The National Rural Livelihood Mission (NRLM) was established in June 2010 by the Government of India, to be implemented in all States of the country to establish efficient and sustainable institutions of the rural poor that enable them to increase household income through livelihood enhancements and improved access to financial and selected public services. NRLM incorporates lessons from previous State project experiences and builds upon them through a comprehensive livelihoods approach encompassing four interrelated tasks: (a) mobilizing all rural, poor households into effective self help groups (SHGs) and SHG federations; (b) enhancing access to credit and other financial, technical, and marketing services; (c) building capacities and skills for gainful and sustainable livelihoods; and (d) improving the delivery of social and economic support services to poor. Through NRLM, a combination of financial resources and technical assistance will be provided to the States to achieve these objectives.

Under NRLM, Government of India is availing a credit from the International Development Association (IDA) for implementing the National Rural Livelihood Project (NRLP) to broadly support the following components: (i) Institution and human capacity development at the National, State, District and Sub-District level such that support institutional structures are created, (ii) State Livelihood Support towards establishment of institutional platforms of the rural poor for improved access to financial, livelihood and public services, (iii) Innovation and Partnership to identify and partner innovative ideas which address the livelihood needs of the rural poor and help pilot or scale them, (iv) Project management and monitoring and learning systems.

The procurement of goods, civil works, non-consulting services and services will be integral to the implementation of NRLM at National, State, District and Sub-District levels. This manual sets forth the NRLM procurement policies and procedures for the guidance of all personnel involved with procurement responsibilities, with the aim of ensuring that programme resources are properly managed and safeguarded.

The Manual aims to achieve economy, efficiency and transparency in the implementation of the project, including the procurement of the goods, works and services involved; and ensuring that all eligible bidders are provided the same information and equal opportunity to compete in provision of same. It will be mandatory for all participating State and District societies and other Government and non Government agencies to adhere to the guidelines and procedures outlined in this Manual for carrying out procurement under NRLM. All State Implementing Societies will formally resolve to follow this Manual with release of NRLM funding being contingent on this pre-condition.

Under NRLM, federated structures of Self Help Groups (SHGs) will be formed at different levels (village, block, district) for undertaking value chain linked activities in dairy, agri-business and similar enterprises for better production, storage, marketing, etc. of the produce of the members of the SHGs. These groups would undertake procurement of goods, works and services in line with the selected value added activity.

This manual details the principles, processes and methods for community based procurement that project functionaries and community groups shall follow for procurement of goods, works and services.

This manual is developed based on procurement framework and methodology suggested by the Financial Management Rules, GoI (2005); Financial Management and Procurement Manual of Sarva Shiksha Abhiyaan, MHRD, GoI; Stores Purchase Rules methods in various states; World Bank ?Guidance Note For Management Of Procurement Responsibilities In Community-Driven Development Projects?, December 2009 as well as World Bank guidelines for procurement of goods, works and services. This Procurement manual has been reviewed and is found in accordance with World Bank‘s ?Guidelines: Procurement Under IBRD Loans and IDA Credits" dated January 2011 (Procurement Guidelines), and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated January 2011 (Consultancy Guidelines).

This manual considers the specific procurement management requirements of the International Development Association (IDA) as detailed in the Procurement Guidelines and Consultancy Guidelines referred above for implementing the NRLP. NRLP will be implemented intensively in selected 400 blocks of selected states of the country. In the event of any conflict in interpretation of various provisions for procurement in case of items procured using the proceeds of the credit from the IDA, interpretations of provisions of IDA Procurement and Consultancy Guidelines will prevail.

The guidelines and procedures are subject to modification by NRLM in case of any peculiar circumstances and where situation so warrants.

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