Community/Tribal Development
Organizational and Technical Support for VSS
NGOs will be hired for services on a contract basis for a period of about three years during the initial stage of the Project to facilitate overall process of capacity building of VSSs, entry point activities (EPA), income generating activities (IGA) and livelihood improvement.
The selection of NGO will be completed through an appropriate local bidding process by DMU, which will be assisted by the Project consultants. A group of local NGOs may form a consortium headed by the large, financially capable NGO. A set of indicative NGO selection criteria is:
 i) history
 ii) financial capability
 iii) physical assets
 iv) human resources/networks
 v) accomplishments
 vi) local presence
 vii) rapport to local banks
iviii) reputation/references of donors/funding organizations.

Over the course of three-year services of NGO, social mobilisation and livelihood support skills of FMU staff, village forest workers (VFWs) in particular, will be enhanced through supervising/monitoring the services of NGO and work together in some activities. By the time of NGO withdrawal the FMU will be fully prepared to pursue required services for the VSSs concerned.
The NGOs will be requested to assign at least three personnel, including one Team Leader (micro enterprise specialist) and two Development Agents (one micro finance officer and one community/SHG development officer).
The NGO will help each of the VSSs concerned to select an animator, possibly a VSS leader or an educated youth to work as an extension worker after receiving on-the-job training by the NGO. The animators will provide necessary assistance to their respective VSSs and SHGs in organizing meetings, coordinating with FMU and other agencies, record keeping, maintenance of accounts and other VSS/SHG management matters and will be paid a fixed monthly honorarium for his/her services.

Entry Point Activities (EPA)
EPAs are part of the community mobilisation process taken up in the respective villages at the initial stage of Project implementation. There will be a time lag between first contact with the community and actual works/investment following the sanction of the micro plan. In order to generate interest among community members and to provide them certain elementary benefits, and even to gain the confidence of the community, EPA will be undertaken.
Proper selection and effective implementation of the EPA is important to lay a firm foundation for future interaction with the community. The process of EPA selection will be facilitated by the NGO stated above. The FMU concerned will also be closely associated in the process and supervise the NGO organising community meetings for selection and planning of EPA. EPA will be selected in a well-facilitated participatory manner. Interest in the Project generated through the process of selection and implementation of the EPA will be effectively harnessed, and sustained through processes that are woven into community’s interest with other development activities.

Income Generating Activities (IGA)
To mature a micro enterprise for a community institution, a package of services including support in the form of information, training, capital, and facilitation of processes will be provided to SHG jointly by FMU, NGO and consultants. These will be engaged specifically to conduct market research.
a) Prior to beginning IGAs, a market research will be undertaken by a group of specialists from specialized market research organization(s) to look at a macro level market environment and state level market scenario, as well as field level situations in close collaboration with the NGOs assigned for the community. A final shortlist of potential options of Project areas based IGAs for forest dependent and other poor communities will be prepared.
b) IGAs will be group-based activities. NGO will identify existing SHGs in the VSSs involved in the Project or assist VSS members to form new SHGs as needed. On an average, for one VSS will have two SHGs each comprising 10 to 20 VSS members, mostly women. The SHGs are expected to start generating income through NTFP trading activities and others, function as a community-based micro enterprise, and be self-reliant financially and organizationally at the end.
The SHGs will start with “rotational savings and credit activities (ROSCA)”, which will be facilitated by the NGO and its animator. Capacity building of the SHGs for group and funds management (including record keeping) will be undertaken by the NGO on-the-job. When the SHG successfully continues ROSCA for six months, it is regarded as a group that has evolved , stabilized with a certain level of solidarity, and identified common interest. This will enable them to receive further assistance.
c) Using the result of market research prepared by the specialists, the NGO will assist the SHG in preparing plans for a micro enterprise development based upon i) review of results of market research and interpretation in the local context; ii) identification of possible IGAs; iii) study of technical and financial feasibility of the IGA as an enterprise at the scale planned, and iv) preparation of a business plan. Subsequently, identified individuals from the SHGs will be provided with training specific to the micro enterprise to be established.

The NGO will facilitate organising the training, with assistance from other agencies active in the area of promotion of micro-enterprises (e.g. District Industries Center, Khadi and Village Industries Corporation, District Supply and Marketing Society, Orissa Khadi and Village Industries Board, Orissa Mahila Vikas Sambaya Nigam or the Orissa Women’s Development Corporation).
Based on the IGA plan of each SHG, the Project will provide the SHGs with grant aid assistance as a micro enterprise establishment fund to meet costs of product development, purchase of equipment, and other enterprise establishment costs. Working capital (running cost) required will be met through internal savings among the SHG members and micro credit from financial institutions that provide micro finance services (such as NABARD, rural banks, cooperatives, commercial banks and NGO). The NGO together with FMU are expected to approach to the local banks and microfinance institutions and promote the business plan of the SHG. The NGO is also expected to assist the application for loans from the financial institutions.
For a larger scale enterprise, the SHGs may federate and pool their resources, as per the demands of the situation.
d) Market linkage support: Demand assessment, price fixation, product promotion, and marketing and sales will be undertaken by a specialized agency which conducted market research at the state and DMU levels. The Project will assist the SHGs in entrepreneurship development with an emphasis on building marketing skills. Selected individuals from the SHGs will be provided with necessary information and skills for promotion of the products and services specific to the area. The SHGs will be provided with assistance by NGO for registration of the enterprise and obtaining necessary government clearances.
The Project will assist in gaining SHG’s economies of scale through wide area coverage.

 Improvement of General Services
aiming at i) the fulfillment of basic human needs to make the local people capable for participating in OFSDP; ii) the provision of incentives to local people to participate in OFSDP; and iii) the information dissemination on OFSDP environmental protection. These will be will be carried out by four major stakeholders: i) OFD; ii) NGO; iii) external agencies; and iv) local people; and will provide additional coverage in respect of services like medical & health camps, prevention of water born diseases, reproductive and child health, non-formal education, promotion of fuel-efficient devises

NGO will be contracted and engaged in above activities for three years from the second year of the Project, and FMU will take over all the responsibilities of the NGO after its withdrawal. FMU should be able to gain skills and knowledge while supervising NGO’s work.