National Rural Economic Transformation Project Current Affairs - 2020

World Bank and Government of India inks loan agreement for NRETP

The World Bank will provide a $250-million loan for the National Rural Economic Transformation Project (NRETP). National Rural Economic Transformation Project is a new sub-component under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) of the Ministry of  Rural Development.

National Rural Economic Transformation Project

  • NRETP supports enterprise development programmes for rural poor women and youth by creating a platform to access finance including start-up financing options to build their individual and/or collectively owned and managed enterprises.
  • The project also involves developing financial products using digital financial services to help small producer collectives scale-up and engage with the market.
  • It also supports youth skills development, in coordination with the Deen Dayal Upadhyaya Grameen Kaushalya Yojana.
  • The key focus of the project is to promote women-owned and women-led farm and non-farm enterprises across value chains, enabling them to build businesses that help them access finance, markets and networks; and generate employment.

The $250-million loan from the World Bank has a 5-year grace period and a final maturity of 20 years.

National Rural Economic Transformation Project

The Union government has proposed a new rural Livelihood Scheme, the National Rural Economic Transformation Project under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).

National Rural Economic Transformation Project

The features of the National Rural Economic Transformation Project (NRETP) are:

  • The project would be undertaken with loan assistance from the World Bank.
  • The project aims to provide interventions to enhance the livelihoods promotion, access to finance and scale-up initiatives on digital finance and livelihood interventions.
  • Projects under NRETP would provide alternate channels of financial inclusion, creating value chains around rural products, introduce innovative models in livelihoods promotion and access to finance and scale-up initiatives on digital finance and livelihoods interventions.

DAY-NRLM

Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) aims to create efficient and effective institutional platforms for the rural poor to increase household income through sustainable livelihood enhancements and improved access to financial services.

Originally called as Aajeevika – National Rural Livelihoods Mission, the programme was renamed as Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) in 2015.

DAY-NRLM aims to organize the poor into SHGs and make them capable of self-employment with a special focus on women empowerment including a dedicated component for promoting farm and non-farm based livelihoods for women farmers in rural areas.

The scheme aims to help rural poor to set up self-employment ventures by ensuring easy access to credit. It is implemented across the country in all States and Union Territories (except Chandigarh and Delhi) and it is one of the world’s largest initiatives to improve the livelihood of poor.