Village Development Fund

The Project will encourage the villagers to set up a VDF in each village. The VDF is a common fund of a village, which is maintained by its residents who contribute a portion of the income generated through project activities on a voluntary basis. The fund will be used for community purposes. The aim of setting up the VDF is to enable village residents to continue with the activities they have initiated and maintain the assets created through the support of the Project.

Although the main focus will be the maintenance of these assets, it can also be utilized for other purposes provided that it benefits the entire community and that it is based on a consensus among the members. The source of the VDF may include the money generated during the project period such as profits made through sales of forest products, interest on loans paid by SHGs, user fees for the common assets created under the Project by the EPA, user fees and fines collected in the JFMC, EDC, and PSS areas, and interest on bank account deposits of JFMCs, EDCs, and PSS?s.