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Swarnajayanti Gram Swarozgar Yojana (SGSY) was introduced in the 1999-2000 Fiscal Year to replace six other affiliated plans. On April 1, 1999, then Prime Minister Shri Atal Bihari Vajpayee announced this initiative.
It was created as an integrated program to support poor rural self-employment. The scheme is funded in a 75:25 ratio by the Center and the State and is implemented by commercial banks, regional banks, and cooperative banks.
Other financial institutions, Panchayat Raj Institutions (PRIs), District Rural Development Agencies (DRDAs), Non-Governmental Organizations (NGOs), and technical institutes in the district participate in the scheme's development, implementation, and monitoring. This article aims to raise awareness of this self-employment opportunity.
Before learning more about this scheme, check out its highlights:
Parameters | Features |
---|---|
Scheme Name | Swarnajayanti Gram Swarozgar Yojana (SGSY) |
Launch Date | 1 April 1999 |
Launched By | PM Atal Bihari Vajpayee |
Investment Amount | Maximum limit of Rs. 1.25 lakhs or Rs. 10,000 per person |
Banks | Commercial Banks, Cooperative Banks, Regional Rural Banks |
Payment Tenure | Five years, seven years and 9 Years |
Low-Income families living Below Poverty Line (BPL) were organized into groups known as Self-Help Groups (SHGs), which were sponsored through a combination of government money and small Bank loans.
The major goal of the SHGs was to assist these families in crossing the poverty line and generating a sustainable source of revenues through a collaborative effort. After the families got themselves out of poverty, the SHGs were established so that each group member could contribute to the fulfilment of a shared goal. Groups were formed based on similar skills, the skill level of the participants, and the amount of time and labour they could provide.
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SGSY Scheme replaced the existing six schemes as follows:
Let's take a look at salient features of Swarna Jayanti Gram Swarojgar Yojana mentioned below:
Following are the objectives of the scheme:
The plan focuses on building a significant number of micro-enterprises in rural regions based on their potential (Land-based or otherwise). Different components, such as weak capacity building, skill development training, credit, training, technology transfer, marketing, and infrastructure, are given careful consideration.
The following procedures are part of the scheme:
Group Creation - This entails processes such as inquiring and assessing talents, choosing persons, and assigning people to groups depending on each member's ability level
Capital Creation - For a Capital generation, a rotating fund mechanism is used, and talents are permitted to grow via experience
Implementation - The last step focuses on identifying and developing abilities and group capabilities. The implementation is carried out at the pace chosen by various organisations
The scheme's subsidy allocation is subject to the following conditions:
Some key points to remember
Here are some of the important coverage points under this scheme:
The scheme's groups will be maintained, trained, and sponsored by NGOs, donors, community-based organisations (CBOs), banks, SHGs, and government-owned District Rural Development Agencies (DRDAs). Bookkeeping, market knowledge, identification and appraisal, familiarisation with product costing, product keeping, familiarisation with project financing by banks, and fundamental skills relevant to the specified activity are all part of the training program.
insurance coverage is offered for assets or livestock purchased with the loan proceeds. Furthermore, the Swarozgaris are covered by the Group Insurance plan.
SHGs that have been in operation for six months and have proved the potential of a functioning organisation are eligible for monetary credits from DRDA and banks. These funds, known as revolving funds, supplement the group corpus. It allows a huge number of members to apply for loans.
These schemes provide medium-term loans with a minimum payback duration of five years. The payments are calculated based on the unit cost allowed by NABARD or the district.
The initiative concentrates on the most vulnerable segments of the rural poor. The SC or ST would get most of the funding (50%). And, some of the remaining funds go to women and the disabled. This initiative aims to create Swarozgaris through training courses tailored to the activities chosen and the needs of each swarozgari.