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   Swarnajayanti Gram Swarojgar Yojana (SGSY) was introduced from 1-APR-1999. Since its inception DRDC (District rural Development Cell) is now giving more emphasis on Self Help Groups (SHGs) which has been found to be more feasible and acceptable in the rural areas of West Bengal because of its stress in community participation for removing poverty alleviation and social injustices. It is iterated that the Block and Panchayats should give more attention towards the formation of self-help groups and strengthening of the existing groups, i.e., DWCRA groups. It has been experienced that the groups are more susceptible to the elements of finance management then the individual. Further, seeing the huge number of families under operational list (BPL), the individual approach seems untenable vis-à-vis group approach.

Secondly, to uplift at least 600 families under BPL in 3 years ensuring sustainable income generation of Rs. 2000 per month seems to be an uphill task. However, DRDC believes that with the active participation and cooperation of blocks, panchayats, banks, line departments and the people, the same can be achieved with much success.

   The success of SGSY is mainly dependant on the coordinated efforts of all the external agencies acting as facilitators whether Government, Panchayats, Banks. In order to achieve better coordination among them and to stress on the joint approach, important government circulars relevant to SGSY have also been appended in this booklet. We hope that this will benefit all the facilitators in the planned implementation of SGSY.

 also check - Bengali version of SGSY         [ Source : Annual Action plan report of DRDC, Cooch Behar for the financial year 2001-2002 ]

Salient Features of Swarnajayanti Gram Swarozgar Yojana (SGSY)

• SGSY has been designed to cover all aspects of self employment such as organisation of the poor into self-help groups, training, credit, technology, infrastructure and marketing.

• The objective of SGSY is to ensure that the assisted poor families have a monthly income of at least Rs. 2000 so that to bring those families above the poverty line in three years.

• The assisted families may be individuals (swarozgari) or groups (self-help groups). Emphasis will be on the group approach.

• SGSY will particularly focus on the most deprived groups among the rural poor. Accordingly, the SC/STs will account for at least 50% of the Swarozgaris, women for 40% and the disabled for 30%.

• At the Block level, at least half of the groups will be exclusively women groups.

• Group activity will be given preference and progressively majority of the funds will be for self-help groups.

• The Panchayat Samity and the Zilla Parishad/ DRDC in association with the Banks will identify 4-5 key activities based on the resources, occupational skills of the people and availability of markets. The lists of key activities identified in this district are given in next section below.

• Subsidy under SGSY will be uniform at 30% of the project cost subject to the maximum of Rs. 7500. In respect of SC/STs, however, these will be 50% and Rs. 10,000 respectively. For groups of swarozgaris (SHGs), the subsidy would be at 50% of the cost of the scheme subject to a ceiling of Rs. 1.25 lakhs. Credit is the key component and Subsidy is only minor and enabling component of SGSY.

• Self-help group may consist of 10 to 20 persons all from the BPL (now operational list). In the case of minor irrigation and in the case of disabled persons, this number may be a minimum of five (5). 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. This group will function on the basis of particularly decision making process. The BDO and the Banker may visit the SHG as often as they can and explain to the members the opportunities for self-employment and the entire process of graduation based on participatory approach.

• Every SHG that is in existence at least for a period of six months and have qualified as a viable group will receive a revolving fund of Rs. 25,000 from banks as cash credit facility. Banks may charge interest only on the sum exceeding Rs. 10,000, which is given to the bank by the DRDC as subsidy grant but to the group it is a cash credit. Banks will take documents for Rs. 25,000.

• The assistance (loan cum subsidy) may be extended to individuals in a group or to all the members in the group for taking up income generation activities. The size of loan under SGSY depends on the nature of project. Swarozgaris will be given the full amount of loan and subsidy and they will have the freedom to procure the assets themselves. disbursements upto Rs. 10,000 under ISB sector may be made in cash where the number of items are to be purchased. emphasis is laid on multiple dose of assistance.

• Insurance cover is available for assets / livestock bought out of the loan.

• For individual loans upto Rs. 50,000 and group loans upto Rs. 3.00 lakhs, the assets created out of Bank Loan would be hypothecated to the bank as primary security. In cases where movable assets are not created as in land based activities such as dug well, minor irrigation, etc., mortgage of land may be obtained else third party guarantee may be obtained at the discretion of the Bank.

• The scheme provides for the creation of Risk Fund with 1% SGSY fund at District level. Consumption loan not exceeding Rs. 2000 per Swarozgari (other than self-help group members) would be provided by the banks. Seperate application/ documentation would be necessary.

• The important aspect for success of SGSY as self-employment programme rest on the organisation of basic orientation program for the Swarozgaris after the loan is sanctioned and before it is disbursed. This program includes providing knowledge in the elements of book-keeping, market, scheme, bank relation and functioning. Installing confidence among the Swarozgaris by citing success stories, etc. may also be a part of this short duration course. BDOs, Bankers, DRDC and Line Departments can act as resource persons for this training. Besides, for skill development / upgradation suitable training programs have to be organised. For any successful enterprise, appropriate technology suitable to the needs of the specific swarozgari for specific activity has to be identified. Emphasis should be given on linkages with agriculture and livestock, improvement of efficiency linked to more productivity and cost effectiveness.

• The Bankers play a very critical role in the implementation of SGSY program right from the identification of key activities, formation and evolution of 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.

• Proper infrastructure is essential for the success of micro-enterprise. the infrastructure may be either for production processing, quality testing, storage or marketing. Planning for infrastructure will be made in close contact with the banks. It should be noted that the funds available for providing infrastructure support under SGSY are primarily to bridge small gaps in infrstructure which can make the program implementation more effective and not for creation of an altogether non-existent infrastructure in the area. 

• SGSY is a coordinated and concerted efforts of all the concerned agencies, whether Block, Panchayat, Bank, NGO, Line Departments, etc. hence the larger responsibility towards the success of the program.

• The progress of management of the assets of swarozgari for generation of incremental income has to be continuously followed up, monitored and evaluated. An annual physical verification of assets may be undertaken on a drive basis at the end of every year.

• The Block SGSY committee shall monitor, every month, the progress of different Swarozgaris. In particular, it should see whether the schemes have been grounded and whether they are giving the Swarozgaris the intended income and also whether the Swarozgaris are repaying the loan. The bank shall furnish every month the list of defaulters, and the Block SGSY committee shall go into the reasons and take such remedial measures as are necessary. In Panchayats with high defaulters rate, the BDO / Savapati / DRDC shall organise recovery camp. In case of failure to recover dues even after taking recourse to all possible measures, the process of forfeiture of subsidy for adjustment against dues may be taken up after getting approval of the District SGSY Committee. Prompt repayment at the Swarozgari's level will entitle him/her to waiver of the 0.5% of loan amount charged as a processing-cum-monitoring fee.

• BDO should be more particular in noting that the scheduled reports are regularly submitted to the DRDC.

Review of Performance of SGSY

Skill Upgradation
   SGSY aims at establishing a number of microenterprises in the rural areas involving the rural poor on the belief that they have competencies and if rightly supported can be successful producers of valuable goods / services. Based in this concept, the program proposes a number of measures for upgrading the capacity of Swarijgari both in individual as well as group oriented activities.

    Assessment of technical skill may be made by the line departments while that of the managerial skills may be made by the banker in the area of already identified key activities. Such an exercise along with the swarozgaris will 

help in identifying those who have the minimum skill requirement and therefore need only basic orientation and those who need skill training.

    Basic orientation program may be organised at the Block Head Quarters, not far from the place of residence of swarozgari. It may include familiarizing the swarozgaris with SGSY and its objectives, their responsibility, elements of book keeping, knowledge of market, identification and appraisal, familiarity with product costing and product pricing, acquaintance with project financing by banks as well as some basic skills in the key activity identified. It will be of very short duration covering two days only. BDOs, Bankers and Line Departments can act as resource persons for training. No stipend is admissible here; only cost of training, materials, honorarium to resource persons, travel and food expenses can be met by DRDC.

    For the identified activities, swarozgaris who need skill development / up gradation of skills, government institutions 

like engineering colleges, i.e. Polytechnics, Universities and NGOs, may be approached to impart training. The objective is to ensure that the swarozgaris possess the Minimum Skill Requirement for successful completion of the schemes concerned, for that will decide the disbursement of loans. For this training swarozgaris will be entitled for financial assistance as a soft loan from the bank.

    Upto 10% of SGSY funds will be set aside as training fund and will be utilised to provide both orientation and training programs to the swarozgaris.

    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 quality products either in terms of goods / services. The DRDC's function is to strive to gather the existing knowledge and channelise this not 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.

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   From the report on sector wise disbursement of credit by the banks during the last three years (i.e. 1998-'99 to 2000-'01), it was seen that the disbursement of credits in the Agricultural and Services sectors increased but the credit flow in Industries sector deteriorated considerably during the same period under review. This is mainly due to the fact that

the infrastructures needed for the develoment of industries are absent in this district and secondly the markets are also not available.

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Infrastructure Development under SGSY
   During the year 2000-2001, Rs. 92,59,425 lakhs were utilised towards Infrastructure Development under SGSY. The details of the schemes implemented are given as follows :-