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About NABARD I Role and Functions I I I CIRCULARS I Model Bankable Projects

Credit Functions | Developmental and Promotional Functions | Supervisory Functions

Non Farm Sector Schemes

District Rural Industries Project (DRIP)

NABARD on a pilot basis had launched an integrated area-based credit

intensification programme in collaboration with Government, Banks and other Glimpses of
development agencies with focus on district known as District Rural Industries Some New
Project (DRIP) during 1993-94 with a view to evolving a role model for rural
industrialisation. Innovative
Non-Farm Sector Projects
Objective Sanctioned
Creation of significant number of sustainable employment opportunities in rural
Rural Innovation areas through enhanced credit flow to RNFS with complementary financial and non-
Fund FAQS financial promotional support Rural
Coverage Innovation
Refinance Schemes On a pilot basis the project was launched during 1993-94 in 5 select districts in the Fund (RIF)
country viz. Ganjam, (subsequently bifurcated into Ganjam and Gajapati districts in Application
Orissa), Gwalior (Madhya Pradesh), Kurnool (Andhra Pradesh), Sabarkantha
Self Employment (Gujarat) and Sawai Madhopur (Rajasthan). Encouraged by the success achieved Form
Scheme for Ex in the pilot districts and keeping in view the overwhelming support received from all
the Project Partners in development of RNFS in the DRIP districts, NABARD had
Servicemen since extended the project in phases, thus covering 106 districts. National
List of DRIP districts Innovation
Rural Housing Drip Philosophy Fund
• Focussed Attention
Swarojgar Credit
• Systematic Planning National
Scheme
Institute of
• Participatory Process Small
CLCSS
• Coordinated efforts Industry
• Credit plus Approach Extension
Promotional Training
Programmes DRIP - Main Features
Craft Mart • A participatory programme of State Govt., Banks, NGOs and National
Developmental agencies for credit intensification towards Institute of
Non-Farm News development of RNFS. Rural
Letters Developmen
• Facilitates convergence of the experience, energy and
t
resources of all project partners to harness the potential for
Contact Us rural development.
Glimpses of Some Ministry of
• Realistic assessment of potential for growth of RNFS and Rural
New Innovative gearing up the entire district machinery committed to rural
Projects Developmen
development.
Sanctioned t
• Facilitates adequate, timely, qualitative and need- based credit
support through banking channel for setting up of new units Ministry of
Gist of Innovative
as well as for expansion/ modernisation of existing units. Small Scale
Projects
Sanctioned at • Envisages promotional, infrastructural and linkage support Industries
from various project partners.
Head Office • DRIP is not a target-oriented programme.
• Does not envisage provision of any new subsidies other than
the normal facilities (including existing subsidies) available
for setting up of RNFS units in the district.
• A flexible programme open to adoption of new ideas and
innovations
Important Components/ Strategies
• Conduct of Detailed Potential Survey of the District.
• Strategy meets at District & State level.
• Sensitisation of the Functionaries of Project Partners - Govt./
Banks/ NGOs/ VAs/ DAs.
• Goal Oriented Project Planning (GOPP) Workshop at the
District Level.
• Training of the officials of Primary Lending Institutions
(PLIs).
• Preparation of DRIP Action Plan.
• Dovetailing of DRIP Action Plan with Service Area Plans
(SAPs) of banks.
• Adoption of Cluster Approach.
• Awareness creation/ skill upgradation amongst Entrepreneurs.
• Technology Upgradation/ Transfer.
• Focus on implementation of Credit-linked Promotional
Programmes through NGOs/VAs/ DAs.
• Encouraging Credit Delivery Innovations.
• Monitoring the progress closely through Project Coordination
& Guidance Committees (PCGCs) at the district and state
 level.
Role Of Project Partners
Government and other Developmental Agencies
• Developing a suitable Time-bound Action Plan
commensurate with DRIP Action Plan.
• Identifying Nodal Officers in the concerned Departments/
Agencies for assuming responsibility for Coordinating the
implementation of DRIP.
• Associating with Other Partner Agencies for bringing synergy
in identification of entrepreneurs, sponsoring of cases on
merit to the banks, preparing project profiles, providing
technical guidance, the required infrastructure and linkages,
positioning of extension staff, conducting training for Skill
Upgradation, etc.
• Developing a built-in monitoring system to ensure
achievement of project objectives
Banks
• Integrating DRIP Action Plan into Service Area Plans.
• Identifying Potential Entrepreneurs/ Enterprises.
• Adopting Cluster Approach in lending.
• Ensuring Qualitative Lending with close Supervision.
• Associating with the Block/ Cluster/ Village level Awareness
Meetings.
• Sponsoring Potential Entrepreneurs to participate in Rural
Entrepreneurship Development Programmes (REDPs).
• Deputing field level functionaries to various Training
programmes, Meets/ Workshops.
• Providing necessary credit to the entrepreneurs covered under
various promotional schemes.
• Improving the access of credit to Women.
• Promoting and linking of SHGs.
• Maintaining proper database.
• Monitoring the Progress of DRIP action plan at Block/
District/ State level fora.
• Opening of Specialised Branches for financing Small Scale
Industries and Other rural industries.
NGOs/ VAs
• Associating NGO/VAs as Co-partners in achieving the goals
set out under DRIP.
• Taking up implementation of Credit-related Promotional
programmes viz., Training- cum- Production Centres (TPCs),
 Conduct of Rural Entrepreneurship Development
Programmes (REDPs), Setting up of Mother Units, Common
Service Centres, Artisan Guilds, Assistance to Rural Women
in Non- Farm Development (ARWIND), Marketing/
Technology Development interventions, Rural Development
Communications, Linking of Self Help Groups, etc.
• Providing Escort Services to the potential entrepreneurs
trained under REDPs.
• Playing Catalytic role in boosting RNFS and propagating
DRIP message.
NABARD
As an initiator, NABARD plays a lead role in implementation,
• Conduct of Detailed Potential Survey of the district to map
the RNFS potentials.
• Extending 100% refinance to banks for their lending under
ARF (NFS).
• Extension of financial assistance in the form of grants to
select agencies for promotional programmes.
• Direct association/ involvement of DDM(DD) and RO in
various forums/ promotional interventions - Organisation of
special programmes/ meets.
• District Development Manager of NABARD posted at DRIP
HQ plays a keyrole in coordinating the development efforts
under DRIP.
• Use of consultants/ consultancy agencies for specific
activities/ studies.
• An extensive and intensive strategy for training/ skill
upgradation/ sensitisation of PLIs, NGOs and Govt.
functionaries.
• Guiding and reviewing the progress of DRIP through Project
Coordination and Guidance Committees set up at District/
State level.
• Disseminating the lessons learnt under DRIP to all the Project
Partners.
• Sponsoring Monitoring and Evaluation studies
Present Position :
With the successful implementation, the programme have been phased out in 64
districts (covered under Phase-I, II, III, IV & V) during the period 2007-08 & 2008-
09. DRIP in remaining 36 districts will be phased out by the year 2010-11.

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