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Income Generation Activities


      PMKSY-WD is a program of GOI aims at improving the productivity of dry land agriculture through land treatment interventions. These points are drawn in the backdrop of common guidelines for watershed development projects which emphasis on the livelihood orientation to watershed projects.


        These guidelines mainly constitute the objectives of the income generation activities, the criteria for selection of beneficiaries, capacity building, the funds availability, fund disbursement procedures, IGA sub-plan preparation, implementation and management with the role of different partners.



Objectives of IGA under PMKSY-WD


        A typical watershed program provides benefits to the landholding families and the benefit accrued is directly proportional to the holding size of a family. Landless and marginal farmers are not benefited much if one concentrates only on land treatment. To make this program as an inclusive process of development with due consideration for gender and equity issues IGA is been considered as an important component. Added to this, landless and marginal sections of the society have been traditionally depend on the common land which are usually to be found on the upper reaches for their fuel and fodder requirement. Hence, unless one takes them into confidence while treating such lands sustainability of the treatments taken is in doubt. If one has to think of the sustainable practices like stall feeding or controlled grazing we need to include those people who depend on these sources for their livelihoods. In such a situation IGA provides an excellent opportunity to involve all the sections of the society in our endeavor of improving the living standards of rural population in an inclusive approach.



Method of Implementation


     The implementation strategy involves the selection of beneficiaries, capacity building, setting-up IGA/ME ventures, linkages to financial institutions and market, counseling for problematic ventures, etc. IGA implementation shall be done through the following steps;



Criteria for selecting the SHGs


  • The SHG should be at least 6 months old
  • The SHGs shall meet regularly at least once in a week.
  • The SHG should have members belonging to landless and marginal farmers category
  • In case if there are few members who are not meeting the criteria of vulnerability, still that SHG may receive MED fund (Micro enterprise development fund) from the project. However they will not be selected for EAP or EDP training under the project. They will be kept out while preparing the sub plan. Since MED fund adds into the overall corpus of the SHG, these members can avail loans in later stages after the recovery of loans lent to beneficiaries under IWMP sub plan.
  • The SHG should have been functioning effectively
  • All the members should have been saving at least a minimum amount regularly
  • The average attendance of the members in the meeting should be at least 80%
  • The SHG should have commenced internal lending to its members and recovery of loan lent
  • Recovery per cent should be at least 80%
  • The SHG should have assessed by adopting “Self Assessment method” and been assessed as ‘GOOD’ or at least ‘AVERAGE’.
  • The SHGs shall have completed the all three trainings of minimum modules with the concept of SHGs managing savings, credit and books of accounts and documentation
  • All the selected SHG members should have attended EAP training ( about 10 members/group).



Criteria for selection of beneficiaries


  • The beneficiary should be from with in the jurisdiction of the watershed
  • He/She should be a member of the SHG group which has been evaluated, graded and included under the project
  • The beneficiary should be among vulnerable families and belong to the category of landless and marginal farmers. Among these priority has to be given to women, scheduled castes and scheduled tribes
  • Priority should be given to the beneficiaries who are within the age group of 18 to 60 years
  • If any SHG members from the vulnerable family is not in a position to take up IGA due to old age or any other valid reasons, their sons, daughters, son in law or their children may be allowed. However, entire responsibility of repayment shall be on the member of the SHG
  • The beneficiary should have the good track record of regular savings and repayment.
  • The beneficiary should have already availed at least one loan in the past and should have repaid it.



 Entrepreneurship awareness programme (EAP)


  1. All beneficiaries will be given Entrepreneurship Awareness training for 2-3 days.
  2. This trainings could be conducted either by hiring the services of trained personnel from or entire training could be outsourced to an external agency. The decision on this will be communicated in due course of time.
  3. These trainings could be arranged at sub watershed level itself or at a convenient place nearby or any training centers identified
  4. Cost of the entire trainings will be met by the project.
  5. In this training the beneficiaries will design individual or group business proposals for traditional and small venture IGA that do not require skill training.
  6. By the end of the training business proposal for all the individuals should be ready.



Skill based Entrepreneurship Development programme (SEDP)


  1. Those who opt for higher skill based IGA/ME will be given skill based EDP training from among EAP trainees. It is expected that maximum of 30% would require skill training.
  2. However, in such cases if skill training is required for more than 30% of the beneficiaries, one need to take the permission of the head office with detailed explanation.
  3. Those who opt for skill training will be imparted training on the particular trade skill along with a higher-level knowledge and skills on entrepreneurship development and management.
  4. Depending on the type of skill training required and availability skilled man power and infrastructure, this trainings could be conducted either by hiring the services of trained personnel from or entire training could be outsourced to an external agency. The decision on this will be communicated in due course of time.
  5. These trainings could be arranged at sub watershed level itself or at a convenient place nearby or any training centers identified.
  6. Cost of the entire trainings will be met by the project, guidelines to meet this expenditure will be issued later
  7. In this training the beneficiaries will design individual or group business proposals for skill based enterprises.
  8. By the end of the training business proposal for all the individuals should be ready.



Preparation of IGA sub-plans


  1. The IGA sub-plans are to be prepared at the SHG level and the SWS level on the basis of business proposals.
  2. Immediately after the EAP training IGA sub-plans are prepared for 70% beneficiaries.
  3. After the SEDP training additional IGA sub-plans are prepared for 30% beneficiaries who opted for skill based IGA/ME.
  4. NGO shall promote at least 2 to 3 group enterprises per sub-watershed.
  5. It is also proposed to identify some specific activities which will be made mandated to take up in specific regions or districts. However these activities shall be taken up only after the consent of the beneficiaries by explaining all possible pros and cons.
  6. These activities will be listed and circulated after a thorough research and market survey.


Funds for IGA component


  1. The cost of EAP & SEDP training will be met entirely by the project
  2. The EAP and SEDP trained persons will be provided funds to establish IGA at the rate of Rs.25,000 per SHG.



Follow-up and handholding


  1. The SHGs which need additional financial assistance shall be linked to financial institutions by the local NGOs agencies with the support of WDT.
  2. WDT should conduct a meeting of local public sector banks along with district lead bank to seek their support and guidance.
  3. NGO shall provide counseling support for establishing and managing the micro-enterprises by vulnerable families. Special care to be provided for problematic IGA/ME ventures after their establishment.
  4. IGA specialist at NGO should seek the help and guidance from the WDT for any problems related to setting up of the activity and in running the enterprise.
  5. The needy entrepreneurs will be exposed and linked to markets at the appropriate level by the local NGO with the assistance of WDT.



Skill based Entrepreneurship Development programme Training (SEDP)


Local NGO shall take lead in imparting the EAP training, Skill based EDP with exposure visit and provide follow-up and handholding support with support of WDT. All these process should be supported and monitored by WDT team.


The EAP and SEDP training funds are directly met by the project through DWDO/AO. The funds meant for IGA establishment (Revolving fund) shall be released to EC through DWDO. In turn, the EC shall release it to the SHGs.


 skill training may be imparted to interested beneficiaries depending on the skill man power requirement in nearby areas or cities. It is also envisaged to do a survey of industries with potential of out sourcing some of their skilled or semi skilled jobs to our SHGs. In this regard series of meetings of district advisory committee shall be arranged with due follow up to identify such activities.


Micro-enterprises or IGA may be established individually or as a group venture. Business proposal shall be prepared for all the beneficiaries at the end of 2 days EAP training.



Preparing IGA Sub-plan


  1. After EAP training, a draft IGA sub-plans to be prepared in the training venue on the basis of business proposal.
  2. Within a week IGA sub-plan has to be finalized at the SHG level. Any changes to be incorporated.
  3. The local NGOs and WDT along with the external resource person/agency shall help the SHGs to finalize the IGA plan.



Tips of identifying the activities and preparation of sub



  1. Within a week after receiving the SHG level IGA plans the Executive Committee shall prepare a consolidated sub watershed or EC level IGA sub-plan in format-2 given in annex-3. Here also the local NGOs and DRG along with the external resource person/agency shall help the SHGs to finalize the IGA plan. The draft IGA sub-plans to be placed before the Grama Sabha (General Body) and with their approval it should be submitted to the DWDO/WDT.
  2. Within a week after receiving the IGA sub-plan the DRG team shall scrutinize the plan. After the scrutiny if there are any changes are to be made, changes shall be made only after getting the consent of concerned SHGs and ECs.
  3. Similar process to be followed for preparing additional IGA sub plans for those who opted for skill based IGA/ME.



The roles and responsibilities of different partners in IGA implementation


 WDD (Head Office)


  • Overall responsibility of planning, implementation, monitoring and evaluation of IGA.
  • Finalization of guidelines and taking policy level decisions
  • Issuing of orders/circulars as and when required
  • Funding as planned.




  • Identifying the Specialist Agency/resource persons for EAP,EDP and skill trainings
  • Release of funds as per the plan to Specialist Agencies and Sujala Watershed Sanghas
  • Monitoring the different IGA trainings, progress and settlements



 IGA specialist Agency


  • Capacity building of SHG members opting IGA/ME and the staff of partner agencies like FNGOs - Organising Facilitators Training to staff of partner organiations and EAP training and Skill based EDP training to selected entrepreneurial trainees
  • Providing backward and forward linkage support services in establishing viable and sustainable IGA/ME ventures.
  • Facilitating and taking lead role in preparing IGA sub-plan or additional sub-plan and their approval, linking SHGs to financial institutions and also to insurance institutions.
  • Facilitating and taking lead role in establishing market linkages by IGA/ME entrepreneurs.
  • Providing progress reports in MIS formats to head office and JDA office.
  • Providing follow-up and counseling support for problematic and challenging IGA/ME ventures.
  • Utilization of Revolving fund.





  • Selection of entrepreneurial interested beneficiaries
  • Organizing selected beneficiaries for EAP and SEDP training
  • Finalization IGA (vulnerable) sub-plan at community level
  • Contribution mobilization for IGA ventures
  • Implementation of sub-plan
  • Assisting Specialist Agencies in preparation of IGA sub-plan
  • Assisting Specialist Agencies during follow-up phase for linking to financial institutions and markets
  • Preparing and sending progress reports to LNGO in MIS formats on time
  • Monitoring the progress and proper utilization of revolving fund
  • Ensuring the repayment of revolving fund availed as loan by members





  • Selection of suitable beneficiary members
  • Releasing the fund to SHGs based on the plan
  • Monitoring the progress and settlements of IGA/ME




  • Releasing the project fund to entrepreneurial candidates as loan at nominal interest rate (as decided by SHGs) to set-up an enterprise
  • Accessing fund from financial institutions for extra amount required
  • Recovering the loan amount and repayment to financial institutions
  • Monitoring the progress and settlements of IGA/ME
  • Ensuring repayment of revolving fund and revolving the same for issuing new loans to other members.


Last Updated: 03-10-2020 03:57 PM Updated By: Manjula C

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