STRATEGIC INITIATIVES FOR THE PROMTION OF SUSTAINABLE

LIVELIHOODS IN THE WATERSHED PROGRAMME

Vo l u m e 1
Strategies and Practices Series Andhra Pradesh Rural Livelihoods Programme
The Andhra Pradesh Rural Livelihoods Programme (APRLP) is the joint
initiative of the Government of Andhra Pradesh and DFID (UK Government).

© PSU-APRLP 2001. All rights reserved. No part of this publication may

be reproduced in any form or by any means, electronically, mechanically,
by photocopying, recording or otherwise, without the prior permission of
copyright owners.

PSU-APRLP
Rajendranagar,
Hyderabad - 500 030
Andhra Pradesh.
 Volume 1
Strategies and Practices Series
Andhra Pradesh Rural Livelihoods Programme, Hyderabad
Acknowledgements:
This document has been consolidated by Mr. N.L. Narasimha Reddy and Ms. Sarah Montagu of the
PSU. It has evolved through the collective experiences of various stakeholders in the programme and
through discussions with the Commissioner, Rural Development; Commissioner, Women
Empowerment and Self-Employment Project Management Unit; APRLP Project Directors-DPAP/
DDP of Ananthapur, Kurnool, Mahaboobnagar, Nalgonda, and Prakasam; Project Directors DRDA of
Ananthapur, Kurnool, Mahaboobnagar, Nalgonda and Prakasam; MANAGE; DCBC members of
Ananthapur, Kurnool, Mahaboobnagar, Nalgonda and Prakasam; WASSAN; and the thirteen APRLP
pilot projects.

Thanks are also extended to Mr. Sanjay Gupta (PSU, APRLP), Ms. T.K. Sreedevi (PSU, APRLP),
Mr. Bhaskar Prasad (PSU, APRLP) and Dr. N.K. Sanghi (MANAGE) for their inputs in preparation of this
document.

Strategic Initiatives for the Promotion of Sustainable

2 Livelihoods in the Watershed Programme
Preface
Strategic initiatives for the promotion of sustainable livelihoods

The Andhra Pradesh Rural Livelihoods Programme (APRLP) is a joint initiative between the Government
of Andhra Pradesh and the Department for International Development (DFID; UK Government). The
aim of APRLP is to work with the on-going watershed programme to improve the livelihoods of the
poorest people in rain-fed areas and to promote the participation of women in land-based development
interventions and in other livelihood initiatives. It aims to integrate these initiatives within the watershed
programme and thereby create livelihoods-based watersheds. This book outlines the strategic and
practical steps that APRLP is taking to make sustainable livelihoods a reality in five districts of Andhra
Pradesh.

This book is the combined effort of the Commissionerate, Rural Development and the Programme
Support Unit, APRLP. It covers the strategies and approaches developed to promote livelihoods,
particularly for the poor, women, and the landless and other vulnerable families. This document will be
the first in a series of volumes. The second volume will cover operational aspects of the strategic
initiatives referred to in this volume. Within the series other documents will be published on specific
topics, for example on women self-help groups, watershed selection criteria, the participatory situation
analysis, etc.

S.P. Tucker
November, 2001

3
Contents

Index

Chapter Page

Chapter I Introduction 5

Chapter II Mandal and Watershed Selection Process 11

Chapter III Collaboration with NGO-Project Implementation Agencies 14

Chapter IV Mandal Approach for Livelihood Initiatives 17

Chapter V Livelihood Promotion at the Village Level 19

Chapter VI New Livelihood-based Watersheds 24

Chapter VII Decentralised Capacity Building 28

Strategic Initiatives for the Promotion of Sustainable

4 Livelihoods in the Watershed Programme
Chapter I
Introduction

The Andhra Pradesh Rural Livelihoods landless and vulnerable families) and prioritising
Programme (APRLP) is a joint initiative between their stakes and interests in planning and
the Government of Andhra Pradesh (GoAP) and implementation.
the Department for International Development
In the above context, the GoAP and DFID,
(DFID; UK Government). The Government of
conceived APRLP, to expand the scope of pro-
Andhra Pradesh gives high importance to the
poor activities in the on-going watershed
development of rainfed areas. GoAP initiated
programme. The goal is that effective and
watershed development programmes in the early
sustainable approaches to eliminate poverty are
1980s on a small-scale. From 1994 onwards,
adopted in drought prone areas of Andhra
efforts were concentrated in order to cover all
Pradesh. The project will follow the national
rainfed areas. As part of this programme, a large
amount of resources have been invested. A joint watershed guidelines and pilot new approaches

study conducted by DFID and the Government of to help GoAP identify policy changes to increase

India highlighted that the programme should aim impact on rural poverty. The approach is to help

at the overall development of rainfed areas by reduce poverty and vulnerability to drought, through

taking into account all players (landholders, land rehabilitation, improved farming practices,

Introduction 5
social mobilisation, employment and non-land
based income generation. Initiatives will be
sequenced to match progress in capacity
building. Each activity will be examined for ways
Table 1: Project components and outputs (source APRLP Project Memorandum)
Component
Watershed-based sustainable rural
livelihood initiatives
Capacity building for primary and
secondary stakeholders
Exploration of innovative approaches to
enhance overall impact of the watershed
programme
Lesson learning and policy influence
Strategic Initiatives for the Promotion of Sustainable
6 Livelihoods in the Watershed Programme
to maximise access or involvement by the poor.
The project has 4 main components with overlap
and synergy between them. (see Table 1 below)
Outputs
n Productivity of land and water sustainably and
equitably in creased in 500 watersheds
n Higher incomes and employment opportunities
(land and non-land based) created for
the poor in 500 watersheds
n Capacities of GO/NGOs/PRIs enhanced to support
watershed based rural livelihoods for poor women and
men in 2,500 watersheds
n Community capacity enhanced for the integration of
equity and gender concerns in resource
management in 2,500 watersheds
n Innovative approaches tested to enhance the overall
impact, equitable sharing of benefits and the
sustainability of watershed plus approach
n Approaches developed (land and non-land based)
and replicated widely
n Policy strengthened to ensure greater impact for
women and the poorest with more effective working
partnerships between Government and NGOs.
Institutional Building and Strengthening
APRLP is a support system to GoAP. The Special
Chief Secretary (Rural Development) is in overall
charge of the programme. APRLP is to initiate
activities in 500 new watersheds and work with
n Similarly, a workshop was organised to revisit
2,000 on-going and completed watersheds in
Ananthapur, Kurnool, Mahaboobnagar, Nalgonda
and Prakasam Districts. Thus, the programme is
being implemented through the existing system.
It was recognised that functionaries tended to
perform the role of the functionary below them. In
addition, the programme envisaged that a
number of support systems (PSU, DCBCs, etc.)
would be required. This meant that a detailed
look at the current roles of institutions and
n Programme Support Unit (PSU): led by the
functionaries was required. Further, the roles of
newly constituted institutions needed to be
defined and accordingly aligned to complement
those of existing institutions. In order to address
these issues, the following processes were
initiated.
n A workshop was held at state-level to address
the institutional options and required roles of
actors in view of APRLP’s remit. Mr. Roger
Fernando facilitated this initial workshop and
has since followed this up with periodic visits
and consultations with stakeholders, as the
project has progressed.
the roles and responsibilities of secondary
stakeholders with reference to watershed
implementation level. At district level, DCBCs,
with the support of the PSU, have been
organising a number of consultations with all
secondary stakeholders to define roles
relating to different programme components.
Based on these consultations, and on-going
learning, the strategic roles of different
institutions are outlined below.
PSU Coordinator, defines programme
priorities and provides the necessary support
to the Commissioner Rural Development
(CRD) in the implementation of activities. The
main responsibilities currently held by the PSU
will eventually shift to the Programme
Management Unit (PMU), which is to be
located in the office of CRD.
Introduction 7
n Project Directors (Drought Prone Areas
Programme): implement the programme
under the overall guidance of the District
Collector. The watershed guidelines provide
for the constitution and effective functioning
of the District Level Watershed Committee
(DLWC). The Project Directors in all 5 APRLP
districts have been advised to ensure that the
above committee is in place in order
coordinate and guide APRLP.
n Assistant Project Directors: should be in
place to support the project directors in the
overall coordination of the management and
implementation of APRLP, which includes team
building at District Capacity Building Centre
(DCBC), Multi Disciplinary Team (MDT) and
Programme Implementation Agencies (PIA)
levels.
n District Capacity Building Centres
(DCBCs): each district needs to construct a
DCBC building and develop appropriate
systems for the sustainable provision of
capacity building services. Each district has
already been provided with professionals to
support the centre’s activities and introduce
1
The Centre for Development Studies (CDS) is a Public Society created in order to channel foreign currency funds for the
implementation of APRLP and other bilateral programmes. It also provides strategic support services to the programme.
APRLP change processes into the on-going
programme. The primary responsibility of the
DCBCs is developing appropriate capacity
building strategies for different stakeholders
with reference to APRLP initiatives and then
managing and coordinating the required
inputs. If any district requires additional
professionals or has any vacant posts, they
need to recruit through Centre for
Development Studies (CDS) 1 . DCBCs will
develop capacity building plans (annually or
six monthly) in consultation with different
stakeholders, which need to be linked to the
project cycle. Job charts for DCBCs can be
revised, from time to time, in line with the
emerging requirements of APRLP.
n Managers for the Geographical
Management Information System and
Accounts: in addition to DCBCs, each district
has been provided with personnel for the
Geographical Management Information
System (GMIS) and accounts.
n Sub-Project: APRLP activities will be
implemented at district-level through a sub-
project approach.
l Coordinators for improved accountability:
in order to establish clear responsibilities
for the implementation of APRLP,
coordinators for the programme need to
be in place at all levels. Districts have been
advised to identify MDT coordinators and
negotiate with PIAs for appointing a PIA
coordinator with full-time responsibilities.
l Networking PIAs: The PIAs at each MDT-
level will be networked into groups for
training, hand-holding and cross-sharing
of information.
l Data Management at MDT-level: Each
MDT will have a database which feeds into
the decision support system. A data entry
operator will be placed at MDT-level and
will be accessible to PIAs for all related
work.
l Part-time Service Providers: each MDT
may draw upon the services of part-time
specialists (e.g. young professionals) to
undertake activities such as monitoring,
participatory studies, etc.
l Subject Specialists: APRLP wants the
project directors to reconsider subject
specialisations throughout the DPAP
structure in view of the livelihoods focus.
The proposed subject areas are: social
mobilisation, agriculture, livestock and
watersheds. As such, the project directors
have been requested by the Commissioner,
Rural Development to put in place the
required Multi-Disciplinary Team (MDT)
members and MDT Social Mobilisers.
Management Support Systems
n Decision Support System (DSS): A system
for assisting decision-making in relation to
livelihood watersheds has been developed
based on experiences by WOTR in
Maharashtra. Each phase of implementation
will have specific activities and outputs.
Information on progress and performance will
be obtained through regular monitoring,
periodic studies, etc. The financial releases to
the PIAs and villages will be accordingly
monitored and regulated. The decision
support system is an important part of DPAP
organisational development.
n Participatory Monitoring and Impact
Assessment System (PMIAS): will include
Introduction 9
 a baseline, process monitoring, self-
monitoring tools (to be used at village-level),
quarterly and annual studies, database
management and GIS systems.
n Baseline and Process Study for APRLP:
The National Institute for Rural Development
(NIRD) will conduct the baseline study in all 5
APRLP districts. The sample size for the study
will be 30 watersheds (on-going, completed
and new) in each district. In 12 of these
watersheds, a detailed process study will also
be carried out by MANAGE. It will be correlated
on an annual basis with various livelihood
findings.
n Self-Monitoring: the Participatory Situation
Analysis has been developed and piloted in
all the districts. This tool is being used to
assess the village situation with reference to
SHGs, Watershed Committees, livelihood
activities, etc. Some of the charts will be used,
at regular intervals, for self-monitoring by SHGs
and watershed committees.
Strategic Initiatives for the Promotion of Sustainable
10 Livelihoods in the Watershed Programme
n Input and Output Monitoring: at different
levels, using Management Information
Systems linked to Geographical Management
Information Systems. MDTs will maintain and
update data related to watersheds and
livelihoods. This information will be made
available to the project directors and the
Commissioner, RD to support decision-
making. The GIS managers will have to be
involved in feeding in existing data and
rectifying data inconsistencies, where they
exist.
n Theme-based studies: Two to three issue and
theme based studies (quarterly and annually)
will be taken up to understand the effects of
innovations, experimentation done by APRLP.
These studies will also lead to in-depth
understanding and add to APRLP’s overall
learning.
Chapter II
Mandal and Watershed
Selection Process
Mandal and Watershed Selection: As explained
later in Chapter IV, in order to achieve greater
spatial impact and more effective livelihood
interventions a mandal approach is being taken.
APRLP’s selection process is aimed at targeting
poverty pockets within the district. During the
project design phase, the Centre for Development
Studies and Activities (CDSA), Pune prepared
poverty profiles (based on the 1991 census) for
each of APRLP’s districts.
The Programme Support Unit (PSU) discussed,
with district officers, the importance of using these
poverty profiles to select mandals. These profiles
take into account the multiple dimensions of
poverty and include indices of poverty deprivation,
of natural resource degradation, of accessibility,
etc. This information is then used in conjunction
with the new selection criteria (details are given
below) to short-list mandals and watershed
villages in each district. The GIS cell, along with
the district officials, has identified critically poor
mandals.
New Selection Criteria for Watersheds: A
consultative process (involving experts, officials
and practitioners) was followed in order to
improve the existing selection criteria to better
target villages with high levels of deprivation. It
was decided that due emphasis should be given
to criteria related to small and marginal farmers,
SC and ST population size, availability of
Mandal and Watershed Selection Process 11
Common Pool Resources, etc. These criteria were selection criteria were approved in the state-level
shared with district collectors and project steering committee in December 2001. Table 2
directors during the collectors’ conference in outlines the new selection criteria.
September 2001. Subsequently, the new

Table 2: New Watershed Selection Criteria

Criteria Maximum marks

Number of small and marginal farmers 15

% of SC / ST holdings 10

% of women organised in SHGs in the habitation 10

and participating in the programme

Status of groundwater 5

APSRAC priority 30

Livestock 5

Number of families affected/ involved in migration 10

and landless people involved in wage employment

Contiguity and macro watersheds for saturation 5

Availability of fallow/ waste/ CPR for the poor and 10

willingness of community to permit usufruct rights
to the landless

Strategic Initiatives for the Promotion of Sustainable

12 Livelihoods in the Watershed Programme
Once villages are short-listed using CDSA poverty
profiles, additional information is derived from a
range of sources such as APSRAC, NRSA, other
line departments, etc. in order to apply the new
selection criteria. The validity of the information is
then cross-checked by Multi-Disciplinary Teams
(MDTs) through field visits and conducting Gram
Sabhas, wherever necessary. This will enable each
district to arrive at a final list of villages.
It is very important that watersheds are selected
taking into consideration the area to be treated
as well as the population that will be covered.
Therefore, the districts need to analyse the per
capita investment per family and ensure parity
between resources allocated to a watershed vis-
à-vis number of households. For example, in
Pedda Voora Mandal, during the selection
process it was proposed that 3 habitations (6,500
ha) would be covered but on further investigation
it was found that there were only 170 families. As
per the Government of India Guidelines, per capita
investment cannot exceed Rs. 20,000.
Phased APRLP coverage: It is suggested that,
after mandals have been prioritised, the districts’
initial focus should be on those mandals where
there are at least 5 watersheds under or post –
implementation, where there is a strong
community institutional base or good Community
Based Organisations (CBOs), and full-time
Government PIA/NGO presence. This is to enable
better conditions for demonstration in the initial
phase.
n Number of completed and on-going
watersheds to be taken up under APRLP:
During 2001-2002, livelihood interventions will
be in at least 50-80 completed/on-going
watersheds in each district. This number may
be increased to 100-150 in 2002-2003, and
subsequently extended to other villages to
meet the overall target.
n Number of new watersheds to be taken
up under APRLP: During 2001-2002, each
district will identify 100 new watersheds and
initiate probationary processes in at least 50
watersheds. It may be necessary to select
10-20% more watersheds as some watersheds
may fail the probation phase.
Mandal and Watershed Selection Process 13
Chapter III
Collaboration with NGO-Project
Implementation Agencies

Within the Drought Prone Areas Programme
(DPAP), Project Implementation Agencies (PIAs)
are responsible for the day-to-day implementation
of the programme in a particular watershed or
watersheds. These PIAs have tended, in the past,
to be mainly government and only to work part-
time. APRLP has sought the following changes in
order to increase commitment and develop a
stronger and more appropriate interface between
the programme and community at the watershed-
level. PIAs should give quality time to the
implementation of the programme. The objective
is that capable NGO/GO should be selected as
partners (see Box-1 for selection criteria).
n Each district has a strong NGO presence.
NGOs with a proven track record in social
mobilisation (SHG networks, revolving fund
management etc) need to be recognised and
used for implementation of APRLP.
n Where the GO Project Implementation
Agencies (PIAs) are appointed, the district
should ensure that they work full-time.
n Other options such as using CBO networks
and Panchayati Raj Institutions (PRI) as PIAs
will also be explored. Where capacities
currently do not exist, efforts will be made to
groom such institutions to take up PIA roles in
the future.

Strategic Initiatives for the Promotion of Sustainable

14 Livelihoods in the Watershed Programme

On the basis of the districts’ preliminary selection
process of mandals and watersheds, a number of
PIAs have been short-listed. Based on the data
obtained from NGOs and also the district
databases, the NGOs have been profiled. Some
of these NGOs have also been considered for pilot
projects. These PIAs were given orientation at
AMARD on the processes involved in the
promotion of livelihoods in on-going, completed
watersheds and new watersheds. State-level
resource agencies such as MANAGE, MART,
APMAS, BASIX, and WASSAN were involved in
the process of strengthening their capacities.
APRLP’s work can commence in these pilot
watersheds whilst expanding into other areas on
a phased basis. As more PIAs join, they will be
organised into three groups for effective delivery
of training inputs and progress monitoring.
Pilot projects form an important part of APRLP’s
learning cycle, which also serve to visibly
demonstrate APRLP’s ideas and lessons. Such
projects are being instigated in the districts and
Collaboration with NGO-Project Implementation Agencies
Box-1:
Selection Criteria for PIAs
PIAs must
n have a minimum of 3 years of experience in rural development work
n be involved in NRM and other development activities
n be working locally where watersheds are proposed
n have a proven experience in community mobilisation, especially of women
n have quality staff, infrastructure, accountability and transparent
management systems.
n have experience in participatory process, micro-plan preparation, etc.
n exhibit a willingness to adopt the APRLP Agenda.
NGOs will be rejected if they are blacklisted by any other project or in
any other district; with pending disciplinary cases / enquires or
disposed for malfunctioning / misappropriation / any other offence.
It is advised that once PIAs are selected, the project directors do not
make changes in the larger interests of programme implementation.
generate experiences, lessons and ideas, which
feed into livelihood initiatives and practice
elsewhere.
There is a need to network NGOs for handholding
purposes and to promote cross-learning. A
number of resource agencies hired at the state
and district-levels will interact at regular intervals
with the NGO networks. These institutions include:
MART, APMAS, BASIX, ICRISAT, and WASSAN. It
is expected that some of the pilot NGO PIAs, with
15
requisite capacities, can also be used as resource
organisations at district-level (see Chapter VII).
Non-Negotiables for PIAs:
n Each PIA should appoint a full-time
coordinator to play a role in social mobilisation,
and who has administrative, supervisory and
n Where PIAs are allotted only completed
watersheds, they may engage the services of
two WDT members, subject to availability of
funds, for overall coordination and social
mobilisation and for livelihoods promotion.
n In respect to on-going watersheds, PIAs may

management responsibilities. hire a WDT-Livelihoods. On the basis, of the

watersheds allotment to PIAS, PDs may work
n PIAs should also have a social mobiliser and a
out different options for PIAs, subject to cost
livelihood promoter within their four-person
considerations as per budget and local norms.
watershed development team.

Strategic Initiatives for the Promotion of Sustainable

16 Livelihoods in the Watershed Programme
Chapter IV
Mandal Approach for Livelihood Initiatives
Livelihood promotion requires village initiatives
to be appropriately supported by higher order
activities. These are essentially support systems
to enhance access to government services,
markets and other aspects of the local economy.
APRLP is seeking to promote practices and
necessary changes in the systems and institutions
at mandal-level, in order to expand social and
economic opportunities for less advantaged
groups.
A mandal approach is also a means to
concentrate efforts and maximise effectiveness
of interventions through convergence. The mandal
approach is flexible and different options will need
to be initiated depending on local conditions.
However, each selected mandal will need to
develop a business plan, an organisational and
institutional development policy, information and
performance management systems centered on
community-based management. In general,
efforts will be aimed at:
n Strengthening demand, economies of
scale and bargaining power: through the
promotion or strengthening of SHG
federations and occupational groups (e.g.
fisherfolk / shepherd cooperatives) at mandal-
level to form mandal organisations. These will
promote advanced livelihood options by
coordinating and improving access to a range
of services, such as: government services;
external finance sources; capacity building
inputs; and, business development services.
Mandal Approach for Livelihood Initiatives 17

Box-2:
Practical steps to strengthen demand
n Networking primary stakeholders at the mandal-level (occupational groups,
producers, consumers, SHGs, etc.) for better access to services (through
increased bargaining power, economies of scale, etc.).
n Developing mandal-level institutions that can act as pressure groups on behalf
of women and the poor
n Improving supply: through the convergence
and development of services provided by
government, NGOs, research institutions,
technical institutes, micro-markets and other
informal service providers. This is aimed at
improving service delivery and creating an
enabling environment for sustainable
livelihoods for the poor.
Mandal Coverage: each APRLP district will select
mandals with a high incidence of poverty and
prioritise them for intervention (see Chapter III).
During the first six months, activities will be
initiated in completed and on-going watershed
villages in these mandals. New watersheds will
also enter into probation phase activities,
simultaneously. In order to cover all on-going and
Strategic Initiatives for the Promotion of Sustainable
18 Livelihoods in the Watershed Programme
Box-3:
Practical steps to achieve an enabling
environment for livelihoods
n Identify and develop support systems for natural
resource-based activities (on and off farm sectors)
n Identify potential sub-sectors by the districts through
livelihood mapping exercises (looking at skills, raw
materials, market linkages and market potential, etc)
n Coordinate services and technical resource
agencies around these sub-sectors
n Map, promote and strengthen shandies (micro
markets) to expand economic transactions
n Establish resource centres for specific growth
sectors providing a range of services including
technical and market advice, raw material and other
inputs, etc. and working in collaboration with the
appropriate government line departments. These
centres will be linked to each other and supported
by the Training and Technology Development
Centres (TTDCs) at district-level, and a state-level
resource centre (facilitated by the commissioner of
women empowerment and self-employment with
technical support from CARE-India).
completed watersheds, as mandated by APRLP,
interventions will be expanded to other mandals
in a phased manner.
Chapter V
Livelihood Promotion at the
Village Level
The village, or habitation, is to be the basic unit
for livelihoods. APRLP intends to change what was
a narrow focus on natural resource-based
watersheds to something wider and more
enduring: the livelihoods-based watershed. This
chapter outlines APRLP’s village-level initiatives,
which are common to on-going/ completed and
new watersheds. Chapter VI will highlight those
initiatives, which are specific to new watersheds
only and are in addition to those outlined in this
chapter.
In order to establish a strong foundation for the
promotion of sustainable livelihoods, focus initially
will be on strengthening the social and institutional
base. This will involve organising the poor into
Self–Help Groups (SHGs), developing a Village
Organisation (VO) by networking SHGs, and
establishing a revolving fund (RF) for livelihood
promotion. Each village has to undergo four
stages – planning, start up, consolidation and self-
reliance. The following processes are suggested
for each watershed. Additional aspects can be
taken up depending on the specific context:
n Understanding the situation in the village:
Participatory Rural Appraisal (PRA) exercises
and tools such as the Participatory Situation
Analysis (PSA developed by APRLP) are to be
used in each watershed in order to jointly
understand the status of village institutions,
availability of resources, current livelihood
practices, etc.
Livelihood Promotion at the Village Level 19
Box-4:
Conditions and agreements with the VO
n In first year, the VO has to organise a minimum
of 20 of the poorest households into SHGs.
n By the second year, all the poor in the village
should be organised into groups and brought
into the VO.
n Villages should be willing to provide usufruct
rights on CPR to the poor households organised
into SHGs and pass a resolution to that effect.
n VO should also be willing to meet costs of village
livelihood worker from the interest generated
from livelihood fund.
n PIAs will be responsible for establishing
operational systems and procedures. An MOU
with the PIA may be necessary to make it
responsible for democratic management of the
revolving fund and organisation of the poor to
be entitled for village revolving fund.
n The grant extended to the RF can be withdrawn
at any point of time, if the village fails to organise
all the poor into SHGs and follow democratic
practices in fund management and meet other
conditions laid above.
Strategic Initiatives for the Promotion of Sustainable
20 Livelihoods in the Watershed Programme
n Mechanisms for identifying the poorest of the poor: the most
vulnerable households in each village will be identified through a series
of discussions with groups, (poverty ranking exercises), and with the
whole community in a village Gram Sabha. APRLP is taking the
approach that the community as a whole must be part of the process
and has to be sensitised to the needs of the poorest and take an active
role in developing solutions. Therefore before starting livelihood
initiatives community planning at village-level is necessary.
n Creating a strong institutional base for livelihoods: the PIAs are to
consolidate community-based institutions such as SHGs, VOs and
Watershed Committees. The following process is suggested –
l Optimise the strength of existing self-help groups through capacity
building and involve them in organising the poor
l Organise all women from resource poor households to enable them
to participate actively in the programme
l Network all SHGs at village-level into a village organisation (VO;
see below and Box-4)
l In on-going watersheds, the watershed committee is to be oriented
and provided with appropriate capacity building inputs so that
they can be active partners in livelihood initiatives and support
SHGs.

n Listening to and protecting the poorest of the poor:
The Village Organisation (VO) will be the mechanism
through which the interests of the poor are raised,
addressed and protected. The VO will act as a pressure
group on behalf of women and the poor. The VO will play
a role in promoting livelihoods and establishing social
security measures or safety nets within the village.
n Revolving Fund: is to be established by the VO in each
village to improve the poor’s access to credit and thereby
expand their livelihood opportunities. To start with the VO
will mobilise resources from SHGs and utilise them for
meeting livelihood needs (as identified by SHGs). Based
on performance during the first 6 months, APRLP funds
will be released to VOs against plans (see Box-5 for further
details).
n Livelihood Worker: each village will have a livelihood
worker to provide continuous support to the village
institutions. The livelihood worker is responsible for
organising the poor; networking village-level SHGs into
VOs for the implementation of livelihoods action plans;
and, revolving fund management. The livelihood worker
should work in liaison with respective WDT functionaries.
Livelihood Promotion at the Village Level
Box-5:
Revolving Fund (RF) for livelihood promotion
How will it be formed? The initial capital is the groups’ own
resources i.e. share capital mobilised from groups, membership fees,
etc. Other sources will be an APRLP grant, bank loans, etc.
Why? to encourage existing SHGs to network at village level, to pool
initial capital, to be responsible for organising left-out poor into SHGs,
and to provide impetus to livelihood based initiatives and to expand
the entitlement base of the community in general and of the poor in
particular. This should be evolved into a village micro-finance system
over time to meet livelihood credit requirements at the village level.
What will it do? RF will become a main source of credit to the poor
for taking up livelihood initiatives. SHG members will obtain higher
loans from the revolving fund for livelihoods promotion, while
continuing group level savings and credit activities to meet
immediate consumption. Members will not only get loans for
undertaking activities for improving livelihoods, but also will be
supported with training and other services.
Who will get it? The VO will support SHGs, based on SHG annual
plans submitted to the VO, who will in turn lend to their members.
21
Box-6:
Common minimum programme options identify a range of viable options in favour of
n Identification, development, and use of CPRs (i.e. plantation on waste lands, the poor and women. Every year releases will
pisci-culture in tanks, etc) with usufruct rights for the poor be regulated and phased according to
n Backyard poultry, kitchen gardening, vermi-composing, seed banks, etc. community responsiveness. The livelihoods
n Renting fallow land with clear usufruct rights for the poor and landless action plans should be discussed and

n Establishment grain banks to meet primary consumption and production approved in the District Level Watershed

needs of households below poverty line Committee (DLWC).

n Exploration of options for provisioning consumption needs through wage n Watershed Development Fund: Motivate
employment the watershed committee to utilise the
Watershed Development Fund (WDF)
In on-going watersheds, the services of the
properly through facilitating ideas, systems
existing watershed committee secretary,
and procedures. Encourage the villages to
depending on their competence, may also be
use the WDF as a loan to maintain structures,
availed for the above purpose. An honorarium
develop common pool resources, and other
may be paid from the revolving fund as agreed
natural resource-based initiatives as agreed
by the community.
collectively by the community.
n Planning for livelihoods: Plans developed
n Common Minimum Programme: Additionally,
by the SHGs (or SHG sub-groups) will be fed
each district will initiate a basi c minimum
into the VOs plans.. The plans should include:
programme to improve the productivity of
agriculture, livestock, non/ off-farm activities.
agriculture, common pool resources, fallow
The community should be encouraged to
lands, livestock, etc. (see Box-6)

Strategic Initiatives for the Promotion of Sustainable

22 Livelihoods in the Watershed Programme
APRLP budget for on-going and completed indicating activities, stakeholders and CPR
watersheds: Each village/habitation has a management.
provision of Rs. 4 lakhs and is eligible to avail a
Each year, the administrative cost will be utilised
maximum of Rs. 1 lakh per year over a four-year
based on funds spent during that year. The funds
period. The amount is apportioned as follows –
will be apportioned in a ratio of 8:2 between District
administration (10%); capacity building (25%);
and State. In on-going watersheds this is in addition
and, livelihood initiatives (65%). Each Village
to funds available under regular watersheds.
Organisation (VO) should submit an action plan

Livelihood Promotion at the Village Level 23

Chapter VI
New Livelihood-based Watersheds

The overall implementation strategy is based on
the operational guidelines issued by CRD.
However, APRLP guidelines supplement
additional aspects related to livelihoods, equity
and gender, and other non-negotiables.
The Probation Phase: New watershed villages
will have to undergo a probation phase for the
first 12 to 18 months. During this period, efforts
will centre on social mobilisation, building village
institutions, capacity building, evolving social
regulations and demonstrating activities in a 50
ha micro-watershed. These activities need not be
sequential but may run simultaneously.
n Ensuring participation (equity and gender)
in planning, implementation and monitoring:
PRA methods are to be used for planning and
further supported by discussions and
consultations, over a 2-3 month period, with
different interest groups/stakeholders.
Community involvement in programme
management should be encouraged through
improving access to information and self-
monitoring (using Participatory Situation
Analysis (PSA)). All primary and secondary
stakeholders in the new livelihood-based
watersheds are to be involved in the planning

Strategic Initiatives for the Promotion of Sustainable

24 Livelihoods in the Watershed Programme
 process, this includes: community
mobilisation, capacity building, livelihood and
watershed plans. A memorandum of
understanding (MOU) has to be developed
between the community and PIA with
reference to collaboration on probation and
post-probation strategies. The phase should
also include net planning and preparing the
community for contributions based on
differential treatment. Plans should be
discussed and approved in the district level
watershed committee. All the action plans are
to be fed into the decision support system.
n Baseline and information systems: a base
line / benchmark survey will need to be carried
out using PRA tools including the
Participatory Situational Analysis. This will
provide the basis and reference point for future
monitoring and evaluation. The community
learns to use the PSA through regular practice
of the tool.
n Capacity Building: the community will need
to undergo an exposure visit (and meet 50%
of the costs) within the first month. This visit
will be to watersheds where examples of best
practice can be clearly seen. Sanghamitrulu
(para workers) for agriculture, livestock, health
and any other village priorities will be identified
and provided with induction courses and
handholding.
n Entry Point Activities: initiate Entry Point
Activities (see Box-7). Voluntary labour, with
SHG coordination, should also be organised
for village sanitation works, protecting
drinking water, building their own office, etc.
Financial resources for EPA are to be released
and managed through the SHG’s revolving
fund.
n Village Institutional Building: involves
consolidation of existing SHGs in the village,
networking SHGs into village organisations,
establishing, managing the revolving fund and
New Livelihood-based Watersheds 25
Box-7:
Possible Entry Point Activities
n Establishing and management of grain banks for the very poor
n Development of CPRs, fallow lands and renting in private lands by SHGs
n Development of fodder, fuel wood, minor forest produce (MFP) and horticulture
plots
n Rehabilitation of defunct kuntas/tanks, to generate wage employment and
create usufruct rights to the poor
n Protection and use of drinking water resources by SHGs
n Asset building that will have specific advantage to the poor
n Improved chullhas (wood burning stoves), biogas units, etc.
n Backyard kitchen gardening and livestock activities
organising very poor households into SHGs
(for details see Chapter V). Equal emphasis
should be given to user group formation.
SHGs are also to be considered as user groups
in the larger process of watershed initiatives.
The Watershed Committee can only be
formed after satisfactory functioning of SHGs
and the VO.
n Development of 50 ha micro watersheds
on ridge areas: to demonstrate micro-
watershed measures in each selected village
Strategic Initiatives for the Promotion of Sustainable
26 Livelihoods in the Watershed Programme
and at the same time develop people’s
capacities. Some of the non-negotiable
activities for the 50 ha ridge areas are –
l Low cost options for soil and moisture
conservation measures
l Equitable distribution through incentives
to small and marginal farmers, and
disincentives to big framers. For example,
farmers in recharge areas are to share
higher costs and only allowed to opt for
low cost structures
l Establishing a Revolving Fund mechanism
(see Chapter V), in relation to resource
development measures on private land with
incentives to small and marginal farmers
l Equal wages and equal employment
opportunities for women during the
implementation of project activities
l Efforts to initiate social regulation and to
conserve 18 months drinking water supply
through proper management of water
resources and water audit
 l Preference to women headed families and
development of fallow lands, management
of watersheds to the benefit of the resource
poor
l Provisions to landless poor families through
revolving fund support to SHGs and
enabling usufruct rights to landless poor
and women on Common Poor Resources
(CPRs)
n Instigate a Common Minimum Programme:
to promote small-scale livelihood activities on
small scale such as backyard poultry, kitchen
gardening, etc. The community should also
demonstrate a commitment to improving
literacy, immunisation, Integrated Child
Development Services (ICDS) activities, water
and sanitation (for further details see Box-6,
Chapter V).
n Women SHGs are to be encouraged to
negotiate usufruct rights and stakes in overall
management of watersheds. The negotiation
process should be initiated at the outset and
incorporated into watershed planning process
in clear terms and through a Memorandum of
Understanding (MOU).
Budget for New Watersheds: The unit cost of
new watersheds is Rs. 30 lakhs. As approved in
the state-level steering committee, Rs. 9 lakhs of
this is to be apportioned exclusively for livelihood
promotion with clear stakes for the very poor and
women; of the Rs. 15 lakhs available for watershed
related activities; funds may also be used for
productivity enhancement activities.
If a village and PIA fails to fulfill minimum requisites
at any particular stage, it will not be eligible to
move to the next step. The release of funds will be
regulated in such a way that the watershed
community complies with the programme
requirements at different stages. This calls for
effective monitoring and an effective decision
support system.
New Livelihood-based Watersheds 27
Chapter VII
Decentralised Capacity Building
A capacity building strategy has been developed
through a consultation process. It recognises the
importance of taking an holistic approach to
capacity building which requires equal emphasis
on eight inter-related components (known as the
eight fold path): sensitisation, hands-on
experience, communication, institution building,
information, training, organisation and networking.
The following sections explain
operationalisation of this strategy.
State-level capacity building will be coordinated
by MANAGE and AMARD. All MDTs, PIA
Coordinators and WDT Social Mobilisers will
undergo two rounds of training at MANAGE on:
APRLP strategies, processes and tools. 1-2
exposure visits will be organised for them to learn
Strategic Initiatives for the Promotion of Sustainable
28 Livelihoods in the Watershed Programme
from models of best practice elsewhere (e.g. BAIF,
WOTR, etc.). Other secondary stakeholders in the
districts (PDs, DCBCs, MDTs) can also be taken
on exposure visits, according to needs, to the
following organisations: WOTR (Maharastra);
BAIF (Karnataka); PIDOW, MYRADA (Karnataka);
and, AKRSP, Sadguru Foundation, Western India
Rainfed Farming Project, SEWA (Gujarat).
the
At district-level, the DCBCs will prepare, through
a process of stakeholder consultation, six-monthly
district capacity building plans. They will also
identify different capacity building needs as the
project progresses and provide (directly or
indirectly) appropriate and timely training
courses to meet these requirements. They will
coordinate training programmes, including

induction and refresher courses, for WDTs. The
organisations and plan for training at district and
sub-district level shall be discussed in DLWC with
PIA coordinator and resource organisations.
Basic T raining Programmes: have been
Training
identified for primary stakeholders as well as
secondary stakeholders working at the field-level
see Box 8). These were decided through a
consultation process across the districts, keeping
in view the objectives of APRLP.
An important component of APRLP’s capacity
building strategy is that it is decentralised down
to community level. The DPAP, therefore, needs to
create a support structure for conducting the
training programmes at district, sub-district and
village levels. This requires the following
measures:
n Each district will identify a pool of resource
agencies and individuals who can support
them in meeting district capacity building
needs.
Box-8:
Capacity Building Capsules
I. APRLP operational guidelines
II. Participatory rural appraisal, micro plans and participatory M & E
III. Social mobilisation and management of the revolving fund
IV. Livelihood planning through the revolving fund
V. CPR Management, usufruct rights, wage employment and use of grains
VI. Net planning, user groups and maintenance of structures
VII. Participatory process monitoring
n Additionally, a number of national and local
NGOs will be identified to provide their
specialist services as required by APRLP and
the on-going programme.
Therefore, the districts can call upon the services
of three categories of resource organisation for
delivering decentralised training inputs:
n National-Level Resource Organisations:
APRLP recognises that there is a need to learn
from the experiences of national-level
organisations. They will bring senior
professionals as managers to operate as PIAs
and as resource agencies for capacity building
Decentralised Capacity Building 29
 in the district. They will create models
in the districts (based on their experiences
from elsewhere) and document their
experiences.
n District-level Resource Organisations: a
number of organisations, with proven
experiences, have been identified within each
district. They will act as resource organisations
for scaling up these practices. WDTs of the 13
pilot project PIAs were trained on agriculture,
livestock and social mobilisation by involving
PEACE, BAIF and AWS respectively.
n Hand-holding Organisations: a number of
organisations have been identified to provide
support to the project implementation
Strategic Initiatives for the Promotion of Sustainable
30 Livelihoods in the Watershed Programme
agencies. These organisations will provide
guidance to PIAs, training and other inputs for
implementing APRLP. Importantly, they will
also prepare PIAs for assessment and fund
release.
Village-level sanghamitrulu and WDT members
will provide necessary training at the village level.
In addition, roving trainers (members and leaders
from high performance CBOs) will have to be
identified by the project directors to provide
assistance to the PIAs, for training and
communication at village-level. Trainers at all
levels will be expected to first undergo a course
on Training of Trainers (TOTs) to further cascade
capacity building efforts.
List of Acronyms
AMARD A Madava Reddy Academy of Rural Development
APMAS Andhra Pradesh Mahila Abyudhya Sangam
APSRAC Andhra Pradesh State Remote Sensing Application Centre
BAIF Bharatiya Agro Industries Foundation
BASIX Bharatiya Samrudhi Finance Limited
CARE Co-operative for Assistance and Relief Everywhere
CBO Community Based Organisations
CDSA Centre for Developmental Studies and Activities
CPR Common Pool Resources
CRD Commissioner for Rural Development
DCBC District Capacity Building Centre
DFID Department for International Development
DLWC District Level Watershed Committee
DPAP Drought Prone Area Programme
DSS Decision Support System
GIS Geographical Information System
GoAP Government of Andhra Pradesh
ICDS Integrated Child Development Services
ICRISAT International Crops Research Institute in Semi-Arid Tropics
MANAGE National Institute for Agricultural & Extension Management

List of Acronyms 31
MART Marketing and Research Team
MDT Multi-Disciplinary Team
MFP Minor Forest Produce
MOU Memorandum of Understanding
NGO Non Government Organisation
NIRD National Institute for Rural Development
NRM National Resource Management
NRSA National Remote Sensing Agency
PD Project Director
PIA Project Implementing Agency
PMIAS Participatory Monitoring and Impact Assessment Systems
PMU Programme Management Unit
PRA Participatory Rural Appraisal
PSA Participatory Situation Analysis
PSU Programme Support Unit
RF Revolving Fund
SHG Self Help Group
VO Village Organisation
WASSAN Watershed Support Services Network
WDF Watershed Development Fund
WDT Watershed Development Team
WOTR Watershed Organisation Trust

Strategic Initiatives for the Promotion of Sustainable

32 Livelihoods in the Watershed Programme
 Andhra Pradesh Rural Livelihoods Programme
(Government of Andhra Pradesh)
A. Madhava Reddy Academy of Rural Development (Formerly APARD)
Rajendranagar, Hyderabad - 500 030. India.
Telephone: +91-40-2400 1953, 2400 1954, 2550 2896 Telefax: +91-40-2401 8773
E-mail: psu@aprlp.org: aprlp@in-biz.net
www.aplivelihoods.org