Poorest States Inclusive Growth Programme – SIDBI UKAID DFID RFP

Poorest States Inclusive Growth Programme – SIDBI UKAID DFID RFP

Poorest States Inclusive Growth Programme – SIDBI UKAID DFID RFP

Small Industries Development Bank of India (SIDBI) is implementing a project supported by UKAid through Department For International Development (DFID) namely “Poorest States Inclusive Growth Programme (PSIG)”. SIDBI invites 4 separate Request For Proposals (RFPs) for shortlisting of Consultants for carrying out the following activities under PSIG:

RFP 1: For the hiring of Local Project Coordinator (LPC) for coordinating conduct of Finscope Survey in four states in India (Odisha, Uttar Pradesh, Madhya Pradesh, and Bihar).

RFP 2: For hiring of Local Research House(s) (LRH) for conducting the ‘FinScope Survey’ in four states in India (Odisha, Uttar Pradesh, Madhya Pradesh, and Bihar).

RFP 3: For Compilation of Drill-down Case Studies of existing Business Correspondents and Business Correspondent (BC) models in MP.

RFP 4: For Providing Technical Advisory Support to Partners in PSIG Techno-Inclusion Fund.

For more details, interested Consultants may visit the tender page on the website of SIDBI at

http://www.sidbi.in/?q=request-proposals

The RFPs must be submitted as per the scheduled time mentioned in the respective RFP documents.

Last Date of Submission: 15 May 2014

POOREST STATES INCLUSIVE GROWTH (PSIG) PROGRAMME

Overview of PSIG

SIDBI is implementing the PSIG programme funded by the Department for International Development, (DFID), UK. The programme aims to enhance the income and employment opportunities of poor women and men in 8 low-income States by enabling them to participate and benefit from wider economic growth in India. The purpose of the programme is to improve income and reduce vulnerability, of poor people and small producers, by expanding their access to finance and markets.

1. 1 PSIG has two separate, interlinked components

Component 1 – Financial Inclusion and women’s empowerment: The programme (duration of 6 years) shall  improve access for poor men and women to a variety of financial services in the 4 low-income states (Bihar, Orissa, Madhya Pradesh, and Uttar Pradesh ) and will:

a) facilitate financial services institutions, including banks and MFIs, to provide services for poor people in geographical areas to which they would not otherwise go by providing patient capital, guarantees or technical assistance, as appropriate;

b) supplement microfinance programmes with training for women to improve their knowledge and confidence in financial services

c) facilitate studies, set up high-level think tanks and feed into improving the policy environment for microfinance and improving the overall business environment in the Low-Income states; and

d) fund commercially sustainable approaches that demonstrate responsible client practices and complement the Government of India programmes.

Component I would have three outputs as under:

1. I. Policy and institutional environment that encourages the provision of financial services to poor people in a responsible manner facilitated

  • Establish national and State level Think Tanks for Policy Advocacy.
  • Carrying out Pilots on Business Correspondents, Branchless banking, Credit bureau, etc.
  • Preparation of Vision Documents

II. Institutions providing diverse financial services promoted

  • Promotion of   institutions providing a diverse range of financial services that meet client requirements, such as savings, credit, insurance, and transfer services;

SHG Channel

1. Branchless banking

Support study of leading BC models and development of a demonstrable viable BC model.

2. Rural finance Institutions

Support provision of escort services by NGOs, for clients of RRBs and DCCBs in poorer districts, to provide sustainable financial services to SHG members.

Support capacity building and sensitization of bank staff at the branch level.

3. Community-based organizations

Provide support for demonstration of scalable model of SHG–federation/ resource center through pioneer NGOs, for building capacity of local NGO/SHPIs.

Capacity building of training institutions engaged in capacity building of SHPIs/SHGs.

MFI Channel

1. Capacity Building Support for the development and promotion of local MFIs to enhance their outreach and geographical spread.

2. Capacity building Support to large, multi-State MFIs for expanding operations in the backward / poorest areas.

3. Mobilizing loan funds and investments for MFIs to scale up outreach of financial services to the poor.

4. Loan funds to be leveraged from other Banks / FIs.

5. Equity / Quasi-equity support to be leveraged through SIDBI, NABARD, and other sources.

6. Risk fund support/guarantee fund support to Banks / MFIs /  two-tier institutions in respect of their incremental lending to poor clients

7. Suitable CB and TA support to be considered for banks / FIs.

8. Signing up of responsible funding code of conduct to be included as covenants for granting support to MFI’s

9. Identify areas with low MF penetration and identify institutions to improve their outreach.

10. Enhancing outreach in poorest / backward regions – Provide support to an Implementing Agency for identification of suitable economic opportunities, skill development, Credit- linking,  with due hand-holding and escort services to the poor.

a. Provide incentives for last-mile connectivity.

b. Support to bridge the Viability gap and provision of risk fund.

c. Product Development

  • Support to Technical Service Providers (TSPs) to address gaps in savings, insurance, and other vulnerability reducing products,  gender-specific products, micro pension,  remittances, livelihood/family income based products,  emergency needs, green products, and other customer-oriented products.
  • Support for launch / upscaling of new technology-led models.

III. Women’s capacities to tackle financial and gender issues enhanced

  • Gender and social inclusion module (gender issues within the household and in the community, social exclusion, etc.)
  • Social development and Legal rights module (health, education and legal entitlements)
  • Facilitating monthly discussions on social and gender issues with all clients

Component 2: Impact Investments: The programme funds will be spent on promoting businesses that increase the income of, or services to, the poor in 8 low-income Indian states (Bihar, Orissa, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Jharkhand, Rajasthan, and West Bengal). The programme funds will provide capital or guarantees to businesses that have the potential to benefit poor people, but which do not attract private capital even though they are judged to be financially viable. The investments will be judged on social and environmental performance in addition to financial risk and return and will be in the form of debt, equity, venture capital, and guarantees.

1. 2 PSIG is expected to leverage private sector financial and technical resources to reach up to 12 million direct and indirect beneficiaries. The programme’s investments in enterprises in the 8 poorest states will result in better opportunities for the poor to benefit as producers, consumers, or skill providers.

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