SWARNJAYANTI GRAM SWAROZGAR YOJANA
GUIDELINES
MINISTRY
OF RURAL DEVELOPMENT
NEW
DELHI
I
ACTVITY
CLUSTERS – PLANNING AND SELECTION
Para
1.1 : The
objective of the Swarnjayanti Gram Swarozgar Yojana (SGSY) is to bring the
assisted poor families (Swarozgaries) above the Poverty Line by ensuring
appreciable sustained level of income over a period of time. This objective is
to be achieved by inter alia organising the rural poor into Self Help Groups(SHGs) through the
process of social mobilization, their training and capacity building and
provision of income generating assets. The SHG approach helps the poor to build
their self-confidence through community action. Interactions in group meetings and
collective decision making enables them in identification and prioritization of
their needs and resources. This process would ultimately lead to the
strengthening and socio-economic empowerment of the rural poor as well as
improve their collective bargaining power.
The poverty line varies from State to
State. As per the latest
(1999-2000) estimates of the Planning Commission, the poverty line in terms of
per capita consumption expenditure
per month in the rural areas varies from Rs.262.94 in Andhra Pradesh to
Rs.367.45 in Himachal Pradesh. The
State specific , Poverty lines (1999-2000) in terms of per capita expenditure per month is
furnished in the Annexure-I
Para 1.2: SGSY lays stress on the cluster
approach. What this means is that
instead of funding diverse activities, each block should concentrate on a few
select activities (key activities) and attend to all aspects of these
activities, so that the Swarozgaris can draw sustainable incomes from their
investments. These key activities
should preferably be taken up in clusters so that the backward and forward
linkages can be effectively established.
This would facilitate not only monitoring but more importantly provision
of various services required by the Swarozgaris.
Selection of key
activities
Para 1.3: The success of SGSY will therefore
depend, to start with, on the choice of activities. The key element is that the choice of
activity should be based on the local resources, the aptitude as well as the
skill of the people. It is also
necessary that the products have ready market.
Para 1.4: The choice of key activities
should not be an arbitrary or an
adhoc decision but should be a carefully thought out process. The Block SGSY committee has a very
important role to play in it. For
identifying the key activities that can be taken up, the committee should ensure
that this selection takes place through a participative process. For selection
of key activities, a profile of the
poor families, as reflected in the BPL Census should be analyzed. There will be
poor families with assets, such as land.
Efforts should be made to see that those having a minimum extent of land
are enabled to cross the poverty line by making additional investment on their
lands, such as wells or other irrigation facilities, pump sets etc. The experience over the years as well as
Evaluation Studies have shown that investments on land based activities have
resulted in generation of income on a more sustainable basis. The Block SGSY committee should
therefore, analyze the potential for farm activities on priority. Care must be taken to see that they also
have access to short term credit and other inputs required in the farm sector to
supplement the efforts under the Scheme.
The next priority may be given to those who have an inherent skill. These would primarily be the rural
artisans who form a significant segment of the rural society. Under the SGSY, rural artisans should be
covered in a significant manner.
Another category would be the unemployed educated youth. A number of them would have been
trained under the erstwhile TRYSEM
Programme. An inventory may be
taken of such people to find out which activities are best suited for the
area. Generally, the people who are
asset-less and skill-less are poorest of poor and get left out under the
Programme. Such category of people may require small doses of multiple credit
over a period of time coupled with emphasis on awareness creation, training and
capacity building. The activities
which are easier to handle and product is easily marketable could be
identified for such category of
people to ensure sustainable income, so that, they do not fall into debt
trap.
Para 1.5: The Block SGSY Committee may also
look at the potential link plans prepared by NABARD as well as any other survey
carried out by various banks, industrial/technical organizations, etc. The local Khadi & Village Industry
officials as well as the District Manager of District Industry Centre may also
be consulted.
Para 1.6: The Block SGSY
Committee must interact with as many sarpanches as possible and also discuss
with groups of the rural poor such as the landless labour, the educated
unemployed, those rural poor with lands, the artisan groups etc. Where self-help groups are in position,
they should also be consulted. In
their discussions, the Committee should explore various opportunities that are
available (provided credit, technology, skill up gradation and marketing are
assured) to enable the poor to cross the poverty line. While conducting this dialogue, the
Block SGSY committee should be equipped with information relating to the
performance of various activities in the village whether such activities are
taken up under government programmes or otherwise. The committee should use that knowledge
to supplement the traditional knowledge of the poor households and to facilitate
the identification of suitable activities.
In this process, the traditional wisdom of the poor families acquires
value and the Block committee builds upon the traditional knowledge of the poor
families with its knowledge base.
It must be ensured that the consultation process is genuine and not
perfunctory or token in nature.
Para 1.7: In so far as on-farm
activities are concerned, provision of irrigation facilities continues to be
important. These facilities can be
provided either in the form of open dug wells or bore/tube wells or through lift
irrigation or check dams etc. In
other words, the nature of source is not important for providing irrigation
facilities under SGSY. Effort may
be made to bring in as much of the land of the rural poor as possible under
irrigation so that they can have sustainable incomes. Minor irrigation investment will include
cost of well, lifting device and land development – a composite investment. Working capital requirement can also be
considered but would not be eligible for subsidy.
Para 1.8: Minor irrigation projects
may be group oriented or individual oriented. It is preferable to adopt as far as
possible, a project approach under minor irrigation instead of spreading the
investment in a scattered manner.
Minor irrigation can also be the basis for activity clusters or formation
of SHGs.
Para 1.9: As regards the
non-farm activities, care must be taken to identify only those activities which
result in the production of goods/services that have a ready market.
Para 1.10: Based on this consultation
process, the committee may identify about 8-10 activities, which they may rank
in the order of preference. This
list should then be placed before the general body of the Panchayat Samiti
(Block Panchayat). The Panchayat
Samiti should be asked to give its recommendations. The list of selected key activities,
along with the recommendations of the Panchayat Samiti, should then be forwarded
by the BDO to the District SGSY committee for consideration. Before sending the list to the District
SGSY Committee, the Block Committee should prepare a brief project report,
keeping in view the guidelines.
Para 1.11: The District SGSY committee will
receive the block-wise proposals and will vet them. The committee will select about
10 activities per block. However, focus should be on 4-5 Key activities
which are identified for training and micro-enterprise development in a cluster
approach for larger number of Groups. In the process, scope for other potential
activities should not be excluded. In doing so, the District SGSY
committee will ensure that the infrastructure already available in the district
– in terms of production, service, training facilities as well as market
are utilized and that the choice of activity does not require a new effort in
all directions – production as well as marketing. In other words, at least some of the key
elements of the economic chain of the selected activity should be present and it
is only the missing link that needs to be provided. Secondly, in choosing the activities,
the district level committee will also ensure that Swarozgaris taking up the
activity can realize appreciable incremental income sustained over a period of
time which will help them to effectively cross the Poverty Line. DRDAs may
ensure that the anticipated income as stipulated in the project is realized
during the project period in order to enable the Swarozgaries to cross the
Poverty. Generally, one time
assistance /credit injection might not help the Swarozgaris to cross the poverty
line. Therefore, multiple dose of credit would be necessary which should be
ensured through continuous monitoring and follow up. The Committee will ensure
that the views of Line Departments are taken into consideration so that the Line
Departments have a commitment to the key activity being taken up in the
respective blocks and provide required services to the
Swarozgaries.
Para 1.12: The District SGSY committee
should scrutinize the proposals for each key activity separately in consultation
with the concerned experts including the line department officials. In fixing the unit costs for the farm
sector, the costs fixed by the regional committees of NABARD should be taken
into consideration. With regard to
the loans for various purposes falling under ISB sector of SGSY, the
responsibility of fixing the unit cost and other techno-economic parameters is
of the committee.
1.13: It must be noted that
identification of activities is critical for the success of the SGSY. It is therefore necessary that it should
be done in careful manner. Care
should however be taken that the market is either readily available or there is
a potential for market creation for the products. This may require engaging the services
of professionals in the field for market research and survey. A detailed timetable may be drawn up by
each DRDA for each Block and the schedule publicized so that everyone is aware
of the selection of key activities.
Para 1.14: The District SGSY Committee is empowered
to add or delete any activity in the list of selected key activities with due
justification. Any of the selected
activities can be replaced by a new one, if the scope of the former has been
exhausted. The procedure for
replacement will be the same as it is for making the original list of key
activities. However, the number of
selected key activities should not ordinarily exceed 10.. The DRDAs shall
prepare directory of selected key activities in the District, which will be
consolidated at the State level for preparation of directory of selected key
activities.
Preparation of Project
Reports
Para 1.15: For each key activity there should
be a project report indicating various elements such as training, credit,
technology, infrastructure and marketing.
The project report should
indicate how many people could be
covered economically in a block
under a key activity. The tendency
to provide finance to a large number of similar units must be avoided so as to
prevent creation of excess capacity.
Para 1.16: The project report should also include
the balancing infrastructure that needs to be provided and the costs
involved. The district level
committee should ensure that it is well within the limits of the money that is
likely to be available under SGSY infrastructure. Care should be taken to avoid any
attempt to create infrastructure for line departments without concomitant
benefit to Swarozgaris. The test of
SGSY will be in additional incomes accrued to Swarozgaris, the additional
infrastructure being only an enabling factor. The project report should specifically
include a chapter on the levels of investment required at individual
Swarozgari’s level or by a group.
The economics for group lending should be shown distinctly from that of
individual lending. The Project
report shall be prepared for each activity and for each block separately. The project report should indicate that
whether the key activity selected is for individual or group or both. The economics should also be clearly
spelt out for each of these. The
economics should indicate the details of investment required, the details of
returns, the repayment schedule and the net income accruable to the
Swarozgari.
Para 1.17: The Committee should undertake the
entire exercise in a careful manner and not as a routine exercise. All expenses relating to this exercise
will be borne by the DRDA from its administrative expenses, which are provided
for separately under the head ‘DRDA Administration”.
Para 1.18: The line departments have an
important role to play in the entire exercise, for they will be responsible for
implementation and monitoring of respective sect oral activities. SGSY would need a very close
collaboration between the implementing agencies and the line departments. Presently, this is lacking or at least
is not taking place to the desired extent.
This collaboration must start with the identification of key activities
and preparation of project reports.
The line departments will be responsible for planning and creation of the
infrastructure required for making the key activities successful. In addition, once the bank has
sanctioned the loan, the line departments must ensure that all facilities
including technical guidance are provided to the Swarozgris. The line departments may also verify
whether the Swarozgaris have the necessary skill requirement and take steps to
train them. The line departments
should also satisfy themselves about the quality of training that is being
imparted. They should assist the
DRDAs in ensuring that the Swarozgaris are duly trained in appropriate
institutions. It shall be their
responsibility to monitor the progress and whether Swarozgaris are able to
derive the expected levels of income.
In other words, the line departments must recognize that promotion of
self-employment in their sector is as much their responsibility as that of
DRDAs/Panchayati Raj
Institution/Banks and it should be an integral part of their day-to-day
functioning.
Para 1.19: On approval by the District SGSY
committee, the list of selected key activities as well as the project report of
each key activity in respect of each block should be placed before the governing
body of the DRDA. Where no DRDA
exists, it should be placed before the Zila Parishad. On approval, it should be circulated to
the BDO and all the banks in the concerned blocks as well as the concerned line
departments. All the banks in the
district would be expected to follow the model set out in the respective project
reports. Under any circumstances,
under-financing of the key activity should not be allowed. This should be reviewed in the Block
SGSY Committee constantly.
Para 1.20: The major share of SGSY assistance will
be for the key activities. A
minimum of 75%, both by number and funding, will be for the key activities
identified in the block both as group assistance and individual assistance. However, assistance is not prohibited
for other activities. There may be
stray instances where a Swarozgari may like to take up an activity by
himself/herself and where the nature of activity is such that its economic
return is assured. SGSY allows such
activities but subject to a limit of 25% of the total number and funding of
Swarozgaris in any given year. It
must be noted that this is only an enabling provision for exceptional cases and
it is expected that the funding of key activities will be the norm. Therefore, the figure of 25% is only the
upper limit and should not be the norm.
Clusters
Para 1.21: The key activities may be taken up for
implementation preferably in clusters.
It must be noted that the clusters are not mere geographic agglomerations
but units where the backward and forward linkages can be effectively
established. This will facilitate
greater control of the progress of the programme, including setting up of
infrastructure, raw-material distribution, technology transfer as well as
quality control. It is not
essential that SGSY should be implemented in each and every village of the
Block. Advantage may be taken of
the infrastructure already built up so that the results may be more
definite. At the same time, care
must be taken to see that maximum number of villages are covered under one or
the other of the activity clusters.
Para 1.22: the clusters will be taken up for
each activity separately. The idea
is to select a few villages every year under a key activity and concentrate the
effort so that necessary linkages are available and also the monitoring becomes
easy. It is not necessary that if a
cluster of villages is taken up in a year, it should be given up the next
year. More swarozgaris can be
brought each year under the key activity in the identified clusters. However, in doing so, care must
be taken to see that there is no
undue concentration of a programme in only a few villages.
Para 1.23 : After the
District SGSY committee communicates the list of selected key activities for the
Block, the Block SGSY committee will identify the villages to be covered under
each activity. This is an
exercise that needs to be taken up before the beginning of each financial
year. This process is for
identification of geographical clusters of neighbouring villages for taking up
each activity in a focussed manner.
The list of cluster villages so selected may be placed before the
Panchayat Samithi, so that members of the Panchayat
Samithi are aware of the selection and also the principles
that underline the selection of villages.
PROGRAMME INFRASTRUCTURE
Para 2.1: Proper infrastructure is essential for
the success of micro enterprises.
The infrastructure may be either for production, processing, quality
testing, storage or marketing. The
lack of proper attention to this item has been one of the drawbacks of
IRDP. Although provision had been
made for expenditure on infrastructure, the investments made did not necessarily
correspond to the needs of the self-employed.
Para 2.2: SGSY will seek to ensure that the
infrastructure needs for the identified activities are met in full, so as to
enable the Swarozgaris to derive the maximum advantage from their
investments. Planning for
infrastructure will be made in close concert with the banks. As indicated earlier, the project report
for each key activity should clearly identify the existing infrastructure and
the additional infrastructure that needs to be created. It should be noted that the creation of
additional infrastructure should be meaningful and should only be in the nature
of providing the missing critical links.
The proposals for infrastructure development should be drawn up by DRDA
in consultation with Bankers and form part of the Annual Plan of the Block and
District.
Para 2.3: the provision of infrastructure is
essentially the responsibility of the State Governments. Therefore, the States will strive to
provide for necessary investments as part of their plan efforts of the
respective departments. Where the
plan funds of the line departments do not have adequate provision, recourse may
be go to JGSY and EAS. Similarly,
any other State or Centrally sponsored schemes can also be used for the creation
of infrastructure. Resource to SGSY
infrastructure fund should be as a last resort and only critical gaps in
investments will be made under the SGSY.
Para 2.4: The District SGSY Committee should
review the infrastructure gaps and identify the areas of intervention for
financing projects in activity clusters.
Infrastructure needs and their fulfillment will be constantly and closely
monitored by the DRDA, particularly the Governing Body of DRDA, to ensure that
the infrastructure needs are met as per plan. Financing in sectors should be
restricted where infrastructure is inadequate.
Para 2.5: It should be noted that the funds
available for providing infrastructure support under SGSY are primarily to
bridge small gaps in infrastructure which can make the programme implementation
more effective and not for creation of an altogether non-existent infrastructure
in the area.
Funds for infrastructure
development should, in no case be used to augment resources of the State
Government for development of general infrastructure.
Para 2.6: In order to meet expenditure on such
critical infrastructure, SGSY will provide for a fund, which will be known as
‘SGSY-Infrastructure Fund’. 20%
(25% in the case of North Eastern States) of SGSY allocation for each district
will be set apart for this fund.
DRDAs will maintain this fund in a separate account. The DRDAs are advised to utilize this
fund to generate additional funding wherever feasible.
The following principles may be
kept in view while framing the infrastructure proposals:
(a)
The
infrastructure activities should enable SGSY Swarozgaris’ to make full
utilization of their assets.
Marketing linkages should be given priority.
(b)
The proposals
should emerge out of the specific activities being taken up by the Swarozgaris
and the location decisions should be made by the Blocks/DRDAs in consultation
with Bankers.
(c)
Only village or
block or district level infrastructure should be planned. In no case should the proposals envisage
development of infrastructure at the State or regional level.
(d)
Only the fixed
cost and not the recurring expenditure should be met out of SGSY funds. There should be an undertaking that the
State Government or the organization concerned would meet the recurring
expenditure on staff and other items.
(e)
In the case of
assistance for development of infrastructure to cooperative societies, it should
be ensured that at least 50% of the members are SGSY Swarozgaris.
Para 2.7 : The proposals should clearly spell
out the time span envisaged for building up the infrastructure, its impact on
the activities of the Swarozgaris in particular and economic environment in
general, the agency charged with the implementation of the project and the
monitoring system provided to see that projects are executed in given time at
the given cost. The funds to the
executing agency should be given in phases depending on the progress of the
work. The decision on the phasing of the
release should be taken by the DRDA.
Other
Admissible items of Expenditure under the Programme Infrastructure
(i) Expenditure on account of premium
for insurance and risk fund to cooperatives could also be met under this head.
(ii) Expenditure on account of
commissioning studies for the purpose of local resource and skill based integrated projects, for the SGSY
subject to a maximum of Rs.50,000/- per annum per District approved by Governing
Body of the DRDA could also be made.
Monitoring of expenditure on
infrastructure projects
Para 2.8 : Given the magnitude of funds
allocated for infrastructure development, it is imperative that expenditure
under this head be monitored more rigorously. Accordingly, suitable formats will be
prescribed for monitoring purposes.
The Districts are required to send information in this format to the
States every quarter. The data will
be consolidated for all the districts by the State Government and sent to the
Central Government on a quarterly basis.
SWAROZGARIS
Para 3.1: Under Swarnjayanti Gram Swarozgar Yojana
(SGSY), the beneficiaries are known as Swarozgaris. The Swarozgaris can be either
individuals or groups. SGSY lays
emphasis on the group approach, under which the rural poor are organized into
Self Help Groups. In either case,
the list of BPL households identified through BPL census, duly approved by the
Gram Sabha will form the basis for identification of families for assistance
under the SGSY. The Self Help
Groups should also be drawn from the BPL list approved by the Gram Sabha.
This chapter is about
the Swarozgaris and the linkages with the banks. Part ‘A’ of this chapter is about the
SHGs. Part ‘B’ is about individual
Swarozgaris.
A. SELF HELP GROUPS
(SHGS)
Para 3.2: SGSY will focus on organization of
the poor at grassroots level through a process of social mobilization for
poverty eradication. SGSY’s
approach to organize the poor stems from the conviction that there is a
tremendous potential within the poor to help themselves and that the potential
can be harnessed by organizing them.
Social mobilization enables the poor build their own organizations (Self
Help Groups) in which they participate fully and directly and take decisions on
all issues concerning poverty eradication.
Simultaneously, SHGs have the advantage the assistance – be it in terms
of credit or technology or market guidance etc. – reaching the poor faster and
more effectively.
Self Help Groups go through various
stages of evolution
Para 3.3 : Social mobilisation is not a
spontaneous process; it has to be induced.
DRDAs are expected to initiate and sustain the process of social
mobilisation for poverty eradication by formation, development and strengthening
of the Self Help Groups (SHGs).
Issues that are key to poverty eradication should become entry points for
DRDAs to organise the poor into SHGs.
There could be different entry points for different SHGs depending on the
local situation. The groups that
are formed with thrift and credit as an entry point have demonstrated that the
poor can secure greater access to credit and other support services for
enhancing their income levels.
The process of SHG formation could be divided into phases . While the process of SHG formation
cannot be standardized, a few Guidelines could be useful to the field level
functionaries.
Self Help Groups go through various
stages of evolution
§
Group formation (formation, development and
strengthening of the groups to evolve into self-managed people’s organisation at
grassroots level. In our society,
members are linked by various common bonds like caste, sub-caste, community,
blood relation, place of origin, activity etc. The facilitators must identify these
natural groups which are commonly
called ‘Affinity Groups’.
Identification of such Affinity Group is critical for the progress and
success of the Self Help Group. This would require staying with the people for
some period to facilitate proper understanding and establish rapport with them.
Therefore, while forming Groups, facilitators must recognise the natural bonds and
affiliations existing within the society.
§
Group Stabilization through thrift and credit activity
amongst the members and building their Group Corpus . The group takes up internal loaning to
the members from their Group Corpus . The groups should save regularly and begin
to lend to members. This provides
the members with opportunities to acquire the skills to prioritize scarce
resources, to assess the strength of each member , to time the loans and
schedule of repayments and fix interest rates. The group institutionalizes the need to
introduce sanctions for deviant behaviour, which could include delay in
repayments, arriving late or absenting from meetings etc.
§
Micro credit, the Group Corpus is supplemented
with Revolving Fund sanctioned as cash credit limit by the Banks or the group
could also have access to credit under the Self Help Group-Bank Linkage
Programme of NABARD.
§
Micro enterprise
development, Group
takes up Economic Activity, of their choice for income generation. This phase would include Entrepreneurship
Development as well as Skill Development training of the members of the Group to enable
them to successfully implement the chosen activity. All the Groups, particularly
Groups formed with members who are skill less, asset less, destitute and living
under abject poverty might not
graduate to the stage of
Micro-enterprise with in the time frame indicated in the Guidelines. Such groups
may continue to remain in the Micro-Finance stage for a longer period of time
and may require intensive training and capacity building inputs to enable them
to reach higher levels of income generation.
Formation of Self Help
Groups
Para 3.4.: SHG is group of rural poor who
have volunteered to organise themselves into a group for eradication of poverty
of the members. They agree to save
regularly and convert their savings into a Common Fund known as the Group
corpus. The members of the group
agree to use this common fund and such other funds that they may receive as a
group through a common management.
The group formation will keep in view the following broad guidelines
:
i)
Under the SGSY,
generally a self-help group may consist of 10 to 20 persons. However, in difficult areas like
deserts, hills and areas with scattered and sparse population and in case of
minor irrigation and disabled persons, this number may be from 5-20. The difficult areas have to be
identified by the State Level SGSY Committee and the above relaxation in
membership will be permitted only in such areas.
ii) Generally all members
of the group should belong to families below the poverty line. However, if necessary, a maximum of 20%
and in exceptional cases , where essentially required, upto a maximum of
30% of the members in a group may
be taken from families marginally above
the poverty line
living contiguously with BPL families and if they are acceptable to
the BPL members of
the group. This will help
the families of occupational groups like agricultural labourers, marginal
farmers and artisans marginally above the poverty line, or who may have been
excluded from the BPL list to become members of the Self Help Group. However,the APL members will not be
eligible for the subsidy under the scheme. The group shall not consist of more than
one member from the same family. A
person should not be a member of more than one group. The BPL families must actively
participate in the management and decision making, which should not ordinarily
be entirely in the hands of APL families. Further, APL members of the Self Help
Group shall not become office bearers( Group Leader, Assistant Group Leader or Treasurer )of
the Group.
iii) The group should
devise a code of conduct (Group management norms) to bind itself. This should be in the form of regular
meetings (weekly or fortnightly), functioning in a democratic manner, allowing
free exchange of views, participation by the members in the decision making
process.
iv) The group should be
able to draw up an agenda for each meeting and take up discussions as per the
agenda.
v) The members should
build their corpus through regular savings. The group should be able to collect the
minimum voluntary saving amount from all the members regularly in the group
meetings. The savings so collected
will be the group corpus fund.
vi) The group corpus fund should be
used to advance loans to the members.
The group should develop financial management norms covering the loan
sanction procedure, repayment schedule and interest rates.
vii) The members in the group meetings
should take all the loaning decisions through a participatory decision making
process.
viii) The group should be able to
prioritise the loan applications, fix repayment schedules, fix appropriate rate
of interest for the loans advanced and closely monitor the repayment of the loan
instalments from the loanee.
ix) The group should
operate a group account preferably in their service area bank branch, so as to
deposit the balance amounts left with the groups after disbursing loans to its
members.
x) The group should maintain
simple basic records such as Minutes book, Attendance register, Loan ledger,
General ledger, Cash book, Bank passbook and individual passbooks. The sample proforma for maintenace of
above records by the group is in the
Annexure II for guidance. These could be used with necessary changes/ modifications
wherever required.
Para 3.5: 50% of the groups formed in each
block should be exclusively for the women.
In the case of disabled persons, the groups formed should ideally be
disability-specific wherever possible, however, in case sufficient number of
people for formation of disability-specific groups are not available, a group
may comprise of persons with diverse disabilities or a group may comprise of both disabled and
non-disabled persons below the poverty line.
Para 3.7 : Social mobilization and
community organization is a process oriented approach as different from target
oriented approach. The group formation should not be driven by any targets but
lend itself to a ‘process approach’.
The members of the SHGs should fully internalise the concept of self
help.
Role of
NGOs
Para 3.8: The experience across the country has shown
that group formation and development is not a spontaneous process. A
facilitator working closely with the communities at grassroots level can
play a critical role in the group formation and development. The quality of the groups can be
influenced by the capacity of the facilitator. The facilitator may or may not be
an official. In some cases, NGOs
can not only work as the facilitator but also help in training and capacity
building of facilitators being used by DRDAs. DRDAs may support such sensitive support
mechanisms in the shape of NGOs or Community Based Organisations(CBOs) or
Network of Community coordinators / Animators or a team of dedicated
functionaries of the Government who are fully engaged in the task of initiating
and sustaining the group development process The Community coordinators / Animators
could be from the community or may be from outside the area. They could be
leaders / members of SHGs, or persons having experience or training in the field
of community organisation and social mobilisation. The selection of Facilitator
/ Community Coordinator and their training and capacity building for involvement
in formation , development and
training of SHGs is critical for the success of the Programme. The District SGSY Committee may therefore select suitable
Organisations / Societies /
Individuals as facilitators/Community Coordinators in the Programme based on
their past experience in SHG formation, community organisation or any other
similar work involving participatory approach, communication skill, ability to
stay with the people in the rural
area etc. They would have to stay for a period of 2-3 years with the Group to
ensure continuity as well as to
enable the Groups to mature into a self managed peoples organisation. Facilitators
involved in the process of group formation and development should have a well defined exit policy and by which time community
should either become self reliant or be willing to pay for their services for
further continuance and management of the Group. The emphasis should be to form
groups in geographical clusters to facilitate better training and
management. A community coordinator
/ Animator could take up the responsibility of managing 10-15 SHGs in a
geographical cluster consisting of 4-5 villages with in a radius of 4-5
Kms. The DRDAs may organise
training and exposure programmes for the facilitators and should interact with
them regularly to get feed
back about groups.
The DRDAs may devise a
Memorandum of Understanding
(MoU) or contract to be used for
entering into an agreement with NGOs / CBOs / Community Coordinators / Animators
being involved as facilitators for group formation, development and training.
The MoU should clearly define the role of facilitator in group formation and
development. Further, payment to
the facilitator should be specifically linked to the stage of development of the
group and overall
performance. The DRDA shall regularly monitor the progress of groups through
periodic evaluations. The involvement of facilitators in the programme will be
purely on contractual basis and DRDAs shall take all precautions to ensure that
there are no legal obligation on the Government in future. A detailed instruction on
operationalization of involvement
of facilitators in the process of social mobilisation and group formation is
being issued separately.
Para 3.9: Whether the support machinery (SHG
promotion institutions) is offered by NGOs or DRDA itself, what is critical is
the capacity of the support machinery.
DRDAs will have to play a very crucial role in facilitating development
of the capacity to nurture and strengthen the groups.
Grading of the Self-Help
Groups
Para 3.11. The formation stage may last for
about six months or more depending upon the literacy, awareness levels, socio-
economic background of the people being organised, as well as the capacity of
the facilitator involved in the process of social mobilization and Group
formation. 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. This is done through a grading exercise. The objective of
this exercise is to identify the weaknesses, if any, and help the group to
overcome the same through training and capacity building inputs, so as to
develop into a good group. Grading
exercise thus should help to focus attention on weak groups so that DRDAs can
assist them to overcome weaknesses and graduate into good groups. Grading of the group should also enable
the DRDAs to establish linkages for the good groups with the Banks.
In case the Self Help Group has been in existence prior to the SGSY
under other Programmes and have completed six months from the date of formation
and it is being brought under the SGSY, such groups may be subjected to first
grading immediately, without waiting for another six months.
Para 3.12: The DRDAs will have to play an
effective role in grading exercise.
The capacity of DRDA personnel will have to be enhanced to take this
exercise professionally. 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 independent agency contracted to
undertake the grading exercise. The
cost incurred for conducting grading exercise through an independent agency may
be incurred under the Scheme. It is
desirable that the grading exercise is undertaken by an independent agency as it
will have objectivity and acceptance by financial institutions
etc.
Para 3.13: A number of Government and
Non-Government Organizations, working with SHGs across the country have evolved
very effective strategies for grading the SHGs. The grading criteria should be
consistent with the characteristics that are agreed to be essential for strong,
self-managed and vibrant SHGs. In
other words, clarity on the features to be promoted in an SHG should become the
starting point for any grading exercise.
Following are the various processes
that are involved in the grading:
·
Development of
exhaustive list of characteristics of a good group by DRDA in consultation with
its partners if any, involved in promotion and development of
SHGs.
·
Development of
criteria for grading of the groups with appropriate weightage for various
parameters.
·
Identification
of a suitable agency to undertake the grading exercise.
·
Intensive
training to the investigators who will interact with the members of the group to
assess the group on various parameters.
This training can either be conducted by the agency identified for
grading or by DRDA.
·
Facilitate the
agency to visit the groups for assessing the status of the groups.
·
Obtain SHG-wise
reports with the rating awarded and the reasons.
·
Develop an
appropriate SHG-wise action plan for strengthening the groups identified as
‘weak’ or average.
·
Pursue with
bankers for securing SHG linkage with such SHGs that are rated as ‘good’.
Para 3.14: Grading exercise should not be a
questionnaire-oriented exercise where the members become passive
participants. It should provide an
opportunity for the members to assess their own performance to a participatory
approach and the investigator assumes the role of the facilitator to the
process.
Para 3.15: DRDAs should ensure active participation
of the bankers in the grading exercise.
In this context, NABARD and local banks will have to be involved very
closely right from the development of criteria for grading the groups. The criteria, the strategy and
operational details of the grading exercise should be discussed in the District
SGSY Committee.
Para 3.16: Right from the beginning, it is
necessary that the SHGs should be nurtured carefully. The grading exercise must therefore be
carried out at different stages. To
start with, the objective of the SHG in the first six months is to evolve as a
viable group. Accordingly, the
grading at the end of six months should be with reference to the objectives in
the first stage of the evolution of the Self Help Groups. Grading exercise should be undertaken
every quarter till such time that all the groups obtain good grade.
Capacity building of the Self
Help Groups
Para 3.17 : SHGs that are in existence for about 6 months and have demonstrated
the potential of a viable group enters the third stage, wherein it receives the
Revolving Fund of Rs.25,000 from bank as cash credit facility and also embarks
on further capacity building of its entire team. DRDAs will arrange to provide
the revolving fund to such groups, meeting their share from out of the SGSY Fund. Of this a sum of Rs.10,000 will be given
to the Bank by the DRDA. Banks may
charge interest only on the sum exceeding Rs.10,000.
The subsidy of Rs.10,000
released by DRDA will be adjusted against the loan at the end of cash credit
period on the request of the group.
In case of default in the payment of loan or the group becoming defunct
or dissolution of the group and in case the Bank fails to recover the entire
dues inspite of all possible measure i.e. personal contact, organisation of
joint recovery camps with district administration, legal action etc. the process
of forfeiture of subsidy for
adjustment against dues may be taken up.
After getting the approval of District SGSY Committee the concerned Bank
may adjust the subsidy against the Swarozgaris dues. If the Bank is able to
realise any amount subsequently over and above the amount due to it, the same
may be returned to the DRDA.
The groups shall keep the following
principles in view concerning the management of the Revolving
Fund:
§
The revolving
fund is provided to the groups to augment the group corpus so as to enable more
number of members to access loans and also to facilitate increase in the per
capita loan available to the members.
§
As the
revolving fund become part and parcel of the group corpus, the groups should
follow same norms for utilization as in the case of their own saving
fund.
§
The group
should discuss the credit requirement of the members and advance loans from out
of the corpus (savings + interest + revolving fund) to a few members and fix
repayment schedule and interest rates.
From the amounts recovered from the loanees, new members could be
covered.
§
The revolving
fund imparts credit discipline and financial management skills to the members,
so that they become creditworthy and bankable in the eyes of the
bank.
§
On receipt of
the revolving fund, the group shall utilise the fund in the manner and for
purposes it deems fit. The idea is
that the group should develop the capacity to utilise funds it has received from
outside. The revolving fund can be
used by the group for purchase of raw materials, marketing or infrastructure
support for income generating activities.
It can alternatively be used for lending to individual members for their
own purposes. The members shall
inculcate the habit of prompt and full repayment of the loans taken by them from
the revolving fund.
Para 3.18
: Those
groups that have received fund under DWCRA or any other programme shall not be
eligible to receive the revolving fund under the SGSY. However, there is no bar on such groups
receiving credit and subsidy under group loaning under the SGSY, after they have demonstrated their
functioning as a viable group.
At
the end of six months from the date of receipt of the revolving fund the SHG
will be subjected to another grading test to see if it has been functioning
effectively and is capable of taking up an economic activity through higher
levels of investment. However, for Minor Irrigation Schemes, relaxation of time
for the second grading could be allowed if the group is found creditworthy and
the project is viable. The decision in regard to the relaxation may be taken by
the Block level SGSY Committee. In case the Self Help Group has been in
existence prior to the SGSY under other programmes and has completed one year
from its date of formation and it is being brought under the SGSY, the group may
be subjected to second grading directly to assess its eligibility for economic
activity without subjecting it to first grading. It is important that the Bank should be
satisfied about the grading of the SHG at this stage. Therefore, the choice of the agency
carrying out the grading as well as the criteria should be to the satisfaction
of the bank. In fact, it would be
desirable that Bank functionaries are involved in the grading exercise of groups
functioning in their service area.
At the end of the third stage, the SHG is broadly expected to demonstrate
the following attributes :
1. The per capita loan amount availed by
its members increases gradually
over the years.
2. There is a shift from consumption loans
to production loans.
3. The group is able to clearly
identify its training needs to the members and give value to the training input
received by its members.
4. The members are able to investigate into
their poverty situation and are able to articulate clearly the opportunities for
overcoming their poverty.
5. The group is able to develop a
portfolio of opportunities (investment opportunities) for the members and has a
clear plan of action for meeting the credit requirement of its members.
6. The group
acquires the capacity to undertake participatory monitoring of assets created
from the loans advanced to its members.
7. The group has
implemented some community action programmes and is capable of continuing to do
so independently.
8. The
dependency on outside facilitating agency or matters related to group management
would gradually come down and the groups emerge as self-managed in terms of
managing various aspects of group and financial
management.
9. All members have total clarity on the
activity, including the economics of the activity.
10. The members have
clarity on the responsibility of each and every member and the management of the
common activity.
11. The members
have clear assessment of their training needs.
12.
The members have evolved effective
strategy for participatory monitoring of the common activity.
Taking up of economic
activities
Para 3.19: Once the SHG has demonstrated that
it has successfully passed through the second stage, it is eligible to receive
the assistance for economic activities.
This is in the form of loan and subsidy. There are two ways in which a SHG can
receive this assistance:
1)
Loan-cum-subsidy of SGSY to the individuals in a group, provided the
prospective Swarozgaris in the group are capable of an willing to take up income
generation activities under these sectors.
2)
Loan-cum-subsidy to the group where all the members in the group want to
take up a group activity. Ideally,
under the group loaning, the group should take up single activity but if there
is a necessity, the group could also take up multiple activities under the group
loaning. In either case, loan will
be sanctioned in ;the name of the group and the group stands as guarantee to the
Bank for prompt repayment of loan.
Loan-cum-subsidy to the members of
the Group
Para 3.20: Through a few individuals are
identified as beneficiaries under loan-cum-subsidy, it is essentially the group
that is standing guarantee for the promote repayment of the loan to the
bank. The group also
undertakes responsibility to closely monitor the asset management and income
generation. The group also is
expected to access services from the line departments concerned to enable the
members to derive the expected income from the activities undertaken. Since the groups are constantly
interacting with the banks, their initiatives to secure continuous line of
credit to the Swarozgaris to access multiple dose of loan become critical. In any case, the members of the group
who are assisted under SGSY’s loan-cum-subsidy assistance want to avail the
back-end subsidy nothing should prevent the members to do so. Considering multifarious support
services Swarozgari is receiving by being member of a group it is natural that
the group may like to charge a part of the subsidy provided to the Swarozgaris
as individual contribution to the group corpus. The Swarozgari is expected to repay all
the loan instalments to the banks through the group and the group may keep to
itself part of subsidy component.
In any case, this is an issue that has to be left to the decision of the
group.
Loan-cum-subsidy for the Group
Activity
Para 3.21: Group activities stand a better
chance of success because it is easier to provide back up support and marketing
linkages for group activities. The
SGSY will primarily follow the group approach. The groups should demonstrate minimum
levels of group dynamism, as detailed above, before considering for assistance
with the loan-cum-subsidy for the group under the SGSY. The group is entitled to Subsidy of 50%
of the project cost subject to per capita subsidy of Rs.10,000/- or Rs. 1.25
lakhs, whichever is less. DRDAs should conduct training programmes to
the members and the representatives of
the groups so
that the groups become fully self-managed and evolve into strong self managed groups .The cost of
the group formation and development should be
met from the funds provided under the SGSY.
Considering the experiences of
the NGOs involved in
the development of
SHGs in the country , it is
estimated that an
amount of Rs. 10,000/- per group would be
the investment required over 3 –4 years. Rs.10,000 per group as mentioned above
for formation and development of Self Help Group, is the maximum ceiling,
however, the actual amount may be decided by the District Level SGSY Committee
based on the local prevailing situations.
Payment of the amount to the NGOs/ CBOs/ Community Coordinators
/Animators will be made in four installments in the manner given below
:
a) 20% of the funds at the
beginning when the formation of Self Help Group is commenced by the NGO/ CBOs /
Community Coordinator / Animator.
This money could be utilised during the formation stage. During this period the group should open
an account in the service area Bank Branch and they should be imparted Basic
Orientation training on the concept of Self Help Group, Group dynamics,
maintenance of records and books of accounts, conducting group meetings and
financial transactions.
b) 30% after the group qualifies for
Revolving Fund or get linked to the Bank by way of availing Credit and continue
to work satisfactorily.
c) 40% after the group take up
an economic activity and
d) 10% after the start of economic
activity by the group and adherence
to repayment schedule of the loan sanctioned by the Bank.
B. INDIVIDUAL
SWAROZGARIS
Identification and
selection
Para 3.22: In the case of individual
Swarozgaris, their selection will be as follows: Once the list of villages is
finalized by the Block SGSY Committee every year, the concerned Sarpanches
should be intimated. The individual
Swarozgaris are to be selected in the Gram Sabha. It is possible that the Gram Sabha held
at the Panchayat headquarters may not have the participation of all the BPL
families. Therefore, in order to
afford the maximum participation for the poor, a 3-member team consisting of the
BDO or his representative, the banker and the Sarpanch should visit each of the
habitation in the Panchayat according to a schedule drawn up for this purpose
and duly published. In each
habitation, the team must then ascertain from the BPL families, the persons who
can be covered under athe designated key activity. This process of identification of the
potential Swarozgaris should be done carefully.
Para 3.23: The selection of the Swarozgaris
must be done in an open and transparent manner. The poor should have the confidence that
if they fulfill the requisite conditions they would be able to avail of the
facilities under the programme. It
is possible that the number of such potential Swarozgaris would be more than the
programme available to the bank/BDO.
In such a case, the fact may be made known and the best of the potential
entrepreneurs can be taken up for the final say. While SGSY is not a programme that
targets only the poorest of the poor, it should be the endeavour of the
committee to cover the relatively poorer among the BPL families provided however
they are otherwise eligible.
Para 3.24: In case the Committee is not sure of
sufficient number of potential Swarozgaris being sanctioned the loan, it is open
to the Committee to select a higher number and leave the final selection to the
bank. The effort in this exercise
is two-fold. On the one hand, while
the bank is to be free to chosse the swarozgaris, the effort is also to see that
this is done in a transparent manner.
Para 3.25: After the selection is made, the BDO
shall arrange to have the applications filled by the selected persons. Since most of the potential Swarozgaris
are illiterate and some of them would be very poor, it is necessary that the
proforma prescribed by the banks should be simple, while, however satisfying the
legal requirements. It should also
be in the local language. The DRDAs
should particularly look into the matter and also take steps to familiarize the
BPL families with the loan sanction process and the proforma so that the poor
are not overawed by the process.
Para 3.26: Once the banks have received the
applications, they should sanction the application normally in 15 days and at
any rate not later than one month.
Every year the process of sanction by the banks should normally be over
by july. Further details are given
in Chapter-IV.
Para 3.27: The list of Swarozgaris finally selected
(for the year) should be got printed by the BDO and the copies made available to
the Gram Panchayat for placing it before the next Gram Sabha. This list shall also be made available
to the DRDA, other block officials, bankers and all other concerned
agencies.
Para 3.28 : Safeguards for the
weaker Section :The SGSY will particularly focus on
the vulnerable groups among the rural poor. Accordingly, the SC/STs will account for
a minimum of 50%, women for 40% and disabled for 3% of the total swarozgaris
assisted during the year.
FINANCING THE INVESTMENTS – BANK
CREDIT AND SUBSIDY
Para 4.1: Financial assistance to
Swarozgaris under SGSY comprises of two components viz. loan and subsidy. SGSY is a credit-linked scheme and
credit is the key element. Subsidy
is only a minor and enabling component.
The major part of investment consists of bank credit from financial
institutions comprising commercial banks, cooperative banks and regional rural
banks. This chapter deals with the
various aspects of the flow of credit and subsidy to the Swarozgaris.
Norms of
Lending
Para 4.2: The size of loan for project depends on
the nature of project. The loan
should, however, be a composite loan comprising both fixed and working
capital. SGSY has not investment ceiling other than
the unit cost (i.e. investment requirement) worked out for the project. The loan amount would be equal to the
total project cost including the amount of subsidy admissible to the
Swarozgari. Interest rates for SGSY
loans will be as notified by RBI/NABARD from time to time.
Security Norms: The security norms will be as prescribed
by Reserve Bank of India from time to time.
Sanction of Loans by the Banks
Para 4.3: As indicated in Chapter III &
IV, the BPL families that are best suited fro taking up a particular key
activity are identified each year.
From the date the applications are received in the bank, the bank shall
not take more than fifteen days to sanction the loan. The Bank will thereupon communicate this
list to the Gram Panchayat, which shall place it before the Gram Sabha in its
next meeting. The bank shall also
communicate this list to the BDO as well as the concerned line
department.
Para 4.4: The bank will also consider the Groups
for lending for a given activity.
In such case too, the bank shall communicate the name of the selected
group to the Gram Panchayat and others for action as above.
Para 4.5 : While sanctioning projects, the
Bank Managers should ensure that the unit costs, terms of the loan and repayment
schedule are as indicated in the project profiles for the concerned key
activity. Part-financing and under
financing should not be resorted to under any circumstances. However, where the nature of the
activity is such that the loan is to be released in stages, the disbursal may
be made accordingly. If some cases are
rejected, the reasons for rejection should be clearly recorded on the
application form itself and the relevant application should be returned to the
sponsoring authority immediately for their information and further action as
they deem necessary.
Para 4.6: As soon as the selection is made and the
list communicated to the line departments, the latter will proceed to test
whether the Swarozgari has the necessary skill or not (refer to Chapter
VI).
Para 4.7: As soon as the Swarozgari completes the
basic orientation or the skill-training programme, the bank shall proceed to
disburse the loan and subsidy amount to the Swarozgari. This shall invariably be done
immediately, so that the money is available to him/her for purchase or creation
of the asset. The entire amount
sanctioned shall be disbursed unless the amount is to be disbursed in designated
instalments. The Bank shall
disburse the subsidy amount also as per the guidelines governing the back-ended
subsidy.
Asset creation by
Swarozgaris
Para 4.8: Swarozgaris will be given the full
amount (Loan and Subsidy) and they will have the freedom to procure the asset
themselves. The Swarozgari shall
procure the asset within one month from the date of release by the bank of the
money. He/she shall inform the BDO
and the Bank of the fact of procurement of the asset. The Swarozgari should subsequently
furnish to the bank a receipt of the items purchased. The assets procured should be of
standard quality, and at economic prices.
Both DRDA and banks should ensure through proper monitoring and
verification that that quality assets have been procured.
Para 4.9: In the case of Swarozgaris under the ISB
sector , when a number of sundry items are to be bought, disbursement upto
Rs.10,000 may be made in cash. This
can be done either in one lump sum or in stages depending upon the items to be
purchased. This will give the
Swarozgaris requisite freedom to negotiate and settle the price for the asset
and will also give him the satisfaction that he has purchased goods of his own
choice. In all cases, necessary
documents relating to acquisition of assets should eb obtained by the bank and
also followed up through visits by the field staff of bank within one month of
disbursement.
Para 4.10: In the even the Swarozgari does not
inform the bank of the fact of procurement, the bank shall inform the BDO who
shall enquire into the reasons. If
the non-procurement is due to the negligence of the Swarozgari, the bank, in
consultation with the BDO, shall afford him reasonable opportunity of doing so
after which the bank shall be free to cancel the loan and recover the
money. The Swarozgari will be
liable for civil as well as criminal proceedings that are likely to arise in
such a case. In case of the SHGs,
all the members will be liable.
Para 4.11: On receipt of the news of procurement,
the line department as well as the Bank shall verify the asset and satisfy
themselves of its quality.
Thereafter, the assets should be marked to check the misutilization or
transfer of the assets. This is
also necessary in the eventuality of filling insurance claim and physical
verification of assets etc.
Para 4.12: While providing for a key role to the
Gram Panchayats, SGSY accords certain discretion to bankers in the selection of
Swarozgaris. The bankers are,
therefore, expected to associate themselves in the entire gamut of activities so
that development banking concept is taken to its logical end. The aptitudes of the Swarozgaris and
their endowments should be weighed properly while selecting them for credit
support. The Subsidy-Credit Ratio
proposed by the Ministry from time to time should be taken as a floor ratio
rather than an upper limit for credit sanction. In fact, SGSY guidelines do not provide
for any ceiling for investment. The
investment requirements have to be assessed based on the unit cost and the
Swarozgari’s needs and viability of the scheme.
Multiple Credit and Multiple doses
of Credit
Para 4.13: SGSY will seek to develop close linkages
with credit mechanism in such a manner as would promote multiple credit rather
than a one time credit injection.
Multiple doses of credit would mean assisting a Swarozgari over a period
of time with a second and subsequent dose(s) enabling him/her to access higher
amount of credit. The Swarozgari
should have the confidence that so long as he/she proves her credit worthiness
by way of proper utilization of the asset and prompt repayment, the bank will
stand by him/her and will provide additional credit, whether or not this is
backed by subsidy. As already
indicated, while SGSY is a credit-cum-subsidy programme, the subsidy is only an
enabling element and credit is the key component. The Swarozgaris will be allowed to
stabilize and improve their credit absorption capacity and to increase their
credit intake over the years either for the same activity or a new
activity. The second/ subsequent
dose can be given even during the currency of first/earlier loan provided the
bankers is satisfied about the financial discipline of the first/earlier
dose. Subsidy entitlement for all
doses taken together will not exceed the limit prescribed for that
category.
Further Loan to inadequately
Assisted beneficiaries under IRDP
Para 4.14: As already indicated, assistance under
the SGSY should be on multiple doses and not a one-time activity. This will facilitate gradual improvement
in the income earning capacity of Swarozgaris. Such second and subsequent doses of
credit can be extended to IRDP beneficiaries if they have failed to cross the
poverty line because of no fault of theirs. The second and subsequent loans may be
granted by the same bank that gave the initial loan or any other
bank.
Principles and Procedure for
Disbursement of Assistance
Para 4.15: The funds received by the DRDAs will be
kept in saving bank accounts. The
DRDAs can open these accounts with the principal participating bank branches in
the field. The funds deposited in
the savings bank account will earn interest at the usual rates till the amount
is disbursed to the Swarozgari.
After assistance is disbursed to the Swarozgari, the participating bank
will provide the particulars of the Swarozgari, the project and the amount of
subsidy adjusted in his/her favour for the record of the Block/DRDA. These details should be made available
tin the monthly report on the adjustment of subsidy prepared by the bank and
sent to the Blocks/DRDAs. While
computing the figures of advances and recoveries, the banks are to exclude the
amount of subsidy received so as to reflect the factual position. The banks are to report separately the
amount of recoveries under SGSY.
The accounts of the Blocks/DRDAs with the participating banks should be
reconciled every three months and a bank reconciliation certificate should be
issued by the Chartered Accountant in this regard at the end of the
year.
Subsidy
Para 4.16: Subsidy under SGSY will be uniform
at 30% of the project cost, subject to a maximum of Rs.7500/-. In respect of SC/STs, however, these
will be 50% and Rs.10000/- respectively.
For groups of Swarozgaris (SHGs), the subsidy would be at 50% of the
project cost subject to per capital subsidy of Rs.10,000/- or Rs.1.25 lakhs,
whichever is less. There will be no
monetary limit on subsidy for irrigation projects.
Back-end
Subsidy
Para 4.17: Subsidy will be back-ended. Banks would disburse the full project
cost including subsidy to the Swarozgaris as loan. The benefits of subsidy will also be
available to Swarozgaris who prefer to avail themselves of required working
capital in the form of cash credit.
The operation of subsidy amount by the bank will be as
follows:
a)
The subsidy
admissible to the Swarozgaris under SGSY should be kept in the Subsidy Reserve
Fund Account Swarozgari-wise instead of in term deposit in the name of the
Swarozgari. Banks should apply no
interest on the Subsidy Reserve Fund Account. In view of this, for the purpose of
charging interest on the loan, the subsidy amount should be excluded. The balance lying to the credit of
subsidy Reserve Fund Account will not form part of DTL for the purpose of
SLR/CRR.
b)
In the case of
Working Capital advances also, subsidy may be kept in the Reserve Fund Account
as stated above without any interest being offered. However, the amount standing to the credit of the
account should be withdrawn and credited to a Cash Credit Account of the SGSY
Swarozgaris after a period of 5 years.
Para 4.18: The repayment schedule of loan would be
drawn in such a way that the subsidy kept under Subsidy Reserve Fund would be
sufficient for adjustment towards that last few instalments. Swarozgaris will not be entitled for any
benefit of subsidy, if the loan is fully repaid before a certain fixed period
specified by NABARD depending upon the activity. The availability of the benefit of
subsidy to SWarozgaris would be contingent on their roper utilization of loan as
also its prompt repayment and maintaining the asset in good condition.
Para 4.19: Banks will issue loan passbooks to
Swarozgaris. These pass books
should, inter-alia, contain details such as the date of sanction of loan, amount
of loan sanctioned, subsidy to be adjusted in the final instalment of repayment,
rate of interest, amount due under each instalment, due dates of instalments,
etc. The banks may issue loan books
to Swarozgaris in regional languages.
Banks should ensure that the branch mangers fill in all the columns in
the passbooks, as otherwise the purpose of issuing the passbooks will be
defeated.
Repayment of
Loan
Para 4.20: All SGSY loans are treated as
medium term loans with minimum repayment period of five years. Loan instalments will be fixed as per
the unit cost approved by the NABARD/DLCC and there will be a moratorium on
repayment of loan during the gestation period. Repayment instalments should not be more
than 50 per cent of the incremental net income expected from the project. Number of instalments will be fixed in
accordance with the principal amount, the interest liability and the repayment
period.
Para 4.21: Swarozgaris will not be entitled for any
benefit of subsidy if the loan is fully repaid before a certain fixed period
known as the lock-in period. The
lock-in period for various activities under SGSY can be categorized broadly into
three categories depending on the loan repayment period for 5, 7 and 9
years. The lock-in period
corresponding to these repayment periods would be 3,4 and 5 years
respectively. If the loan is fully
repaid before the currency period, the Swarozgaris will be entitled only to
pro-rata subsidy.
Measures for Affecting Recovery
Para 4.22: Prompt recovery of loans will be
an important aspect of SGSY, not only to ensure a discipline but more
importantly as it reflects the success of the self-employment programme. All concerned must therefore ensure that
the recovery is hundred per cent.
To ensure this, the following measures shall be
undertaken:
Para 4.23: The Block SGSY Committee shall
monitor, every month, the progress of different Swarozgaris. In particular, it should be seen whether
the schemes have been grounded and whether they are giving the Swarozgari the
intended income and also whether
the Swarozgari is repaying the loan.
Prompt action in case of defaults cannot be overemphasized. The bank shall furnish every month the
list of defaulters, and the Block SGSY Committee shall go into the reasons. The line departments and the BDO shall
contact the Swarozgari and take such remedial measures as are necessary. In case of groups, there shall be a
periodic meeting of the SHGs to monitor the performance. In addition, the Gram Panchayats will
also be given the list of defaulting Swarozgaris and requested to take suitable
measures to see that the loans are repaid.
In Panchayats with high default rates, the BDO/DRDA shall organize
recovery camps. It is necessary
that the DRDA keep a close watch over the repayment position in each
Panchayat. In addition, the
District administration shall assist the banks in the recovery through
designated legal processes, including appointment of Special Recovery
Officers. Enactment of the Model
Bill as recommended by the Talwar Committee may be expedited.
Para 4.24: The banks would take all possible
measures, i.e., personal contact, organization of joint recovery camps with
District Administration, legal action, etc. In case, even after this, the bank fails
to recover the entire dues, the process of forfeiture of subsidy for adjustment
against dues will be taken up. For
this purpose, a notice will be issued to the Swarozgaris and he/she will be
provided reasonable opportunity to show cause why his/her subsidy should not be
forfeited. Thereafter, the
concerned banks will place before the District SGSY committee a complete report
on action taken and a proposal for forfeiture and adjustment of subsidy. After getting the approval of the
Committee, the concerned bank will adjust the subsidy (including interest
earned) against the Swarozgari’s dues.
However, if the bank is able to realize any amount from the Swarozgaris
subsequently ovear and above the amount due to it, the amount will be returned
to the DRDA.
Para 4.25: Constant flow of information about every
Swarozgari is necessary to ensure full recovery. Since the banks are also understaffed,
they may engage the services of NGOs or individuals (other than government
servants) as Monitor-cum-recovery facilitators, on a commission basis. A processing cum monitoring fee of 0.5
per cent of the loan amount may be charged to the Swarozgaris to meet this
expenditure.
Para 4.26: In order to ensure recovery discipline,
with effect from 1.1.2001, any Panchayat that registers a recovery of less than
80% under SGSY will not be eligible for consideration under SGSY. Likewise, any Panchayat Samithi
registering a recovery of less than 80% will see the further programme suspended
in the Samiti.
Para 4.27: In order to ensure that
Panchayats/Panchayat Samithis do not meet with such a situation, they shall keep
a close watch over the situation.
The report of the Block SGSY Committee shall be placed by the BDO before
the
Panchayat Samiti. The District SGSY Committee shall also
review the recovery position every month and ensure that steps are taken to
recover the loans.
Incentives and Disincentives for
Recovery Performance
Para 4.28: In order to promote credit
discipline among Swarozgaris and also to bring about a sense of accountability
of the community, the following incentive and disincentives system is
introduced.
a) At the Swarozgari’s level, prompt
repayment will entitle him/her to waiver of the 0.5% processing cum monitoring
fee.
b) At Gram Panchayat level and block
level – a minimum of 80% recovery should be ensured by Panchayats and
block. Those Gram Panchayats and
blocks that do not fulfill the required recovery performance will not be
eligible for any allocation under SGSY in the subsequent year.
Observance of Non-banking
Day
Para 4.29: Banks are required to
observe one day in a week as non-banking day to enable the bank officials to go
to the field and attend to the problems of Swarozgaris.
Risk Fund fro Consumption
Credit
Para 4.30: To meet the small
consumption needs of weaker sections of society, a Risk Fund for Consumption
Credit can be created with (one per cent) (1%) of SGSY fund at District
level. The scheme is intended to
enable Commercial Banks, Cooperative Banks and Regional Rural Banks to provide
consumption loans, not exceeding Rs.2000 per Swarozgaris from weaker sections of
society. “Weaker Section” means all
SGSY Swarozgaris, small and marginal farmers, landless agricultural workers,
rural artisans and other people of very small means like carpenters, barbers,
washermen etc. who form an integral part of the village community. Under this scheme, risk fund assistance
is provided to the banks to the extent of 10% of the total consumption loans
disbursed by them during the year to the above mentioned target groups.
Refinance for SGSY
Loans
Para 4.31: Commercial banks (including
Regional Rural Banks and Cooperative Banks) are eligible to get refinance from
NABARD for the loans disbursed under SGSY, as per their guidelines. The eligibility for refinance is related
to the recovery position of the banks.
In addition, insurance cover to Commercial Banks and Regional Rural Banks
is also available through the Deposit Insurance and Credit Guarantee
Corporation.
Service Area
Approach
Para 4.32: The RBI has introduced Service Area
Approach with effect from 1.4.1989.
It is applicable to rural and semi-urban branches of Commercial and
Regional Rural Banks. Under this
scheme, each Bank branch has a designated service area comprising certain
villages in which it will concentrate its activities for productive
lending. The financing for SGSY in
those villages is, therefore, to be done by the Bank Branches to which they have
been allocated.
Para 4.33: RBI has clarified that if some
RRBs are not in a position to sanction the applications sent to them on account
of constraint of funds, inadequacy of staff, etc., the designated branch of the
Commercial Bank should extend financial assistance in such cases.
INSURANCE
Marking of
Assets
Para 4.34: The assets should be marked to check the
misutilization or transfer of the assets.
This is also necessary in the eventuality of filing insurance claim and
physical verification of assets etc.
Insurance Cover for Various
Assets
Para 4.35: Insurance Cover at present is
available for livestock assets given under IRDP (now SGSY). The General Insurance Corporation has
agreed to provide this cover on the terms and conditions as reflected in the
specimen Master Policy and Long Term Master Policy Agreement signed between the
GIC and the State Government.
(I)
Livestock Insurance
The coverage and premium rates are
to be fixed in accordance with the Mater Policy Agreement.
(ii)
Scope of
Cover
The live stock policy provides
indemnity in the even of death of animal/bird due to accident inclusive of fire,
lightening, riot and strike, flood, cyclone, earthquake, famine or due to any
fortuitous cause of disease contracted or occurring during the period of
insurance subject to certain exclusions.
(iii)
Sum
Insured
The cost of the asset shall be
treated as the sum insured for the settlement of claims. For permanent total disablement (PTD)
claims 75% of the sum insured shall be payable.
(iv)
Claim
Procedure
The claim procedure is simplified
to secure expeditious disposal of claims.
The Bank/DRDA shall forward a death certificate given jointly by any two
of the following within 30 days from the date of
occurrence:
1. Sarpanch/Upsarpanch of
Village;
2. President or any other officer of
the cooperative credit society;
3. Official of Milk Collection Centre
or Government Veterinary Surgeon/Veterinary Assistant;
4. Supervisor/Inspector of Cooperative
Central Bank;
5. Authorised nominee of
DRDA;
6. Secretary of
Panchayat;
7. village
Revenue Officer;
8. Village
Accountant
9. Head Master of Primary
School
(v)
Adjustment of Insurance Claim
Money
The procedure of adjustment of insurance claim of animals will be as
follows;
a) Where the borrower has been
regular in payment of interest/repayment of instalments and is willing to
receive a replacement animal, the claim proceeds may be utilized to purchase a
new animal.
b) Where the Swarozgari was a
willful defaulter and has additional dues to the bank by way of interest, the
claim proceeds would be adjusted to the bank loan liability and the balance may
be paid to the DRDA. However, if
the default was not willful, replacement animal may be provide out of claim
proceeds.
c) Where the Swarozgari
has been regular in payment of loan and interest but is unwilling to take a
replacement animal he may be offered assistance for some other activity and
claim proceeds utilized for financing the same. If he is unwilling to take any other
activity, the claim money may be utilized by giving to the bank an amount equal
to the balance outstanding in the loan account. The DRDA will also get subsidy amount
proportionate to the balance loan outstanding and balance, if any, may be given
to the beneficiary. Here, the
Swarozgari is entitled to share the claim proceeds to the extent of loan repaid
by him because he has utilized the asset properly and has paid the banks dues
until the death of animal and has fulfilled the programmes objective to that
extend.
(vi)
Other facilities
The General Insurance Corporation
of India have informed that if any IRDP (now SGSY) beneficiary has other milch
animals where not loan or subsidy is involved, such milch animals could also be
insured at the concessional rates of premium i.e. 2.25% per annum or 1.69% for
three years. It has also intimated
that IRDP (now SGSY) beneficiaries who have closed their loan account can insure
the animals acquired by them through loan and subsidy at the concessional rates
of premium for a further period of three years after closing the loan account it
animals do not exceed the insurable age limit.
Expenditure on
Premium
The expenditure on the premium is to be shared between the Government,
bank and the beneficiary in the following proportions:
|
|
When the banks do not
participate |
When the bank agrees to
participate |
|
Swarozgaris |
1.25% |
1.00% |
|
Government
|
1.00% |
0.75% |
|
Bank |
Nil |
0.50% |
The expenditure to be borne by the Government will be shared between the
State and the Centre in the ratio of 75:25. It should be met out of SGSY funds but
should not be included in the individual subsidy ceiling applicable to the
beneficiary.
Group Life Insurance
Scheme
Para 4.36: A group life insurance scheme for
Swarozgaris aged not less than 18 years and not more than 60 years was
introduced w. e. f. 1.4.1988. This
scheme is operative from the date on which the asset is disbursed to the
Swarozgari till the Swarozgari completes the age of 60 years or a period of 5
years from the date of commencement of the cover, whichever is earlier. A sum of Rs.5000 shall become payable by
LIC to the nominee of the deceased in case of natural death. In the event of death due to accident a
sum of Rs.10,000 shall become payable by LIC.
SKILL UPGRADATION
Para 5.1: It has been well recognized that
for success of self-employment endeavours and also for their sustainability, the
required skill to successfully run the enterprise is a pre-requisite. SGSY proposes a number of measures for
upgrading the capacity of Swarozgaris both in individual as well as group
oriented activities.
Para 5.2: While developing the project
profiles for the identified key activities, the District SGSY Committee should
in consultation with concerned technical personnel determine the Minimum Skill
Requirement (MSR), in terms of both the technical and managerial skills. Once the person or group of persons has
been identified for assistance, their training needs also should be ascertained
with reference to MSR. The
assessment regarding technical skills may be made by the line departments while
that of the managerial skills may be made by the banker while scrutinizing the
loan application. Such an exercise
along with the Swarozgaris will help tin identifying those who have the MSR and
therefore need only a basic orientation and those who need skill training. Keeping this in mind two types of
training are contemplated under SGSY.
Basic Orientation
Programme
Para 5.3: Where the Swarozgari possesses the
required skills, he/she may be put through a basic orientation programme after
the loan is sanctioned and before it is disbursed. This mandatory programme may be
organized at the block headquarters, not far from the place of residence. This basic orientation programme will
seek to familiarize the Swarozgaris with SGSY and its objectives, the
responsibilities of the Swarozgari, as well as the behavioural aspects. It will also seek to infuse confidence
in the Swarozgari by drawing his/her attention to the success stories in the
given key or allied activity, as well as alert him/her to the possible
risks. This programme will include
elements of book keeping, knowledge of market, identification and appraisal,
acquaintance with produce costing and product pricing, familiarization with
project financing by banks as well as some basic skills in the key activity
identified. It will of a very short
duration, and should not normally be more than two days. BDOs, Bankers and line departments can
act as resource persons for this training.
Training expenses like training material, honorarium to resource persons,
travel and food expenses of Swarozgaris can be met by DRDA from SGSY Training
Fund. No stipend will be
admissible.
Skill Development
Training
Para 5.4: For the identified activities,
Swarozgaris who need additional skill development/upgradation of skills
appropriate training may be identified and suitable training programmes
organized. Government institutions
like engineering colleges, it is,
Polytechnics, Universities and NGOs may be approached to imparting
training. The objective of this
training is to ensure that the Swarozgaris posses the Minimum Skill Requirement
(MSR). Swarozgaris will be eligible
for assistance only when they possesses MSR and loans will be disbursed only
when they have satisfactorily completed skill training.
Para 5.5: For this training, Swarozgaris will
be entitled for financial assistance if they require to undergo training for
more than a week. The rate of
assistance may be fixed locally.
The bank will give this money to the Swarozgaris as a soft loan.
Identification of training
institutions
5.6 Data on the available training
Infrastructure should be collected so as to make an optimal use of the existing
Infrastructure facilities at the District as well as the block levels. The facilities may include institutions
such as it is, Polytechnics, Krishi Vigyan Kendras, Khadi and Village Industries
Boards, State Institutes of Rural
Development, Extension Training Centres, reputed voluntary organizations and any
departmental facilities available in that area. Private institutions shall not normally
be used for training, unless they are well known and have excellent
infrastructural facilities that are otherwise not available. There is however no bar to utilize the
private sector industrial units for appropriate training. The selected training institutions
should have adequate facilities in terms of faculty, buildings, etc. The DRDA will be entitled to meet the
expenses, incurred by the training institution for conduct of the training
programme, from out of the SGSY- Training fund, but such expenses should not
exceed Rs.15 per trainee per day.
SGSY Training
Fund
Para 5.7: Upto 10% of SGSY funds will be set
aside as training fund and will ;be utilized to provide both orientation and
training programmes to the Swarozgaris, as indicated above. A separate Head of Account should be
opened for this purpose.
Para 5.8 : The DRDA will be entitled to meet
the expenses, incurred by the training institution for both Basic Orientation
and Skill Development Training from out of the SGSY Fund. The Basic Orientation
Training may include topics on
concept of Self Help, group dynamics, conflict resolution, conduct of
group meetings, maintenance of records, awareness about social and family
welfare programmes etc. The
training for skill development may include skill upgradation through exposure to
latest tools and technology, value addition and diversification of products,
entrepreneur development, marketing skills, packaging, labeling etc.
The DRDA will be
entitled to meet the expenses, incurred by the training institution for both
Basic Orientation and Skill Development Training from out of the SGSY Fund in
the following manner:
i) The Institutional training cost
may be fixed at Rs.15/- per day per trainee only for imparting training, if no
boarding and lodging facility is provided to the participants, and at Rs.35/-
per day per trainee in case the Institution provides boarding and lodging also
with training.
ii) If the Institution does not
provide boarding and lodging then the participants may be paid Rs.25/- per
trainee day to meet the cost of boarding and lodging.
iii) Swarozgaris may be allowed one
time to and fro travelling cost from their place of residence to the Training
Institute.
Further, DRDAs may incur an expenditure of Rs.200/ per trainee per month
for payment of honorarium to master craftsman engaged for imparting skill
development training to Swarozgaris identified and selected for economic
activity and Rs.100/- per month per trainee, as allowance for raw materials
required for the training.
However, the total expenditure on Basic Orientation and skill development
training will not exceed
Rs.5,000 per trainee.
Duration of Skill development training will be decided by the State
Government depending upon the activities and in order to ensure uniformity of
the duration of training for all the Districts.
TECHNOLOGY
Para 6.1: The effort under Swarnjayanti Gram
Swarozgar Yojana is to ensure the development of sustainable micro
enterprises. The self-employment
referred under SGSY is moving away from provision of some additional income
generation to a well-defined goal in terms of output, incomes and the time
within which the assisted family comes above the poverty line. For any successful enterprise,
appropriate technology of paramount importance.
The issues
involved in technology management are primarily as
follows:
(a) what technologies to be
identified.
(b) Who will be responsible for
technology management, including issues of technology transfer, technology
upgradation and most importantly, monitoring of the technology absorption.
Para 6.2: The technology identified for each
key activity should be such that it can be managed comfortably by the Swarozgari
and at the same time leads to a quality products, either in terms of goods /
services. More importantly, it
should be something that has been tested on the field. For, it is always possible to have an
exhaustive list of technologies fit for rural areas but these may or may not
have been proven commercially. Care
should be taken to avoid giving unproven technologies to the rural poor, since
they do not have the capacity to suffer losses arising out of
experimentation. It is not as if
technology has to be introduced afresh into each and every activity. Any given activity there is a certain
level of technology. It is possible
that introduction of certain technology may substantially alter the economics of
working, in which case such new technology needs to be introduced. There could be in other cases where the
technology can be upgraded to produce better economic results. In any case the technology introduction/
upgradation should be such as to suit the needs of rural poor for the given key
activity.
Para 6.3: The process of technology
identification is closely inter-linked with the identification of key activity
itself. The technology itself
should be such that support services and infrastructure are adequately
available. The project profiles of
the key activities should clearly state the present status of technology,
feasibility and potential for technology upgradation. Technology options may be explored in
the area of:
Para 6.4: Under SGSY, it is expected that the
assisted family would come out of poverty line in three years. It is therefore, necessary that during
this period the swarozgaris be
closely monitored. In the earlier
self-employment programmes the lack of such nurturing has been acutely
felt. Typically in a block about
300-600 people would be assisted in one year. In other words about 900-1800 families
need to be nurtured at any point of time.
Since SGSY focuses on the group approach, the number of groups would not
be far too many. Besides the
swarozgaris either individually or in groups would be distributed over the four
or five key activities in the block.
For each key activity it is necessary to have an institution capable of
transmitting technology ensuring skill upgradation and monitoring the
performance in terms of the quality of output as well as the recovery. The choice of such agency can vary
depending on local situation. The
can be the line departments themselves or any of the technical institutions such
as Engineering Colleges, Polytechnics, it is, having competence in the relevant
field or an NGO having the necessary competence. This can even be a research institution,
a Krishi Vigyan Kendra or even a major private sector unit. All the institutions that are available
in a block/district should be considered and the best available option
exercised. In this regard, there
are a number of community polytechnics (442) in the country with the avowed
objective of promoting employment in the rural areas. Each of these community polytechnics has
five extension centres. Similarly,
there are 14 technology resource centres established by CAPART. The National Research & Development
Corporation (NRDC) also has 52 rural technology demonstration cum training
centres. In addition under TRYSEM
itself a number of exclusive training centres have been established. Besides, the KVIC has also a number of
training as well as research institutions.
In the field of agriculture, a large number of Krishi Vigyan Kendra,
Farmers Training Centres and regional centres of Agriculture Universities are
available. Thus, a considerable
knowledge already exists in the districts.
The DRDAs must therefore strive to gather the existing knowledge and
channelise this only into identification of key activities but also into
immediate transfer of technical knowledge to entrepreneurs, so long as its
commercial viability is not in question.
Para 6.5: the manner of communicating the technology, either in terms of introduction or upgradation would be important and this should be done in such a manner that the swarozgaris could fully understand the same. Since skill upgradation is already provided for the costs incurred in respect of technology management can be incurred from the SGSY training fund. Any assistance to be provided to an institution identified for transfer of technology should only be nominal and should not be such that it supports the institution as such. The expenditure is meant essentially for swarozgaris.
MARKETING
SUPPORT
Para 7.1: For any goods or services that are
produced, existence of a suitable market is essential. Traditionally, the self-employment
programmes concentrated on the inputs rather than the outputs and their
marketing. It was not uncommon to
find production strategies in place overlooking the market aspects. One often finds that the recommendation
of an activity is not preceded by the much needed market survey. There is a false notion that market
surveys are not required in case of the self-employment opportunities for the
rural poor. In fact, it is as
critical, if not more, for the poor.
For, he/she cannot sustain the loss arising out of a lack of market even
for short period. It is, therefore,
necessary that the project profile of every key activity identify the market
availability. The forecast of the
incomes to be earned by the Swarozgari must take into account this factor and
forecast the incomes only on the basis of an assured market. This would be a critical factor in the
choice of the key activity itself.
Para 7.2: It is possible that this might
appear to be formidable proposition and that the field functionaries might feel
that they are unequal to the task.
Happily, this is not so.
While to most of us, market mechanism may appear unintelligible and a
complex task, in reality it means checking out what sells and what does
not. Goods and services are traded
every day in all parts of the country.
What is needed is to see what sells in the local markets. A study conducted some years ago for the
Ministry of Rural Development indicated that the rural Haats (Markets) play a
significant role. An analysis of
these markets therefore reveals the opportunities. Secondly, an analysis of the daily
requirements, either for personal use or in agriculture and exploring ways of
meeting the demand locally ;can lead to some useful results. At times, the product concerned might
require some promotional activity in order to raise demand.
Para 7.3: A study of the local markets might
reveal that what the villagers purchase can as well be produced locally. The opportunities must be fully
explored. At the same time, it must
be remembered that it is neither feasible nor desirable to produce all goods in
all places. The choice of activity
therefore must be governed by the possibilities that exist on account of the
resources of an area, the available skills and the market. It is always possible to develop the
skills or even the markets but this must be weighed against the fact that it
would require time and effort.
Para 7.4: Next in the importance are the
markets in urban areas. There is an
increasing trend towards urbanization in the country alongwith a change of
consumer tastes and demands. The
goods in demand could be in the primary sector or otherwise. An analysis of these urban markets would
reveal the consumer preferences and the potential for the rural
entrepreneurs. There can be a good
potential for value added items, such as cleaned and packaged food items, such
as cleaned and packaged food items, processed fruit and vegetables etc. The emerging urban markets can be a good
area for developing clientele for the rural products. Provision of marketing infrastructure in
these areas can go a long way in enabling the rural poor to market their goods
and at the same time building an identity for the products. The Self Help Groups can be encouraged
to try out these markets on their own so that they slowly develop marketing
skills. They can also start
marketing the goods of the individual Swarozgaris. Infrastructure fund can be use for
strengthening marketing infrastructure and related activities.
Para 7.5: The marketing of goods
outside the districts requires an intermediary agency. This can be in the governmental,
non-governmental or private sector.
The one aspect that requires to be taken care of is the stability of the
agency, their own competence and their capacity to ensure that the rural
producer is getting his/her fair share of the profits. Care should be taken to see that only
such agencies that do not exploit the rural producers and are well established
in the business are chosen for the purpose. These agencies may market the products
in the national or international markets.
Para 7.6: Some State Governments have
established District Supply and Marketing Societies (DSMS) to provide non-credit
inputs like procurement or purchase of raw-material and also for sale of
products. Wherever these societies
are doing good work, they can be suitably strengthened. Similarly, in States such as Orissa and
Kerala, there are marketing societies at the State level. Their capacity and product range can be
suitably expanded. However, it is
not always necessary to establish new agencies. It should be a felt need after a careful
analysis of the existing infrastructure, and should be part of a strategy for
promotion of marketing support to products under SGSY.
Para 7.7: Organizations like Handicrafts Boards
and Handloom corporations and also KVIC/KVIB can play a prominent role in
promotion of SGSY. The marketing
outlets of KVIC/KVIB must be made use of for SGSY products. Keeping the market trends in view,
linkages with apex bodies can ensure a stable market at remunerative
prices. Such a link will also
result in quality improvements while reducing the market risks to the poor. Bankers can also encourage such
initiates that liberal credit delivery since the loan recovery can be built into
the project. There are several NGO
and other independent institutions to market products from rural
artisans/craftsmen across the country.
DRDAs should strive to develop linkages with such groups.
Para 7.8: A few States have organized Melas
to give publicity to the range of products produced by the Swarozgaris. Such efforts need further encouragement
so those SGSY Swarozgaris will be integrated with the regional markets. Organizing of Exhibitions periodically
in urban centres will offer better price to the goods of SGSY Swarozgaris. This also serves as forum for
sensitizing the SGSY group to the demand patterns of the market. The State level organizations and boards
have to develop an organic link professional bodies can guide the poor in supply
of designs and in quality assurance.
Attempts to establish State emporia for display and sales of SGSY
Products in major urban cities need to be given a fair trial.
Para 7.9: Quality of products is vital
not only for the development of entrepreneurs but also for the nation as a
whole. It must be the
responsibility of the marketing agencies to ensure that the Swarnjayanti are
trained in quality control. The
goods marketed must conform to a minimum and uniform quality so as to be able to
develop a brand image. This is
important even in respect of the goods that are produced for local
consumption. The DRDAs must
organize periodic meets of the Swarozgaris and ensure that they are given the
necessary guidance in quality control.
There must also be a system of the experts in the relevant fields
visiting the work places and guiding the Swarozgaris.
IMPLEMENTATION
Para 8.1: A close involvement of different
agencies is essential for the success of Swarnjayanti Gram Swarozgar Yojana
(SGSY) SGSY is implemented by
District Rural Development Agencies (DRDAs) through the Panchayati Samithis and,
with the active involvement of other Panchayati Raj Institutions, the banks, the
line departments and the NGOs.
Para 8.2: The DRDAs are expected to
co-ordinate the implementation of the programme. In particular their role will be
critical in organization of the Self Help Groups and their capacity building as
well as in terms of coordination with the technical institutions for technology
and training, the banks for planning and credit mobilization, the line
departments for infrastructure and technical follow up as well as in
coordinating the marketing activities.
Para 8.3: The Gram Panchayats will play a
crucial role in SGSY. The Gram
Sabha will first approve the list of BPL families. Besides, at the beginning of each year,
the potential Swarozgaris for taking up the designated key activities would be
identified in each habitation by a 3-member committee including the
Sarpanch. The list of Swarozgaris
who are sanctioned the loan by the banks would be placed before the Gram
Sabha. The Gram Panchayat would
also take steps to provide from its funds under JGSY or any other programme, the
common infrastructure necessary for the key activities. The Gram Panchayat would actively
monitor the performance of the Swarozgaris and in particular whether they are
repaying the loan regularly.
Para 8.4: The Panchayat Samiti (Block Level)
will approve the key activities that are identified for the blocks before the
list is sent to the BDO through the District Level Technical Group. The Panchayat Samiti would review every
month the reports sent by Block SGSY Committee. In particular, the Panchayat Samiti
would review the recovery performance.
The Zilla Parishad will be reviewing the performance under the SGSY in
its general meetings.
Para 8.5: The Bankers play a very critical
role in the implementation of Swarnjayanti Gram Swarozgar Yojana. SGSY is a credit-cum-subsidy
programme. Credit is the key
component and subsidy is only a minor and enabling component. SGSY envisages the close association of
bankers at all stages of the programme implementation, right from the
identification of key activities, clusters, self help groups, identification of
individual Swarozgaris as well as planning for all the elements of the key
activities. The bank has the final
say in the selection of Swarozgaris.
An elaborate mechanism has been put in place to ensure post-credit
monitoring as well as for loan recovery.
Para 8.6: The line departments have an
important role to play in the entire exercise, for they will be responsible for
implementation and monitoring of respective sectoral activities. SGSY would need a very close
collaboration between the implementing agencies and the line departments. This collaboration starts with the
identification of key activities and preparation of project reports. The line departments will be responsible
for planning and creation of the infrastructure required to make the key
activity successful. In addition,
once the bank has sanctioned the loan, the line departments must ensure that all
facilities including technical guidance are provided to the Swarozgaris. The line departments may also verify
whether the Swarozgaris have the necessary skill requirement and take steps to
train them. The line departments
should also satisfy themselves about the quality of training that is being
imparted. They should assist the
DRDAs in ensuring that the Swarozgaris are able to derive the expected levels of
income. The line departments will
treat promotion of self-employment in their sector as much their responsibility
as that of DRDA/Panchayati Raj Institutions / Banks and it should be an integral
part of their day-to-day functioning.
Para 8.7: The NGOs have also an important
role to play. They can be used in
the formation and nurturing of the SHGs as well as in the monitoring of the
progress of the Swarozgaris. Where
feasible, their services can also be utilized for provision of technology
support, quality control of the products.
What the NGOs can do would depend on the nature of the NGO and its
competence. Care must therefore be
taken to ensure that only those NGOs are utilized in the programme as are
capable of supporting the programme.
At the same time, every effort must be made to ensure that all resources
available in the district are made use of.
Para 8.8: Similarly, care must be taken to
ensure the participation of the technical resource available in the district, in
the form of technical institutions.
These technical institutions may not always have ready solutions to the
problems but if they are properly oriented, they can come up with solutions to
different problems. If they are
made part of an ongoing process, their own capacity ;will be built up, with
long-term benefits. The District
SGSY Committee must pay particular attention to this aspect.
Co-ordination
Mechanism
Para 8.9: A close coordination between
different agencies responsible for implementation of SGSY is critical for the
success of the programme. The
programme should be treated as a joint programme with all agencies being
conscious of their respective roles.
In order to ensure the coordination the following committees are
constituted under SGSY.
Block Level SGSY
Committee
Para 8.10: There shall be a Block Level SGSY
Committee in each block. Its
composition will be as follows:
1.
Project Director – DRDA
-
Chairman
2.
Project Officer (Self-employment)
-
Member
3. Branch
Managers of all implementing bank
-
Members
branches in Block
4. Block Level
/ Sub-Division Level officers of
-
Members
the concerned line departments
5. NGO
representative (one)
-
Member
6. Block
Development Officer
-
Convenor
The meetings of this Committee shall be convened by the BDO. The Lead Bank Officer, DDM, NABARD and
the Lead District Officer, RBI may attend the meetings as special invitees. They may attend as many meetings as
possible in each block, so that they are familiar with the ground level problems
and can help in sorting them out.
The main functions of Block Level SGSY Committee
are:
a)
Selection of
key activities at the beginning of the programme;
b)
Selection of
villages and number of Swarozgaris to be covered each
year;
c)
Distribution of
the work among the bank branches;
d)
Monitoring of
the performance by different agencies;
e)
Co-ordination
issues in respect of infrastructure, credit, technology and
marketing;
f)
Review of
incomes being earned by Swarozgaris;
g)
Review of the
recovery performance; fixing dates for recovery camps etc.
h)
Conduct of
sample checks for verification of assets;
i)
Drawing up of
the monthly report (the monthly report may be drawn by BDO based on information
furnished by the banks. A review of
the report in the monthly meeting will help the block level committee in
identifying different problems. It
is, however, not necessary to hold up the preparation of the report in the
absence of this monthly meeting);
j)
Review of
progress of Swarozgaris in crossing the poverty line.
The block level committee shall meet between 5th &
10th of every month. It
must be ensured that meetings are held regularly. Branch Manager of financing institutions
should report in a pre-determined format about the SGSY financing in the Block
and the same should be compiled by BDO.
The proceedings of the Block Level SGSY Committee shall be sent to
Panchayat Samiti for information and necessary action, if any. A copy should also be sent to the PD,
DRDA and to the Lead Bank Officer.
District
Level
Para 8.11: At the District Level, there shall
be a District SGSY Committee under the Chairmanship of the District Collector /
Chief Executive Officer. This
Committee meets every month to review the progress of SGSY and suggest
corrective action wherever necessary.
The composition of District Level SGSY Committee will be as
under:
1. District Collector/
Chief Executive Officer
-
Chairman
2. DDM of NABARD
-
Member
3. LDO of RBI
-
Member
4. District level
Coordinators of the implementing banks -
Member
5. Concerned Heads of
district level line departments -
Member
6. General Manager,
DIC
-
Member
7. District KVIB
Officer
-
Member
8. Project Director,
DRDA
-
Member
9. 2-3 NGO representatives
-
Member
10.
Lead Bank Officer
-
Convenor
The functions of the
District SGSY Committee include:
i)
Review of SGSY
Plan
ii)
Monitoring and
review of the overall progress in physical and financial
terms
iii)
Sorting out
inter-agency differences and to prepare items for consideration of State Level
Committee
iv)
Assessing
training needs of Swarozgaris and also to review the arrangements for training
including identification of appropriate institutions and
also
v)
Monitor the
recovery position bank-wise and block-wise so as to initiate corrective measures
where necessary.
State
Level
Para 8.12: The Department of Rural
Development or any other Department to which the subject of Rural Development
has been allocated should be responsible for planning, implementation, monitoring and
evaluation of the programme at the State Level. A State level SGSY Committee has been
provided to oversee the functioning and the performance under SGSY. Its composition is as
under:
1.
Chief Secretary/Development Commissioner
-
Chairman
2.
Secretary, D/o Institutional Finance
-
Member
3.
Secretary, D/o Planning
-
Member
4.
Secretary, In-charge of Women’s Development
-
Member
5.
Concerned Heads
of the Line Departments as
-
Member
and when
required
6.
Secretary In-charge of Welfare of SC/STs
-
Member
7. Representative of
NABARD (local Head of
-
Member
Regional
Office)
8.
Representative of RBI
-
Member
9. Representatives
of concerned implementing
-
Member
Banks at State
Headquarters
10.
A representative of the Government of India, -
Member
not below the rank of Deputy Secretary
11.
Director, SIRD
-
Member
12.
Convenor, SLBC
-
Member
13.
Secretary, In-charge of Rural Development
-
Member
Secretary
Functions of the State Level SGSY
Committee are as under:
i)
To provide
leadership and guidance in the planning, implementation and monitoring of the
programme.
ii)
To review the
district-wise progress under SGSY and suggest remedial
actions.
iii)
To monitor and
evaluate the implementation of the programme with reference to the objectives of
the programme.
iv)
To review the
involvement of reputed NGOs in the SGSY and provide directions if
necessary.
v)
To provide a
forum for a meaningful dialogue between the policy makers at the State level and
the implementers at the field as well as the bankers.
vi)
To discuss any
other issue relating to SGSY.
Central
Level
Para 8.13: The Department of Rural
Development in the Ministry of Rural Development, Government of India, New Delhi
has the overall responsibility of policy formulation, monitoring and evaluation
of the programme and for release of central share of funds. A Central Level Coordination Committee
(CLCC) has been constituted as under to assist the Department. The CLCC will meet once in six
months.
|
1 |
Secretary, Ministry of Rural
Development |
Chairman |
|
2 |
Deputy Governor, Reserve Bank
of India |
Member |
|
3 |
Secretary, Department of
Agriculture & Cooperation |
Member |
|
4 |
Secretary, Department of
Expenditure |
Member |
|
5 |
Special Secretary, Banking
Division, Ministry of Finance |
Member |
|
6 |
Secretary, Department of
Women and Child Development |
Member |
|
7 |
Secretary, Department of
Small Scale & Agro-related Industries |
Member |
|
8 |
Secretary, Department of
Science & Technology |
Member |
|
9 |
Secretary, Ministry of
Welfare |
Member |
|
10 |
Managing Director,
NABARD |
Member |
|
11 |
Adviser (Rural Development),
Planning Commission |
Member |
|
12 |
Additional Secretary &
FA, Ministry of Rural Development |
Member |
|
13 |
State Secretaries of Rural
Development |
Member |
|
14 |
Chairman-cum-Managing
Director of all commercial sector banks |
Member |
|
15 |
Director General
CAPART |
Member |
|
16 |
Director General,
NIRD |
Member |
|
17 |
Chairman, Indian Banks
Association |
Member |
|
18 |
Joint Secretary (SGSY) –
Department of Rural Development |
Member
Secretary |
Other officials/non-officials may be invited to the meetings of this
Committee if their presence is felt necessary.
The functions of CLCC are as
under:
(i)
To review and
ensure effective implementation of the programmes.
(ii)
To review
linkages for support services for SGSY.
(iii)
To review
progress of these programmes in physical, financial and qualitative terms
including credit assistance.
(iv)
To consider
concurrent evaluation reports.
(v)
To provide a
forum for a continuous dialogue with the State Governments and
Bankers.
(vi)
To review the
credit arrangements and recommend changes and improvements as and when
necessary.
Setting up of SGSY Cells in
Banks
Para 8.14: For the purpose of effective
monitoring of the implementation of SGSY, the banks may set up SGSY cells in
their controlling offices such as Zonal/Regional Offices. These cells should make periodical
review of the flow of credit to SGSY Swarozgaris, ensure the implementation of
the guidelines issued by Reserve Bank of India and the Government of India,
collect data from the branches and make available consolidated data no to the
Head Office of the Bank.
FUNDING PATTERN AND FINANCIAL
PROCEDURE
Criteria for Allocation of Funds to
the States
Para 9.1: Swarnjayanti Gram Swarozgar Yojana
is a Centrally Sponsored Scheme and the financing of the programme will be
shared between the Centre and the
States in the ratio of 75:25. The
Central allocation earmarked for the States will be distributed in relation to
the incidence of poverty in the States.
However, additional parameters like absorption capacity (based on past
trend in utilization of SGSY funds) and special requirement will also be taken
into consideration during the course of the year. 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.
Devolution to the Blocks may be decided by the Governing Body of the DRDA
based on level of poverty and other local factors. Re-allocation may be made by the DRDA
within a district. This can be made
during January for the remained of the financial year.
Eligible Items of
Expenditure
Para 9.2: Each DRDA may incur expenditure on
the following items from the funds provided under the
SGSY:
i)
Training
ii)
Infrastructure
iii)
Revolving Fund to SHGs
iv)
Subsidy for economic activities
The SGSY is a process oriented scheme, therefore, formation of the Self
Help Group (SHG) passes through different stages and the timeframe for each
stage may vary from District to District and State to State depending on spatial
distribution and capacity of facilitators, literacy, awareness and
socio-economic status of the people being organized etc. The States/UTs may be in different
stages of the implementation of the Scheme. Therefore, the fund required for
training and capacity building including basic orientation, skill development,
entrepreneurship development, revolving fund to SHGs and subsidy for economic
activity may vary from State to State.
Therefore, DRDAs may prioritize the expenditure on different components
i. E. training and capacity building, revolving fund and subsidy for economic
activity, based on the local requirements and different stages of group
formation;n.
The DRDAs
may, however, ensure that there is a balance between the expenditure proposed
for different items. The
prioritization may ;be done at the commencement of the year and the expenditure
monitored on this basis. However,
the expenditure on infrastructure will not exceed 20% of the total annual
allocation (25% in case of NE States).
Asset creation for the Swarozgaris is one of the core objective of the
SGSY. The prioritization of
expenditure on the various items should therefore be done in such a manner that
the amounts earmarked towards subsidy for asset creation are sufficient to meet
the requirements not only of the SHGs which are ready for economic activities
but also of the individual swarozgaris for whom viable projects are to be
identified.
An amount upto Rs.5
lakhs annually may be spent from the funds available under the scheme on
management of professional input related to marketing research, value addition
or product diversification or any other input which would facilitate marketing
of the produce ultimately resulting in additional income to the
Swarozgaris.
Release of
Funds
Para 9.3: The Centre releases funds in two
instalments. In the case of cold
snow bound District viz. Lahul and Spiti, Leh and Kargil where the working
period is limited to a few months, the entire Central share of assistance can be
released in one instalment. These
releases should be immediately followed wiath the releases by the States.
Release Procedure for Central Share
of SGSY Funds
A.
NORMAL
AREAS
(i)
Release of First
Instalment
The release of first instalment of
SGSY subsidy amount can be made without any formal request if the second
instalment in the previous year had been released without any condition. If this instalment was not released at
all or was released with some conditions, formal requests for release of first
instalment are required from the DRDAs after the conditions have been
fulfilled/reasons for non-release of the second instalment have been met.
The release of the first instalment
should ordinarily be completed by the end of the second month of the financial
year.
(ii)
Release of Second
Instalment
The second instalment of Central
funds is released on the request of the DRDAs in the prescribed proforma on
fulfillment of the following conditions:
1.
Budget
provision for the current year may be indicated by the State Governments. The Central release will not exceed it
proportionately.
2.
The State
Government should have released its contribution during the previous year. Deficiency in release of its share will
be deducted from the second instalment.
3.
The opening
balance of the DRDAs should not exceed 15% (20% for the year 1999-2000) of the
allocation of the year in which funds are being released. In case, the opening balance exceeds
this limit, the Central share of the amount by which it exceeds this limit will
be deducted at the time of release of second instalment.
4.
Available funds
including carry forward funds should have been utilized at least to
60%.
5.
Audit reports,
utilization certificates for the previous year should be
furnished.
6.
Annual Plan
should have been approved by the Governing Body of the
DRDA.
7.
Any other terms
and conditions imposed at the time of the last release should have been
met.
8.
The States
should ideally get the release of second instalment latest by the end of
December. The quantum of second
instalment releases while seeking the second instalment will be made dependent
on the time of reporting of utilization.
Depending on the receipt of complete proposal for second instalment, the
quantum will be governed as follows:
Proposals
Received
by the end of December
:
50% of allocated funds
by the end of January
:
40% of allocated funds
by the end of February
:
30% of allocated funds
In March
:
20% of allocated funds
B.
COLD DESERT
DISTRICTS
Funds will be released in one
instalment but the following conditions should be satisfied before next
release:
(a)
Conditions laid
down at the time of release of funds during the previous year should have been
satisfied.
(b)
Budget
provisions for the current year should have been indicated and Central releases
should not exceed it.
(c)
State
Government should have released its share during the previous year. Deficiency in the release of the State
contribution would be deducted from the current year’s release.
(d)
Carry forward
balances should not exceed 15% (20% for the year 1999-2000) of the last year’s
allocation. Excess carry forward
would be deducted from the current year’s release.
(e)
75 percent
utilization of available funds including carry forward
funds.
(f)
Annual Plan
should have been approved by the Governing Body of the
DRDA.
(g)
Audit Report,
Utilization Certificate and Bank Reconciliation Certificate for the previous
year should have been received.
MONITORING
Para 10.1: For ensuring the Swarozgari crosses the
poverty line, it is not sufficient to provide him assets through subsidy and
loan. The progress of management of
his assets for generation of incremental income has to be continuously followed
up, monitored and evaluated.
Para 10.2: The follow-up on the projects
given to the Swarozgari should be done by the DRDA/Block officials, and bankers
to see that the Swarozgari is properly managing his assets and is able to
generate the projected income. All
efforts should be made to remove any difficulties that the Swarozgari may be
facing. Every Swarozgari should be
given Vikas Patrika. Two copies of
this document should be prepared of which one copy should be given to the
Swarozgari and the other should be kept at the Block Headquarters. Both the copies should be kept
continuously updated regarding the health of the project.
Para 10.3: An annual physical verification of
assets may also be undertaken on a drive basis at the end of every year. The results of such verification should
be incorporated in the Annual Plan for the next year.
Para 10.4: Follow –up and monitoring will also be
done at the different levels and agencies like DRDA, BDO, Panchayats, Bank
Branches etc.
Para 10.5: The performance of the
implementation of SGSY is to be monitored continuously at all levels. At the Block and District levels this is
done through reports and physical verification of the assets. At the Central Government level,
the programme will be continuously monitored on the basis of monthly progress
report. The States will send
district-wise information received from the DRDA to the Centre as
under:
(a)
Monthly Progress Report
Monthly Progress Report should be sent so as to reach the Centre by the
20th of every succeeding month.
The proforma for submission of above monthly progress report will be
communicated to the States.
(b)
Annual Progress Report
The Monthly
Progress Report for the last month of the financial year i.e. March will be
treated as the final Annual Progress Report for that year.
This annual progress report should be sent alognwith an analytical note
on the implementation of the SGSY in the State particularly, on the following
points:
i)
The physical
and financial progress during the year
ii)
The linkages
provided and availed of for various activities
iii)
General
comments on the implementation of the programme including suggestions, if
any.
Qualitative Monitoring of SGSY at
Block/DRDA Level
Para 10.6: For effective implementation of
the programme, physical monitoring through field inspections is important. Officers dealing with SGSY at the State
headquarters shall visit districts regularly and ascertain through field visits
that the programme is being implemented satisfactory and is in accordance with
the prescribed procedures and specifications. Likewise, officers at the district,
sub-division and block levels must closely monitor all aspects of the programme
through visits in the interior areas.
Para 10.7: In order to develop a consistent
system of monitoring the implementation of SGSY at Block/DRDA level through
field visits and physical verification of assets as well as progress of the
Swarozgari towards income generation the following schedule of inspection of
families by the various levels of officers is suggested:
(i)
District Magistrate/Chairman DRDA
10 per month
(ii)
Project Director, DRDA
20 per month
(iii)
Project Officer & Project Economist
40 per month
(iv) SDMs
20 per month
(v) BDOs
20 per month
(vi) ADOs
20 per month
Para 10.8:
District Collector/Chairman DRDA should prescribe suitable number of
field visits for the officers of the line departments and obtain their
inspection reports. On the basis of
these inspection reports the Monitoring Wing at DRDAs will prepare a
consolidated report. These reports
should be discussed in the meetings of the Governing Bodies of DRDAs. Necessary corrective action should be
taken wherever necessary. DRDAs
will also send consolidated report on quarterly basis to States along with
summary of comments on salient observations and follow up action taken on these
issues.
Para 10.9: The State Level SGSY Committee,
should review quarterly the findings emerging out of qualitative monitoring of
the programme as a standing agenda.
Selected Chairmen/Project Directors should be invited to such
meetings.
Evaluation
Studies
10.10: The States/UTs should conduct
periodical evaluation studies on the implementation of the
programme.
Para 10.11: Evaluation studies may be given to the
reputed institutions and organizations, on issues thrown up by the concurrent
evaluation meriting details studies.
These studies may be given by the centre as well as the States/UTs. Copies of the evaluation studies
conducted by the State should be furnished to the Central Government.
Para 10.12: Remedial action shall be taken by
the States/UTs on the basis of the observations made in these evaluation studies
and also in the Concurrent Evaluation conducted by the Government of India.
Special
Projects
Introduction
Para 11.1: Under SGSY, funds are released to the
DRDAs and are utilized as per the decisions taken at the local level. Sometimes, the poverty reduction efforts
requires coordinated action by different departments and it may call for
planning and coordination which may extend beyond the individual districts. There may also be occasions when the
different departments or DRDAs or State governments might want to try out new
initiatives which are in the nature of pioneer projects, capable of triggering
much needed growth impulses. Such
projects, capable of triggering much needed growth impulses. Such projects would be indicators of
possible alternative strategies. In
order to take up such projects, 15% of the funds under SGSY will be set apart by
the Ministry for such initiatives in conjunction with other departments,
semi-government organizations such as, the Khadi & Village Industries
Commission, Development Commissioner, Handicrafts, Commodity Boards, etc., or
international organizations. This
would include initiatives to be taken in the individual districts or across the
districts. If during the course of
the year, such funds cannot be fully utilized, the balance funds will be
distributed among the States alongwith the programme funds whose redistribution
during the year will keep in view the absorption capacity of different
States.
Objective
Para 11.2: The objective of each special
project would be to ensure a time-bound programme for bringing a specific number
of BPL families above the poverty line through self-employment programmes. As per the programme guidelines, every
assisted family must be brought above the poverty line in three years. The projects may involve different
strategies to provide long term sustainable self-employment opportunities either
in terms of organization of the rural poor, provision of support infrastructure,
technology, marketing, training, etc., or a combination of these.
Approval of Special
Projects
Para 11.3: the State Governments or semi-government
organizations at the National level or International Organizations may pose
projects under this component. To
consider the proposals received, there shall be a two-tier committee
system.
a)
Project Screening
Committee
b) Project Approval
Committee
(a)
Project Screening
Committee
The Projects
submitted would be examined and considered by the Screening Committee before
they are submitted to the Approval Committee with its recommendation. The composition of the Projects
Screening Committee would be as under:
Joint Secretary (IRD), D/o Rural
Development
Chairman
Director/Dy. Adviser(RD), Planning
Commission
Chairman
Deputy Secretary (IFD), D/o Rural
Development
Member
Director/Deputy Secretary/Joint
Director dealing Member
Convenor
With the
subject
The Screening Committee would also be responsible for periodical review
and monitoring of the projects sanctioned under the
scheme.
The composition of the Projects Approval Committee would be as
under:
Secretary, M/o Rural
Development
Chairman
AS&FA, M/o Rural
Development
Member
Adviser (RD), Planning
Commission
Member
Joint Secretary (IRD)
Member-Convenor
A project being forwarded to Government of India under special projects
of SGSY should inter-alia include the following details:
(i)
Likely
beneficiaries/families of beneficiaries and year-wise details of long term and
short term benefits (financial & in the nature of assets created and
self-employment) expected to flow to the beneficiaries.
(ii) An analysis of the activities
proposed to be undertaken and the possibility of its replicability
elsewhere.
(iii) The approach
proposed to be adopted for achieving the objective and the activities selected
under the project proposal in relating to the available
resources.
(iv) Details of integration with other
on-going rural development programmes in the area and arrangements for
dovetailing funds from non-SGSY resources.
Period of Implementation of
Project
Para 11.4: The period of implementation should not
normally exceed three years.
Releases under the Special
Projects
Para 11.5: Releases under the projects
shall be made as per schedule of releases approved for each programme. Recurring expenditure such as creation
of posts or vehicles or maintenance expenditure shall not be admissible in the
projects.
Para 11.6: The reports and returns will be
submitted to the Central Government by the implementing agencies as prescribed
generally or for specific projects.
The Ministry of Rural Development
vide its D.O. letter No. V-24015/4/2000-IRD-V dated 3rd May, 2002 has
communicated all the States/UTs regarding the revised guidelines for Special
Projects under Swarnjayanti Gram Swarozgar Yojana (SGSY)
The revised guidelines are
as follows:
(i)
The maximum
investment, inclusive of credit and State share, under each Special Project
should not exceed Rs. 15.00 crores and the minimum project cost shall not be
below Rs. 1.00 crore.
(ii)
Special
Projects should be formulated/posed particularly with focus on backward
districts having high incidence of poverty.
(iii)
Ordinarily one
project shall be approved for one district at a time. In exceptional cases, Project Approval
Committee (PAC) may approve a second project for the district. However under no circumstances there
shall be more than two on-going projects in a district.
(iv)
No project will
be approved for a State unless the State indicates its commitment to provide 25%
of the project cost as its matching share.
(v)
There should be
prior commitment from the banks for funding the projects.
(vi)
Credit
component of projects may be arranged from the banks or other institutions such
as SC/ST/Women Corporation etc.
(vii)
The release of
funds to the Implementing Agency should be normally in three installments in the
ratio of 40:40:20. However, if a
release schedule is indicated in the proposal and approved, funds will be
released according to the schedule
(viii)
Attempt should
be made to cover maximum BPL families under the Project. At least 80% of the beneficiaries under
the Project shall be from BPL families.
The number of BPL families to be covered should be specifically indicated
in the Project Proposal.
(ix)
The district
specific Projects will be formulated by the DRDAs in consultation with the Line
Departments so as to ensure desired linkage with the BPL families and technical
support being provided by the line Department.
(x)
Special Project
Proposals of Line Departments, which may cater to more than one district, shall
also be considered. However, in
such cases, the proposals would have to be routed through the Rural
Development/Panchayati Raj Department, which is in charge of implementation of
the SGSY in the State. This would
ensure convergence of activities and their focus on BPL
families.
A list of points, which may be kept
in mind, while formulating the proposals for special projects under the SGSY, is
at Annexure-I.
MAJOR POINTS WHICH MAY
BE KEPT IN MIND WHILE FORMULATING A SPECIAL PROJECT UNDER
SGSY
1.
Name of
the Project
2.
Conceptual
Background of the Project and features which make it special
for sanction under Special Projects of SGSY and not under normal SGSY. Possibility of replicability of the
project.
3.
Project
Objective
4.
Strategy
5.
Project
Period and Action Plan (year-wise) for implementation of
the Project.
6.
Area of the
Project and Area Profile (how the key activity suitable for
the area and the people).
7.
Key
activities to be taken in the Project
8.
Beneficiaries’
details: in terms
of numbers/categories and their linkage with the activities taken in the
Project.
9.
Implementing
Agency: DRDA or a
body of the SHGs, or if it is a Project which involves more than one DRDA than
the name of the DRDA to whom the funds would be released for
implementation.
10.
Role of
line departments/NGOs/PRIs
11.
Bench Mark
Survey for
indicators on which the Success of
the project would be monitored and evaluated
12.
Integration
with other on-going Rural Development Programmes in the area and arrangements for
dove-tailing funds from non-SGSY resources.
13.
Raw
material supply
14.
Technical
know-how, if
any. What arrangements have been
made for flow of technical know-how like Memorandum of understanding (MoU)
signed etc.
15.
Training
component Existing
skill, training institutes identified, funds arrangements, duration of training
etc.
16.
Marketing
arrangement of the Produce: existing markets, strategy for
expanding the markets in future, details of forward and backward
linkages
17.
Infrastructure
Development:
Infrastructural facility, if to be built, then mention how it is linked with
direct benefit of Swarozgaris. How
the provision for staff, running cost etc. would be met.
18.
Benefits/Impact of the Project:
in terms of
increase in income, year-wise income growth identified parameters
etc.
19.
Risk factors
affecting the
Project objectives of increase in income etc.
20.
Modalities to minimize
risks
21.
Criteria for
monitoring and evaluation of Project: mention various parmeters on which
the project is to be monitored and evaluated. How it will be monitored after the
completion of the Project?
22.
State’s
commitment to match the share of the project
cost
23.
Bank’s
commitment for credit. The amount of Bank Credit should clearly
be indicated vis-à-vis the number of Swarojgaris.
24.
Technical
scrutiny and technical feasibility of the Project (Please indicate
whether the concerned technical department of the State Government has vetted
the Project, if yeas, the comments thereof)
25.
Economic
appraisal of the Project (the Project may be got appraised
and results of the appraisal indicated appropriately in the Proposal) i.e.
viability of the project.
26.
Estimated
cost (Please
indicates the Central and State share and the Credit component, if applicable,
including contribution by the Swarozgaris). The estimated cost should indicate the
total cost and activity-wise/beneficiary-wise costs also.
27.
Repayment
schedule
28.
Whether the
Project or part thereof has been submitted to any other agency? If yes., the results thereof. If the project or its part had been
rejected the reasons.
NNEXURE –
I
State Specific Poverty
Line (1999-2000)
(Rupees Per Capita Per
Month)
|
Sl.
No. |
State |
Rural |
Urban |
|
1 |
Andhra
Pradesh |
262.94 |
457.40 |
|
2 |
Assam |
365.43 |
343.99 |
|
3 |
Bihar |
333.07 |
379.78 |
|
4 |
Gujarat |
318.94 |
474.41 |
|
5 |
Haryana |
362.81 |
420.20 |
|
6 |
Himachal
Pradesh |
367.45 |
420.20 |
|
7 |
Karnataka |
309.59 |
511.44 |
|
8 |
Kerala |
374.79 |
477.06 |
|
9 |
Madhya
Pradesh |
311.34 |
481.65 |
|
10 |
Maharashtra |
318.63 |
539.71 |
|
11 |
Orissa |
323.92 |
473.12 |
|
12 |
Punjab |
362.68 |
388.15 |
|
13 |
Rajasthan |
344.03 |
465.92 |
|
14 |
Tamil
Nadu |
307.64 |
475.60 |
|
15 |
Uttar
Pradesh |
336.88 |
416.29 |
|
16 |
West
Bengal |
350.17 |
409.22 |
|
17 |
Delhi |
362.68 |
505.45 |
|
|
All
India |
327.56 |
454.11 |
The poverty line (implicit) at all-India level is worked out from the expenditure class-wise distribution of persons and the poverty ratio at all-India level. The poverty ratio at all India level is obtained as the weighted average of the state-wise poverty ratio.