Format for the Proposal on NRM Related Activities under UPNRM in Completed and /or On-going Watershed Projects

Project Summary

Detailed Proposal

Title of the project:

1. Project Background:

2. Project Location:
Name of the District(s):_________________________

Name of the Blocks/Villages:_____________________________

Name of the watersheds to be covered:_________________________________

The project area comprises either completed or on-going watershed areas in above mentioned district (s) of --------------- State under ____________ programme. It is proposed that the project will cover __________ (Nos) watersheds covering around _________ (Nos) villages.  The details of watershed projects are as under:

2. Project Context (Describing the situation or problem the project seeks to address)

Our Organization is involved in implementing the watershed projects under KfW funded IGWDP / NABARD Funded WDF/ State Govt./ GoI or_________________ (any other watershed programme) in the proposed project area since the year___________. Lots of interventions pertaining to soil & water conservation measures, eco-restoration, cropping & cultivation practices, village level institutions building, socio-economic awareness, SHG formation, etc. have been carried out in the villages covered under the watershed programme. There has been positive impact of these development interventions with reference to groundwater availability, improvement in cropping pattern, increased productivity, employment generation, reduction in migration, confidence building among villagers, empowerment of local people, improvement in ecological conditions especially micro-climate, etc. Implementation of Watershed Development Programme has generated additional scope for developmental activities in agriculture, allied and non-farm sector in the project villages. In order to make entire efforts sustainable and taking proper benefits of infrastructure developed financial assistance is the urgent need of the area.

These positive impacts especially rise in water table, crop diversification / coverage of wastelands under cultivation has resulted into increased credit requirements of the villagers. As most of the villages covered under watersheds are in remote areas with little communication, infrastructure, the formal credit delivery system has not been able to reach these villages adequately to meet the emergent credit needs. In the project area present micro-credit condition is as under-

• Formal sources of credit are not accessible.
• Cooperative Societies are almost defunct or not funding for investment activities.
• Farmers are declared defaulters of bank or societies, though they are not wilful defaulters.
• Other financial institutions have also their limitations.
• Due to exorbitant rates of interest charged by money lenders farmers cannot use this source for development.
• SHGs are being formed but have limited resources- not adequate to meet credit needs for the proposed activities 
• Increased income derived from agriculture and wages from watershed work , is used to repay the loan from informal sources (Money Lenders) or the surplus is not enough for taking up the proposed activities.

As a result of all these factors, majority of the Small/ marginal farmers remain out of the purview of the formal credit delivery system.  Hence, there is a need to fill up this gap and meet the credit needs of the people in order to keep the motivation level of the villagers & to fully harness the benefits of watershed development interventions.

3. Organizational information:

4.2 Objectives: What are the specific objectives of this project? One paragraph describing the specific changes the project is seeking to bring about. Please distinguish between short and long-term objectives.

4.3 Target Community: Provide details of the beneficiary community including socio-economic status and coverage of weaker sections (landless laborers, below poverty line households, women)

4.4 Project Activities:
Please give details of the activities to be undertaken during this project. Also provide details when the different activities will take place, for how long, how often, and the key groups or individuals conducting them.

Proposal is area-specific and need oriented credit model which contains credit activities: A) Short Term and B) Long Term.  While the Short term loan is mainly for crop loan the investment activities for long term loan are enlisted below (please identify the activities from Appendix-I):

Note: Give details of the cost for each activity separately in Annexure-II)

5. Key Challenges/Issues : What are the key challenges for each of the proposed activities and how you would minimize them while designing the activities?

6. Expected results:
Developmental Impact: A description of the most important benefits that the project will provide to the local community of the region where it is located.
Impact on the Environment: A statement on the likely consequences the proposed project
might have on the local / regional environment.
7. Economics of the Activity/ Financial Analysis (Give details of cost and income expected for each of the proposed investment activities as per the annexure-II.

8. Duration / Time Frame: Give the time frame envisaged for each activity and for implementation of project.

9. Programme Management: How will the project be managed? What will be the system for Planning and Review of work? Who all will be involved/ responsible in the planning, implementation and review of the project?

10. Implementation Strategy (give other specific details):
Project will be implemented with local participation. Project activities will be introduced first to community. Criteria and rules of entire process will be prepared with consent of Gram Sabhas, VWCs, SMSs. Loaning to the borrowers would be made through Village Watershed Committees (VWCs), Samyukta Mahaila Samities (SMSs) and Self Help Groups (SHGs). With the consultation of these institutions simple but reliable procedure of lending, security, recovery and penalty would be evolved. Specific documentation and accounting system would be evolved which would be simple and easily understandable. Monitoring and evaluation will be conducted for smooth implementation of the project.
 

11. Monitoring and Evaluation: (What will be the system for the Monitoring and evaluation of the project? Describe how progress will be tracked and the outcomes of the project will be monitored. What indicators will be used to assess and measure whether project objectives are being achieved?)

12. Financial Details of the Project: (Give a detailed break-up of the total budget for the project).

The loan requirement for the project has been proposed based on the assessment in consultation with the villagers of the watershed villages. The village watershed committees, Samyukt Mahila Samiti (SMS) and SHGs were consulted to assess the loan requirement.  However, the actual identification & selection of the borrowers will be done during the actual execution of the project once project is sanctioned. The detailed list of the borrowers for each watershed / villages will be furnished at the time of drawal application.

The total financial outlay of the project is Rs. ___________   lakh as detailed below: 

Out of TFO, loan component is of Rs. ___________ lakh and grant component of Rs.  _________ lakh investment loan.

12.1 Investment /Loan Component: The details are as under:

(Give watershed wise details)

(Give watershed wise details)

13. Details of Means of Finance:

Total Financial Outlay of the Project is Rs._________ lakh out of which

1. UPNRM Loan: Rs .______________lakh   (____ %)
2. Grant from UPNRM t: Rs. ________________lakh (____ %)
3. Contribution by NGO: Rs .________________lakh (____ %)
4. Contribution by Beneficiaries: Rs. ________________lakh (____ %)

14. Financial Analysis of the Project: This would include:

1. Income & Expenditure statement of the entire project

1. Cash flow analysis (return on investment)

15. Disbursement Schedule

16. Loan Repayment System

17. Repayment Schedule

18. Risk Factors & Mitigation Strategies

DECLARATION
"We certify that all information furnished by us is true; that there is no overdue/statutory dues against the organization except as indicated in the application; that no legal action has been/ is being taken against the organization; that we shall furnish all other information; that this may also be exchanged by you with any agency authorized by you, may, at any time inspect/ verify my/our assets, books of accounts, etc. in our office/business premises as given above."
For

Appendix-I

Preparation of Project Proposal on NRM Related Activities under UPNRM in Completed and /or On-going Watershed Projects

(Instruction for filling up the Proposal Format)

1. The objective of UPNRM is to provide financial support for improving the livelihoods of the rural poor based on the use and management of natural resources. The programme aims at assisting community managed sustainable natural resource management based livelihood projects.
2. UPNRM envisages a shift from project based approach to programme based approach and a gradual shift from grant based to loan based NRM project. Hence, the programme is largely loan based. However, need based grant component upto a maximum of 20 % ceiling of the total UPNRM financial assistance may also be considered under the project. The grant component may be towards infrastructure support for managing the project, capacity building, training, experts/consultancy required for the projects, etc.
3. The activities which may be considered for NRM related activities under UPNRM may be both short term (crop loan) as well as long term (investment activities). The investment activities  are listed below:

The above list of activities is eligible only for recently completed or on-going watershed areas where core NRM activities viz. soil and water conservation, rehabilitation and management /Community Forest management, biodiversity conservation), farming systems management, etc. has already been taken up under various watershed development programmes (The list is illustrative only and not exhaustive).

1. The crop loan component shall not be more than 30 % of the total loan requirement under the project.
2. The interest rate under UPNRM will vary as may be decided by NABARD from time to time. The rate of interest to be charged from the ultimate borrowers / beneficiaries may be decided by the  NGOs/ channel partner or implementing agency but it should not be more than the 3 %  above the rate being charged by NABARD from the NGO / Agency.
3. The role of various village level institutions viz. VWC, SMS and SHG in planning, identification of borrowers, implementation and monitoring of the project should be clearly elaborated in the proposal.
4. The NGO is not required to submit the list of borrowers alongwith the project proposal. However, once the project is approved by NABARD, the NGO / channel partner is required to submit activity wise details of the borrowers alongwith application for disbursement of loan.
5. Once the project is approved by NABARD, NGO/ channel partner is required to execute certain loan documents which include Resolution from their Board / Governing body for availing loan, Acceptance of terms & conditions of sanction , Loan Agreement, Demand Promissory Note, Deed of Hypothecation of assets , Implementation agreement between the agencies if more than two agencies are involved in the project, Collaterals if any available with the channel partners, Assignment of book debts, etc.
6. The proposal format is illustrative only and any other information, if any, relevant to project may be provided.
7. In order to help the NGO/ channel partner if firming up the proposal, some of the columns have been filled / partially filled. Other specific details, if any, may also be provided in these columns.
8. Generally the project period should be such that repayment of loan is completed within 3 years and in exceptional case it may be upto 5 years. So the activities need to be selected accordingly.

Preparation of Project Proposal on NRM Related Activities under UPNRM in Completed and /or On-going Watershed Projects