PRESENTATION BY

NABARD Regional Office, Gujarat

NABARD SDC Rural Innovation Fund

Quotable Quotes:

“ The next 10 years would be dedicated as a decade of innovation ” – President of India in her address to Parliament on 04th June 2009.

“ Education and Innovation will be the currency of the 21st century – President Obama, Cairo, 07th June 2009

What is innovation ?

Innovation is all about converting ideas into new or improved products, processes and services.

Ideas need to be processed and evaluated for deriving benefits and practical use.

No dearth of innovative ideas. Challenge is to spot them and help develop them for common good.

NABARD SDC Rural Innovation Fund

NABARD SDC Rural Innovation Fund

Objective:

To try out new ideas and innovations with a scaling up potential, in Farm, Non farm & Micro finance sectors, for promoting livelihood opportunities and employment creation in rural areas and facilitating financial and business promotion services for the poor.

Guiding Principles

Activities in Farm/ Non-farm/ Micro Credit sub-sectors/ thrust areas

Poor focused

Innovative/ Experimental

Demonstrative

Replicable

Commercially viable models

Guiding Principles (cont..)

Involves development of new products/ Processes/ Services

Includes prototyping/ piloting/ field testing of the innovation

Patenting the innovation

Extension Support

Eligible Activities

All innovations and related activities in FS, NFS and micro finance sectors such as

Those providing technology and skill upgradation, inputs supply, sustainable employment, infrastructure development

Undertake innovations to improve the efficiency of credit delivery and other support services.

Eligible Activities (contd..)

Patenting innovations leading to commercialization of the idea through licensing or otherwise.

proposals which aim at increasing productivity and profitability of operations of the farmers,

artisans, handicraft persons and rural people in general.

projects that help in reducing drudgery, improving access to market, projects that help better

sanitation, health and hygienic conditions and environment in rural areas.

Eligible Activities (contd..)

Proposals, which help in creating sustainable employment opportunities in rural

India.

Proposals, which improve farm practices, and help in conserving the land

fertility.

Research studies for documenting the innovations already taking place in rural

areas and examining issues concerned with rural cottage & village industries

/farm sector / farming practices.

Eligible Institutions/ Individuals for Support

Registered VAs/ NGOs, Community/People based organisations/Trusts, Cooperatives/ KVKs/ PRIs with proven track record

Group of Persons like Farmers Clubs, SHGs, Producer Groups,Civil Society Organisations (formal or informal)

Academic Institutions like Universities/ Research Institutions

Any organisation eligible for refinance support from NABARD

Eligible Institutions/ Individuals for Support(cont..)

mFIs/ Other financial institutions extending financial services to rural poor.

Corporates or organizations floated by corporates for taking up rural development activities.

Any other organization whose objectives/ activities are in consonance with RIF Objectives.

Individuals/ proprietary concerns/ partnership firms with proven competence to implement the project

Criteria for Selection of Beneficiaries

Projects which have no access to alternate funding avenues given top priority.

For individuals, their competence for implementing the project will be verified through references/ other means

In case of Organisations - At least 2 years’ of existence, proven track record in development initiatives, financially stable and organizationally well equipped to implement the project.

For mFIs, the criteria laid down by mCID for SHG- Banks linkage programme will be applicable

Eligible items of expenditure for funding

Items of expenditure crucial for implementing the project.

Administrative and recurring costs including core staff’s salary and other miscellaneous expenditure

Items such as expenditure on patenting the product and other statutory levies

Capital Expenditure for buildings, vehicles, etc. will not be generally considered and be part of the innovator’s contribution. Exceptions in the case of hilly areas and resource poor regions.

Rent for Common Service Centers, Common Work sheds for workers, etc. on merits.

Quantum/Mode of Assistance

Innovator encouraged to bring in own contribution to the maximum extent possible for the project (including support from other possible sources)

Only the balance subject to a maximum of 90% of the project cost can be considered for funding

Funding can be made by way of grant, loan, venture capital assistance, etc. or a combination.

Preferred sectors

Dry land / rain fed farming

Innovative rainwater harvesting for rural dwellings

Rural energy from biomass/ agricultural wastes, Techniques for

increasing the value of crop residues and non-crop bio mass

Community regulation of distribution and use of water and

energy

Storage devices for agricultural and rural products

Innovative methods of managing Common Property Resources.

Materials and designs for rural roads and Rural sanitation and

waste disposal.

Progress so far

Projects sanctioned all over India (no.s) - 120

Funding support - 2400 lakh

Projects sanctioned in Gujarat (nos.) - 8

Funding support - 75 lakh

General shortcomings noticed

Lack of innovative element

Pure research without field applicability

Very high project outlays

Bankable commercial ventures

Not environmental friendly.