Swarnjayanti Gram Swarojgar Yojana

Funding Pattern

Funds under Swarnjayanti Gram Swarojgar Yojana (SGSY) are shared between the Centre and the States in the ratio of 75:25. The ratio of sharing of funds between the Centre and the North Eastern States including Sikkim is 90:10.

Main Features

  • Emphasis on mobilization of rural poor to enable them to organize into Self Help Groups
  • Participatory approach in selection of key activities
  • Project approach for each key activity
  • Emphasis on development of activity clusters to ensure proper forward and backward linkages
  • Strengthening of groups through Revolving Fund Assistance (RFA)
  • Training of beneficiaries in group dynamics and skill development for taking up micro enterprises
  • Provision of credit linked subsidy for enabling beneficiaries to take up income generating activities
  • Marketing support with emphasis on market research, upgradation/diversification of products, packaging, creation of market facilities, etc
  • Provision for development of infrastructure to provide missing critical link. 20% fund (in case of NE State 25%) is earmarked for infrastructure development
  • Active role of NGOs in formation and capacity building of SHGs
  • Focus on vulnerable groups i.e. SC, ST, women, minorities and disabled
  • 15% fund earmarked for Special Projects for piloting innovative schemes for livelihood generation and taking up placement linked skill development projects for providing wage employment to rural BPL in Private Sector.

Need For Restructuring Of SGSY

A systematic review of SGSY has brought into focus certain shortcomings like vast regional variations in mobilization of rural poor; insufficient capacity building of beneficiaries; insufficient investments for building community institutions; and weak linkages with banks leading to low credit mobilization and low repeat financing. Several states have not been able to fully utilize the funds received under SGSY.

Absence of aggregate institutions of the poor, such as the SHG federations, precluded the poor from accessing higher order support services for productivity enhancement, marketing linkage, risk management, etc. Several evaluation studies have shown that SGSY scheme has been relatively successful in alleviating rural poverty wherever systematic mobilization of the poor into SHGs and their capacity building and skill development has been taken up in a process intensive manner. In other places, the impact has not been that significant.

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