The Swarnajayanti Gram Swarozgar Yojana (SGSY) is a self-employment program launched in 1999 that provides loans, subsidies and training to rural poor families to start micro-enterprises. It aims to bring assisted rural families above the poverty line through sustained income increases. The scheme is implemented through self-help groups with assistance from NGOs, banks and local governments. It has successfully promoted over 76 million self-help groups and provided over $60 billion in bank loans to rural micro-enterprises since its inception.

1. SWARNAJAYANTI GRAM
SWAROJGAR YOJANA
Presented by:-
Tapobrato Ghosh
Subject: Geography
Roll No: 19AG0571
Registration No: 0291906011563
College Name: Siliguri College
Course: B.A.(Programme)
Semester: 6th Semester
UNIVERSITY OF NORTH BENGAL

2. SWARNAJAYANTI GRAM SWAROJGAR
YOJANA

3. INTRODUCTION
Launched By: Government of India
Date of Launch: April 1, 1999
Programme Specific: Self Employment, Asset Creation, Income
Generation and Create access.
Scheme Replaced:
Swarnajayanti Gram Swarozgar Yojana (SGSY) was enacted in the
dawn of the financial year of 1999-2000 as a replacement of six
other affiliated schemes. The initiative was designed as an
integrated program that caters to the self-employment of the rural
poor.
• Integrated Rural Development Program (IRDP)
• Training of Rural Youth for Self-Employment (TRYSEM)
• Development of Women and Children in Rural Areas (DWCRA)
• Supply of Improved Toolkits to Rural Artisans (SITRA)
• Ganga Kalyan Yojana (GKY)
• Million Wells Scheme (MWS)

4. OBJECTIVES
 One of the main objectives of the SGSY is bring the Assisted Rural poor
families Above Poverty Line by ensuring sustained increase in the income.
 Family net income should be Rs. 2000/Month.
 The assisted families may be individuals (swarozgari) or groups (self-help groups).
Emphasis will be on the group approach.
Some Successful SGSY Implimentations

5. ROADMAP
The initiative focusses on establishing a large number of micro-enterprises in rural
areas based on the potential of such areas (land-based or otherwise). Due
consideration is accorded to different components such as capacity building of the
poor, skill development training, credit, training, technology transfer, marketing and
infrastructure
Group Creation Capital Creation Implementation
This stage covers
the assessment of
the skill level of
the members.
This involves the use
of a rotating fund
system,he members
are facilitated to
hone their skills
through experience.
The implementation
is processed
according to the
pace desired by the
respective groups.

6. GUIDELINE
RELOVING FUND INSURANCE COVER GOV. SUBSIDIES
POST CREDIT
FOLLOW UP
REPAYMENT OF
LOAN
RISK FUND FOR
CONSUMPTION
CREDIT
REFINANCE OF SGSY
LOANS
RECOVERY
SERVICE AREA
APPROACH
SUPERVISION AND
MONITORING
LBR RETURNS

7. SHGs in Working

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 Institutes (PRIs), the Banks, the line
department and Non-Government Organisations
(NGOs).
Self-Employment

9. SUBSIDIES AND FUNDING
GOVERNMENT SUBSIDIES:-
 A uniform subsidy of 30% of the total project cost is allowed under the scheme, subject to a
ceiling of Rs. 7,500.
 A subsidy of 50% of the total project cost, subject to a ceiling of Rs. 10,000 is extended to
SC/STs and disabled persons.
 A subsidy of 50% of the total project cost, subject to a ceiling of Rs. 1.25 lakh or per
capita subsidy of Rs. 10,000 (whichever is less) is provided to Self-Help Groups (SHGs)
and individual swarozgaris.
FUNDING:-
 The maintenance, education, and funding for these groups comes from NGOs,
philanthropists, CBOs, banks, organizations promoting self-aid, and District Land
Development Agencies (DRDAs) that are owned by the government.
 Government funding for scheme is divided between the center and state on 75:25 basis.
 DRDA receives funds directly from the state and conducts training, infrastructure and
economics activities for a maximum of 10% of the fund.

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 in released on the
request of the DRDAs.
Funds Distribution

11. ROLE OF PRIs, NGOs etc.
Identification of the poor
Capacity building and training
Infrastructural Support
Linkages of SHGs with Banks
Marketing Support
Monitoring and Social auditing
Maintenance of record of SHG
Dissemination of Best Pratices
Engaging youths

12. FLEXIBLE DESIGN
 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 entitlement
 Linking with markets
 Risk mitigation
 Gender empowerment
SHGs at Small Farming

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.
 Aims to cover maximum number of panchayats.
 The assisted families may be individual or groups (Self Help Groups).
 The group approach involves organization of the poor into Self Help
Groups and their capacity building.
 A credit-cum-subsidy Programme.
 Provides information for promotion of marketing of the goods
produced by the SGSY Swarojgaris.
 The SGSY in implemented by the DRDAs though the Panchayat Samitis.

14. PROCESS OF IMPLEMENTATION
• Organizing the rural poor into SHGs
• Inclusion of the poorest
• Assistance to take up economic activities
• Activity cluster
• Training and capacity building
• Providing of income generation assets
• infrastructure support and technology
• Credit and marketing services
SHG Bank Linkage

15. ORGANZING AND SELECTION PEOPLE
 Mobilizing of Swarojgaris-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
Schooling discussion among SHGs

16. FORMATION OF GROUPS WITH
ASSISTANCE OF NGOs
 Emphasis on group approach rather than financing individual
 Help of NGOs, CBOs and individual in groups formation
 Group approach- clarity regarding the roles and design to the
members
 Group formation- time and nurturing from a good facilitator; 10-
20 individuals in a SHG; one person part of one group.
PROBLEMS
 Selection of NGOs not transparent
 NGOs with limited experience in implementation
 Problems of co-ordination between NGOs and Govt.
 Some places of implementation – no NGOs
 Formation of SHGs – a time taking process

17. FUNCTIONING OF GROUPS
Once formed, groups do internal lending
Trained by DRDA along with banks to develop strengths and
saving
Accessing credit, subsidy and loan from banks
SHG meetings and regular savings
Maintenance of account books
PROBLEMS
Internal loaning/lending – “A Fake Exercise”
Groups lacked cohesiveness
Slack in SHG meeting and irregular savings
Fake records
Self Employment

18. TRAINING AND SUPPORT
Training provided in the selected activities by DRDA
Training provided to fellow “Swarojgaris”
Banks to provide “multiple doses of credit” rather than “one
time credit injection”
Support from PRI and Govt. departments regarding use of funds
PROBLEMS
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

19. PERFORMANCE, EVALUTION AND
SUCCESSFUL IMPLEMENTATION

20. TOTAL SHGs PROMOTED
76.4 LAKH
TOTAL BLOCK COVERED
6809
TOTAL BANK LOAN TO
SHGs
4.35 LAKH CRORE
Scale Achieved by NRLM as per March 2020

21. BIHAR
WEST BENGAL
ANDHRA PRADESH
UTTAR PRADESH
MAHARASHTRA
ODISHA
LEADING STATES

22. PHYSICAL PROGRESS OF
SGSY/ NRLM

23. FINANCIAL PROGRESS OF
SGSY/NRLM

24. STRENGTHS
Promotion to
micro enterprises
Targeted
towards BPL
population
Imparts focus on
women
Imparts
permanent
oppotunity
Reliance on self
employment

25. WEAKNESSES
Lack of capacity building and training
Credit Concerns
Lack of SHGs at all level
Inadequate Risk Mitigation
Lack of Transparency and Accountability

26. WAY FORWARD
 Formation of Co-operatives to market SHGs products.
 Proper monitoring of activities.
 Selection of NGOs with better track records for Successful Implementation.
 Proper training and Development programmes for speedier of gradation of SHGs.
 Increase the coverage of banks to remote areas.
Swarnajayanti Gram Swarojgar Yojana is successfully elevating rural people
employment and helps the rural economy to grow into the heights. In states like West
Bengal, Kerala, AP, UP etc. SGSY has made a great impact in the rural people daily
life.Some of the important way forwards are:-

27. REFERENCES
 www.indiafilings.com
 www.pib.gov.in
 www.megcnrd.gov.in
 www.india.gov.in
 www.rbi.org.in
 www.rural.nic.in
 www.nrlm.gov.in
PICTURES:-
 www.google.com
INFORMATION:-

28. THANK YOU