Current Rural Development Programmes: Swarnajayanthi Gram Swarojgar Yojana (Sgsy)

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Current Rural Development Programmes

SWARNAJAYANTHI GRAM SWAROJGAR YOJANA (SGSY):


Date of Launching: 01.04.1999
Launched by Restructuring:
_ IRDP ( Integrated Rural Development Programme)
_ TRYSEM ( Training of Rural Youth for Self Employment)
_ DWCRA ( Development of Women and Children in Rural Areas)
_ SITRA ( Supply of Improved Tool Kits to Rural Artisans)
_ GKY ( Ganga Kalyan Yojana )

SGSY AIM:
_ Establishment of large number of micro enterprises in the rural areas

OBJECTIVE:
_ To bring every assisted family above the poverty line over a period of time
SGSY-salient Features
_ The assisted families ( Swarozgaris ) may be individuals or Groups(Self Help
Groups). Emphasis is on Group approach.
_ Holistic programme of micro enterprises covering all aspects of Self
Employment.
_ Emphasis is on cluster approach. Major share of SGSY assistance in activity
clusters.
_ 4-5 key activities will be identified for each block.

SGSY- Salient features


_ SGSY adopt a project approach for each key activity.
_ Promotes multiple credit rather than one time credit.
_ Emphasis on skill development through well designed training course.
_ DRDAs set apart up to 10% of the SGSY allocation on training.
_ SGSY provide for promotion of marketing of the goods.
_ Subsidy will be uniform at 30% of Project cost, subject to maximum of Rs.7500-
_ In respect of SC/ ST subsidy is 50% of project cost subject to a maximum of
Rs.10,000-
_ For groups subsidy is 50% of project cost subject to ceiling of Rs.1.25 lakh.
_ No monitory limit on subsidy for irrigation projects.

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Focus on vulnerable groups
_ SC/ST - 50%
_ Disabled - 3%
_ Minorities - 2%

SGSY-Norms
• SGSY has no investment ceiling other than unit cost worked out for the project.
• Loan amount is equal to the total project cost; including subsidy.
• Credit is the key element
• Subsidy is only a minor & enabling component SGSY-Asset creation
• Swarojgari is having freedom to procure assets.
• Assets to be procured within one month of release of Bank loans.
• Receipt to be furnished to the Bank.
• Assets procured should be of standard quality and at economic prices.
• In case of ISB sector- disbursement up to Rs.10,000- may be made in cash.

SGSY-Multiple Credit
_ Multiple credit rather than one time credit injection.
_ Second/ Subsequent dose can be given even during the currency of First /
earlier loans provided Bank is satisfied with regard to financial discipline.
_ Further loans to inadequately assisted IRDP beneficiaries under IRDP can be
extended under the scheme.

SGSY-Skill up gradation
• Minimum Skill Requirement ( MSR ) in terms of technical and personnel is pre
requisite.
• Technical skill assessment by Line Depts. of Govt.
• Managerial skill assessment by Bank.
• Each Swarojgari selected will be given Basic orientation Programme & Skill
Development Training.

SGSY-Basic Orientation Programme


• This programme includes
-Elements of Book keeping
-Knowledge of market
-Identification & Appraisal
-acquaintance with product pricing & costing
-Familarisation with project financing by banks.

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-Basic skills in activity identified.

• Training expenditure borne by DRDA.


• Programme conducted at Block Head quarters.

SGSY-Skill Development Training


• Training needs to be identified.
• Engineering colleges, ITIs, Polytechnics, Universities, NGOs, & Banks’ Rural
Development Institutes.
• Govt.of A.P to arrange training to the beneficiaries in Sri Ramayana Thirtha rural
Institute
• Swarozgaris entitled for financial assistance, if they undergo training for more
than a week.
• Bank will give this money to Swarozgaris as soft lo an Capacity building in A.P
• Facilitates, formation and strengthening of Self Help Groups
• Total SHGs - 6.95 lakhs
• Total members - 87.67 lakh rural poor
• Village organisations - 31403
• Mandal Samakhyas - 946
• Zilla Samakhyas – 22

SGSY-Criteria for allocation of funds to States.

• Centrally Sponsored Programme.Ratio of sharing expenditure is 75:25.


• GOI directly release funds to DRDAs.
• Allocation of funds
– Income generating activities - 60%
– Infrastructure - 20%
– Revolving fund - 10%
– Training - 10%

Jawahar Gram Smridhi Yojana (JGSY), 1st April, 1999.:

The Jawahar Gram Smridhi Yojana, named after India's first Prime Minister
Jawaharlal Nehru aimed at creating a need-based rural infrastructure.

The critical importance of rural infrastructure in the development of village


economy is well known. A number of steps have been initiated by the Central as well

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as the State Governments for building the rural infrastructure. The public works
programme have also contributed significantly in this direction.

Objective:

Jawahar Gram Samridhi Yojna (JGSY) is the restructured, streamlined and


comprehensive version of the erstwhile Jawahar Rozagar Yojana. Designed to
improve the quality of life of the poor, JGSY has been launched on 1st April, 1999.
The primary objective of the JGSY is the creation of demand driven community
village infrastructure including durable assets at the village level and assets to
enable the rural poor to increase the opportunities for sustained employment. The
secondary objective is the generation of supplementary employment for the
unemployed poor in the rural areas. The wage employment under the programme
shall be given to Below Poverty Line(BPL) families.

Scope:

JGSY is implemented entirely at the village Panchayat level. Village Panchayat is


the sole authority for preparation of the Annual Plan and its implementation.

Funding:

The programme will be implemented as Centrally Sponsored Scheme on cost sharing


basis between the Centre and the State in the ratio of 75:25 respectively.

Strategy:

The programme is to be implemented by the Village Panchayats with the approval


of Gram sabha. No other administrative or technical approval will be required. For
works/schemes costing more than 50,000/-, after taking the approval of the Gram
Sabah, the Village Panchayat shall seek the technical/administrative approval of
appropriate authorities. Panchayats may spend upto 15% of allocation on
maintenance of assets created under the programme within its geographical
boundary. 22.5% of JGSY funds have been enmarked for individual beneficiary
schemes for SC/STs. 3% of annual allocation would be utilised for creation of
barrier free infrastructure for the disabled. The funds to the Village Panchayats
will be allocated on the basis of the population. The upper ceiling of 10,000
population has been removed.

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How to Seek Assistance:

Village Pradhan, Panchayat members, Block Development Officer, District Collector


or District Rural Development Agency may be contacted.

Role of DRDA & NGOs in Rural Development:

District Rural Development Agency (DRDA) Role:

It has traditionally been the principal organ at the District level to oversee the
implementation of the anti-poverty programmes of the Ministry of Rural
Development. Created originally for implementation of Integrated Rural
Development Programme (IRDP), the DRDAs were subsequently entrusted with a
number of programmes, both of the Central and State Governments. Since
inception, the administrative costs of the DRDA (District Rural Development
Agency) were met by setting aside a part of the allocations for each programme.
Of late, the number of programmes had increased and several programmes have
been restructured with a view to making them more effective. While an indicative
staffing structure was provided to the DRDAs, experience showed that there was
no uniformity in the staffing structure. It is in this context that a new centrally
sponsored scheme - DRDA Administration - has been introduced from 1st April,
1999 based on the recommendations of an inter-ministerial committee known as
Shankar Committee. The new scheme replaces the earlier practice of allocating
percentage of programme funds to the administrative costs.

Objective:

The objective of the scheme of DRDA (District Rural Development Agency)


Administration is to strengthen the DRDAs and to make them more professional
and effective. Under the scheme, DRDA is visualised as specialised agency capable
of managing anti-poverty programmes of the Ministry on the one hand and
effectively relate these to the overall efforts of poverty eradication in the
district on the other.

Funding:

The funding pattern of the programme will be in the ratio of 75:25 between the
Centre and the States.

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Strategy:

The DRDA will continue to watch over and ensure effective utilisation of the funds
intended for anti-poverty programmes. It will need to develop distinctive
capabilities for poverty eradication. It will perform tasks which are different from
Panchayati Raj Institutions and line departments. The DRDAs would deal only with
the anti-poverty programmes of the Ministry of Rural Development. If DRDAs are
to be entrusted with programmes of other Ministries or those of the State
Governments, it must be ensured that these have a definite anti-poverty focus. In
respect of such States where DRDA does not have a separate identity and
separate accounts.

NGOs Role:

India is a land of villages and the Government of India has been implementing
numerous rural development programmes for the upliftment of rural Communities.

 Non- government organizations with their advantage of non -rigid, locality


specific, felt need-based, beneficiary oriented and committed nature of
service have established multitude of roles which can effect rural
development.

 A number of NGOs have been playing a vital role in rural community


development, besides government interventions.

 Realizing that the government alone was not able to meet the challenges of
the massive enormous tasks in the process of rural development, the non
-profit, voluntary and non - governmental or ganizations had to be involved
in different phases and activities at the global, regional and local levels.

 Thus, in later phases, both the GOs and NGOs have been actively involved in
transforming the lives of the rural poor.

 No doubt, NGOs have been constantly working day -in and day - out to solve
various problems concerning children, women, senior citizens, environment
etc.

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 The NGO sector effectively works towards uplifting the socio -economic
status of the poor. However, for a significant impact in the present era of
liberalisation and globalisation wherein market forces adopt a key role, it
becomes essential for the NGO sector to take a lead in helping poor fight
the challenges posed by the system.

 NGOs can help the poor by providing access to the system, information on
market opportunities, training facilities, information on sources of credit,
etc. in order to meet the aspirations of rural poor, a unique set of training
programmes are expected to extend for the officials of for better
management of the organization and developmental initiatives.

 Non-Government Organizations (NGOs) are playing a very critical role in the


process of managing development initiatives of various kinds at the rural
level.

 Even the Government of India has recognized the critical role of the NGOs
in the Five -Year Plans, as they have commitment, credibility with the
masses and professional approach to the people's issues unlike the
charitable organizations of earlier days.

 However, despite their good intentions, a large number of NGOs find it


difficult to sustain in the long run i.e. sustainability of organizations as well
as sustainability of projects.

An assessment of the Role of NGO’s in Rural Development:


The NGOs have taking active participation in rural development. The rural poor and
socially depressed classes are mainly depending upon the operations of NGOs. No
particular job is particularly meant for the NGOs. Thus, there is a huge
competition among the NGOs to extend the service s for the benefit of the poor.
At the same time we should not forget the mushrooming of the NGOs for their
welfare. The following are the important activities should take up for the
development of the poor.

1. Agricultural related programs:


Numerous activities can be undertaken under agriculture sector. The jobs/projects
like distributing planting materials, cattle, poultry, minor irrigation, free medical
care for cattle’s, safe drinking water for animals etc.

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2. Health programmes for human and non-human beings:
The works like pit drainage, housing, creation of smokeless environment, good
drinking water for animals and human beings, regular health checkup camps etc. will
improve the health conditions of the human and non human beings.

3. Community development programs:


The community development programs like adoption of villages for development,
moral support during flood and famine period, supply of food and drinking water
during flood, common well, training programs for the rural youths, housing projects,
repair and renovation of houses etc will satisfy the basic necessities. The
important program like training programs for the rural poor will hold the youths
from rural exodus. Even this type of training programs may also be extended for
the rural women, so that we can expect self sustenance among this community.

4. Human Resource Development programs:


The personality development programs, skill development programs, educational
programs, integrated development projects etc will enable the rural poor to earn
bread and butter.

5. Trade and industrial promotion:


The important problem in the present context is availability of the market for the
products of rural enterprises. Therefore, an NGO has a direct link with the
government for marketing of the goods.

Apart from this, NGO can also go for training the rural youths in fabrication
works, wood works, beedi rolling, agarbathi manufacturing, printing press etc.

6. Government support:
The government (central, state or local) support at all level is inevitable for rural
development. NGOs alone cannot do miracles over night. Therefore, the
government should watch and ward the working of NGOs at phase wise manner.
Thus, the fund or whatever may be directly should move to beneficiaries. The
NGOs should accountable for the funds.

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