SHGs across the country being geared up to prepare the Village Poverty Reduction Plan

• Since 2018-19, Self Help Groups (SHGs) under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) are mandated to participate in annual GPDP planning process and to prepare VPRP.


• It allows poor families, who are members of SHGs formed under DAY-NRLM, to raise their demands in a participatory method and submit the final plan to the Gram Panchayats for consideration.

• DAY-NRLM aims to reduce rural poverty, by mobilizing 10-12 crore rural households into SHGs.

• Gram Panchayats are constitutionally mandated for preparation of GPDP for economic development and social justice utilizing resources available with them.

• VPRP is prepared by SHGs and their federations which need to be integrated with GPDP.

Objectives of VPRP:

• Prepare a comprehensive and an inclusive demand plan of the community for local development.

• Facilitate an interface between the SHG federation and Panchayati Raj institutions for development of demand plan.

• Strengthen the community-based organisations and their leadership for active participation in poverty reduction activities.

Components of VPRP:

Demands under VPRP are categorized into five major components:

• Social inclusion – plan for inclusion of vulnerable people/household into SHGs under NRLM

• Entitlement – demand for various schemes such as MGNREGS, SBM, NSAP, PMAY, Ujjwala, Ration card etc.

• Livelihoods – specific demand for enhancing livelihood through developing agriculture, animal husbandry, production and service enterprises and skilled training for placement etc.

• Public Goods and Services – demand for necessary basic infrastructure, for renovation of the existing infrastructure and for better service delivery

• Resource Development – demand for protection and development of natural resources like land, water, forest and other locally available resources

• Social Development – plans prepared for addressing specific social development issues of a village under the low cost no cost component of GPDP


Mains Paper 3: Economy

Prelims level: Village Poverty Reduction Plan

Mains level: Objectives and components of the Village Poverty Reduction Plan

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