SGSY

• 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. 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 thepoverty Line by providing them income-generating assets through a mix ofBank Credit and Governmental Subsidy. Integrated programme of selfemployment through establishment of self help groups or cluster 3. INTRODUCTION (2/2) There are two key aspects of the SGSY - Activity Clustersand the Group Approach. Launched by Restructuring: IRDP ( Integrated Rural DevelopmentProgramme) TRYSEM ( Training of Rural Youth for SelfEmployment) DWCRA ( Development of Women and Children inRuralAreas) SITRA ( Supply of Improved Tool Kits to RuralArtisans) GKY ( Ganga Kalyan Yojana ) 4. IRDP vs. SGSY (1/3)S.No.IRDP SGSY 1Beneficiaries: sense of benefit/grant to be Swarozgari: sense of selfenjoyed respect andentrepreneurship 2financing poorest of the poor.Financing those who areenterprising and are onthreshold of crossing thepoverty line. 3Agricultural laborers, marginal & small All persons below povertyfarmers and rural artisans. line (BPL) are in itsambience. 4Individual approach for extending the credit. Group approach forextending the credit ( 3:1ratio) 5Anyone can avail the credit Training and capacitybuilding only after whichcredit can be availed 5. IRDP vs. SGSY (2/3)S.No.IRDPSGSY 6The selection of activity to be Financing can be done for only fourfinanced was left to the choice of tothe borrower.five Key Activities selected by Block level SGSY committee. 7No emphasis on project profilesThere has to be project profile for each activity to be financed. 8The share of Centre and States The share of Center and Stateswas in ratio of 50:50. modified to 75:25 9No incentives to beneficiary for No further finance for less than 80%prompt repayment of bank credit. recovery and rebate of 0.5% cumOnly single time credit assistance monitoring fee to all thoseonly.Swarozgaris who repay their dues promptly. 10 Infrastructure and marketing Great emphasis on thelinkages 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 certainlevel of occupation and land status. percentage of project cost. SubsidyAlso The ceiling on subsidy wasindependent of area ofdependent 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 ofgenerated under IRDP was defined. Rs.2000 net of repayment for eachSwarozgari. 7. TIME FRAME The SGSY is a process oriented scheme and SHGpasses through different stages Time frame at each stage differs from district todistrict and state to sate depending upon spacialdistribution and capacity of facilitator. 8. IMPLEMENTING AGENCIES The Swarnajayanti Gram Swarozgar Yojana (SGSY)is being implemented by the District RuralDevelopment Agencies (DRDAs), with the activeinvolvement of PanchayatiRaj Institutions(PRIs), the Banks, the line departments and Non-Government Organisations (NGOs) 9. FUNDING Centrally sponsored scheme and financing shared centre and state inthe 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 thestate. Devolution of funds to the districts will be indicated by the States andapproved by the Government of India Government of India will release the funds directly to the DRDAs. DRDA receives funds directly from the state and conductstraining, infrastructure and economic activities for a maximum of10% of the fund. Devolution to the Blocks may be decided by the Governing Body ofthe 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 ifsecond installment in the previous year was releasedwithout any condition else formal request is required The second installment of Central funds is releasedon 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 ofmicro enterprises in the rural areas, building uponthe potential of the rural poor. The SGSY emphasis on the cluster approach forestablishing the micro-enterprises. The SGSY adopts a Project approach for each KeyActivity. The existing infrastructure for the cluster of activitiesshould 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 thePoverty Line families identified in the BPL Census. 14. SALIENT FEATURES The group approach involves organization of the poorinto Self-Help Groups (SHGs) and their capacitybuilding. A credit-cum-subsidy Programme. Promotes multiple credit rather than a one-time creditinjection.lays emphasis on skill development through well-designed training courses. Attempts to ensure up gradation of technology in theidentified activity clusters. Provides information for promotion of marketing of thegoods produced by the SGSY Swarozgaris. The SGSY is implemented by the DRDAs through thePanchayat 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 SELECTINGPEOPLE- FOCUS ON THEPOOREST Mobilization of Swarozgaris-individuals or groups Subscribes to BPL list (BPL Census) approved byGram Sabha BDO, Banker, Sarpanch visit to hamletsPROBLEMS 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 ofperformance Until the SHG has completed six months ofexistence it is categorized as Grade I At the end of the formation stage, which may beabout six months or more, it is necessary tosubject each Self Help Group to a test to assesswhether it has evolved into a good group and isready to go into the next stage of evolution i.e.Grade II Grading of the Self Help Groups could be doneby the same agency that is involved in thepromotion and development of SHGs or any 18. FORMATION AND PROMOTION OFGROUPS WITH ASSISTANCE OFNGOs Emphasis on group approach rather than financingindividuals Help of NGOs, CBOs and individuals in group formation(better equipped than govt.) Group formation- time and nurturing from a goodfacilitator (10-20 individuals in an SHG; one person partof only one group) In the case of minor irrigation schemes and in the case ofdisabled persons, this number may be a minimum of five(5) Group approach- clarity regarding the roles and design tothe members Social mobilization enables the poor build their ownorganizations {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 andGovt. Some places of implementation- no NGOs Formation of SHGs- a time taking process Directions from state level to Village LevelWorkers(VLW) and district and blockadministrators to form SHGs Target-oriented approach not participatoryprocess 20. FUNCTIONING OF GROUPS Once formed, groups do internal lending Trained by DRDA along with banks to develop strengths andsaving 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. ASSISTANCE AND ACTIVITYCLUSTERS Block level selection of 8-10 activities Choice of activity- availability of raw materials, skills andaptitude of local people, traditional knowledge Selection of 4-5 activities based on preference Participants included in decision making Cluster approach (Consultative and Participatoryprocess)PROBLEMS Non-participatory and Top-down approach For providing assistance, timely payment to NGOs notprovided 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 byDRDA Duration of training Training provided to fellow Swarozgaris Banks to provide multiple doses of credit ratherthan one time credit injection Support from PRI and Govt. departmentsregarding use of funds Adequate supply of inputs (backward linkage) Marketing linkage (forward linkage) 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. OTHER PROBLEMS SHGs created by other NGOs- problems betweenthe 2 NGOs Banks do not cooperate with NGOs and Govt. Outstanding loan recovered from new loan bybanks 25. PERFORMANCE AND EVALUATION 26. INVESTMENTS Total funds invested in SGSY since inception Rs. 14, 403.73 crores 27. SELF HELP GROUPS24.09 lakhs have11.24 lakhs have passed Grade I passed Grade IISince inception 36.78 lakh SHGs have been formed 28. PEOPLE More than 77 lakh beneficiaries 29. LEADING STATESAndhra Pradesh Uttar Pradesh Maharashtra BiharTamil Nadu 30. STRENGTHSTargetedtowards BPL populationImpartsSpecial focus permanent on womenopportunities Promotion toReliance on selfmicro employmententerprises 31. WEAKNESSES Attrition Rate Credit Concerns Lack of Capacity building and Training Lack of SHGs at all levelsSelection BiasInadequate Risk Mitigation Grievance Redressal MechanismLack of Transparency and Accountability 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. Thank You