About SGSY - Swarnjayanti Gram Swarozgar Yojana

This has been achieved by building upon the potential of the rural poor through strategic approaches of extension,training and operational implementation.The more emphasis has been laid on into the group approach and cluster development activities.the required funds were released directly to District rural development agency(DRDA).

The released funds were earmarked for training,infrastructure development,revolving fund assistance to self help group and subsidy to various proofed economic activities under the specific programme.

Salient Features

The salient features of the Swarnjayanti Gram Swarozgar Yojana (SGSY) are given below:

  • The Swarnjayanti Gram Swarozgar Yojana aims at establishing a large number of micro enterprises in the rural areas, building upon the potential of the rural poor.
  • The SGSY emphasis on the cluster approach for establishing the micro-enterprises. For this, 4-5 Key Activities have to be identified in each Block. The major share of the SGSY assistance has to be in activity clusters.
  • The SGSY adopts a Project approach for each Key Activity. Project Reports are to be prepared in respect of each of the identified Key Activities. The Banks and other financial institutions have to be closely associated and involved in preparing these Project Reports, so as to avoid delays in sanctioning of loans and to ensure adequacy of financing.
  • The existing infrastructure for the cluster of activities should be reviewed and gaps identified. Critical gaps in investments have to be made up under the SGSY, subject to a ceiling of 20% (25% in the case of North Eastern States) of the total allocation made under the SGSY for each District. This amount is maintained by the DRDAs as 'SGSY - Infrastructure Fund'.
  • In the planning of the Key Activities, care has to be taken to ensure that the maximum numbers of Panchayats are covered without jeopardising the quality of the Programme.
  • The assisted families may be individuals or groups (Self-Help Groups). The SGSY, however, favours the group approach.
  • The Gram Sabha authenticates the list of Below the Poverty Line families identified in the BPL Census. Identification of individual families suitable for each Key Activity is to be made through a participatory process.
  • The group approach involves organization of the poor into Self-Help Groups (SHGs) and their capacity building. The efforts have to be made to involve women members in each SHG. Besides, exclusive women groups are also to be formed. At the level of the Block, at least half of the groups should be exclusively women groups. Group activities are given preference and progressively, majority of the funding should be for Self-Help Groups.
  • The SGSY is a credit-cum-subsidy Programme. however, Credit is the critical component of the SGSY, subsidy being a minor and enabling element and accordingly, the SGSY envisages greater involvement of the Banks. They are to be involved closely and called in the Planning and preparation of Project Reports, identification of activity clusters, infrastructure planning as well as capacity building and choice of activity of the SHGs, selection of individual Swarozgaris, pre-credit activities and postcredit monitoring including loan recovery.
  • The SGSY seeks to promote multiple credit rather than a one-time credit 'injection'. The credit requirements of the Swarozgaris need to be carefully assessed. The Swarozgaris are encouraged to increase there credit intake, over the period of life.
  • The SGSY seeks to lay emphasis on skill development through well-designed training courses. Those, who have been sanctioned loans, are to be assessed and given necessary training. The design, duration of training and the training curriculum is tailored to meet the needs of the identified Key Activities. The DRDAs are allowed to set apart upto 10% of the SGSY allocation on training. This may be maintained as 'SGSY- Training Fund'.
  • The SGSY attempts to ensure upgradation of technology in the identified activity clusters. The technology intervention seeks to add value to the local resources, including processing of the locally available material from natural and other resources for traditional/nontraditional market.
  • The SGSY provides for promotion of marketing of the goods produced by the SGSY Swarozgaris, which involves provision of market intelligence, development of markets and consultancy services, as well as institutional arrangements for marketing of the goods including exports.
  • The SGSY is implemented by the DRDAs through the Panchayat Samitis. The process of planning, implementation and monitoring integrate the Banks and other financial institutions, the Panchayati Raj Institutions (PRIs), Non-Government Organisations (NGOs), as well as Technical Institutions in the District.