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  1. 1. SWARNAJAYANTI GRAM SWAROJGAR YOJANAPresented By IRMA students batch of 2013: Ankit Sharma (32005) Arpit Bansal (32009) Tanu Shree Shekhawat (32044) Tijil Thomas (32045)
  2. 2. INTRODUCTION (1/2) Programme name: Swarnajayanti Gram Swarojgar Yojana (SGSY) Launched by: Government of India Date of launch: April 1, 1999. Objective:  Broader Goal: Anti poverty programme (APP) and to generate self employment opportunities (Empowerment)  Programme Specific: Self employment, Asset creation, Income generation and create access Strategy: To bring the assisted poor families (Swarozgaris) above the poverty Line by providing them income-generating assets through a mix of Bank Credit and Governmental Subsidy. Integrated programme of self employment through establishment of self help groups or cluster
  3. 3. INTRODUCTION (2/2) There are two key aspects of the SGSY - Activity Clusters and the Group Approach. Launched by Restructuring:  IRDP ( Integrated Rural DevelopmentProgramme)  TRYSEM ( Training of Rural Youth for SelfEmployment)  DWCRA ( Development of Women and Children inRural Areas)  SITRA ( Supply of Improved Tool Kits to RuralArtisans)  GKY ( Ganga Kalyan Yojana )
  4. 4. IRDP vs. SGSY (1/3)S.No. IRDP SGSY 1 „Beneficiaries‟: sense of benefit/grant to be „Swarozgari‟: sense of self enjoyed – respect and entrepreneurship 2 financing „poorest of the poor.‟ Financing those who are enterprising and are on threshold of crossing the poverty line. 3 Agricultural laborers, marginal & small All persons below poverty farmers and rural artisans. line (BPL) are in its ambience. 4 „Individual approach‟ for extending the credit. Group approach‟ for extending the credit ( 3:1 ratio) 5 Anyone can avail the credit „Training and capacity building only after which credit can be availed
  5. 5. IRDP vs. SGSY (2/3)S.No. IRDP SGSY 6 The selection of activity to be Financing can be done for only four financed was left to the choice of to the borrower. five „Key Activities‟ selected by Block level SGSY committee. 7 No emphasis on project profiles There has to be „project profile‟ for each activity to be financed. 8 The share of Centre and States The share of Center and States was in ratio of 50:50. modified to 75:25 9 No incentives to beneficiary for No further finance for less than 80% prompt repayment of bank credit. recovery and rebate of 0.5% cum Only single time credit assistance monitoring fee to all those only. Swarozgaris who repay their dues promptly. 10 Infrastructure and marketing Great emphasis on the linkages were overlooked in IRDP. infrastructure development in rural areas. Special fund by the name of „Infrastructure Fund‟ has been created.
  6. 6. IRDP vs. SGSY (3/3)S.No. IRDP SGSY 12 Subsidy pattern according to the Subsidy pattern according to certain level of occupation and land status. percentage of project cost. Subsidy Also The ceiling on subsidy was independent of area of dependent upon area of implementation. implementation 13 No specific time frame SGSY targets at elevating 30 per cent of BPL families in five years. 14 No yardstick for incremental income Yojna stipulates minimum income of generated under IRDP was defined. Rs.2000 net of repayment for each Swarozgari.
  7. 7. TIME FRAME The SGSY is a process oriented scheme and SHG passes through different stages Time frame at each stage differs from district to district and state to sate depending upon spacial distribution and capacity of facilitator.
  8. 8. IMPLEMENTING AGENCIES The Swarnajayanti Gram Swarozgar Yojana (SGSY)is being implemented by the District RuralDevelopment Agencies (DRDAs), with the activeinvolvement of Panchayati Raj Institutions(PRIs), the Banks, the line departments and Non-Government Organisations (NGOs)
  9. 9. FUNDING Centrally sponsored scheme and financing shared centre and state in the ratio 75:25 Of the total assistance:  50% for SC and ST  40% for women  3% for disabled person For special category states like north eastern states, centre shares 90% of the fund. Central allocation will be distributed as per the degree of poverty in the state. Devolution of funds to the districts will be indicated by the States and approved by the Government of India Government of India will release the funds directly to the DRDAs. DRDA receives funds directly from the state and conducts training, infrastructure and economic activities for a maximum of 10% of the fund. Devolution to the Blocks may be decided by the Governing Body of the DRDA based on level of poverty and other local factors.
  10. 10. FUNDING – RELEASE OF FUNDS The Centre releases funds in two installments Release of first installment without condition if second installment in the previous year was released without any condition else formal request is required The second installment of Central funds is released on the request of the DRDAs
  11. 11. ROLE OF PRIs, NGOs etc. Identification of the poor Capacity building & training Infrastructural Support Linkages of SHGs with Banks Marketing support Maintenance of record of SHG Monitoring and Social auditing Dissemination of best practices Engaging youths
  12. 12. FLEXIBLE DESIGN Demand driven strategy  Dedicated support organization for NRLM  Universal Social mobilization of the rural poor  Building institutional platforms for the poor  Training and capacity building  Developing pro-poor financial sector  Access to services and entitlements  Linking with markets  Risk Mitigation  Convergence  Gender empowerment  Monitoring and transparency
  13. 13. SALIENT FEATURES The SGSY 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. The SGSY adopts a Project approach for each Key Activity. The existing infrastructure for the cluster of activities should be reviewed and gaps identified Aims to cover maximum number of panchayats The assisted families may be individuals or groups (Self-Help Groups) The Gram Sabha authenticates the list of Below the Poverty Line families identified in the BPL Census.
  14. 14. SALIENT FEATURES The group approach involves organization of the poor into Self-Help Groups (SHGs) and their capacity building. A credit-cum-subsidy Programme. Promotes multiple credit rather than a one-time credit injection. lays emphasis on skill development through well- designed training courses. Attempts to ensure up gradation of technology in the identified activity clusters. Provides information for promotion of marketing of the goods produced by the SGSY Swarozgaris. The SGSY is implemented by the DRDAs through the Panchayat Samitis.
  15. 15. PROCESS OF IMPLEMENTATION Organizing the rural poor into SHGs Inclusion of the poorest Assistance to take up economic activities Activity clusters Training and capacity building Provision of income generation assets Infrastructure support and technology Credit and marketing services
  16. 16. ORGANIZING AND SELECTINGPEOPLE- FOCUS ON THEPOOREST Mobilization of Swarozgaris-individuals or groups Subscribes to BPL list (BPL Census) approved by Gram Sabha BDO, Banker, Sarpanch visit to hamletsPROBLEMS Inclusion of non-poor Exclusion of the poor No foolproof method of selection
  17. 17. GRADING OF SHGs SHGs under SGSY are graded on the basis of performance Until the SHG has completed six months of existence it is categorized as Grade I At the end of the formation stage, which may be about six months or more, it is necessary to subject each Self Help Group to a test to assess whether it has evolved into a good group and is ready to go into the next stage of evolution i.e. Grade II Grading of the Self Help Groups could be done by the same agency that is involved in the promotion and development of SHGs or any
  18. 18. FORMATION AND PROMOTION OF GROUPS WITH ASSISTANCE OF NGOs Emphasis on group approach rather than financing individuals Help of NGOs, CBOs and individuals in group formation (better equipped than govt.) Group formation- time and nurturing from a good facilitator (10-20 individuals in an SHG; one person part of only one group) In the case of minor irrigation schemes and in the case of disabled persons, this number may be a minimum of five (5) Group approach- clarity regarding the roles and design to the members Social mobilization enables the poor build their own organizations {Self-Help-Groups (SHGs)} in which, they
  19. 19. PROBLEMS IN FORMATION OF GROUPS Selection of NGOs not transparent NGOs with limited experience in implementation Problem of coordination between NGOs and Govt. Some places of implementation- no NGOs Formation of SHGs- a time taking process Directions from state level to Village Level Workers(VLW) and district and block administrators to form SHGs Target-oriented approach not participatory process
  20. 20. FUNCTIONING OF GROUPS Once formed, groups do internal lending Trained by DRDA along with banks to develop strengths and saving DRDA access the group and grade Groups open savings account Accessing credit, subsidy and loan from banks SHG meetings and regular savings Maintenance of books of accountsPROBLEMS: Internal loaning/lending- “A Fake Exercise” Groups lacked cohesiveness Slack in SHG meetings and irregular savings Fake records
  21. 21. ASSISTANCE AND ACTIVITYCLUSTERS Block level selection of 8-10 activities Choice of activity- availability of raw materials, skills and aptitude of local people, traditional knowledge Selection of 4-5 activities based on preference Participants included in decision making Cluster approach (Consultative and Participatory process)PROBLEMS Non-participatory and Top-down approach For providing assistance, timely payment to NGOs not provided Lack of coordination between Govt., NGOs and Banks Lack of timely loans from banks to SHGs
  22. 22. TRAINING AND SUPPORT Training provided in the selected activities by DRDA Duration of training Training provided to fellow “Swarozgaris” Banks to provide “multiple doses of credit” rather than “one time credit injection” Support from PRI and Govt. departments regarding use of funds Adequate supply of inputs (backward linkage) Marketing linkage (forward linkage)
  23. 23. PROBLEMS IN STARTINGMICROENTERPRISE AND USINGTRAINING Supply driven not Demand driven Training provided in activities of non-interest Lack of quality training Non-availability of raw materials Problem in marketing of finished products Difficulty in procurement of raw materials
  24. 24. OTHER PROBLEMS SHGs created by other NGOs- problems between the 2 NGOs Banks do not cooperate with NGOs and Govt. Outstanding loan recovered from new loan by banks
  26. 26. INVESTMENTS Total funds invested in SGSY since inception Rs. 14, 403.73 crores
  27. 27. SELF HELP GROUPS24.09 lakhs have 11.24 lakhs have passed Grade I passed Grade II Since inception 36.78 lakh SHGs have been formed
  28. 28. PEOPLE More than 77 lakh beneficiaries
  29. 29. LEADING STATES Andhra Pradesh Uttar Pradesh Maharashtra Bihar Tamil Nadu
  30. 30. STRENGTHS Targeted towards BPL population Imparts Special focus permanent on women opportunities Promotion to Reliance on self micro employment enterprises
  31. 31. WEAKNESSES Attrition Rate Credit Concerns Lack of Capacity building and Training Lack of SHGs at all levels Selection Bias Inadequate Risk Mitigation Grievance Redressal Mechanism Lack of Transparency and Accountability
  32. 32. SUGGESTIONSFormation of Co-operatives to market SHG productsProper Monitoring of ActivitiesSelection of NGOs with better track record forsuccessful implementationProper Training and Development programs forspeedier up gradation of SHGsIncrease in the coverage of banks to remote areas
  33. 33. Thank You