communication
during the project period. It requires a strategy for systematic and concerted
communication effort.

Some of the principles used to design this communication strategy are:


• The communication strategy and action plan is integrated with the long-term strategy
of TRIPTI.

Page 162 of 198


• The communication activities are proposed in a way that they can be realistically
carried out by the TRIPTI team along with the livelihood and savings related activities
of the project.
• The strategy aims to provide space for communication in both directions between the
project team and stakeholders, creating opportunities for information as well as
feedback and suggestions.
• The communication strategy goes back a few steps before creating “IEC” material
(i.e. the end product) to the drawing board to understand the why and wherefore of
communication.
• The communication strategy has been designed as an evolving one, responding to
the needs of different target groups at every stage. The plan laid out here is based
on a current forecast of the way things will plan out over the project period.
• The core team responsible for undertaking communication work will be: State level –
Communication and grievance redressal officer, District level – District project
manager, Block level Block team leader .
• At the Gram Panchayat Federation level, there will be concerted inputs to enhance
their members’ capacities to undertake communication activities in a mode of
increasing participation.
• The communication material and methods will be adapted to the local context and
will factor in cultural and geographical differences.

The communication strategy and plan applies to the entire project area of 38 blocks in
ten costal districts – Angul, Jajpur, Bhadrak, Balasore, Kendrapada, Jagatsinghpur,
Cuttack, Puri, Khurda and Nayagarh. Out of it the tribal population in the districts like
Anugul and Nayagargh is more and some of the target blocks in the two Districts are
completely dominated by the tribals .The communication strategy for these sections of
the community will be different from the other blocks. The leaflet and the news letters for
these community needs to be developed in the local language.

10.2 OBJECTIVE

• To create channels and means of communication among TRIPTI’s stakeholders


which enhance the efficacy of the project.
• To use communication as a means for learning and growth among the TRIPTI team
members.
• To build the capacity of village level women’s’ group and federations to undertake
communication activities themselves.

10.3 TARGET GROUPS

The target group of TRIPTI are classified into three types as:
• Primary target group
• Secondary target group

Page 163 of 198


• Tertiary target group
The categorisation of these groups depends upon the benefit that goes in the project.
The secondary and the tertiary stakeholders though have a great role in the project but
their involvement will be very indirect.

10.3.1 Primary target groups

Target groups whose participation is critical for the success of TRIPTI and are constantly
involved in its implementation have been identified as:
• Women members of self-help groups in the selected villages
• Women members of producer groups in the selected villages
• Women entrepreneurs in the selected villages
• Physically challenged men and women in the selected villages
• Cluster coordinators
• Members of gram panchayat level federations (GPLF)
• The World Bank
• TRIPTI project team at the state, district and block levels
• State level bureaucrats

10.3.2 Secondary target groups

Secondary target groups who have an interest and opinion about TRIPTI, but are not
involved on a regular basis in operationalising it have been identified as the following:
• Gram Panchayat level –Village level workers as panchayat secretary, health worker
and agriculture extension worker.
• Block level – Block Development Officers, Block President, Anganwadi workers and
supervisors, Community Development Project Officers, Panchayati Raj
representatives
• District level – District Collector, District Social Welfare Officer, Project director
DRDA, Head of Zilla Parishad and other Panchayati Raj functionaries, line staff of
other government departments
• State level – political representatives, ministers ,Other line departments at the state
level

10.3.3 Tertiary target groups


The target groups that need to be communicated with in order to enhance their
understanding of the project and who have a right to know about the progress of the
project in a larger framework of right to information, form the tertiary target groups.
These groups may or may not want to communicate with the implementers of the project
and have to be specially given a platform to elicit their opinion. They include:
• Media
• The public at large (especially in the project districts)

Page 164 of 198


• Members of other state, district and block level agencies who have an interest in
poverty reduction through micro-enterprise and livelihoods enhancement – other
NGOs, MFIs, banks, cooperatives and their federations, research institutions, etcs
• The project staffs of the other states who are implementing the same type of the
project

Keeping the different stakeholders into account the communication strategy will be an
integral part in the different phase of the project.

10.4 PRE-IMPLEMENTATION PHASE

TRIPTI is scheduled to be launched from 1 June 2008. The period before the
implementation of the project is significant in creating an acceptance and clarity about
the project among its stakeholders. This is envisaged to create better convergence of
the project with related components. The focus of communication in this phase is
clarification of TRIPTI’s mission, vision and goal, strengthen the operational plan for the
project, and creating a favourable climate towards the project among stakeholders.

In this direction, a consultative workshop was held in Bhubaneswar on 7 September


2007, to gain feedback on the proposed model of TRIPTI which would contribute to fine-
tuning the project design elements. Participants at the workshop were members of
TRIPTI team, World Bank, other local NGOs, research organisations, banks and MFIs.
They drew from their experience of poverty alleviation initiatives

Who? Why? How?


State level
State level agencies • To draw from their • A consultative
(banks, academic experience and knowledge workshop was
institutions, NGOs, in poverty reduction and to organised with a large
research organisations, engage them in a discussion group of stakeholders
corporate bodies) on the effectiveness of the on 7 September ’07
proposal of TRIPTI (details mentioned
above). Dialogue as
follow up of the
workshop continues
with this group verbally
and through electronic
medium
Bureaucrats, political • To integrate the different • The government
representatives, departments of the department members
government departments government and make them are already aware of
aware about the TRIPTI. A brief email is
implementation of TRIPTI. suggested to all
• To obtain sanctions and department heads just
approvals for the pre- prior to the launch of
implementation activities the project informing
• Political representatives them about the
have wide outreach in their implementation plan.
constituencies and getting • Written communication

Page 165 of 198


Who? Why? How?
their sanction is an effective is underway mainly for
to create a positive climate the purpose of
about the project obtaining approvals and
sanctions for
purchases, etc.
• It is proposed to reach
out to political
representatives with a
letter from the team
informing them about
the mission, vision and
plan of the project.
Media • To reach out to a large • A press conference will
number of people with be organised just prior
information about the to the launch of TRIPTI
proposed project in which media persons
from English and local
media (print, radio and
electronic) will be
invited and will be told
about the mission,
vision and objectives of
TRIPTI and its
coverage area.
World Bank • To obtain support and • Electronic and verbal,
capacity building inputs in one-to-one
preparation for the communication is
implementation and to ongoing
undertake negotiations
regarding operational issues
TRIPTI project team • To clarify the vision/mission • Meetings and joint
of the project workshops regarding
• To orient the team about the different elements of
different elements of the the campaign across
project the different levels of
• To elicit participation in the project.
designing the project
Category: District level
District level agencies • To draw from their • Consultative workshop
(including banks, NGOs experience of working in the in which heads of other
and cooperatives) block and to orient them to line departments will
the proposed project of also be present
TRIPTI
District Collector and • They are the most important
Project Director, DRDA link between the project
team at the state level and
the target group of TRIPTI at
the block and village level

Page 166 of 198


Who? Why? How?
District Social Welfare • DSWO is also an important
Officer (DSWO) link between the state and
the target group. The DSWO
role is especially geared
towards social development
in the district, including SHG
development.
Panchayati raj • Through them we can get in
functionaries touch with a large number of
people in TRIPTI’s primary
target outreach base in the
district.
Block level
Block level agencies • To draw from their • Consultative workshop
(banks, NGOs, experience and to elicit in the presence of
cooperatives) participation from them in District Collector
the implementation of wherever possible
TRIPTI
Block Development • They are a key contact point
Officers and Community in the block who can help
Development Project disseminate information to
Officers other line departments in the
block
Cluster coordinators and • They are the most important • Block and district level
gram panchayat level link between the TRIPTI meetings to clarify
federation members project team and primary mission, vision and plan
stakeholders. They are of the project and the
envisioned to take the role they are expected
project forward after its to play
formal implementation.
Anganwadi workers • They are the key resource • Leaflets communicating
persons who are directly the mission, vision,
dealing with primary targets and objectives
stakeholders and are of TRIPTI
involved in the formation and
strengthening of SHGs
Panchayati raj • They have a wide outreach
representatives among TRIPTI’s primary
stakeholders at the village
level.

10.5 IMPLEMENTATION PHASE

The duration of the implementation phase is from 1 June 2008 to 30 June 2013. The
focus of communication in the implementation phase is to ensure the smooth functioning
of the project and to enhance its effectiveness. Alongside, during implementation of the
project, the capacity of GPLF members and community coordinators to undertake
communication activities will be enhanced. Communication will be an integral part of the
project components of institutional building and community investment fund.

Page 167 of 198


Who? Why? How?
State level

Page 168 of 198


Who? Why? How?
State level agencies • Share the progress of • Annual meetings and half
(banks, academic the project with them yearly newsletters
institutions, NGOs, and elicit suggestions
research organisations, for course corrections
corporate bodies)
Bureaucrats, political • Approvals and consent • Written communication for
representatives, from bureaucrats will approvals and sanctions.
government continue. They will also • Half-yearly newsletters about
departments be updated about the progress of project
progress of the project • Brief presentations during
• To reach out to the government meetings
constituencies of
political representatives
with information about
the project
Media • To enhance outreach of • Press release every 6 months.
information to the • Media will be invited to all
general public about events and workshops.
best practices and • Radio and TV spots
achievements
World Bank • Resource support and • Quarterly progress reports,
to share progress status good practices reports as and
when prepared
TRIPTI project team • Internal sharing, • Monthly meetings and email
(across all levels) learning and course circulation of compiled
correction individual reports
District level
District level agencies • Better linkage with • Annual experience sharing
(including banks, target groups since they meetings and newsletters
NGOs and are working in the target
cooperatives) areas and to elicit
suggestions for course
corrections
District Collector and
Project Director, DRDA

Page 169 of 198


Who? Why? How?
District Social Welfare • Clarify concepts, vision • Newsletter and annual
Officer (DSWO) and mission of TRIPTI consultative workshops
from time to time (since
staff keeps changing)
and to keep them
updated about the
progress of the report.
Panchayati raj • To share progress of • Meetings and newsletters
functionaries TRIPTI and to help take
this information to a
large stakeholder base.
Block level
Block level agencies • Better linkage with • Annual workshop and interface
(banks, NGOs, target groups since they with GPLF members,
cooperatives) are working in the target newsletter
areas and to elicit
suggestions for course
corrections
Block Development • People in the block • Half-yearly experience sharing
Officers and have long-term and consultative workshops,
Community association with them newsletter
Development Project and have a certain trust
Officers in their word. By
keeping them informed
about the progress of
TRIPTI the project can
ensure that it reaches
out to a large target
base. The BDO also
has authority to instruct
for action in the block.

Cluster coordinators • They are the key link • Meetings and workshops about
and gram panchayat between the TRIPTI implementation of TRIPTI
level federation team and the primary • Communication training and
members stakeholders and are workshops dedicated to
responsible for creating communication
implementation of the material and

Page 170 of 198


Who? Why? How?
project at the primary • Newsletter about progress of
level. the project (GPLF will provide
• They will be taking on inputs for the newsletter)
the responsibility of
communication in an
escalating way during
the course of the
project.
Anganwadi workers • They are in direct touch • Newsletter about progress of
with the primary project
stakeholder groups • Posters about progress of
since part of their project and its different aspects
responsibility is to form
and strengthen SHGs.
Panchayati raj • Samiti members, ward • Posters/leaflets/newsletters/A/v
representatives members and Sarpanch material
are a strong link with • One-to-one interaction in
the community meetings
Village level
Women SHG members • It is imperative to • Village meetings attended by
Producer groups
communicate on a staff (especially community
Entrepreneurs
Physically challenged regular basis with the coordinators)
primary stakeholders at • A/v on livelihood options
the village level to • Annual GPLF meet where they
ensure greater can exchange experience as
participation in and well as showcase products
effective implementation • Trade-based exchange meet of
and ownership of the
entrepreneurs
project. It is hoped that
• Large melas to showcase
the primary institutions
community produced material
will be strengthened so
(could be organised in
that the TRIPTI village
collaboration with ORMAS)
level model can be
• Participation in cultural
replicated elsewhere by
functions in villages
their initiative.

10.6 WEBSITE

Page 171 of 198


A website in English and Oriya will be developed and managed by the State level team
(through a hired agency). The website will cater to the public at large, especially in the
project districts. The web site will be updated regularly by putting the information as
major learning, reports and the achievements of the project .The website development
and its maintenance is a part of communication strategy but the cost will be included as
a part of monitoring and evaluation . The major aspects to be included in the web site
are as follows:
• Information about the mission, vision and coverage of TRIPTI.
• Progress report of TRIPTI.
• Success stories and best practices documentation.
• Information about products made by entrepreneurs.
• Space for suggestions and opinion from visitors.
• Space for airing grievances.
• Contact information of TRIPTI team at different levels.

10.7 Toll-free phone line

A grievance and information phone line will be set up on which people from all over the
state can call free of charge. They can seek information about the project, express
interest in being part of it, and express discontentment about the way it is being
implemented. The tool free telephone no will be handled at the state level under the
direct supervision of communication and grievance redressal officer at the state level .

10.8 POST-IMPLEMENTATION

The gram panchayat level federations (GPLF) are envisaged to play the lead role in
post-implementation activities, including communication. During the implementation of
the project GPLF members will be taken through a systematic process of training and
handholding in understanding communication and creating communication and
dissemination material. Communication will go hand-in-hand and complement other
aspects of the GPLF’s role e.g. take the TRIPTI model to other blocks and districts,
attract benefits from the State for livelihood enterprises, initiate SHG activities in other
areas, mobilisation of funds, etc.
The communication is a continuation activity and it brings a harmony and cohesiveness
among the community to implement the programme in an effective manner.

Page 172 of 198


11. ENVIRONMENT MANAGEMENT FRAME WORK

BACKGROUND
There are always three distinct development interests in any community-economic
development, community development, and ecological development. Each of these
processes has its own distinct imperatives. The model given below shows the
interelationships between community development, economic development and
ecological (environmental) development which needs to be recognized and understood
in order to achieve sustainable development.

Imperatives:
Sustain economic growth
Maximize private profit
Economic Development Expand markets
Externalize costs

Community Conservationism
Economic
Development

Sustainable Development

Community Development
Ecological Development

Imperatives: Imperatives:
Increase local self-reliance Respect carrying capacity
Satisfy basic human needs Conserve and recycle resources
Increase equity Reduce waste
Guarantee participation and Sustained use of Biodiversity
accountability
Use appropriate technology
Page 173 of 198
It can be seen from the above figure that, quite evidently, all three need to be addressed
adequately in order to achieve all round sustainable development. Clearly, in conditions
such those in rural India, the challenge is quite imposing. The figure below illustrates
how peer pressures arising from different components constituting the complex village
communities in Indian villages could act together to ultimately reduce or even arrest
environmental degradation that might result as a consequence livelihoods project.

A box model linking the livelihood options to the Environmental issues through
Driving force-Pressure-State-Impacts and Response

Trends of change (Pressure) on


Evolutionary & village ecosystems due to human
Natural Processes activities affecting productive
assets, Environmental Quality, life
support system

Driving Forces:
Basic Sectoral trends
Present State of the
affecting system
Environmental Set
structure & function
Up (State) due to the
change

Societal Response for restoration &


to address environmental problems Impacts of the
linking to livelihood options for pressure leading to
sustainable development system change

CAUSE EFFECT

THE ENVIRONMENT MANAGEMENT FRAMEWORK


The objective of TRIPTI is to generate more and more opportunities for sustainable
employment or livelihoods options for the poorest sections of the population in the
targeted villages. The project will accomplish this objective through a participatory and
community-driven process. In order to ensure that the environment is not compromised
in the process of livelihood generation, an Environmental Management Framework
(EMF) has been developed for the project. The framework approach has been adopted
so that the environmental aspects can be addressed with clarity and simplicity for the
vast range of livelihood activities that could be potentially proposed by the communities
and supported by the TRIPTI.

Page 174 of 198


The EMF lays out the procedures pertaining to conducting environmental assessment of
the sub-project proposals submitted under the TRIPTI, which are to be sanctioned
during the implementing phase. Considering the ‘B’ category environmental status of the
TRIPTI, grant of environmental approval is deemed mandatory for all sub-projects
sanctioned under this project. Therefore environmental approval becomes a pre-
condition for grant of approval to any sub-project loan application considered for
sanction under the TRIPTI. The EMF provides appropriate procedures and assessment
tools for use during proposing, scrutinizing, approving, implementing and monitoring the
different sub-projects.
The specific objectives of this EMF are:

• To mitigate adverse environmental impacts of proposed sub-projects.

• To enhance the environmental benefits of sub-projects and promote livelihood


activities those are environment enhancing.

• To ensure the long term sustainability of benefits from sub-projects by securing


natural resource base on which they are dependant
TECHNICAL ENVIRONMENTAL GUIDELINES
Technical Environmental Guidelines (TEGs) have been formulated to facilitate
mainstreaming of environmental safeguards at all levels of project implementation. The
guidelines provide specific instructions on do’s and don’ts for undertaking the activity in
question in an environment friendly manner. They also recommend best practices that
could be adopted to undertake these activities in a manner that causes minimal harm to
the environment. Each TEG pertains to a specific livelihood activity likely to be
undertaken in the project. For activities that may not figure in the list of likely activities, a
Generic TEG has been prepared to provide guidance to the implementing team on
determining the level of assessment. (Refer to the Environment Assessment Report of
ISEA Study for details on TEGs)
Format of TEG:
The TEG format was prepared such that important information pertaining to each activity
is available at a glance. Given below is a typical TEG format designed for this study. As
can be observed, each TEG has a unique number and pertains to a particular livelihood
activity. The left hand side section analyzes the likely impact on elements such as land,
water, air and ecology. The box on the top right corner gives the overall classification of
the activity in terms of the level of its likely impact on the environment.

Page 175 of 198


TEG
NO LIVELIHOOD LIVELIHOOD OVERALL
ACTIVITY CATEGORY ACTIVITY TITLE ASSESSMENT LEVEL
This
section
summariz
es Elements Extent of Displays
Reason Specific guidelines Best practices
assesses affected impact estimated
the likely level of
Air impact on
impact of
this environm
activity on Water ent
various
elements Land
that
constitute
the Ecology
environm
ent Others, if
any

Space for additional comments and remarks

The central box provides specific guidelines and legal conditions, if any, that should
be adhered to while undertaking the activity in order to minimize and / or mitigate its
environmental impacts. The box on the right of this suggests best practices that
could be adopted to further enhance their benefit not only to the environment but
also the user.

In case the proposed sub-project proposals contain ideas that do not figure in the list of
likely sub-projects included in the TEGs (consequently, no TEG being available for the
same), the EMF defines a procedure to assess the same from the environmental point of
view and grant or reject environmental approval for the same.

11.1 ENVIRONMENTAL SCRUTINY AND APPROVAL PROCESS

11.1.1 ENVIRONMENTAL APPROVAL

The Environmental Appraisal process is designed such that the existing institutional
structure is able to handle the function independently. Please refer to section 11.1.4 for a
diagrammatic representation of the process and institutional structure. The process
begins at the sub-project level with each sub-project appraised against a screening
format given in annexure-XX. The screening format is the first level of EA screening and

Page 176 of 198


its purpose is to check whether the proposed sub-project happens to contravene any
basic condition such as Natural Habitat, cultural property, etc. There are two distinct
sections in the format – the first section contains conditions which, if met, could lead to
summary rejection of the proposal while the second section deals with conditions that if
highlighted, require closer examination of the proposal before environmental approval is
granted.

Clearly, for each sub-project, one screening format will filled in for each sub-project
jointly by the Community Resource Person (CRP) and the borrower. These individual
livelihood activity proposals along with their respective screening formats duly completed
will be consolidated together at the SHG level by the Cluster Coordinator into the MIP.

Once the MIP is prepared and complete, the Cluster Coordinator (CC) will prepare it for
presentation to the GP Level Federation by attaching the EA01 form (see annexure XX)
to the same. The CC shall fill in the first six columns of the Environmental Approval Form
EA01 based on the information available from the screening formats as well as by
selecting the applicable TEG from the set of TEGs, which shall be available with him/her.
The last column will be left vacant pending the decision of the GP Level Federation
Appraisal Sub-Committee.

Thus with each MIP there will be one unique EA01 form attached to it. Appraisal of the
sub-projects will be done by the Executive Committee of the GP Level Federation in their
monthly meetings. The GP Level Federation shall be facilitated and guided by
representatives of the BPFT, who will be present during each monthly meeting. The
process for granting environmental approval by the GP Level Federation will be as
follows:

1. For activities, which are categorized as ‘Low’ in the TEG, environmental approval
is granted without any further assessment.

2. For activities categorized as ‘Medium’ the GP Executive Committee shall follow


the guidelines described in the TEGs, and verify conformity with applicable
legislation for the activity in question and grant / reject approval accordingly after
discussing the same within the committee as well as after considering
recommendation of the BPFT representative.

Page 177 of 198


Page 178 of 198
PROCESS FOR GRANTING ENVIRONMENTAL APPROVAL TO SUB-
PROJECTS

1. Take each sub-project plan in a MIP one by one.


2. For each sub-project, examine the screening format and assess if any of the
ticked items pose a significant threat to the environment. Reject in case it
happens to be in a Natural Habitat, Cultural Heritage site or on the banned
activity list.
3. Examine the EA01 form prepared by the CC and refer to the TEG to
determine assessment level – low, medium or high.
4. If the assessment level is ‘low’, re-examine the screening format and verify
that the issues highlighted, if any, are not significant.
5. In case significant threat is perceived, refer to external agency.
6. In case, ‘medium’ level of assessment is mentioned in the TEG, verify
whether the proposed sub-project is in accordance with the applicable
legislation. In case approval is accorded, the borrower should be given the
agreement document to sign as another pre-condition to approval.

Once approved, the borrower shall be made to sign an Agreement Form selected from
annexure XX in default of which, the MIP will not be sent to higher levels for disbursal.
The BPFT Team Leader and other officials above his/her rank shall have the authority to
cross-check randomly whether the agreement forms have been signed and maintained
in the GP Federation records. Further, during internal environmental audits, the auditor
shall cross-check whether the borrower is implementing the agreed terms.
The Executive Committee of the GP Level Federation is designated with the role of
according environmental approval in addition to financial and social approvals. For
purpose of according environmental approval, the GP Level Federation Executive
Committee shall take up each activity mentioned in the EA01 one by one. The signing
authority would be with the President of the GPLF or her nominee. The monthly meeting
of this committee will be attended by a representative from the BPFT. All the persons
involved, namely the CRP, CC, all BPFT personnel, all DPMU and SPMU personnel will
be trained in carrying out the environmental appraisal. Adequate training will also be
imparted to the SHG members as well as the GP level Federations.
A diagrammatic representation of the entire approval process can be seen in section
11.1.4 (Institutional Plan). Needless to say, a dedicated capacity building plan will be
prepared to build the capacity of all officials as well as Community Based Organizations
involved in the process of according environmental approval.

Page 179 of 198


11.1.2 ENVIRONMENTAL APPROVAL RELATED INFORMATION ON MIS

It is strongly recommended that even though environmental approval is granted at the


GP federation level, information on environmental approvals be maintained on the
project MIS. This shall help achieve the following dual objectives:

1. Make available data on the environmental approvals obtained as well as


rejections accorded to enable project managers make appropriate decisions
on improving environmental compliance.

2. Facilitate external environment auditors to get a bird’s eye view of the


prevailing situation and assist them in determining the location and
composition of the sample selected for purposes of their audit.

It is envisaged that the data on environmental approvals and rejections would be


maintained at all levels in the project viz. block level, district level and state level. As in
the case of financial information, the environmental approval data at various successive
levels will also be clubbed together. Given in annexure XX is a set of formats (EA02 to
EA05) which are suggested for maintaining records of data at various levels. The actual
procedure for continuously updating this data at various levels will be developed in
conjunction with the MIS staff and specialists. Described below in brief is the suggested
process for maintaining and updating MIS data pertaining to environmental approvals.

11.1.3.1 GP LEVEL

A list of all projects that have been accorded environmental approval as well as those
who have been denied environmental approval will be prepared at the GP level. A
dedicated format (EA02 - see annexure - XX) has been designed for the same. The
information compiled on an EA02 form after each monthly meeting of the GP shall be
sent to the respective block level project officials immediately after the meeting. A copy
of each EA02 format shall be maintained at the GP level.

11.1.3.2 BLOCK LEVEL

At the block level, the information obtained from each GP will be compiled and
computerized by the MIS official. A consolidated list will be generated at the block level
consisting of information from various GPs comprising the block for onward transmission
to the district level. The format of this is given in the form EA03. As in case of GP level,
the EA03 database shall also be maintained at the block level.

Page 180 of 198


11.1.3.3 DISTRICT LEVEL

At the district level, the information (on form EA03) coming from various constituent
blocks in the district will be further consolidated and compiled in the format EA04. As in
case of blocks, the EA04 information will be maintained at the district level.

11.1.3.4 STATE LEVEL

Information on EA04 from all 10-project districts will be obtained at the district level and
further consolidated as per form EA05 at the state level. Thus, at the state level, there
would be complete consolidated information available on the total number of sub-
projects accorded or rejected environmental approval.

It is envisaged that at all administrative levels in the project, appropriate MIS information
on the nature of project proposals coming in and the trends in terms of environmental
approvals or rejections will be available. This will help in the following two ways:

1. Get an idea of the types and trends in types and number of sub-projects coming
in for funding under TRIPTI so as to predict cumulative environmental impacts, if
any.

2. Provide a basis for sample selection in case of planning of an environmental


audit.

Page 181 of 198


11.1.4 INSTITUTIONAL PLAN FOR ENVIRONMENTAL SCREENING, APPROVAL
AND DATABASE MAINTENANCE

Table 11.1
TRIPTI Project Stages in CBOs Functions and duties
Functions and duties Staff Environmental established
Approval and under
Monitoring TRIPTI
(TRIPTI)
Conduct routine
internal
environmental audits
SPMU Staff
Consolidate all EA04
from the blocks into
And
an EA05 and
maintains data at
External Environmental
state level
Environmental monitoring
Monitoring and data
External agency to
Agency consolidation
provide advisory
support and conduct
external
environmental audits
Conduct routine
internal DPMU Staff
environmental audits 1. Project
Environmental
Manager District
monitoring
Consolidate all EA03 2. Regional Level
and data
from the blocks into OPCB Federation
consolidation
an EA04 and 3. NGO rep
forwards to MIS 4. FM & MIS
officer at the SPMU
Attend GP Federation BPFT Staff Support to GP Block Level
meetings and advice Federations Federation
and facilitate them in 1. Team and MIS data
making decisions on Leader consolidation
according 2. Institution
environmental Bldg
approval 3. Livelihoods
4. FM and MIS
Conduct routine
internal
environmental audits

Consolidates all
EA02 from the blocks
into an EA03 form

Page 182 of 198


and forwards to MIS
officer at the DPMU

Conducts appraisal of
the MIP based on
screening proforma, the
EA01 form, advice of
block level staff and
even the external
Environmental monitoring agency, if
Appraisal required.
And
According of Grants approval to MIPs
GP
environmental found satisfactory and in
Federation
approval to event of the borrower
each MIP undertaking to abide by
the guidelines

Consolidates of EA01
data from all GPs into
an EA02 MIS data form
and forwards the same
to MIS officer at block
level
Consolidates sub-
projects desired by
members of each
SHG into a MIP: One Pre-
MIP for each SHG Cluster environmental
Coordinator appraisal
Environmentally (CC) documentation
categorizes each (EA01) of MIP
activity constituting
the MIP in the EA01
form
Assists in conceiving
sub-projects and
Initial
putting together of the Community SHG and
environmental Proposes sub projects
MIP Resource SHG
scanning of and applies for loan
Fills up screening tool Person (CRP) members
sub-projects
format for each
proposed activity

11.1.5 ENVIRONMENTAL APPROVAL FOR SUB-PROJECTS NOT INCLUDED IN


THE SUB-PROJECT LIST
It is possible that occasionally there may be applications for livelihood activities, which
have not been envisaged and hence not included in the list o sub-projects.

Page 183 of 198


Consequently, no TEG may be available for such activities. In such cases, the following
procedure is advised:

1. The GP level body shall consult the generic TEGs and try to assess if any
substantial environmental impact is predictable and accordingly accord sanction.

2. The block level representatives from the project team shall assist the GP
Federation members in making the assessment.

3. In case of inability of the body to arrive at a conclusion, advice from the external
environment agency shall be requested and the approval suspended till their
view and advice is obtained.

11.1.6 INTERNAL ENVIRONMENTAL AUDIT


The project staffs at the district and block level are encouraged to conduct environmental
audit of sanctioned sub-projects that they may visit or review from time to time. The
following form is recommended for this purpose:

ENVIRONMENTAL AUDIT FORM EA-A1

Name of borrower: SHG Name:

Amount borrowed: Village, Block & district:

Purpose of loan (Livelihood activity)

Any perceived detrimental effect on  Air  Water  Land

Comments, if any

Is the person following any of the guidelines committed by him / her

Name, designation and signature


Has the person adopted any of the recommended best practices? of Auditor

No specific targets are being recommended for conducting internal environmental audits.
However, it is advised that all audit reports should be filed in a specific file at the district
level and should be available for reference to anyone who would like to examine them.

Page 184 of 198


The external environmental auditing agency may refer to internal audits conducted for
getting an idea of the prevailing situation vis-à-vis environmental compliance.

11.1.7 EXTERNAL ENVIRONMENTAL AUDIT


External environmental audit of the project shall be conducted initially at the end of the
first year and thereafter after every two years. The work shall be entrusted to an
independent external agency. Ideally, the audit should be completed within a maximum
period of 3 months from the date of issue of the sanction letter or as directed by the
Director. The total sample size will be worked out on basis of nature of sub-projects
sanctioned, environmental sensitivity of different regions and trends in environmental
approvals as well as rejections as apparent from the MIS. The agency will also be
expected to point out lacunae in the approval process as well as capacity gaps, which
need to be addressed. A suggested ToR for this external agency is given in annexure-
XV.

11.1.8 CAPACITY BUILDING PLAN


In order to ensure that all the personnel at various levels of the TRIPTI management
structure are well oriented towards the importance of undertaking mitigation measures
for conserving the environment and the beneficiaries are well aware of the same, an
extensive capacity building plan has been drawn up.

The following matrix gives the details of the capacity building activities envisaged:
Table 11.2
Goal of Training to
Capacity
Trainee capacity Course be
building Supervision
Segment building content imparted
strategy
activity by
T1 Short plays /
Examples on
mono acts and /
how day to Hired
or audio-visuals
day activities groups of
to be organized
can adversely rural artists
during SHG
Sensitization affect the
meetings or on
towards environment
SHG special
environment BPFT
Members occasions.
and
To be organized
sustainability Sensitization CC and
in all GPs at
towards CRPs
least once in
climate
two years from
change and
second year
related issues
onwards

Page 185 of 198


Goal of Training to
Capacity
Trainee capacity Course be
building Supervision
Segment building content imparted
strategy
activity by
Sensitization T2 One half day Information on
towards workshop at how human SPMU staff
environment block level activities affect or hired
issues immediately on the expert
start of project environment
Basic
knowledge on T3 One half day Environment - SPMU staff
environment workshop, 3 livelihood or hired DPMU
issues with months from linkages and expert
respect to date of sanction issues
CCs and different involved
CRPs livelihood
activities T4 One full day
workshop at Familiarity with BPFT /
Procedure for block lever formats and DPMU staff
environmental their roles and
appraisal and responsibilities
familiarizing
with the
relevant forms
and
documentation
Sensitization
towards Information on
T4 One half day
environment how human SPMU staff
workshop at
issues activities affect or hired
block level
the expert
immediately on
GP Basic environment
start of project
Federation knowledge on BPFT
Members environment Environment - SPMU staff
T5 One half day
issues with livelihood or hired
workshop at
respect to linkages and expert
block level
different issues
livelihood involved
activities
Procedure for
environmental T6 One full day
GP
appraisal and workshop at Familiarity with
Federation
familiarizing block level 3 formats and BPFT /
Appraisal DPMU
with the months from their roles and DPMU staff
Committee
relevant forms date of start of responsibilities
members
and implementation
documentation

Page 186 of 198


Goal of Training to
Capacity
Trainee capacity Course be
building Supervision
Segment building content imparted
strategy
activity by
Procedure for
environmental
appraisal and
Familiarity with
familiarizing
formats and
with the
T7 One full day their roles and
relevant forms
workshop at responsibilities External
and
district level 2 expert with
BPFT staff documentation SPMU
months from Familiarization SPMU and
date of start of with internal DPMU staff
Familiarization
implementation environmental
with goals and
audit
procedures of
procedures
internal
environmental
audit
Procedure for
environmental
appraisal and
Familiarity with
familiarizing
formats and
with the
T8 One half day their roles and
relevant forms
workshop at responsibilities
and External
district level 1
DPMU staff documentation expert with SPMU
month from Familiarization
SPMU staff
date of start of with internal
Familiarization
implementation environmental
with goals and
audit
procedures of
procedures
internal
environmental
audit
Procedure for
environmental
appraisal and
Familiarity with
familiarizing
formats and
with the
T9 One half day their roles and
relevant forms
workshop at responsibilities
and
district level 10 External
SPMU staff documentation SPMU
days from date Familiarization Expert
of start of with internal
Familiarization
implementation environmental
with goals and
audit
procedures of
procedures
internal
environmental
audit

Page 187 of 198


11.2 ENVIRONMENTAL RISK MANAGEMENT
The following matrix gives the risks and various suggested mitigation measures that
could help in offsetting the potential threats to the environment.
Table 11.3
Activities Environmental Mitigation Measures Applicable
Agriculture Sector

likely to affect Issues and Risks Legislations


environment

• Irrigation • Ground water • Promote drip / sprinkler  The EP act


• Crop Residue depletion irrigation methods 1986
Burning • Methane • Spread awareness about
 The
• Pesticide emissions (due proper plastic disposal Insecticides
usage to crop surplus • Use permissible classes of Act, 1968
• Fertilizer residue) pesticides
usage • Groundwater • Dispose off crop residue as  The Plastic
• Use of contamination fuel or manure sale and
due to pesticide • Residue recycling and usage rules
plastics
and fertilizer 1999
composting
usage
• Irrigation • Ground water • Promote drip / sprinkler
Horticulture

 The EP act
• Crop Residue depletion irrigation methods 1986
Burning • Groundwater • Spread awareness about
 The
• Pesticide contamination proper plastic disposal Insecticides
usage due to pesticide • Dispose off crop residue as Act, 1968
• Fertilizer and fertilizer fuel or manure
usage usage • Residue recycling and  The Plastic
• Decomposed composting sale and
organic waste • Mushroom culture rooms usage rules
from plant and 1999
should be disinfected
animal sources in • Promote use of hand gloves
mushroom
• Mushroom waste should be
cultivation
converted to manure

Page 188 of 198


Activities Environmental Mitigation Measures Applicable

Forest Sector
likely to affect Issues and Risks Legislations
environment

• Extraction of • Stunted growth • Encourage multi-species use  The Indian


NTFP of selected for leaf plate making and Forest Act
• Plucking of species similar activities 1927, The
leaves from • Resource • Advice against plucking very Forest
selected depletion and young leaves (Conservatio
species effect on bio- • Promote setting up of herbal n) Act 1980,
• Cutting of diversity gardens consisting of amended in
bamboos & medicinal plants 1988.
cane, broom, • NTFP extraction should not be  The Wildlife
etc. beyond permitted 69 minor (protection)
• Plucking of forest products as permitted Act, 1972
medicinal • Random grazing of cattle on (forest)
plants public land or forest areas
• Grazing of  The Orissa
should be permitted only in
Forest Act,
domestic exceptional cases and that
1972
animals too, subject to permitted
numbers in permitted areas as
allowed by the local DFO at
different times of the year
• Fruit • Methane • Use anaerobic digester and
AquacultureRestaurantFood, Hotel &

 The EP act
processing emissions use gas for heating 1986
wastes • Bad odour • Use settling tank, separators
• Use of • Soil and proper dosing before
preservatives contamination releasing preservatives to the
• Use of • Plastic waste outside
plastics disposal issues • Plastics should be disposed
• Release of salt in as per the plastic disposal
effluent rules, 2000
• Fishing in • Effluent water • Use settling tank, separators  The Orissa
forests and may be and proper dosing before Marine
natural contaminated releasing preservatives to the Fishing
habitats with left over outside Regulation
• Periodic food and dead • Prawn culture to be allowed Act
changing of living material only within 2 kilometer from (OMFRA),
water. • Land becomes the sea shore 1982
• Use of salt saline and unfit
water from for cultivation
the sea for
prawn culture

Page 189 of 198


Activities Environmental Mitigation Measures Applicable

Live Stock Sector


likely to affect Issues and Risks Legislations
environment

• Grazing of • Proximity of • Disinfect animal shelters  The Indian


domestic animal shelter to periodically Forest Act
animals human habitats • Animal shelters should be at 1927, The
• Construction • Methane least 100 m away from human Forest
of animal emissions habitats (Conservatio
shelters • Epidemics from • Use anaerobic digester and n) Act 1980,
• Fodder diseased animals use gas for heating amended in
residue • Promote use of hand gloves 1988.
wastes and masks  The Orissa
• Animal • Periodically monitor animal Forest Act,
wastes health and undertake 1972
immunization measures
• Promote stall feeding
• Grazing as per guidelines
issued by DFO
ServicesMiscellaneous and Health Cottage & Small Industry

• Electronic • Accumulation of • Dispose electronic goods  The EP act


component electronic waste wastes as per hazardous 1986
manufacture • Cotton and wool waste management rules.
• Cotton, wool, dust generated • Use settling tank, separators
coir work during weaving and proper dosing before
• Use of • Contamination of releasing preservatives to the
chemicals land / soil outside
• Use of plastic • Plastics should be disposed
storage as per the plastic disposal
material rules, 2000
• Burning of • CO and SO2 • Use masks • The EP act
carbon emissions 1986
source
• Bore well and • Groundwater • Borewell / Dugwell location • The EP act
dug well depletion planning with inputs from 1986
construction groundwater board officials

It is also observed that certain social factors may give rise to conflicting situations where
there could be impact on the environment. Given below are typical situations, which
could occur:

Page 190 of 198


Table 11.4

Potential issues, risks and


conflicting situations that could
Livelihood arise during project
Sector implementation and have an Suggested Mitigation Measures
impact on environmental
compliance
Buyers of fuel wood may
Capacity of the Panchayat could be built
patronize able-bodied and strong
to intervene in such situations and ensure
individuals to obtain fuel wood for
FOREST not only equitable opportunities to all but
them from the forest thus
also protect the forest from excessive
depriving weaker persons from
pressure
their source of livelihood
Loans may be given either to persons
owning their own ponds or to village
Panchayat who would be facilitated to
Issuing loans for fishing may
use the common property resources
create a conflicting situation
judiciously and ensure equitable
AQUACULTURE wherein fishermen compete over
distribution of the proceeds amongst the
common property resources
stakeholders. The Panchayat would also
(lakes and ponds in this case)
be responsible to maintain cleanliness of
the pond – another added environmental
benefit.
Persons availing of project loan to
Persons desirous of starting fresh
start livestock activity may face
livestock activity should be advised to
confrontation with already existing
LIVESTOCK practice stall-feeding. The business plan
dominant groups who have
must have a suitable component for stall
control over grazing land and
feeding
pastures

11.3 IMPLEMENTATION OF EMF IN THE PROJECT:


The environmental appraisal process is intended to be implemented by GPLFs mooted
under the TRIPTI project with assistance from project staff stationed at various levels.
Since none of the project officials or staff right from senior management to grassroots,
nor any of the GPLFs mooted under this project are expected to have any detailed
knowledge of environmental issues or any experience in environmental appraisal,
intensive capacity building activities have been built into the project implementation
strategy.

It is proposed to engage an external environmental agency to provide support and


expert guidance, particularly in terms of capacity building and guidance to GPLFs and
staff engaged in the environmental appraisal process. ToR of the agency has been
provided in Annexure XIX. The agency will conduct the capacity building programme

Page 191 of 198


developed for the TRIPTI project, which aims at inculcating environmental awareness
and environmental management capacity in the project administration structure as well
as in the GPLFs. The environmental appraisal forms i.e. EA01-EA05, environmental
screening format and TEGs will be translated in Oriya and printed by the project. The
training materials will be developed in oriya language so that the community can have
clarity on the environmental safeguards. The timelines for implementation of EMF will be
decided at a later stage when the sub-projects come up. The agency will provide support
in fine-tuning / modifying existing environmental assessment procedures based on the
experience gained during project implementation. The agency will have overall
responsibility for ensuring the quality of environmental assessment undertaken under the
TRIPTI project. The livelihood Specialist in the SPMU will coordinate with the agency
and monitor the process for ensuring qualitative environmental assessment in the
project.

Page 192 of 198


12. Governance and Accountability

1. The Government of Orissa has developed a comprehensive anti –corruption


action plan in 2005. This action plan covers a number of areas including establishing
better information management systems to facilitate the implementation of the Right to
Information Act (RTI), business process re-engineering to support better accountability
and transparency, procurement reform, and, the strengthening of preventive vigilance.
Reforms under the plan are to be piloted in four departments including the Panchayati
Raj department. A summary of the Orissa anticorruption action plan is given in Box 1.
The ORLP provides the GoO a specific project vehicle to pilot and mainstream
governance reform in the Panchayati Raj Department.

Box 1: Orissa’s Anti Corruption Action Plan

Orissa is the first state in India to articulate a comprehensive medium anti-corruption


action plan The Action Plan is divided along three broad categories; i.e. reforms that
support better institutional transparency and accountability particularly by developing
better systems and procedures that prevent corruption; reforms that support better
enforcement and that serve as a deterrent to corruption; and processes that can
generate better public awareness necessary to underpin both prevention and
enforcement and make changes sustainable. While the strategy envisages a major
expansion of enforcement machinery both across the state and within departments
through the establishment of internal vigilance units and new special courts to try
corruption offences it also recognizes that merely strengthening enforcement will not
solve the problems of corruption and that accountability relationships need to be
examined at different levels of government. Thus it also focuses on management
reforms that will ensure better transparency and accountability in service delivery. This
includes systemic reforms in procurement and business process re-engineering in areas
where corruption is recognized to be a problem and where citizen- government
interaction is intense. Equally important it aims at strengthening citizen “voice” through
reforms in program implementation that aims to empower communities through
providing information about their service delivery rights which will enable them to hold
service providers accountable.

2. In addition Orissa has made the Right to Information (RTI) legislation operational
across all government departments with the objective of enhancing transparency and
accountability and reducing corruption arising out of asymmetric information flows.
Implementation of RTI requires development of a disclosure policy, automated systems
for record and document management, and information handling. It requires
appointment of staff, their training, programs for citizens’ awareness, and annual
progress reporting.

3. The Governance and Accountability Action Plan (GAAP) for the project builds on
this existing government framework for tackling corruption in the state. It directly focuses
on supporting the implementation of the Right to Information Legislation within the
project and strengthening preventive vigilance and enforcements systems both at the
level of the project as well as at the level of the department. Such departmental reforms
will ensure that “corruption proofing” will be sustainable over the long term.

Page 193 of 198


4. The GAAP will therefore comprise of (i) project specific actions that support
transparent systems and processes for procurement, financial management and
reporting as well as support to better quality assurance through expanding citizen voice
and involvement within the project boundaries and (ii) support overall reforms in the
Panchayati Raj department in order to create an enabling environment for better
enforcement and prevention of corruption. Key components of the GAAP include:

• Implementation of RTI to increase transparency and accountability


- To comply with RTI agree on a disclosure policy of the project
during preparation with the intention of allowing greater access to
information, including disclosure of mid-term review reports, safeguards
information, audit reports and selected information on the entire
procurement process (Annex 2);
- Developing systems and procedures to implement the disclosure
policy including document management system and information
management system;
- Developing organizational arrangements and a capacity building
plan to facilitate efficient, effective and accountable procurement
execution, contract management and monitoring of project outcomes;
- Plan reporting and monitoring arrangements to monitor
implementation of the disclosure policy including oversight by civil society
groups.
• Business process re-engineering to support better accountability and transparency
• Procurement reform including e-procurement
• Strengthening of preventive vigilance
- There is already an Additional Secretary – Vigilance in the
Department of Panchayati Raj who will be handling all complaints related
to the project;
- On-line complaints handling system; and
- Dealing with delays in departmental proceedings.
• Third party monitoring – establishing a system of periodic social audits and report
cards
• Develop monitoring indicators for compliance to the above agreements and for
impact on outcomes
- Disclosure of information indicators;
- Complaint handling system indicators.
- Perception surveys

5. Business Process Re-engineering – Analysis of Corruption Prone


Processes in the Department: The anti-corruption strategy emphasizes the importance
of simplification, rationalization and standardization of business processes in
Departments and commits government to systematically analyze and reform processes
that are vulnerable to corruption.

6. Dealing with delays in departmental proceedings: Review of Pending


Departmental enquiries: The anti-corruption action plan has recommended that
Review Committees will be set up to oversee the status of pending departmental
proceedings. These committees are expected to review cases and agree on ways to
dispose them efficiently. This will be of tremendous value in reducing backlog and also

Page 194 of 198


send a strong message about the efficiency of the administrative mechanisms that
enforce integrity within government

7. The GAAP matrix (Table – 1) prepared as part of project preparation highlights


the risks and the appropriate time-bound mitigation action to be undertaken by the
project to reduce the specific risk. The detailed GAAP for the project is elaborated in
Table – 2 in page 103 &104.) The GAAP will be reviewed annually during project
supervision missions to ensure that “evolving risk areas” are covered by the GAAP.

Table - 1: Governance Accountability Action Plan: Risk Assessment and


Mitigation Measures
Risk Parameters Risk Level Mitigation Measures
Governance High All guidelines/ manuals on procurement, financial management and reporting,
Systems & record keeping, complaints handling and M&E with provision for reviews are
Structures finalized, TORs have been prepared delineating the roles and responsibilities for all
project units & key project personnel, Ensure stakeholder mapping and
mobilization, Ensure effective coordination within PR Department, Project
Implementation Plan (PIP), Community Operational Manual, Procurement Manual and
Medium Financial Management Manual with clear guidelines are finalized.
Institutional Institutional arrangements at State, District, Block and GP level have been completed and
preparedness for recruitment of all project staff will be done through an independent agency using objective
project and transparent methods and a detailed strategy for capacity building plan for all staff is
implementation incorporated in the PIP.
Terms and conditions and procedure for engaging service provider are completed. A
computerized MIS and well as monitoring and review arrangements are finalized.
Finalize mechanisms for effective programming on SHG and Federation level activities
Transparency High Steps to curb use of discretion in decision-making are ensured through a Governing
Council and Executive Committee guiding the overall project implementation
through an autonomous structure registered under the Societies Act. A proactive
public disclosure policy system is in place all information will be available to the
public on demand and will be put on the web-site of the project. An independent
website is designed for the project to disseminate information. (Civil society
involvement and oversight). The project will work with service provider from the
civil society in implementation and periodic monitoring of the project.

Accountability Medium Standards & timeframe for physical and financial targets will be laid out under
annual plans to be prepared for every financial year by the project. A score card
method for judging institutional performance in periodic basis will be instituted.
Stakeholder Low State / District level orientation workshop for senior administrators/ key
ownership and stakeholders, induction campaigns/ workshops in project areas, institutionalize multi-
participation stakeholder dialogue and review processes, create adequate space for participation of PRIs,
CBOs, Line Agencies and Technical/ Financial Resource Institution and encourage
leadership of SHGs and Federations in project implementation is addressed in the
community strategy for the project in PIP.
Arrangements for Low A transparent procurement policy based on transparent is proposed for the project elaborated
Tender & in the procurement manual and the booklet for community procurement guidelines ,
procurement prospective procurement plan will be published in website, all procurement notices and
contract awards of goods, works, and consulting services will publicized, repeated
cancellation of bid invitation and corrigendum will be discouraged , eligibility criteria for
bidders and product quality standards are laid out, Bidders who engage in misrepresentation
of facts or fraudulent/ corrupt practices will be notified and disqualified.
Priority on financial Low A financial management system is proposed to ensure that funds are used only for the
management plan intended purposes in a transparent way, approval of Project financing plans and fund
disbursement and audited financial reports and detail expenditure statements are proposed,
case assessment by Project supervision missions inquiring corruption issues will be
facilitated, if any. With a view to assess procedural adequacy, financial propriety and quality
related issues process monitoring and a range of social accountability tools will be used.
Adherence to RTI Medium A disclosure policy has been formulated with reference to RTI Act, systems and procedures
requirements to implement RTI is in place, a designate personnel as PIO and APIO will be appointed by
the project for RTI management. All information as per recommended manuals will be in
public domain. Training on RTI for staff, office bearers of SHGs/ Federations and
beneficiaries will be carried out in the MIS database on RTI cases for follow up will
logged and updated.

Page 195 of 198


Complaint and Medium The procedures for user’s access to register complaints will be published and notified
Grievance redressal through various mediums. A toll free phone number will be commissioned, a dedicated email
mechanisms address, PO Box or other effective means for submission of complaints will be
institutionalized. An on-line complaint handling system is proposed with provision for ensure
confidentiality and protection of Whistle-blowers. Complaints will be segregated in order of
gravity and senior officers may be asked to process serious cases and report in given
timeframe. During supervision mission regular review of progress in handling
complaints will be undertaken.
Preparedness for Medium Effective linkage with VO in PR Dept. Conduct periodic consultations to identify
preventive vigilance systemic vulnerabilities. Regular review of pending proceedings related to disciplinary
deviations & embezzlement will be undertaken.

Delayed project Low Annual, Quarterly & Monthly Action Plans will be formulated, progress will be
implementation reviewed through process monitoring delays and deviations will be addressed.

Page 196 of 198


Table - 2: GOVERNANCE ACCOUNTABILITY ACTION PLAN: TRIPTI
Anticipated Action To Be Taken
Problem
1. Business process designing to support better accountability and transparency

Implementation of Implement best practice and advice on tackling corruption. -do- PD/ SPMU
Anti-corruption
strategy. Undertake comprehensive analysis of potential areas that may give rise to corruption under TRIPTI and devise effective safeguards -do- SPMU
to preempt or address such contingencies.
Agree on a disclosure policy. March 2008 PD/ SPMU/ PR Dept.
Develop organizational arrangements to implement RTI Act with provision of Appellate Authority and PIO/ APIO March 2008 PD/ SPMU/ PR Dept.
Develop systems and procedures to implement RTI- Website, News Letter, Transparency Boards, wall writings etc September 2008 PD/ SPMU/ PR Dept.
Conduct training on RTI for office bearers of SHGs, Federations and Beneficiaries for demand generation From September 2008 SPMU
onwards
Regularly up-date and disclose information as per manuals prescribed by the RTI Act. From start of the project PD/ SPMU
Maintain proper complaint database and public disclosure of actions taken. From start of the project SPMU/ BPMU

2. Strengthening Preventive Vigilance


Safeguards against Lay down rules of business pertaining to use of administrative and financial powers at GP, Block, District and State level By June 2008 PD/ SPMU/ PR Dept.
corruption Design suitable checklists on subjects requiring approval underpinning specific benchmarks for executive decisions at GP, Block, By August 2008 PD/SPMU/ PR Dept.
District and State level
Departmental Vigilance Officer has clear responsibility at project level. By August 2008 PD/SPMU/ PR Dept.
Notify project activities and benefits through locally suitable multi media campaigns From start of the project SPMU/ BPMU
Strengthen participatory audit and monitoring exercises to track problem areas By October 2008 SPMU/ BPMU
Action plan for participatory review meetings at different levels By October 2008 SPMU/ BPMU
Commission periodic impact assessment studies At least two per year PD/ SPMU
3. Strengthening Complaint and Grievance handling at project level

Effectiveness of Pending commissioning of an online computerized system adopt a manual system for registering, tracking and monitoring of By June 2008 SPMU
complaint and complaints.
grievance handling Devise criteria to segregate complains in order of seriousness and disposal in specified timeframe by designated authorities By October 2008 SPMU
mechanism. Formulate a transparent policy to initiate and complete disciplinary proceedings in specified timeframe By October 2008 SPMU
Maintain an updated database on complaint received and action taken for Suo motto public disclosure or in reference to application From October 2008 SPMU/ DPMU/
received under RTI Act onwards BPMU
4. Tender and Procurement

Collusion in tenders Project should have a transparent procurement policy based on established best practices and strict compliance with agreed Bank By June, 2008 PD/ SPMU/ PR Dept.
and procurement procedures.
processes
The project will develop a prospective procurement plan and place it on its website By June 2008 and PD/ SPMU
annually thereafter
The practice of cancellation of bid invitation and corrigendum should be discouraged to avoid unnecessary cost and confusion. When needed prior SPMU
clearance with the Bank
required
Definition of eligibility criteria for bidders and product quality needs to be standardized restricting too many variations and Bidding documents as SPMU
subjective interpretations as regards to similar assignments. per model/ standard
Bank documents

Page 193 of 198


Notify details of the process for disqualification of bidders who engage in mis-representation/ fraudulent/ corrupt practices Procedure to be firmed PD/ SPMU
by December, 2008

5. Financial Management
Absence of a The financial management plan should be in place to ensure that funds are used only for the intended purposes in an efficient and By December, 2008 PD/ SPMU/ PR Dept.
comprehensive economical way as per budget approvals
financial
management plan to Deviations if any should be explained in stipulated timeframe. By December, 2008 SPMU
ensure transparency
and accountability.
Block team, DPMU and SPMU should enforce safeguards at respective level and generate financial progress reports in prescribed By December, 2008 SPMU/DPMU/ BPMU
format capturing relevant parameters as laid down in the project implementation plan (PIP)
Regular Financial and Procurement-related audits By December, 2008 PD/ SPMU
Guidelines and procedures laid down for inquiry into deviation from norms / corruption issues. By December, 2008 SPMU/ Agency
Feedback received from participatory monitoring exercises on financial matters should be incorporated in the financial reviews at SPMU
quarterly intervals
6. Strengthening Systems and Processes for Project Management
Weak Finalize operational manuals and Project Implementation Plan (PIP) By April 2008 PD/ SPMU
implementation
arrangements may Complete institutional arrangements for project implementation at state, district, division/block level By August 2008 PD/ SPMU
adversely affect
Finalization of recruitment and training plan for both deputation and contractual staff. Each position should have clearly defined By September 2008 PD/ SPMU
project processes and
job description and performance indicators
results
Finalize registration, terms and conditions and working procedure of federations. By December 2008 PD/ SPMU
Develop micro strategies for extensive outreach especially covering very poor, tribals and differently-abled persons By October 2008 SPMU/BPMU
Ensure timely flow of fund to the beneficiaries mobilizing internal and external resources From start of the project SPMU/BPMU
onwards
Finalize terms and conditions and procedure for engaging support organizations (SOs). By April 2008 PD/SPMU

Finalize Project MIS design as well as monitoring and review arrangements. The database should be linked to online reporting By October 2008 PD/SPMU/
arrangements for quick review and follow up action. Consultant
Strengthen multi stakeholder coordination arrangements including line departments, financial institutions and technical resource From start of the project PD/SPMU
agencies at Block, district State level onwards

Empanel consultancy firms and reputed research and evaluation institutions for studies and evaluations to be undertaken by the From start of the project PD/SPMU
project onwards
Prepare withdrawal plan in advance and strengthen capacity of SHGs and federations for resource mobilization, business By 2nd year of project PD/SPMU
development, portfolio management, book keeping, accounting, audit and sustaining operations beyond project cycle. implementation

Page 194 of 198