The Swarnajayanti Gramin Swarozgar Yojana (SGSY) is a holistic scheme covering all aspects of self-employment. The scheme was launched on 1st April 1999 in rural areas of the country with the objective of providing gainful and productive employment to the rural poor.
The scheme is funded by financial institutions, Panchayat Raj Institutions, District Rural Development Agencies (DRDAs), NGOs, and technical institutions. These organizations are involved in the planning, implementation, and monitoring of the scheme.
SGSY aims to provide employment opportunities to the rural poor by organizing them into self-help groups, and providing training, credit, technology, infrastructure, and marketing support. The scheme has helped many rural families escape poverty and attain financial stability. The SGSY Scheme is designed to help the most vulnerable members of rural society, including Scheduled Castes and Tribes (SC/ST), women, and the disabled. At least 50% of those assisted under the scheme will be from SC/ST communities, 40% will be women, and 3% will be disabled.
If you are living in a rural area and looking for self-employment opportunities, SGSY may be the right scheme for you. Contact your nearest District Rural Development Agency or financial institution for more information on how to apply for the scheme.
The government of India launched Swarnajayanti Gramin Swarozgar Yojana (SGSY) by restructuring the following existing schemes:
i. Integrated Rural Development Programme (IRDP)
ii. Million Wells Scheme (MWS)
iii. Ganga Kalyan Yojana (GKY)
iv. Supply of Improved Toolkits to Rural Artisans (SITRA)
v. Development of Women & Children in Rural Areas (DWCRA)
vi. Training of Rural Youth for Self-Employment (TRYSEM)
The restructured scheme was launched on 1st April 1999. The scheme had a outlay of Rs. 8000 crore and was to be implemented over a period of five years in rural areas across the country.
SGSY objectives:
– To provide gainful and suitable self-employment to the rural poor
– To bring about all-round development of the target groups through a well-designed mix of inputs
– To make the target groups capable of sustaining themselves in the long run by building their self-confidence and improving their skills
The scheme was implemented through a three-tier structure consisting of
– Gram Panchayats at the village level
– Intermediate Panchayats at the block level
– District Rural Development Agencies (DRDAs) at the district level
The SGSY scheme had four components:
1. Self-employment component
2. Micro-enterprise component
3. Infrastructure development component
4. Training and capacity building component
The scheme was successful in creating employment opportunities for the rural poor and in bringing about all-round development of the target groups. It also helped in building the self-confidence and improving the skills of the target groups.
SGSY Skill upgradation training:
The SGSY scheme provides for skill up-gradation training of the participating families. The training will help them become better equipped to find and retain employment.
The SGSY scheme also provides for placement assistance, so that the trained individuals can find employment easily.
The scheme is funded by financial institutions, panchayat raj institutions, district rural development agencies (DRDAS), NGOs, and technical institutions. It is implemented and monitored by these agencies.
The SGSY scheme has helped many rural families to find and keep employment. It has also helped them to upgrade their skills and become more employable.
SGSY Activity clusters:
The SGSY scheme has four main activity clusters which are designed to promote self-employment and entrepreneurship among the rural poor. These are:
1. Self-Help Groups (SHGs): The scheme seeks to promote the formation and consolidation of SHGs as a key instrument for poverty alleviation. Through SHGs, the rural poor are empowered to pool their resources and avail of financial and other support services.
2. Training: The scheme provides for training of the rural poor in various skills necessary for self-employment and entrepreneurship.
3. Credit: The scheme aims to provide easy access to credit for the rural poor so that they can start or expand their businesses.
4. Infrastructure: The scheme supports the development of infrastructures such as roads, power, water and communication in rural areas to facilitate self-employment and entrepreneurship.
SGSY Lending Norms
Under the Swarnajayanti Gramin Swarozgar Yojana (SGSY), banks and other financial institutions are required to lend to self-employed individuals and groups at preferential rates. The lending norms for SGSY are as follows:
– For individual loans up to Rs. 50000 and group loans up to Rs 5 Lakh can be availed.
-The interest rate on the loan is to be determined by the financial institution, but cannot exceed 12% per annum
-The loan must have a repayment period of not more than 5 years. Installments for repayment of the loan will be fixed as per the unit cost approved by the NABARD / Dist. SGSY Committee.
-The loan must be used for income-generating activities that lead to self-employment
Under the SGSY scheme, financial assistance is also provided for training and capacity building, as well as for the purchase of equipment and other necessary inputs. In addition, interest subsidies are available for loans used for certain types of income-generating activities. More information on the SGSY scheme can be found on the website of the Ministry of Rural Development.
SGSY Subsidy
– SGSY will provide a subsidy of 30% of the project cost, up to a maximum of Rs.7,500/- for rural areas.
– SGSY will provide a subsidy of 50% of the project cost, up to a maximum of Rs.10,000/- for SC/STs.
– SGSY will provide a subsidy of 50% of the project cost, up to a maximum of Rs.1.25 lakhs for SHGs.
– SGSY will provide no monetary limit on subsidy for irrigation projects.
– SGSY will be contingent on proper utilisation of loan, prompt repayment and maintaining asset in good condition.
The District Rural Development Agencies (DRDAs) will be responsible for opening and maintaining savings bank accounts with the principal participating bank branches for the administration of subsidy payments. These accounts will be reconciled on a quarterly basis and will be subject to an annual audit.
The SGSY Scheme is a holistic scheme covering all aspects of self-employment such as organization of the poor into Self Help Groups, training, credit, technology, infrastructure and marketing. The scheme will be funded by financial institutions, Panchayat Raj Institutions, District Rural Development Agencies (DRDAs), Non-Government Organizations (NGOs), and Technical institutions in the district; will be involved in the process of planning, implementation and monitoring of the scheme. The scheme has been successful in creating self-employment opportunities and improving the quality of life of rural poor households.
