Rural Entrepreneurship Development Programme (REDP)
Rural Entrepreneurship Development Programme (REDP) is one of the important NFS
promotional programmes supported by NABARD for creating sustainable employment
and income opportunities in a cost effective manner for the benefit of educated
unemployed rural youth.
Developing entrepreneurial and activity-oriented skills among unemployed rural youths
willing to set up small/ micro-enterprises by assisting Voluntary Agencies (VA)/ Non-
Governmental Organisations (NGO)/ Development Agencies (DA)/ RUDSETIs etc. with
good track record in conducting REDPs.
Features and Coverage of REDP
REDP comprises 3 distinct phases, viz., pre-training, training and post-training phase.
The success of the programme depends on the strict adherence to these phases.
Detailed survey for identifying potential business activities/ market, publicity, awareness
creation and motivational campaign, Coordination with various agencies - especially
banks, Govt. Dept.. Formation of Selection Committee, Project Monitoring Committee,
Selection of trainees etc.
The duration of the programme is 6-8 weeks. Training module comprises : Achievement
motivation, Opportunity identification and guidance, Knowledge on supporting agencies
and schemes, Preparation of project reports/profiles, Management of resources (men,
material, money), Marketing aspects, Book-keeping/Accounting. In case of technical/
activity based REDP, inputs on technical aspects/ skill development/appropriate
technology will be included. Case-studies on potential activities, field visits, practical
work, visit to successful units, etc., to be integral part of training programme.
Facilitating credit linkages for setting up units and Escort services to trainees for atleast
NGOs / Voluntary Agencies / Development Agencies and RUDSETI type institutions.
NABARD provides promotional assistance to capable agencies with good track record
and professional competence to successfully implement REDP.
Recent Initiatives in REDP
With a view to accelerate the process of REDP and to achieve the desired objective at a
faster pace, NABARD has initiated the following steps :
Institutionalisation of REDP
In order to have a focussed direction in the implementation of REDP, NABARD has
decided to forge long term collaboration with 3 or 4 selected VAs / NGOs in each State.
With a view to ensure setting up of units as well as their successful management, it has
been decided to encourage Technical / activity based REDP. Consequently, select ITIs
have also been included as eligible institution for conducting REDP.
Incentive based REDP
To ensure continued follow-up/ monitoring and escort services to the trainees, an
incentive scheme has been evolved whereby the REDP implementing agencies will be
suitably rewarded with cash incentives based on the number of trainees setting up their
own units, preferably with bank loan.
RUDSETIs /RUDSETI type of Institutions
- As on 31 March 2011, date, we have 26 RUDSETIs/RUDSETI type of
institutions across the country covering 253 districts in 14 states.
- We are supporting these RUDSETIs by reimbursing 50% of the recurring cost and
capital expenditure to the extent of Rs.5/Rs.10 lakh for existing/new Institutes.
Cumulatively since inception, an amount of Rs.829.36 lakh ( as on 31 March
2011 ) has been sanctioned for conducting 3469 Entrepreneurship/skill
Development programmes and trained 63317 rural youths.
GOI Mission to promote RSETIS:
GOI, MoRD since 2007-08 under National Skill Development mission has fixed a
target of developing skill of 50 crore people by the year 2022. With a view to achieve
this ambitious target all the banks had been advised to set up atleast one RUDSETI
type institution in each district. NIRD has submitted 161 proposals to the MoRD as
on 24.03.2009 for approval. The MoRD had approved the establishment of 110
RSETIs in 14 States and released an amount of Rs. 10468.71 lakh to NIRD during the
year 2008-09. NIRD has communicated the approval to 103 RSETIs and released an
amount of Rs.1496.18 lakh for setting up 32 RSETIs in 9 States. We have advised
ROs in August 2008 that they can fund training programmes conducted by RSETIs
(other than Govt sponsored programmes) on merits.
Progress and impact : Position as on 31 March 2011 is as under :
- During 2010 - 11, 3327 REDPs/SDPs were supported benefiting 73194 rural
youth and involving grant assistance of Rs.1233.52 lakh. As on 31 March 2011,
the cumulative grant assistance of Rs. 8335.05 lakh has been extended for
conducting 17859 REDPs/SDP covering 4.36 lakh persons. Besides an amount of
Rs.88.03 lakh was sanctioned to RUDSETIs for Capital expenditure.
Financial Assistance - Components
NABARD provides promotional assistance to select agencies to meet the recurring
expenditure in conducting REDP. Under institutionalisation of REDP, the select
institutions are provided with need-based capacity building support and long-term
assurance by way of continued financial assistance, for conducting REDP. Some of the
major items that are covered under grant assistance include :
- Cost of pre training survey
- Selection of candidates
- Inauguration and valediction
- Rent for training hall
- Reading material for trainees
- Stationery, tool kit
- Stipend in exceptional cases
- Raw material
- Hire charges, electricity charges
- Honorarium for trainer-motivator, guest faculty, coordinator
- Exposure visit of trainees
- Overhead cost
- Expenditure on follow up/escort services.