Swarnajayanti Gram Swarozgar Yojana (SGSY)

Anti-Poverty and Employment Generation Programs Swarnajayanti Gram Swarozgar Yojana (SGSY) Started on April 1, 1999. It has replaced the, following program. 1. Integrated Rural Development Programme (IRDP) : Started in 1978 1979. 2. Development of Women and Children in Rural Areas (DWCRA) : Started in 1978 1979. 3. Ganga Kalyan Yojana (GKY) : Started in 1997. 4. Million Wells Scheme (MWS) : Started in 1989. 5. Supply of Improved Tool kits to Rural Artisans (SITRA) : Started in 1992. The plan takes into account all the strengths and weaknesses of the earlier self employment programs.It aims at establishing a large number of micro enterprises in the rural areas. Every assisted family will be brought above the poverty line. It is proposed to cover 30% of the rural poor in each block. To target at least 50% Scheduled Castes and Scheduled Tribes, 40% Women and 3% disabled.Shared 75 : 25 by Centre and States.
Tuesday, August 2, 2011 by Pankaj Kumar

1. The Scheme. The Ministry of Rural Development, Govt. of India have launched this scheme with effect from 01.4.1999 by restructuring the following schemes: o Integrated Rural Development Programme (IRDP). o Training of Rural Youth for Self Employment (TRYSEM) o Development of Women & Children in Rural Areas (DWCRA). o Supply of Improved Tool-kits to Rural Artisans (SITRA). o Ganga Kalyan Yojna (GKY). o Million Wells Scheme (MWS). SGSY is holistic scheme covering all aspects of self-emplyoment, such as organisation of the poor into Self Help Groups (SHGs), training, credit, technology, infrastructure and marketing. The scheme is being funded by the Centre & State in the ratio of 75:25 and is being implemented by commercial banks, RRBs and Coop. Banks. Other institutions, viz. DRDA, NGOs, Technical Institutions in the district are involved in the process of planning, implementation and monitoring of the scheme. 2. Objective . The objective of the scheme is to bring the assisted poor families (Swarozgaries) above the poverty line by ensuring appreciable sustained income over period of time. This objective is to be achieved by inter-alia organising the rural poor into SHGs through the process of social mobilization, their training and capacity building and provision of income generating assets. The Sworozgaries either individuals or groups would be selected by three member team consisting of B.D.O., Banker & Sarpanch. SGSY will focus on vulnerable sections of the rural poor. Accordingly, SC/ST will account for at least 50%, Women 40% and Disabled 3%.The District SGSY Committee is empowered to add or delete any activity in the list of selected key activities with due justification. The assistance (Loan-cum-subsidy) may be extended to individuals or SHGs, which are drawn from BPL list for taking up income generation activities. Groups activities will be given preference and progressively majority of the funds will be for SHGs. 3. Revolving Fund . SHGs that are in existence for about six months and have demonstrated the potential of viable groups receive revolving fund from DRDA and banks as cash credit facility. The DRDA may release subsidy which is equal to the group corpus with a minimum of Rs.5,000/- and maximum of Rs.10,000/- linked with bank credit. 4. Lending Norms . The quantum of loan under the scheme would depend on the nature of the project. There is no investment ceiling other than the cost of the project. The loan and subsidy together would be equal to total project cost. 5. Interest Rate. Loan under the scheme will carry interest as per the directives on interest rates issued by RBI from time to time.

Swarnjayanti Gram Swarozgar Yojna (SGSY)

6. The limit for disposal of applications . All loan applications under the scheme shall be disposed of within the prescribed time limit of the 15 days to one month. All loans granted under the scheme are to be treated as Priority Sector Advances. 7. Rejection . If the Branch Manager rejects some applications, the reason for rejection should be clearly recorded on application form and the same should be returned to the Sponsoring Agency. 8. Insurance . Insurance cover is available for assets / live-stock created out of loan. Swarozgaries are also covered under the Groups Insurance for which maximum age limit is 60 years at the time of sanction of loan. 9. Security norms . Individual loans upto Rs.50,000/- and group loans upto Rs.5.00 lac, the assets created out of bank loan would be hypothecated to the bank as primary security. In case, where movable assets are not created as in land based activities such as dug well and minor irrigation etc., mortgage of land may be obtained. Where mortgage of land is not feasible, third party guarantee may be taken. 10. Subsidy . o Individuals . subsidy under the scheme is uniform at 30% of the project cost subject to a maximum of Rs.7,500/-. Subsidy in respect of SC/ST is 50% of project cost subject to a max of Rs.10,000/-. o Groups . The group is entitled for subsidy of 50% of the project cost subject to a per capita subsidy of Rs.10,000/- or Rs.1.25 lac whichever is less. There is no monetary ceiling on subsidy for irrigation projects. Subsidy is back ended. Bank should not change interest on subsidy amount. 11. Repayment . All SGSY loans are to be treated as medium term loans with minimum repayment period of five years. 12. Recovery . Prompt recovery of loan is necessary for success of the programme. 13. Refinance of SGSY loans . Banks are eligible for refinance from NABARD for the loans disbursed under SGSY as per the guidelines. The eligibility of refinance is related to the recovery position of the banks.