This story is from July 7, 2020

SHG clusters to widen jobs ambit for migrants in Uttar Pradesh

Expanding the ambit of employment opportunities for migrants in rural areas of Uttar Pradesh, the state government has initiated an exercise to merge self-help groups (SHGs) to form a bigger organisational structure, Community Level Federation (CLF), under the Centre’s flagship scheme National Rural Economic Transformation Project (NRETP).
SHG clusters to widen jobs ambit for migrants in Uttar Pradesh
Photo used for representational purpose only
LUCKNOW: Expanding the ambit of employment opportunities for migrants in rural areas of Uttar Pradesh, the state government has initiated an exercise to merge self-help groups (SHGs) to form a bigger organisational structure, Community Level Federation (CLF), under the Centre’s flagship scheme National Rural Economic Transformation Project (NRETP).
According to rural development department officials, a single CLF would be a registered body comprising at least 300 SHGs which would be engaged in manufacture of saleable products.

Talking to TOI, mission director, state rural livelihood mission (SRLM), Sujit Kumar, said: “It would be like a full-fledged company working in a particular stream. A single CLF will have at least 3,000 women.”
He said the department would initially provide support to CLFs so that they start with an initial capital. “Funds will be disbursed to SHGs through CLF which would act as a bank and charge an interest rate of around 6%,” Kumar added.
According to a communique by rural development department to rural development commissioner K Ravindra Naik, dated June 2, the fully centrally-funded scheme (NRETP) has already received an initial amount of Rs 9 crore to initiate the project to set up CLP in UP.
An amount of Rs 806 crore has been earmarked by the Centre under the scheme for financial year 2020-21. Officials said the project is expected to cover about 31 districts of the state.

Sources said that in the initial phase, 15 SHGs would be merged to form a village organisation. “About 15-20 village organisations will then be merged to form a CLP which would be a bigger structure to lend a fillip to the execution of NRETP,” an official said.
As per the rules laid down by the state government, funds for NRETP execution would be released in a staggered manner and as per the need. The department may be required to take permission of the designated authority – Central or the state government – before initiating any spending under the scheme. The rural development commissioner or the mission director (SRLM) will have to obtain a utilisation certificate.
The department would also have to ensure that funds meant for the scheme have not been allocated under any other head. Allocated funds would not be kept in a public ledger account or any other deposit.
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