The document summarizes the Swarnajayanti Gram Swarojgar Yojana (SGSY), a self-employment program launched by the Government of India. The key points are: 1) SGSY aims to bring families living below the poverty line above it by providing income-generating assets through bank credit and government subsidies. 2) It focuses on a group approach and forming self-help groups, as well as identifying clusters of economic activities. 3) Implementation involves organizing the rural poor into self-help groups, providing training and assets, and linking groups to credit and marketing support.

1. SWARNAJAYANTI GRAM
SWAROJGAR YOJANA
Presented By IRMA students batch of
2013:
Ankit Sharma (32005)
Arpit Bansal (32009)
Tanu Shree Shekhawat (32044)
Tijil Thomas (32045)

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. 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. 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. 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. 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. 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. IMPLEMENTING AGENCIES
The Swarnajayanti Gram Swarozgar Yojana (SGSY)
is being implemented by the District Rural
Development Agencies (DRDAs), with the active
involvement of Panchayati Raj Institutions
(PRIs), the Banks, the line departments and Non-
Government Organisations (NGOs)

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. 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. 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. 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. 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. 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. 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. ORGANIZING AND SELECTING
PEOPLE- FOCUS ON THE
POOREST
 Mobilization of Swarozgaris-individuals or groups
 Subscribes to BPL list (BPL Census) approved by
Gram Sabha
 BDO, Banker, Sarpanch visit to hamlets
PROBLEMS
 Inclusion of non-poor
 Exclusion of the poor
 No foolproof method of selection

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. 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. 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. 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 accounts
PROBLEMS:
 Internal loaning/lending- “A Fake Exercise”
 Groups lacked cohesiveness
 Slack in SHG meetings and irregular savings
 Fake records

21. ASSISTANCE AND ACTIVITY
CLUSTERS
 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. 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. PROBLEMS IN STARTING
MICROENTERPRISE AND USING
TRAINING
 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. 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

25. PERFORMANCE AND EVALUATION

26. INVESTMENTS
Total funds invested in SGSY since inception
Rs. 14, 403.73 crores

27. SELF HELP GROUPS
24.09 lakhs have 11.24 lakhs have
passed Grade I passed Grade II
Since inception
36.78 lakh SHGs
have been formed

28. PEOPLE
More than 77 lakh beneficiaries

29. LEADING STATES
Andhra Pradesh
Uttar Pradesh
Maharashtra
Bihar
Tamil Nadu

30. STRENGTHS
Targeted
towards BPL
population
Imparts
Special focus
permanent
on women
opportunities
Promotion to
Reliance on self
micro
employment
enterprises

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. SUGGESTIONS
Formation of Co-operatives to market SHG products
Proper Monitoring of Activities
Selection of NGOs with better track record for
successful implementation
Proper Training and Development programs for
speedier up gradation of SHGs
Increase in the coverage of banks to remote areas

33. Thank You