Thursday, May 26, 2011

SWARNJAYANTI GRAM SWAROZGAR YOJANA

The Swarnjayanti Gram Swarojgar Yojana (SGSY) is a major self employment scheme launched in April, 1999 after restructuring and combining the IRDP with allied programmes i.e. TRYSEM, DWCRA, SITRA, GKY, MWS. It has been designed as a holistic self employment scheme aimed at providing sustainable income to rural BPL families through income generating assets / economic activities so as to bring them out of the poverty line. It is a process oriented scheme involving processes like organization of the rural poor (BPL) into Self-Help Groups (SHGs) through social mobilization, capacity building & training, provision of revolving fund, making available credit and subsidy, technology, infrastructure & marketing. Each process has a bearing on the successive process. The SGSY is trying to achieve social mobilization through formation of member owned, member controlled and member managed institutions of the poor in the form of Self Help Groups (SHGs).
Salient Features
SGSY aims at bringing the assisted poor families (swarozgaries) above poverty line by providing them income generating – assets through a mix of bank credit and government subsidy.

The objective is achieved through organizing rural poor into Self - Help Groups (SHGs) at the grassroots level through the process of social mobilization. The process of social mobilization is followed by capacity building and training of rural poor.

The scheme is being implemented in the States through the District Rural Development Agencies (DRDAs) and funds are transferred by Ministry of Rural Development directly to the DRDAs with active involvement of Panchayati Raj Institutions(PRIs).

 Funds are allocated to the States on the basis of inter se poverty ratios fixed by the Planning Commission and further to the districts on the basis of their Below Poverty Line (BPL) population.

Selection key economic activities are based on available natural resources, occupational skills of the people and available markets. Cluster approach for taking up economic activities is emphasized.

 Emphasis is on provision of credit to the rural poor. Subsidy is just an enabling element and is linked to credit from banks.

Thrust is on empowerment of the vulnerable sections of the society, i.e. 50% for SC/STs, 40% for women, 15% for minorities and 3% for disabled persons.

Funds shared between Centre and State, except for north eastern states, on 75:25 basis. The ratio of sharing of funds between Centre and north eastern states including Sikkim is 90:10.

 NGOs can be involved for assisting in the formation of SHGs and their handholding for which the NGOs can be paid a remuneration of up to Rs. 10,000 per SHG in separate instalments.

The SHGs are taken through a grading process whereby they are graded as Grade I and Grade II based on certain criteria.

Financial assistance is provided to both SHGs and individuals under the scheme though more focus is on the groups than the individuals.

The beneficiaries are provided training and capacity building inputs to familiarize them with the basics of group dynamics and skill training is provided to make their micro enterprises sustainable and more productive.

Revolving Fund assistance is provided to the SHGs for augmenting their group corpus and the banks are expected to give a cash credit limit to the SHGs equal to four times their group corpus.

Subsidy under the SGSY is given at the uniform rate of at 30% of the project cost, subject to a maximum of Rs.7500. In respect of SC/STs and disabled however, these will be 50% and Rs.10,000/ respectively. For Groups of Swarozgaris (SHGs), the subsidy would be at 50% of the cost of the scheme or per capita subsidy of Rs.10,000/- or Rs.1.25 lakh, whichever is less. There will be no monetary limit on subsidy for irrigation projects. Subsidy is back ended. The SGSY seeks to promote multiple credits rather than a one – time credit injection.

20 percent of the allocation at the district level has been earmarked for meeting expenditure critical gaps in infrastructure creation required supporting the livelihood activities of the rural poor.

 Provision is also made for taking care of all aspects of marketing including marketing intelligence, backward and forward linkages and creation of marketing infrastructure.

15% outlay under SGSY is set apart for Special Projects to field test and validate alternative strategies for livelihood opportunities and enhancement of livelihood support for rural poor.

Each Special Project is expected to execute a time-bound programme for bringing a specific number of BPL families above the poverty line through a projectised approach with the funding requirement to be shared between centre and state, except for north eastern states, in the ratio of 75:25. The ratio of sharing of funds between Centre and north eastern states including Sikkim is 90:10.

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